Five-Year Capital Budget for Fiscal Year 2022, Study notes of Financial Management

Download Five-Year Capital Budget for Fiscal Year 2022 and more Study notes Financial Management in PDF only on Docsity! i Fiscal Year 2022 FIVE-YEAR CAPITAL BUDGET ATTACHMENTB-7.1/206-21 6/10/21 Page 1 of 49 2 Five-Year Capital Budget TABLE OF CONTENTS OVERVIEW .......................................................................................... 3 Executive Summary ............................................................................................................................ 3 BACKGROUND .................................................................................... 4 Long-Term Capital Plan ...................................................................................................................... 4 Capital Budgeting Process ................................................................................................................. 5 Capital Funding Guidelines ................................................................................................................ 6 Simplified Capital Project Process Diagram ..................................................................................... 9 FIVE-YEAR CAPITAL BUDGET ........................................................... 10 Active Capital ..................................................................................................................................... 11 Proposed New Investments ............................................................................................................ 12 Alignment to Long-Term Capital plan ............................................................................................. 14 PROJECT SUMMARIES ...................................................................... 16 Active Projects ................................................................................................................................... 16 Proposed New Investments ............................................................................................................ 33 GLOSSARY ........................................................................................ 48       B-7.1/206-21 6/10/21 5 Background 3. Seek to reduce the total square footage growth rate to approximately 0.5% per year assuming relatively flat growth in our student body population, in order to lower the annual SF growth rate we’ve experienced over the last decade. This will require a sufficient level of effort to re-imagine how we can accommodate future program growth through creative, aggressive space utilization and reprioritization. 4. Leverage partnerships. The UW will need to engage partners to pursue strategic objectives, including leveraging the value of property holdings, academic and research strengths, and dedicated cash flow streams. These strategies have been mapped to the projected capital fund sources to ensure that year by year funding decisions are in alignment with these guidelines. Based on this exercise the following goals have been established: 1. Building account funds should be 100% appropriated for renewal projects. 2. We will seek to leverage almost all of state capital funding to be appropriated for renovation/replacement projects. 3. We will seek to direct approximately half of all gift funding for capital projects to be directed toward renovation/ replacement projects. 4. Debt funding for clinical projects should be based on the enterprise’s overall financial strength and strategy rather than a project by project return. CAPITAL BUDGETING PROCESS While the Long-Term Capital Plan focuses on broad demand drivers and fund sources, the Five-Year Capital Budget translates these broad principles into a set of specific individual capital investments that will build the future of the University. Here is how this is carried out: STEP 1: IDENTIFICATION OF POTENTIAL INVESTMENTS The capital budget process begins with the visions of the schools and colleges that drive the success of the University. UW Facilities account managers work closely with the leadership of these units to identify priorities and look for opportunities where facility conditions can be improved and fund sources leveraged to achieve programmatic goals. Projects are created with specific objectives, budgets and funding strategies and then feasibility tested with Advancement, Treasury, Government Relations, and Planning & Budgeting. Each project is scored based on a multi-criteria scoring process that allows projects to be ranked while making adjustments as external conditions change. This year, 39 institutional projects were scored and ranked as part of the development of the Five-Year Capital Budget. The process for identifying clinical investments is similar and is based on UW Medicine’s Long Range Financial Plan and Strategic Refresh, which are reviewed regularly by the UW Medicine Advisory Board. As specific investments are identified, they are scoped and scored using a similar multi-criteria scoring system, except the criteria have been fine-tuned to match the needs of the clinical enterprise. To be considered for the Five-Year Capital Budget, all projects must meet firm criteria to ensure they can realistically move forward within the next five years. They must have well-established project goals, a defined project scope, a target budget based on selected benchmarks, a feasible funding plan and an identified source for ongoing operating and maintenance costs. B-7.1/206-21 6/10/21 6 Background STEP 2. TESTING & REFINEMENT After individual projects are scored and ranked, the University’s overall priorities and capacities are considered to construct a comprehensive and integrated capital budget. The total capacity of each fund source is assessed and directed to the highest-ranking projects based on funding opportunities. Funding assumptions are fine-tuned to maximize the overall impact of the plan and align it with total capacity. This is an iterative process and includes reviews by the UW senior administration (President and Provost), deans and the Faculty Senate. STEP 3. APPROVAL OF THE CAPITAL BUDGET The UW Board of Regents reviews the Five-Year Capital Budget in conjunction with their annual review of the University’s Annual Operating Budget. Their response along with continued feedback from the UW senior administration and the UW Board of Deans and Chancellors, alongside a financial assessment of the University’s capacity, shape the final Five-Year Capital Budget presented for approval to the Board of Regents in June. STEP 4. APPROVAL OF INDIVIDUAL PROJECTS After each project is fully formed and funding commitments established, each project over $15M is separately approved by the Board before selecting the project team. This approval includes commitments of debt from either the Internal Lending Program or the Bridge Program. Projects in the $5 million to $15 million range are executed under delegated authority and reported to the Board as actions taken and as part of the monthly Capital Project Report. Small projects utilizing debt (primarily clinical) are batched into two-year windows that are reviewed and approved by the Regents every year in conjunction with their review of the UW Medicine Long Range Financial Plan. This process allows the Regents to respond to changing priorities and external constraints. CAPITAL FUNDING GUIDELINES  Continuous investment is required to ensure the proper stewardship of the University’s buildings, grounds and infrastructure. Our campuses are constantly evolving, and the UW recognizes that additions and modifications to the campus can strain resources if they are not planned, prioritized and funded appropriately. The following guidelines connect funding commitments to capital project approval: APPROVAL OF CAPITAL PROJECTS Capital projects are approved by the Board of Regents as part of a comprehensive Five-Year Capital Budget and again individually prior to beginning design for projects over $15M. Before projects are presented for approval, they must follow the process outlined in the Simplified Capital Project Process Diagram on page 8 and meet each milestone. B-7.1/206-21 6/10/21 7 Background CAPITAL FUNDING COMMITMENTS The full range of possible fund sources is explored and evaluated for each capital project. For projects with state funding, for example, the goal is to leverage state dollars by supporting 33% of the project budget from local funds or donor funds. Similarly, projects should have no more than 80% in debt funding. This requirement reduces loan default risk and assures that limited debt capacity can be made available to the broadest range of projects. The proposed funding mix for each project is outlined in its business plan and approved by the Regents as part of the overall approval of the Five-Year Capital Budget. Prior to final approval of any project, all funds must be committed and a cash flow plan developed and validated, detailing that sufficient receipt of funds leads anticipated expenditures by at least three months through the life of the project. Failure to meet this cash flow standard may result in a work stoppage.  For state appropriations, design funding must be in hand and the future construction funding must be included in the legislative approval.  For loans from the Internal Lending Program, a financial due diligence must be completed by the Treasury Office.  For donor funding, fully executed pledges must be in place and 10% of the gifts received.  For local funds, a separately identifiable budget must be established with the fully committed amount deposited. PROJECTS REQUIRING PRIVATE GIFTS For donor-funded projects, the University follows a lead-gift-first strategy consistent with best practices. Namely, one-half of the private gift portion of the project should come from one to three donors via written pledges. Lead gift commitments (along with other sources of project revenue) should be secured before broad-based fundraising begins in order to ensure confidence and thereby success. Advancement may require an independent analysis of the fundraising potential (i.e., the gift table) using standard industry benchmarks. If required, Advancement will split the cost of the analysis with the unit. For all other projects, Advancement will partner with the unit on an analysis of the fundraising potential before broad-based fundraising begins. PLEDGE REQUIREMENTS To manage the timing of gifts for capital projects, pledges should ideally convert to cash within four years of the pledge date. If necessary, pledges paid over a maximum of five years are acceptable. Exceptions require approval of both the Vice President of Development and the Vice President of UW Facilities. In order to match cash flow with gift flow during the construction project, a bridge loan established by the Treasury Office may be available to manage project funding/gift realization timing differences for up to 25% of the total pledges (gift realization must align with Bridge Policy guidelines to qualify). The use of any bridge funding must be evaluated by the Treasury Office and approved by the Board of Regents. All pledge agreements for capital projects shall additionally include the signature of the Vice President of UW Facilities. B-7.1/206-21 6/10/21 10 Five-Year Capital Budget FIVE-YEAR CAPITAL BUDGET PROJECT TYPES The following summary of the preliminary Five-Year Capital Budget shows individual investments along the left side and fund sources across the top. The projects are divided into the following groups: ACTIVE CAPITAL These projects have already been approved by the Board of Regents and are underway. They are listed in order of the project scores established during the planning process through the multi-criteria analysis mentioned on pages 5 and 6. The scores are an indication of relative priority (higher scores are better). All of these projects will continue to draw on the University’s capital resources over the next five years, and they account for roughly 60% of the total Five-Year Capital Budget. The risks associated with each project and its fund sources are included in the Project Summaries section beginning on page 15. PROPOSED NEW INVESTMENTS CORE CAPITAL: These groupings of small projects are funded by recurring capital sources, primarily the UW Building Account. Asset Preservation projects are small projects generally performed by internal staff at campus. Seismic Improvements continue the phased approach to addressing unreinforced masonry on the Seattle campus. Program Renewal is funded by Central Equity and focuses primarily on academic space and classrooms. INSTITUTIONAL CAPITAL: These are new projects that scored well and have been identified as high priority projects with viable fund sources. However, they have not yet been specifically approved by the Board of Regents. Note that there are no new University-funded buildings in this category, evidence of our shift toward dedicating more of our capital to renovations. CLINICAL CAPITAL: Most of the line items in this section are groupings of small projects. Facilities has identified these projects by location and investment type: construction, strategic expansion, equipment and IT. Based on the Long-Term Capital Plan, debt funding is planned for roughly 50% of these projects. The Regents will be asked to separately approve projects over $15 million and annual batches of small projects utilizing debt. B-7.1/206-21 6/10/21 11 Five-Year Capital Budget ACTIVE CAPITAL All budget and funding numbers are in $ millions. Score Project Name Demand Area Budget FY 2022-2026 Spend Funding before FY22 Funding after FY26 State Bond Bldg Acct Debt Gift Central Equity Unit Equity Other Total - Destination One (Clinical Transformation) Clinical 171.5 - - 14.2 - - - 4.7 18.9 152.6 - - Finance Transformation* Strategic 323.8 - - 170.0 - - - 43.3 213.3 110.5 - 93.5 UW Medicine - Behavioral Health Teaching Facility Clinical 234.0 192.4 - - - - - - 192.4 41.6 - 90 Interdisciplinary Engineering Building Growth 75.1 45.2 4.0 10.0 2.9 - 12.2 - 74.3 0.8 - 81.5 W27 - Center for Advanced Materials and Clean Energy Technologies Growth 309.0 18.5 - - - - - 280.01 298.5 10.5 - 80 Health Sciences Education Building (New Building) Growth 100.6 23.1 2.0 30.0 - - - - 55.1 45.5 - 72.5 UW Bothell - Academic STEM Building Growth 79.4 66.3 - - - - - - 66.3 13.1 - 72.5 UW Bothell - Student Housing Growth 163.0 - - - - - - 162.91 162.9 0.1 - 67.5 UW Tacoma - Milgard Hall Growth 50.5 36.0 0.7 - 10.0 - - - 46.7 3.8 - 60.5 Haring Center Renovation Renewal 34.0 - - - 32.0 2.0 - - 34.0 - - 59.5 Foster School of Business - Founders Hall Renewal 75.1 - - - 37.1 - - - 37.1 38.0 - 56.5 University District Station Development Strategic 205.6 - - - - - - 205.51 205.5 0.1 - 49 ICA Basketball Ops Facility and Health & High Performance Center* Growth 50.0 - - - 49.9 - - - 49.9 0.1 - 48 UW School of Medicine - Spokane Building Lease Strategic 30.0 - - - - - - 10.0 10.0 - 20.0 45.5 UW Bothell - Husky Hall Property Acquisition Strategic 9.5 - - 9.5 - - - - 9.5 - - 34.5 Intramural Activities Building (IMA) Locker Rooms and Pool Replacement Renewal 28.0 - - 5.5 - - 21.8 - 27.3 0.7 - 27.5 UW Medicine - NWH Child Birth Center Clinical 30.6 - - 2.4 - - 5.1 0.5 8.0 22.6 - Subtotal 1,969.7 381.5 6.7 241.6 131.9 2.0 39.1 706.9 1,509.7 440.0 20.0 *These projects will require future Board of Regents action to modify the project scopes and budgets. 1Indicates that the project will utilize a Public/Private Partnership (P3) model for delivery. B-7.1/206-21 6/10/21 12 Five-Year Capital Budget PROPOSED NEW INVESTMENTS All budget and funding numbers are in $ millions CORE CAPITAL Project Name Demand Area Budget FY 2022-2026 Funding Funding before FY22 Funding after FY26 State Bond Bldg Acct Debt Gift Central Equity Unit Equity Other Total Seismic Improvements (10-Year Plan) Renewal 75 - 34 - - - - - 34 33 8 Asset Preservation (Minor Works) Renewal 186 - 115 - - - - - 115 43 28 Programmatic Renewal (Classroom Modernization) Renewal 49 - - - - 35 - - 35 7 7 Power Plant Repairs Renewal 27 - 10 - - 17 - - 27 - - Subtotal 337 - 159 - - 52 - - 211 83 43 INSTITUTIONAL CAPITAL Score Project Name Demand Area Budget FY 2022-2026 Funding Funding before FY22 Funding after FY26 State Bond Bldg Acct Debt Gift Central Equity Unit Equity Other Total 119.5 Renovation/Replacement Magnuson Health Sciences Center - Phase 2 Renewal 64 63 - - - - - - 63 1 - 119.5 Renovation/Replacement Magnuson Health Sciences Center - Phase 3 Renewal 95 60 - - - - - - 60 - 35 93 Anderson Hall Renovation for College of Environment Renewal 30 21 - - - - 9 - 30 - - 66 College of Arts & Sciences (A&S) Building Renovations Renewal 15 - - - 7 4 4 - 15 - - 47.5 UW Library Storage Renovation / iSchool Relocation Renewal 8 - - 1 - 6 1 - 8 - - 44.5 ASUW Shell House Restoration Renewal 13 - - - 13 - - - 13 - - 10.5 College of Education - Early Childhood Learning Center, Mt. Baker Growth 56 - - - 56 - - - 56 - - Subtotal 281 144 - 1 76 10 14 - 245 1 35 B-7.1/206-21 6/10/21 15 Five-Year Capital Budget FIVE-YEAR CAPITAL BUDGET TO LONG-TERM USE OF SOURCES This chart shows the capital spending by fund source. A heavy reliance on debt in FY13 and FY14 is notable, along with a sharp drop in FY15 as the University began to actively manage overall debt capacity. This drop was accompanied by an increase in equity spending as reserves were utilized. Equity spending in the future is projected to remain lower, but fairly steady. Future debt capacity and gift funding is expected to increase slowly as the financial health of the institution continues to improve. Again, the Behavioral Health Teaching Facility has been shown separately because it is seen as incremental funding from the state. Note: This chart does not include projects funded through partnerships. B-7.1/206-21 6/10/21 16 Project Summaries PROJECT SUMMARIES ACTIVE PROJECTS PROJECT SUMMARY Demand Area: Clinical Type: Active Destination One (Clinical Transformation) REGENTS ACTIONS: July 2018  Approved project budget of $159.5 million and use of ILP to fund up to $129 million February 2021  Approval of a $12 million increase to the project budget and updated Go-Live date OBJECTIVES:  Improve workflows and reduce costs.  Reduce the number of systems used across the Consolidated Clinical Enterprise of UW Medicine and standardized work across the continuum of patient care.  Move to a single enterprise-wide electronic health record (EHR) solution. DESCRIPTION: UW Medicine is embarking on a project to improve workflows and reduce cost through the transformation of the foundational clinical systems throughout the enterprise. Currently, UW Medicine clinicians document clinical care across a mosaic of systems. There are numerous medical record systems which must be accessed every time care is provided to a patient. The Clinical Transformation (CT) project will reduce the number of systems and create workflows and efficiencies that will simplify and standardize work across the care continuum for years to come. CT includes the expansion to an enterprise-wide single electronic health record (EHR) solution. It will enable the larger transformation by serving as a catalyst for change as defined in the UW Medicine FIT Plan. FINANCIALS: Proposed Project Budget Proposed Funding Internal Labor $65,100,000 37.9% UWM ILP Borrowings $128,400,000 74.9% External Labor $53,100,000 30.9% UWMC Equity $22,400,000 13.1% HER Software Licenses $13,300,000 7.8% HMC Equity $14,450,000 8.4% Vendor Services $19,300,000 11.3% SCCA Equity $6,250,000 3.6% Other Costs $20,700,000 12.1% Total Funding $171,500,000 100% Total Project Budget $171,500,000 100% SCHEDULE: 2018 2019 2020 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 DESIGN & BUILD TEST & SITE PREP GO LIVE STABILIZE GO LIVE 2 B-7.1/206-21 6/10/21 17 Project Summaries PROJECT SUMMARY Demand Area: Strategic Type: Active Finance Transformation REGENTS ACTIONS: July 2019 December 2019  Stage 1 Approval to begin design  Stage 2 Approval project budget of $269.3 million, debt financing of up to $180 million, the use of $50 million from Internal Lending Program reserves, and delegated authority to execute contracts OBJECTIVES:  Modernize financial and procurement systems by implementing Workday financial and supply chain modules. DESCRIPTION: UW has been on a path to update its legacy financial and procurement systems for over a decade. With the Workday HCM rollout in 2017, the UW replaced its legacy mainframe payroll and benefits system with a software as a service solution. The UW Finance Transformation (UWFT) program was initiated in 2015 and in 2018 agreed to a big bang implementation of Workday financial and supply chain modules that included both the UW Academy and UW Medicine. UWFT will implement Workday financial and procurement/supply chain functionality, including accounting, banking and settlement, supplier accounts/contracts, customer accounts/contracts, business assets, endowment accounting, procurement, inventory, travel, expense management, revenue management, gifts, post-award grant management, effort reporting and budget and planning. The program will also remediate the necessary elements of Workday Human Capital Management in order to preserve all existing HRP functionality within the new configuration. The Program entered an Architect Validation Phase from September 2020-April 2022 to confirm and update the approved program scope, schedule and budget. At the end of the phase, the program team will make a recommendation to the program Sponsors regarding any changes to scope, schedule or budget. The current staff work indicates the likely scenario will be a recommendation by staff to the Sponsors for a year extension in the program “go live”. Accordingly, the costs included in the capital plan include initial estimates additional costs for a year schedule delay. However, such an extension has not been approved by the program Sponsors and any material change in current budget/schedule would be taken to the Regents for review and approval. FINANCIALS: March 2021 Estimated Project Budget* Proposed Funding Readiness & Design $24,000,000 7.4% External Debt $190,000,000 58.6% Implementation Labor $232,000,000 71.6% Equity $134,000,000 41.4% Workday Subscription $26,300,000 8.1% Total Funding $324,000,000 100% Other Costs $14,500,000 4.5% Contingency $27,200,000 8.4% Total Project Budget $324,000,000 100% *Updated budget estimate anticipated in April 2022. Updated budget estimates from units, which have not yet been centrally reviewed or approved, range as high as $375 million total program costs. SCHEDULE: Design: July 2019-December 2019 Financial Management: July 2022 Adaptive Insights for Planning: November 2022 Stabilization: November 2023 B-7.1/206-21 6/10/21 20 Project Summaries PROJECT SUMMARY Demand Area: Growth Type: Active W27 – Center for Advanced Materials and Clean Energy Technologies REGENTS ACTIONS: December 2019  Site Selection, Solicitation of Developer Proposals Fall 2020  Ground Lease Approval OBJECTIVES:  Foster collaborative research that accelerates solutions for a healthy planet.  Increase STEM degrees and provide students with innovative STEM learning environments.  Convene the clean tech community and incubate successful start-up companies.  Accommodate FTE growth and relieve some critical campus classroom needs. DESCRIPTION: The building will be approximately 340,000 GSF and will house UW clean energy researchers and other public and private sector tenants with compatible research and technologies. Using a P3 procurement method, a developer will design, finance, construct, operate and maintain a development that provides well- integrated core uses aligned with UW goals including classrooms as well as spaces for dining, meeting and informal gathering consistent with the 2019 Campus Master Plan. The development of W27 will also require the design/construction of the “Belvedere” and upgrading the Burke-Gilman trail from Brooklyn Avenue to 15th Avenue. FINANCIALS: This project will utilize a funding model in which the developer assumes the financial and development risk. The developer will lease the land from the University for a specified period of time during which the University will pay rent to the developer for the space that the UW leases in the building. In turn, the developer commits to paying the UW an annual ground lease based on current land and building values. This ground lease represents a new revenue stream for the University and can be used to subsidize rent paid by UW. Tenant improvements for UW spaces will be the responsibility of the UW entities in the building. The developer is responsible for the on-going maintenance of the building, limiting the University’s exposure to deferred maintenance. There will be opportunities for philanthropic participation, such as a lobby that reflects the role and history of the Pacific Northwest in the global evolution of renewable and sustainable energy. Similarly, each lab space could be named for donors. The state has committed $20 million this biennium to catalyze the development. These funds will be used for tenant improvements and equipment for the Clean Energy Institute, one of the building’s anchor tenants. Proposed Project Budget Proposed Funding Total Project Costs $309,000,000 100% State Bldg/Const. Account $28,988,000 9.4% Developer Funding $280,012,000 90.6% Total Funding $309,000,000 100% BENCHMARKS: Kansas University Medical Research Bldg $885 Project Cost/GSF Univ. of Michigan Bio Science Research Bldg $809 Project Cost/GSF Coppin State University Life Sciences Bldg $844 Project Cost/GSF UW Life Sciences Bldg $827 Project Cost/GSF UW Molecular Engineering Bldg $904 Project Cost/GSF UW West Campus Site 27 $848 Project Cost/GSF SCHEDULE: 2020 2021 2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 << PLANNING TEAM DEVELOPMENT DESIGN/PERMITTING CONSTRUCTION MOVE B-7.1/206-21 6/10/21 21 Project Summaries PROJECT SUMMARY Demand Area: Growth Type: Active Health Sciences Education Building (New Building) REGENTS ACTIONS: December 2019  Approved full project budget and funding plan, approved ILP loan OBJECTIVES:  Create a hub for Health Sciences students to foster interaction, collaboration and creativity.  Build a centrally located Health Sciences Education Building utilizing the unique adjacencies of research, academic and clinical programs to train future health professionals.  Steer financial feasibility and direct the implementation to position the Health Sciences campus to achieve its future vision for redevelopment.  Maintain and surpass the performance of UW’s Health Sciences schools by attracting and retaining the best health and health care professionals to serve Washington State.  Support and implement the Campus Master Plan. DESCRIPTION: The Health Sciences Education Building will create flexible spaces, modern technologies and a broad array of environments that adapt to changing pedagogical needs and enable active and team-based learning. FINANCIALS: Proposed Project Budget Proposed Funding Construction Cost $80,900,233 80.4% State Bldg/Const. Account $70,623,000 70.2% Consultant Services $11,347,188 11.3% ILP Debt Funds $30,000,000 29.8% Equipment and Furniture $2,697,450 2.7% Total Funding $100,623,000 100% Other Costs $2,737,317 2.7% Project Management $2,940,812 2.9% Total Project Costs $100,623,000 100% BENCHMARKS: Digital Classroom Building, Washington State $838 Project Cost/GSF Austin Hall, College of Business, Oregon State $772 Project Cost/GSF Student and Teaching Services Bldg., U of Minn. $785 Project Cost/GSF UW Population Health $849 Project Cost/GSF UW CS Engineering II $875 Project Cost/GSF METRICS & INDICATORS: Current Targets Current Targets Net Assignable GSF 53,000 73,000 Construction Cost/GSF $843 $645 Gross SF 96,000 110,000 Project Cost/GSF $1,048 $824 Efficiency (NASF/GSF) 55% 66% Operating Cost/GSF $20.30 $14.40 SCHEDULE: 2018 2019 2020 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 PLANNING PRELIM DESIGN DESIGN/PRECONSTRUCTION CONSTRUCTION MOVE IN B-7.1/206-21 6/10/21 22 Project Summaries PROJECT SUMMARY Demand Area: Growth Type: Active UW Bothell - Academic STEM Building REGENTS ACTIONS: March 2019 October 2020  Approved Project Site  Approved Pre-construction budget of $6M  Delegated Authority to Award Design Build Contract  Approved Full Project Budget and Funding Plan OBJECTIVES:  Maximize space for instruction and research in a manner consistent with program goals and institutional standards and values.  Create learning environments that support collaboration, active learning, and faculty innovation while building community across students and faculty.  Design a physical environment that promotes interactions between UWB and CC faculty, staff, and students.  Display the campus’ commitment to environmental and economic sustainability, including seeking to minimize building life-cycle cost and carbon footprint.  Redistribute STEM facilities across the campus as appropriate to improve operational efficacy, student access and relationships. DESCRIPTION: The project will build a new, approximately 75,000-80,000 GSF, STEM academic facility providing classrooms, class labs, collaborative faculty offices and student collaboration space, in order to accommodate the fast-growing number of students in the UW Bothell School of Science, Technology, Engineering and Mathematics (STEM) and STEM students at Cascadia College. FINANCIALS: Proposed Project Budget Proposed Funding Construction Cost $66,326,252 83.5% State Funds* $79,438,000 100% Consultant Services $6,591,447 8.3% Total Funding $79,438,000 100% Equipment and Furniture $1,375,000 1.7% Other Costs $3,054,416 3.9% Project Management $2,090,885 2.6% Total Project Costs $79,438,000 100% *All project costs and funding totals represent the combined requests submitted by the University of Washington and Cascadia College. BENCHMARKS: Grays Harbor College STEM Building $1,106 Project Cost/GSF Shoreline Community College STEM Building $963 Project Cost/GSF Olympic College Instruction Center $927 Project Cost/GSF WSU Everett STEM Building $825 Project Cost/GSF METRICS & INDICATORS: Current Targets Current Targets Net Assignable GSF 47,500 64,500 Construction Cost/GSF $873 $675 Gross SF 76,000 100,000 Project Cost/GSF $1,045 $796 Efficiency (NASF/GSF) 63% 65% Operating Cost/GSF $13.20 $13.20 SCHEDULE: 2019 2020 2021 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 PL DB TEAM DEFINITION/PRECONSTRUCTION CONSTRUCTION MOVE B-7.1/206-21 6/10/21 25 Project Summaries PROJECT SUMMARY Demand Area: Renewal Type: Active Haring Center Renovation REGENTS ACTIONS: April 2021  Project approval for $34 million  Delegated authority to award Design Build contract GOALS:  A comprehensive renovation of the existing Haring Center to fully serve the contemporary EEU, research and professional development programs.  Maintain early education for the existing number of children served by the Haring Center during construction.  Mitigation of all health and safety issues including regulated materials throughout the center.  Complete reconfiguration of the interior layout to fully align with the current program, and to create a signature central courtyard and active space for shared use.  A comprehensive upgrade or replacement of building systems and exterior assemblies to address thermal comfort and ventilation.  Improve universal access and usability both in and around the facility. DESCRIPTION: The Haring Center project utilizes donor funding to renovate 42,000 GSF to support the College of Education’s Early Education Unit (EEU). Revitalizing this “hidden gem” and realizing its future as a “living laboratory” to test emerging teaching strategies is a key objective of this project. The scope is a full renovation of the building, including building systems and interior configuration. FINANCIALS: Proposed Project Budget Proposed Funding Construction Cost $15,708,000 46.2% Donor Funds* $30,000,000 88.2% Consultant Services $3,230,000 9.5% UW Central Funds $2,000,000 5.9% Equipment and Furniture $1,224,000 3.6% Departmental Funds $2,000,000 5.9% Other Costs $6,358,000 18.7% Total Funding $34,000,000 100% Project Management $1,394,000 4.1% Enabling Costs $6,086,000 17.9% Total Project Costs $34,000,000 100% * The Sunderland Foundation will make 3 payments for a total of $30 million. The initial $10 million payment was received on January 13th. Subsequent payments will be made first quarter of 2022 & January 2023. BENCHMARKS: Parrington Hall Renovation (2020) $340 Project Cost/GSF Kincaid Hall Renovation (2021) $545 Project Cost/GSF UW Autism Center $604 Project Cost/GSF Significant enabling costs contribute to higher cost/GSF between benchmark costs and estimated project. METRICS & INDICATORS: Current Targets Current Targets Net Assignable GSF - 30,400 Construction Cost/GSF - $368 Gross SF - 42,000 Project Cost/GSF - $797 Efficiency (NASF/GSF) - 72.4% Operating Cost/GSF - No Change SCHEDULE: The desire is to complete the project for occupancy at the end of 2023. The risk in meeting that deadline is the construction of surge space, required to vacate the building to begin renovation. B-7.1/206-21 6/10/21 26 Project Summaries PROJECT SUMMARY Demand Area: Renewal Type: Active Foster School of Business - Founders Hall REGENTS ACTIONS: April 2019  Approved project budget, use of bridge program and naming OBJECTIVES:  Continue success in attracting the best faculty, students, and staff.  Create flexible and adaptable space to meet the evolving needs of the Foster School of Business.  Complement existing Foster buildings to form a cohesive and connected Foster School complex.  Celebrate and enhance the distinctive campus open space and circulation patterns in this part of campus. DESCRIPTION: The project will design and construct a new 84,500 square foot building to replace Mackenzie Hall. The program will be a mix of instructional, academic, and administrative spaces. The new facility will house the Foster School Advancement and Alumni teams, program Centers (the Arthur W. Buerk Center for Entrepreneurship, the Consulting and Business Development Center, the Global Business Center, the Center for Leadership and Strategic Thinking, and the Center for Sales and Marketing Strategy), Specialty Masters Programs, Program Offices, conference and team rooms, and Administrative support space. Sustainability and building performance are key design drivers and the building will comply with the University’s Green Building Standards for LEED Gold Sustainability Rating, Energy Efficiency, and Water Use Reduction. FINANCIALS: Proposed Project Budget Proposed Funding Construction Cost $61,107,000 81.4% Donor Funds $71,282,500 94.9% Consultant Services $8,055,000 10.7% UW Capital Funds $3,817,500 5.1% Equipment and Furniture $1,861,000 2.5% Total Funding $75,100,000 100% Project Management $1,645,000 2.2% Other Costs $2,432,000 3.2% Total Project Costs $75,100,000 100% BENCHMARKS: UW CSE II (Gates Center) $866 Project Cost/GSF WSU North Puget Sound $602 Project Cost/GSF UW Bioengineering/Genomic Science $765 Project Cost/GSF Cascadia CC GLA $702 Project Cost/GSF Benchmarks are total project costs/GSF escalated to 2020 METRICS & INDICATORS: Current Targets Current Targets Net Assignable GSF 45,325 45,325 Construction Cost/GSF $723 $693 Gross SF 84,500 82,500 Project Cost/GSF $889 $848 Efficiency (NASF/GSF) 54% 55% Operating Cost/GSF* $14.57 $14.57 *Total operating cost is $672,000 based upon the net new square footage added. SCHEDULE: 2018 2019 2020 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 DB TEAM DEFINITION DESIGN/PERMITTING CONSTRUCTION B-7.1/206-21 6/10/21 27 Project Summaries PROJECT SUMMARY Demand Area: Strategic Type: Active University District Station Building REGENTS ACTIONS: September 2018  Stage 1 Approval — issue RFP December 2019  Stage 2 Approval — 75 year ground lease / 15 year office lease OBJECTIVES:  Reduce the University’s overall cost of leasing administrative office space.  Initiate transit-oriented development in the University District.  Create a gateway to the University’s Seattle campus for light rail users. DESCRIPTION: The University District Station Building (UDSB) will be constructed above the Sound Transit University Station located at NE 43rd St. and Brooklyn Ave NE. The vision is for a 13-story, 260,000 SF administrative and office building. The proposed UDSB maintains University control while aligning near and long-term occupancy presence in what will become the hub of circulation to and from the UW Seattle campus. UDSB aligns with the strategic growth plan allowing greater space efficiency, occupancy synergy and improved lease portfolio metrics. Occupancy of the UDSB will eliminate existing market leases, thus reducing cost to the University. The University property exchange and development agreements for the UDSB were approved at the January 2013 Board of Regents meeting with the Transit Orientated Development (TOD) of Sound Transit. Ground lease, facility lease and financial approval decisions were brought to the Regents Spring 2019. Due diligence is currently scheduled for summer 2021. FINANCIALS: Proposed Project Budget Proposed Funding Shell and Core $177,040,638 86.1% Public/Private Partnership $205,612,888 100% Tenant Improvements $28,572,250 13.9% Total Funding $205,612,888 100% Total Project Costs $205,612,888 100% BENCHMARKS: Trammel Crow / NBBJ Development Study May, 2017 $522 Project Cost/GSF Commercial Office Benchmark - Seattle Market (Seattle DJC May 2018) $500-600 Project Cost/GSF METRICS & INDICATORS: Current Targets Current Targets Net Assignable GSF - TBD Construction Cost/GSF - $99 Gross SF - 260,000/163,270 Project Cost/GSF - $680/$175 Safety - TBD Space Utilization - TBD Business Diversity - 20% (15% OMWBE) Sustainability - LEED Gold SCHEDULE: 2018 2019 2020 2021 2022 2023 2024 25 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 PLANNING DESIGN CONSTRUCTION TENANT IMPROVEMENTS MI B-7.1/206-21 6/10/21 30 Project Summaries PROJECT SUMMARY Demand Area: Strategic Type: Active UW Bothell – Husky Hall Property Acquisition REGENTS ACTIONS:  No specific action — executed under delegated authority OBJECTIVES:  Purchase property for long-term savings and control for future development. DESCRIPTION: Property has been leased and occupied by UW Bothell since 2012 as administrative offices. It is located adjacent to campus property. Debt service payments to fund the purchase cost are projected at slightly less than ongoing rental payments. Value was determined by appraisal, as set forth in the lease’s purchase option, with a negotiated purchase price midway between buyer’s appraisal and seller’s appraisal. Purchase price is $9.35M, with closing costs estimated to bring the total cost to $9.5M. Closing date is estimated at 9/1/21, subject to seller’s identification of 1031 exchange property. FINANCIALS: Proposed Project Budget Proposed Funding Acquisition Cost $9,350,000 98.4% ILP Debt Funds $9,500,000 100% Closing Costs $150,000 1.6% Total Funding $9,500,000 100% Total Project Costs $9,500,000 100% SCHEDULE: 2018 2019 2020 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 NEGOTIATION/VALIDATION PURCHASE B-7.1/206-21 6/10/21 31 Project Summaries PROJECT SUMMARY Demand Area: Renewal Type: Active Intramural Activities Building (IMA) Locker Rooms and Pool Replacement REGENTS ACTIONS: October 2020  Introduced to Board of Regents November 2020  Delegation of authority to the President or her designee to execute all transaction documents OBJECTIVES:  Increase IMA capacity and better serve the University’s current and future demographics.  Modernize gendered and gender-inclusive locker rooms.  Expand swimming pool.  Maintain continuous operation of the IMA building during construction. DESCRIPTION: The locker rooms and swimming pool in the University of Washington’s Intramural Activities Building (IMA) have not been significantly updated since the building’s initial construction in 1966. In this time, infrastructure that assures continued operations has not seen any substantive repair or replacement. Over the past several years, student surveys have consistently prioritized the project objectives, gender-inclusive accommodations and increased pool capacity. The project scope will roughly double the swimming pool capacity and access along with renovations to existing locker room facilities, to create both gendered and gender-inclusive accommodations.  The timing of this project will allow utilization of the Pavilion Pool during the renovation before it is demolished for the new Basketball Operations and Health & High Performance Center. FINANCIALS: Proposed Project Budget Proposed Funding Construction Cost $23,324,503 83.2% SAF Equity $22,500,000 80.2% Consultant Services $2,996,000 10.7% ILP Debt Funds $5,538,500 19.8% Equipment and Furniture $66,000 0.2% Total Funding $28,038,500 100% Other Costs $497,782 1.8% Project Management $1,154,215 4.1% Total Project Costs $28,038,500 100% METRICS & INDICATORS: Current Targets Current Targets Net Assignable GSF - 33,142 Construction Cost/GSF - $536 Gross SF - 43,500 Project Cost/GSF - $645 Efficiency (NASF/GSF) - 76% Operating Cost/GSF - $7.54 Renewal Costs/GSF - $3.50 SCHEDULE: 2019 2020 2021 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 PLANNING DB TEAM DESIGN CONSTUCTION MOVE B-7.1/206-21 6/10/21 32 Project Summaries PROJECT SUMMARY Demand Area: Clinical Type: Active UW Medicine - NWH Childbirth Center REGENTS ACTIONS: April 2018  Approve Pre-construction Budget of $850,000  Delegated Authority to Award Design Build Contract November 2018  Approve Full Project Budget and Funding Plan OBJECTIVES:  Update facility to industry standards to be able to better compete in the market.  Support UW Medicine’s women’s and children’s service line strategic growth plan including UWMC NICU.  Expand capacity and provide space to accommodate 2,500 births per year.  Minimize downtime and impacts to existing CBC operations. DESCRIPTION: The project will renovate approximately 23,000 SF of existing space in three adjoining wings (including one that is not part of the current childbirth center) plus approximately 1,600 SF of new space to house a new C-section suite. The project will be phased to allow continued operations in the balance of the unit and the integration of the new elements as they are completed. Key components of the renovated space include a refined mix of rooms that support the continuum of labor, delivery, recovery, and postpartum care much more efficiently. The renovation will also provide modern amenities in individual rooms, efficient staff and program support spaces, and an OB Emergency sub-department. It will also replace the mechanical and electrical systems. The project will support 2,500 births per year (an increase of more than 1,300 births) and contribute positively to both the annual revenues attributable to childbirth deliveries and other system-wide services associated with offering a childbirth center at UW Medical Center Northwest. FINANCIALS: Proposed Project Budget Proposed Funding Construction Cost $24,078,265 78.7% ILP Debt Funds $25,000,000 81.7% Consultant Services $2,753,550 9.0% Donor Funds $500,000 1.6% Equipment and Furniture $2,722,955 8.9% Departmental Funds $5,095,000 16.7% Other Costs $61,190 0.2% Total Funding $30,595,000 100% Project Management $795,470 2.6% Cost of Issuance $183,570 0.6% Total Project Costs $30,595,000 100% Excludes $6M of enabling projects funded and delivered by UW Medical Center Northwest BENCHMARKS: UWMC Phase II Expansion $844 Project Cost/GSF UWMC ED East Extension $1,065 Project Cost/GSF Swedish Ballard Level II Nursery $688 Const. Cost/GSF Swedish Ballard Behavioral Health $677 Const. Cost/GSF Benchmarks include both Project and Construction costs, since project costs were not verifiable for all benchmarked projects. METRICS & INDICATORS: Current Targets Current Targets Net Assignable GSF - 18,100 Construction Cost/GSF $984 $698 Gross SF 24,600 26,000 Project Cost/GSF $1,244 $962 Efficiency (NASF/GSF) - 70% Operating Cost/GSF $15.35 $15.35 SCHEDULE: 2018 2019 2020 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 DB DEFINITIO DESIGN/PERMITTING CONSTRUCTION – PHASE 1 PHASE 2 PHASE 3 B-7.1/206-21 6/10/21 35 Project Summaries PROJECT SUMMARY Demand Area: Renewal Type: Core Capital Power Plant Repairs REGENTS ACTIONS: TBD  Planned project approval Fall 2021 OBJECTIVES:  Pre-design to verify scope and estimate, and to identify any air-pollution permitting obstacles or issues ($500k).  Demo existing High Pressure Turbine Generator and replace with new industrial Low Pressure Turbine Generator ($8M) and black-start Diesel Generator ($5M).  Upgrade controls and flame safety systems on the No. 3 and No. 5 Boilers ($6.5M).  Upgrade Feedwater Pump System ($2.5M).  De-rate pressure on No. 6 and No. 7 Boilers ($4.5M) — if it can be accomplished without triggering EPA NSPS standards that disallow modification. DESCRIPTION: The aging plant and associated infrastructure is in desperate need of renewal to maintain reliability. A list of strategic investments to ensure ongoing, reliable operation of the facility for the next 5-10 years to support the daily operations of our buildings, research and academic programs has been identified. FINANCIALS: Proposed Project Budget Proposed Funding Total Project Costs $27,000,000 100% UW Building Account 21-23 $10,000,000 37.0% Central Equity $17,000,000 63.0% Total Funding $27,000,000 100% SCHEDULE: TBD 2021 2022 2023 2024 2025 2026 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 PLANNING CONSTRUCTION B-7.1/206-21 6/10/21 36 Project Summaries INSTITUTIONAL CAPITAL PROJECT SUMMARY Demand Area: Renewal Type: Institutional Capital Renovation/Replacement Magnuson Health Sciences Center – Phase 2 REGENTS ACTIONS: October 2021  Project approval for Phase 2  Delegated authority to award Design Build contract OBJECTIVES:  Modernize primary teaching facility in support of pedagogies used by the nation’s top- ranked health sciences schools.  Reduce the deferred maintenance backlog in the largest campus building and upgrade critical systems in support of the entire Health Sciences complex.  Advance the principles of the Campus Master Plan for the Health Sciences zone. DESCRIPTION: The Magnuson Health Sciences Center is the primary teaching facility for the UW’s health sciences students with direct connection to the UW Medical Center. It was built in various phases from 1949-1973. Each addition or minor renovation over the years has added more pressure to the building’s overall infrastructure, MEP needs and structural integrity, with a significant amount of deferred maintenance built up, including safety and code compliance issues. The 1973 built T-Wing is 493,000 SF and cannot accommodate all existing or new course offerings nor support the advanced learning technologies and space requirements essential for training health care professionals of the 21st century. Current space also limits the options for the six schools of Health Sciences to share inter-professional and overlapping instructional activities and support connections with local, regional, and global community partners. In order to deliver world-class health science scholars, the UW must modernize our teaching facilities in a phased approach. FINANCIALS: Proposed Project Budget Proposed Funding Construction Cost $45,312,000 70.8% State Bldg/Const. Account 19-21 $1,000,000 1.6% Consultant Services $7,040,000 11.0% State Capital Request 21-23 $5,000,000 7.8% Equipment and Furniture $6,976,000 10.9% State Capital Request 23-25 $58,000,000 90.6% Other Costs $2,240,000 3.5% Total Funding $64,000,000 100% Project Management $2,432,000 3.8% Total Project Costs $64,000,000 100% METRICS & INDICATORS: Current Targets Current Targets Net Assignable GSF - 68,850 Construction Cost/GSF - $525 Gross SF - 85,000 Project Cost/GSF - $750 Efficiency (NASF/GSF) - 81% Operating Cost/GSF - No change Renewal Costs/GSF - No change SCHEDULE: 2020 2021 2022 2023 2024 2025 2026 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 PLANNING DB TEAM DEFINTION/PRECONSTRUCTION CONSTRUCTION B-7.1/206-21 6/10/21 37 Project Summaries PROJECT SUMMARY Demand Area: Renewal Type: Institutional Capital Renovation/Replacement Magnuson Health Sciences Center – Phase 3 REGENTS ACTIONS: TBD  Project approval for Phase 3  Delegated authority to award Design Build contract OBJECTIVES:  Modernize primary teaching facility in support of pedagogies used by the nation’s top- ranked health sciences schools.  Reduce the deferred maintenance backlog in the largest campus building and upgrade critical systems in support of the entire Health Sciences complex.  Advance the principles of the Campus Master Plan for the Health Sciences zone. DESCRIPTION: Third phase of a multi-phased renovation in a 400,000 GSF fully occupied asset (T-Wing) to address deferred maintenance and new pedagogies. The phase II pre-design funding request will lay out the approximate phasing, the needs to be addressed and the complexities of a phased project of this magnitude. The Magnuson Health Sciences Center is the primary teaching facility for the UW’s health sciences students with direct connection to the UW Medical Center. It was built in various phases from 1949-1973. Each addition or minor renovation over the years has added more pressure to the building’s overall infrastructure, MEP needs and structural integrity, with a significant amount of deferred maintenance built up, including safety and code compliance issues. The 1973 built T-Wing is 493,000 SF and cannot accommodate all existing or new course offerings nor support the advanced learning technologies and space requirements essential for training health care professionals of the 21st century. Current space also limits the options for the six schools of Health Sciences to share inter-professional and overlapping instructional activities and support connections with local, regional, and global community partners. In order to deliver world-class health science scholars, the UW must modernize our teaching facilities in a phased approach. FINANCIALS: Proposed Project Budget Proposed Funding Construction Cost $71,963,655 75.8% State Capital Request 23-25 $20,000,000 21.1% Consultant Services $9,876,730 10.4% State Capital Request 25-27 $75,000,000 78.9% Equipment and Furniture $3,643,897 3.8% Total Funding $95,000,000 100% Other Costs $6,966,256 7.3% Project Management $2,549,462 2.7% Total Project Costs $95,000,000 100% METRICS & INDICATORS: Current Targets Current Targets Net Assignable GSF 100,000 - Construction Cost/GSF $720 - Gross SF 65,000 - Project Cost/GSF $950 - Efficiency (NASF/GSF) 65% - Operating Cost/GSF TBD - Renewal Costs/GSF TBD $8.78 SCHEDULE: 2023 2024 2025 2026 2027 2028 2029 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 PLANNING DB TEAM DEFINTION/PRECONSTRUCTION CONSTRUCTION B-7.1/206-21 6/10/21 40 Project Summaries PROJECT SUMMARY Demand Area: Renewal Type: Institutional Capital UW Library Storage Renovation / iSchool Relocation REGENTS ACTIONS:  None anticipated OBJECTIVES:  Further UW Libraries’ initiative to relocate collections to offsite space at Sand Point to better serve the collection stewardship mission and free up space on campus for student and faculty study and collaboration.  Provide safe, climate-controlled collections space for UW Libraries’ collections.  Provide consolidated interim space for iSchool while search for permanent location continues.  Serve iSchool’s students, faculty, and staff by providing improved office, classroom, and dry lab space and support funded research. DESCRIPTION: This project will create 30,000 ASF off-site collections space for use by UW Libraries in Sand Point Building 5D, Floor 4 and will reorganize and relocate Library collections to vacate Allen South 1st Floor and Kane Hall Basement. Allen South 1st Floor will be retrofitted for use by iSchool until a long-term, single-location solution is available. Project sequencing is expected to be as follows: 1. Construction of an enclosed and insulated 30,000 ASF off-site shelving space at Sand Point 5D, 4th Floor. 2. Installation of new and existing/relocated shelving (new shelving to be maximized as budget allows). 3. Movement of materials from various locations on campus per direction from UW Libraries. 4. Retrofit of Allen South 1st Floor for use by iSchool, improvements to iSchool space in Mary Gates Hall 3rd Floor. FINANCIALS: Proposed Project Budget Proposed Funding Construction Cost $6,176,610 79.2% Provost Funds $2,626,348 33.7% Consultant Services $232,663 2.9% Program Renewal $1,201,626 15.4% Equipment and Furniture $426,017 5.5% iSchool Reserves $626,348 8.0% Other Costs $546,500 7.0% Library Reserves $126,348 1.6% Project Management $418,210 5.4% Provost Loan to iSchool $2,000,000 25.6% Total Project Costs $7,800,000 100% Libraries FAST Loan $1,225,956 15.7% Total Funding $7,806,626 100% METRICS & INDICATORS: Current Targets Current Targets Net Assignable GSF 41,000 - Construction Cost/GSF $128 - Gross SF 50,000 - Project Cost/GSF $156 - Efficiency (NASF/GSF) 82% - Operating Cost/GSF - - Renewal Costs/GSF - - SCHEDULE: 2020 2021 2022 2023 2024 2025 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 PLANNING DESIGN CONSTRUCTION CLOSEOUT B-7.1/206-21 6/10/21 41 Project Summaries PROJECT SUMMARY Demand Area: Renewal Type: Institutional Capital ASUW Shell House Restoration REGENTS ACTIONS: TBD  Project approval for $10 million capital + $3 million M+O  Delegated authority to award Design Build contract OBJECTIVES:  Restore 100-year-old historic building while preserving the unique sense of place.  Preserve exposed wood timbers, grand doors, ceilings and character of the structure.  Provide modernized utility infrastructure.  Comply with accessibility and life safety code.  Upgrade program functions to be flexible and accommodate multiple uses.  Improve adjacent landscape and access consistent with Campus Master Plan. DESCRIPTION: The existing building on the Montlake Cut was constructed in 1918 and was originally occupied as a US Navy seaplane hangar. Transfer of ownership to the UW revised the occupancy to construction and storing of rowing shells and for training UW rowers. The building is now largely vacant and used for gathering events and historical oversight of the UW rowing legacy. The scope of the project addresses improvements required to revitalize this building while maintaining the historical nature of the building. The improvements include site work for accessibility, utilities, increased electrical service, structural improvements, envelope thermal insulation, heating and ventilation, restrooms, stabilizing existing hangar doors, construction of a glass curtain wall in the exiting hangar door opening, fire protection and fire alarm, power, data, communications, and lighting. FINANCIALS: Proposed Project Budget (excludes M&O) Proposed Funding Construction Cost $8,053,176 80.5% Gift Funding $10,000,000 76.9% Consultant Services $615,559 6.2% Gift Funding (M&O) $3,000,000 23.1% Equipment and Furniture $462,993 4.6% Total Funding $13,000,000 100% Other Costs $345,370 3.5% Project Management $522,902 5.2% Total Project Costs $10,000,000 100% BENCHMARKS: UW Clark Hall Renovation (2010) $935 Project Cost/GSF UW Denny Hall Renovation (2016) $813 Project Cost/GSF Parrington Hall Renovation (2020) $410 Project Cost/GSF Kincaid Hall Renovation (2021) $542 Project Cost/GSF METRICS & INDICATORS: Current Targets Current Targets Net Assignable GSF 8,480 - Construction Cost/GSF - $564 Gross SF 10,600 - Project Cost/GSF - $940 Efficiency (NASF/GSF) 80% - Operating Cost/GSF - $7.50 Renewal Costs/GSF - $7.00 SCHEDULE: To be determined. B-7.1/206-21 6/10/21 42 Project Summaries PROJECT SUMMARY Demand Area: Growth Type: Institutional Capital College of Education – Early Learning Campus, Mt. Baker REGENTS ACTIONS: February 2022  Delegated authority to engage with the City of Seattle on final terms March 2022  Project Approval for $57 million + $15 million O+M (15 yr.)  Approved final terms with the City.  Delegation of authority to execute final terms with the City. OBJECTIVES:  Access: Deliver high-quality childcare and preschool programs including high-demand family support services.  Workforce Development: Provide affordable, relevant, and innovative professional- development and degree-completion programs to early-learning professionals.  Systems Improvement: Support incubation and rapid-cycle innovation in early-learning practices while providing equitable dissemination infrastructure that reaches every Head Start, Early Head Start, and most EACAP programs in the state. DESCRIPTION: The city of Seattle has assembled 3.79 acres of land adjacent to the Mount Baker Link light rail station, at Rainier Ave S. and S. McClellan street. A state capital-budget proviso mandates that the property be redeveloped for affordable housing and educational use, including a possible early-learning focus. This is an ideal location to deliver early learning services, support existing service providers, and incubate emerging services and providers. It is the proposed home of the Early Learning Campus. An advisory board made up of Southeast Seattle families and community leaders has joined with faculty members from the UW College of Education to shepherd the effort. Together, they have met with elected officials, the city government’s Office of Housing and the Department of Education and Early Learning, and many community groups to explore and co-design the proposed initiative. FINANCIALS: Proposed Project Budget Proposed Funding Capital Acquisition $36,000,000 Donor Funding 100% Capital TI Cost (including FF&E) $20,000,000 NOTE: No University Debt will be incurred for this project. Legal Fees & Expenses at Commencement $75,000 Total Estimated Upfront Costs $56,075,000 Operating Expenses (15 years) $15,100,000 Mid Term Tenant Improvements/Renewal $625,850 Total Estimated Upfront and Ongoing Costs $71,800,850 METRICS & INDICATORS: Current Targets Current Targets Net Assignable GSF - - Construction Cost/GSF $896 - Gross SF 62,585 - Project Cost/GSF - - Efficiency (NASF/GSF) - - Operating Cost/GSF* $14 - *Operating expenses include a 3% per annum increase. SCHEDULE: The City is driving the schedule for this development. It’s currently anticipated that construction would begin immediately following the execution of the agreement between the University and the City of Seattle. B-7.1/206-21 6/10/21 45 Project Summaries PROJECT SUMMARY Demand Area: Clinical Type: Clinical Capital UW Medicine - Primary and Specialty Care Expansion REGENTS ACTIONS: October 2021  Project approval  Approve use of ILP Funds  Delegate authority to award Design Build contract OBJECTIVES:  Provide additional primary and specialty care capacity for key service lines in order to grow strategic market volumes. DESCRIPTION: UW Medicine has strategic initiatives to grow market share in key areas within the greater Puget Sound region. This project will provide capacity for additional primary and specialty care and related ancillary services. The additional volume generated from this expansion is anticipated to improve access for key service lines. FINANCIALS: Project costs are not yet finalized and planning work for this project is just underway. Project execution is anticipated to occur starting late in FY22 and continuing into FY24. Proposed Project Budget Proposed Funding Construction Cost $26,200,000 80.0% ILP Debt Funds $32,750,000 100% Consultant Services $3,275,000 10.0% Total Funding $32,750,000 100% Equipment and Furniture $3,275,000 10.0% Total Project Costs $32,750,000 100% SCHEDULE: 2021 2022 2023 2024 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 PLANNING TEAM DEFINITION/DESIGN CONSTRUCTION B-7.1/206-21 6/10/21 46 Project Summaries PROJECT SUMMARY Demand Area: Clinical Type: Clinical Capital UW Medicine (Medical Centers) - Procedural Space REGENTS ACTIONS: September 2021  Project approval  Approve use of ILP Funds  Delegate authority to award Design Build contract OBJECTIVES:  Relocate and expand capacity for procedures both to grow the program and allow for relief of volumes.  Vacated procedural suite on the main campus will allow for future OR expansion on the Northwest main campus (OR expansion not included in this project scope). DESCRIPTION: The vacated space on the main campus will be remodeled to create procedural suites to accommodate projected volume demand. This project will allow for procedural growth of one of the key strategic service lines within UW Medicine. Volumes at Montlake are at full capacity so this project will allow for the decanting of these lower acuity procedures to be focused on the Northwest campus. The project is not yet fully planned and developed but is anticipated to occur over a two-year period starting in FY22. FINANCIALS: Proposed Project Budget Proposed Funding Construction Cost $7,700,000 70.0% ILP Debt Funds $11,000,000 100% Consultant Services $1,650,000 15.0% Total Funding $11,000,000 100% Other Costs $1,650,000 15.0% Total Project Costs $11,000,000 100% SCHEDULE: 2021 2022 2023 2024 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 PLANNING TEAM DEFINITION/DESIGN CONSTRUCTION B-7.1/206-21 6/10/21 47 Project Summaries PROJECT SUMMARY Demand Area: Clinical Type: Clinical Capital UW Medicine (Medical Centers) – Other Clinical Capital Projects REGENTS ACTIONS: Date TBD  Regents will review and approve a dedicated amount of ILP debt funding for groupings of small projects (under $15M) on an annual basis as part of the review of UW Medicine’s Long Range Financial Plan (LRFP). To implement all the projects on the LRPF, UWMC local equity will also be leveraged. All projects will be executed under delegated authority. OBJECTIVES:  Capital projects in the clinical enterprise support ongoing operations and strategic initiatives for each of the UW Medical Centers and clinics in keeping with the Strategic Refresh. DESCRIPTION: Construction – Core Capital: All of the UW medical centers require constant life cycle renewal and programmatic renewal to keep up with a rapidly changing industry and to adequately maintain the facilities. This set of projects ensures that the most pressing facilities needs can be addressed at each medical center. In many cases these projects complement larger initiatives at the respective medical centers. Fund sources to be deployed for these projects include ILP debt and local equity. Examples of projects include asset upgrades critical to Operations and Maintenance, Radiation Oncology, and Radiology. Equipment – Core Capital: Continual re-investment in medical and diagnostic equipment is critical in order to provide the most effective patient care possible. The capital investments in this grouping will ensure equipment at the medical centers is replaced and upgraded in a timely and strategic manner. Fund sources to be deployed for these projects include ILP debt and local equity. Examples of projects include medical and diagnostic equipment to support the Heart Institute, PCS, Perioperative Care, Radiation Oncology, and Radiology. Strategic Service Line Expansion: As part of UW Medicine’s Strategic Refresh a series of capital investments have been identified that will help advance UW Medicine’s position in the market. These projects focus on enhancing and expanding services at various locations throughout the system. Fund sources to be deployed for these projects include ILP debt and local equity. Examples of expansion projects include opportunities for the Heart Institute, Neurosciences Institute, Spine, Transplant, and Women & Children. Examples of refresh projects includes opportunities for ACD, Inpatient Care, Pharmacy, Psychiatric Care, and Perioperative Care. Campus Reconfiguration/Backfill at Northwest: In order to provide additional capacity for complex quaternary patient care on the Montlake Campus of UWMC, reconfiguration of existing clinical space on the Northwest campus is needed. A number spaces will be redesigned and updated to enable the relocation of certain services from Montlake to Northwest, providing much needed clinical space to expand services for key strategic services line growth on the Montlake campus. IT Improvements: One of the most rapidly changing areas of the clinical enterprise is IT. This has become especially apparent in the current situation as we work remotely and patients seek assistance remotely. The investments in this group will be funded through local equity. FINANCIALS: Proposed Project Budget Proposed Funding Total Project Costs $449,450,000 100% ILP Debt Funds $173,250,000 38.5% UW Medicine Unit Equity $276,200,000 61.5% Total Funding $449,450,000 100% SCHEDULE: Individual project schedules in development. B-7.1/206-21 6/10/21