Capital Budget and 3-Year Capital Plan section 4 capital ...bondholder-information.stanford.edu/pdf/BudBk_2008-09_sec4.pdf · Capital Budget and 3-Year Capital Plan 59 Central CFF

Capital Budget and 3-Year Capital Plan 57

section 4

capital budget and 3-year capital plan

Major Capital projeCts – perCent of CoMpletion 2008/09*

[in millions of dollars] Estimated Capital Estimated Percent Budget Project Complete 2008/09 Cost 2008/09

SchoolofEngineeringand

NanoCenters 100.8 192.7 70%

GraduateSchoolofBusiness-New

CampusandParkingStructure 99.9 370.0 55%

StanfordInstitutesofMedicine#1 85.0 201.5 58%

MungerGraduateResidences 72.7 227.0 100%

LearningandKnowledgeCenter 53.0 144.2 80%

JohnandCynthiaFryGunn

(SIEPR)Building 21.0 32.0 100%

MaplesParkingStructure 19.3 38.6 100%

LawSchoolClinicsand

FacultyOfficeBuilding 15.0 71.2 35%

OlmsteadRoadStaff

RentalHousing 13.6 14.3 83%

StanfordAthleticsPractice

Gymnasium 12.6 14.8 100%

MechanicalEngineeringBuilding 10.6 14.9 59%

StanfordAvenueFacultyHomes 10.5 33.4 14%

*IncludesProjectsinDesignandConstructionwithconstruction startdateandforecastedexpendituresgreaterthan$10million in2008/09.

ThissectionoutlinesStanford’s2008/09CapitalBudgetand2008/09–2010/11CapitalPlan.TheCapitalBudgetrepresents$680.2million

ofcashoutlaysandassociatedfundingoftheCapitalPlanforthenextyear.TheCapitalPlanforecasts$2.8billioninconstructionandinfrastructureprojectsandprogramsthatarecurrentlyunderwayorplannedtobeginoverthenextthreeyears.

THE CAPITAL BUDGET, 2008/09

The2008/09capitalbudget,at$680.2million,isthelargest theuniversityhaseverundertaken,and itrepresentsa76%increaseoverthe2007/08capitalbudget.Itreflectstheuniversity’ssignificantcapitalinitiatives,includingexpendituresforsixoftheeightSEMCbuildings,thenewGraduateSchoolofBusiness(GSB)campus,theMungerGraduateResidences,thenewJohnA.andCynthiaFryGunnBuilding(SIEPR),andvariousinfrastructureprojectsandprograms.Theprojected2008/09expendituresreflectonlyaportionofthetotalcostsofthecapitalprojects,asmostprojectsspanmorethanoneyear.Thetablebelowhighlightsthemajorcapitalprojectsintheplan,theprojectcoststhatwillbeincurredinthe2008/09capitalbudget,aswellasthefractionoftheprojectthatisexpectedtobecompletedbytheendof2008/09.

Themagnitudeof thecapitalbudget isbased theassumptionthatfundingavailabilitywillalignwithapprovedprojectschedules.However,itisthepolicyoftheuniversitytohavethefundingidentifiedbeforebeginningconstruction.Asaresult,thecapitalbudgethashistoricallybeensubstantiallyhigherthanactualspending.Infact,actualexpenditureshaveaveragedonly63%of thebudgetover thepast sevenyears.These lowerthanplannedexpendituresaremostlyduetoprojectdeferralsduetofundinggaps. Manyof theprojects inthe2008/09capitalbudgethavefundingidentified,staffassigned,andhavereceivedpreliminaryBoardofTrusteesapproval.Therefore,

weexpectthattheactualexpendituresin2008/09willbemuchclosertothebudgetthaninthepast.

sourCes and uses

Sourcesoffundsareanticipatedtobeacombinationofcurrentfunds(existingreservesandfundbalances),giftsinhand,pledgedandtoberaised,short-term,medium-term,andpermanentdebt.Theuniversitytypicallyusesdebtonprojectsasthelastsourceoffunds.ThemixoffundsfortheCapitalBudgetwillbeimpactedbythetimingofgiftreceipts.

58 Capital Budget and 3-Year Capital Plan

the Capital Budget 2008/09: $680.2 Million

uses of funds By projeCt type

Housing16%

AcademicSupport

4%Athletics/

StudentActivities3%

Academic/Research

62%

Infrastructure15%

USES OF FUnDS BY PrOGrAM CATEGOrY

NewConstruction80%

Renovations5%

Infrastructure15%

uses of funds By prograM Category

Ofthe$680.2millionintheoverallcapitalbudget,62%willbespentonAcademic/Researchprojects.Housing, Infrastructure,AcademicSupport, andAthletics/StudentActivitieswillrepresent16%,15%,4%,and3%,respectively.Anestimated80%ofthebudgetwillbespentonnewconstructionprojects.ThemajorityoftheseexpendituresarefortheSEMCbuildings,theGSBNewCampusandParkingStructureandtheMungerGraduateResidences. Another5%willbespentonrenovationprojectssuchasPanamaMall ,Crothers/CrothersMemorialandtheVisitorInformationCenter.Theremaining15%willbespentoninfrastructureprojectsandprograms,includingtheInvestmentinPlant–Maintenance,R&DE’sCapitalImprovementProgram,and theCapitalUtilitiesProgram(CUP).

Capital Facilities Fund

AcrucialnewsourceoffundsforcapitalprojectsistheCapitalFacilitiesFund(CFF).InJune2007,theBoardofTrusteesapprovedanincreaseinthetargetendow-mentpayoutratefrom5.0%to5.5%.Theincreasedpayoutisplannedforaminimum5-yearperiodwitharolling3-yearwindow.Theadditionalpayoutfreesupunrestrictedfunds,whichwehavesequesteredintheCFFtosupportmajorfacilitiesprojects.

TransferstotheCFFwillaverage$140millionperyearacrosstheuniversity,generatingapproximately$700millionoverthenextfiveyearsformajorcapitalprojectsandinfrastructure.Todate,approximately$173millionofCFFfundinghasbeencommittedtoprojects,ofwhich$151millionwillbespent in2007/08and2008/09asshowninthetable.

Capital faCilities fund (Cff)FundingSourcesandCommittedUsesofFunding

[in millions of dollars]

2007/08 2008/09

Sources of Funding

FormulaUnits

SchoolofMedicine 21.5 22.4

GraduateSchoolofBusiness 6.7 7.0

HooverInstitution 4.1 4.3

PresidentialFunds 16.0 16.7

Non-formula 81.8 85.3

Total Funding 130.1 135.7

Committed Uses of Funding

LearningandKnowledgeCenter 0.9 7.7

StanfordInstitutesofMedicine#1 6.9

RedwoodCityCampus 15.3 6.9

Y2E2Building 2.4 4.5

PorterDriveExpenses 6.7 7.0

NanoCenter 12.4

SchoolofEngineeringCenter 5.0

MungerGraduateResidences 36.5 2.9

VisitorInformationCenter 4.9

Biology 5.0

EastCampusChildcareFacility 5.4

CubberleySeismicRenovation 5.4

OtherProjects 12.2 3.1

Total Commitments 103.2 47.9

AnnualUncommittedBalance 26.9 87.8

CummulativeUncommittedBalance 26.9 114.7


CentralCFFfundsareallocatedforpurposesdifficulttosupportthroughrestrictedsources,andthusreducethecallforgeneralfundsserviceddebt.Amongotheruses,theCFFisfundingtheenhancedsustainabilityfeaturesofseveraloftheSEMCbuildings,andwillbeaprincipalsourceoffundsfortheRedwoodCityCampusproject.

TheformulaunitsdetermineusesoftheirCFFfundsaccordingtotheirhighestpriority.

Capital Budget iMpaCt on 2008/09 operations

The2008/09ProjectedConsolidatedBudgetforOp-erationsincludesincrementaldebtserviceandO&Mexpensesforprojectscompletingin2008/09.Addi-tionally,thisbudgetincludesanincrementalincreaseindebtandO&Mexpensesforprojectscompletingin2007/08thatwereoperationalforlessthan12monthsin2007/08.

Asnoted inSection1,Stanford issuesdebt in thepublicmarketstofinancecapitalprojectsandpro-grams.Internalloansarethenappliedtoprojects,andamortizedovertheprojectlifeinequalinstallments(principalandinterest). Thebudgetedinterestrateusedtocalculateinternaldebtserviceisablendedrateofallexternalinterestexpense,bondissuancecosts,andadministrativecosts,andisresetannually.Theprojectedblendedratefor2008/09is5.2%.

Theprojectedincrementalinternaldebtservicefundedbyunrestrictedfunds, includingformulaunits, in2008/09is$3.6million. ThisamountincludestheadditionaldebtserviceontheenergyretrofitsofGatesandGilbert,theForsythePowerUpgrade,theEmer-gencyGenerators&Fuelingprojectandothersmallercapitalprojectsandprograms,offsetbyareductionof0.5%inthebudgetedinterestrate.Itexcludesin-terestchargesondebtbackstoppinggiftreceiptsandannualleasepayments.Thisadditionaldebtservicebringsthetotalannualinternaldebtservicebornebytheunrestricteduniversitybudgetto$43.7million,2.8%ofunrestrictedrevenues,general funds,anddesignatedfunds.

Totalinternaldebtservice,includingthatbornebyauxiliariesandservicecenters,will increase from$133.2millionto$142.7million.

TheuniversitywillincuradditionalO&Mandutilitiescostsofapproximately$1.7million.This ismostlyduetothecompletionoftheJerryYangandAkiko

YamazakiEnvironmentandEnergyBuilding(Y2E2),theJohnA.andCynthiaFryGunnBuilding(SIEPR),ForsytheRenovation,theLorryLokeyStanfordDailyBuilding,ParkingStructure6(aspartoftheMungerGraduateResidences),andsmaller infrastructuremaintenancecosts.

CAPITAL PLAnnInG OvErvIEw

Capital planning at stanford

Stanford’sCapitalPlanisathree-yearrollingplanwithbudgetcommitmentsmadefor thefirstyear,andthenonlyforprojectswithfullyidentifiedandapprovedfunding.Cashflowexpenditureforecastsfortheseprojectsextendwellbeyondthethree-yearperiod.Budgetimpactsforoperations,maintenance,anddebtservicecommenceatconstructioncomple-tion.Theplanincludestablesforecastingbothcashflowandbudgetimpactsbyyear,demonstratingthelongerthanthree-yearimpactoftheplan.

TheCapitalPlanissetinthecontextofalonger-termcapitalforecastfortheUniversity.Thedetailsofthislonger-termforecast,particularlyfundingsourcesandschedules,arelessclearthanthoseofthethree-yearplan,aswecannotanticipateallof theneedsandfundingsourcesthatmayemergeoverthelong-termhorizon.Additionally,planstendtochangeovertimeassomeprojectsprovemorefeasiblethanothersgivenevolvingfundingrealitiesandacademicpriorities.

AmajorissueaffectingtheCapitalPlaniscostesca-lationintheconstructionmarket. Escalationoverthe last few years has proven to be a signif icantrisktoprojectbudgets,particularly intheareaofsubcontractorlabor. Tomitigatethisrisk,manyoftheCapitalPlan’slargeprojectbudgetscarryaspecificlineitemfornear-termescalation.Ifsuchescalationisrealized,thiscouldincreasetheprojectcostcomparedtohistoricaltrends.

At$2.8billion,thisyear’sCapitalPlanis17%higherthantheprioryear’s$2.4billionplan.Consistentwithprioryears,severalprojectsshowlargepercentagesoftheirfundingsourcesasGiftstoBeRaised.TheOfficeofDevelopmenthasdeterminedthatthesearefeasiblefundraisingplans,althoughtheirtimeframescouldchange.“ResourcestobeIdentified”includesfundsyettobefullyidentified,withtheexpectationtheywillcomefromacombinationofgifts,theschools,anddepartmentanduniversityreserves.


STrATEGIC InITIATIvES

Thefollowingstrategicinitiativesareintegraltothisyear’sCapitalPlanandaredescribedinmoredetailbelow.

projeCts

n Science, Engineering, and Medical Campus(SEMC)

n RedwoodCityCampus

n StanfordUniversityMedicalCenter(SUMC)

prograMs

n SustainabilityatStanford

n SpaceChargeandSpaceUtilizationStudies

n FurnitureandWorkplaceProgram

projeCts

Science, Engineering and Medical Campus

Asmentionedinprioryears,theScience,EngineeringandMedicalCampus(SEMC)initiativeconsistsofeightnewbuildingstobedesignedandconstructedoverthenextdecade.ThebuildingsincludeAstrophysics(whichwascompletedin2006);theJerryYangandAkikoYamazakiEnvironmentandEnergyBuilding(Y2E2)(whichwascompletedin2007);Biology;theSchoolofMedicineLearningandKnowledgeCenter(LKC);theStanfordInstitutesofMedicine#1(SIM1);andthreeadditionalbuildingstobelocatedinthenewScienceandEngineeringQuad(SEQ2):theSchoolofEngineeringCenter(SOECenter),theNanoCenter,andBioengineering/ChemicalEngineering.

Thisyear’sCapitalPlanincludesthecostsofsixoftheeightSEMCbuildings,togetherwithassociatedcon-nectiveelements,utilitiesanddemolitionprojects.Italsoincludesalineitemforcontingencyrisk.SEMCcostsincludedinthisplanare$794.9million,or29%ofthetotalplanexpenditures.

ThefollowingaredescriptionsoftheSEMCbuildingsthathaverecentlybeencompletedorarecurrentlyunderway:

Stanford Institutes of Medicine

TheSchoolofMedicine(SoM)long-rangeplancallsforthedevelopmentofnewresearchfacilitiesthatwillfocusoninstitutes.TheSoMhasdevelopedfiveInstitutesofMedicineasfollows:theCancerCenter,theInstituteforStemCellBiologyandRegeneration

MedicineInstitute,theCardiovascularInstitute,theNeurosciencesInstitute,andtheImmunityTrans-plantationandInfectionInstitute. TheStanfordInstitutesofMedicine(SIM1)building,thefirstofthreeinstitute-basedbuildingsplannedbytheschool,willhousetheStemCellBiologyandRegenerativeMedicineInstitute(SCBRM)andtheCancerCenter.ResearchersfromotherSoMinstituteswilloccupythebuildingaswell.SIM1ispartoftheSEMCinitiativeandestablishesacriticaldirectionforthedevelopmentofthecampusoverthenext20years.

TheSIM1buildingwillbe200,000gross squarefeet,builtsouthoftheCCSRbuildingalongCampusDrive,withabasementandthreeabovegradefloorsofresearch labsandothersupport facilities. Thisbuildingwillbeconnectedtoothernearbyresearchfacilitiesviaatunnel. ThedesignforSIM1buildsonthe ‘architecturalkitofparts’ fortheSchoolofMedicinethatwasestablishedintheClarkCenterdesign,whichservesasatransitionbetweenthede-signguidelinesforthemaincampusandthedesignguidelinesfortheMedicalCenter. Thethree-storybuildinghasaprimarystructuralframeworkofstone,precastcolumns,analuminumwindowsystem,andacardinalredmetaloverhangelementsimilartotheClarkCenterandtheLKC.Apatternofstoneandglassopeningsissimilartothemaincampus. LiketheLKCandotherbuildingsintheSEMC,SIM1hasextensivesustainabilityfeatures.

School of Engineering Center (SOE Center)

TheSOECenter,attheheartofthenewSEQ2,willbetheheadquartersfortheSchoolofEngineeringanda

seMC projeCt suMMary1 [in millions of dollars]

Project Completion Cost

StanfordInstitutesof Medicine#1 2010 201.5SchoolofEngineering andNanoCenters 2010 192.7LearningandKnowledgeCenter2010 144.2Bioengineering/ ChemicalEngineering 2013 136.9Biology 2011 114.6Contingency 5.0

Total 794.9

1ExcludesAstrophysicsandY2E2whichwerecompletedin2006and 2007,respectively.


majordestinationfortheWestCampus.Theprojectbeganconstructionin2008andisanticipatedtobecompletein2010. TheCenterwillbeaninspiring,vibrantenvironment,embodyingtheSchoolofEngi-neering’svaluesofentrepreneurshipandinnovation,depictingtheSchool’srichhistoryandconnectionstoSiliconValley,andservingasalivingexampleofthefutureofengineering.

TheSOECenterislocatedonthesouthernportionoftheformerHEPLbuildingsite.The140,000gsfbuildingwillhousetheDean’soffice,theManagementScienceandEngineeringdepartment,theInstituteforCom-putationalandMathematicalEngineering,classroomsfortheStanfordCenterforProfessionalDevelopmentincludinga300-seatauditorium,theEngineeringLi-brary,astudent-friendlycafé,aconferencecenterandagroupofcommunalandcollaborativespacescalled“theCommons.”Thenewbuildingwillbethreestoriesabovegradewithabasement.PromptedbythesuccessofY2E2,theSOECenterwillalsoincludeaggressivesustainabilitygoalswhicharedescribedintheSchoolofEngineeringsectionofchaptertwo.

Nano Technology Center (Nano Center)

TheNanoCenterislocatedonthenorthernportionoftheformerHEPLbuildingsite.Theprojectbeganconstructionin2008andisanticipatedtobecompletein2010.The105,000gsfbuildingwillhouseabroadspectrumoflaboratoriesincludingaNanopatterninglab,opticalfacilities,opticalmaterialslab,aflexiblecleanroom,electronicslab,crystalshop,andbiologi-calresearchlabs.ThebuildingwillalsosupporttheGinztonLaboratoryandtheproposedInstituteforNanoscienceandTechnology.Thenewbuildingwillbe threestoriesabovegradewithabasementandsub-basementhousing lowvibration laboratories.NaturalventilationanddaylightingstrategieswillbeemployedthroughouttheNanoCenter,asintheY2E2building.

TheNanoCenterwill feature themostadvancedequipmentavailable toexplorematterat thena-noscale,suchasane-beamlithographytoolandanatomic forcemicroscope.Muchof thisequipmentwillbelocatedundergroundtoprovidethestringentcontrolofvibration, light,andcleanliness that isessential fornanoscaleresearch.TheNanoCenterwillmakethese labsavailabletoapproximately70researchersfromallovercampus,includingleadersinthenaturalandphysicalsciences,engineering,and

medicinewhoareexploringnanoscalepropertiesanddeviceswithpotentialapplicationsasdiverseaswaterpurification,energyconservation,transportation,andnationalsecurity.TheNanoCenterwillcomplementthenearbyStanfordNanocharacterizationLabandStanfordNanofabricationFacility.SustainabilitygoalsforthebuildingarecoveredintheDeanofResearchsectionofthisbook.

Learning and Knowledge Center (LKC)

TheLKCiscurrentlyunderconstructiononthesiteclearedbytheFairchildAuditoriumdemolition.Theprojectbeganconstructionin2008andisanticipatedtocompletein2010.The118,000gsfLKCbuildingwillhouseaconferencecenter,classrooms,studentstudyandsocialareas,andmedicalsimulationandvirtualrealityenvironmentsonfourfloorsabovegradeandabasementlevel.TheLKCwillbeanactivehubfortheSchool,providingsupportiveenvironmentsforlearning,knowledgedevelopment,andpublicassemblywithanemphasisonaccesstoinformationresourcesthroughout.

Acornerstoneof theneweducationspacewillbetheflagshipfacilityoftheCenterforImmersiveandSimulation-basedLearning,locatedinthebasementoftheLKC. Thiscenter isexpectedtoaccomplishthefollowing:

n Provideanintegratedenvironmentforhands-onlearningofclinical,procedural,cognitiveandinter-personalskillsusingmodels,standardizedpatients,andmannequinsimulatorsaswellasvirtualandhapticallyintervenedsimulationsandsettings,

n Simulatearangeofmedicalenvironmentssuchasclinic,patientroom,intensive/criticalcareunit,de-liveryroom,neonatalintensivecareunit,emergencydepartment,andoperatingroom,

n Facilitatetheintegratedexperienceofpatientcareaswellasenablingthedevelopmentofdiscreteskills,

n Focusonmedicalstudentswhilesupportinginterns,residents,ContinuedMedicalEducation/ContinuedEducationUnits,andalliedhealthprofessionals,

n Enable learningalongacontinuumof training,beginningintheearlyyearsofmedicalschoolandcontinuingtotheseasonedpractitioner,

n Encompassevaluationaswellaseducationandtraining,and


n Supportresearchonpedagogy,newtechnologies,andhumanperformance.

Sustainability featuresofLKCarecovered in theMedicalSchoolsectionofchaptertwo.

redwood City Campus

DuetoGUPlimitationspertainingtocorecampusdevelopment,theuniversityisexploringoptionsforrelocatingcertainadministrativeandnon-academicprogramstooff-campussites, thusreservingcorecampusspaceforStanford’shighestacademicpriori-tiesandobjectives.

In2005,theuniversityacquiredtheMid-PointTech-nology Park (Mid-Point) at a cost of $78.5 mil-lion. Mid-PointisinRedwoodCity,approximatelysevenmiles fromtheStanfordcampus. The siteincludeseightbuildings(with536,569gsf)on29.4acres.Inaddition,theStanfordHospitalandClinics(SHC)acquiredanadjacentparcelwithfourbuildings(with360,000gsf)onelevenacres,currentlybeingdeveloped foroutpatientclinics. InMarch2008,theUniversityacquiredanadjacent5acreparcelofland.Thisparcelwillbeincorporatedintotheoverallcampusplan.

Redevelopmentof this sitewil lbe required, andPhaseIconstructionwillcommenceoverthenext2-5years,withPhaseIoccupancytargetedby2012.TheUniversityiscurrentlyintheearlyphasesofcampusandsiteplanning,programscoping,andconversa-tionswithRedwoodCity,withaformalapplicationexpectedtobesubmittedin2008. Therearemanyissuestobeaddressed,includingthevisionforthisnewcampus,theprogramforthecampusbuildings,traffic,environmentalandothercommunityimpacts,costsofsiteredevelopment,andphasesofredevel-opmentovertime. ConceptandSiteApprovalwasgrantedbytheBoardofTrusteesinOctober2007intheamountof$379million.Thisapprovalisbasedonanearlyestimateforafirstphaseofdevelopmentwhichisanticipatedtoincludethedemolitionoftheexistingbuildingsandapproximately558,000gsfofnewofficeandamenityspaceaswellasparkingandconnectiveelements.

Stanford University Medical Center

Toassuretheircombinedabilitytoservethecommu-nityandStanfordeffectively,theSchoolofMedicine,StanfordHospitalandClinicsandLucilePackardChildren’sHospitalarecurrentlyengagedinanentitle-

mentprocesswiththeCityofPaloAltoforrenewalandreplacementofexistingMedicalCenterfacilities.

Theentitlementprocessinvolvesrequestingrezon-ingtocreateanewhospitalzoneinPaloAltowhichwouldallowthedevelopmentofapproximately1.3millionsquarefeetofnetnewhospital,clinicandmedicalofficespace.Aspartofthisdevelopment,248netnewhospitalbedswouldbeadded.Inaddition,therevisedzoningwouldallowforanincreaseintheheightlimitofbuildingsfrom50feetupto130feet.Sincelastfall,representativesofthetwohospitals,theSchoolofMedicine,andtheuniversityhavebeenworkingtogethertomanagetheentitlementprocess.TheformalprojectapplicationwassubmittedinAugust2007andthetargetdatefortheCityCouncilhearingonthefinalenvironmentalimpactreport(EIR)andapprovaloftheDevelopmentAgreementisthefirstquarterof2009.

prograMs

Sustainability at Stanford

Stanfordiscommittedtoadvancingsustainabilityinthedesign,construction,andoperationofcampusfacilities.Increasesintheefficiencyofnewbuildings,existingbuildings,andutilitysupplyprogramsarebe-ingpursuedtoreduceStanford’suseofnon-renewableresourcesandminimizeourenvironmentalimpact.

EffectiveFebruary2008,thesustainabilitystandardsfornewbuildingswere increasedtoreduceenergydemandby30%belowtheAmericanSocietyofHeat-ing,RefrigeratingandAir-ConditioningEngineers(ASHRAE)standard90.1(2004edition),andreducewaterusageto25%belowthatofcomparableexistingbuildingsoncampus.

Successfulprogramstoreduceenergyandwateruseinourexistingbuildingsthroughminorcapitalandoperationalimprovementswillcontinue.ExamplesincludetheEnergyRetrofitProgram(ERP)that isfundedthroughreinvestedutilitycostsavingsandtheEnergyConservationIncentiveProgram(ECIP)whichprovidesfinancialincentivesforbuildingoccupantstoconserveenergy.Additionaleffortsincludemajorcapitalretrofitprojectsinbuildingswithsignificantenergyconsumptiontoreduceenergywasteandtheassociatedgreenhousegas(GHG)emissions.

Worktoincreaseefficiencyandreducetheenvironmen-talimpactofcampusutilitysupplysystemscontinues.Amajorefforttoidentifyandprioritizeoptionsfor


along-termreductionofcampusGHGisexpectedtobecompletedthisyear.ThisGHGreductionplanwillincorporatetheadvancedefficiencystandardsfornewbuildingsandimprovementstoexistingbuildingsnotedabove,pluspotentialchangestocampusenergysupplystrategiesoverthelongterm.

WorktoadvancesustainabilityalsoincludestheuseoftherecentlyfocusedandempoweredSustainabilityWorkingTeams.Theseteamsbringtogethercampusoperationsleaders,thosewithspecializedknowledgeintheseareasofsustainability,andkeystakeholderstosystematicallyexamineandimprovesustainabilityatalllevelsofStanfordcampusoperations.TheseteamsworkincloseconcertwithStanford’sSustainabilityWorkingGroup,foundedin2006,andareidentifyingandimplementingother improvementstocampusgreenbuildingpractices,includingexaminingenergysupplyandGHGprograms,wateruse,greenpur-chasing,foodservice,recycling,andtransportation,amongstothers.

TherecentlycompletedY2E2building,whichisthefirstbuildingintheSEQ2Quad,exemplifiesStanford’ssustainabilitycommitments.Thebuildingisprojectedtouse56%lessenergyand90%lesspotablewaterforfixturesthancomparablebuildings.Thebuildingalsousedflyashasaconstructionmaterial,incorporatedtheuseofrecycledsteelandrenewablewood,includeduncarpetedfloorsinmanyareas,andemployedpho-tovoltaicpanelsonportionsoftheroof.

Space Charge and Space Utilization Studies

Beginningin2007/08,Stanford’snon-formulaschoolspayachargefortheuseofofficespace.Thegoalofthespacechargeistoestablishawarenessthatspaceisnota freegoodandtoprovideanincentiveandguidelinestousespaceasefficientlyaspossible.Tooffsetthecharge,schoolswillreceivebudgetallocationsbasedonhowmuchofficespacetheyneedaccordingtothespaceguidelinesthathavebeendevelopedforthecampus.

Sincetheinceptionoftheefficiencyprogram,severalschoolshavebegunactivelypursuingoptionstoreducetheirspacecharge:

n TheSchoolofEarthSciencesis intheprocessofcompletingamasterspaceplanstudy.Thestudywillidentifyandaddressunderutilizedofficespace,planstrategiestoaccommodategrowth,andaddressspaceproblemsinthecommonareasofeachbuilding.

ThenetresultwillbeareducedspacechargeandanachievableplanforaligningtheSchool’sfacilitieswithitslong-termstrategicgoals.

n TheViceProvost forUndergraduateEducation(VPUE)isembarkingonaprojecttorenovateSweetHall. Oncecompleted,VPUEwill significantlyreduceitsspaceusagebyhousinganadditional70employeesinspacesdesignedtosupportstudents,lecturers,andstaff.SweetHallplanscurrentlyreflectthat12%oftheofficespaceswillbeprivateofficesand88%willbesharedofficesorcubicles.Thespaceswillbesizedaccordingtothespaceguidelines.Thisisamuchhigherpercentageofsharedspacethantheaverageoncampus,andisamodelforfuturecampusspaces.

n TheSchoolofHumanitiesandSciencescompleteda‘re-stack’intheMainQuadduringthesummerof2007.Inthisproject,aseriesofdepartmentalmovesorganizedwhereprogramswerehousedandbroughtmanydepartmentsintoalignmentwiththespaceguidelines.

n TheSchoolofEducationwillbeginaspacestudyoftheCubberleyBuildinginspring2008.Thegoalwillbetobetterusespace,reducethespacecharge,anddetermineifanyofthephysicalchangesneededcancoincidewiththeseismicretrofitofthebuildingplannedforsummer2009.

Inaddition to the spacecharge initiativesabove,detailedutilizationstudieshavebeenconductedforalloftheschoolsandseveraladministrativeunits.Thesestudiesprovideavaluabletoolforexaminingeachschool’suseofspace,diagnosingproblems,andproposingcorrectiveactionstobetteruseexistingspace.

Furniture and workplace Program

TheFurnitureandWorkplaceProgramatStanfordisaholisticapproachtofurnitureandworkplaceplanningattheuniversity.Theprogramemphasizesfurnitureandworkplacepracticesthatwillaccomplishthefol-lowingobjectives:

n Supporttheuniversityspaceguidelines,

n Promoteergonomicandhealthyworkenvironments,

n Maximizesustainabilityinfurniturechoices,

n Createhighquality,durable,andlong-termfurnituresolutions,


n Enableflexibility indesignsothat furniturecanbereused,moved,andchangedtomeetchangingprogramneeds,and

n LeverageStanford’soverallbuyingpowerinfurniturepurchasinginordertoachievebetterserviceandmorecompetitivepricing.

ThisnewapproachisparticularlyimportantforStan-fordatthistimebecauseoftheunprecedentedscopeoffurnitureandworkplaceprojectvolumerepresentedinthecurrent$2.8billionCapitalPlan.

Theprogramwasbasedonacomprehensivereviewthatresultedintheselectionoftwopreferredvendors.Thevendorswerechosenfortheirbroadproductport-folio,multipleservices,commitmenttosustainability,arrayofresources,adherencetotheinitiativesoftheuniversity,andcompetitivepricing.

Finally, insupportoftheuniversity’ssustainabilityinitiative, thefurnitureprogramisreviewingfourlevelsof sustainablepractices: materialsused tomanufacture furnitureproducts,certif icationsofend-products, recycled content from a post andpre-consumerperspective,andbestpracticesofthefurnitureproviders.

Theseconcepts,togetherwiththespaceguidelines,willbecometheplatformfromwhichweinitiateourworkplaceplanninginthecomingyears.

THE CAPITAL PLAn, 2008/09 – 2010/11

Stanford’scentralcampus, including theMedicalSchoolbutexcludingthehospitals,hasmorethan670majorbuildingsprovidingmorethan13milliongsfofphysicalspace.Thephysicalplanthasahistoricalcostof$4.9billionandanestimatedreplacementcostinexcessof$6billion.

TheCapitalPlanincludesaforecastofStanford’san-nualprogramsdesignedtorestore,maintain,andim-provecampusfacilitiesforteaching,research,housing,andrelatedactivities.TheplanalsooutlinesStanford’sneedsfornewfacilities.TheCapitalPlaniscompiled,reviewed,andapproved inacoordinatedmanneracrosstheuniversity. Theplancarefullybalancesinstitutionalneedsfornewandrenovatedfacilitieswithchallengingconstraintsoflimiteddevelopmententitlements,availablefunding,andaffordability.

Projects listedintheCapitalPlanmeetanyoneofthecriteriaestablishedforBoardofTrustees levelapprovalasfollows:

n Totalprojectcostof$10millionandabove,

n Newbuildingconstruction,

n Projectsthatuse5,000ormorenewsquarefeetwithintheacademicgrowthboundary,

n Changesinlanduse,and

n Projectswithmajorexteriordesignchanges.

Expendituresinthe2008/09–2010/11CapitalPlan,whichincludesmajorconstructionprojectsinvari-ousstagesofdevelopmentandnumerousinfra-structureprojectsandprograms,total$2.8billion.ThetablebelowprovidesacomparisonofthelastthreeCapitalPlans.

Budget plan year [in millions of dollars]

2006/07 2007/08 2008/09

Design/

Construction 1,083.4 1,377.4 2,068.3

ForecastedProjects 930.2 739.7 420.0

Infrastructure 211.1 252.1 280.0

Total 2,224.7 2,369.2 2,768.3

Projects in Design and Construction

ProjectsinDesignandConstructionrepresent$2.1billion(75%oftheplan). TheseprojectsareunderthepurviewoftheBoardofTrustees.Constructionoftheseprojectsiscontingentonsecuringfunding;$651.2million,or31%oftheseprojectcostsremaintobefundraisedorarefundstobeidentified.

Projectcosts inDesignandConstructionhave in-creasedby$690.9millionfrom2007/08.TheRedwoodCityCampushasmoved into thiscategory($379million).Inaddition,theGSBcampushasincreasedincostby$95millionasaresultofmoredetailedplanning.MajornewprojectsaddedtothiscategoryincludetheLawSchoolClinicsandFacultyOfficeBuilding($71.2million),MaplesParkingStructure($38.6million),StanfordAvenueFacultyHomes($33.4million),MechanicalEngineeringBuilding($14.9mil-lion),StanfordAthleticsPracticeGymnasium($14.8million),OlmstedRoadStaffRentalHousing($14.3million),theGolfClubHouse($8.7million),andtheEastCampusChildCareFacility2($5.4million).


Forecasted Projects

ForecastedprojectsarethoseanticipatedtoreceiveBoardofTrusteesapprovaloverthenextthreeyears.Theseprojectstotal$420millionandrepresent15%oftheplan.AswiththeprojectsinDesignandCon-structiondescribedabove,theseprojectsarecontin-gentonfunding. Forthisgroupofprojects,atotalof$240.5million,or57%remainstobefundraisedortobeidentified. Duetothisfundingchallenge,manyoftheseprojectsmaynotbecompletedforanumberofyears.

Projectcostswithinthiscategoryhavedecreasedby$319.7millionfrom2007/08foranumberofreasons.Firstandmostsignificantly,asmentionedabove,alargecohortofmajorinitiativesmovedintotheDesignandConstructioncategoryorwerecompleted. Atthesametime,newprojectshavebeenaddedtotheplan.TheseincludetheNewUndergraduateDiningHall($22million),theCrothers/CrothersMemorialrenovation($20million),StanfordAuxiliaryLibrary(SAL)3Phase2($14million),andtheGreenDorm($12.7million). Someoftheotherprojects inthiscategoryalsoincludeadjustedcostestimates.

Infrastructure

Stanford’songoingefforts torenewits infrastruc-turearereflectedinabudgetof$280million(10%oftotalCapitalPlanexpenditures). InfrastructureprogramsincludetheInvestmentinPlant–Main-tenanceProgram, theCapitalUtilitiesProgramsandProjects(CUP),R&DE’sCapitalImprovementProgram,BuildingEnergyRetrofitProgram,theStan-fordInfrastructureProgram(SIP),GUPMitigation,InformationTechnology&CommunicationsSystems,andtheStormDrainprojects. GUPmitigationandSIPprojectsarefundedthroughconstructionprojectsurcharges.

Infrastructurecostshaveincreasedinthisyear’sCapitalPlanby$27.9million.ThisincreaseismostlyduetotheinclusionoftheSearsvilleSubstation($23million)anda$10.9million increaseyear-over-year intheInvestmentinPlant–MaintenanceProgram.

Investment in Plant – Maintenance Program

Thisprogramincludesdeferredandplannedmain-tenanceforbuildingsubsystems.Theplannedcostsandfundingaredetailedbyareaandtotal$90.6mil-lion.Thisrepresentsathree-yearforecastofavailablefundingtoaddressmaintenanceneeds.

Capital Utilities Program and Projects

Thethree-yearplanallocatesatotalof$43milliontotheCUPprogramto improveelectrical, steam,water,chilledwater,andwastewaterutilitysystems.CapitalUtilitiesprojectsof$49millionincludeaRe-placementBoilerplant($26million)thatwillallowdecommissioningandremovaloffourexistingboilersintheCentralEnergyFacility.Additionally,thenewSearsvilleSubstation($23million)willaddresstheprojectedelectricaldemandgrowthrequirementsfortheuniversityforthenext50years.

R&DE Capital Improvement Program

TheResidential&DiningEnterprisesCapital Im-provementProgram(CIP)isintendedtoaddresslifeandhealthsafety,seismicupgrades,codecompliance,energyconservationandsustainabilitymeasures,andmajorprogrammatic improvements inthestudenthousinganddiningphysicalplant.CIPprojectsan-ticipatedoverthenextthreeyearstotal$50.9million.Theplanincludescontinuationofthecodecompli-anceupgradesofvariousRowHouses,repairstotheEscondidoVillageslabheatingsystemandutilitiesinfrastructure,aswellasarangeofbathroomreno-vations.TheCrothers/CrothersMemorialprojectisadditional to theseCIPtotals,and is listed in theForecastedprojectspage.

Building Energy Retrofit Program

Inthefirstphaseofacomprehensiveenergyreductionprogram,12ofStanford’s largestenergy-intensivebuildingswerestudiedwiththegoalofenergycon-sumptionreductions.Thebuildingsstudiedrepresent$13millionofenergyexpensesperyear,ornearly26%ofthetotalcampusenergyexpense.Thestudiesresultedinenergyretrofitprojectsthatareinvaryingstagesofimplementation.

Thetableonthenextpagesummarizesthestatusoftheseprojectsandearlyresults.

Astheseprojectsarecompletedorunderway,thenextgroupofbuildings isbeingselectedfortheenergyretrofitstudiesandimplementationprogram.Thiswillentailanadditionalreviewof13buildings,whichtogetherconsume$7.6millioninenergyeachyear,oranadditional15%ofStanford’stotalenergyusage.

Stanford Infrastructure Program (SIP)

TheSIPconsistsofplanningandtransportationproj-ectsandprogramsfortheimprovementandgeneralsupportof theuniversity’sacademiccommunity,


hospitals,andphysicalplant. SIPexpendituresareexpectedtototal$12.3millionoverthenextthreeyears.SIPprojectsincludetheconstructionparkingstructures,campustransit improvements,parkinglotinfrastructureimprovements,siteimprovements,landscapedesignandenhancements,bicycle,cartandpedestrianpaths,lighting,signage,andoutdoorart.Medium-termdebtmaybeusedtobridgetimingdifferencesbetweenthecollectionofthefeeandthescheduledexpenditures.

GUP Mitigation

TheCapitalPlanprovidesfor$10millionincapitalexpendituresformitigationmeasuresrequiredbytheGUPandCommunityPlanapprovedbySantaClaraCountyinDecember2000.Fundingisgeneratedbyaninternalfeeleviedoncapitalprojectsthatincreaseschool/departmentcampusspaceallocations.

Information Technology and Communication Systems

Atotalof$9.7millionhasbeenallocatedforupgradestonetworkandcommunicationsystems.

Storm Drains

Theongoingstormdrainprogramincludesprojectsfor installingdetentionfacilitiesthatwillmitigateincreasedpeakflowrunofffromdevelopmentoftheWestCampus,projects to rechargegroundwater,andprojects to improveminordrainagedeficien-ciesandrestorecapacityintheexistingstormdrainsystem.Inaddition,newstormwaterqualityregulationsrequiresitedesignmeasuresandnewrunofftreatment

facilities tominimizecontaminationconveyedtonaturalwaterbodiesfromsmallstorms.

Other Stanford Entities

Inanefforttopresentacomprehensiveviewofallplannedconstructiononcampus,thecapitalplan-ningprocesshasincludedLBRE’sRealEstatedivision,StanfordHospitalsandClinics(SHC),LucilePackardChildren’sHospital(LPCH),andtheStanfordLinearAcceleratorCenter(SLAC).AlthoughtheCapitalPlantablesattheendofthissectiondonotincludetheseotherentities(withtheexceptionofStanfordAvenueFaculty/Staffhousing),wehaveincludedbriefdescrip-tionsoftheircapitalprogramsbelow:

Real Estate Division

Faculty and Staff Housing – TheRealEstatedivisioncontinuestocoordinatetheplanningandjurisdictionalapprovalsfornewrentalandfor-salehousingunitsforfacultyandstaffoftheuniversity.StanfordAvenueFaculty/Staffhousingisnowbeingplanned,whichwilladdlow-density,single-familyattachedhomesnearElCaminoReal.TheseunitswillhelpmeetGUPentitlementhousinglinkagerequirements.

Stanford Research Park –TheResearchParkcontinues tobeadesirable location foravarietyofcorporations,creatingadynamicenvironmentthroughoutboomandbustrealestatecycles.Newdevelopmentsincludea460,000squarefootcampusattheintersectionofFoothillExpresswayandHillviewAvenuewhichisnowfullyoccupiedbyVMware.Inaddition,theRealEstatedivisionisnearingcompletion

Building energy retrofit prograM EstimatedAnnualProject RetrofitStatus ConsumptionSavings

StaufferI–Chemistry Complete 35%-40%

Gordon&BettyMooreMaterialsResearch Complete 11%

PaulAllenCenterforIntegratedSystems(CIS) Complete 11%

Forsythe(George)Hall Complete ToBeDetermined

StaufferII-PhysicalChemistry Underconstruction ToBeDetermined

GatesComputerScience Underconstruction ToBeDetermined

BeckmanCenterforMolecularandGeneticMedicine Planning(50%constructiondocuments) ToBeDetermined

GilbertBiologicalSciences Planning ToBeDetermined

CenterforClinicalSciencesResearch(CCSR) UnderStudy ToBeDetermined

LucasCenter UnderStudy ToBeDetermined

CantorCenterforVisualArts UnderStudy ToBeDetermined

HerrinHall–Biology Cancelled–PlannedDemolition


ofanew75,000squarefootbuildingforSAP,anotherimportantResearchParktenant.Underarecentlyap-provedlandusedevelopmentagreement,knownastheMayfieldAgreement,theRealEstatedivisionwillbemasterplanningtheconversionofsomecommercialsitesontheedgesoftheResearchParktoresidentialsitesbytheyear2013,whentheunderlyinggroundleasesexpire.

Sand Hill Road Hotel/Office Building –Devel-opmentisprogressingonthis21-acreproject,withbuildingconstructionwellunderway.Constructiononauniversity-funded,120-roomhotelbeganlatespring2007.TheuniversitycontinuestoworkwithRosewood,thehoteloperator,onpre-openingactivities.Officeleasingonthedonor-funded100,000squarefootof-ficebuildinghasexceededoriginalexpectations,with75%oftheofficespacenewlyleasedatattractiverates.Thebalanceoftheofficespaceisalsoinhighdemandwithseveralinterestedprospectivetenants.Boththeofficeandthehotelareexpectedtobecompletedbyspring2009.

SHC and LPCH

Forinformationaboutthehospitals,pleaserefertotheearliersectioninthischapterunderStrategicInitiativesandStanfordUniversityMedicalCenter.

SLAC

ForSLAC,thecapitalplanningfocusisonthecon-structionof theLinacCoherentLightSource,anextensiveprojecttotaling$315million,fundedbytheDepartmentofEnergy.Theprojectiswellunderway,andwillbecompletedin2009.Theprojectincludesexperimentalhalls,beamlineandundulatorfacilities,andservicebuildings.

Overall Summary

Asummarytableofthe2008/09-2010/11three-yearCapitalPlanappearsonthenextpage.

Todifferentiatebetweentheestimatedcostsofthethree-yearCapitalPlanandtheforecastedspendingtocompleteitsprojectsandprograms,anadditionaltable,CapitalPlanCashFlows,isincludedalongwiththeCapitalPlanSummary.ThistableforecaststheexpenditureoutflowoftheCapitalPlanbasedonproj-ectandprogramschedules.IncludedareprojectsandprogramsinDesignorConstructionoranticipatedtoreceiveBoardofTrusteesapprovalinthenextthreeyears.Relatedcashexpendituresareanticipatedtobespentoveraperiodextendingbeyond2013/14.

Operating(includingutilities),maintenance,anddebtservicecostswill impactthebudgetoncetheconstructionissubstantiallycomplete.AlthoughtheCapitalPlanSummaryshowsthefullbudgetimpactofallcompletedprojects,itisimportanttonotethatthisimpactalignswiththeprojectcompletionscheduleandwillbeabsorbedbythebudgetoveraperiodinexcessofsixyears(beyond2013/14).TheCapitalPlanImpactonBudgettablehasbeenincludedalongwiththeCapitalPlanSummaryandCapitalPlanCashFlowstoforecastthebudgetimpactbyareaofresponsibility(e.g.generalfunds,formulaschools,etc.).

ThetablesattheendofthissectionprovideadetailedlistoftheprojectsincludedintheCapitalPlan.TheCapitalPlantablesdonotincludethecapitalprojectsoftheStanfordHospitalsandClinics(SHC),LucilePackardChildren’sHospital(LPCH),theRealEstatedivision(withtheexceptionofStanfordAvenueFac-ulty/Staffhousing),orSLAC.ThetextsummarizestheseprojectsinordertopresentacomprehensiveviewofallplannedconstructiononStanfordlands.

Thefollowingsectionaddresses theCapitalPlan’sfunding sources ; the uses of funds by programcategory(e.g.,Academic/Research,Housing,etc.)andbyprojecttype(e.g.,newconstruction,renovation,etc.),projectsplannedbyotherStanfordentities,andresourceconstraints.

Capital plan funding sourCes

Asthechartonthefollowingpageshows,Stanford’sCapitalPlanreliesonseveralfundingsources:cur-rentfunds(whichincludetheCapitalFacilitiesFund),gifts,debt,andother(whichrepresentanticipatedfundsfromtheCaliforniaInstituteofRegenerativeMedicine).Dependinguponfundraisingrealitiesandtimeframes,someprojectswillprovemoredifficultthanotherstocomplete. Asaresult, it ispossiblethatsomeprojectswillhavetobecancelled,delayed,orscaledbackinscope.Asillustratedinthechart,29%of theplan isanticipated tobe funded fromgiftsinhandorpledgedand17%isfromgiftstoberaised,foratotalof46%.Thisisconsistentwithlastyear’strend,where48%oftheplancamefromthesefundraisingcategories.

uses of funds By prograM Category

Asthechartonthefollowingpageshows,theCapitalPlanisdividedintothefollowingprogramcategories:Academic/Research,Housing,Athletics /Student


Capital plan iMpaCt on Budget [in millions of dollars] 2013/14&

2009/10 2010/11 2011/12 2012/13 Thereafter Total

Debt Service

GeneralFunds 0.2 2.0 3.4 2.0 7.7

FormulaandOtherSchools 1.3 1.9 5.7 8.9

Auxiliary 12.0 1.6 1.7 15.3

ServiceCenter 1.3 1.4 1.5 3.2 7.4

TotalDebtService 14.9 6.9 12.3 5.3 39.3

Operations and Maintenance

GeneralFunds 1.2 5.8 4.7 12.2 4.2 28.1

FormulaandOtherSchools 6.7 4.6 11.3

Auxiliary 3.2 0.6 0.1 3.9

ServiceCenter

TotalOperationsandMaintenance 4.4 13.0 9.3 12.2 4.4 43.3

Capital plan Cash flows [in millions of dollars] 2007/08& 2013/14&

Prior 2008/09 2009/10 2010/11 20011/12 2012/13 Thereafter Total

ProjectsinDesign&Construction 415.3 562.0 507.8 210.3 270.3 97.1 5.5 2,068.3

ForecastedProjects 9.7 35.9 110.3 200.9 59.9 3.3 420.0

TotalConstructionPlan 424.9 597.9 618.1 411.2 330.2 100.4 5.5 2,488.3

InfrastructurePrograms 82.2 74.3 76.0 7.4 26.5 13.6 280.0

TotalThree-YearCapitalPlan2008/09-2010/11 424.9 680.2 692.4 487.2 337.6 126.9 19.1 2,768.3

suMMary of three year Capital plan 2008/09–2010/11[in millions of dollars]

ProjectFundingSource AnnualContinuingCosts

Gifts UniversityDebt

Service

Estimated Capital Center/ Resources Operations,

Project Budget Current InHandor ToBe Auxiliary Academic ToBe Debt Maintenance

Cost 2007/08 Funds1 Pledged Raised Debt Debt Other2 Identified3 Service &Utilities

ProjectsinDesign&Construction 2,068.3 562.0 361.2 699.2 263.7 118.6 198.0 40.0 387.5 23.7 38.0

ForecastedProjects 420.0 35.9 75.0 91.0 204.3 13.5 36.2 0.9 5.3

TotalConstructionPlan 2,488.3 597.9 436.2 790.3 468.1 132.1 198.0 40.0 423.7 24.6 43.3

InfrastructurePrograms 280.0 82.2 112.9 147.4 19.7 14.7

TotalThree-YearCapitalPlan

2008/09–2010/11 2,768.3 680.2 549.1 790.3 468.1 279.5 217.7 40.0 423.7 39.3 43.3

1 Includesfundsfromuniversityandschoolreserves,andtheGUPandSIPprograms. 2“Other”fundsrepresentgovernmentandgrants.


the Capital plan 2008/09 – 2010/11: $2,768.3 Million

ServiceCenter/AuxiliaryDebt

10%

AcademicDebt8%

GiftstobeRaised17%

Other1%

CurrentFunds20%

ResourcestobeIdentified15%

GiftsinHandorPledged

29%

Athletics/Student

Activities1%

Infrastructure12%

Housing12%

AcademicSupport

15%

Academic/Research60%

SOUrCES OF FUnDS USES OF FUnDS BY PrOGrAM CATEGOrY

debtservicefordebtbackstoppingthereceiptofgifts).Ofthisamount,$7.7millionwillbeservicedbygeneralfunds,$22.7millionbyauxiliaryorservicecenteroperations,and$8.9millionbyformulaschools(theGSBandtheSoM).

Theadditionaloperations,maintenance,andutilities(O&M)costsexpectedatthecompletionofallprojectscommencinginthethree-yearperiodtotal$43.3mil-lionperyear.Ofthisamount,$28.1millionwillbeservicedbygeneralfunds,$3.9millionbyauxiliaryandservicecenteroperations,and$11.3millionbytheformulaschools.

Generalfundspayaportionofthedebtserviceoncapitalprojects,aswellaspayingO&Mcosts.Thesecapital-relatedcostscompetedirectlywithotheraca-demicprograminitiatives. ThecurrentforecastforthegeneralfundsportionoftheConsolidatedBudgetforOperationsincludestheseprojectedcosts.

Debt Capacity

AsofFebruary2008,theuniversityhadapproximately$387millionofdebtavailabletosupportcapitalproj-ects, including$241millionoftaxablecommercialpaper,$92millionoftax-exemptcommercialpaperand$54millionofunexpendedbondproceeds.Theuniversity increasedthetaxablecommercialpaperprogramto$350millioninFebruary2008andisintheprocessofincreasingthetax-exemptcommercialpaperprogramby$150millionto$300million.Anadditional$82millionwillbecomeavailablethroughfiscalyear-end2008/09frominternalamortizationondebt-fundedprojects.

Activities,AcademicSupport,andInfrastructure.Themajorityofthisyear’sCapitalPlanfundsareallocatedtoacademic/researchprogramsat60%,comparabletolastyear’sCapitalPlanat57%.

uses of funds By projeCt type

Asthefollowingchartshows,projectsalsocanbeanalyzedasfollows:newconstruction,renovation,orinfrastructure.ThevastmajorityoftheCapitalPlan’sprojectsfallintothenewconstructioncategory(80%consistentwithlastyear’splanat81%).

Capital plan Constraints

Affordability

Theincrementalinternaldebtserviceexpectedatthecompletionofallprojectscommencinginthethree-yearplanperiod(completiondatesrangefrom2007/08to2014/15)totals$39.3millionannually(excluding

2008/09 – 2010/11uses of funds By projeCt type: $2,768.3 Million

Infrastructure12%

Renovations8%

NewConstruction

80%


Atotalof$605millionofpermanentdebtwillberequiredtofinance:

n $409milliontocompleteprojectsalreadyapprovedorunderconstruction,

n $90millionforprojectsforecasttobeapprovedin2008/09,and

n Upto$106millionremainstofinanceconstructionontheSandHillRoadHotelandofficebuildings.

AdditionaldebtfundingwillberequiredtofinancetheFacultyandStaffHousingprogram.Theportfolioofdebt-subsidizedmortgagesincreased$28millionin2007and$10millionyear-to-dateto$301million.Risingrealestatepriceswill continue to fuel thedemandforthesubsidizedloanprograms.

Projectsidentifiedinthethree-yearCapitalPlancom-mencingafter2008/09willrequireanadditional$141millioninpermanentdebtand$500milliontobridgetimingdifferencesbetweengiftreceiptsandcapitalexpenditures. Thedebt for theseprojectshasnotbeencommittedandwillbeevaluatedinthecontextofdebtcapacity,affordability,andtheviabilityofthefundingplanandGUPlimitations.

Totaluniversitydebtoutstandingatfiscalyearend2007was$1.4billion.Thepro-formaleverageratioisincompliancewiththeuniversity’sdebtpolicy.

Entitlements

TheStanfordcampuscomprises8,180acres,whichfallwithinsixjurisdictions.Ofthistotal,4,017acres,includingmostof thecentralcampus,arewithinunincorporatedSantaClaraCounty.

InDecember2000,SantaClaraCountyapprovedaGeneralUsePermit(GUP)thatallowsStanfordtoconstructupto2,035,000additionalgsfofacademic-relatedbuildingsonthecorecampus.TheGUPalsoallowstheconstructionofupto2,000newstudenthousingunitsandover1,000unitsofhousingforpostdoctoralfellows,medicalresidents,faculty,andstaff.

Conditionsofapprovalincludethefollowing:

n Thecreationofanacademicgrowthboundarytolimitthebuildableareatothecorecampus.

n Theapprovalofasustainabledevelopmentstudybeforenewconstructionisdevelopedbeyondonemilliongsf.

n Theconstructionof605unitsofhousingforeach500,000gsfofnewacademicbuilding.

GiventhestringentrequirementsimposedbytheGUPandtheincreasinglydifficultentitlementenviron-ment,Stanfordcarefullymanagestheallocationofnewgrowth.WeoriginallyprojectedthatourGUPsquarefootageallocationwouldbeexpendedover15yearsatanaveragerateofapproximately135,000gsfperyear. Fundingconstraintshaveslowedthisprojection. TheCapitalPlan includes706,857gsfofnewGUPsquare feet currently inDesignandConstructionand105,610netnewGUPsquarefeetinforecastedprojects.Inaddition21,000newGUPsquarefeetisshownintheInfrastructurecategory,forthereplacementboilerplant.Thesesquarefootageamounts,alongwithgsfpreviouslyallocated,bringthetotalGUP2000gsfexpendedorcommittedtoapproximately833,000.Thisforecastcouldchangeovertime,anditpresumesfundingsourceswillbeavailableasforecasted.GivenfundingchallengesandcloserscrutinyoftheexpenditureofGUPsquarefeet,webelievethecurrentGUPallocationwilllastuntil2025.ThestrategicmovementofadministrativeofficespacetotheRedwoodCitycampuswillalsohelptoconserveGUPsquarefootageforacademicprioritiesonthemaincampus.

Withregardtothehousingrequirementlistedabove,theMungerGraduateResidencesareplannedtoadd600netnewgraduatestudentbeds.WiththeconstructionoftheMungerresidencesandwiththeotherhousingprojectslistedintheCapitalPlan,Stanfordwilladdatotalof1,210netnewgraduatestudentbedssinceapprovaloftheGUP.ThiswillenabletheUniversitytoconstructupto1,499,999gsfofnewacademicspace,consistentwiththeGUPrequirements.

CAPITAL PLAn PrOJECT DETAIL

TablesshowingthedetailsforprojectsintheDesignandConstruction,Forecasted,andInfrastructurecategoriesfollowonthenextthreepages.


2008

/09–

2010

/11

Ca

pit

al p

lan

p

ro

jeC

ts

in d

esi

gn

& C

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n

[in

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ectF

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e

Annu

alC

ontin

uing

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t

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Un

iver

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Deb

t

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ar

Estim

ated

Ca

pita

l

InH

and

Se

rvic

eCen

ter/

Re

sour

ces

Op

erat

ions

,

Sc

hool

/Pr

ojec

tP

roje

ct

Bud

get

Curr

ent

o

rTo

Be

Aux

iliar

y

Acad

emic

tob

eD

ebt

Mai

nten

ance

D

epar

tmen

tSc

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le

Cost

20

08/0

9Fu

nds1

Pled

ged

Rais

ed

Deb

tD

ebt

Othe

r2 Id

entifi

ed3

Serv

ice

&U

tiliti

es

Sci

ence

,Eng

inee

ring

and

Med

ical

Cam

pus

(SEM

C)

Proj

ects

(4)

S

tanf

ord

Inst

itut

eso

fMed

icin

e#1

SO

M

2008

-10

201

.5

85.

0

26.

8

80.

5

49.

2

5

.0

40.

0

0

.3

4.3

Sch

oolo

fEng

inee

ring

and

Nan

oC

ente

rs

SOE

2005

-10

192

.7

100

.8

39.

4

103

.4

25.

0

2

5.0

1

.7

4.4

Lea

rnin

gan

dK

now

ledg

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ente

rSO

M

2006

-10

144

.2

53.

0

72.

4

24.

4

29.

4

1

8.0

1

.2

2.4

Bio

engi

neer

ing

/Che

mic

alE

ngin

eeri

ng

SOE

2005

-13

136

.9

1.0

5

.0

49.

5

52.

4

3

0.0

2

.0

2.6

Bio

logy

H

&S

2009

-11

114

.6

8.0

5

.0

56.

5

38.

0

1

5.0

1

.0

3.1

Con

ting

ency

5

.0

1.0

5.0

R

edw

ood

Cit

yC

ampu

sM

aste

rPl

anP

hase

1

PRES

/PR

OV

20

08-1

23

79.0

1

1.4

3

79.0

8.9

G

radu

ate

Scho

olo

fBus

ines

s-

New

Cam

pus

and

Park

ing

Stru

ctur

eG

SB

2006

-11

370

.0

99.

9

45.

0

226

.6

23.

5

7

5.0

5

.1

4.6

M

unge

rG

radu

ate

Res

iden

ces

(600

uni

ts)

R&

DE

2005

-09

227

.0

72.

7

96.

5

50.

5

8

0.0

5.3

3

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G

radu

ate

Hou

sing

($1

70.5

)

Und

ergr

ound

Gar

age

(122

7sp

aces

)($

35.0

)

E

nabl

ing

Proj

ects

($2

1.5)

La

wS

choo

lClin

ics

and

Facu

lty

Offi

ceB

uild

ing

SLS

2008

-11

71.

2

15.

0

2

3.0

1

8.2

30.

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2.0

1

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Map

les

Park

ing

Stru

ctur

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2008

-09

38.

6

19.

3

3

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5.0

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Stan

ford

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nue

Facu

lty

Hom

es(

39u

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2008

-11

33.

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5

33.

4

Jo

hna

ndC

ynth

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ryG

unn

(SIE

PR)

Bui

ldin

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20

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93

2.0

2

1.0

0

.5

29.

5

2.1

0.7

Pa

nam

aM

allR

enov

atio

ns

D

uran

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nPh

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2.5

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.1

22.

5

Pet

erso

nR

enov

atio

n-

Des

ign

Inst

itut

eSO

E20

08-1

01

7.9

3

.8

2.9

1

5.0

M

echa

nica

lEng

inee

ring

(B

uild

ing

630

Rep

lace

men

t)

SOE

2007

-10

14.

9

10.

6

14.

9

0

.3

Stan

ford

Ath

leti

csP

ract

ice

Gym

nasi

um

DA

PER

20

08-0

91

4.8

1

2.6

14.

8

0.1

O

lmst

edR

oad

Staf

fR

enta

lHou

sing

(22

uni

ts)

DA

PER

20

08-0

91

4.3

1

3.6

14.

3

0.2

Pu

blic

Saf

ety

Bui

ldin

gPR

ES/P

RO

V

2006

-10

9.3

4

.7

0.8

8.5

0.2

G

olf

Clu

bH

ouse

,Pro

Sho

p,C

artB

arn

DA

PER

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Documents

Capital Budget and 3-Year Capital Plan section 4 capital ...bondholder-information.stanford.edu/pdf/BudBk_2008-09_sec4.pdf · Capital Budget and 3-Year Capital Plan 59 Central CFF