Policy Number: Policy Name: Capital Development Plan

Transcription

1 Page Capital Development Plan A. Applicability: The Capital Development Plan Phase will be used for those projects meeting the requirements as previously defined in this chapter. B. Schedule: 1. Each university shall submit an annual Capital Development Plan for the upcoming 12 month period in accordance with the calendar approved by the president of the board. Capital Development Plans are reviewed by the Business and Finance Committee and approved by the board 2. Projects included in the Capital Development Plan are generally carried forward from the previously approved Capital Improvement Plan. 3. Amendments to the Capital Development Plan may be reviewed at regular Business and Finance Committee meetings and considered for approval at regular board meetings for projects requiring budget and/or scope increases and for new projects added outside of the regular capital development plan schedule. C. Phase Description: 1. Capital Development Plan Approval focuses on strategic planning perspective and shall be based on: a. The mission, strategic plan, and master plan of the university, and support of system-wide strategic plans and goals; b. A review of the status of projects in prior Capital Development Plans, including projects completed in the last 12 months, projects under construction, and projects not yet started.

2 Page 2 c. Advance planning such as the initial development of a facility program and/or architectural program that justifies the project; d. The total cost financing parameters, including sources and uses of funds; and e. The financing impact of the Capital Development Plan on the university s debt profile. 2. Each new project submitted for Capital Development Plan Approval shall include a concise Project Justification Report to the board. This Project Justification Report shall be developed in cooperation with the board office to ensure materials address the needs of the Business and Finance Committee and the board. The Project Justification report should justify the need for the project based upon the university s mission, strategic plan, and other supporting documentation. The Project Justification Report shall include the following information: a. Prior Business and Finance Committee and Board action b. Statutory and Policy requirements c. Project justification, strategic implications, and project compliance with mission, university and system strategic plans and goals, campus master plan and community input process. When applicable, this section may also include a review of how the project aligns with the following institutional priorities: (1.) Academic and research needs (2.) Student support requirements (3.) Operational priorities (4.) Funding sources/financing options

3 Page 3 d. Project description, scope and compliance with space standards, including the expended useful life of the project e. Project delivery method and process f. Project costs and the methodology used to develop the total project cost, including estimates prepared by professionals and comparison of cost to other similar previously approved projects and completed projects from the databases established pursuant to Board Policy 7-110B.4 (Project Construction, University Procedures), including an explanation of significant cost differences from the comparable projects g. Project status and schedule h. A fiscal impact and finance plan, which explains how the Universities intend to fund the project, and to include annual debt service and the impact to the funding sources that will pay the debt service, as well as annual operations and maintenance costs i. A backfull plan, in which Universities identify potential programs, functional uses, or non-use (e.g., demolition of a building) of the space that is released as a result of the project j. Alternatives to the project in which universities explain what alternatives to the project were investigated, and why those options were not selected. The explanation may include, but not be limited to: (1) Whether the program could be accommodated in existing space (e.g., rescheduling, more efficient use of space) (2) Whether the program could be accommodated in offcampus lease space

4 Page 4 (3) Whether the space could be constructed in partnership with the private sector k. A description of other related projects including related infrastructure improvements. l. Capital Project cost estimate m. Project site plan 3. In preparing for the Capital Development Plan submittal, the universities are authorized to expend up to 10% of the total project cost for outside professional and consultant services. Expenditures for outside services may be included in the project budget. D. University Facility/Architectural Program Procedures 1. The universities will develop procedures to specify the information requirements and process for programming the facility. 2. A facilities/architectural programmer, who has experience in translating facility users needs into space, room, and equipment requirements for similar facilities, should define the space requirements. 3. A programming committee should be established and structured to ensure that the specified program represents an appropriate tradeoff between facility users desires and a plan that maximizes value to the university. 4. The program should include information specifying space requirements, other program requirements, and special requirements. E. Authority Granted by Capital Development Plan Approval

5 Page 5 1. Capital Development Plan Approval represents board approval of the project concept, scope, total costs and financing parameters including sources and uses of funds. 2. Capital Development Plan Approval authorizes the universities to: a. Contract for necessary consulting, construction, and other applicable services to initiate and complete design, cost estimating, independent cost verification, construction documents, and enter the project construction phase. b. Proceed with project financing c. Seeking legislative review for debt-funded or third-party debt-funded projects 3. The University may transfer funds among expenditure categories in the total project budget without board approval. 4. Amended Capital Development Plan Approval is required for: a. Any project requiring reassigning or changing 15% or more of the net assignable square feet; b. Any project costs increases; c. Any increases to the parameters in the fiscal impact and financing plan presented in the project justification report; d. New projects added outside of the regular Capital Development Plan.