APS 3002 - Capital Construction Planning and Projects

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Policy Profile

Policy Title: Capital Construction Planning and Projects
APS Number: 3002
Effective: April 1, 2012 
Approved by: President Bruce D. Benson
Responsible University Officer: Vice President and Chief Financial Officer
Responsible Office: Vice President and Chief Financial Officer
Policy Contact: Director of Capital Assets, 303-860-5639
Supersedes: Developing, Requesting and Monitoring Capital Projects; Procedures for Selecting Architects and Engineers for Planning, Design and Construction Projects; and Facilities Space Inventory
Last Reviewed/Updated: April 1, 2012 
Applies to: All campuses

Policy Snapshot

Brief Description: This policy guides the process to plan, maintain, and build new facilities.

Reason for Policy: Promotes the efficient use and effective stewardship of the physical infrastructure of the university; aids in planning for facilities which support the university's teaching, research, and public service mission; and assists in compliance with state policies and statutes.  

I.  Introduction

This policy outlines procedures applicable to all campuses for the development, implementation, and management of the university’s long-range capital plan and annual capital budget.    This policy statement is designed to be responsive to the operating, regulatory, and statutory changes which have evolved since July 15, 1986.  During the 2009 and 2010 legislative sessions, new and/or modified statutory authority was given to the Colorado Commission on Higher Education, the governing boards of the colleges and universities in Colorado, and the Office of the State Architect.

II.  Policy Statement

  1. The policy on capital construction will apply to all related activities of the campuses and the Office of the President, consistent with the statutes and policies of the State of Colorado.  All campuses will design and implement a formal, continuing process for the development and maintenance of capital construction projects and campus master plans which support the mission of the university.
    1. Statutory Requirements – Annually, each campus is required to submit a board-approved, five-year capital improvement plan, and a two-year cash-funded plan to the Colorado Commission on Higher Education (Commission).  These plans shall be in accordance with a Board of Regents- and commission-approved campus master plan.   No capital construction shall commence except in accordance with an approved master plan, program plan, and design development plan except wholly cash-funded projects approved by the Legislative Capital Development Committee on the Two-Year Cash Funded Capital Program list.    Wholly or partially state-funded projects costing over $2 million also require commission program plan approval.  State-funded program plans must adhere to commission prescribed policies, procedures and standards for space utilization.  All capital construction projects costing under $2 million must be reported annually to the commission and general assembly.
    2. Campus Master Plans - Each campus shall develop its own campus master plan, prioritized capital improvement plans, and design guidelines.  The campus master plans shall encompass facility and land use plans which support the implementation of the academic role and mission.  Campus master plans, including an analysis of the effectiveness of existing space, shall be reviewed annually by the campus chancellor, or their designee, for necessary revision and review.  Master plans and amendments require chancellor, president and Board of Regents’ approval.   Master plan amendments must be approved prior to, or in conjunction with, proposed program plans which are inconsistent with the officially adopted master plan.  In accordance with the master plan, each campus is responsible for maintaining a balanced five-year capital improvement plan that takes into consideration, growth, renewal, improvement, infrastructure, environmental impact, life safety, transportation, preservation, energy impact, and operating costs.  Two-year cash-funded capital improvement plans, which may be opportunity driven, should also consider a comprehensive and coordinated academic, physical, and resource plan review.
    3. Procedures for Requesting Approval and Funding - Although the State of Colorado requests annual submissions of capital project needs, funding amounts vary from year-to-year and are directly related to the state budget situation.  Each year the director of capital assets will develop a request budget calendar with the assistance of the capital construction committee (facilities directors). The calendar shall be promulgated no later than April 15 each year and be included in the university budgeting-planning calendar. The calendar will be responsive to budget instructions issued by state agencies.  Each year at the June regents' meeting, the campuses shall submit, for approval, a prioritized state-funded capital construction request, Five-Year Plan, and Two-Year Cash-Funded List. The submission shall be in accordance with the current budget instructions issued by state agencies, as available, and the university vice president and chief financial officer.  Disclosure will be in the form of general narrative supporting the campus request priorities and in the completion of system budget format materials.  Following receipt of the campus requests, the director of capital assets will develop, for president and regent consideration, the vice president's recommendation for university-wide state capital construction request priorities.  Each campus will submit annual controlled maintenance requests in accordance with the Office of the State Architect guidelines.  These requests will also be forwarded to the director of capital assets.
    4. Campus Capital Projects Process
      1. Project Initiation. Initial proposal, evaluations, re-evaluations, and initial endorsement by the chancellor-designated campus administrator (university officer).
      2. Concept Development.Initial programming and fiscal planning to include first approximations of scope, location, size, configuration, budget, schedule, conformance with campus master and academic plans, the campus five-year plan and/or two-year cash-funded plan, university and commission requirements, land use, access, and related issues.  Chancellor authorization is required prior to the development of a formal program plan.
      3. Program Plan and Fiscal Plan Development.  All projects costing over $2 million require program plan approval by the Board of Regents per the Board of Regents Laws Article 13The program plan shall define a project's functional interior and exterior requirements, including space sizes, contents, activities and relationships in response to the needs of the user.  A project program plan will serve as a source of information about the project, and as a basis for design and the fiscal plan.  Program plans shall be developed in accordance with university and/or commission formats, standards, criteria, and timetables.   Any mixed-funded project, including state funds, will be treated as a state-funded project and must meet commission program planning guidelines.  Cash-funded projects must abide by university guidelines for program planning per Appendix 1 – University Funded Projects – Program Plan Requirements.  The fiscal plan must be certified by the appropriate campus budget/fiscal officer before submission to the Office of the President.  If borrowing or revenue bonds are involved, the university treasurer must develop or certify the financing package. The fiscal plan must demonstrate that the campus has the financial capacity to pay for the project, including the debt service, if applicable, as well as any new net operating costs such as operations and maintenance; utilities and energy; and renewal (life-cycle). 
      4. Project Design. Each campus chancellor or their delegate is responsible for the contracting of all design professionals in accordance with state statute and Appendix 2 –Selecting Architects and Engineers.  Project design shall adhere to SB07-051 High Performance State Buildings, and campus design guidelines and construction standards.  Project design is subject to the University Design Review Board review and approval outlined in Appendix 3 – Design Review Board.  Decisions by the Design Review Board may be appealed to the president through the director of capital assets.  Plan review and building code responsibilities shall be clearly defined by the campuses and adhere to the policies or delegation authority of the Office of the State Architect.
      5. Project Construction.  Each campus chancellor or their delegate shall be responsible forconstruction contracts in adherence with the university policies on contract authority, procurement, and state statutes.  The campus shall administer projects according to the delegated authority granted by the Office of the State Architect and established campus procedures for construction. Code compliance and documentation must meet or exceed minimum state standards.  The project shall comply with the high performance standard certification program established pursuant to Section 24-30-1305, C.R.S.
    5. University-wide Planning/Coordination - A university-wide capital construction committee (facilities directors) is charged with advising the director of capital assets on matters regarding facility construction, maintenance and operations, sustainability and providing technical assistance between campuses.  The committee shall be comprised of a representative from each campus (designated by each chancellor) and the director of capital assets (chair). The committee should meet on a quarterly basis to discuss processes, priorities, problems, technical matters and other issues related to campus planning and facility management. 
    6. Capital Construction Monitoring and Reporting - New legislation has allowed the university to streamline project approvals placing more emphasis on project reporting and documentation.  Campuses are responsible for the following reports:
      1. Project Documentation and Project Status Report – Project documentation as required by the Office of the State Architect, campus policies, and the university policy on record retention shall be kept by the campus.  Each campus will provide, on a quarterly basis, a project status report.  “Projects” reported on this form will include all activities defined as capital construction by this policy.  The quarterly report will be submitted to the Board of Regents Capital Construction Subcommittee.
      2. Facility Space Inventory - The campus must maintain an accurate physical space inventory of all buildings it owns or leases per Appendix 4 – Facility Space Inventory.
      3. Annual and Miscellaneous Reporting – Annual reports required by state statute, the Office of the State Architect and the Colorado Department of Higher Education shall be coordinated through the system office.  Requests for specific facility-related data may come from the Colorado General Assembly, the Colorado Department of Higher Education, or the federal government.  Campuses should notify and copy the director of capital assets of these requests.

III.  Definitions

  1. For the purposes of this policy, capital construction is defined according to Section 24-30-1301 C.R.S. Capital construction projects arise out of the university's need to create, expand, relocate, or alter a program due to growth, advances in technology, or changes in methods of program delivery. Projects addressing physical space requirements needed to accommodate particular functions, such as those traditionally included in facility programs, constitute program-driven requests and therefore are considered to be capital construction projects.
  2. Controlled maintenance is defined according to Section 24-30-1301(2a) C.R.S.  Controlled maintenance projects arise out of the deterioration of a facility's physical and functional condition and the inability to comply with current codes. These are defined as maintenance-driven requests, as opposed to program-driven requests that constitute capital construction projects.

IV.  Related Policies, Procedures, Forms, Guidelines and Other Resources