Capital Project Planning Process

Transcription

1 Capital Project Planning Process

2 Capital Planning Overview The planning process overview presented in this document combines work being conducted by both Physical and Capital Planning and Physical Facilities organizations, and University-level committees including the Capital Coordinating Committee (C 3 ) and the Capital Projects Council (CPC). Capital Planning is the process of master planning facilities that are safe, functional, and meet the vision of the campus. This process entails preplanning of new facilities, renovations of existing facilities, and the evaluation of new uses of university lands. These processes are guided by the University Master Plan and the University Strategic Plan that are both approved by the President and Board of Trustees. Typically our processes begin with the Office of Physical and Capital Planning which is responsible for: Implementation of campus master plans and capital project planning process Facility and infrastructure planning Investment and reinvestment in campus facilities Alignment of capital investments with the strategic plan and master plan The internal capital project planning process involves (1) a biennial (once every two years) process to establish the ten-year capital plan, and (2) an annual process to develop a repair and rehabilitation (R&R) and infrastructure plan. Purdue s capital project approval processes, including new construction, facility renovation, leases, and property acquisition are governed by State statute and the Bylaws of the University. There are a variety of funding sources that are utilized when investing and reinvesting in Purdue s physical infrastructure, including both State and non-state resources. State resources are almost always directed toward academic (instruction and research) facilities, including infrastructure and utilities. Non-State resources (gifts, departmental funds, sponsored funds, facility and administrative cost recovery, and interest income) cover facility needs such as athletics, housing and food services (HFS), parking, auxiliaries, administrative, and supplement academic facility needs. Because of the wide array of projects and funding sources, non-state resources are a large and rapidly growing source. Non-State projects are driven many times by targets of opportunity created by rapidly evolving funding availability or programmatic requirements. The capital planning process needs to be flexible. The Capital Projects Council guides the capital project planning process by reviewing all types of capital projects proposed by the various campus units when the project involves new uses of University lands for the construction and renovation of academic, administrative, and auxiliary facilities, as well as those to be constructed or financed by Purdue Research Foundation on behalf of the University. 2 P age

3 While capital projects can be proposed at any time, it is expected that a majority of facility needs will be identified for the biennial capital request when updates are made to the system-wide tenyear capital plan. Governance Capital Project Planning Oversight The preplanning of all capital projects is the responsibility of the Physical and Capital Planning Office working with the CPC. The CPC retains authority for facility additions, renovations, and/or capital improvement projects estimated to cost more than $2 million, new uses of University lands and all proposals for new construction. Facility additions, renovations, and/or capital improvement projects estimated to cost $2 million or less (consistent with the Board of Trustees delegated levels of authority), sculptures, monuments, exterior artwork, memorials, or other site features have been delegated to the Capital Coordinating Committee (C³). Projects costing less than $50,000 have been delegated to the Vice President for Physical Facilities. Office of Physical and Capital Planning The Physical and Capital Planning Office is comprised of the positions responsible for: Campus Master Planning Capital Planning Process (C 3 & CPC) Capital Resource Planning Capital Planning Approval Process (Board of Trustees (BOT) & State) Legislative Liaison for Capital Projects Campus Design Standards Oversight of the Capital Internal Loan Program Coordination of Property Acquisition Capital Projects Council Membership in the CPC is by position and includes the following positions: President (Chair) Executive Vice President for Business and Finance, Treasurer Executive Vice President for Academic Affairs, Provost Senior Vice President for Business Services and Assistant Treasurer Senior Vice President for External Relations Senior Vice President for the Purdue Research Foundation Vice President for Research Director of Strategic Planning and Assessment Vice President for Physical Facilities Director of Physical and Capital Planning In addition to the council, four University committees are charged with the responsibility to conduct more in-depth reviews of project applications and make specific recommendations to the CPC. These committees include: 3 P age

4 1. Capital Coordinating Committee (C3) The C 3 is tasked with meeting with Deans, Vice Presidents, and Chancellors on a biennial basis to understand key facility needs, review individual capital project applications prior to CPC review to ensure consistency with the Campus Master Plan, analyze site-related issues for all projects, and review/develop financial projections and business models to ensure the long-term sustainability of proposed projects. Executive Vice President for Business and Finance, Treasurer Executive Vice President for Academic Affairs, Provost Vice President for Physical Facilities Director of Physical and Capital Planning Director of Space Management and Academic Scheduling University Architect University Senate Representatives Vice Provost for Academic Affairs Senior Dean Research Designee Director of Campus Master Planning Director of Physical Facilities Financial Affairs R&R Manager University Engineer Director of Sustainability 4 P age Positions marked with this symbol are members of the Capital Projects Council 2. Visual Arts Committee (VAC) This subcommittee of the University Resources Policy Committee (URPC) of the University Senate is responsible for studying, promoting, and fostering a heightened cultural atmosphere on campus through the visual arts. It shall plan and develop a program of acquisition, maintenance, and display of arts and artifacts for the University that will create an atmosphere in which aesthetic appreciation of diverse kinds will be fostered among students, staff, and citizenry. This VAC will review all art projects and site features submitted for CPC review. Its members include: Nine faculty members Ex officio, head of Rusty Rueff School of Visual and Performing Arts A representative of the University Libraries A representative of the Purdue Memorial Union A representative of the Student Union Board A representative of the Facilities Planning Department Three representatives of the Student 3. Architecture, Landscape Design and Planning Committee (ALDPC) This subcommittee of the URPC of the University Senate is involved in the following capital related activities:

5 Master Planning: a. Periodically review the master plan including land use, facility location, access, circulation systems, transportation, outdoor space, and utility systems. b. Review plans for proposed new facilities for conformance to the master plan. c. Evaluate and recommend changes to the master plan. d. Provide guidance to the vice president for physical facilities on the physical master plan as it affects the academic mission of the University and the quality of life for students, faculty, and staff. Design Criteria: a. Review general design criteria. b. Evaluate and suggest alternatives where appropriate. c. Advise the Office of Physical and Capital Planning and the Vice President for Physical Facilities on matters of building and landscape design concerns from the user s viewpoint. d. Periodically review overall campus appearance and make recommendations for improvements. e. Communicate the results of reviews and recommendations to other University committees including the Parking and Traffic Committee. Special Advice: a. Assist the Office of Physical and Capital Planning and Vice President for Physical Facilities in providing appropriate information to the Development Office for fundraising projects. b. Review the biennial capital construction on request for conformance to the academic mission of the University and the master plan. c. Upon request from the Office of Physical and Capital Planning, provide advice on matters relating to architectural and landscape design and planning. 4. Sustainability Planning and Assessment Committee The University Senate approved the establishment of the Committee for sustainability Planning and Assessment, a subcommittee of the University Resources Policy Committee (URPC): To be composed of representatives of the student body and members of the Purdue faculty and staff. To have five year goals to advance the sustainability of the university. The Office of Physical and Capital Planning will be responsible for implementation of the actions of the CPC with the assistance of areas reporting to the Vice President for Physical Facilities. 5 P age

6 6 P age Informing the Process Biennial Ten-Year Capital Plan Development The basis for an informed capital project planning process is an awareness and understanding of the campus master planning goals, facility and infrastructure needs, and strategic goals and priorities. To inform the capital project planning process, each of the major West Lafayette campus units and regional campuses are invited every two years to present and discuss their long-range facility needs and goals with the CPC or a group of its representatives. These presentations will expand awareness and allow facility needs to be identified, discussed, and evaluated for inclusion in the University s Ten-Year Capital Plan. This process is initiated in the fall of even numbered fiscal years (example ) and will involve a presentation by Deans, Vice Presidents, and/or Chancellors of the facility issues and long-term facility plans for each major campus unit. This process identifies and collects information needed for the development of the State Capital Request (Ten-Year Capital Plan) that will be presented for the review and approval of the CPC and the Physical Facilities Committee of the Board of Trustees in the spring/summer of even numbered years (example 2014). Once approved internally the plan will then be submitted to the Indiana Commission for Higher Education (ICHE) and ultimately the State Legislature. Projects submitted during this process require CPC-1 and CPC-2 approval (see descriptions below) if they are intended to be prioritized for design/planning in the first two years of the next biennium. Projects planned in the mid- and long-term (three to ten years) should be prepared in summary and presented as part of an overall Campus/College/School or Unit plan. Annual R&R and Infrastructure Planning Process As described above, on a biennial basis the Deans, Vice Presidents, and Chancellors will identify and present their overall facility and infrastructure projects including R&R needs for their academic, research, and instructional facilities. These presentations are intended to inform the Capital Projects Planning Process for new construction, but they will also be used to develop a plan for facility reinvestment including the R&R of existing facilities. It will be the responsibility of the Office of Physical and Capital Planning and the Director of Space Management and Academic Scheduling to evaluate these R&R needs presented by the various units along with the R&R needs identified by the Component Champions to develop an overall R&R and infrastructure investment plan. This R&R and infrastructure investment plan should address R&R needs by taking into account potential risks, overall conditions of facilities, life safety issues, code changes, strategic priorities, and long-range campus needs. Individual projects costing less than $500,000 must be presented to the EVPBFT on an annual basis for review and approval. Projects identified with a project cost exceeding $500,000 will require CPC-1 and CPC-2 level review and approval, and Board of Trustee approval before proceeding. It is expected that the R&R Manager will propose projects on an annual list to the EVPBFT. Likewise, regional campuses, auxiliary enterprises, and units using departmental funds submit an annual list to the West Lafayette campus R&R Manager who, along with the Director of Physical and Capital Planning, will recommend projects for the approval of the EVPBFT. Presentations by these units, including HFS, Athletics, Recreational Sports, Purdue University Student Health Center (PUSH), Purdue Memorial Union, etc., are expected and encouraged.

7 Forms and Processes Request for Concept Approval (CPC-1) The following steps are required to initiate a new capital projects, building addition, utility infrastructure, facility and infrastructure improvements, new uses of university lands, and exterior site features: 1. The department (project sponsor) identifies a facility need (e.g., new facility, building expansion, renovation, lease or site feature) and works with its internal constituencies (faculty, directors, department heads, deans/vice presidents) to develop the project concept. If the cost of the project is projected to be less than $500,000 the project sponsor should follow a separate process initiated by a request for professional service identified on the Physical and Capital Planning website within the Capital Projects Council site. 2. For projects in excess of $500,000, project sponsors should complete the Project Concept Approval Request CPC-1 found at to initiate a review of the project idea or concept. Applications will include: a brief project description project information (sponsorship, cost estimate, type) proposed project schedule proposed source of funds relationship to mission potential site options EXCEPTION: Renovations or infrastructure projects with a project cost estimate of less than $2,000,000, regardless of the source of funds, have been delegated to the EVPBFT and will be approved as part of an annual R&R and Infrastructure Planning Process. This applies to R&R related projects for academic, administrative and auxiliary facilities. 3. Sponsoring department head, dean, or vice president approves the Project Concept Approval Request CPC-1 and forwards to the University Architect. 4. The University Architect reviews the CPC-1 application and will convene the appropriate Capital Project Council Subcommittee(s) for a thorough review of the project request. Specific deadlines for applications and the review processes are scheduled annually and posted to the Capital Projects website. 7 P age

8 Project Concept (CPC-1) Review 1. The University Architect will conduct a preliminary review of the application to determine if it includes all the required elements, involving the VAC and ALDPC as appropriate, and will advance the project to the C For facility additions, renovation and/or capital improvement projects estimated to cost $2M or less, sculptures, monuments, exterior artwork, and memorials or other site features, the C 3 will complete a review of the CPC-1 application and provide a complete review of the site, scope, budget, project cost, and funding plan. This review will include, but is not limited to, consistency with the campus master plan, consistency with the campus strategic plan, and project sustainability. 3. After this review is complete, the committee can either approve (if over $2M, approve for consideration at the next CPC meeting) or return the application to the client for adjustment. 4. All approvals delegated to the C³ will not be final until the President signs off on the meeting minutes of the C³. Project Concept (CPC-1) Approval Over $2M 1. The Director of Physical & Capital Planning will review the applications (over $2M) submitted for CPC consideration and determine which items will appear on the agenda. 2. Submitted and accepted projects will be reviewed by the CPC to determine whether to allow the project concept to proceed for project proposal review. Approval at the CPC-1 level officially earmarks the concept as a capital project but does not approve the project for consideration of the Board of Trustees. 3. If the CPC suggests modifications to the proposed application, the project application will be updated based on the instructions of the CPC. If the project requires significant modification, the client may be requested to resubmit the application at a future CPC meeting. The Department of Physical and Capital Planning is responsible for communicating modifications to the client. 4. Following CPC review, a feasibility assessment will commence by the client. Projects approved at the CPC-1 level may be considered for inclusion in the biennial capital request only if it is proposed in the mid- or long-term timeframe. Project Proposal (CPC-2) 8 P age 1. Following CPC-1 level approval, the client develops the Project Proposal (CPC-2), working in close collaboration with the appropriate P&CP or Physical Facilities units. Forms for the CPC review can be found at Project Proposals will include an evaluation of the following: project description project information (sponsorship, cost estimate, type)

9 proposed source of funds academic program statement project location evaluation campus utility evaluation donor feasibility (if applicable) operating cost evaluation detailed project schedule business plan (if applicable) 2. If debt is requested or an internal loan is required as part of the projects funding plan, the Director of Physical and Capital Planning and/or the Director of Treasury Operations will evaluate and work with the client to develop a business plan for the proposed project and include it as part of the CPC application. 3. At this stage, the Academic Program/Architectural program must be completed. To complete the academic program, a building committee may be appointed by the dean/vice president to work under the direction of a representative of SMAS to develop the written description of programmatic activities detailing room size, relationship to other spaces, specific features and the necessary infrastructure within each room, project budget to include utilities, landscape, and demolition, etc. 4. An assigned Project Manager (PM) will be a member of the committee and the primary contact for the duration of the project. 5. If private gifts are part of the funding plan for a capital project, the fund raising plan must be approved by the Vice President for Development (VPD). The VPD will also provide an evaluation of the feasibility of raising the targeted funds. With the approval of the President, additional work will be authorized to develop the project scope, identify related costs, establish the project budget, and determine the feasibility for securing the necessary funds. For projects to be funded with selfsupporting revenues, a business plan will be prepared by the dean/vice president and submitted to the EVPBFT for review and approval. 6. When the project proposal has been completed, the sponsoring department head, dean, or vice president approves the CPC-2 form and forwards it to the University Architect for review and consideration for the upcoming CPC meeting. 5. The University Architect reviews the CPC-2 applications and will convene the appropriate CPC Subcommittee for a thorough review of the project request. Specific deadlines for applications and the review processes are scheduled annually and posted to the Capital Projects website. 9 P age

10 Project Proposal (CPC-2) Review 1. The University Architect will conduct a preliminary review of the feasibility assessment and determine if the application includes all the required elements, will involve the VAC and the ALDPC as appropriate, and will advance the project to the C For facility additions, renovation and/or capital improvement projects estimated to cost $2M or less, sculptures, monuments, exterior artwork, and memorials or other site features, the C 3 will complete a review of the CPC-2 application and provide a complete review of the site, scope, budget, project cost and funding plan. This review will include, but is not limited to: consistency with the campus master plan, consistency with the campus strategic plan, consideration of utilities and other site work, LEED certification, parking impact, and operating cost implications. 3. After this review is complete, the committee can either approve (if over $2M, approve for consideration at the next CPC meeting) or return the application to the client for adjustment. 4. All approvals delegated to the C³ will not be final until the President signs off on the meeting minutes of the C³. Project Proposal (CPC-2) Over $2M 1. The Director of Physical and Capital Planning will review the applications (over $2M) submitted for CPC-2 consideration and determine which items will appear on the agenda. 2. Submitted and accepted feasibility assessments will be reviewed by the CPC to determine whether to allow the project to proceed for further planning. Approval at the CPC-2 level officially authorizes the project for consideration of the Board of Trustees or their designee. 3. If the CPC suggests modifications to the proposed application, the project application will be updated based on the instructions of the CPC. If the project requires significant modification, the client may be requested to resubmit the application at a future CPC meeting. The DPCP is responsible to communicate modifications to the client. 4. Following CPC approval, the project can be considered for a future Board of Trustees Physical Facilities Committee agenda or be added to the biennial capital request. Post Approval CPC Actions 1. All projects approved by the CPC will be recorded and tracked. The status of previously approved projects, including approval dates (CPC, BOT Plan/Finance/Construct, ICHE, Budget Committee), project budget, project schedule, funding sources, and project risk assessment will be reported to the CPC. 10 Page

11 2. For gift funded projects, the Development Office will prepare reports on the status of fundraising and cash flow analyses. If fundraising is not on schedule or if it appears that the chances of closing the funding gap are not promising, a decision will be made to 1) stop the project, 2) continue the project as planned, or 3) reduce its scope. Board of Trustees Approval Projects advanced to the Board of Trustees for plan/finance/construct approval should have a fully funded business plan. It will be the responsibility of the Office of Physical and Capital Planning to ensure that the projects have the appropriate funding plan in place before the award of a construction contract. Prior to the award, all of the following criteria should be established: 1) 100% of gift funds are received or committed via signed pledge, 2) pledges will be collected in a time frame that will allow the project to be completed within project budget, 3) funding to cover short-term financing costs are pledged by the client and approved by the EVPBFT. Any deviation from these criteria must be documented and approved by a Memorandum of Understanding (MOU). For Board-level actions the following applies: 1. Resolutions for BOT approval to plan and/or finance and construct all projects are approved by the CPC. 2. Resolutions can ask for the BOT to include approval to hire an A/E firm to develop the design and prepare construction documents. 3. As an interim step to BOT approval, an A/E firm may be hired under a limited services agreement to develop the basic design parameters, including graphical material to be used in the fund raising process for gifts, that are absolutely necessary to proceed with the project. Before any graphical material is used for any purpose or public display, the President s approval is required. The Office of the Treasurer will coordinate the necessary meeting(s) with the President. 11 P age

12 State Approvals State (ICHE/budget committee/agency) approval 1. Upon approval of the BOT to finance and construct, the project will be sent to ICHE. 2. The Commission recommends approval of the project to the State Budget Committee, which in turn recommends approval by the Governor. All R&R projects that are greater than $750,000 or new buildings that are greater than $500,000 require submission to ICHE. In certain instances where state funding is part of the total project funding, the state legislature must first authorize the use of the funds. 3. The Budget Agency reviews the submitted budget requests and formulates recommendations. The requests are adjusted as approved by the Governor, and then presented to the Budget Committee. The Budget Committee is composed of four legislators one Democrat and one Republican from both the House of Representatives and the Senate and the Director of the Budget Agency. 12 P age