Capital Projects

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Capital Projects

• Building an Understanding

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Capital Projects

• What is a capital project?
• Capital projects classifications.
• What drives campus development?
• What is the process for getting a project
  approved and underway?
• How long does it take?
• What to remember.

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What is a Capital Project?

• Capital outlay projects include new construction,
  alterations, and additions of existing structures
  or infrastructures.
• Governed by state laws and CSU Policies
• Public works policies and practices apply,
  including the requirement to pay prevailing
  wages.
• Facilities Planning under the VP AFD has
  responsibility for administering all campus major
  capital outlay projects on behalf of the Trustees
  and the State of California.

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Capital Projects Classifications

• State Funded capital projects
• Non-State Funded capital projects
• Hybrid projects
• Include both state and non-state funding
  components

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Capital Projects ClassificationsState Funded
Capital Projects

• Funded by appropriations of state tax revenues or
  other special legislative appropriations
• Categorized as capacity and non-capacity space
• Capacity space generates FTES capacity
• Non-capacity space is utilized for offices, lab
  prep, etc. and does not generate FTES capacity

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Capital Projects Classifications Non-State
Funded Capital Projects

• Projects funded from donations, state enterprise
  funds, e.g. housing, parking, etc., and auxiliary
  funds (Foundation)
• Do not generate FTES capacity
• Do not generate facility operating funds, e.g.
  utilities, maintenance, etc.

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Capital Projects Classifications Hybrid capital
projects

• Project design may include capacity and
  non-capacity state space AND utilizes non-state
  funding for space types not funded by the state
  or enhancements to state funded space, such as
  research space, larger lab than formula allows,
  more administrative space, etc.

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What Drives Campus Development?

• Campus Master Plan
• Links the physical requirements of academic
  programs and auxiliary activities both State and
  Non-state.
• Shows existing and anticipated facilities
  necessary to accommodate a specified enrollment
  at an estimated target date.
• Website
• http//www.facilities.calpoly.edu/masterplan/maste
  rplan.htm

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What Drives Campus DevelopmentCampus Master Plan

• Approved in March 2001
• Set the course for construction over the next 20
  years.
• Developed long range enrollment predictions and
  assigned enrollment growth to each college.
• Established the priorities for state funded
  capacity and non-capacity space.

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What Drives Campus Development Physical Master
Plan

• Describes the general location of each project on
  campus.
• State and non-state projects submitted annually
  on the 5-year Capital Improvement Program to the
  CSU must be included on the physical master plan.
• If a project is not included in the Master Plan,
  Facilities Planning must submit a Master Plan
  amendment for approval.
• Campus Master Plan Committee
• Campus Planning Committee
• CSU Board of Trustees

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The ProcessState Capital Projects

• Requests are based on enrollment, capacity,
  utilization data, and on the requirements of each
  academic or support program.
• Campus submits a complete project program for the
  building including room types, configurations,
  square footage and cost estimates.
• Time period between legislative approval of
  project and funding is approximately 18 mos.

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The Process State Capital Projects

• CSU system total capital outlay budget is
  approximately 350 million per year. Many
  projects are approved through the process but are
  not funded due to lack of budget availability.
• Cal Poly competes with the other CSU campuses for
  a share of the budget.
• Non-state sources can have some influence on the
  timing of state funding relative to other CSU
  projects.

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The Process State Capital Projects

• Constraints
• State projects must conform to State University
  Administrative Manual (SUAM) space guidelines,
  e.g. faculty office size, lecture room space,
  etc.
• Limited state funding.
• Time lag between planning estimates,
  appropriation of funds, and bids.
• Budget Act establishes time periods in which
  project funding must be encumbered and expended.
• Unexpended funds revert to the State of
  California.
• Voter approval of a bond issue.

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The Process Non-State Capital Projects

• Though Non-State capital projects have fewer
  constraints than state projects, funding of these
  projects adds a level of complexity.

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The Process Funding a Non-State Project

• Funding constraints
• University cannot borrow funds
• University may not use Support appropriations,
  i.e. the General Fund for capital outlay
• Only borrowing vehicle available is the SRB
  program applicable to revenue-generating
  projects.
• Auxiliary may loan or provide guarantees of
  funding but their capacity to do so is limited.

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The Process Non-State Project Development
Step 1

• Initial planning process by AFD with client
• Establish expectations.
• Develop a project description and scope.
• Recommend a project delivery method.
• Develop a project timeline and critical path.
• Prepare a funding plan that meets critical path.
• Check for consistency with mission, campus master
  plan and refer to campus committees as needed.

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The Process Non-State Project Development
Step 2

• Develop a preliminary project budget
• Identify initial design funding
• Preliminary Design Effort
• Building Programming
• Conceptual Design
• Schematic Design
• CEQA
• Reconcile budget to cost estimates at each design
  phase

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The Process Non-State Project Development-Step
2 (cont.)

• All project funding must be in place to proceed
  through campus CSU approvals.
• SRB financing packages will be developed by
  Assoc. VP of Finance for approval by the CSU.
  SRB financing packages must be submitted to the
  Chancellors Office a minimum of 8 weeks prior to
  the BOT meeting.

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The Process Non-State Project Development
Step 3

• Schematic CEQA approvals
• Master Plan Committee
• Campus advisory committees as necessary
• President
• Campus Planning Committee
• Chancellors Office staff
• Board of Trustees

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The Process Non-State Project Development
Step 4

• Final Design Documents
• Complete Working Drawings
• Reconcile cost estimates at 50 and 100 complete
  drawings to budget
• Adjust funding plan, as needed
• Bid Project (if Design/Bid/Build delivery)
• Adjust funding plan, as needed
• BOT approval of SRB financing, if applicable

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The Process Non-State Funded Projects

• Non-state funded projects have more flexibility
  in space configurations if non-scheduled space.
• Non-state projects require that adequate funds
  are available to address cost increases, market
  conditions or other unknowns.
• Project schedule cannot be maintained without
  adequate funding.
• No BOT approvals without funding

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The Process Funding a Hybrid Project

• Non-State funding component must be in place at
  the time the state appropriates its share of the
  project funds.
• Ensures project can be completed within the
  States prescribed timeframe.

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Capital Projects How long does all this take?

• Typical non-state projects require 3-5 years from
  the Initial Planning Meeting to project
  completion.
• Each project varies due to the complexity of the
  building program.
• State projects have the added uncertainty of
  state funding availability and the passing of
  bond measures.

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What to remember

• Administration Finance facilitates campus
  physical development and is always the first
  point of contact for any project idea.
• Building can be exciting but requires a
  commitment of resources
• Time is money

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What to remember

• Construction is not a science and costs fluctuate
  in response to market conditions.
• For state projects this means adjustments to
  project scope.
• For non-state project this means adjustment to
  scope or additional funding.
• Be prepared to be flexible and compromise.
• Non-state projects do not generate state funding
  to cover operating costs.

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Questions? Contact

• Bob Kitamura, Director
• Facilities Planning and Capital Projects
• Email bkitamur_at_calpoly.edu
• Phone [phone]
• Karen Webb, Asst. Vice President
• Administration and Finance
• Email kwebb_at_calpoly.edu
• Phone [phone]