Chapter 4: Capital Appropriation Request

1. Capital Appropriation Request Development Process
   1. Introduction: The Capital Appropriation Request is how the University requests capital funding from the State of Missouri. The Campus must carefully develop it to meet the submittal requirements of the University of Missouri Board of Curators, State of Missouri Coordinating Board of Higher Education, and the State of Missouri Office of Administration. Each year, the System Office prepares request guidelines for the next Legislative Session.
   2. Capital Appropriation Request Categories: The Capital Appropriation Requests fall into the following categories.
      1. Rehabilitation
      2. New Construction
      3. Engineering Equipment Replacement
      4. Long Range Plan [contains Rehabilitation and New Construction projects needed beyond the current request year(s)]
             Each campus will rank their Rehabilitation, New Construction, and Long Range Plan requests in priority order for each request year. Ranking factors include the program’s status, severity of space deficiency, support of campus mission enhancement plans and funding support.
   3. Capital Appropriation Request Justification: The University of Missouri requires a Program Planning Study (PPS) for all Capital Appropriation Requests. The PPS describes and systematically justifies the need for improved or expanded facilities; evaluates alternate solutions; and prescribes a strategy for carrying out a recommended solution within the context of each campus’ academic (master) plan and Physical Development Plan. It should clearly explain how the recommended solution will address both qualitative and quantitative deficiencies identified for a particular program.
          The PPS allows objective evaluation of the relative needs for capital investment and helps prioritization of projects as a part of the capital budgeting process. The PPS also provides the foundation for project objectives, scope, and budget, as a basis for agreements between the Campus, System Administration, and external agencies, including the Coordinating Board for Higher Education, State Legislature, and the Governor’s Office.
         The State has requirements for describing and justifying Capital Appropriation Requests. The annual request instructions include the State requirements.
   4. Capital Appropriation Request Process: Campuses submit Capital Appropriation Requests, including project justifications, to the System office annually. FPD issues the request guidelines and schedule of significant dates annually. The Campus submits a preliminary draft of the request first, followed by a review and comments to the campus by FPD. The Campus makes the official final submittal to the President, with a copy to the Director, FPD.
   5. Capital Appropriation Request Review: Facilities Planning and Development will review and provide comments on each campus request to the campus administrator responsible for capital. The campus will incorporate comments as appropriate. Campus tours, if necessary, will be scheduled by FPD to review these projects with the Campus Administrator responsible for capital.
   6. Capital Appropriation Request Approval: The Campus makes its final request to the President. After approval by the President, the request is presented to the Board of Curators for approval. After Curator approval, the request is submitted to Missouri Coordinating Board for Higher Education, key members of the legislature, the General Officers and key staff of the University, and the State Office of Administration Division of Design and Construction.
2. Project Types
   1. Rehabilitation: Rehabilitation is the work required because of a change in use of a facility, a change in a program, because of building standards deficiencies and/or because a facility has deteriorated to such an extent that it no longer serves its intended function. Work in this category will substantially alter buildings, equipment, grounds, or utilities. Deficiencies in building standards include:
      • Life Safety - work required to meet current fire and safety code standards (NFPA 101, BOCA) as adopted by the Board of Curators. Include asbestos removal projects in this classification.
      • Animal Welfare - work required to bring facilities housing laboratory animals up to standards such as NIH Guidelines and USDA Regulations.
      • ADA Compliance - work required to make facilities and programs accessible to the physically disabled following the Americans with Disabilities Act Accessibility Guidelines (ADAAG).
   2. New Construction: New Construction includes the construction of new buildings, additions and extensions to existing buildings, and the acquisition of land and facilities. Work in this category will include all site improvements, utilities, building systems, and equipment required to create a functional facility to serve its intended use. Include the renovation of existing buildings, when part of a new construction project in this classification.
3. Current Year Projects: The Campus will develop the description, cost, and justification for each project in the current year request. The guidelines typically require the information below.
   1. Description of Work: The project description should consist of the name of each project and the following information: Size and quantity, location, physical description, departments to be housed, function/uses and status of planning (i.e., completed Program Planning Study, schematic design or working drawings underway or complete.) Note any deviations from prior submissions and include explanations for eliminating previously requested projects or changing priority rankings.
   2. Estimated Cost: Provide source and amount of funding received or anticipated by source, e.g., State Appropriation (Year), Campus Funds, etc. Funding must equal the project cost as shown under Facilities Costs.
   3. Justification
      1. Analysis of Deficiency: Evaluate the facilities now in use. Describe the physical deficiencies and how they limit performance. Describe the impact of delaying or eliminating this project. Be specific.
      2. Consideration of Alternate Facilities: Provide a list of facilities considered to meet the requirement through existing assets. Describe the examination of these facilities, including those at another site/complex, which could be used to satisfy the requirements. Examination of existing facilities should include the costs for addition, alteration, rehabilitation, or repair. When another site, complex, or facility was considered and rejected, identify the site and the reason for rejection.
      3. Relationship to Other Programs: If the project is directly related to projects in a prior year budget, the current budget, or future budget, show the relationship clearly. Explain the effect of delay or cancellation of this project on proposed future programs. Identify any major direct or indirect benefits to other academic programs.
      4. Economic Consideration/Savings: Cost/benefit analysis of the project (i.e., energy conservation, maintenance cost, consolidation of remote facilities and elimination of leasing costs or temporary facilities), economies in design, and other cost savings should be identified when applicable.
      5. Energy Requirements: Identify the types of heating and air-conditioning systems, lighting systems, and connected loads. State the estimated design energy performance of the facility and describe energy conservation and alternate energy systems used.
      6. Utility Support Requirements: Identify any changes to existing utility distribution systems that are planned due to this project and their related cost and source of funding.
      7. Criteria for Proposed Projects: State how the size and capacity of the proposed facility are related to the functions to be supported. Define the workload in terms of student credit hours and enrollment per FTE, separated into graduate and undergraduate programs. Identify permanent faculty, staff, clients, functions, or other appropriate factors. Establish the relationship between the project and the academic plan of the University/campus. This paragraph could be taken directly from the Program Planning Study.
             Provide a breakdown of the projected gross square footage by the Higher Education General Information Survey (HEGIS) facilities use categories.

HEGIS	Type of Space	Square Feet
100 - 199	Classroom Facilities
200 - 299	Laboratory Facilities
300 - 399	Office Facilities
400 - 499	Study Facilities
500 - 599	Special-Use Facilities
600 - 699	General-Use Facilities
700 - 799	Supporting Facilities
800 - 899	Health Care
900 - 999	Residential
000 - 099	Non-assignable Areas
Total Square Feet

4. 4. 8. Disposal or Use of Vacated Facilities: If a new facility is replacing an existing facility, state the intended future use of the displaced facility.
      9. Impact of the New Facility on the Campus and Surrounding Environment: Assess the potential impact the proposed project may have on the human or natural environment.
             Relate the project to the campus Physical Development Plan. (It is imperative that the campuses develop a Physical Development Plan and where one exists, this project shall be consistent with that plan.)
      10. Provisions for the Disabled: All new construction and rehabilitation must comply with the Americans with Disabilities Act (ADA).
      11. Program for Related Furnishings: The purpose of this request is to identify furnishings and equipment, intended for installation in the proposed facility, funded from other sources or appropriations.
   5. Budget Category: Show estimated costs distributed by categories A through G as shown below. Projects included in the prior request should not be adjusted unless accompanied by a revised detailed cost estimate and an explanation of the adjustments. These costs will be adjusted for inflation before final approval by the Board of Curators. The inflation factor used will be provided by the State of Missouri Office of Administration.
      1. Construction: include all costs related to the installation of materials and equipment including contingencies, soils and materials testing, hazardous material abatement, HVAC balancing, etc.
      2. Land Acquisition: include the cost to raze existing facilities and to remediate
         environmental hazards.
      3. Installed Functional Equipment: include only those items to be obtained and installed separately from a construction contract.
      4. Telecommunications: include plant and equipment costs separate from the construction contract.
      5. Furnishings and Portable Equipment: include all procurement and/or moving costs for movable furnishings and equipment.
      6. Maintenance and Repair costs are not applicable.
      7. 1. Professional Costs: include all consultant costs for planning, design, surveying, soils investigations, code analysis, etc.
         2. Administrative Costs: include all costs related to project administration, owners’ representative, advertising, reproduction, and distribution of bid documents and archiving.
   6. Recent Major Expenditures: List expenditures made in previous 5 years related to building or goals of the project, e.g., planning and design fees for preliminary studies and Schematic Design.
   7. Operations Budget Impact: Show an estimate of operating costs for first year building will be in operation for New Construction projects. Cost of operations relates primarily to the routine maintenance and upkeep of the facility and associated utility expenses. Costs for projects included in the prior request should not be adjusted unless accompanied by a revised detailed cost estimate and an explanation of the adjustments. These costs will be adjusted for inflation before final approval by the Board of Curators. The inflation factor used will be provided by the State of Missouri Office of Administration.
5. Engineering Equipment
   1. Grant Program: The State of Missouri has a grant program established for the University of Missouri engineering colleges. The program is to help the colleges at in purchasing teaching and research laboratory equipment, exclusive of laboratory or classroom furniture. This grant program extends through to FY 2007. Refer to RSMo 172.287.
          The amount granted may not exceed the lesser of:
      1. $1,200 per bachelor degree awarded in the previous fiscal year; or
      2. The dollar value of new funds for equipment purchases which have been obtained from sources other than state appropriations for laboratory equipment.
             The campus should select the first option as the basis for the request and use the most current information on bachelor degrees awarded. UM Facilities Planning and Development will update the request as new information becomes available from UM Planning and Budget.
            If the campus chooses the second option as the basis for the request, supporting information should be included.
   2. Capital Request Procedure: The Campus will apply for the engineering equipment grant by preparing a Form 12 and submitting it with their annual Capital Request.
6. Long Range Plan: The Long Range Plan for future campus capital requirements will cover the three years following the current request fiscal year(s). The Campus will develop a Form 13 for each year of the Long Range Plan describing Rehabilitation and New Construction projects for that year. Rank each year’s Rehabilitation and New Construction projects separately on Form 13.
       The each request typically requires the following information.
   1. Description of Work and Justification: Briefly describe the scope of work proposed. The justification should be concise and include a statement of the need or deficiency, the effect of delaying the project, reason for the fiscal year planned for the request and any relationship to prior or future requests.
   2. Estimated Cost: Include the budget categories described in the new Construction instructions. Project costs for projects included in the request should not be adjusted unless accompanied by a revised detailed cost estimate and an explanation of the adjustments. These costs will be adjusted for inflation before final approval by the Board of Curators. The inflation factor used will be provided by the State of Missouri Office of Administration. Base costs for new projects on funds becoming available on July 1, of the current request year.
   3. Operations Budget Impact: Show estimates of operating costs for all New Construction projects. Cost of operations relates primarily to the routine maintenance and upkeep of the facility and associated utility expenses.
7. Funding Approval
   1. Notice: The University of Missouri will be notified as of July 1 as to the approval of the capital appropriations. Facilities Planning and Development will provide a complete listing of funded projects to the Campus Facilities Administrator.
   2. Encumbrance: All funded projects shall have project monies encumbered by June 30, of the following year and all funds expended by November 30 of the following year. Appropriations can be two year appropriations, which allow an additional year to encumber and expend funds. The System Office keeps copies of the appropriations and can answer questions on the length of the appropriation. Projects may also be reappropriated as necessary.
   3. Reappropriation: By October 1 of each year Campus Facilities Administrator shall provide to the UM Director of Facilities Planning and Development a list of projects that will require reappropriation. Included with the reappropriation request shall be a justification for the need of reappropriation.
8. Capital Appropriations Tracking
   1. Tracking: Each campus shall track the progress of each capital project. Tracking shall be through the campus management systems.
   2. Reporting: At the end of each fiscal quarter, campuses shall provide to Facilities Planning and Development cash flow projections for all projects for which funds have been appropriated by the State.