3.  CAPITAL IMPROVEMENT PROJECTS

a.  Definitions

i.  Capital improvement projects are those the costs for which exceed $750,000, regardless of funding source, including new buildings, remodeling or alterations, annual maintenance, and utility projects.  Deferred maintenance projects are governed by subsection 5., below.

ii.  Educational Building Fund, or EBF, means the fund created pursuant to K.S.A. 76-6b01 et seq. and funded by the annual mill levy authorized by Article 6, Section 6 of the Kansas Constitution.  Moneys in the EBF may only be expended as authorized by K.S.A. 76-6b02.

b.  Process

i.  Initial Request:  Each state university shall include initial concept requests for authorization of capital improvement projects with the university’s five year plan submitted to the Board for consideration on April 1 of each year.  Each project that will require the services of an architect and/or engineer shall have a written program statement included with the request. The request shall identify each anticipated source of funding for the project. For improvements that include new space for which private moneys are to finance at least 51% of the cost, the request shall include a plan for paying the annual maintenance and operation costs for the project from either private funds or existing university resources. (K.S.A. 76-790)  For improvements that include new space for which private moneys are to finance less than 51% of the cost, the request shall include a plan for paying annual maintenance and operation costs that identifies the resources to be used for such costs.  Such annual maintenance and operation costs plans shall be included in the program statement and shall adhere to standards prescribed by the Board’s Director of Facilities.  Each request approved by the Board shall be filed with the appropriate state offices on or before July 1 in the format determined by the State Budget Director.  Each state university is prohibited from pursuing gubernatorial or legislative approval of any project not previously approved by the Board.

ii.  Amendments:  Amendments to the current year capital improvements project list may be submitted to the Board at times other than those specified above.  Once approved, each university shall be responsible for ensuring that appropriate legislative approvals are obtained, including advising the Joint Committee on Building Construction.

iii.  Licensed Professional Consultants: The design and construction administration for all new buildings and major renovations on state property shall be performed by licensed professional consultants retained in accordance with Kansas statutes. A written program for each building project shall be submitted and approved by the Board and by the Legislature or legislative building committee as set forth in section E.2. before such services are obtained.

iv.  Program Statements: Minimum requirements for program statements include introductions, project budgets, and project schedules.  For new construction or major renovations the program statement must also include space projections, space summaries, space descriptions, a discussion of the impact the additional space will have on overall campus space,  and new buildings operating costs and the proposed source of funding for such operating costs (or a statement that such will not be requested).  Additional information that the institutions deem necessary may be included.

v.  Design Development Plans: Following Legislative and Board approval of a specific capital improvement project, design development plans for a building or project and the location of the new building shall be submitted to the President and Chief Executive Officer for review and approval before final plans are prepared. The President and Chief Executive Officer, upon the recommendation of the Director of Facilities, may approve said design development plans for the Board.

c.  Funding

i.  Funding Sources: Capital improvement projects may be paid for from state general funds, tuition, educational building funds, revenue bond proceeds (in accordance with chapter II.D. of this Policy Manual), restricted fees, research overhead funds and other resources as approved by the Board.

Capital improvement projects that are also approved deferred maintenance projects may be paid for in whole or in part by tuition interest earnings, contributions received pursuant to the postsecondary educational institution tax credit program (K.S.A. 79-32,261), and other funds earmarked by the Board or Legislature for the purpose of addressing deferred maintenance.

ii.  Federal Grant Requests: All institutional requests for federal grants for capital improvements shall be submitted to the Board President and Chief Executive Officer before the request is submitted to the appropriate federal agency.

iii.  Private Funds: No capital improvement project that is funded in part or totally from private funds may proceed to signature of contract unless and until all private funds have been deposited in an account for the use of the project or a letter of credit has been received by the Board President and Chief Executive Officer that guarantees the availability of the funds necessary to complete the project.

iv.  Fund Raising: In addition to the project approval required in subsection 3.b.i. of this section, notification of all capital improvement projects to be funded in part or in whole from private resources must be submitted to the Board’s President and Chief Executive Officer before fund raising efforts are publicly announced.

d.  Annual Maintenance

Beginning with projects initiated after January, 2007, and except as otherwise specifically provided for by law or approved by the Board, state universities shall not seek new state general funds to finance annual maintenance and operation costs for any new capital improvement project.