Planning and Establishment of Permanent Improvement Projects

I. Policy

The University will plan and establish permanent improvement projects in accord with applicable codes, rules, and regulations of the State of South Carolina. The Office of Planning and Special Projects is responsible for establishing all University Permanent Improvement Projects (PIPs) regardless of the source of funding. Permanent Improvements are defined by the State as:

1. Any acquisition of land, regardless of cost;

2. Any acquisition (as opposed to the construction) of buildings or other structures, regardless of cost;

3. Construction of facilities and any work on existing facilities including their renovation, repair, maintenance, alteration or demolition in those instances where the total cost of all work involved is $100,000 or more;

4. Architectural, engineering and other types of planning and design work, regardless of the cost, which is intended to result in a permanent improvement project. Master plans and feasibility studies are not permanent improvement projects and, therefore, are not to be included;

5. Capital lease purchase of any facility acquisition or construction; and

6. Equipment that either becomes a permanent fixture of a facility, or does not become permanent but is included in the construction contract.

These definitions focus on the significance rather than on the types of improvements being made. Significance is measured primarily in term of the magnitude of funds being spent. For example, a $100,000 renovation is considered significant, as is a $100,000 project to replace a roof.

It is the responsibility of the requesting department to contact the Office of Planning and Special Projects when any contemplated work, from routine maintenance (even painting) to renovation to new construction, falls within the definition.

Required Approvals

All work meeting the above PIP definition must proceed through a complex approval process involving many internal and external steps. Final authority to proceed with any PIP is vested with the State and exercised largely through the Budget and Control Board. Other significant agencies involved in the State level approval process include the Commission on Higher Education and the Joint Bond Review Committee (a joint House/Senate Committee). Internal University approval, at a minimum, consists of the President's Council and Board of Trustees.

Time for Approval

Please understand that the approval process can be quite lengthy and completing a project could take years depending on its complexity. Contact the Office of Planning and Special Projects early in your conceptualization of any anticipated work that meets the State definition of a PIP. We will work with you and move the project through the process as reasonably possible given the circumstances.

II. Procedures

South Carolina statutes require each State Agency providing and maintaining facilities to develop and submit an Annual Permanent Improvement Plan (APIP). This APIP sets forth the PIPs the University plans to establish in the coming year together with the anticipated sources of funds. The APIP is developed during the late fall and winter of each year. Internally, it is reviewed and approved by the President's Council and Board of Trustees prior to its submission to the State in June of each year. State approval of the University's APIP is required of the Commission on Higher Education, Joint Bond Review Committee and finally the Budget and Control Board. Final approval is usually granted in the fall for the then current fiscal year.

A. Annual Permanent Improvement Plan

1. The Office of Planning and Special Projects provides instructions and assistance as needed, and solicits written requests for anticipated PIPs from across the University each fall. All requests are due to the Office of Planning and Special Projects by the 3rd Monday of December each year. Each request must include:

• Project Description - What is the project? A clear, general description of what the proposed project consists of will be required (i.e.: demolition, electrical, HVAC, plumbing, painting, wall construction, floor covering, etc.). Please provide a line drawing of the project area.

• Justification - Why is the project needed? This should include comments about the functions that will be provided within the project area and the reasoning for the project. Any documentation which helps to convey the rationale and urgency of the project should be provided and included in the supporting documentation for the project. The specific deficiencies in facilities which the project is to address must be described.

• Alternatives - What alternatives to this project were considered? Describe any other means of meeting the needs identified which were considered and discarded.

• Proposed Source of funds - Indicate the sources of funds available to fund the project and provide the UDAK number

• Estimated Project Cost - Provide the total estimated cost of the proposed project in the level of detail available. For example, the estimate project cost for the renovation of Baruch Auditorium is $700,000 consisting of: roof replacement - $70,000 (current roof age 25 years); replace HVAC system - $200,000; add and upgrade restrooms - $100,000 (renovation of 1,500 square feet and new construction of 1,500 square feet); general renovation and refurbishment - $210,000; architectural and engineering fees - $50,000; and contingency - $70,000. If you need assistance in developing estimated costs, please provide what you can and indicate that help is desired. We will assist you in developing estimates. Once the project request has been developed, forward the request to the Office of Planning and Special Projects

2. Upon receipt by the Office of Planning and Special Projects, the staff works to further develop proposals as needed, and forwards all proposals to Facilities and Engineering. Facilities and Engineering is responsible to review and provide final cost estimates on all proposed PIP budgets.

3. On the second Thursday of each January, Planning and Special Projects distributes a package of proposals (including Facilities and Engineering cost estimates) to the Vice President for Finance and Administration, Director of Facilities and Engineering and Director of Financial Management.

4. The Office of Planning and Special Projects schedules a meeting of these individuals to review the entire package and prepare for its presentation to the President's Council.

5. The APIP package is placed on the agenda of the next regularly scheduled meeting of the President's Council.

6. The Office of Planning and Special Projects, in accord with the decisions and directions of the President's Council, prepares draft APIP submissions and forwards them to the State no later than March 1 of each year, as required by State rules and regulations.

7. In accordance with Board of Trustees Policy, all PIPs for inclusion in the APIP are presented to the Board for action or as information at each April's regularly scheduled Board of Trustee's Meeting.

8. Subsequently, the composite APIP document is compiled and submitted to the State no later than June 1st of each year.

9. When final State approval is received, it is the responsibility of the Office of Planning and Special Projects to notify each department, the President's Council, and the Director of Facilities and Engineering.

10. It is the responsibility of the Office of Planning and Special Projects to establish each project upon notification from the Director of Facilities and Engineering. The Office of Planning and Special Projects prepares the State A-1 Form collaboratively with Physical Assets Management and Project Administration. The Office of Planning and Special Projects submits the A-1 to the State and notifies appropriate internal units of the return of the signed A-1 from the State. (Project expenses for a PIP cannot be incurred prior to the State authorized signature date on the approved A-1 Form and assignment of the State's Project Number).

11. Notification of A-1 approval. It is the responsibility of the Office of Planning and Special Projects to notify Facilities and Engineering, Financial Management, and Physical Assets Management and Project Administration of all approved projects. Following this action, the project can be initiated and funds expended.

B. Amendments/Changes

If a need arises to establish a PIP outside of the University's annual APIP submission, an amendment to the Plan must be proposed and approved by the State. Internal approvals will be needed from the President's Council and the Board of Trustees may have to formally approve the request. At the State level, three separate approvals are required:
The Commission on Higher Education, Joint Bond Review Committee and Budget and Control Board. This internal and external process can consume an inordinate amount of time. Therefore, it is best to include all anticipated work in the University's annual formal APIP submission. To initiate an amendment to the APIP, a written request must be sent to the Office of Planning and Special Projects. This request is to be developed as outlined in 2, A, 1 above.

Planning and Special Projects will take necessary steps to process the request for necessary internal and external approvals. The submittal, approval, and notification process will be as outlined above. If a change needs to be made to an established project internal and external appraisals are necessary. A change is defined as follows:

• Increase Project Budget

• Decrease Project Budget

• Change Source of Funds

• Revise Scope of Project

• Change Project Name

• Close Project

• Cancel Project

When it is determined that a change is necessary, contact the Office of Planning and Special Projects to initiate the applicable process.

C. Special Capital Funding Requests

1. The Commission on Higher Education annually requests each college and university to submit major projects for consideration of funding by the State. The Office of Planning and Special Projects is responsible to draft this submission and present it to the President's Council for approval.

2. Following President's Council action, the submission is finalized and forwarded to the State.

3. The Office of Planning and Special Projects prepares an information item for the next regularly scheduled Board of Trustees agenda to apprise the Board of the submission.

4. The Office of Planning and Special Projects apprises the Vice President for Finance and Administration for formal State actions. The Vice President informs the President and President's Council.

D. Acquisition of Land and/or Buildings

The proposed acquisition of land and/or buildings is a Permanent Improvement Project as defined by the State. Therefore, the University Policy and Procedures for Establishment of a Permanent Improvement Project apply. Further, the Office of Planning and Special Projects will commission reports constituting a Phase I and/or II Environmental Assessment(s). The Offices of Occupational Safety and Health and Engineering and Facilities will conduct a pre-purchase review for determination of occupancy load and classification as appropriate. The Office of Planning and Special Projects will secure a full MAI appraisal of the property prior to presenting the proposed acquisition for internal action within the University.