Capital Improvements Policies & Procedures ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Capital Improvements Policies & Procedures Revised: March 2018 (c)2018 Archdiocese of Los Angeles ACC Financial Services Group & Construction Department

ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Capital Improvements Construction “Construction” Capital Improvement Projects New Buildings / Structures Existing Facilities & Buildings Major Maintenance & Repairs Additions Renovations / Remodels Demolition Major Property Insurance Claims involving Buildings (Replacement) ACC Financial Services Group & Construction Department

Planning & Preparation ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Planning & Preparation An Overview Key Steps to Executing a Construction Capital Improvement Project (an overview) Scope Budget Schedule Funding Approvals Contracts Payments ACC Financial Services Group & Construction Department

Planning & Preparation ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Planning & Preparation An Overview Scope Define the parameters of Construction Capital Improvement Project Identify Project Requirements Prepare a written description of Work and/or Drawings (as needed) Communicate Expectations Quality Prioritize Work (as needed) ACC Financial Services Group & Construction Department

Planning & Preparation ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Planning & Preparation An Overview Budget Establish a Project Budget based on defined Scope Obtain Cost Proposal / Estimate from: Contractor / Vendor Design Professional or Cost Estimator Project Phases & Costs For Larger Construction Project requiring Design, Engineering, Plan Check & Permits ACC Financial Services Group & Construction Department

Planning & Preparation ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Planning & Preparation An Overview Budget Project Phases & Costs Entitlements Design / Engineering Plan Check / Permit Fees Bidding Environmental Hazard Abatement (if needed) Construction Costs Contingency ACC Financial Services Group & Construction Department

Planning & Preparation ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Planning & Preparation An Overview Schedule Do not wait until the last minute to request approvals, vendor pre-qualification or contracts Establish a Project Completion Date Consider Contingency / Alternative Plans Consider Parish / School Events & Schedules (i.e. Summer School, etc.) ACC Financial Services Group & Construction Department

Planning & Preparation ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Planning & Preparation An Overview Schedule Allocate adequate time for: Approvals Entitlements Scope Definition Design / Engineering Drawings / Specifications Requests For Proposal Plan Check / Permits Bidding / Multiple Proposals Contracts Construction Close Out ACC Financial Services Group & Construction Department

Planning & Preparation ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Planning & Preparation An Overview Funding Requires 100% Funding – Cash On Hand including Contingency Note: If Total Project Costs exceeds $20,000 Deposited in Parish or School restricted Investment Pool Building Fund Account ACC Financial Services Group & Construction Department

Planning & Preparation ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Planning & Preparation An Overview Approvals (if total project costs exceeds $20,000) Auxiliary Bishop (except Archdiocesan High Schools) Pastor sends written letter requesting approval Financial: ACC Finance Office (Financial Services) Vendor: Recommended Vendor or Pre-Qualified ACC Financial Services Group & Construction Department

Planning & Preparation ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Planning & Preparation An Overview Approvals Dependent on Scope (if total project costs exceeds $20,000) School Projects – Contact Department of Catholic Schools (“DCS”) Liturgical Projects – Contact ACC Office for Worship May require review of Liturgical Design Review Committee (“LDRC”) Note: See Policies & Procedures section of this presentation and section 7.4 of the Archdiocesan Administrative Handbook for more specific details and requirements. ACC Financial Services Group & Construction Department

Planning & Preparation ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Planning & Preparation An Overview Contracts Total Project Cost Less Than or Equal to $20,000 Use Recommended ACC standard “Contract for Small Construction Projects” See Resources in section 7.4.1 of the Archdiocesan Administrative Handbook) Total Project Costs Exceeds $20,000 Use Only ACC Standard Contracts Contact the ACC Construction Department Note: See Policies & Procedures section of this presentation and section 7.4 of the Archdiocesan Administrative Handbook for more specific details and requirements. ACC Financial Services Group & Construction Department

Planning & Preparation ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Planning & Preparation An Overview Payments (if total project costs exceeds $20,000) Submit Completed Investment Pool Request Form Withdrawal from Investment Pool Building Fund Account that contains Deposited Project Funding Attach Invoice & Supporting Documentation Note: See Policies & Procedures section of this presentation and section 7.4 of the Archdiocesan Administrative Handbook for more specific details and requirements. ACC Financial Services Group & Construction Department

ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Policies & Procedures Capital Improvements Requirements & Approvals Consultants / Contractors / Vendors Volunteers Environmental Hazards Resources ACC Financial Services Group & Construction Department

ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Policies & Procedures Capital Improvements: Requirements & Approvals REQUIREMENTS & APPROVALS BASED UPON PROJECT CLASSIFICATION Minor Projects Less than or equal to $20,000 = Local Approval except under special circumstances Major Projects Greater than $20,000 but less than or equal to $1,000,000 Greater than $1,000,000 requires Building Commission approval Greater than $2,000,000 also requires Outsourced Project Manager Classification is based on the Valuation & Total cost of Project, not the cost of individual parts ACC Financial Services Group & Construction Department

Minor Project Requirements ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Minor Project Requirements Policies & Procedures: Requirements & Approvals Funding Parish / School has 100% of funds available (including Contingency) Authorized to Execute Contracts Pastors (for Parishes, Elementary Schools & Parish High Schools) Principals of Archdiocesan High Schools Contractors Valid license in the State of California Comply with Archdiocese Minimum Insurance Requirement Contract Archdiocese recommends use of ACC standard “Contract for Small Construction Projects (available as Resources in section 7.4.1 of the Archdiocesan Administrative Handbook) ACC Financial Services Group & Construction Department

Minor Project Requirements ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Minor Project Requirements Policies & Procedures: Requirements & Approvals ACC Standard Small Construction Project Contract (Terms & Conditions) Offered for Parish or School projects <= $20,000 Developed by ACC Legal Counsel & Construction Department for the protection of the Parish, School and Archdiocese Use instead of Contractor Proposals or Contracts Suitable for General Contractors and Specialty Trade Contractors (i.e. Roofing, Plumbing, Electrical, etc.) ACC Financial Services Group & Construction Department

Minor Project: Key Tips ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Minor Project: Key Tips Policies & Procedures: Requirements & Approvals Obtain at least 3 Bids / Proposals Get Project Expectations in Writing (Price, Scope & Schedule) Be cautious when signing Proposals / Contracts prepared by Contractors Beware of the fine print! Only sign the contract if you completely understand the terms Confirm the Contractor has Workers’ Compensation Insurance for their employees Check the State of California Contractors State License Board Web Site at: http://www.cslb.ca.gov to perform a License Check ACC Financial Services Group & Construction Department

Minor Project: Key Tips ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Minor Project: Key Tips Policies & Procedures: Requirements & Approvals Don’t pay cash Don’t let the payments get ahead of the work completed, and don’t pay the full cost of the job up-front Contractors should not ask for a deposit of more than 10% of the total cost of the job or $1,000, whichever is less, unless the contractor provides a bond or bond equivalent ensuring completion of your contract. Hold Retainer payments until job is completed Ask for Lien Releases ACC Financial Services Group & Construction Department

Minor Project: Exceptions ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Minor Project: Exceptions Policies & Procedures: Requirements & Approvals Contact the ACC Construction Department for Consultation & Review if your project involves: Asbestos, Lead & Mold Structural Renovation Structural Modifications Conditional Use Permits (CUP) Day Care Facilities Pre-School Facilities If you have questions, call (213) 637-7850 ACC Financial Services Group & Construction Department

Major Project Requirements ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Major Project Requirements Policies & Procedures: Requirements & Approvals > $20,000 and <= $1,000,000 > $1,000,000 > $2,000,000 Required Approvals Regional Bishop (except Archdiocese High Schools) Office For Worship (if Liturgical Project) Superintendent (if School Project) Financial (before contract) Funding 100% or approved ADLA Loan / Line of Credit (“LOC”) Deposited in Parish / School restricted Investment Pool Bidding Competitive Bid Contracts ACC Standard Required Approvals Same as left + Archdiocesan Building Commission Funding +Archdiocese Cash Flow Model / Chart Bidding Contracts ACC Standard or ACC Modified AIA Agreement Required Approvals Same as left Funding Bidding Contracts ACC Modified AIA Agreement +Outsourced 3rd Party Project Manager ACC Financial Services Group & Construction Department

Major Project Requirements ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Major Project Requirements Policies & Procedures: Requirements & Approvals > $20,000 and <= $1,000,000 > $1,000,000 > $2,000,000 Payments Submit completed & signed Archdiocese Investment Pool (“IP”) Withdrawal Request Attach invoices and supporting documentation Funds from restricted Parish / School IP Account Reviewed by ACC Construction Department Payments processed by ACC Financial Services Closeout Project review by Parish / School and Archdiocese representative Lien Releases Payments Same as left + Attach completed & signed AIA Payment Application (if contract issued on ACC Modified AIA Agreement) Closeout + Punch List (if contact issued on ACC Modified AIA Agreement) Payments Same as left Closeout + Outsourced 3rd Party Project Manager ACC Financial Services Group & Construction Department

Major Project Requirements ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Major Project Requirements Policies & Procedures: Requirements & Approvals > $20,000 and <= $1,000,000 > $1,000,000 > $2,000,000 Typical Projects Painting Roofing: Repairs & Replacement Paving: Repairs & Replacement Plumbing: Repairs, Infrastructure Replacement & New Fixtures Electrical: Repairs, Upgrades and Improvements HVAC: Repairs, Upgrades Lighting Asbestos (ACM) Abatement Typical Projects Existing Building Renovations Conversion of Existing Buildings – Change of Occupancy & Use Synthetic Turf Fields Site Improvements Typical Projects New Buildings Large Scale Existing Building Renovations Conversion of Large Existing Buildings – Change of Occupancy & Use ACC Financial Services Group & Construction Department

Major Project Requirements ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Major Project Requirements Policies & Procedures: Requirements & Approvals Additional Approvals Required Auxiliary Bishop (except Archdiocesan High Schools) Pastor sends written letter requesting approval Financial: ACC Finance Office (Financial Services) Additional Approvals Dependent on Scope School Projects – Contact the Department of Catholic Schools (“DCS”) at the ACC Deputy Superintendent of Elementary Schools Deputy Superintendent of High Schools Liturgical Projects – Contact ACC Office for Worship May require review of Liturgical Design Review Committee (“LDRC”) ACC Financial Services Group & Construction Department

Major Project Requirements ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Major Project Requirements Policies & Procedures: Requirements & Approvals Consultation & Review ACC Construction Department Funding Parish/School has 100% of funds available for the project (including contingency) or qualify for a short term Archdiocesan Construction Loan / Line of Credit (“LOC”) Funds deposited in restricted Investment Pool Account before Contract is issued Master Plan/Maintenance Plan Proposed Project conforms with Approved Master Plan for the Parish/School (excludes Maintenance Projects) Parish/School has a Facilities Maintenance Plan ACC Financial Services Group & Construction Department

Major Project Requirements ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Major Project Requirements Policies & Procedures: Requirements & Approvals Bidding Competitive Bids (Minimum of 3) from Pre-Qualified Contractors Contractors who are not on the Pre-Qualified List must complete the Pre-Qualification Process and meet minimum Archdiocesan requirements Note: Negotiated / Guaranteed Maximum Pricing (instead of Competitive Bids) requires prior approval of the Archdiocesan Building Commission ACC Financial Services Group & Construction Department

Major Project Requirements ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Major Project Requirements Policies & Procedures: Requirements & Approvals Contracts ACC Standard Agreements Only Archdiocese / ACC Small Construction Contract Archdiocese / ACC Custom Modified AIA Contracts Construction Department prepares contracts on behalf of Parish/School ACC Financial Services Group & Construction Department

ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Financial Approval Policies & Procedures: Requirements & Approvals Pre-Requisites for ALL Major Projects Credit Check / Evaluation Evaluation required before fundraising or design No outstanding past due Accounts Receivables (i.e. Medical, “MI” - Monthly 1/12th) Any existing Archdiocese Loans / Lines of Credit (“LOC”) need to be paid in full Parishes or Schools on subsidy are subject to further review May require a meeting with the CFO and an ACC Financial Services Department representative ACC Financial Services Group & Construction Department

ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Financial Approval Policies & Procedures: Requirements & Approvals Financial Analysis ACC Construction Department works in collaboration with ACC Financial Services Department to conduct a review and prepare analysis for evaluation Project Budget / Cost Review Funding Review ACC Financial Services Group & Construction Department

ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Financial Approval Policies & Procedures: Requirements & Approvals Cash Flow Model & Chart Required for Projects involving a Construction Loan / Line of Credit and large major projects (> $1M) Parish / School submits Project Budget / Cost Data and Funding Information Construction Department assists in preparing cost distribution using provided Cost Data Where possible, a Project Manager or designated representative for the Parish / School prepares the distribution An ACC Financial Analyst prepares funding distribution using Pledge Schedules provided by Parish / School ACC Financial Services Group & Construction Department

ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Major Projects > $1M Policies & Procedures: Requirements & Approvals Typically NOT a Summer Project Requires Extra Preparation Time Due To: Planning Additional Required Approvals ACC Financial Services Group & Construction Department

ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Major Projects > $1M Policies & Procedures: Requirements & Approvals Additional Required Approvals Archdiocesan Building Commission Conceptual Plan Review & Approval Master Plan Review & Approval Conceptual/Schematic Design Review & Approval In some instances, the Master Plan and Conceptual/Schematic Design Review may be combined Financial Review & Approval Before Bidding After Receipt of Bids, Prior to Issue and Award of Contract ACC Financial Services Group & Construction Department

ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Major Projects > $2M Policies & Procedures: Requirements & Approvals Additional Requirements Project Management Parish / School must hire outsourced Pre-Qualified Owner’s Project Manager (“PM”) PM responsibilities include: managing project scope, schedule, budget, entitlements, bidding, bid analysis, oversight of design & construction, progress payments, change directives, change orders, and close out documentation ACC Financial Services Group & Construction Department

Consultants / Contractors ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Consultants / Contractors Policies & Procedures Recommended List Consultants, Contractors, Specialty Trades & Vendors Recommendations based on history of successful past performance Pre-Qualified List Firms completing the evaluation process Usually for a specific Parish / School project, but may have not completed an entire project Lists are updated periodically by ACC Construction Department ACC Financial Services Group & Construction Department

Consultants / Contractors ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Consultants / Contractors Policies & Procedures Submittal For Pre-Qualification Requires Recommendation from Parish or School Only for specific Parish or School project No referral of candidates for other Parishes/Schools Written letter from Pastor (Parish, Elementary or Parish High School) or Principal (Archdiocesan High School) Candidates Completes Pre-Qualification form including List of References Evaluation and Interviews Submits required Certificates of Insurance ACC Financial Services Group & Construction Department

Consultants / Contractors ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Consultants / Contractors Policies & Procedures Minimum Pre-Qualification Requirements Valid and current State of California license for applicable profession or trade 5 years of continuous operations under current business name / license and in good standing Valid Insurance General Liability, Workers’ Compensation, Auto and where applicable, Professional Liability References Acceptance of Archdiocese contract terms and conditions ACC Financial Services Group & Construction Department

ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Volunteers Policies & Procedures Volunteer Construction Work Discouraged Due To Risk of Injury Lack of experience increases risk of accidents Liability Exposure Costs due to injury can offset or exceed cost of paying a qualified, licensed and insured Contractor Warranties None provided by volunteers Requirements for Volunteers Performing Services Normally Requiring a License (if Paid) Under Supervision of Licensed Contractor Requires Proper Insurance Coverage Volunteers should be asked to sign the Volunteer Agreement (see the Archdiocesan Administrative Handbook) ACC Financial Services Group & Construction Department

ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Volunteers Policies & Procedures Volunteers Should Not : Work Above Ground Level Use Ladders, Scaffolding, Platforms, Lifts Perform Electrical Repairs Use Power Tools Be assigned to Strenuous Labor, Lifting, Hoisting Work around Environmental Hazards (i.e. Asbestos, Lead, Mold) ACC Financial Services Group & Construction Department

Environmental Hazards ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Environmental Hazards Policies & Procedures Proposed Maintenance, Repairs or Construction (New, Additions, Remodel, Renovation or Demolition) may trigger required abatement of: Asbestos / Asbestos Containing Materials (“ACM”) / Asbestos Containing Building Materials (“ACBM”) Lead, Lead-Based Paint (“LBP”), Lead Glazing on Ceramics, Lead Containing Building Materials Mold ACC Financial Services Group & Construction Department

Environmental Hazards ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Environmental Hazards Policies & Procedures If in doubt, before beginning a proposed construction project: Contact the ACC Construction Department Conduct an Inspection, Site Survey and Assessment using a Certified Consultant Obtain a written Report with recommendations Conduct necessary abatement using Certified Abatement Contractors ACC Financial Services Group & Construction Department

ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Resources Policies & Procedures ACC Construction Department Contact Information Phone: (213) 637-7850 Email: construction@la-archdiocese.org ACC Financial Services Group & Construction Department

ARCHDIOCESE OF LOS ANGELES Capital Improvement Policies & Procedures FY 2015 - 2014-08 Edition Resources Policies & Procedures Publications & Guidelines Archdiocesan Administrative Handbook www.la-archdiocese.org “Publications” tab and select Archdiocesan Administrative Handbook from the pull down menu Chapter 7: Facilities Chapter 6: Finance Archdiocesan Building Commission Construction Policies Construction Project Checklist ACC Financial Services Group & Construction Department