1. Capital Projects What is a Capital Project? What is a Public Works Project? State of Louisiana Facility Planning & Control

2. When is a project just a project and when is it a

3. Capital Projects Facility Planning & Control Capital projects must “go through capital outlay.” According to RS 39:101: “…the head of each budget unit shall present to the office of facility planning and control of the division of administration a request for all expenditures for capital projects falling within the definition contained in R.S. 39:2(9)…”

4. Capital Projects Facility Planning & Control Capital projects must “go through capital outlay.” According to RS 39:2(9): (9) "Capital outlays" means expenditures for acquiring lands, buildings, equipment, or other permanent properties, or for their preservation or development or permanent improvement.

5. Capital Projects Facility Planning & Control Capital projects must “go through capital outlay.” Louisiana Administrative Code Title 34, Part III, Chap. 2 further limits Capital Outlay projects to those with a useful life of at least 20 years and costing at least $50,000.

6. Capital Projects Facility Planning & Control Based on the foregoing, two key features of Capital Projects have been established: 1. Permanent 2. Major

7. Capital Projects Facility Planning & Control A Capital Project must be Permanent. Permanent = Useful Life ≥ 10 years As defined by the Office of Statewide Reporting and Accounting Policy (OSRAP)

8. Capital Projects Facility Planning & Control A Capital Project must be Major. 1a. Complex in nature requiring the use of and coordination between different trades; or 1b. By statute requiring the services of a professional architect, engineer or landscape architect; and 2. A cost greater than $50,000. Minor: Not Major. Maintenance is Minor / Minor is Maintenance

9. Capital Projects Facility Planning & Control How is this applied to assets? We can represent this graphically.

10. Graphic Representation of the effects of Major and Minor Preservation

11. Capital Projects Facility Planning & Control What does all this mean?  Capital Outlay: Along with certain dollar thresholds specified in RS 39:128 and LAC Title 34, Part III, Chap. 2, this will determine which projects belong in Capital Outlay.  Procurement: Along with the provisions of RS 38:2212 this will determine how these projects are procured.

12. Capital Projects Facility Planning & Control Capital Outlay Dollar Thresholds: 1. Less than $50,000 - Cannot be, 2. $50,000 to $150,000 (Agencies)/$500,000 (Higher Education) – Can be, 3. More than $150,000/$500,000 – Gotta be. Regardless of means of financing.

13. Capital Projects Facility Planning & Control Our Model: The same model applies regardless of what prompts the action, whether it be planned development, normal deterioration or an acute incident. Means of Financing. We use the same model regardless of the means of financing.

14. When is a project just a project and when is it a

15. Capital Projects Facility Planning & Control Public Works Projects Statutory Definitions According to RS 38:2212: “All public work exceeding the contract limit …to be done by a public entity shall be advertised and let by contract to the lowest responsible bidder who had bid according to the contract, plans, and specifications as advertised, and no such public work shall be done except as provided in this Part.”

16. Capital Projects Facility Planning & Control Public Works Projects Statutory Definitions According to RS 38:2211(12): “"Public work" means the erection, construction, alteration, improvement, or repair of any public facility or immovable property owned, used, or leased by a public entity.”

17. Capital Projects Facility Planning & Control A Capital Project must be Permanent. Permanent = Useful Life ≥ 10 years As defined by the Office of Statewide Reporting and Accounting Policy (OSRAP)

18. Capital Projects Facility Planning & Control Definitions: Method of procurement will ultimately depend on  Major  Minor

19. Capital Projects Facility Planning & Control Definitions: Major: 1a. Complex in nature requiring the use of and coordination between different trades; or 1b. By statute requiring the services of a professional architect, engineer or landscape architect; and 2. A cost greater than $50,000. Here is a diagram:

20. Diagram Title 38 vs. Title 39

21. Capital Projects Facility Planning & Control Short Definitions Preservation – Restoration to working order of faulty components or systems. Corrective – Unscheduled activities to restore to working order prematurely failed components or systems. Preventive – Scheduled activities to prevent failure and maximize the useful life of the building. Construction/Improvement -Upgrading, renovating, improving or building a structure, facility or system according to a plan or definite process.

22. Capital Projects Facility Planning & Control Short Definitions Equipment: Built-in Equipment – Permanently attached to the building and without which the building will not function. Fixed Equipment – Attached to the building to secure it and contributing to the function of the building. Movable Equipment – Not attached to the building but necessary to the function of the building.

23. Capital Projects Facility Planning & Control A few reminders:  Facility Planning & Control is here to do Capital Projects.  Facility Planning & Control is not here to do routine or minor maintenance.  We are not here to do the so called “non-payable” contracts for the convenience of others.  If a project does not fit the definition of a Capital Project it must have another source of funding.  If it does, it must be capital outlay except for the gap between $50,000 & $150,000/$500,000.

24. Capital Projects Facility Planning & Control QUIZ

25. Capital Projects Facility Planning & Control 1. The Office of State Parks needs to replace a manager's residence that was demolished by a recent hurricane. The cost is $200,000. Is it permanent?  Yes  No Is it  Major or  Minor? Is it  Corrective or  Preventive Preservation,  Construction/Improvement or  Equipment? Is it capital outlay?  Yes  No Procurement and administration by:  FP&C  User Procurement Method:  RS 38  RS 39

26. Capital Projects Facility Planning & Control 2. The Department of Corrections wants to replace an emergency generator that was damaged beyond repair. The wiring, switch gear and fuel delivery system are intact. The cost is $120,000. Is it permanent?  Yes  No Is it  Major or  Minor? Is it  Corrective or  Preventive Preservation,  Construction/Improvement or  Equipment? Is it capital outlay?  Yes  No Procurement and administration by:  FP&C  User Procurement Method:  RS 38  RS 39

27. Capital Projects Facility Planning & Control 3. LSU-A wants to work on a chiller. The chiller is functional, but certain parts need to be replaced that are part of a regular maintenance schedule associated with the useful life of the chiller. Cost is $400,000. Is it permanent?  Yes  No Is it  Major or  Minor? Is it  Corrective or  Preventive Preservation,  Construction/Improvement or  Equipment? Is it capital outlay?  Yes  No Procurement and administration by:  FP&C  User Procurement Method:  RS 38  RS 39

28. Capital Outlay Facility Planning & Control 4. SU wants to replace a roof that has reached the end of its useful life. Cost is $300,000. Is it permanent?  Yes  No Is it  Major or  Minor? Is it  Corrective or  Preventive Preservation,  Construction/Improvement or  Equipment? Is it capital outlay?  Yes  No Procurement and administration by:  FP&C  User Procurement Method:  RS 38  RS 39

29. Capital Projects Facility Planning & Control 5. Office of State Buildings wants to replace the carpet in the Poydras Building (state- owned) in a particularly high use area. Cost is $90,000. Is it permanent?  Yes  No Is it  Major or  Minor? Is it  Corrective or  Preventive Preservation,  Construction/Improvement or  Equipment? Is it capital outlay?  Yes  No Procurement and administration by:  FP&C  User Procurement Method:  RS 38  RS 39

30. Capital Projects Facility Planning & Control 6. Office of State Buildings wants to paint the exterior of the Monroe State Office Building because of extensive damage by vandals. Cost is $200,000. Is it permanent?  Yes  No Is it  Major or  Minor? Is it  Corrective or  Preventive Preservation,  Construction/Improvement or  Equipment? Is it capital outlay?  Yes  No Procurement and administration by:  FP&C  User Procurement Method:  RS 38  RS 39

31. Capital Projects Facility Planning & Control 7. UNO wants to buy personal computers to replace ones destroyed by an electrical spike. Cost is $400,000. Is it permanent?  Yes  No Is it  Major or  Minor? Is it  Corrective or  Preventive Preservation,  Construction/Improvement or  Equipment? Is it capital outlay?  Yes  No Procurement and administration by:  FP&C  User Procurement Method:  RS 38  RS 39

32. Capital Projects Facility Planning & Control 8. SU wants to renovate an existing building by upgrading the electrical and mechanical systems and adding a contiguous addition for new office space. Cost is $900,000. Is it permanent?  Yes  No Is it  Major or  Minor? Is it  Corrective or  Preventive Preservation,  Construction/Improvement or  Equipment? Is it capital outlay?  Yes  No Procurement and administration by:  FP&C  User Procurement Method:  RS 38  RS 39

33. Facility Planning & Control Statewide Roofing Asset Management Program

34. Facility Planning & Control Statewide Roofing Asset Management Program The importance of Roofing Roofing failure is the biggest threat to any building. Most construction litigation is roofing related. That is why we have a Roofing Section.

35. Facility Planning & Control Statewide Roofing Asset Management Program Significant Changes Lack of adequate funding is forcing the Program to reduce its efforts at chasing leaks and other minor repairs and direct them toward capital improvements. The Program will continue to provide indefinite delivery/indefinite quantity contracts for roofing services but the user agencies will now be responsible for the cost. Agencies wishing capital outlay funding for roof replacements or repairs must submit capital outlay requests for them. The full text can found in the handout and the FY13 Capital Outlay Instruction Letter.

36. Facility Planning & Control Statewide Roofing Asset Management Program In order to make the most of the State’s limited roofing funding all state roofing assets will be placed into one of three groups with different levels of service from the Statewide Roofing Asset Management Program. Briefly, these groups will have the following characteristics.

37. Facility Planning & Control Statewide Roofing Asset Management Program Starting at the bottom: Level III: Covers: All State owned buildings not covered by Levels I & II Advice and technical information. Training in roof maintenance. Assistance with capital outlay request preparation.

38. Facility Planning & Control Statewide Roofing Asset Management Program Level II: Covers: All State owned buildings with flat/low slope roofs and special roofs not included in Level I. Services: All Level III Services Condition assessment. Recommended schedules for maintenance, capital preservation and replacement. Repair and maintenance services will be available at the user’s expense. Replacements and major repairs will be through capital outlay requested by the user.

39. Facility Planning & Control Statewide Roofing Asset Management Program Level I: Covers: All State owned buildings for which roof failure would threaten interruption of critical state services or damage to critical state resources and State owned buildings with roofs that require special expertise. Services: All Level II Services Eligible for Capital Preservation projects. Eligible for replacement based on our Five Year Plan if proper maintenance is exercised. Repair and maintenance services will be available at the user’s expense.

40. State of Louisiana Facility Planning & Control LOUISIANA CODE FOR STATE OWNED BUILDINGS

41. Facility Planning & Control Louisiana Code for State Owned Buildings Louisiana Building Code RS 40:1721 – 1724 Life Safety Code, Standard 101, 2009 Edition (Office of State Fire Marshal) Part XIV (Plumbing) of the State Sanitary (Office of Public Health) International Building Code, 2009 Edition International Mechanical Code, 2009 Edition National Electric Code (NFPA No. 70) 2008 Edition (Facility Planning & Control)

42. Facility Planning & Control Louisiana Code for State Owned Buildings ALL State owned buildings are subject to the Louisiana Code for State Owned Buildings. Mark Bell: 225 342-2069 mark.bell@la.gov

43. Facility Planning & Control Bill Morrison 225 342-0855 bill.morrison@la.gov http://www.doa.louisiana.gov/fpc/fpc.htm Thank you for your participation.