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9.01          Capital Plans, Requests and Reports  

A.              Duties and Responsibilities of the Board of Regents include:  

1.      Review of long-range campus development plans.

2.      Approval of Five-Year Building Programs and capital appropriation request(s).

3.      Approval of annual capital plan.

4.      Approval of financing for capital projects.

5.      Review of capital issues.

6.      Receipt and/or approval of annual governance reports.  

B.       Long-Range Campus Development Plans  

                1.     Each university shall present an updated campus master plan, including land use plan, to the Board at least once every four years or when the university proposes changes in land use, or at the request of the Board.  The plan should indicate past, present, and anticipated development and note any significant changes from plans previously presented to the Board.   

                2.     The Campus Development Plan should include a description of all underutilized or unused space and the proposed modifications and future use of the space.  Leased space on or in close proximity to the campus should be listed.   

                3.     The Campus Development Plan should relate directly to the university’s strategic plan.    

      C.      Five-Year Building Programs (Plans)  

                1.     Five-Year State-Funded Building Program  

                        a.     The Board of Regents may submit annually to the General Assembly its Five-Year Building Program for state funds for each of the institutions under its jurisdiction.

b.     The building program may be revised annually.

                        c.     The Board Office shall coordinate the work of the institutions in preparing the Five-Year Building Program, including the format and date of submission.

                2.     All-Funds Five-Year Building Program

a.      An All-Funds Five-Year Building Program shall be presented to the Board annually and shall include major building needs anticipated to be funded by all sources.  A separate Five-Year Building Program shall be submitted for the University of Iowa Hospitals and Clinics.

b.      Any project with a budget expected to be in excess of $1 million should be shown separately.  Projects of lower cost can be aggregated by category (e.g., roof repairs, interior remodeling, fire safety, energy management).  For the first year of the Five-Year Building Program projects of $250,000 or greater should be listed separately.   

      D.      Capital Appropriation Requests  

1.      If the Board approves a Five-Year Building Program for state funds, the first two years will represent the Board’s biennial capital request and the first year of the Program will represent the Board’s annual request. 

2.      If the Board does not approve a Five-Year Building Program for state funds, the Board shall act separately on either a biennial or annual capital request.  Capital request criteria are outlined in Chapter 7 of this Manual (Section 7.03A2b). 

3.      The institutions shall submit recommendations of capital funding needs for consideration by the Board on forms provided by the Board Office.  The planning completed for the projects recommended should be sufficient to provide the Board with necessary information on the scope and cost of the project.  All projects subsequently funded will be subject to the capital improvement procedures as outlined in this Chapter.

      E.       Annual Capital Plan  

The institutions shall submit annually for Board approval spending plans for the upcoming fiscal year by project category in a format and on forms provided by the Board Office.

F.              Financing of Capital Projects  

                The Board of Regents has been granted statutory authority to finance capital projects in several ways.  Specific authorizations in Iowa Code include  Academic Building Revenue Bonds (Chapter 262A), Dormitories and other Self-Liquidating Facilities (Chapter 262), and Hospital Revenue Bonds (Chapter 263A).   

      G.      Capital Issues  

1.          Fire and Environmental Safety  

a.      Each year the institutions shall submit reports to the Board Office indicating the results of the latest State Fire Marshal’s inspection, the results of the latest Department of Labor or other environmental safety inspections, and programs completed or underway to correct deficiencies.  The report shall indicate the financial needs to correct outstanding deficiencies.  Financial needs are to be integrated into the annual capital request and the Five-Year Capital Plans.

b.      All institutions are required to notify immediately the executive director if any facilities within their jurisdiction have been cited for violations of any federal, state, or local laws or regulations or have been decertified or notified of the threat of decertification from compliance with any state, federal, or other nationally recognized certification or accreditation agency or organization.  

                2.     Deferred Maintenance and Improvements

       Deferred maintenance and improvement needs shall be considered in the institutional Five-Year Capital Program and capital appropriation requests.

          3.     Energy Conservation

a.      The institutions shall develop energy conservation plans.  Those plans should include the following components:

i.             Historical information on the pattern of energy consumption and the cost of energy consumed per square foot of building space.

ii.           Projections of energy consumption and unit prices.  

iii.          Methodology used to identify energy conservation project candidates and develop methods to determine which projects are economically feasible.  

iv.         Identification of specific energy conservation projects and the rate of return or payback period of those projects.  

v.           Possible means of financing the projects identified.  

b.      Consultant architects and engineers should be required to emphasize energy conservation and life cycle cost in all new construction and remodeling undertaken.  

c.      The institutions should review with the Board Office the means of financing energy conservation projects which have been identified.  

          4.     Strategies and Policies for Optimal Utilization of Existing Campus Facilities 

a.      Institutions should be as thorough and innovative as possible in their allocation and reallocation of space within their existing physical plants. 

b.      Each university should adopt general principles, consistent with the Board’s and each university’s strategic plan, regarding space assignment and scheduling of classes and should so inform the campus community.  Each university should also ensure that its policies and procedures regarding space are consistent with these principles.   

c.      The universities should use their appropriate campus committees to stimulate discussions on improving the utilization of campus space and facilities, and to provide recommendations to the university administration. 

d.      Space planning should continue to be an institutional responsibility and be part of comprehensive long range campus planning, which includes an analysis of the quality, quantity and location of the space. 

e.      Requests for new space should continue to be documented and justified on a functional need basis with a demonstration that the identified program need cannot be met more economically through more efficient use of existing space or renovation, consistent with the Board’s previous adoption of the capital project evaluation criteria.  

f.        Each university should review its existing utilization data when planning for new or renovated space; to the greatest extent possible, objective measures should be used to determine space needs.  These objective measures could include benchmarking data or objective models, supplemented by further analyses and specialized studies. 

g.     Each university should consider development of policies regarding office space for part-time employees, including adjunct faculty, graduate students and emeritus faculty. 

h.     Each university should keep and utilize for each new construction or renovation project guidelines for the size of offices. 

i.        Each institution should submit with its request to lease space in the general vicinity of the main campus, an explanation of the spaces on campus examined and found unsuitable.  

j.        Classrooms, class laboratories and other facilities should be designed and scheduled for optimal utilization given program needs and student expectations.  

k.      The universities should strive to design efficient facilities, providing for as much usable (net) square footage as reasonably possible within the gross square footage and program goals of the building. 

l.        For those facilities thought to be obsolete, the institutions should assess their buildings’ physical condition, contribution to the university’s heritage, adaptability to being efficiently renovated and reused, and viability of reuse versus replacement; based upon this assessment, each university should determine whether it is prudent to retain each of its obsolete structures.

H.       Governance Reports  

1.          Institutional Roads Program  

The Board will annually approve a Five-Year Institutional Roads Program in accordance with requirements of the Iowa Department of Transportation.  The program is to be developed in cooperation with the Iowa Department of Transportation, the Board Office, and institutional representatives.  

Projects financed through this program shall adhere to the capital project policies and procedures outlined in Section 9.18 of this Chapter.  

2.          Facilities Report  

Each year the institutions shall prepare a facilities report in a format provided by the Board Office.  

I.      Facility Stewardship 

  1. Naming Policy (Chapter 1, section 1.11) incorporates contributions for programs, annual operating or future capital renewal costs in addition to the costs of construction and renovation for named facilities.
     
  2. Institutional capital campaigns for private contributions are to include donor options for supporting annual operating costs and future capital renewal, as well as program initiatives that, when funded with private support, enable the university more readily to meet its educational mission by protecting the general fund and the core costs of facility stewardship, including operating costs and capital renewal.
  1. Annual operating costs of all major additions and new buildings

a.      Definitions and cost benchmarks established. 

b.      Preliminary cost and source of funds identified with the Permission to Proceed with Project Planning stage of Board consideration. 

c.      Revenue sources for annual operating cost support linked directly to uses of the facility and identified in the Board’s budgeting process. 

  1. Future capital renewal amount determined for each new major addition or building project for which the project budget has not yet been approved by the Board.

a.      Annual investment to be approximately 1.5% of replacement value to meet future capital renewal needs. 

b.      Amount and intended sources of future capital renewal funding to be included in submittals when the project budget is presented for Board action.  For example:

i.)      For a bonded enterprise, future funding for renewal could be obtained through either incremental increases in the “improvement funds” for the enterprise or through planned additional debt capital to be issued as the need arises. 

ii.)     For General Fund supported facilities, increments to the overall General Education Fund “building renewal (repair)” budget may be necessary to reflect the additional square footage (net of any facilities being taken off line or razed) within this category. 

iii.)   For historic or iconic facilities, private resources may be a source of future capital renewal, either through a current or a future capital campaign.