Establish GF Capital Outlay Pilot Program (language only)

Item 4-5.08 #1s

Language
Page 597, after line 44, insert:
"f. The College of William and Mary, Radford University, the University of Virginia, and Virginia Polytechnic Institute and State University are authorized to enter into a pilot program for selected capital outlay projects through which each named institution shall be delegated all post-appropriation review, approval, administrative, policy and procedural functions performed by the Departments of Planning and Budget and General Services for capital projects supported in part or in whole from the state general fund or state-supported debt.  Delegation of authority under this pilot project is subject to the following stipulations and conditions:
1.  The following capital projects shall be eligible for the pilot program:
Educational Facility
Project Description
Amount
College of William and Mary
Renovate/Expand Marshall-Wythe Law Library
$11,821,000
Radford University
Renovate Young Hall
$4,716,000
University of Virginia
Renovate Cocke Hall
$6,000,000
University of Virginia
Construct Arts and Sciences Building
$14,284,000
Virginia Polytechnic Institute and State University
Construct New Engineering Facility (VTRI Phase I)
$13,996,000
Virginia Polytechnic Institute and State University
Improve/Expand Fine Arts Center and Renovate Henderson Hall
$6,542,000
2.  The Board of Visitors of each institution shall develop policies, procedures and guidelines for carrying out these capital projects, subject to the review and approval of the Secretaries of Finance and Administration.  The institutions shall submit any proposed policies, procedures and guidelines to the Secretaries of Finance and Administration no later than August 1, 2003.  The Secretaries of Finance and Administration shall review and provide comments to the institutions on the proposed guidelines and provide their final approval no later than October 1, 2003.
3.  The cost of each eligible capital project shall not exceed the appropriation or debt authorization provided in the Appropriation Act. The institution will be responsible for covering any cost overruns in the project through available nongeneral funds, excluding revenue from tuition and mandatory educational and general fees. Any supplemental appropriation must be approved by the Governor and General Assembly and is subject to
§4-4.01q of this act.
4.  Projects included in the pilot program shall be insured separately by the institution rather than through the state's risk management liability program.
5.  For projects funded through state-supported debt or other obligations, the institutions of higher education shall comply with (i) all financial and administrative requirements, as identified by the Secretary of Finance or his designee, to facilitate compliance with all legal requirements set out by the General Assembly (including those contained in Chapters 839, 888, 827, 859, 855, 814 and 899 of the 2002 Acts of Assembly), and (ii) all undertakings and covenants made by the institution associated with such debt or other obligations.
6.  The institution shall report to the Department of General Services the status of any capital project at the initiation of the project and prior to the commencement of construction.
7. Notwithstanding the provisions of §2.2-4309, Code of Virginia, no approval of the Governor shall be required for contract modifications as specified therein for the pilot programs of the selected institutions of higher education referenced in paragraph 3, provided that contract modifications of such projects, including construction and architectural and engineering change orders, do not require a supplemental appropriation from the general fund or change the scope of the project;
8. Pursuant to §4-4.01k of this Act, the Department of General Services must approve any increase or decrease in scope greater than five percent of the gross square footage of the building and any corresponding cost or savings associated with the requested scope change; and
9.  The Department of General Services, acting through the Division of Engineering and Buildings, shall continue to function as the State Building Official pursuant to §36-98.1 of the Code of Virginia for all capital outlay projects, excluding those at the University of Virginia Medical Center pursuant to Section 23-77.4 B.1. Nothing in this section shall be deemed to relieve the institution of any reporting requirements pursuant to §2.1-403 and §2.1-404 of the Code of Virginia."

Explanation
(This amendment is part of a package to delegate additional authority to institutions of higher education for handling administrative functions on campus. This amendment establishes a pilot program to decentralize the post-appropriation capital outlay process for selected projects financed with general fund or state-supported debt at four institutions. With the exception of final building inspection, institutions participating in this program will be exempted from central agency review of the project while under design and construction.)