Capital Projects And Construction
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Basics

  • Budgets and budget process based on the principles we have covered so far but there are additional elements that need to be explored.
  • The purpose of a capital budget is to develop a financial plan directed at the funding of land, improvements, facilities, and equipment for future use.
  • Such budgets are multi-year and a separate capital budget document is prepared that outlines revenues for paying for the project as well as projected expenses.
  • Reason for separate budget is control and also clarifies the difference between debt that is incurred to purchase capital assets and debt that is incurred to pay for current operations.
  • Major elements of the plan are project planning, cost estimation and financing.
  • Planning in general consists of a comprehensive review of the replacement needs of existing facilities and equipment, ranging from 2 to 40 or more years. Thus not only applicable to buildings, but also to computer purchases for example.

Community Needs Assessment

  • Any large project begins with a community needs assessment
  • It gives a more complete picture of specific needs that will or could be met by the capital project
  • It helps to assess the ability to obtain funding through increased taxation

Capital Budgets and Financing

  • Is for major, nonrecurring items that have long life spans and may require multi-year planning.
  • Usually projected over a period of from three to ten years
  • Items usually have a minimum cost amount
  • Based upon library’s planning document
  • Is a plan and proposal for accomplishment
  • Will likely change over time

Site Acquisition and Development

  1. site prep
  2. utilities
  3. previous use (dump, gas station)
  4. building demolished first or at same time
  5. surface parking or garage

Project Conception and Cost Estimate

  • Seek advice
    • Danger of over- or under-estimating needs
    • How does the project meet community needs
  • Need for clear presentation of the problem that the project will solve

Professionals Involved

  • Professionals involved
    • Library building consultant
    • Architect
    • Contractor
  • Each of them comes with a cost

Capital Budgets and Financing

  • Is for major, nonrecurring items that have long life spans and may require multi-year planning.
  • Usually projected over a period of from three to ten years
  • Items usually have a minimum cost amount
  • Based upon library’s planning document
  • Is a plan and proposal for accomplishment
  • Will likely change over time

Site Acquisition and Development

  1. site prep
  2. utilities
  3. previous use (dump, gas station)
  4. building demolished first or at same time
  5. surface parking or garage

Project Conception and Cost Estimate

  • Seek advice
    • Danger of over- or under-estimating needs
    • How does the project meet community needs
  • Need for clear presentation of the problem that the project will solve

Professionals Involved

  • Library building consultant
    • The program specifies how much space of what kinds and in what juxtapositions your library needs.
    • The program should also include a review of the existing facility, a statement of required equipment for each space, and information on the special architectural needs of libraries.
  • Architect
    • Architects tend to view projects in terms of problems and their solutions. From this perspective, programming consists of defining the problem. The consultant provides the program.
    • The Architect works from the program prepared by the consultant. It may be modified by the architect, but the program lays out in written form your needs, from which you can more clearly identify what needs to be done.
  • Contractor
    • Construction cost estimation based on architect’s plans
    • Project cost estimation
    • Once you have a cost estimate, you can determine what funding is needed and the sources of that funding
  • Each of them comes with a cost

How will we pay for it?

  • Property or ad valorem tax
  • Grants
  • Fundraising (used book sales, capital contributions, donations, cash and in kind, gift policies)
  • Investments – maximum return with minimal risk

+Planning Example

Cost Estimation

  • Process goes from concept, to infrastructure elements involved in the concept (plumbing, HVAC, electricity, communications), to costing of alteration of infrastructure elements, to conceptualization of interiors, furniture and equipment, to costing of these elements
  • For something as “simple” as an electronic classroom see Hinchliffe, Lisa Neil Schumann Electronic Classroom Handbook
  • General guidelines
  • 75% is cost of construction
  • 11% will cover equipment and furnishings
  • 7% will cover site preparation
  • 7% will cover other costs
  • Cost estimation simplified is web site funded by IMLS www.librisdesign.org/docs/cost_estimating.doc?bbatt=Y

Accounting Control

  • Two types of funds may be affected besides the General Fund
  1. Debt Service Fund – to repay the debt
  2. Special Fund – to keep track of revenue sources and interest earned on unspent revenue as well as expenditures over the life of the construction project. Once the project is completed, the Special Fund is closed out in the period when the project ends.

7 Deadly Sins of Library Architecture

  1. Bad lighting
  2. inflexibility
  3. bad location
  4. complex maintenance
  5. insufficient work and storage space
  6. bad security
  7. signature architecture

Library Construction Process

http://urbanafreelibrary.org/about/affiliations/presentations/construction/

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