Capital Improvements Policies & Procedures

1. Capital ImprovementsPolicies & Procedures FY2015 Edition – rev. 1 (c)2014 Archdiocese of Los Angeles

2. Capital Improvements Construction • “Construction” Capital Improvement Projects • New Buildings / Structures • Existing Facilities & Buildings • Maintenance & Repairs • Additions • Renovations / Remodels • Major Property Insurance Claims involving Buildings (Replacement)

3. Planning & Preparation An Overview • Key Steps to Executing a Construction Capital Improvement Project (an overview) • Scope • Budget • Schedule • Funding • Approvals • Contracts • Payments

4. 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)

5. 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

6. Planning & Preparation An Overview • Budget • Project Phases & Costs • Design / Engineering • Plan Check / Permit Fees • Bidding • Environmental Hazard Abatement (if needed) • Construction Costs • Contingency

7. 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.)

8. Planning & Preparation An Overview • Schedule • Allocate adequate time for: • Approvals • Scope Definition • Design / Engineering • Drawings / Specifications • Requests For Proposal • Plan Check / Permits • Bidding / Multiple Proposals • Contracts • Construction • Close Out

9. 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

10. 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

11. Planning & Preparation An Overview • Approvals Dependent on Scope (if total project costs exceeds $20,000) • School Projects – Contact Department of Catholic Schools • Liturgical Projects – Contact ACC Office for Worship • May require review of Liturgical Design Review Committee (“LDRC”) Note: See Policies & Procedures section for more specific details and requirements.

12. Planning & Preparation An Overview • Contracts • Total Project Cost Less Than or Equal to $20,000 • Use Recommended ACC Small Construction Project Contract • Total Project Costs Exceeds $20,000 • Use Only ACC Standard Contracts • Contact the ACC Construction Department Note: See Policies & Procedures section for more specific details and requirements.

13. 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 for more specific details and requirements.

14. Policies & Procedures Capital Improvements • Requirements & Approvals • Consultants / Contractors / Vendors • Volunteers • Environmental Hazards • Resources

15. 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 • MajorProjects • 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

16. 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 • Minimum Insurance Requirement • Contract • Archdiocese recommends use of ACC Standard Small Construction Contract (available in Administrative Handbook on Archdiocese web site, under Publications)

17. 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 • Use instead of Contractor Proposals or Contracts • Suitable for General Contractors and Specialty Trade Contractors (i.e. Roofing, Plumbing, Electrical, etc.)

18. Minor Project Requirements Policies & Procedures: Requirements & Approvals • To obtain an Adobe PDF copy of the Contract, access the Archdiocese web site: • http://handbook.la-archdiocese.org • Select “Chapter 7 – Facilities” • Search for the link to the “Small Construction Contract”

19. 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

20. 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

21. 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 us • (213) 637-7850

22. Major Project Requirements Policies & Procedures: Requirements & Approvals > $1,000,000 $20,000 and <= $1,000,000 > $2,000,000 Required Approvals Same as left Funding Same as left Bidding Same as left Contracts ACC Modified AIA Agreement +Outsourced 3rd Party Project Manager Required Approvals Same as left + Archdiocesan Building Commission Funding Same as left +Archdiocese Cash Flow Model / Chart Bidding Same as left Contracts ACC Standard or ACC Modified AIA Agreement • 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

23. Major Project Requirements Policies & Procedures: Requirements & Approvals > $1,000,000 $20,000 and <= $1,000,000 > $2,000,000 Payments Same as left Closeout Same as left + Outsourced 3rd Party Project Manager Payments Same as left + Attach completed & signed AIA Payment Application (if contract issued on ACC Modified AIA Agreement) Closeout Same as left + Punch List (if contact issued on ACC Modified AIA Agreement) • 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

24. Major Project Requirements Policies & Procedures: Requirements & Approvals > $1,000,000 $20,000 and <= $1,000,000 > $2,000,000 Typical Projects New Buildings Large Scale Existing Building Renovations Conversion of Large Existing Buildings – Change of Occupancy & Use Typical Projects Existing Building Renovations Conversion of Existing Buildings – Change of Occupancy & Use Synthetic Turf Fields Site Improvements • 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

25. 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 ACC Education Department • Superintendent of Elementary Schools • Superintendent of Secondary Schools • Liturgical Projects – Contact ACC Office for Worship • May require review of Liturgical Design Review Committee (“LDRC”)

26. Major Project Requirements Policies & Procedures: Requirements & Approvals • Consultation & Review • ACC Construction Department • Funding • Parish/School has 100% of funds available for the project 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

27. 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 • Negotiated / Guaranteed Maximum Pricing (instead of Competitive Bids) requires prior approval of the Archdiocesan Building Commission

28. Major Project Requirements Policies & Procedures: Requirements & Approvals • Contracts • ACC Standard Agreements Only • Archdiocese Small Construction Contract • Custom Modified AIA Contracts • Construction Department prepares contracts on behalf of Parish/School

29. 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 an ACC Financial Services Department representative

30. 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 • Cost Data • Funding Review

31. 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 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

32. Major Projects > $1M Policies & Procedures: Requirements & Approvals • Typically NOT a Summer Project • Requires Extra Preparation Time Due To: • Planning • Additional Required Approvals

33. 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

34. 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

35. 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

36. 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 or Parish School) or Principal (Archdiocesan High School) • Candidates • Completes Pre-Qualification form including List of References • Evaluation and Interviews • Submits required Certificates of Insurance

37. 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

38. 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

39. 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 • Examples

40. 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

41. 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

42. Resources Policies & Procedures • ACC Construction Department • Contact Information • Phone: (213) 637-7850 • Email: construction@la-archdiocese.org

43. Resources Policies & Procedures • Publications & Guidelines • Administrative Handbook • Chapter 7: Facilities • Archdiocesan Building Commission Construction Policies • Construction Project Checklist • “Solar Panel Power System Advisory” dated March 30, 2011 • Issued to ALL Pastors, Administrators, Principals and Business Managers