PURPOSE: This rule sets forth the procedures and methods for defining projects and for determining fund allocation from state appropriations.

1. (1) Initial Coordination. The initial coordination for programs supported with Capital Improvement and Maintenance Appropriations will establish the basis for expeditious planning and timely completion of projects. The initial coordination will include program and project definition, project fund allocation and scheduling of design and project work. Each department/agency for which a Capital 1 CSR 30-3

Improvement and Maintenance Appropriation is provided shall provide the director with a written outline indicating the department/agency’s concept for implementing the program established by the appropriation. The department/agency, after coordination with the capital improvements manager in the Division of Design and Construction shall, submit the written outline within fifteen (15) calendar days after the appropriation is passed and signed. The initial coordination will be completed within forty-five (45) calendar days after the appropriations have been passed and signed.

1. (A) Program Manager. Each department/agency will designate a Capital Improvement and Maintenance Program Manager. The program manager will act for the department/agency in implementing the program established by appropriations.

   1. 1. Department/Agency. Within the guid-

ance provided by the policies of the department/agency, the program manager will have the responsibility and authority for internal coordination and approvals for projects in this program. The program manager will be familiar with the details of priorities, scope, cost and justification data in the budget submission of the department/agency.

1. 2. Division of Design and Construction.

As an alternative when a department/agency Capital Improvement and Maintenance Program is too small to justify the expertise necessary for the program coordination and supervision, the Office of Administration will consider a request to designate an employee of the Division of Design and Construction as the program manager. A memorandum of understanding establishing the conditions and responsibilities of each party and signed by the commissioner of administration and the department director must be accomplished. Based on the memorandum of understanding, the Division of Design and Construction will then manage the program and will provide coordination with the department/agency in defining projects and funding, as well as review of design and work on projects.

1. (B) Project Manager. The Division of Design and Construction will designate project managers by geographic area, agency, site/location or specific project as appropriate for all projects within the Capital Improvement and Maintenance Program.

   1. 1. Responsibility.

      1. A. Director, Division of Design and

Construction. The director will act as consultant, serving as the owner’s representative for all department/agencies. The director is the authority for determining scope and funding of projects and programs within the Capital Improvement and Maintenance Appropriations. The director shall carefully review the appropriation and, when s/he deems it appropriate, consult with the appropriation committees to determine the legislative intent. The director shall review and approve all payments for consultants or project work, plans, specifications, contracts and change orders under the program.

1. B. Project managers. The project

manager, within guidance provided by the director, will be responsible for professional and technical supervision of projects to include scheduling, coordinating, designing and accomplishing the work.

1. (C) Program Definition and Scheduling. The project manager will review, in coordination with the program manager, the program established by the Capital Improvement and Maintenance Appropriation. The purpose of this initial coordination is to review the department/agency program concept and determine the scope of the program and the scope of work for individual projects. During this review, priorities will be established for the individual projects along with requirements for coordination and scheduling of phases or elements of design, bidding and completion of the work for each project. This schedule will be used to monitor the progress of the program implementation.

   1. 1. Nonappropriated funds. Projects

involving nonappropriated funds, which result in acquisition or construction of facilities to be partially or fully operated and/or maintained by Missouri, are considered to be part of the Capital Improvement and Maintenance Program. Initial coordination for these projects shall be accomplished within forty-five (45) calendar days after notification or establishment of commitment or authorization for the projects. The program manager of the department/agency will advise the director of the notification or authorization so that initial coordination can be accomplished within the forty-five (45) calendarday period.

1. 2. Projects requiring state contracts.

Prior to acceptance of nonappropriated support funding for projects requiring state contracts, an agreement will be developed between the state and the donor or grantor. This agreement will include conditions for encumbrance, expenditure, fiscal control, project contracts, project management and project acceptance as well as the role and responsibilities of the state and the donor or grantor. The agreement and any subsequent changes shall be approved by the commissioner of administration or his/her designee. (2) Project Definition. Project, as well as program definitions, are established by the language of the appropriations and the budget submission.

1. (A) Appropriation Language.

   1. 1. Specific line items. Appropriation

items frequently define specific work items for a specific facility at a specific site/complex. Work items clearly within the scope defined in an appropriation line item may be scheduled and accomplished.

1. 2. Combination of budget items. An

appropriation line item may combine several budget items in a single broadly defined scope and provide a total funding for the combined items. Work items or projects scheduled and accomplished must be within the scope defined in the appropriation.

1. 3. Combination of appropriation items.

Work authorized by several appropriation line items may be combined into a single project when the director determines that this combination is in the best interest of the state. The director, in considering this combination, shall carefully examine the language of the separate appropriation line items to determine that the appropriation language does not prohibit this combination and that all work proposed is within the purpose and intent of the appropriations. The director, in defining this project, shall insure that the proposed scope of work for any item within the combined project does not exceed the scope authorized by the appropriation items. Combination of appropriation items may involve combining construction, maintenance and repair items into a single project under a single contract. With the concurrence of the Division of Purchasing, these combinations may also include items, such as personal property or installed function equipment, which are funded from operating budget appropriations.

1. (B) Budget Language. Budget items submitted to the legislature for review in the appropriation process have defined scope and purpose. Absent specific definitions of scope in the appropriation, the scope identified in the budget items will be used to establish project limits. Construction or maintenance/repair projects may not include items of work which are not a part of the approved scope.

1. (3) Project Fund Allocation. Expenditure limitations and fund sources are established by the language of the appropriations and the budget.

   1. (A) Appropriation Language. The appropriation language establishes the fund source (appropriation, donation, grant, etc.) and the expenditure limitations for a program, project or work item as defined in the appropriation. Expenditures must remain within the limitations specified in the appropriations.

   2. (B) Budget Item Cost Estimates. Absent contrary appropriation language, the cost estimates presented to the legislature in the budget will be used to define expenditure limitations for individual budget items. Expenditures shall not be made for work not included in the approved scope of work.

      1. 1. Limitations. Total expenditure for a

project defined in a single budget item shall not exceed the limitation defined in the appropriation or the budget item. Within the limitations established for an item in the appropriation and/or estimated cost in the budget, reasonable variations in cost for individual subitems (as indicated in the budget) will be permitted. Reasonable variations in cost for individual site/complexes (as indicated in the budget) will be permitted where several site/complexes are involved in a single budget item.

1. 2. Elimination of subitems. Subitems or

site/complexes included in a budget item will not be eliminated unless the scope and/or expenditure limitations for the budget item are reduced in the appropriation. Appropriation language will be examined to determine whether funding for specific subitems or site/complexes was denied or eliminated. Absent specific denials or exclusions in an appropriation which reduces funding requested in the budget submitted to the legislature, lesser priority subitems or site/complexes may be eliminated to bring the budget item within the expenditure limitations of appropriations.

1. 3. Combination of appropriation items.

Funding authorized by several appropriation items may be combined to fund a single project when the director determines that this combination may be in the best interest of the state. These combinations may be considered for similar work at several locations within a single department or for various items of work at a single location. The scope of work for this project and the items so combined shall remain within the total of the authorizations of the several appropriations. The director shall carefully examine the appropriation language to determine that the total of the funding for the combined project is within the total of the funding authorized by the appropriations. The director shall insure that the funding or expenditure from any appropriation item does not exceed the amount authorized by that appropriation item.

1. (C) Projects Involving Nonappropriated Funds. Fund allocation for projects involving appropriations by the general assembly and nonappropriated funds will be established in the initial coordination and specifically defined in the agreement between the state and the donor or grantor. This agreement will also establish the method for control and release of donated or grant funding to include final payment. The agreement and any subsequent changes shall be approved by the commissioner of administration or his/her designee.

1. (4) Exemptions. There are specific exemptions from requirements of this rule provided by the Missouri Constitution of 1945 and by statute.

   1. (A) Department of Highways and Transportation projects and expenditures for highway construction and highway maintenance are exempted from the provisions of this rule by Article IV, Section 29, Missouri Constitution of 1945.
   2. (B) Institutions of higher learning, community junior colleges and the Department of Conservation are exempted by section 8.310, RSMo from provisions of this rule which require coordination with, or approval by, the commissioner of administration, Division of Design and Construction or both for defining projects, determining fund allocation or for approval of contracts or payments.
2. (5) This rule becomes effective with appropriations for Fiscal Year 1983.

AUTHORITY: sections 8.310, RSMo Supp. 1987 and 8.320, RSMo 1986.* Original rule filed July 9, 1981, effective Feb. 15, 1982. Emergency amendment filed June 14, 1985, effective July 1, 1985, expired Oct. 29, 1985. Amended: Filed June 14, 1985, effective Aug. 26, 1985. *Original authority: 8.310, RSMo (1958), amended 1965, 1984, 1987 and 8.320, RSMo (1958), amended 1965.