Following are the principles and procedures for approval of proposed capital outlay projects:

1. A. All projects submitted for department approval must have the prior approval of the institution's governing board.
2. B. Proposed projects should be consistent with the institutions long-range capital planning as presented in the institutional plan.

3. C. All projects that fall under the following categories must be submitted to the department for approval:

   1. (1) any purchase of real property;
   2. (2) any project which results in the addition of square footage, whether from construction or long-term lease of a new facility or a building addition, or purchase of portable buildings;
   3. (3) any proposal to issue bonds;

   4. (4) the approval authority for any alterations or site improvements is as follows, based on total project cost:

      1. (a) For institutions with FTE enrollments of 1,500 or less:

         1. (i) over fifty thousand ($50,000) - staff approval;
         2. (ii) over three hundred thousand ($300,000) - capital outlay committee approval;

      2. (b) For institutions with FTE enrollments over 1,500:

         1. (i) over three hundred thousand ($300,000) - staff approval;
         2. (ii) over five hundred thousand ($500,000) - capital outlay committee approval;
         3. (iii) Exception: The New Mexico institute of mining and technology will be included with the over 1,500 FTE institutions when a particular project is entirely funded by restricted funds.
      3. (c) In determining the total project cost, in-house labor costs and burden, along with all materials, subcontract costs, and reasonable charge for owned equipment, must be included.
      4. (d) Projects may not be artificially segmented or phased in a manner designed to avoid review by the Department.
   5. (5) Any demolition of an existing building must be submitted for approval by the department staff.

[5.3.10.8 NMAC - Rp, 5.3.10.8 NMAC, 10/31/2017]