Memo No. 97-07 CIP Funds, 6/19/1997 - Appendix B regarding equipment qualifications

Information from Brenda 5/1/2023:

1) background on CIP furniture funding:  CIP furniture is no longer budgeted as part of the CIP project due to the timeline of funds (if the project goes to bid right before the lapse date then Equipment funds from the same appropriation can be blanketed - but only for 3 years until the "hard lapse" & sometimes that isn't enough time (given permitting, construction duration, furniture delivery & time to pay invoices) so starting with Act 53/SLH2018 the CIP budget included a Lump Sum appropriation for CIP Equipment - which then could be used for whichever projects were finishing up construction, and needed to order furniture in the time that funding was current (& including the 3 years of blanketed funds). 

But the Lump Sum Equipment line item was only provided that year. Even though there was a budget request for L/S CIP Equipment in the FY19-21 Biennium Budget request, the Legislature chose to include funds for equipment under the L/S Project Completion line item, so in Act 40/19 (& thereafter) furniture needs to be budgeted by FDB under Lump Sum Project Completion language  "Plans, land acquisition, design, construction, and equipment for project completion..."

So that is just some background that when schools ask about furniture being funded by the project, we actually have to think bigger picture and be sure we have recurring funds to fund furniture as projects get close to completion.  (This has also been a timing challenge in recent years given supply chain issues.) But to answer schools, during design the architect should include furniture plans - even though the contractor providing items but to show the locations and coordinate the utility connections - which leads to issue 2

2) furniture versus program equipment:

There's a difference between what CIP projects provide for new buildings in terms of furniture and equipment and what schools need to provide.  While outdated, the EDSPECS tried to explain this for each room under part xxx.5 for Non Built-in Furniture and Equipment.  There are 2 ways these items are provided CFCI = Contractor Furnished & Contractor Installed (ie part of the base bid documents & provided by the Contractor), and SFSI items which are State Furnished State installed. The confusion comes with these SFSI items because there are 3 ways these are funded, so the EDSPECS listed them with either a C, P or E designation. 

"C" items are paid with Cash and these are the Position Related items (typically OFO pays for these with cash funds appropriated each year to Auxiliary Services Branch although lately these funds have been going to pay overages on electricity & haven't been available.  Derek is sometimes able to find funds or schools have been asked to pay for their own position related furniture.

"P" items are paid for by CIP Equipment funds

"E" items are the Program Equipment items that schools need to purchase themselves - typically because these are items can change from school to school based on how they run their programs.  The Design team needs to know what they plan to purchase in order to account for the proper space/location and utility connections on the drawings. The EDSPECS refer to a website where there was an annual Program Equipment List put together by OCID, but the link doesn't work & they haven't updated their list for ~10 years.

Architects should include furniture plans for new buildings, along with identifying CFCI & SFSI items & SFSI items should be further identified with either a C, P, or E so folks will know who is respnsible for providing the item.

3) timing of furniture & equipment budgeting versus ordering

FDB needs to improve how we budget CIP funds for furniture, and how we notify Pat about the project so it can get on his timeline.  The Precon meeting is not the time Pat needs to think about ordering furniture, since most new buildings take 2 years to construct. But we do need to provide Pat a list of projects that go to bid and maybe get CPT to generate a list of projects with "Adj End Dates" listed  (that type of list could then be filtered & ranked for projects needing furniture and then he can keep track as the end dates might get adjusted over the course of construction.

FDB also needs to coordinate with ASB & OFO on the operating funds budget for both the School Furniture line item ("C"/position related - not allowed to use CIP bond funds) and the line item for "Resources for New Facilities" which then gets parcelled out to schools with CIP projects close to completion so they can fund their program equipment needs.