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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />5. Cost Estimates, Term of Project, Impact on City Operational Costs and <br />Departmental Rankings <br /> <br />Cost Estimates <br /> <br />Cost estimates will be prepared for each project that is submitted. Cost <br />estimates will be based on current costs as of the year the project request is <br />being prepared. Once the project has been rated and the recommended year to <br />complete has been identified, the Finance Department will apply an inflation factor <br />to the project. <br /> <br />Costs will be categorized into the following groups: <br /> <br />Land - Expenditures for the purchase of land, associated closing fees, <br />demolition of existing structures and other site improvements shall be <br />considered as capital improvements. <br /> <br />Design & Consulting - Expenditures for preliminary or feasibility studies, project <br />design, contract monitoring, and other miscellaneous consulting items that <br />relate to the project shall be considered as capital impro~~ments. <br /> <br />Construction - Expenditures for construction of new assets or the renovation of <br />existing assets are considered capital improvements. <br /> <br />Furnishings or Equipment - Expenditures for accessory equipment of a newly <br />constructed, rehabilitated, or acquired facility shall be included as capital <br />improvements. <br /> <br />Other - Any other project related costs shall be grouped into this category. <br />Items that might be included are bond administration costs for projects <br />funded with General Obligation or Revenue Bonds. <br /> <br />Contingency - Each major capital improvement project will have a budgeted <br />contingency equal to five percent (5%) of the estimated project <br />construction cost. This contingency will be used for those unforseen <br />expenditures that arise during the project construction period. <br /> <br />When preparing your cost estimates, it is suggested that you review the Chart of <br />Accounts that have been revised with the issuance of this Capital Improvement <br />Program Manual. . They can be found in Exhibit D. <br /> <br />Term of Project <br /> <br />At the time cost estimates are submitted for the project, the responsible <br />department will also provide an estimated term of the project. This time frame is <br />the expected actual time frame that the project will take from the time funding is <br />available until the project is complete. <br /> <br />6 <br />