Ill. Admin. Code tit. 71, § 50.120 - Standardized Definitions and Guidelines
The following standardized definitions and guidelines enumerate the appropriate utilization of Capital Development, School Construction, General Obligation and Build Illinois Bond proceeds appropriated to the Board to finance bondable capital improvements as listed in Section 50.110(b) above.
a) Planning. Bondable planning costs include
those expenditures that are related to architectural and engineering design
required for planning the construction or installation of bondable capital
improvement projects. Included are costs for schematic design development,
which refers to preliminary studies developed from program statements that
reflect the general functional characteristics and architectural requirements
of a bondable capital improvement project; costs for definitive design
development, which means the refinement of schematic design into final detailed
design requirements; and costs incurred for the completion of construction
documents and detailed working drawings required for bidding and construction,
including any allowable reimbursables provided within an executed contract for
professional and technical services.
b) Land. Land includes expenditures for the
acquisition of real property (including easements of record with an extended
term, but excluding any leasehold interests obtained through rental of real
property), whether obtained by purchase or by condemnation under the applicable
eminent domain laws of the State of Illinois, and for all expenses directly and
necessarily related to such purchase or condemnation. All necessary and
reasonable expenses incurred in the acquisition of real property qualify for
bond financing. Such expenditures may include but are not limited to the
following:
1) land costs
2) appraisal fees
3) title opinions
4) surveying fees
5) real estate fees
6) title transfer taxes
7) condemnation costs and related legal
expenses.
c) Buildings,
Additions, and/or Structures. Buildings, additions and/or structures shall mean
and include those facilities with a roof and/or walls that have a foundation.
This category also includes site developments necessarily required or related
to the preparation of a site for construction purposes; and required built-in,
special-purpose, or other fixed equipment, which is permanently affixed or
connected to real property in such a manner that removal would cause consequent
damage to the real property to which it is affixed. All expenditures that may
be classified within the category defined shall be bondable.
d) Utilities. In general, the category
utilities shall mean and include expenditures for the acquisition,
construction, replacement, modernization, and/or extension of systems for
distributing or disbursing utility services. Bondable utility costs may include
but are not limited to the following items:
1)
provisions for potable water, high-temperature water for sanitary or other
related purposes, domestic hot or chilled water;
2) systems and associated components for
disbursing or distributing electricity or providing telecommunications service,
including underground or overhead distribution cables for television,
computers, or other modes of communication;
3) steam and condensate returns;
4) storm and/or sanitary sewers;
5) fire hydrants and stand pipes;
6) central fire and security alert
systems;
7) exterior
lighting;
8) tap-ons or extensions
related to existing utility systems;
9) automated temperature/environmental
control systems, and air and water pollution control systems;
10) provisions for the disposal of scientific
contaminated waste and surgical waste;
11) solar heating or other approved energy
systems;
12) sewage and water
treatment facilities, equipment and related distribution systems;
13) earth moving to create artificial lakes
or reservoirs for utility or related conservation purposes;
14) restoration of natural and/or man-made
features of the site of any utilities installation to its original
condition;
15) trenches or ditches
dug for the purpose of laying tile or providing ducts to remove excessive
rainfall and prevent erosion.
e) Durable movable equipment
1) Durable movable equipment shall mean
initial movable equipment, including all items of initial equipment, other than
built-in equipment, that are necessary and appropriate for the functioning of a
particular facility for its specific purpose, and that will be used solely or
primarily in the rooms or areas covered in the subject project. Further, such
equipment is defined as manufactured items that have an extended useful life,
are not affixed to a building and are capable of being moved or relocated from
room to room or building to building, are not consumed in use, and have an
identity and function that will not be lost through incorporation into a more
complex unit.
2) In applying the
above definition, reference should be made to the State Finance Act [30 ILCS
105 ], and the distinction between commodities (Section 15b of that Act) and
equipment (Section 20) as defined by that Act. Within the context of that Act,
the following guidelines should be applied in defining durable movable
equipment:
A) Bondable
i) Office/household equipment and furniture
will be bondable.
ii) Machinery,
implements and major tools will be bondable.
iii) Scientific instruments and apparatus
will be bondable when they have a useful life similar to office
equipment.
iv) Transportation and
installation costs incurred with an outside source will be considered part of
the equipment cost for items funded by the Board.
v) Equipment not otherwise classified will be
considered bondable provided it meets all other guidelines.
vi) Significant useful life should be
considered a minimum of 10 years.
B) Non-bondable
i) Scientific apparatus items that are
subject to short useful life, such as glassware, tubing, crockery and light
bulbs are not bondable. These items are more correctly defined as
commodities.
ii) Library books,
maps, and paintings other than those purchased in the Art in Architecture
program [20 ILCS
3105/14 ] are not fundable from bond funds.
iii) Livestock, for any use, is not fundable
from bond funds.
iv) Rolling stock,
including boats, cars, trucks and related items, are not fundable from bond
funds.
v) Spare and replacement
parts should be considered commodities.
vi) No commodities shall be purchased from
bond funds.
f) Site Improvements. Site Improvements means
and includes expenditures for all improvements to real property that are not
otherwise included within the category of buildings, additions and/or
structures (subsection (c) of this Section). Bondable site improvement
expenditures shall include all above costs incidental to demolition, rough and
final grading of a site, and the construction or replacement of sidewalks, road
and driveway pavement surfaces, bridges, ramps, curbs, overpasses, underpasses,
pedestrian bridges and tunnels, surface parking areas, campground development,
building terraces, retaining walls, exterior lighting, and seeding or sodding
for erosion control only if related to a bondable capital improvement
project.
g) Remodeling and
Rehabilitation
1) Bondable remodeling and
rehabilitation means and includes expenditures for all capital improvements
that have the primary objective of altering the functional capabilities of a
structure or facility.
2)
Remodeling shall include all capital improvement projects that have the primary
objective of changing the functional character of areas, modifying capacity for
the number of persons who can be accommodated, and/or altering spatial
relationships.
3) Rehabilitation
shall include all non-recurring capital improvement expenditures having the
primary purpose of restoring or upgrading an existing area to original
operating condition. Recurring expenditures for repairs and/or maintenance that
are predictable or reflect regular attention in preserving or keeping a
facility in ordinarily efficient operating condition or arresting deterioration
without appreciably upgrading, improving, or increasing the value of a
facility, shall be considered non-bondable repair and maintenance
expenditures.
h) Direct
Costs Associated with the Issuance of State General Obligation Bonds. Costs of
this nature shall include expenses associated with advertising, printing, bond
rating, security, delivery, legal and financial services, and all other
expenses necessary and incident to the issuance of State General Obligation
Bonds.
Notes
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