Community College Capital Construction and Acquisition
(1)For the purposes of this rule, the following definitions apply:
(a)“Capital construction and acquisition” is defined as new construction, the purchase of existing buildings, remodeling, maintenance, equipment and Americans with Disabilities Act (ADA) projects;
(b)“New construction” is defined as the building of a new facility within the community college district or some significant addition to an existing facility;
(c)“Remodeling” is defined as the renovation, restoration, or repair of an existing college district facility, the result of which places the facility in a position to provide increased access for persons who are disabled, to accommodate new uses, or house expanded activities;
(d)“Maintenance” is defined as the renovation, restoration, repair, or replacement of any college district facilities system, or component part of such a system. Maintenance is distinguished from remodeling by the fact that it does not add to the value of the property or prolong the life of the property, but merely keeps the property in an operating condition over the useful life for which the property was acquired. Facilities systems include, but are not limited to, water systems, sewer and drainage systems, HVAC systems, light systems, road systems, electrical systems, carpets, floors, roofs, walkways, and parking lots;
(e)“Equipment” is defined as tangible personal property of a non-consumable nature, with a useful life of more than one year and a cost exceeding a dollar amount to be specified by the Office;
(f)ADA projects is defined as new construction, remodeling, maintenance or equipment needed to meet the requirements of the American with Disabilities Act as defined in Public Law 101-336;
(g)“Eligible Projects” is defined as any construction, remodeling, maintenance, ADA project, or equipment request not prohibited by state statute or administrative rule. ORS 341.933 (Distribution of state funds for capital construction)(1) prohibits the use of state funds for the construction of student or faculty housing, facilities for spectators at athletic events, recreational facilities, student health facilities, and noninstructional portions of student centers; and
(h)“Instructional Purpose” is defined as those activities that directly support classroom, shop, or laboratory teaching, basic skills teaching, customized training, tutoring, student testing and assessment, student advising or counseling, and library services.
(2)Colleges shall prepare five-year capital plans documenting their new construction, remodeling, maintenance, equipment and ADA project needs, and the projected costs of meeting these needs. These plans shall be updated every two years. After consulting with college officials, the Director or the Director’s designee shall prescribe forms and timelines for this planning process.
(3)The Commission shall rely upon the submitted capital plans for the development of capital construction requests made to the Department of Administrative Services and Legislature. The Commission shall approve all capital construction requests prior to submission to the Department of Administrative Services or Legislature.
(4)Unless directed otherwise by the Department of Administrative Services or the Legislature, the Commission’s new construction requests, remodeling requests, maintenance and equipment requests, and ADA projects that are new construction or remodeling projects as a package of prioritized eligible projects. Colleges shall have a right of appeal to the Commission before the new priorities are finally established.
(5)In its final budget request for new construction, remodeling, maintenance, equipment, and ADA projects, provided that the district has submitted an appropriate capital plan. Further, the Commission shall list these projects in priority order and assign higher relative rank to those projects that:
(a)Clearly serve an instructional purpose (first priority);
(b)Clearly meet an important demonstrated service need of the college (second priority);
(c)Clearly meet a facilities need that cannot be adequately addressed through alternative, interim, or existing facilities (third priority);
(d)Clearly serve to complete a comprehensive community college facility (fourth priority);
(e)Clearly meet an important and articulated objective of the college (fifth priority); and
(f)Clearly reflect evidence of local planning and needs assessment (sixth priority).
(6)Pursuant to ORS 341.937 (Capital improvements for access for persons with disabilities), and notwithstanding section (5) of this rule, the Commission shall include amounts for capital improvements in its budget request for each biennium that will be applied to the substantial reduction and eventual elimination of barriers to access by disabled persons. These capital improvements may include, but are not limited to, ADA projects. The Commission shall identify the projects as separate items on the list of capital construction projects that it submits to the Executive Branch or Legislature. The inclusion of the budget requests for these projects shall be made after consultation with the community colleges and their representatives of the disabled community at the colleges. The Commission may also include these projects on the prioritized list of projects referenced in section (5) of this rule.
(7)New construction, remodeling, and ADA projects that include new construction, maintenance, or remodeling shall be subject to the following special considerations:
(a)The cost of necessary initial equipment for a new or remodeled facility shall be an allowable expense within a new construction, remodeling or ADA project request;
(b)The acquisition of an existing facility shall be deemed a capital construction project within the meaning of this rule;
(c)The costs of acquiring land shall not be an allowable expense within a capital construction request in those cases where the capital construction project involves the acquisition of an existing facility. In those cases, the attendant land must represent the smallest practical parcel of land that will serve the acquired facility;
(d)Property subject to a leasehold interest by the college shall be eligible for remodeling funds provided the leasehold extends for at least five years beyond the date of any stated funded improvements;
(e)The value of district employee labor may be included as part of the district match requirement set out in section (9) of this rule provided:
(A)Accurate records are maintained to document the value of the contributed labor;
(B)Prevailing wage, licensing, and other applicable laws are observed;
(C)The contributed labor directly, and exclusively, serves the subject project for the claimed period; and
(D)The contributed labor involves work that is traditionally associated with the building trades.
(f)New construction projects must affect facilities within the boundaries of the requesting district. Remodeling projects in areas served under an existing contracted-out-of-district agreement shall be eligible projects provided such projects otherwise qualify under this rule.
(8)In addition to requests for new construction, remodeling and ADA project funds, the Commission may make requests to the Department of Administrative Services and the Legislature for equipment purchases. The Commission shall rely upon the submitted five-year capital plans for the development of such requests. The Commission shall consult with college officials prior to developing any proposed distribution methods for equipment funds. The Commission shall not request state funds for equipment purchases that would support programs associated with those ineligible facilities listed in ORS 341.933 (Distribution of state funds for capital construction)(1).
(9)Commission requests for state funds for capital construction projects shall not be less than 65 percent of the total cost for each project or purchase, unless a lesser percentage is established by the Director after consulting with the requesting college. The remaining amount of the total cost must come from tuition, local property tax revenues, bond issues, gifts, grants, or other sources. A community college district must provide an accounting of all funds expended for any project or purchase subject to this rule. The Director shall prescribe an appropriate accounting method.
(10)The board of a community college district applying for state funds appropriated for new construction, remodeling, maintenance, or ADA new construction or remodeling project purposes shall submit plans of the proposed project to the Director prior to receiving any appropriation for such project. These plans shall include pertinent construction or remodeling documents and cost estimates. Upon approval of the project plans by the Director, and any legislatively designated body, the district may proceed to obtain bids and award construction or remodeling contracts.
(11)Notwithstanding section (12) of this rule, the Director may waive the requirement that such plans be submitted if in the Director’s judgment the cost of developing such plans represents an unreasonable overextension of the college’s resources. In such cases, the college will submit reasonable estimates.
(12)Upon award of the new construction, remodeling or ADA project funding, the Director shall set aside those state funds appropriated for the project. The Office shall distribute project funds to the district in periodic payments related to the progress of construction or remodeling as determined by the Director. The amount paid to the district may not exceed:
(a)The state share of the capital construction and acquisition costs; or
(b)The amount appropriated for capital construction and acquisition costs, whichever is less.
(13)If, prior to completion of the capital construction and acquisition project, it is found necessary or desirable to substantially modify the contract or specifications covering construction or remodeling, the district must submit such modifications to the Director for approval.
(14)The community college district shall submit such records and reports during the construction or remodeling period and after completion thereof as the Director may require.
(15)The board of a community college district applying for state funds appropriated for equipment purchases shall prepare detailed descriptions of the purchases or projects. These descriptions shall be submitted to the Director along with pertinent specifications and cost estimates. Upon approval of the descriptions by the Director, and any legislatively designated body, the district may proceed to obtain bids and award contracts.
(16)Upon award of the grant to the college, the Director shall set aside those state funds appropriated for the equipment purchases. The Office shall distribute the equipment funds to the district on a schedule to be determined by the Director after consulting with the affected district. The amount paid to the district may not exceed:
(a)The state share of the equipment costs; or
(b)The amount appropriated for the equipment costs, whichever is less.
(17)If, at any time, it is found necessary or desirable to modify substantially a planned equipment purchase, the district must submit such modifications to the Director for approval.
(18)The community college district shall submit such records and reports during and after the equipment purchase as the Director may require.
(19)Title to any real and/or personal property items acquired under this rule is vested with the individual college receiving state funding at the time the college acquires the real and personal property.
Rule 589-003-0100 — Community College Capital Construction and Acquisition,