(A) Authority
This rule is established by authority conferred upon the
chancellor of higher education in the appropriation and reappropriation acts
for capital improvements adopted by the general assembly as well as sections
3345.50 and
3345.51 of the Revised
Code.
(B) Policy
The chancellor will recommend to the office of budget and
management and controlling board the release of capital appropriations if it
finds that:
(1) The use of funds
requested for release corresponds substantially to the use of funds described
in a program plan which has been submitted to and approved by the chancellor of
the board of regents
department of higher education; and
(2) The institution stipulates that its
request for release of funds meets the pertinent provisions of law, rules,
regulations, and procedures which govern the implementation of capital
improvements projects.
(3) Where
the improvement is locally administered, the institution is executing the
authority for local administration of the project in accordance with either
rule
3333-1-24 or
3333-1-28 of the Administrative
Code.
(C) Program plan
As a condition precedent to recommending the release of capital
appropriations, a program plan for the project must be submitted to and
approved by the chancellor, except when a bona fide emergency condition arises
which makes the submission of a program plan impractical.
(1) The form and content of a program plan
shall be established by the chancellor; the form and content may vary,
depending upon the relative complexity of a particular project.
(2) Once a program plan has been approved,
any significant modifications proposed must be submitted to and approved by the
chancellor.
(3) The following
criteria, when applicable to a project, shall be used to evaluate a program
plan:
(a) Expenditures must be for capital
improvements.
(b) The project scope
must meet the intent and purpose of the appropriation.
(c) The location and positioning of the
project should be in accord with a campus master plan or, in the absence of a
master plan, should harmonize with the existing campus environment.
(d) The size, capacity and arrangement of the
project should meet projected enrollment and programmatic needs.
(e) Project design should provide maximum
flexibility to meet future facility requirements.
(f) Project design should give priority to
development or renovation which yields the maximum amount of usable or net
assignable space and a minimum amount of unusable or nonassignable
space.
(g) Project design must be
such that the project can and will be completed, including necessary equipment
and furnishings, and ready for full occupancy without exceeding appropriated
funds; should the project budget exceed appropriated funds, the institution
must either supplement funding from its own resources or revise the scale or
scope of the project to bring the budget into balance with appropriated
funding. Project design should take into account the potential need to
eliminate or defer project elements by establishing alternate construction
packages which may be accepted or rejected, based on budgetary constraints. If
a program plan is approved containing elements which could lead to costs
exceeding appropriated funds, such approval shall not imply that any additional
state funding, either through transfers from other appropriations or from
future appropriations, is or will be supported by the chancellor of higher
education.
(h) Design must give
priority to meeting applicable building and safety codes.
(i) Design should seek ways to minimize
increases in operating costs or, if possible, reduce operating costs.
(j) Design should maximize energy efficiency
to provide for energy resource conservation.
(k) If not already accessible, renovated and
new facilities should meet the requirements of the Americans with Disabilities
Act.
(D)
Compliance with law, rules, regulations, procedures
The chancellor of higher education, as a condition precedent to
recommending the release of capital appropriations, will monitor institutional
requests for funding releases to determine whether it appears that the
institution has substantially met requirements of laws, rules and regulations
related to the administration of a capital facilities project. Such monitoring
will be performed primarily to see that necessary steps have been taken which
can facilitate and expedite action by the director of budget and management and
the controlling board in releasing the requested funds. Should it appear that
provisions of a law or rule may not have been met, the chancellor will advise
the institution. In addition, the chancellor shall monitor the applicable
projects in accordance with the provisions of rule
3333-1-30 of the Administrative
Code pursuant to division (D) of section
3345.51 of the Revised
Code.
Monitoring will include, but not be limited to, applicable
provisions of the capital appropriations or reappropriations acts and the Ohio
Revised Code, and rules or procedures pertaining to capital improvements
projects established by the Ohio public financing commission, controlling
board, office of budget and management, and the department of administrative
services, general services division.
(E) Capital projects - facilities not owned
by state or institution
Prior to recommending release of capital funds to institutions
for facilities which, because of their unique nature or location, will be owned
or will be part of facilities owned by a separate nonprofit organization or
public body, the institution shall submit and the chancellor shall approve a
joint use agreement which shall include provisions that:
(1) Specify the extent and nature of the
space to which the institution is to be granted rights for use in its
educational programs and the terms and conditions governing such use.
(2) Specify that the term of the agreement
shall be for at least twenty years.
(3) Provide for reimbursement to the state
should the institution's right to use the facility be terminated by the
nonprofit organization or public body prior to the expiration of the
twenty-year term, which reimbursement shall be calculated by dividing the funds
contributed by the state of Ohio by twenty and multiplying that sum by twenty
less the number of full years the facility is utilized by the
institution.
(4) Provide that the
nonprofit organization or public body comply with all pertinent federal, state
and local laws as well as state administrative regulations.
(5) Specify that funds shall be used only for
capital improvements as defined in the bill appropriating such funds.
(6) Identify the facility to be constructed,
renovated or improved.
(7) Identify
the ownership of the facility or the basic terms of the leasehold by the
nonprofit corporation or public body.
(8) Specify that the nonprofit corporation or
public body shall hold the institution harmless from all liability for the
construction, operation and maintenance costs of the facility.
(9) Require the nonprofit corporation or
public body to follow competitive bidding procedures which include, as a
minimum, publishing advertisements to seek bids, receiving sealed bids, and
awarding contracts to the lowest responsive and responsible bidders.
(10) Provide for reimbursement to the
institution for administrative costs incurred as a result of the project, which
sum shall equal one and one-half per cent of the appropriated amount.
(11) Provide that amendments to the agreement
shall require approval by the chancellor of higher education.
Notes
Ohio Admin. Code
3333-1-03
Effective:
5/25/2020
Five Year Review (FYR) Dates:
3/5/2020 and
05/25/2025
Promulgated
Under: 119.03
Statutory
Authority: 3333.04
Rule
Amplifies: 3345.50,
3345.51
Prior
Effective Dates: 10/13/1975, 06/03/1978, 05/03/1979, 05/07/1982, 02/02/1985,
12/30/1988, 06/11/2007, 02/06/2014,
07/16/2017
