Northern Illinois University
Board of Trustees

Subsection A. Real Property

The Board of Trustees is the legal entity for all transactions involving interests in real property for the university. No real property shall be acquired or conveyed without Board approval.

1. Classification

For the purpose of this Regulation, transactions involving interests in real property are classified as follows:

a. Acquisition

Acquisition includes any contract, agreement, deed or other document legally sufficient to acquire title to real property, including any lease which contains an option to purchase real property. Acquisition may occur by purchase, gift, eminent domain or any other method by which title to real property is transferred.

b. Conveyance

Conveyance includes any contract, agreement, deed or other document legally sufficient to transfer an interest in real property, including any easement or lease which contains an option to purchase real property. Conveyance may occur by sale, gift, eminent domain or any other method by which title to real property is transferred.

c. Lease

A lease is a contract vesting exclusive, continuous possession of real property for a specific term. This category includes situations in which the Board acts as lessor or situations in which the Board acts as lessee.

d. License

A license is a privilege to use real property on a temporary or occasional basis, including the rental of lodging in connection with official travel. A license does not operate to confer on, or vest in, the licensee any title, interest, or estate in such property. Licenses for the use of real property where the Board is "licensee" shall be treated like Purchases in accord with Section V.B.1.a. of these Regulations.

2. Approval Requirements

a. Acquisitions

No property shall be acquired except with Board approval. When the university determines that it wishes to acquire real property, the president shall make a report and recommendation to the Board which shall include an assessment of facilities need, physical and structural review of the premises, and the results of an appropriate review of the proposed transaction for legal sufficiency.

b. Conveyances

No property shall be conveyed except with Board approval. When the university determines that it wishes to convey an interest in real property, the president shall make a report and recommendation to the Board.

c. Leases (Board as Lessee)

• (1) Transactions involving an obligation in the aggregate of $250,000 or more, regardless of the source of funds, shall be approved by the Board. The president is authorized to enter into all other leases of real property.
• (2) In cases in which Board approval is required, the university shall provide an assessment of facilities need, physical and structural review of the premises and an appropriate review of the proposed transaction for legal sufficiency.
• (3) Except under well-justified special circumstances, the university shall follow principles of openness and competition in negotiating leases, designed to assure the best overall economic value is being obtained for the university.
• (4) "Lease obligations" shall include all costs identified in the lease agreement to be paid by the university including, but not limited to, rents for the initial and any option term, reasonably estimated utilities, janitorial or maintenance services, insurance, taxes, improvements, remodeling or renovation.

d. Leases (Board as Lessor)

• (1) Transactions involving an obligation in the aggregate of $250,000 or more and any real property transactions involving multiyear obligations in excess of three years shall be approved by the Board. The president is authorized to enter into all other leases of real property.
• (2) In cases in which Board approval is required, the university shall make a report and recommendation to the Board which shall include an appropriate review of the proposed transaction for legal sufficiency.
• (3) "Lease obligations" shall include all the income identified in the lease agreement to be received by the university.

e. Child Care Services

Prior to seeking Board approval for the acquisition or lease of any facility in which more than 50 persons shall be employed, the university shall carry out an assessment of child care needs for such employees. The assessment of child care needs will be in accordance with standards and criteria as adopted by the Board. The assessment of child care needs will accompany any request for Board approval of said facility.

3. Signature Requirements

All documents involving interests in real property approved by the Board shall be signed by the chair and the secretary. The president, the treasurer and assistant secretary are authorized to sign on behalf of the chair and secretary provided no one official may sign both names to the same document. Documents subject to approval by the president shall be signed by the president. The president is authorized to delegate in writing the authority to sign such documents to members of the university staff.

4. Reports on Obligation of Financial Resources

The president shall provide the Board with the following reports on transactions involving real property:

a. Quarterly Reports

The president shall provide quarterly reports of all transactions involving real property greater than $100,000 but less than $250,000.

b. Annual Report on Capital Activities

At the conclusion of each fiscal year, the president shall provide the Board with a summary of all transactions involving real property conducted during the fiscal year by category.

5. Disclosure of Beneficial Interests

Contracts for real property where a state official, a university employee, or the spouse, child, or other relative of an official or employee has a beneficial interest in the property shall be presented to the Board for approval. The following information shall be presented to the Board prior to considering approval:

a. Identification of the official or employee or the relative having a beneficial interest in the transaction.

b. Verification by the president that the transaction in question is at arm's length with consideration not in excess of fair market value and consistent with good business practices.

Subsection B. Capital Projects

1. Project Approval

All capital improvement projects and/or transactions for equipment and materials or other services associated with capital improvement projects with project budgets of $250,000 or more, regardless of the source of funds, and all capital improvement projects, regardless of budget, involving significant new space or significant programmatic expansion shall be approved by the Board of Trustees prior to the development of preliminary plans and specifications. The budget shall include all fees, reimbursements, construction costs, contingencies and, where applicable, the cost of associated equipment and materials or services. Any project for which the bid estimates or the actual bids exceed the approved budget must be resubmitted to the Board for approval. Capital Development Board projects, authorized by the legislature, shall not require Board of Trustees approval, but shall be included in the university's progress reports. The president is authorized to enter into all other capital improvement projects.

a. All capital improvement projects which are approved by the Board and funded in whole or in part from nonappropriated funds shall also be submitted to the IBHE as required by the IBHE "Non-Instructional Capital Improvements Policy" except as follows:

• (1) Rehabilitation of existing facilities.
• (2) Equipment purchases which are a part of the ongoing operation and not concerned with a new or extensively remodeled facility.

b. The employment of all architects and engineers for projects of $250,000 or more shall be approved by the Board.

c. A progress report on projects in excess of $500,000 shall be presented to the Board at completion of the design development phase.

2. Signature Requirements

Subject to the administrative approval provided herein, the president is authorized to sign all contracts and other agreements on behalf of the Board. The president is authorized to delegate in writing the authority to sign contracts and other agreements to members of the university staff.

3. Emergency

In cases of emergency the president may approve construction projects which would ordinarily require Board approval with concurrence of the Board chair. These emergency construction projects shall be reported to the Board.

4. Change Orders

In accordance with the provisions of "The Illinois Purchasing Act," no change order to any contract may be approved unless the additional work to be performed or material to be furnished is germane to the original contract. Change orders shall be approved in accordance with the following:

a. Board Approval

If a change order will result in a financial obligation in excess of the contingency amount approved by the Board, a revised project budget shall be submitted to the Board for approval. All other change orders may be approved by the president. The president is authorized to delegate in writing the authority to sign change orders to members of the university staff.

b. Emergency Approval

In cases of emergency, the president may approve change orders which will result in a financial obligation in excess of the contingency amount approved by the Board with the concurrence of the Board chair. The revised budgets shall be reported to the Board.

c. Capital Development Board Approval

If the total combined additional expenditures or obligations under a change order exceed the percentages of the original contract set forth in "The Illinois Purchasing Act," the change order shall also be submitted to the Capital Development Board for approval.

5. Procedures for Capital Projects

a. Selection of Architects, Engineers, and Land Surveyors

The university shall utilize the Board of Trustees "Procedure for Selection of Architects, Engineers and Land Surveyors" as required by Public Act 87-673 when considering these consultants for employment.

b. Fee Schedule

The Capital Development Board A/E Professional Services Fee Handbook shall be used as a guide when determining fees to be paid to architects and engineers employed by the Board.

c. Observation

The university shall provide adequate field observation to ensure performance of contract documents on construction projects. The field observer shall act in the best interests of the university to advise the university if it appears that contract performance is not satisfactory. The university field observer shall in no way usurp the authority and responsibility of the project architect or its representatives.

d. Child Care Services

In connection with the construction of any facility in which more than 50 persons shall be employed, the university shall carry out an assessment of child care needs for such employees. The assessment of child care needs will be in accordance with standards and criteria as adopted by the Board. The assessment of child care needs will accompany any request for Board approval of such a facility.

6. Reports to the Board on Capital Projects

The president shall provide the Board with the following reports on capital project activities:

a. Semi-Annual Progress Reports

The president shall provide a progress report of all active capital projects with a budget over $100,000.

b. Annual Report on Capital Activities

At the conclusion of each fiscal year, the president shall provide the Board with a summary of capital activities conducted during the fiscal year.

Subsection C. Naming of Facilities

1. Guidelines

• a. Facilities: The Board of Trustees has the exclusive authority to name all facilities at the university. Facilities shall be defined to include buildings, structures, stadia, commons areas and the like, but shall not include rooms or other areas within buildings. Such authority may be delegated as determined by the Board.
• b. Standards for the Naming of Campus Facilities: The naming of all Facilities on campus will conform to university standards as outlined in the University Facility Naming Policy. This Policy will fall within the management jurisdiction of the Vice President for Administration and Finance, in close consultation with the Vice President of University Advancement and the Executive Vice President and Provost, or equivalent positions, and will be reviewed on an annual basis. If material changes or exceptions to the policy are necessary, they will be brought to the Board for approval prior to implementation.
• c. Rooms and other areas within facilities: The Board shall delegate the authority to develop and recommend naming protocols for internal spaces within Facilities on campus to the Division of University Advancement or equivalent position. The naming of all internal spaces within Facilities on campus shall conform to university standards and naming protocols.

2. Procedures

• a. Facilities: The President, after consultation with appropriate members of the university community, shall provide the board with a naming recommendation for any proposed naming for a specified facility, prior to the execution of a contract or the acceptance of a philanthropic gift that may result in a naming decision.
• b. Rooms and other areas within facilities: The naming of spaces internal to a building or facility shall be developed by the Vice President for University Advancement, in consultation with the Vice President for Administration and Finance and the Executive Vice President and Provost, or equivalent positions, and recommended for approval to the President. The naming of all internal spaces within Facilities on campus shall conform to university standards and naming protocols.