Sunday, July 30, 2006

Next Life Safety Bond Scandal

The taxpayer suit in Jersey County, Illinois, is not too complicated, but it could be of widespread significance.

Citizen spark plug Jeff Ferguson and others in Jersey and Greene Counties (located northeast of St. Louis) are outraged that their local school board found a way to build two schools after 69% of the voters sounding rejected a $21 million high school proposal in 1999. (The state was going to kick in another $8 million.)

The school board found a way to build it and a grade school anyway.

Enter outside advisors trying to make a buck.

The school board is told that it can issue bonds without a referendum by issuing fire prevention and safety fund bonds, commonly called life safety bonds.

But, first, according to state law (105 ILCS 5/17-2.11),

a school district may replace a school building or build additions to replace portions of a building when it is determined that the effectuation of the recommendations for the existing building will cost more than the replacement costs. Such determination shall be based on a comparison of estimated costs made by an architect or engineer licensed in the State of Illinois. The new building or addition shall be equivalent in area (square feet) and comparable in purpose and grades served and may be on the same site or another site. (emphasis added)
That’s typical legislative gobble-de-gook. What it means is that if one can get an architect to say that fixing the old building to meet life safety standards is more expensive than building a new one, the school board may borrow money and build a new school.

And, that’s what this school board did.

But, there was a hitch.

The first architect said it would only cost $742,590.42 to fix up the high school.

The board decided to go for a slightly lower amount for the high school, added in a grade school and got permission for life safety improvements locally and by the State Board of Education in 2001.

Almost immediately afterwards, the board hired a second architect who would give the “right” answer.

$12.7 to $13.9 million was the “better” answer from the second architect.

That’s only 17 times as high as the first architect’s estimate.

For the rest of this overly long story, plus a copy of the suit, go to McHenry County Blog, Sunday, July 30th.

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