Current through Register Vol. 49, No. 9, September, 2024
1.00 AUTHORITY
The Commission for Arkansas Public School Academic Facilities
and Transportation (CAPSAFT) authority for promulgating these Rules is pursuant
to Ark. Code Ann. §§
6-21-114,
6-20-2507,
6-20-2512,
25-15-201
et seq.,
and Act 1080 of 2019.
2.01 The purpose of these Rules is to
establish a process whereby the Arkansas Division of Public School Academic
Facilities and Transportation shall provide state financial participation based
upon a school district's academic facilities wealth index in the form of cash
payments to a school district for eligible new construction projects.
2.02 CAPSAFT Rules Governing the Academic
Facilities Partnership Program that were in effect July 25, 2016, apply to
2019-2021 project funding cycle.
3.00 DEFINITIONS - For the purpose of these
Rules, the following terms mean:
3.01 "Academic Facility" - A building or
space, including related areas such as the physical plant and grounds, where
public school students receive instruction that is an integral part of an
adequate education as described in Ark. Code Ann. §
6-20-2302.
3.01.1 A public school building or space,
including related areas such as the physical plant and grounds, used for an
extracurricular activity or an organized physical activity course as defined in
Ark. Code Ann. §
6-16-137 shall not be considered an
academic facility for the purposes of funding in these Rules to the extent that
the building, space, or related area is used for extracurricular activities or
organized physical activities courses, except for physical educational training
and instruction under Ark. Code Ann. §
6-16-132;
3.01.2 The Division of Public School Academic
Facilities and Transportation may determine the extent to which a building,
space, or related area is used for extracurricular activities or organized
physical activities courses based on information supplied by the school
district and, if necessary, on-site inspection;
3.01.3 Buildings or spaces, including related
areas such as the physical plant and grounds, used for pre-kindergarten
education shall not be considered academic facilities for purposes of funding
in these Rules;
3.01.4 District
administration buildings and spaces, including related areas such as the
physical plant and grounds, shall not be considered academic facilities for the
purpose of these Rules; and
3.01.5
Facilities owned, operated, or both, by education service cooperatives, as well
as leased facilities (other than facilities which are part of a lease purchase
agreement), portable buildings, modular buildings and facilities owned by
others but occupied by school districts are not considered academic school
facilities for purposes of these Rules.
3.02 "Academic Facilities Partnership
Program" - The process under which the Arkansas Division of Public School
Academic Facilities and Transportation shall provide state financial
participation based upon a school district's academic facilities wealth index
in the form of cash payments to a school district for eligible new construction
projects.
3.03 "Academic Facilities
Wealth Index" - A percentage derived from the following computations:
3.03.1 To calculate the academic facilities
wealth index for the 2023-2025 project funding cycle and funding cycles
thereafter:
(1) Determine the value of one
mill per student in each school district as follows:
(a) Multiply the value of one mill by the
total assessed valuation of taxable real, personal, and utility property in the
school district as shown by the applicable county assessment for the most
recent year; and
(b) Divide the
product from 3.03.1(1)(a) by the largest average daily membership of the school
district over the previous decade;
(2) Calculate each school district's relative
median income by dividing the household median income for the area served by
each school district by the household median income of the school district with
the highest household median income, using the household median income as
estimated by the United States Bureau of the Census's American Community
Survey;
(3) Calculate the median
income per mill value by multiplying each school district's value of one mill
per student as calculated under 3.03.1(1) by the school district's relative
median income as calculated under 3.03.1(2); and
(4) Identify the school district at the
ninety-fifth percentile according to the value calculated under 3.03.1(3) by:
(a) Determining student millage rankings by
listing the median income per mill value under 3.03.1(3) for each school
district from districts with the lowest median income per mill value to school
districts with the highest median income per mill value;
(b) Allocating the student millage rankings
into percentiles with the first percentile containing the one percent (1%) of
students based on the prior year average daily membership with the lowest value
per mill and the one-hundredth percentile containing the one percent (1%) of
students with the highest value per mill;
(c) Dividing the median income per mill value
as computed under 3.03.1(4)(a) of this section by the amount corresponding to
the ninety-fifth percentile of the student millage rankings under 3.03.1(4)(b);
and
(d) Every school district with
a wealth index of one (1.00) or greater will be funded at the same level as the
first school district with a wealth index below one (1.00), except that funding
under this section shall not exceed the amount of funding provided to a school
district with a wealth index of nine hundred and ninety-five one thousandths
(0.995).
(5) The
percentage derived from the above computation is the academic facilities wealth
index for a school district, which shall be computed annually and used to
determine the amount of the school district's share of financial participation
in a local academic facilities project eligible for state financial
participation under priorities established by the Division.
(6) The state's share of financial
participation in a local academic facilities project eligible for state
financial participation under priorities established by the Division is the
percentage derived from subtracting the school district's percentage share of
financial participation determined under the above calculation from one hundred
percent (100%).
(7) A school
district identified as a high-growth school district as defined in Ark. Code
Ann. §
6-20-2511 shall receive the lesser
of the wealth index as calculated under 3.03.1 or 3.03.2 until the school
district fails to meet the definition of a high-growth school district as
defined in §
6-20-2511 for two consecutive
years.
3.03.2 To
calculate the academic facilities wealth index for the 2021-2023 project
funding cycle only:
(1) Determine the value
of one mill per student in each school district as follows:
(a) Multiply the value of one mill by the
total assessed valuation of taxable real, personal, and utility property in the
school district as shown by the applicable county assessment for the most
recent year; and
(b) Divide the
product from 3.03.2(1)(a) by the prior year average daily membership of the
school district or the prior three-year average of the school district's
average daily membership, whichever is greater;
(2) Determine the student millage rankings by
listing the computation under 3.03.2(1) for each school district from school
districts with the lowest value per mill to school districts with the highest
value per mill;
(3) Allocate the
student millage rankings into percentiles with the first percentile containing
the one percent (1%) of students with the lowest value per mill and the
one-hundredth percentile containing the one percent (1%) of students with the
highest value per mill;
(4) Divide
the value of one mill per student in each school district as computed under
3.03.2(1) by the amount corresponding to the ninety-fifth percentile of student
millage rankings under 3.03.2(3).
(5) Every school district with a wealth index
of one (1.00) or greater will be funded at the same level as the first school
district with a wealth index below one (1.00), except that funding under this
section shall not exceed the amount of funding provided to a school district
with a wealth index of nine hundred and ninety-five one-thousandths
(0.995).
(6) Subtract the academic
facilities wealth index as determined under 3.03.2(4) and 3.03.2(5) from the
academic facilities wealth index as determined under 3.03.1(4);
(7) Divide the result from 3.03.2(6) by two;
and
(8) Add the value from
3.03.2(4) with the number calculated in 3.03.2(7).
(9) The percentage derived from the above
computation is the academic facilities wealth index for a school district,
which shall be computed annually and used to determine the amount of the school
district's share of financial participation in a local academic facilities
project eligible for state financial participation under priorities established
by the Division.
(10) The state's
share of financial participation in a local academic facilities project
eligible for state financial participation under priorities established by the
Division is the percentage derived from subtracting the school district's
percentage share of financial participation determined under the above
calculation from one hundred percent (100%).
(11) A school district identified as a
high-growth school district as defined in Ark. Code Ann. §
6-20-2511 shall receive the lesser
of the wealth index as calculated under 3.03.1 or 3.03.2 until the school
district fails to meet the definition of a high-growth school district as
defined in §
6-20-2511 for two consecutive
years.
3.04
"Add-ons" - Additional academic areas or spaces that are constructed as a part
of or separate additions to an existing academic area or space, and that fall
under the definition of "New Construction" contained in Section 3.20 of these
Rules.
3.05 "Arkansas Public School
Academic Facilities Manual" - A document that contains uniform standards to
guide the planning, design, and construction of new academic facilities and
additions to existing academic facilities, a copy of which is incorporated into
these Rules as "Appendix A." The Manual can also be accessed on the Division's
website.
3.06 "Alternative Project"
- A project proposed by the Division that will accomplish creating a safe, dry,
and healthy atmosphere, meet the suitability need of the school district or
individual school facility, and is in compliance with the state standards.
State financial participation for an alternative project will be determined in
accordance with Sections 3.26, 3.34, 5.02, and 6.03 of these Rules. The
Division will coordinate the development of an alternative project with the
school district.
3.07 "Building
Value" - A percentage value reflecting the depreciated value of an academic
facility with an assumed depreciation of two per cent (2%) per year. Building
Value does not consider improvements that may have been made to the facility.
3.07.1 Building Value is calculated by
multiplying two (2) times the age of the academic facility, and subtracting
that product from one hundred (100) (Value = 100 - (2 x Age)). The output of
this equation may be a positive or negative percentage.
3.07.2 For the purpose of this calculation,
an academic facility's age is calculated as the difference between the master
plan year and the year of the facility's construction completion.
3.07.3 When an academic facility has multiple
additions constructed at different times, a Building Value shall be computed
for each addition.
3.07.4 Building
Value will be used to develop the Division's state-wide needs priority list per
A.C.A. §
6-21-112(f)
(18).
3.07.5 Districts are not required to replace
an academic facility when the Building Value is at or below zero percent
(0%).
3.08 "Campus
Value" - A composite percentage value of depreciated Building Values that
includes all of the academic facilities on a campus.
3.08.1 Campus value is calculated by
multiplying the Building Value of each individual academic facility on a campus
by the area in square feet of that individual facility, then adding together
the products of that calculation for all academic facilities on the campus, and
then dividing that sum by the overall area in square feet of all academic
facilities on the campus.
3.08.2 In
instances where multiple campuses are involved with a Warm, Safe, and Dry
project, a campus value may be computed using the same process for all the
campuses involved with the project.
3.09 "Commission" - The Commission for
Arkansas Public School Academic Facilities and Transportation.
3.10 "Configuration (Reconfiguration)" - The
systematic grouping of grades as determined by the school district at any
school(s) campus. Reconfiguration is the process of changing the present
school(s) configuration, by the school district, to align a different grade
configuration. The configuration or reconfiguration is determined by the school
district.
3.11
"Consolidation/Annexation Project" - A new, complete school campus or one or
more additions to existing campuses for the specific purpose of supporting a
voluntary consolidation or annexation petition brought by two or more
contiguous districts and approved by the Arkansas State Board of Education
pursuant to Ark. Code Ann. §
6-13-1401 et seq.
Consolidation/annexation projects must fulfill the requirements of Section
5.05.4 of these Rules.
3.12
"Construction Cost" - The actual cost of constructing a new construction
project as defined in Section 3.20 of these Rules. It consists of all
construction related costs, both direct and indirect, to include but not be
limited to construction contract costs and costs associated with design,
advertisement, and reimbursable expenses.
3.13 "Conversion Project" -
3.13.1 A new construction project that
converts existing academic or non-academic space into a missing academic core,
special education, or student dining component of the POR and the conversion
project is part of an add-on project for which the district has applied for
partnership assistance. In such conversions, any partnership assistance funding
from the state is limited to only that amount of square footage required by the
suitability analysis for the add-on project subject to the requirements of
Section 4.01 of these Rules. The component shall meet the POR specifications
when converting or adding such a space to the district; or
3.13.2 A new construction project that
converts existing academic or non-academic space into a missing academic core
space only and is in compliance with the POR space requirements. For this type
of conversion project, state partnership assistance funding shall only be
allowed provided the district has no suitability square footage need and the
project is limited to no more than the component number and square footage
spaces required in Academic Core of the POR.
3.14 "Division" - The Arkansas Division of
Public School Academic Facilities and Transportation.
3.15 "Energy Saving Contract" - Shall have
the same meaning and meet the requirements set forth in the CAPSAFT Rules
Governing the Acquisition of Energy Conservation Measures for Public
Schools.
3.16 "Facilities Master" -
A six-year plan developed by a school district that contains enrollment
projections for ten (10) years from the date of the plan, the school district's
strategy for maintaining, repairing, renovating, and improving through new
construction or otherwise the school district's academic facilities and
equipment, and other information as required by law.
3.17 "Facilities Improvement Plan" - An
improvement plan developed by a school district for a public school or school
district identified as being in academic facilities distress, or by a school
district that has been notified by the Division of non-participation in the
Academic Facilities Partnership Program by failing to apply for state funding
for necessary facilities to meet adequacy requirements, which supplements the
school district's facilities master plan by:
3.17.1 Identifying specific interventions and
actions the public school or school district will undertake in order to correct
deficient areas of practice with regard to custodial, maintenance, repair and
renovation activities with regard to academic facilities in the school
district; and
3.17.2 Describing how
the school district will remedy those areas in which the school district is
experiencing facilities distress, including the designation of the time period
by which the school district will correct all deficiencies that placed the
school district in facilities distress status.
3.18 "Local Resources" - Any moneys lawfully
generated by a school district for the purpose of funding the school district's
share of financial participation in any academic facilities project for which a
school district is eligible to receive state financial participation under
priorities established by the Division. Also referred to as "raised funds" for
the purpose of defining "Self-Funded Project."
3.19 "Maintenance, Repair, and Renovation" -
Any activity or improvement to an academic facility and, if necessary, related
areas such as the physical plant and grounds that, maintains, conserves, or
protects the state of condition or efficiency of the academic
facility.
3.20 "New Construction" -
Any improvement to an academic facility and, if necessary, related areas such
as the physical plant and grounds, that brings the state, condition, or
efficiency of the academic facility to a state of condition or efficiency
better than the academic facility's current condition of completeness or
efficiency. "New construction" includes a new addition to an existing facility
and construction of a new academic facility.
3.20.1 No state financial participation will
be provided for improvements that could be classified as maintenance, repair,
and renovation, other than a total renovation project. That portion of a new
construction project that consists of maintenance, repair, or renovation will
not be considered in calculating state financial participation in a new
construction project, nor in prioritization of a new construction
project.
3.21 "New
Facilities" - A new construction project that is neither an addition to, total
renovation, or conversion of an existing facility; nor a project involving
maintenance, renovation, or repair of an existing facility; but is a new
addition to a school district's building inventory.
3.22 "Non-academic Facility" - A building or
space that is not used for the provision of student instruction that is an
integral part of an adequate education as described in Ark. Code Ann. §
6-20-2302. The term "non- academic
facility" comprises, but is not limited to, those buildings, spaces, and
grounds described in Subsections 3.01.1, 3.01.3, 3.01.4 and 3.01.5 of these
Rules, or any buildings, spaces or grounds that do not fit the definition of
"Academic Facility" set forth in Section 3.01 of these Rules.
3.23 "Prioritization" -The methodology
established by the Commission, and set forth in these Rules in Section 5.05,
which provides a system of ranking new construction projects submitted for
state financial participation in the Partnership Program, in order to comply
with Ark. Code Ann. §
6-20-2507 and the necessary and
appropriate allocation of limited funding resources.
3.24 "Program of Requirements (POR)" - The
requirements that each new construction project that is not a Warm, Safe, and
Dry (Systems) project is required to adhere to as the established minimum
adequate components, and total square footage required in a school construction
project as otherwise permitted in Section 4.02 of these Rules for add-on
projects. The POR is contained in the Arkansas Public School Academic
Facilities Manual, which is attached to these Rules as Appendix A. The District
shall submit accurate and complete PORs, which shall include all existing
spaces, for any new construction project that is not a Warm, Safe, and Dry
(Systems) project for the Division's review in accordance with Section 3.35 of
these rules.
3.25 "Project" - An
undertaking in which a school district engages in:
3.25.1 Maintenance, repair, and renovation
activities with regard to an academic facility;
3.25.2 New construction; or
3.25.3 Any combination of maintenance,
repair, and renovation activities with regard to an academic facility and new
construction activities with regard to an academic facility.
3.26 "Project Cost" - A projected
qualified construction cost for funding purposes determined by the Division
utilizing the specific project cost funding factors stipulated in Ark. Code
Ann. §
6-20-2509 and localized to regional
cost centers in the state. It serves as the basis for the estimated state
financial participation for partnership projects per square foot, although a
school district's actual cost might exceed the state cost funding factors. The
specific project cost funding factors for New Facilities, Warm, Safe, and Dry
(Systems), and Conversion Projects are defined as set forth in Sections 3.26.1
and 3.26.2 of these Rules. These funding factors shall not include land
purchases, mold abatement or removal, environmental clean-up, supersite
clean-up, or qualification for LEED or Green Globes certification pursuant to
Section 10.0 of these Rules.
(i) The Project
Cost for newly constructed academic facilities or additions for which a square
foot cost would be applicable to all facets of the construction will be the
lesser of either:
(a) New Facilities Project
Cost Funding Factor shall be that factor established on a regional basis by the
Division in effect as of May 1, 2009, and updated annually by the Division in
compliance with Ark. Code Ann. §
6-20-2509; plus the appropriate
soft cost for demolition costs and/or asbestos abatement in the amount of one
percent of the Funding Factor for each category (however, the Funding Factor
shall not increase to more than $200.00 per square foot without the approval of
the Commission) multiplied by the project approved size in square feet;
or
(b) The actual construction cost
amount of the project.
(ii) The Project Cost for conversion projects
or projects that are building systems or components thereof, not covered in
Section 3.26(i) of these Rules (above), will be the lesser of either:
(a) The Warm, Safe, and Dry (Systems) and
Conversion Project Cost Funding Factor, which shall be that factor established
on a regional basis by the Division in effect as of May 1, 2009, and updated
annually by the Division in compliance with Ark. Code Ann. §
6-20-2509; plus the appropriate
soft cost for demolition costs and/or asbestos abatement in the amount of one
percent of the Funding Factor for each category multiplied by the approved unit
of measure per project (however, the Funding Factor shall not increase to more
than $200.00 per square foot without the approval of the Commission) multiplied
by the project approved size in square feet; or
(b) The actual construction cost of the
project.
(iii) In
calculating the amount of state financial participation in a facilities project
that includes a tornado shelter or designated reinforced area, the Division
shall deduct from the project cost the total amount of grant funds received by
the school district for the shelter or area. Districts shall indicate amount of
grant on the initial budget sheet. If a district receives information
concerning the grant amount or grant approval after funding/payment by the
Division, the district shall immediately report to the Division the grant
amount, which will be subtracted from the qualified project cost, resulting in
a change to state financial participation. Any monies paid by the Division over
the revised state financial participation shall be repaid by the district to
the Division.
3.26.1 New Facilities
Project Cost Funding Factor - That factor, based upon grade level configuration
of the public school academic facility and the proposed enrollment within the
facility and regionalized to twelve (12) different areas within the state,
which the Division will use to provide a funding amount for construction
projects covered by Section 6.03(i) of these Rules on a square foot
basis.
3.26.2 Warm, Safe, and Dry
(Systems) and Conversion Project Cost Funding Factor -That factor, based upon
the amount of square footage contained, the type of conversion of existing
space to a different use, or the type of item or system renovation regionalized
to twelve (12) different areas within the state, which the Division will use to
provide a funding amount for construction projects covered by Section 6.03(ii)
of these Rules on a square foot basis.
3.27 "Project Funding Cycle" - A two (2) year
cycle for which school districts' Partnership Projects submitted by a specified
deadline in an even-numbered year are reviewed by the Division for state
financial participation by May 1 of the succeeding odd-numbered year.
3.28 "Public School Facility" - Any public
school building or space, including related areas such as the physical plant
and grounds, that is used for any purpose, including, without limitation:
3.28.1 An extracurricular activity;
3.28.2 An organized physical activity course
defined in Ark. Code Ann. §
6-16-137;
3.28.3 Pre-kindergarten education;
3.28.4 District administration; or
3.28.5 Delivery of instruction to public
school students that is an integral part of an adequate education as described
in Ark. Code Ann. §
6-20-2302.
3.29 "Renovation Project" - A Warm, Safe, and
Dry (Systems) new construction project addressing a facility system per Section
3.37.1 of these rules or addressing all building systems per Section 3.37.2 of
these rules. To receive state financial participation, the project must be a
Warm, Safe, and Dry (Systems) or Space Replacement project.
3.30 "Resolution" - A written document voted
upon and approved by at least a majority of a quorum of a school district's
Board of Directors at a lawfully convened meeting, which certifies the school
district's dedication of local resources to meet the school district's share of
financial participation in the new construction project.
3.31 "Schematic Drawing" - A diagram that
fully illustrates all of the areas, spaces and dimensions of a new construction
project. Schematic drawings shall include as a minimum: single line drawings
with all outside dimensions, including all offsets and overall gross square
footage. For add-on or conversion projects, the drawing shall be labeled to
identify all interior spaces with interior room net square footage in the
"footprint" of the entire project. For Warm, Safe, and Dry (Systems) projects,
the replacement major system components and their location shall be identified.
3.31.1 The schematic drawing does not have to
be prepared by a licensed architect, but must meet the approval of the Division
as to the actual detail required.
3.31.2 An aerial photograph is not a
"diagram" and may not serve as the basis for the required schematic
drawing.
3.32 "School
district" - A geographic area with an elected board of directors that qualifies
as a taxing unit for purposes of ad valorem property taxes under Title 26 of
the Arkansas Code, and which board conducts the daily affairs of public schools
under the supervisory authority vested in it by the General Assembly and Title
6 of the Arkansas Code.
3.33
"Self-Funded Project" - A project where the monies needed to complete the
project are one hundred percent (100%) raised and provided by the school
district, and that shall be submitted to and approved by the Division upon
compliance with state codes and standards. Any project, whether the district
requests state financial participation or not, shall meet the standards of the
Arkansas Public School Academic Facilities Manual, industrial codes, and the
Program of Requirements.
3.34
"State Financial Participation" - The state's share of financial participation
in a local academic facilities project eligible for state financial
participation according to the prioritization schedule established by the
Commission and set forth in Section 5.05 of these Rules.
3.35 "Suitability" - The process undertaken
by the Division to determine whether any existing academic facility is eligible
for state financial participation for new construction projects, as set forth
in Section 5.05 of these Rules. The state financial participation shall be the
project cost described in Section 3.26, multiplied by the difference of one
hundred percent (100%), minus the school district's wealth index. Except for
approved Warm, Safe, and Dry (Systems) projects, only that space total gross
square footage required by the POR that is not already deemed available to a
school district, whether on an existing campus or a new school campus, shall be
determined eligible for state financial participation.
3.35.1 On An Existing Campus
When a school district is proposing a new construction project
on an existing campus with existing educational facilities, the district shall
submit a POR of the existing campus and the Division shall compare the
appropriate existing total gross square footage space of the existing facility
on the campus to the total gross square footage space requirements
of the POR for the proposed new school facility based on the projected student
enrollment by grade level. After making the comparison, the school will only be
deemed to not be suitable and thus eligible for state financial participation
on a proposed facility project for the additional gross square footage space
required in the POR not currently available on the school campus
(based on the Division's campus reports or other confirmed information made
available to the Division) or on other campuses affected by grade
reconfigurations as part of the project. The district shall submit PORs for all
campuses and grades affected by the grade reconfigurations which are a part of
the project. However, the state recognizes that four particular space areas
existing in school districts on or before 2008 may skew the comparison of
existing space to that of the required POR space. Therefore, the Division will
not count as existing space that total gross footage area above the required
POR standard for the following four areas that existed on or before 2008:
Physical Education, Media Center, Student Dining, and Performing Arts.
3.35.2 On A New School Campus:
When a school district is proposing a new construction project
on a school campus for which the Division determines there are no other
currently existing appropriate school facilities or the district is seeking a
separate LEA number for the new academic facility, the district shall submit a
POR for the new school campus and the Division shall compare the total gross
square footage required by the POR for the proposed facility for the
appropriate student grade population to that currently existing total gross
square footage available in the district (based on the Division's
campus and district reports or other confirmed information made available to
the Division) for the appropriate student grade population in their final grade
configuration less the gross square footage to be demolished as part of the
proposed project. The Division also shall include other campuses and grades
affected by grade reconfigurations as part of the project. The district shall
submit PORs for all campuses and grades affected by the grade reconfigurations
that are a part of the project. After making the comparison, the school only
will be deemed to not be suitable and thus eligible for state financial
participation on a proposed facility project for that additional space required
in the POR not currently available in the school district for the appropriate
student population in their final grade reconfiguration. The State recognizes
that four particular space areas existing in the school district may skew the
comparison as mentioned above in Section 3.35.1_ of these Rules
in the "on an existing campus" comparison. As a result, the Division will give
the same consideration and not count as existing space that total gross footage
area above the required POR standard already existing in the district on or
before 2008.
3.35.3 Warm,
Safe, and Dry (Systems): For new construction projects not requesting
additional space or replacement of academic square footage, state financial
participation will only be provided for Warm, Safe, and Dry (Systems)_projects.
Suitability analysis and determination shall be made on a project by project
basis and shall be determined based on the actual need as determined by the
Division using current Facilities Manual standards.
3.36 "Waiver" and "Variance" - The process by
which a school district in unusual and limited circumstances may seek a waiver
or variance from Sections 3.37.2, 4.06, 4.07, 4.09, 7.06 and 7.07 of these
Rules as approved by the Division.
3.37 "Warm, Safe, and Dry" - New construction
projects deemed necessary by the Division to provide students a warm, safe, and
dry educational environment. State financial participation may be available for
two categories of Warm, Safe, and Dry projects:
3.37.1 "Warm, Safe, and Dry (Systems)" -
(i) New construction projects that support a
facility's needs as they pertain to fire, safety, roofing, HVAC, and
structural. Roofing, plumbing, and electrical projects must apply to the entire
facility or system or if a separate building the entire building. Fire system
needs include fire alarms, warning systems, and fire prevention/ suppression
systems. Partial HVAC projects may be approved by the Division if they are part
of an energy-savings contract with performance of a comprehensive energy
savings plan.
(ii) Safety system
projects must be a comprehensive campus security upgrade, which shall include
any renovation projects that are designed to sustain active shooter protocols,
efficiently implement lockdown procedures, and enable an overall immediate and
legal response to crises, as well as foster an environment for progressive
education and training for proper operation of systems. Eligible security
upgrades shall include, but are not limited to, a combination of at least three
original installations of the following: secure entrance vestibule,
ballistic-rated glass/films, CCTV, Electronic Access controls on doors,
intruder locksets, and may include reinforced hallways adjunct to student
occupied areas, fully enclosed walkways between buildings, permanently
installed screening technology, visitor management systems, hallway
security/fire doors, vehicle barriers, etc. To be eligible for funding,
districts shall provide with the application a detailed narrative describing
all safety and security procedures and systems currently at the campus, new
systems being requested for funding, and how the proposed project will enhance
the safety and security of students and staff All new construction projects
must comply with applicable current codes.
3.37.2 "Warm, Safe, and Dry (Space
Replacement)" - New construction projects that build a new academic facility to
replace an existing academic facility that is not deemed by the Division to
provide students a warm, safe, and dry educational environment. In some
instances, districts may perform a total facility renovation instead of a
building replacement. Total renovation means that all building systems
determined by the Division to be required to bring the facility to "like-new"
condition are replaced. Total renovations shall comply with Sections 4.06 and
4.07 of these Rules.
3.37.3 Warm,
Safe, and Dry projects do not include land purchases or environmental clean-up
or supersite clean-up.
3.37.4
Districts are not required to replace an academic facility when the Building
Value is at or below zero percent (0%)
4.01 All applications for state financial
participation under a Project Funding Cycle of this Partnership Program shall
be submitted electronically by utilizing the Master Plan Web Tool located on
the Division's Internet websiteno later than 4:30 p.m.
on March 1 of every even-numbered year.
4.01.1 If, during an even-numbered year, the
Arkansas State Board of Education orders the involuntary annexation or
consolidation of school districts, the receiving or resulting school district
after annexation or consolidation may submit an updated master plan to the
Office of the Director of the Division of Public School Academic Facilities and
Transportation no later than January 1 of the following odd-numbered
year.
4.01.2 If, during an
even-numbered year, the Arkansas State Board of Education orders the
involuntary annexation or consolidation of school districts, the receiving or
resulting school district after annexation or consolidation may submit an
application for state financial participation under this Partnership Program to
the Office of the Director of the Division of Public School Academic Facilities
and Transportation no later than February 1 of the following odd- numbered
year.
4.01.3 For the purposes of
Section 4.01.1 and 4.01.2, the phrase "involuntary annexation or consolidation"
includes annexations or consolidations approved or required by the Arkansas
State Board of Education pursuant to Ark. Code Ann. §
6-13-1601 et seq.
4.02 A school district may apply
for state financial partnership participation under these Rules for projects
that fall under one (1) of the following categories:
* Warm, Safe, and Dry;
* New facilities;
* Add-ons and/or Conversions; and
* Consolidation/annexation projects.
If the state provides financial participation for an add-on or
conversion project, or a consolidation/annexation project that adds space to an
existing campus, the district must construct any missing component to the POR
specification. The district will have to submit an accurate and complete POR,
to include all existing spaces. If the POR indicates deficient space
components, the district must satisfy these components in the following
order:
* Academic Core Areas;
* Special Education;
* Student Dining;
* Administrative
The state will not participate in add-on projects concerning
gymnasiums, media centers and/or auditoriums if the district already has this
space or is in need (according to the POR) of Academic Core Areas, Special
Education, or Student Dining Areas.
The state will consider the replacement of demolished space to
be a prudent and resourceful expenditure of state funds issue. School districts
are encouraged to discuss such issues with the Division before entering into
demolition projects when the districts will be filing applications for state
partnership assistance.
School districts applying for state financial participation for
projects that support their Facilities Master Plan shall file applications (and
approved PORs, resolutions, schematic drawings, and other required
documentation) in a format prescribed by the Division and shall list the
applications in the district's Facilities Master Plan. No project shall be
considered for state financial partnership participation unless it is included
in the district's Facilities Master Plan.
4.02.1 School districts must comply with the
timelines set out in Section 4.01 of these Rules concerning submission of
partnership applications with schematic drawings and district submitted
PORs.
4.03 Any project
that applies for state financial assistance must prove suitability. All Warm,
Safe, and Dry (Space Replacement) projects that involve the demolition of space
for replacement of the same space will be considered a prudent and resourceful
expenditure of state funds issue upon approval by the Division and in
compliance with POR requirements.
4.03.1
Warm, Safe, and Dry (Space Replacement) projects that replace student dining
and kitchen facilities and/or media center are not required to prove the
suitability described in Section 3.35.1. If the district provides a complete
application for and the Division agrees with the need for replacement of the
student dining and kitchen facility and/or media center, the project will be
eligible for state financial participation to the POR required size of a
replacement student dining and kitchen facility and/or media center.
Replacement of a student dining and kitchen facility and/or media center will
be based on condition and will not be based on size considerations
alone.
4.04 Any
submission for state financial participation that does not comply with
applicable state laws and these Rules shall be denied by the Division. Any
district whose submission is denied by the Division under this Section 4.04 may
submit a written appeal of the Division's decision to the Commission.
4.05 In order to apply for state financial
participation in a new construction project, a school district shall provide
the Division with a detailed narrative, description, and justification for the
project and evidence of
4.05.1 Preparation
for the new construction project as demonstrated by inclusion of the new
construction project in the school district's facilities master plan;
4.05.2
(i)
The adoption of a resolution certifying to the Division the school district's
dedication of local resources to meet the school district's share of financial
participation in the new construction project.
(ii) The resolution shall specify the
approximate date that the board of directors of the school district intends to
seek elector approval of any bond or tax measures. If, as of the date of
application, the school district has already obtained elector approval of the
bond or tax measure, the resolution shall identify the date of the election at
which approval was obtained.
(iii)
If the board of directors of the school districts intends to apply other local
resources to pay the school district's share of the financial participation in
the new construction project, and does not intend to seek elector approval of a
bond or tax measure, the resolution shall specify the approximate date the
board intends to apply the other local resources.
(iv) If the resolution does not identify an
approximate date for elector approval or application of other local resources,
the submission shall be denied by the Division;
4.05.3
(i)
The total estimated cost of the new construction project that shall be a
minimum of three hundred dollars ($300) per student or one hundred and fifty
thousand dollars ($150,000), whichever is less, per campus or district
depending upon whether the project is a campus or district project. This
project minimum does not apply to a construction project with a school nursing
center.
(ii) Same system projects
may not be combined across multiple facilities (campuses) nor multiple system
projects combined to meet the minimum dollar threshold for Partnership Program
funding for a Warm, Safe, and Dry (Systems) project;
4.05.4 The new construction project's
conformance with sound educational practices;
4.05.5 The new construction project's
compliance with current academic facilities standards, including, without
limitation, appropriate space utilization of the applicable school in the
district as determined by the Division;
4.05.6 The allocation of project costs
between new construction activities and maintenance, repair, and renovation
activities if the new construction project includes improvements that could be
classified as maintenance, repair, and renovation;
4.05.7 How the new construction project
supports the prudent and resourceful expenditure of state funds and improves
the school district's ability to deliver an adequate and equitable education to
public school students in the district; and
4.05.8 A statement of the district's intent,
if any, to seek incentives for LEED Certification or Green Globes Certification
pursuant to Section 10.03 of these Rules.
4.05.9 District submitted PORs in accordance
with the requirements of Section 3.35 of these Rules:
(i) On a new campus to compute
suitability;
(ii) On an existing
campus to compute suitability;
(iii) On other existing campuses to compute
excess suitability.
4.06 All proposed new construction projects
shall be in compliance with the standards set forth in the Arkansas Public
School Academic Facilities Manual.
4.06.1
Variances to the Arkansas Public School Academic Facilities Manual standards
may be granted by the Division:
(i) Upon the
presentation by a school district of evidence of existing conditions that make
compliance with applicable standards impractical or unreasonably burdensome,
and;
(ii) Based on other conditions
determined by the Division that warrant a variance.
4.07
(i)
All applications for state financial participation under this
Partnership Program for new construction projects that are not considered Warm,
Safe, and Dry (Systems) projects pursuant to these Rules shall be prepared in
accordance with the POR except in unusual and limited circumstances (including,
but not limited to, the variances set forth in Sections 4.06.1 and 4.06.2 of
these Rules) where the Division determines that a waiver of the POR is the only
means whereby the district can meet adequacy requirements. In such instances, a
district may submit a request in writing to the Division, signed by the
district's Superintendent and President of its Board of Directors, setting
forth in detail the circumstances requiring the waiver for the POR. No waiver
request shall be deemed granted unless and until the Division issues a written
notification that the waiver has been granted.
4.08 At least one hundred twenty (120) days
before the application deadline set forth in section 4.01 of these Rules, a
district may request in writing by letter or e-mail (received by the Division
during this period) and be granted by the Division a review conference that
shall be held within seventy-five (75) days after the date of request. The
district may be advised through the review conference process by an
architectural and engineering firm if the school district pays the cost of the
advice from the architectural and engineering firm.
4.08.1 The review conference shall consider
the following:
(i) That the proposed project
is academic;
(ii) The application
of the space calculation to the project;
(iii) The wealth index of the district and
the date at which the wealth index will be applied to the partnership project
if approved;
(iv) The project cost
promulgated by the Commission under Ark. Code Ann. §
6-20-2509 for the project and the
date on which the project cost data will be applied to the partnership project
if approved;
(v) If the applicant
provides a complete application, a projected
amount of state funding based on current application of the wealth index and
the project cost promulgated by the Commission under Ark. Code Ann. §
6-20-2509 to the planned project
for planning purposes to allow a projection of local funding share
required;
(vi) Whether or not the
proposed application, as submitted, meets all of the technical requirements for
partnership applications as set out in the application guidelines and Rules
provided by the Division for the applicable partnership program application
cycle.
(vii) The Division shall
make a written record of the findings of the review conference and provide a
copy of the written record to the school district within five (5) working days
after the written record is finalized. All findings are subject to final review
and Commission approval.
4.09 The minimum requirement set forth in
Section 4.05.3 of these rules may be waived by the Division upon a
recommendation being made by the Director of the Division to the Commissioners
for the Division for the minimum to be waived for cause and a majority of the
Commission supports the waiver. Districts must request the waiver by submitting
a formal letter signed by the superintendent on district letterhead, which
shall include a detailed justification for the request. The request must be
uploaded and submitted with the project application due by March 1 of the even
year.
5.00 DIVISION'S EVALUATION
AND APPROVAL OF SCHOOL DISTRICT'S APPLICATION
5.01 The Division shall use criteria to
evaluate a school district's application for state financial participation in a
new construction project, pursuant to Ark. Code Ann. §
6-20-2507, which shall include,
without limitation, the following:
5.01.1 How
the school district's facilities master plan and current academic facilities do
not address the following:
(i) Student health
and safety, including, without limitation, but not limited to, critical health
and safety needs;
(ii) Compliance
with current academic facilities standards, including, without limitation,
appropriate space utilization of existing academic facilities in the
district;
(iii) Conformance with
sound educational practices;
(iv)
Curriculum improvement and diversification, including, without limitation, the
use of instructional technology, distance learning, and access to advanced
courses in science, mathematics, language arts, and social studies;
(v) Multischool, multidistrict, and regional
planning to achieve the most effective and efficient instructional delivery
system;
(vi) Reasonable travel time
and practical means of addressing other demographic considerations;
and
(vii) Scheduled and unscheduled
maintenance, repair, and renovation as documented in the state-provided
Computerized Maintenance Management System;
5.01.2 How the school district's facilities
master plan and any new construction project under the facilities master plan
address the following:
(i) Student health and
safety, including, without limitation, critical health and safety
needs;
(ii) Compliance with current
academic facilities standards, including, without limitation, appropriate space
utilization of existing academic facilities in the district;
(iii) Conformance with sound educational
practices;
(iv) Curriculum
improvement and diversification, including, without limitation, the use of
instructional technology, distance learning, and access to advanced courses in
science, mathematics, language arts, and social studies;
(v) Multischool, multidistrict, and regional
planning to achieve the most effective and efficient instructional delivery
system;
(vi) Reasonable travel time
and practical means of addressing other demographic considerations;
and
(vii) Scheduled and unscheduled
maintenance, repair, and renovation as documented in the state-provided
Computerized Maintenance Management System (CMMS);
5.01.3 How the new construction project
supports the prudent and resourceful expenditure of state funds and improves
the school district's ability to deliver an adequate and equitable education to
public school students in the district;
5.01.3.1 The Division may perform on-site
inspections of the school district facilities during the evaluation of project
applications.
5.01.4 How
the new construction project has been prioritized by the school district;
and
5.01.5 The allocation and
expenditure of funds in accordance with this subchapter and the Arkansas Public
School Academic Facility Program Act, Ark. Code Ann. §
6-21-801 et seq.
5.01.6 In evaluating a school district's
application for state financial participation in a new construction project,
the Division may resolve any internal inconsistency in or conflict among the
application components and supporting documentation by giving precedence to the
application components in the following order:
(i) The resolution adopted by the board of
directors of the school district;
(ii) The narrative application contents
submitted electronically through the Master Plan Web Tool;
(iii) Schematic drawings; and
(iv) Other supporting documents submitted
with the application.
5.02 The Project Cost shall be limited to the
cost for an alternative project if the Division determines that an alternative
project meets facility standards and addresses the suitability and warm, safe,
and dry needs expressed by the district in its master plan and project
application. The alternative project may consist of replacement of the original
facility or component to the original configuration of construction at the most
current state standard.
5.03 If a
school district fails to comply with any of the requirements set forth in state
law and/or these Rules concerning the Division's evaluation of its application,
the Division and Commission may deny the application for state financial
participation.
5.04
(i) The Division shall review all projects
submitted to determine their suitability for state financial participation,
pursuant to the suitability criteria set forth in Section 3.35 of these
Rules.
(ii) No project that is
determined by the Division to go beyond "suitable" will be approved for state
financial participation.
5.05 Prioritization of Projects: All approved
partnership projects for each fiscal year of the 2021-2023 project funding
cycle shall be funded according to the following order as funding shall become
available:
5.05.1 Warm, Safe, and Dry
(Systems)
For the 2021-2023 project funding cycle all Warm, Safe, and Dry
(Systems) new construction projects for which the Commission determines that a
school district is currently not in suitable condition shall be entitled to
receive state partnership assistance in a ranking of third order priority. The
Warm, Safe, and Dry (Systems) projects shall be prioritized as follows:
First, the Division shall numerically rank all school projects
based on the academic facilities wealth index of the school district. The
districts with the least wealth index shall be ranked first with the districts
with the greater wealth index numerically ranked last.
Second, the Division shall numerically rank all school projects
based on the third-quarter average daily membership (ADM) of the school
district for the school year in which the application for state partnership
assistance is filed. The districts with the least ADM shall be ranked first
with the districts with the greater ADM numerically ranked last.
Third, the Division shall average the numerical ADM and wealth
index ranking of each school's project. Once each project is averaged, the
Division shall establish a ranked order with the projects with the lowest
average score being ranked first and the projects with the highest average
score being ranked last.
5.05.2 New Facilities, Add-Ons, and
Conversions:
For the 2021-2023 project funding cycle, all new facilities,
add-ons, and conversion partnership projects which are approved by the
Commission because a school district or campus is currently deemed not suitable
shall be ranked and, thus, entitled to receive state partnership assistance in
a ranking of first order priority to any other partnership project according to
the following procedure of ranked order, subject to the availability of
funds:
The Division shall numerically rank all new facilities,
add-ons, and conversion projects based on a ten (10) year actual growth of
student population review with the districts with the greatest percentage of
growth being ranked first and districts with the least percentage of student
growth ranked last. The growth is measured by showing (on a percentage basis)
the student population growth when comparing the three quarter average daily
membership of the district ten (10) years ago to the district's three quarter
average daily membership in the previously completed school year. If a district
has not been in existence for at least ten (10) school years as a result of the
annexation or consolidation of other districts into it or with it, then for any
years within the last ten (10) years for which the district was not in
existence its three quarter average daily membership shall be the sum of the
three quarter average daily membership of those former school districts that
now comprise the school district applying for state financial
participation.
Conversion projects will be reviewed against POR requirements
to determine compliance with the POR. If the Division determines that the
project qualifies for state financial participation, then the project will be
subject to the conditions set forth in Sections 4.00 and 5.00 of these Rules.
Projects in this Section shall be entitled to receive state partnership
assistance in a ranking of first priority order.
5.05.3 Warm, Safe, and Dry (Space
Replacement)
For the 2021-2023 project funding cycle, all Warm, Safe, and
Dry (Space Replacement) new construction projects for which the Commission
determines that a school district is currently not in suitable condition shall
be entitled to receive state partnership assistance in a ranking of second
order priority to any other partnership project according to the following
procedure of ranked order, subject to the availability of funds. To the extent
there is limited funding available, the Warm, Safe, and Dry (Space Replacement)
projects shall be prioritized according to the school district's wealth index
and the campus or campuses value (depending upon the type of project for which
the district applies for state partnership assistance).
First, the Division shall numerically rank all Warm, Safe, and
Dry (Space Replacement) projects based on the campus (or campuses) value
depending on what type of project is proposed. The projects with the lowest
campus value shall be ranked first and in ascending order to the projects with
the greatest campus value. Second, the Division shall numerically rank all
Warm, Safe, and Dry (Space Replacement) projects based on the wealth index of
the school district. The districts with the least wealth index shall be ranked
first with the districts with the greater wealth index numerically ranked
last.
Third, the Division shall average the campus value and wealth
index ranking of each school's Warm, Safe, and Dry (Space Replacement) project.
Once each project is averaged, the Division shall establish a ranked order with
the projects with the lowest average score being ranked first and the projects
with the highest average score being ranked last.
Any project for which the Commission determines the district or
campus is currently suitable shall not be entitled for any state partnership
assistance in that year's partnership cycle.
The suitability analysis and determination of Warm, Safe, and
Dry (Space Replacement) projects shall be performed as per Section 3.35.
Projects in this Section shall be entitled to receive state
partnership assistance in a ranking of second priority order.
5.05.4 Consolidation/Annexation Projects
All projects that fall within the definition of
"consolidation/annexation project" listed in Section 3.11 above and that meet
all of the requirements of this Section shall be entitled to apply for state
Partnership assistance. To the extent that funding is available,
consolidation/annexation projects shall be evaluated and funded based upon the
following criteria:
(i) Consolidations
or annexations involving school districts that appear on the administrative
consolidation list pursuant to Ark. Code Ann. §
6-13-1602 shall not be eligible for
partnership funding for consolidation/annexation projects;
(ii) A school district may only apply for
state partnership funding for a consolidation/annexation project if the effect
of the consolidation/annexation is to create, from two or more contiguous
districts, one resulting or receiving district, as those terms are defined by
Ark. Code Ann. §
6-13-1401;
(iii) The consolidating or annexing districts
must submit to the Division an order from the Arkansas State Board of Education
granting approval for the consolidation or annexation;
(iv) The consolidating or annexing districts
must submit to the Division all required partnership documentation pertaining
to the project;
(v) The
consolidating or annexing districts must have the proposed project listed in
the district's approved master plan, or in the alternative, submit an amended
or new master plan that includes the proposed project;
(vi) The consolidating or annexing districts
must apply for partnership funding in accordance with the partnership
application procedures contained in this rule;
(vii) The consolidating or annexing districts
must provide the names, LEA numbers and locations of all schools to be closed
as a result of the consolidation or annexation and the applicable dates of such
action when submitting their Master Plan;
(viii) Consolidation/annexation projects for
new schools shall not be penalized for current space as set forth in Section
3.35.2 above, nor shall consolidation/annexation projects be subject to the
provisions set forth in 5.02 above. The resulting or receiving district must
certify to the Division that the district's current available space will either
be used for a valid educational purpose or disposed of in a manner authorized
by law;
(ix) The Division shall
review the proposed consolidation/annexation projects to ensure that the
location of the proposed consolidation/annexation projects supports the prudent
and resourceful expenditure of state funds;
(x) In addition to the criteria set forth in
Section 5.05.4 (xi) below, all consolidation/annexation projects containing
proposed additions to existing facilities will be evaluated in accordance with
Section 3.35.1 above; except that the Division may consider all school closings
in the consolidation/annexation when determining space when available on other
campuses;
(xi)
"Consolidation/annexation" projects shall be prioritized in accordance with
Section 5.05.2 of these rules and as follows:
Growth Index: For those projects meeting the definition of a
"consolidation/annexation" project and which comply with the requirements of
this Section, the Division will numerically rank the consolidated/annexed
school district's growth index at the greater of the following two levels:
(1) the past ten years' growth as
calculated in 5.05.2 above; or
(2)
the same growth level assigned to the project of the school district with the
greatest growth ranking represented in the same project year for which the
consolidation/annexation partnership application is submitted.
(xii) After completion of the
first applicable consolidation/annexation project, the Division will calculate
a new wealth index for the resulting or receiving district that will be used to
determine the amount of state financial participation in future academic
facilities projects undertaken by the resulting or receiving district. These
future academic facilities projects will not be evaluated according to the
consolidation/annexation project criteria. Instead, the future academic
facilities projects will be evaluated as a warm, safe, and dry project, a new
facility, or as an add-on/conversion project, as applicable;
(xiii) Funds made available to a resulting or
receiving district under the consolidation/annexation project process shall be
in addition to, not in lieu of, funds made available to the resulting or
receiving district under the Arkansas Department of Education Rules Governing
the Consolidation and Annexation of School Districts.
5.06 If the school district's new
construction project is approved for funding in the current funding cycle, then
the district must execute the Partnership Agreement attached to these Rules as
Appendix B, which is incorporated into these Rules. If the Partnership
Agreement is not executed within the time period set forth in Section 7.06 of
these Rules, unless there is an approved waiver, the state's financial
participation in part or in whole may be deemed null and void by the
Commission.
5.07 In accordance with
Ark. Code Ann. §
6-21-114(d) and
the Commission's Rules Governing Property Insurance Requirements, every
academic facility must be insured for at least 90% of replacement cost to be
eligible for state financial participation. If, as of the date of application
or at any point thereafter, an academic facility involved in a project is not
sufficiently insured as required, as indicated in the district's current
Statement of Values, the application shall be denied by the Division and any
state financial participation shall cease.
6.00 AVAILABILITY OF STATE FINANCIAL
PARTICIPATION AND TIMELINES
6.01
State financial participation under the academic facilities partnership program
is not available until July 1 of each year. In allocating funds for state
financial participation, the Division shall set aside funds sufficient to pay
the incentives set forth in Section 10.0 of these Rules.
6.02 To the extent a district's Partnership
Project has been ranked of such low priority and there are not sufficient state
funds available to fully fund the district's Partnership Project, the district
shall be entitled to the following:
(i) The
Division shall consider the district's current application a valid application
for the next Partnership Project cycle and will prioritize and fund the
application consistent with the prioritization and funding amounts utilized in
the next Partnership Project cycle; or
(ii) The district may choose to withdraw its
project application prior to the next Partnership Program cycle and reapply for
Partnership Project assistance in a subsequent cycle based upon that year's
availability of funding pursuant to that cycle's adjusted funding rate and
Partnership Program.
(ii) Approved
projects not funded in the first year of a Partnership Program cycle will be
moved to the second year of the Partnership Program cycle and ranked after all
of the approved year-two projects per Section 5.05 of these Rules.
6.03 With regard to an academic
facilities project for which a school district intends to apply for state
financial participation, the Division shall notify the school district of its
final decision on the application and the estimated amount of state financial
participation in the new construction project no later than May 1 of each
odd-numbered year.
The Division's notice of its decision on a school district's
application for state financial participation in a new construction project
shall include an explanation of the evaluation factors underlying the decision
of the Division to provide or not provide state financial participation in
support of the new construction project.
(i) New Construction Projects, which are
newly constructed academic facilities or additions for which a square foot cost
would be applicable to all facets of the construction, may qualify for funding
in the lesser amount of either option A: which is the dollar amount set by the
Division and incorporated herein or otherwise known as New Facilities Project
Cost Funding Factor which shall be that factor established on a regional basis
by the Division in effect as of May 1, 2009, and updated annually by the
Division in compliance with Ark. Code Ann. §
6-20-2509; plus the appropriate
soft cost for demolition costs and/or asbestos abatement in the amount of one
(1) percent of the Funding Factor for each category multiplied by the approved
project square feet multiplied by the difference of one hundred percent (100%)
minus the school district's wealth index (however, the Funding Factor shall not
increase to more than $200.00 per square foot without the approval of the
Commission) or option B: which is the actual construction cost amount
multiplied by the difference of one hundred percent (100%) minus the school
district's wealth index.
(ii)
Conversion projects or projects which are building systems or components
thereof, not covered in (i) above may qualify for funding in the lesser amount
of either option A: the dollar amount set by the Division and incorporated
herein or otherwise known as the Warm, Safe, and Dry (Systems) and conversion
Cost Funding Factor which shall be that factor established on a regional basis
by the Division in effect as of May 1, 2009, and updated annually by the
Division in compliance with Ark. Code Ann. §
6-20-2509; plus the appropriate
soft cost for demolition costs and/or asbestos abatement in the amount of one
(1) percent of the Funding Factor of each category multiplied by the approved
unit of measure per project multiplied by the difference of one hundred percent
(100%) minus the school district's wealth index (however, the Funding Factor
shall not increase to more than $200.00 per square foot without the approval of
the Commission) or option B: the actual construction cost amount multiplied by
the difference of one hundred percent (100%) minus the school district's wealth
index.
7.00 AGREEMENT
BETWEEN THE DIVISION AND THE SCHOOL DISTRICT CONCERNING STATE FINANCIAL
PARTICIPATION
7.01 If the Division
determines that the new construction project is eligible for state financial
participation, the Division and the school district shall enter into an
agreement specifying the terms of the state's financial participation and the
conditions that must be satisfied by the school district.
7.02 At a minimum, the agreement shall:
(i) Identify the estimated amount of local
financial participation and state financial participation in the new
construction project. The estimated amount of the state's financial
participation, as stated in the agreement, will be arrived at after the
schematic drawings and any variances to the Arkansas Public School Academic
Facilities Manual are considered for new facilities, new additions to
facilities or renovations or conversions. The final amount of the State's
financial participation will be specified upon receipt of the final contract
amount and determined as specified in Section 6.03 of these rules:
(ii) Define the method of and schedule for
transferring state financial participation funds to the school
district;
(iii) Identify whether
the new construction project includes any improvements that are classified as
maintenance, repair, and renovation, and how the project costs will be
allocated between new construction activities and maintenance, repair, and
renovation activities;
(iv) Define
the detailed scope of work for which the agreement applies;
(v) Provide that changes to the plans for the
new construction project shall be made in consultation with the
Division;
(vi) Provide the areas of
project responsibility of both parties during the course of the
project;
(vii) Provide that the
district shall be in compliance with all state laws concerning bidding and
construction;
(viii) Provide that
the Division or any person acting on behalf of the Division may conduct on-site
inspections of the new construction project as frequently as the Division deems
necessary to assure the prudent and resourceful expenditure of state funds with
regard to public school academic facilities;
(ix) Determine how risk will be allocated
between the school district and the state if the new construction project is
not completed;
(x) Describe how
changes in the school district's wealth index over the course of the new
construction project will be treated; and
(xi) Specify that the agreement is void and
the state will have no further obligation to provide state funds to the school
district for the new construction project that is the subject of the agreement
if the school district does not raise local resources and apply local resources
toward the project as provided under the agreement.
7.03 The agreement specified above and
required by Ark. Code Ann. §
6-20-2507 is attached to these
Rules as Appendix B, as set forth in Section 5.06 of these rules.
7.04 All funding agreements under these Rules
are contingent upon the prudent and resourceful expenditure of state funds as
determined by the Division.
7.05
Before the district is allowed to proceed and start construction on the
project, the district must submit, and the Division must approve, its final
plans and complete specifications.
7.06 Within sixty (60) days of the
Commission's final approval and funding of the district's partnership project,
the agreement referenced in Sections 7.02 and 7.03 of these rules must be
executed by the district and the Division. The Division shall have the right to
grant a waiver from this provision, if the district has unusual and limited
circumstances which prevent it from executing the agreement within the sixty
(60) day timeframe.
7.07 If the
Partnership Agreement is not executed within the time period set forth in
Section 7.06 of these Rules, unless there is an approved waiver request or
appeal pending before the Academic Facilities Review Board or Commission, the
state's financial participation in whole or in part may be deemed null and void
by the Division.
Construction of the project, as evidenced by a signed
construction contract, must begin within eighteen (18) months from the date of
the final approval of the project by the Commission. The district must obtain
the Division's approval of the completion of all district project requirements
within four (4) years from the date of final approval of the project by the
Commission. For the purposes of this subsection, the phrase "signed
construction contract" includes construction management contracts.
A district may request a waiver of timelines in Section 7.07 of
these Rules if the district believes it can show unusual and limited
circumstances which prevent it from meeting the timelines. State financial
participation in a district's project is contingent upon the district meeting
all timelines and deadlines set forth in these Rules. Absent an approved appeal
or waiver, the Division may render the state's financial participation in a
district's project null and void in whole or in part for failure to meet all of
the timelines and deadlines set forth in these Rules and may recapture any
state partnership funding assistance funds already paid to the district.
7.08 Payment of an incentive
awarded pursuant to Section 10.0 of these Rules shall not be made to a district
until the new facilities project is completed and the appropriate third-party
certification entity or assessor has awarded final certification for the
project.
8.01 A school district may
appeal any determination of the Division to the
Commission pursuant to the Commission for Arkansas Public
School Academic Facilities and Transportation Rules Governing Appeals From
Determinations of the Arkansas Division of Public School Academic Facilities
and Transportation.
8.02 If
the district appeals the determination of the Division to the Commission or the
Academic Facilities Review Board, the Commission or the Academic Facilities
Review Board shall have the authority to fully review all parts of the
district's Partnership Project(s) (project) and may approve, deny, reduce or
increase the amount of state financial participation in any or all of the
appealed project(s).
9.00
DISTRIBUTION AND TRACKING OF STATE FINANCIAL PARTICIPATION
9.01 If a school district qualifies for state
financial participation under this Section, the Division shall certify the
amount of state financial participation to the Commission for oversight
purposes. The Commission shall certify the amount to the Arkansas Division of
Elementary and Secondary Education for payment.
9.02 The amount of the State Financial
Participation under these rules is limited to the amount resulting from the
application of the academic facilities wealth index to the project cost
promulgated by the Commission to calculate the cost necessary to bring the
academic facility into compliance with the Arkansas Public School Academic
Facilities Manual under Ark. Code. Ann. §
6-20-2509, plus any incentives
awarded pursuant to Section 10.0 of these Rules.
9.03 The Commission shall certify the amount
to the Arkansas Division of Elementary and Secondary Education for payment,
less any withholding or reduction imposed by the Commission under Ark. Code
Ann. §
6-21-114(d) for a
school district's failure to comply with the Commission's insurance
requirements.
9.04 For tracking
purposes, the school district shall account for the funds received as state
financial participation under this Section as restricted funds and shall
account for the funds in accordance with provisions of law, including, without
limitation, the Arkansas Educational Financial Accounting and Reporting Act of
2004, Ark. Code Ann. §
6-20-2201 et seq., and Rules
established by the Arkansas State Board of Education and the Commission.
10.00 INCENTIVES FOR "GREEN"
FACILITIES
10.01 The purpose of
this Section is to encourage school districts to build environmentally-friendly
new facilities by offering financial incentives through the Academic Facilities
Partnership Program.
10.02
DEFINITIONS - For the purpose of this Section, the following terms mean:
10.02.1.1 "LEED Certification" -
Certification of a project by a professional third-party certification entity
pursuant to the Leadership in Energy and Environmental Design (LEED) for
Schools Rating System developed by the U.S. Green Building Council and
administered by the Green Building Certification Institute.
10.02.1.2 "Green Globes Certification" -
Certification of a project by a professional third-party assessor pursuant to
the Green Globes Rating System developed by the Green Building
Initiative.
10.03 A new
facilities project shall be eligible for financial incentives under this
Section if the school district gives timely notice to the Division of the
district's intent to seek LEED certification or Green Globes certification for
the project. In its notice, the district shall identify which specific type and
level of certification it intends to seek.
10.03.1 Notice must be given concurrently
with the district's application for state financial participation under Section
4.0 of these Rules.
10.04 A district which completes an eligible
new facilities project and successfully obtains LEED certification or Green
Globes certification for the project shall be awarded an incentive calculated
as a percentage of the amount of state financial participation in the project,
as follows:
(i) LEED Certification, Silver:
one percent (1%);
(ii) LEED
Certification, Gold: one and one-half percent (1.5%);
(iii) LEED Certification, Platinum: two
percent (2%);
(iv) Green Globes
Certification, Two Globes: one percent (1%);
(v) Green Globes Certification, Three Globes:
one and one-half percent (1.5%); or
(vi) Green Globes Certification, Four Globes:
two percent (2%).
10.05
A project shall be eligible for financial incentives under this Section for
LEED certification or for Green Globes certification, but not for both
certifications. No project shall be eligible for financial incentives for a
level of certification higher than the level identified in the district's
application for state financial participation.
10.06 Financial incentives awarded under this
Section shall be in addition to the amount of state financial participation
calculated under these Rules.
10.07
A district's application or eligibility for financial incentives under this
Section shall have no effect on the prioritization of a project under Section
5.05 of these Rules.
