Current through Register Vol. 49, No. 9, September, 2024
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 used for
pre-kindergarten education, including related areas such as the physical plant
and grounds, 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 that 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.
3.01.6 In order to be
eligible for Partnership Program funding, facility spaces must be fully
utilized only for academic purposes. The Division reserves the right to monitor
facility use, and should it find that funded facility spaces are not being
utilized entirely for academic instruction, may require full or partial
repayment of any state financial participation in the facility.
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 computations set forth in Ark.
Code Ann. §
6-20-2502(1).
3.03.1 In the case of a voluntary
consolidation or annexation, the wealth index shall be calculated as specified
in Ark. Code Ann. §
6-20-2510(b).
3.04 "Additions" - 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.
3.04.1 Additions will be considered only for
missing academic space.
3.04.2 Any
additions must be connected to the standing facility directly or by a
conditioned and fully enclosed walkway (hallway), and must be at least ten
thousand (10,000) square feet. If site conditions or projected enrollment make
this provision unduly burdensome, the Division will consider a
waiver.
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, which is Appendix "A"
to these Rules. 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. 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 percent (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 statewide needs priority list per
Ark. Code Ann. §
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%),
nor is a Building Value of zero percent (0%) or below sufficient justification
for state financial participation in replacing a facility.
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.
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 addition 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 addition project subject to the requirements of
Section 3.35 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.
3.13.3 The erection of walls in an existing
"open format" school shall not constitute an eligible conversion
project.
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 Plan" - A six-year plan developed by a school district that contains
Division provided 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.
Non-academic spaces shall not be eligible for funding.
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 Replacement 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 Appendix "A" to these Rules.
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 Replacement project for the Division's review in accordance with
Section 3.35 of these Rules. Submission of inaccurate PORs, including but not
limited to incorrect building sizes, inaccurate reporting of existing spaces,
and inaccurate existing campus size, may be grounds for project disapproval.
3.24.1 Enrollments on PORs shall reflect the
state produced enrollment projections.
3.24.2 School enrollments shall reflect the
current school enrollment (as reported to the Division of Elementary and
Secondary Education in October), plus or minus the appropriate percentage of
student gain or loss indicated by the enrollment projections.
3.24.3 All POR enrollments will represent the
highest five (5) year projection from requested funding date for all grades
involved in the project.
Districts may request to use ten (10) year enrollment
projections to be used in calculating all spaces and space sizes.
3.24.4 In the case of districts
with declining enrollment, POR enrollment shall be based on enrollment for the
two (2) years beyond the requested potential project funding year. For purposes
of this Section, "declining enrollment" means a drop in the ten (10) year
enrollment projection.
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
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.
3.27
"Public School Facility" - Any public school building or space, including
related areas such as the physical plant and grounds, that are used for any
purpose, including, without limitation:
3.27.1
An extracurricular activity;
3.27.2
An organized physical activity course defined in Ark. Code Ann. §
6-16-137;
3.27.3 Pre-kindergarten education;
3.27.4 District administration; or
3.27.5 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.
3.28 "Qualified Cost" - A
projected qualified construction cost for funding purposes determined by the
Division utilizing the specific project cost funding factors set forth 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 Replacement, and Conversion Projects are defined as
set forth in Sections 3.28(i) and 3.28(ii) 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 Qualified 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 Qualified Cost for conversion
projects or projects that are building systems or components thereof, not
covered in Section 3.28(i) of these Rules (above), will be the lesser of
either:
(a) The Warm, Safe, and Dry Systems
Replacement 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 Qualified Cost the total amount of grant funds received
by the school district for the shelter or area. Districts shall indicate the
amount of grant funds 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.
3.28.1
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.
3.28.2 Warm, Safe, and
Systems Replacement 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.
3.29 "Renovation Project" - A Warm,
Safe, and Dry Systems Replacement 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 Replacement 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 additions or conversion projects,
the drawing also shall be labeled to identify each interior space with interior
room net square footage in the "footprint" of the entire project. For Warm,
Safe, and Dry Systems Replacement projects, the replacement major system
components and their tentative 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
qualified cost described in Section 3.28, multiplied by the difference of one
hundred percent (100%), minus the school district's wealth index. Except for
approved Warm, Safe, and Dry Systems Replacement projects, only that total
gross square footage space 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
(i) When a school district is proposing a new
construction project on an existing campus with existing educational
facilities, the district shall submit accurate and complete PORs of the
existing campus. The Division shall compare the appropriate existing total
gross square footage space of the existing facilities 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 that is not
currently available on the school campus (based on the Division's campus
reports, submitted PORs, onsite inspections, or other confirmed information
made available to the Division) or on other campuses affected by grade
reconfigurations as part of the project. The Division shall disapprove any
additional spaces that result in spaces, space sizes, or both, that are above
POR requirements. The district shall submit accurate and complete PORs for all
campuses and grades affected by the grade reconfigurations, based on the one
highest enrollment projection year, that 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.
(ii) Consolidation and annexation projects
containing proposed additions to existing facilities will be evaluated in
accordance with Section 3.35.1, except that the Division may consider all
school closings in the consolidation or annexation when determining space when
available on other campuses.
3.35.2 On A New School Campus:
(i) 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 all other campuses servicing
the same grade(s). 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, submitted
PORs, onsite inspections, 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 complete and accurate 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. Districts shall not submit future cycle projects for
additional space or conversions in a new facility yet unbuilt or PORs that
effectively negate the excess space PORs and results of this Section. The State
recognizes that the four particular space areas mentioned in Section 3.35.1 of
these Rules that existed in the school district on or before 2008 may skew the
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 for those four areas that existed in the district on or before
2008.
(ii) Consolidation and
annexation projects shall not be penalized for current space under Section
3.35.2(i), nor are they subject to the provisions of Section 5.02.
3.35.3 Warm, Safe, and Dry Systems
Replacement: For new construction projects not requesting additional space or
replacement of academic square footage, state financial participation only will
be provided for Warm, Safe, and Dry Systems Replacement 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 provisions 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
Replacement" -
(i) New construction projects
that support a facility's needs as they pertain to fire, safety, roofing, HVAC,
and structural. Roofing, plumbing, fire, safety, 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. The Division shall verify system replacement
needs through work orders documented in the state-provided Computerized
Maintenance Management System, condition assessments submitted in master plans,
on-site evaluations, etc. Life cycle alone shall not be sufficient
justification for state financial partnership for state financial partnership
in replacement. 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, or if units have been installed within the previous five
(5) years. Any project application including recently replaced HVAC units as a
part of a system replacement must indicate in the application the date of
recent installation and the square feet the recently installed components
service.
(ii) Safety system
projects must be part of a comprehensive campus security plan, 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, and include training for proper
operation of systems. Eligible security upgrades shall include 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, and
vehicle barriers. Upgrades of existing systems, extensions of a system, and
replacement of systems are not eligible. 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. Any added security systems must receive approval from
relevant state agencies, including but not limited to, the Fire Marshal,
Arkansas Building Authority, Arkansas Department of Health, and the
Division.
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, and shall represent a prudent use
of state funds. To be eligible for state financial participation in a space
replacement project, the facility condition index of each building or addition
must be sixty-five percent (65%) or greater at the time of evaluation by the
Division. Any building not meeting the sixty-five percent (65%) threshold is
ineligible for state financial participation in replacement. Any building taken
out of the suitability analysis may not be used for any activity in which
students are in the building subsequent to replacement project
completion.
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%), nor is a building value at or below
zero percent (0%) sufficient justification for state financial participation
for a replacement building.
4.00 SUBMISSION PROCESS
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 website no 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 either of the following categories:
* Warm, Safe, and Dry Space Replacement and Systems Replacement
Projects, and;
* Space/Growth Projects (new facilities, additions,
conversions)
If the state provides financial participation for an addition
or conversion project, or a consolidation or 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 addition projects concerning
gymnasiums, media centers, 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. State Financial Participation shall not be
used for any gym space used for competition. State financial participation for
undersized facilities shall be limited to the space required to bring a
facility up to size, and shall not be approved for a new facility based on size
alone. Any new project must be deemed a prudent use of state funds.
School districts are encouraged to discuss 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
(that include accurate and complete 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 approved if the district does not have a complete and approved
facilities master plan as of September 1 of each even-numbered year. No project
application shall be submitted, reviewed, or approved if the district has begun
construction on the project.
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 Division-approved demolition or repurposing 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, kitchen, or media
center space 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, kitchen, or media
center space, the project will be eligible for state financial participation to
the POR required size of a replacement student dining, kitchen, or media center
space. Replacement of a student dining, kitchen, or media center space 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 and represent a prudent use of state
funds shall be denied by the Division. Any district whose submission is denied
by the Division under this Section 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 already has 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 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 may multiple system projects be
combined to meet the minimum dollar threshold for Partnership Program funding
for a Warm, Safe, and Dry Systems Replacement 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
district 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 All applications for state
financial participation under this Partnership Program for new construction
projects that are not considered Warm, Safe, and Dry Systems Replacement
projects pursuant to these Rules shall be prepared in accordance with the POR
except in unusual and limited circumstances 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 shall result in the "combining" of funded spaces
in which the waived space being added to another space results in one space
being larger than the required POR size. POR-required spaces shall be
individual and unique spaces and shall not consist of temporary or moveable
walls, folding or temporary stages, etc. Floor to ceiling accordion-type walls
may be permitted in limited and unusual circumstances upon district request and
Division approval. 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 an early review
conference that shall be held within seventy-five (75) days after the date of
request. The district may be advised through the early 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. To be
granted an early project review, the district must submit a complete
application.
4.08.1 The early 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 (accurate and complete PORs, resolutions,
schematic drawings as required by Section 3.31, and other required
documentation), 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;
(iv) Other supporting documents submitted
with the application; and
(v)
Application consistency and accuracy.
5.02 The Qualified 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 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
Statewide Needs Lists, Project Ranking, and Project Funding
5.05.1 The following process will be used to
develop the Statewide Warm, Safe, and Dry Needs List:
(i) First, the Division shall numerically
rank each campus based on campus value. The lowest value will be ranked first
and the highest value will be ranked last.
(ii) Second, the Division will numerically
rank campuses based on the facilities condition index. The highest value will
be ranked first and the lowest value will be ranked last. "Facilities condition
index" has the same meaning as in the Commission for Academic Facilities and
Transportation Rules Governing the Facilities Master Plan.
(iii) Third, the Division will rank campuses
by campus value ranking weighted fifty percent (50%) and facility condition
index ranking weighted fifty percent (50%). Once each campus is ranked, the
Division shall publish a list with the campus with the lowest score being
ranked first and the campus with the highest score being ranked last.
5.05.2 The following process will
be used to develop the Statewide Space/Growth needs List:
(i) First, the Division will rank districts
on five (5) year projected enrollment growth percentage based on Division
projections. The highest value will be ranked first and the lowest value will
be ranked last.
(ii) Second, the
Division will rank districts on five (5) year projected student enrollment
growth based on Division projections. The highest value will be ranked first
and the lowest value will be ranked last.
(iii) Third, the Division will rank districts
on school district suitability based on academic gross square feet needed minus
academic gross square feet present. The highest value will be ranked first and
the lowest value will be ranked last.
(iv) Fourth, the Division will rank districts
on school district suitability percentage based on suitability divided by
academic gross square feet present. The highest value will be ranked first and
the lowest value will be ranked last.
(v) Fifth, the Division will rank districts
by five (5) year projected student enrollment percentage ranking weighted
twenty-five percent (25%); five (5) year projected student enrollment growth
ranking weighted twenty-five percent (25%); school district suitability ranking
twenty-five percent (25%); and school district suitability percentage ranking
twenty-five percent (25%).
Once each district is ranked, the Division shall publish a list
with the district with the lowest score being ranked first and the district
with the highest score being ranked last.
5.05.3 Ranking of Projects: For the 2023-2025
and subsequent project funding cycles, all approved new construction projects
shall be entitled to receive state partnership assistance in the following
ranked order in two separate categories:
(1)
Warm, Safe, and Dry (Systems Replacement and Space Replacement) projects; and
(2) Space/Growth projects.
(i) First, the
Division will rank all school projects based on the academic facilities wealth
index of the school district. The district with the lowest wealth index shall
be ranked first and the district with the highest wealth index shall be ranked
last.
(ii) Second, the Division
will rank each project according to the Statewide Facilities Needs Lists (as
calculated in Sections 5.05.1 and 5.05.2 of these Rules).
(iii) Third, the Division will rank each
project according to the percentage of district expenditures spent on
maintenance of academic facilities for the last five (5) fiscal years as
reported in accordance with Section 4.05.10 of these Rules. The district with
the highest percentage spent on maintenance shall be ranked first, and the
district with the lowest percentage spent on maintenance shall be ranked
last.
(iv) Fourth, the Division
will rank projects by academic facility wealth index ranking weighted thirty
percent (30%); Statewide Facility Needs List ranking weighted at fifty percent
(50%); and percentage of district expenditures spent on maintenance of academic
facilities for the last five (5) fiscal years ranking weighted twenty-percent
(20%). The project with the lowest score will be ranked first, and the project
with the highest score will be ranked last.
(v) The Division will ensure that all
required district preventive maintenance inspections are completed and
documented for the previous fiscal year. Supporting documentation shall include
completed CMMS work orders and uploaded inspection documents. Projects from
districts that have not completed and documented all required preventive
maintenance inspections shall be moved to the bottom of the project ranking
list, in the order the project was ranked under Section 5.05.3(i) through
(iv).
5.05.5
Commission Funding of Projects
For each of the two years of a Partnership Program funding
cycle there will be two (2) categories of funds from which to fund projects:
one for Warm, Safe, and Dry System Replacement and Space Replacement projects;
and one for Space/Growth projects. Projects will be funded as follows for each
year of a funding cycle:
(i) Fifty
percent (50%) will be allocated to each category to fund projects in ranked
order on the respective project ranking list.
(ii) Warm, Safe, and Dry projects will be
funded in ranked order from the Warm, Safe, and Dry category until either all
funds are allocated or until all of those projects are funded. If in Year 2 of
a funding cycle any funds remain after all Warm, Safe, and Dry projects are
funded, and if there are any unfunded Space/Growth projects remaining, the
remaining funds will be transferred to the Space/Growth category.
(iii) Space/Growth projects will be funded in
ranked order from the Space/Growth category until either all funds are
allocated or until all of those projects are funded. If in Year 2 of a funding
cycle funds remain after all Space/Growth projects are funded, and if there are
any unfunded Warm, Safe, and Dry projects remaining, the remaining funds will
be transferred to the Warm, Safe, and Dry category.
(iv) If funds become available during the
funding cycle year due to rescinded projects, unfunded projects remaining in
the appropriate category will be funded in ranked order.
(v) Any funds remaining after Year 1 of a
funding cycle will carry over into the same category for Year 2 of the funding
cycle. Any funds remaining after Year 2 will carry over into the next funding
cycle and will not be designated as belonging to one category or the
other.
5.06
If a school district's new construction project is approved for funding in the
current funding cycle, the district must execute the Partnership Agreement,
which is Appendix "B" to 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 and remain insured for one hundred percent
(100%) 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.
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; and
(xii) Specify that any facility built with
Partnership Program funds must be used only for academic purposes as described
in Section 3.01 of these Rules.
7.03 The agreement specified above and
required by Ark. Code Ann. §
6-20-2507
and Section 5.06 of these Rules is Appendix "B" to 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 A
district may
at its own expense and risk begin developing
construction plans and specifications and begin seeking all required state
agency approvals before the Commission approves and funds the project. The
Division and State of Arkansas are not obligated to pay an expenditure until
the project has been approved and funded by the Commission. The Division will
not review project plans/agency approvals until the project has been approved
and funded by the Commission absent an early construction start waiver approved
by the Division.
7.05.1 The district shall
not begin construction on a project before the Commission approves and funds
the project except in an emergency situation that threatens the safety of
students and faculty, or that creates a learning environment that is not warm,
safe, or dry. If the district believes such an emergency situation exists, the
district shall contact the Division and request a written early construction
start waiver from the Division allowing the district to begin construction
at its own expense and risk.
7.05.2 Upon receipt of an early construction
start request, the Division may:
(i) Grant
the early construction start request. All project expenses may be reimbursed
pending Commission approval and funding;
(ii) Grant a partial early construction start
request in which the district shall pay for and not be reimbursed for any
construction activities prior to the project funding date (the Division will
recalculate the qualified project cost to subtract costs already incurred;
or
(iii) Deny the early
construction start request completely.
7.06 Before the district is allowed to
proceed and start construction on a project, the district must submit, and the
Division must approve, its final plans and specifications, as well as all
required state agency approvals.
7.07 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.
7.08 If the
Partnership Agreement is not executed within the time period set forth in
Section 7.07 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.
7.09 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.
7.10 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.
7.11
For the purpose of Section 7.00, the phrase "signed construction contract"
includes construction management contracts specific to the approved and funded
project.
7.12 For the purpose of
these Rules, "completion" is defined as successful inspection by the Division
and the Division's receipt from the district of a copy of the certificate of
occupancy from the appropriate code authority.
7.13 Districts must complete all construction
activities, successfully complete a "punch" list, make final retainage payments
to the contractor, and submit its final pay request to the Division within five
(5) years of funding of the project by the Commission.
7.14 Absent a written waiver or variance, the
Division shall rescind, recapture, or both, Partnership funds if the project is
found not to have been built to approved plans and specifications.
7.15 A district may request a waiver of
timelines in Section 7.07 through 7.13 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.
7.16 Absent an approved
appeal or waiver, the Division shall 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.
7.17 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.
I.
AGREEMENT
APPLICABILITY
This Project Agreement ("Agreement") will become
effective upon the signing of both parties and be binding on the date signed by
the Director of the Division of Public School Academic Facilities. The District
certifies that scope planning and financial planning have been completed prior
to the project application submission. The District may have, at the District's
own expense and risk, begun developing construction plans and specifications
and began seeking all required state agency approvals. No additional aspect of
the project including construction will proceed prior to the signing of this
Agreement. By signing the Agreement the District certifies that it has not
begun the project beyond the steps outlined above. The Division and State of
Arkansas is not obligated to pay any expenditures until the project has been
approved and funded by the Commission. The signing of this Agreement certifies
that the Commission for Arkansas Public School Academic Facilities and
Transportation ("Commission") has approved the project and funding under the
Academic Facilities Partnership Program. The District further acknowledges by
signing the Agreement that, should it be determined that the Project began
prior to the signing of this Agreement, the Commission may exercise one of the
following options:
(1)
exercise its authority for project disapproval,
(2)
declare any project aspects
undertaken prior to the signing date ineligible for program funds, or
(3) require the
District to modify any plans and or contracts such that they are in conformance
with the provisions of this Agreement. The District agrees that should any of
these options be exercised by the Commission, the Agreement will be amended and
the State Financial Participation adjusted accordingly. The Commission also may
exercise its option to amend the Agreement under any of the following
conditions:
(1)
should the plan review or the approval of a variance request by the
District cause a change in scope;
(2)the final contract price alters
the initial State Financial Participation as stated in the Agreement;
(3)should it be
discovered that the District submitted any inaccurate information on the
project funding application; or
(4)the District receives a safe room
grant from ADEM or FEMA. Furthermore, if construction of the project has not
commenced by (enter date 18 months from Commission approval) Click to enter
Date, this Agreement is null and void and any monies paid by the State to a
District shall be subject to immediate recapture by the State. The project must
be completed, as evidenced by a Certificate of Occupancy presented to the
Division and Division inspection completed within four (4) years of funding. A
final pay request must be submitted within one (1) year of the presentation of
the Certificate of Occupancy or five (5) years from project funding by the
Commission, to include retainage and 'punch' list items only. The new facility
must be entered into the district master plan and applicable room data shall be
submitted to the Division in a manner prescribed by the Division prior to final
payment. The parties agree to exercise good faith in the execution of this
Agreement and the completion of the requirements set forth herein, and that
both parties will endeavor to follow and implement the aspects of the program,
the District agrees to comply with all timelines and process requirements in
the Rules Governing the Partnership Program or be subject to those Commission
options referenced above.
VI.
THE PROJECT CONSTRUCTION FUND
A.
The District shall identify and
describe any fund or account, other than the Project Construction Fund ("Fund")
that is related to the Project. The District shall include in the Fund,
sufficient funds as required by law, for issuance of any contracts during the
duration of the project.
B.
The District shall be responsible
for distributing moneys from the Fund upon receipt and approval of proper
invoices.
C.
Transactions involving the Fund shall be restricted to:
(1)
payments for design and project
management services, (2) payments to contractors, (3) purchases related to the
project, 4) transactions authorized for establishing and administering the
investment accounts and construction administration.
No Fund moneys shall be spent for any items
inconsistent with the provisions of the Arkansas School Facility Manual and
Division policies, unless a variance is approved by the
Division.
D.
The District shall not transfer
moneys from the Fund, investment earnings credited to the Fund, to any other
fund or account except as permitted by this Agreement or with the written
approval of the Division.
E.
The District shall provide a full
accounting of the Fund, upon request of the Division. The Division reserves the
right to audit the Fund, or any expenditure related to the Fund or the
Project.
F.
The
contingency reserve portion of the construction budget shall be used to pay
only costs resulting from unforeseen job conditions, to comply with rulings
regarding building and other codes, to pay costs related to design
clarifications or corrections to contract documents, and to pay the cost of
settlements and judgments related to the Project, unless otherwise approved by
the Division.
G.
If the Fund, including all investment earnings credited to the Fund, and any
interest earned through completion of the Project, becomes depleted by payments
of proper Project costs, the District shall complete the Project, by
contributing additional funds. The State share is limited to the State
financial participation as stated in the Agreement and any
amendments.
H.
This Agreement is contingent on and subject to the District's ability to raise
appropriate local resources. The Agreement may be declared null and void and
the State will have no further obligation to provide State funds to the
District for the Project that is the subject of this Agreement if the District
fails to raise local resources and apply local resources toward the Project as
provided under this Agreement.
VII.
CONTRACT ADMINISTRATION
A.
The District shall competitively
bid, execute and administer contracts for construction on the Project and all
other contracts as necessary, in compliance with State of Arkansas bidding
procurement laws in place at the time of bid. It further agrees that it will
follow all State and local government procurement and construction codes,
Division policies and manuals regarding any procurement actions, and
administration and execution of design and construction contracts. Both parties
further acknowledge that this Agreement is in addition to and not to replace
any State annotated codes, policies or rules governing State procurement
practices and contract administration.
B.
Any proposed changes to the plans
or scope of the Project that affects the Project budget cost, Project length or
facility standards shall be brought to the attention of the Division. The
Division reserves the right to conduct on-site inspections of the new
construction as frequently as deemed necessary to insure the prudent and
resourceful expenditure of State funds.
C.
The District will be responsible
for all administrative measures of the bidding procedures.
D.
Should the Project not be
completed, through no fault of the District, the State and the District will
share liability and recovered losses and damages to the extent of the
Agreement. Should the Project not be completed due to the fault of the
District, the State reserves the right to recover its total loss from District
financial balances.
E.
The Division will make final payment to the District upon:
(1)
receipt of the final invoice
submitted to the District by the contracted service provider,
(2)entry by the
District of any new facilities, including detailed space data, into the Master
Plan, and
(3)
final
inspection by the Division. Final invoice will indicate:
(1)
original contract
price,
(2)
changes
to cost
(3)
final
contract cost and be certified for payment in accordance with District policy.
All pay requests shall be clearly identifiable and chargeable to the project
listed in this Agreement. Combining projects under one master construction
contract is allowed as long as each project is billed separately and the cost
of each project is clearly indicated in the contract
documents.
F.
This Agreement will be declared
null and void and the State will not have any obligation to provide State funds
to the District for the Project that is the subject of this Agreement if the
District fails to execute this Agreement, or if the District fails to adhere to
any of the conditions of the Agreement, or if the District fails to comply with
any and all State laws regarding school construction.
VIII.
MAINTENANCE OF
COMPLETED FACILITIES
Upon completion of the project and prior to final
payment by the Division, the District will create the preventative maintenance
schedules of any new space facility included in the District's overall
maintenance plan contained in the District's computerized maintenance
management system as required by the Academic Facilities Master Plan prior to
final payment by the Division.
IX.
AGREEMENT CONSIDERATIONS
A.
All provisions of this Agreement
are contingent upon the District's full compliance with §
6-20-2501 et. seq., the
Partnership Rules and the Commission's determination the Project continues to
be a prudent and resourceful use of State funds, and the ability of the
District to meet required times or obtain appropriate waivers and raise
specified local resources to support the Project. Any failure of the District
in these areas shall be grounds for this Agreement to be deemed null and void
by the Commission and for the District to be required to reimburse any
partnership funds provided to the District for any partnership project the
District failed to maintain compliance on.
B.
Nothing in this Agreement shall be
construed to waive the provisions of sovereign immunity or any other defense or
immunity to which the State of Arkansas or its Commissions, Divisions, or
Agencies may be entitled.
C.
All concerns and issues related to
this Agreement are governed by the provisions of §
6-20-2501
et.seq.
D.
If the
District appeals the determination of the Division as to a partnership project
to the Commission, the Commission shall have the authority to fully review all
parts of the District's Partnership Project(s) and may approve, deny, reduce or
increase the amount of State financial participation in any or all of the
appealed project(s).
In witness whereof, the parties have executed this
Agreement on the date(s) set forth below.
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