Agreement between the division and the school district concerning state financial participation
Arkansas Code § 6-20-2512
- (a) If the Division of Public School Academic Facilities and Transportation 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 financial participation and the conditions that must be satisfied by the school district.
(b) At a minimum, the agreement shall:
(1)
- (A) Identify the estimated amount of local financial participation and state financial participation in the new construction project.
- (B) The estimated amount of the state 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.
- (C) The final amount of the state financial participation will be specified upon receipt of the final contract amount and determined as specified in 6 CAR § 321-105(c);
- (2) Define the method of and schedule for transferring state financial participation funds to the school district;
- (3) 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;
- (4) Define the detailed scope of work for which the agreement applies;
- (5) Provide that changes to the plans for the new construction project shall be made in consultation with the division;
- (6) Provide the areas of project responsibility of both parties during the course of the project;
- (7) Provide that the district shall be in compliance with all state laws concerning bidding and construction;
- (8) 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 ensure the prudent and resourceful expenditure of state funds with regard to public school academic facilities;
- (9) Determine how risk will be allocated between the school district and the state if the new construction project is not completed;
- (10) Describe how changes in the school district's academic facilities wealth index over the course of the new construction project will be treated;
- (11) 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
- (12) Specify that any facility built with Academic Facilities Partnership Program funds must be used only for academic purposes as described in 6 CAR § 321-102(3).
- (c) The agreement specified above and required by Arkansas Code § 6-20-2507 and 6 CAR § 321-104(f) is Appendix B to this part.
- (d) All funding agreements under this part are contingent upon the prudent and resourceful expenditure of state funds as determined by the division.
(e)
(1)
- (A) 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 for Arkansas Public School Academic Facilities and Transportation approves and funds the project.
- (B) The division and State of Arkansas are not obligated to pay an expenditure until the project has been approved and funded by the commission.
- (C) The division will not review project plans or give agency approvals until the project has been approved and funded by the commission absent an early construction start waiver approved by the division.
(2)
- (A) The district shall not begin construction on a project before the commission approves and funds the project except in unusual and limited circumstances.
- (B) If the district believes unusual and limited circumstances exist, the district shall contact the division explaining these unusual and limited circumstances and requesting a written early construction start waiver from the division allowing the district to begin construction at its own expense and risk.
(3) Upon receipt of an early construction start request, the division may:
- (A)
(i) Grant the early construction start request.
(ii) All project expenses may be reimbursed pending commission approval and funding;
(B)
- (i) 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.
- (ii) The division will recalculate the qualified project cost to subtract costs already incurred; or
- (C) Deny the early construction start request completely.
- (f) 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.
(g)
- (1) A public school district shall have a school safety expert review and advise on architectural plans for a public school facility before the new construction of the public school facility.
(2) To be considered a school safety expert, an individual must:
(A) Be one (1) of the following:
- (i) Employee of the Division of Public School Academic Facilities and Transportation of the Department of Education;
- (ii) Employee of a public school district;
- (iii) Employee of a local law enforcement agency; or
- (iv) Employee of an education service cooperative;
(B) Undergo the following trainings available through the University of Arkansas Criminal Justice Institute’s Arkansas Center for School Safety:
- (i) Crime Prevention Through Environmental Design;
- (ii) School Site Safety Assessment;
- (iii) School Safety Coordinator Academy; and
- (iv) Advanced School Safety Coordinator Academy; and
- (C) Earn six (6) hours of continuing education in school safety or school security annually.
(h)
- (1) Within sixty (60) days of the commission’s final approval and funding of the district’s partnership project, the agreement referenced in subsections (b) and (c) of this section must be executed by the district and the division.
(2) 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-day timeframe.
- (i) If the partnership agreement is not executed within the time period set forth in subsection (h) of this section, unless there is an approved waiver request or appeal pending before the Academic Facilities Review Board or commission, the state financial participation in whole or in part may be deemed null and void by the division.
- (j) 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.
(k)
- (1) 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 every project that is not a warm, safe, and dry systems replacement project.
(2) For warm, safe, and dry system replacement projects, the district must obtain the division’s approval of the completion of all district project requirements within two (2) years from the date of final approval of the project by the commission.
(l) “Signed construction contract” includes construction management contracts specific to the approved and funded project.
- (m) “Completion” means 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.
- (n) 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 for every project that is not a warm, safe, and dry systems replacement project.
- (o) Absent a written waiver or variance, the division shall rescind, recapture, or both, program funds if the project is found not to have been built to approved plans and specifications.
(p)
- (1) A district may request a waiver of timelines in subsections (h) – (n) of this section if the district believes it can show unusual and limited circumstances which prevent it from meeting the timelines.
- (2) State financial participation in a district’s project is contingent upon the district meeting all timelines and deadlines set forth in this part.
- (q) Absent an approved appeal or waiver, the division shall render the state 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 this part and may recapture any state partnership funding assistance funds already paid to the district.
- (r) Payment of an incentive awarded pursuant to 6 CAR § 321-109 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.