Kentucky Association of School Business Officials (KASBO) Presenter: Greg Dunbar, AIA KDE District Facilities Branch, Manager greg. dunbar@education. ky. gov
Agenda n 702 KAR 4: 160 Capital Construction Process Revision Effective September 6, 2013 § General Information § Typical Project Workflow and Background n Financial Aspects of Capital Construction Process § BG-1 Project Application (BG-1) § BG-4 Contract Closeout § BG-5 Project Closeout 2
School Facilities Affect Academic Outcomes School facilities greatly affect students teachers abilities to effectively perform. q q q and Lighting Spatial configurations Noise Comfort (heating and cooling) Air Quality Source: National Clearinghouse for Educational Facilities “Do School Facilities Affect Academic Outcomes? ” by Mark Schneider, November 2002 3
School Facilities Affect Student Performance National Clearinghouse for Educational Facilities Resource List edfacilities. org 167 topics-19, 000 records 4
Facilities Planning and School Building Best Practice Goals q 90% of facilities shall be in good to new condition. q All buildings shall be 100% accessible to the non- ambulatory handicapped. q All buildings shall meet technology goals for voice, video and data. q No portable classrooms shall be in use. q Provide adequate maintenance staff (about 1 per building) and funding equal to about 3 -7% of total general fund budget. 5
KENTUCKY CONSTITUTION and SCHOOL LAWS: EDUCATION § 183. General Assembly to provide for school system. The General Assembly shall, by appropriate legislation, provide for an efficient system of common schools throughout the State. 1990 KENTUCKY EDUCATION REFORM ACT (KERA): 5. –Constitutionality of School System. The Kentucky Supreme Court ruled that Kentucky’s entire system of common schools was unconstitutional. That decision applied to the entire sweep of the system—all its parts and parcels; it applied to the whole gamut of the common school system in Kentucky. Rose v. Council for Better Educ. , Inc. , 790 S. W. 2 nd 186 (Ky. 1989). 6
KENTUCKY CONSTITUTION and SCHOOL LAWS: EDUCATION Article 18. Paragraph 2. describes this efficient system: The essential, and minimal, characteristics of an “efficient” system of common schools, may be summarized as follows: 1) The establishment, maintenance and funding of common schools in Kentucky is the sole responsibility of the General Assembly. 2) Common schools shall be free to all. 3) Common schools shall be available to all Kentucky children. 4) Common schools shall be substantially uniform throughout the state. 5) Common schools shall provide equal educational opportunities to all Kentucky children, regardless of place of residence or economic circumstances. 6) Common schools shall be monitored by the General Assembly to assure that they are operated with no waste, no duplication, no mismanagement, and with no political influence. 7) The premise for the existence of common schools is that all children in Kentucky have a constitutional right to an adequate education. 8) The General Assembly shall provide funding which is sufficient to provide each child in Kentucky an adequate education. 9) An adequate education is one which has as its goal the development of the seven (7) capacities recited previously. Rose v. Council for Better Education, Inc. 7
eq’ui-ty (ek’wi-te) n. the application of common principles of fair dealing 8
adequacy (ad’i-kwe-se) n. - equal to a given requirement or occasion; sufficient; suitable for the purpose. 9
KRS 162. 060 Plans for school buildings to be approved. The chief state school officer shall be furnished a copy of all plans and specifications for new public school buildings contemplated by boards of education and for all additions to or alterations of old buildings. He shall examine or cause to be examined all such plans and specifications and shall approve or disapprove them in accordance with the rules and regulations of the Kentucky Board of Education. Plan reviews for conformance with the Uniform State Building Code shall be conducted only by the Department of Housing, Buildings and Construction. No board of education may award a contract for the erection of a new building or contract for an addition to or alteration of an old building until the plan has been approved by the chief state school officer. Effective: July 15, 2010 10
702 KAR 4: 160. Capital Construction Process Revision Effective September 6, 2013 Regulation Revision n In 2010 what started as a minor change to 702 KAR 4: 160 Capital Construction Process to incorporate the 2009 AIA Construction Manager Documents into regulation became a three year review process resulting in a major restructuring of the regulation. n During this time the Commissioner of Education empaneled a committee consisting of school officials (superintendents and facilities managers) and architects to review the current regulation. In addition, KDE invited other stakeholders including AIA Kentucky, contractors, construction managers, engineers, performance contractors, and others concerned with school construction in the Commonwealth. n From these meetings, changes were directed to be made to the regulation that have now been incorporated, the revised regulation became effective September 6, 2013. 11
702 KAR 4: 160. Capital Construction Process Revision Effective September 6, 2013 Capital Construction Process n Starts with submission of a BG-1 Project Application (BG-1 Form) o Must review DFP o Must understand funding n An application shall be submitted for each project that is: – (a) Funded by Support Education Excellence in Kentucky (SEEK) capital outlay funds, Facility Support Program of Kentucky (FSPK) funds as provided by KRS 157. 620, School Facilities Construction Commission (SFCC) funds, or building funds as provided by KRS 160. 476; – (b) Proposing construction of a new building, addition, or alteration of an existing building that requires design by a design professional (an architect and/or engineer per KRS 322. 360 and KRS 323. 033) for a building or building system; – (c) Proposing a guaranteed energy savings contract; – (d) Proposing a minor project; or – (e) Proposing a major renovation. 12 12
Funding for School Construction The funds that are available for school construction in the Commonwealth are divided into (2) two categories: Unrestricted Restricted Unrestricted funds include the General Fund, which is determined by the SEEK funding program. These funds are used for staff and teacher salaries, transportation, maintenance, athletic and other school programs. A portion of the General Fund can even be used for construction! Restricted Funds are monies that can GENERALLY only be used for: - Capital Construction (new buildings and additions) - Major Renovation Projects 13
Funding for School Construction Restricted Funds Used for “Capital” construction or “major” renovation, come from multiple sources and include; Student Population Based Capital Outlay Funds Property Assessment Based Building Funds and Growth levies Facilities Support Program of KY Qualified Needs Based KY School Facilities Construction Commission (SFCC) Urgent-Needs Grants 14
Student Population Based Funds Capital Outlay Funds are included in the “SEEK” formula. These are calculated at $100 multiplied by a district’s ADA. These monies can be used for direct construction costs. Since these funds are yearlygenerated funds, they can be used to pay for direct debt on bonds that can be issued on the behalf of local school districts. 80% of the total funds calculated can be used for debt service. In 2004 the General Assembly, HB 237 regulated that these funds could be used for payment of property insurance and maintenance projects, subject to the approval of the Commissioner of Education. This was continued by HB 514 in 2008 for fiscal year 2008 -09. HB 4 was passed during the 2009 special session and allows additional flexibility beginning with the 2009 -2010 school year with the submission of a Capital Funds Request Form (CFR).
Property Assessment Based Funds Local Nickel Building Fund Five cents of every one hundred dollars ($100) of a local government’s property tax revenues is granted to the local school district to pay for capital construction projects. This money may be saved and used directly or, since it is a yearly-generated sum, it can be used to pay the debt on bonds that can be issued on the behalf of local school districts. This is sometimes called the “local nickel”. These funds can only be used on priority projects (1 -4) and can be selected by the LEA in any order desired, subject to the approval of the District Facilities Branch. Facilities Support Program of Kentucky (FSPK) The Facilities Support Program of Kentucky (FSPK) funds are included in the “SEEK” formula. These funds are used to equalize funding for districts with low property assessments as a percentage of the Average Daily Attendance. These funds can only be used on priority projects and can be selected by the LEA in any order desired, subject to the approval of the District Facilities Branch. Additional Nickels Available to Certain Districts: Original Growth Nickel Recallable Nickel Category 5 Nickel Equalized Growth Nickel Equalized Facility Funding Nickel 16
Qualified Needs Based Funds The Kentucky School Facilities Construction Commission (SFCC) is a separate state agency that provides funding to districts based on the unmet facility need as identified in the District Facilities Planning process. Funding for this program is requested from the General Assembly by the Commission every two (2) years. The unmet need is calculated during the District Facilities Planning process. The “unmet need” of all of the districts in the State is combined to create the State unmet need. A portion of the total is funded by the General Assembly and each district is allocated money based on their percentage share of the total fund. These funds can only be used on priority projects (1 -4), based on their priority order. SFCC Cash Requirements – Unencumbered Cash balances in Funds 310 and 320 must be escrowed by June 30 th of the odd numbered years. Prior to using SFCC Offers of Assistance, required escrow cash must be included in the total project funding.
Qualified Needs Based Funds Urgent- Needs Grants n n In the 2002 Legislative Session, the General Assembly voted to provide Urgent-Needs Grants to 15 school districts to replace schools that were listed as “Category 5” - very poor condition, had not had significant renovation in the building’s life, had a student population that exceeded SFCC minimum requirements and were in districts that could not reasonably afford to replace the schools. These monies were granted to the districts for bonding to replace the “Category 5” buildings with new schools. Prior categorization of buildings no longer exists. 18
Qualified Needs Based Funds Urgent- Needs Grants n These funds can only be used on a specific, case by case basis for projects identified by the State Legislature for the use of these funds, subject to the approval of the District Facilities Branch. 19
Kentucky Facilities Inventory Classification System (KFICS) n The Kentucky Facilities Inventory and Classification System (KFICS) project was undertaken as mandated by 2010's Senate Bill 132 to assess the physical condition, educational suitability, and technology readiness of the schools relative to Kentucky's regulations and standards. n Per this legislation, KDE contracted with a third-party vendor. Parsons Commercial Technology Group who partnered with MGT of America to perform the required, independent, onsite evaluations in 146 districts for 485 instructional programs housed in 477 school buildings across the state. n The schools evaluated had a previous designation as a Category 3 or Category 4 building as of September 2010. 20
Kentucky Facilities Inventory Classification System (KFICS) n Results of the KFICS project's initial phase were officially released on November 29, 2011. The reports show the list of schools with Kentucky School Scores and the individual School Reports with details of the assessment, such as general school information, deficiencies identified, educational suitability and technology readiness criteria evaluated. n The Kentucky School Score is a weighted score that combines the physical condition (75%), educational suitability (20%), and technology readiness (5%) scores. The dollar values identified in the reports are high-level budget estimates based on national averages. Detailed estimates would be needed prior to any specific construction projects. 21
Kentucky Facilities Inventory Classification System (KFICS) n The intent of this work was to provide the General Assembly with data that can be used to inform school building funding decisions. Districts and schools also can use the findings to improve deficient areas identified in the individual School Reports. n KFICS State Report and Individual School Reports are available on the Facilities Needs Assessment on KDE website at: http: //education. ky. gov/districts/fac/Pages/Facility-Needs. Assessments. aspx. 22
KRS 322. 360 Public work required to be done under professional engineer or licensed architect. (1) Neither the state nor any of its political subdivisions shall engage in the construction of any public work involving engineering, unless the plans, specifications, and estimates have been prepared and the construction executed under the direct supervision of a professional engineer or a licensed architect. (2) Subsection (1) of this section shall not apply to any public work, including a highway or capital project under KRS 56. 491, that involves only maintenance or repair of the facility. Maintenance or repair shall not include any work which alters, modifies, or changes the original characteristics of the design. 23
KRS 323. 033 Buildings requiring services of licensed architect. (1) Except as otherwise provided in this section, the following buildings, or additions to existing buildings, classified by use group shall require the services of an architect licensed in the Commonwealth of Kentucky; (a) Assembly use group having a capacity of one hundred (100) persons or more, except church buildings having a capacity of four hundred (400) persons or less or six thousand (6, 000) square feet or less; (b) Business use group having a capacity of one hundred (100) persons or more; (c) Institutional use group, regardless of capacity; (d) Mercantile use group having a capacity of one hundred (100) persons or more; (e) Residential use group of more than twelve (12) dwelling units or having a capacity of fifty (50) persons or more; (f) Educational use groups regardless of capacity; and (g) Mixed use group containing one (1) or more of the use group classifications and capacities listed under paragraphs (a) through (f) of this subsection. 24
KRS 323. 033 Buildings requiring services of licensed architect. (2) Alterations or new construction requiring compliance with the Kentucky Building Code for any building containing one (1) or more of the use group classifications and capacities listed under subsection (1) of this section shall require the services of an architect licensed in the Commonwealth of Kentucky; except that, when such alterations or new construction predominantly involve primarily structural components or mechanical or electrical systems, services may be performed by one (1) or more licensed professional engineers. 25
KRS 323. 033 Buildings requiring services of licensed architect. (5) Neither the state nor any of its political subdivisions shall engage in the construction of any public work involving the practice of architecture or engineering unless the plans, specifications, and estimates have been prepared and the administration of construction contracts executed under the direct supervision of a licensed architect or a professional engineer. This subsection shall not apply to: – (a) Any public work, including a building or capital project under KRS 56. 491, that involves only maintenance or repair of the facility. Maintenance or repair shall not include any work which alters, modifies, or changes the original characteristics of the design; or – (b) Any residential dwelling that falls under the Kentucky Residential Code. 26
702 KAR 4: 160. Capital Construction Process Effective: September 6, 2013 Section 7. Guaranteed Energy Savings Contracts. (1) The board shall submit to the department a letter of intent to issue a request for proposal for a GESC. (2) The department shall notify the board of required submissions for the GESC project. (3) The board shall advertise for qualified providers to propose energy conservation measures utilizing the KDE Request for Proposals for Guaranteed Energy Savings Contracts in compliance with KRS 45 A. 352(1) and (5) for a GESC. 27
702 KAR 4: 160. Capital Construction Process Effective: September 6, 2013 Section 7. Guaranteed Energy Savings Contracts. (Cont. ) (4) The board and qualified provider shall negotiate a contract for services required using: (a) AIA Document A 141 -2004, Standard Form of Agreement Between Owner and Design-Builder - KDE Version; (b) AIA Document A 141 -2004, Exhibit A, Terms and Conditions - KDE Version; (c) AIA Document A 141 -2004, Exhibit C, Insurance and Bonds KDE Version; and (d) Other exhibits as required to define the agreement. 28
702 KAR 4: 160. Capital Construction Process Effective: September 6, 2013 Section 7. Guaranteed Energy Savings Contracts. (Cont. ) (5) The qualified provider shall: (a) Complete a KDE Non-Collusion Affidavit; (b) Provide each required certificate of liability insurance; and (c) Provide a 100 percent performance and payment bond, AIA Document 312 -2010, Performance Bond and Payment Bond - KDE Version, in compliance with KRS 45 A. 435. (6) The board shall submit to the department: (a) A board-approved proposal from the selected provider; and (b) BG-1 Form. (7) The department shall review and approve the project based on compliance with KRS 45 A. 352(9) and (10). 29
702 KAR 4: 160. Capital Construction Process Effective: September 6, 2013 Definitions n "Minor project" means a project for expansion of a permanent center to include a maximum of four (4) classrooms, campus enlargement, renovation of buildings and building systems with a budget of less than $25, 000, or construction of support space at permanent centers, or renovation not defined as major renovation. 30
702 KAR 4: 160. Capital Construction Process Revision Effective September 6, 2013 Definitions n "Major renovation" means a project at a permanent center including three (3) or more building systems and an estimated cost of twenty (20) percent of the current replacement cost of the building, or portion thereof, and the building or building systems shall be a minimum of thirty (30) years old or thirty (30) years shall have passed since its last major renovation with the exception of: – (a) The restructuring of an open space school for conventional classrooms; or – (b) The replacement of one (1) of the following single building systems that is within fifteen (15) years of its original installation, or if required by a change in regulation or code: • 1. Heating, ventilation, and air conditioning systems and controls; • 2. Systems to provide full use of a facility by the physically handicapped and to bring a facility into compliance with state and federal law; • 3. Life safety and security systems; or • 4. Roofing systems, flashings, and accessories. • 31
District Facilities Plan -Is the triggering mechanism for the use of “restricted funds” -Is the major factor for determining SFCC Needs Based Funding Old School Frank the Tank “Old School” 32
District Facility Plan (DFP) - SAMPLE 33
District Facility Plan (DFP) (cont. ) 34
District Facility Plan (DFP) (cont. ) 35
District Facility Plan (DFP) (cont. ) 36
District Facility Plan (DFP) (cont. ) DFP priority 5 is not included in district need. Unmet need is calculated during the District Facilities Planning process. The “unmet need” of all of the districts in the State is combined to create the State unmet need. A portion of the total is funded by the General Assembly and each district is allocated money based on their percentage share of the total fund. These funds can only be used on priority projects, based on their priority order; for example, priority 1 projects shall be completed prior to priority 2 projects. All projects within a numbered category (i. e. , 1 a through 1 d) are considered equivalent and can be selected by the LEA in any order desired, subject to the approval of the KDE. 37 37
Finally, BG-1’s are required for… Significant facilities projects financed with General Fund (Fund 1) monies, as determined by the Kentucky Department of Education (projects may not require building code review): a. ) To record General Fund expenditures for legislative reporting b. ) To monitor facility construction from General Fund expenditures c. ) Track impact on a district’s DFP 38
702 KAR 4: 160. Capital Construction Process Revision Effective September 6, 2013 BG-1 Project Application n The BG-1 Form shall be approved by the board. n The board shall submit a signed BG-1 Form to the department for approval of a proposed construction project. n BG-1 Forms will only be accepted by KDE when submitted electronically to the KDE Facilities Share. Point site: https: //staffkyschools. sharepoint. com/sites/dsapps/KDEConstruction. n (6) If an emergency occurs, impacting an activity for which a BG-1 Form is required: (a) The superintendent shall: 1. Proceed with corrective actions, as needed; 2. Notify the department of the emergency and request approval to continue with the plans and corrective action; 3. Advise the board to declare an emergency in accordance with the district’s officially adopted procurement method under KRS 424. 260 or 45 A. 380; and 4. Submit to the department: a. BG-1 Form; and b. The board order declaring the emergency; and (KRS 45 A. 355 - written determination) 39
702 KAR 4: 160. Capital Construction Process Revision Effective September 6, 2013 Local Board Approval § § § All documents requiring board approval shall be approved by the board prior to submission to KDE. Board orders are not required to be submitted. However, the local district should develop a dedicated file for each project and include a copy of the board orders in that file. The department may request a copy of a board order at any time as needed for approvals. Exception – EMERGENCY BG-1 Project Applications require submission of a board order declaring the emergency. 40
Form: BG-1 Project Application – Page 1 41
Form: BG-1 Project Application – Page 1 42
Form: BG-1 Project Application – Page 1 43
Form: BG-1 Project Application – Page 1 District Facility Plan (DFP) Priority BG-1 Project Application Form 702 KAR 4: 160 (3)(a) If SFCC funds are included in the financing plan, projects shall be selected in prioritized order from the District Facility Plan created pursuant to 702 KAR 4: 180. (b) If restricted funds other than SFCC are included in the financing plan, the board may select any project in any priority used to determine district need. (i. e. DFP Priority 1 – 4) (c) Projects not used to determine district need shall only be funded as defined by the General Assembly. 44
Form: BG-1 Project Application – Page 1 45
Form: BG-1 Project Application – Page 2 46
47
702 KAR 4: 160. Capital Construction Process Revision Effective September 6, 2013 Do Not Submit Incomplete BG-1 Project Applications § Total Project Cost = Total Project Funds § All District Signatures Required § Project Cost o Construction Contingencies minimum 5% Total Construction Cost § Project Funds o If SFCC fund, SFCC approval shall be required. o If other fund type is Residual Fund, then BG# shall be provided and that BG# shall be closed out (BG-4 and BG-5). The residual funds are considered to be under the same restriction as the most restrictive fund source of the closed out BG#. If residual funds are SFCC, then district must request SFCC approval. o If other fund type, such as Booster Club, then an External Partnership Agreement shall be submitted with the BG-1. This agreement is available on KDE Facilities Construction webpage. o DFP priority information is required. 48
702 KAR 4: 160. Capital Construction Process Effective: September 6, 2013 When a Revised BG-1 is needed: (Note Reason for Revision) § Update Project Costs o During Design - updated estimate and/or scope of work change o Reconcile Project Costs with accepted bid or proposed contract Ø If Bond Sale is pending, need at least 10 business days prior to bond sale o Conform to the proposed contract and financing (GESC) o Other costs o During Construction – increase construction contingency o During Project Closeout – if costs exceed Current BG-1 § Update Project Funds o Project Costs changed o Fund Source changed 49
Contract Administration n Contractor’s Application for Payment – Submitted monthly – A/E to review against work in place and materials purchased and properly stored – Application to be approved by the Architect or modified to represent work effort – Payment to be approved by Local Board of Education based on Architects approval and local review – Retainage is held until the end of the project to insure completion of work {702 KAR 4: 160 (10)} 50
Contract Administration n Changes in the Work – Changes that affect construction time or price must be ratified by a Change Order {702 KAR 4: 160(9)} § Change Order Form Prepared by Architect § Pricing prepared by Contractor and evaluated and approved by Architect § Local Board must approve all Change Orders § Change Events in excess of $25, 000 must be approved by KDE prior to execution § All Change Orders must be sent to KDE for records or approval – Minor changes should be documented by the Architect § Field Order or Supplemental Direction should be used to codify all minor changes 51
Form: Change Order Supplemental Info 52
Contract Administration n Contract Close – Out and Completion – Substantial Completion - Stage in the work in which it is sufficiently complete to allow Owner to occupy and utilize the work for it’s intended use. § Certified by Architect and Code Officials § Possible reduction in retainage – Final Completion – all work is complete and ready for unrestricted occupancy. § Written notice from Contractor final inspection and acceptance of work § When the Architect finds the work to be acceptable a final Certificate of Payment and BG-4 are issued 53
Expenditures of Capital Construction Contingency Funds YES (with approval) with F. S. P. K. , Capital Outlay or S. F. C. C funds. q Fixed equipment, including televisions mounted q Library furnishings q Casework q Kitchen equipment q Bleachers, etc. q Classroom furniture (desks and chairs) for a new building.
Expenditures of Capital Construction Contingency Funds NO for F. S. P. K. , Capital Outlay or S. F. C. C funds. q Library books q Computers q Band uniforms q Classroom VCRs (not part of the Library’s source equipment) q Copiers q AV equipment (except whiteboards) q Central office furniture q Pianos and music equipment q Lawn mowers q Non-fixed equipment or furnishings.
702 KAR 4: 160. Capital Construction Process Effective: September 6, 2013 Form: BG-4 Contract Closeout Upon completion of the construction contract, including all change orders, each contract must be closed out by a BG-4 Contract Closeout Form. ◦ Final payment to the Contractor is not contingent upon KDE approval. If the work has been completed and accepted by the Owner, then final payment should be made in accordance with KRS 371. 410. The applicable design professional, CM, or qualified provider shall furnish the board a completed BG-4 Form and record documents, with applicable information requesting approval of: ◦ (a) Each contract, including change orders; and ◦ (b) A reconciliation of the summary of all purchase orders, if utilized, including change orders, for each contract. 56
Form: BG-4 Contract Closeout 57
702 KAR 4: 160. Capital Construction Process Effective: September 6, 2013 Form: BG-4 Contract Closeout Regulation Revision Changes Updated: project closeout to contract closeout Added: Direct Purchase Order closeout in Section A - Project Construction Cost. Only one BG-4 is required, per construction contract. Removed: Board order attachment (district to maintain in project file) 58
702 KAR 4: 160. Capital Construction Process Effective: September 6, 2013 Form: BG-5 Project Closeout New form which reconciles the Final Project Cost. Can be used to determine residual funds (left over monies from a closed out BG project). When all construction contracts are complete (all BG-4 s submitted), and if the board agrees the project is complete, it shall approve the BG-5 Project Closeout Form (BG-5 Form) and forward it to the department for review and approval. BG-5 Forms will only be accepted by KDE when submitted electronically to the KDE Facilities Share. Point site: https: //staffkyschools. sharepoint. com/sites/dsapps/KDEConstruction. 59
Form: BG-5 Project Closeout 60
702 KAR 4: 160. Capital Construction Process Effective: September 6, 2013 Form: BG-5 Project Closeout Section B – Reconciliation of Final Project Cost ◦ BG-5 Final Project Cost Construction Contingency amount = zero ◦ BG-5 Final Total Project Costs amount = BG-5 Final Total Project Funds amount. ◦ The BG-5 form identifies “residual funds” by subtracting the BG-5 Final Total Project Cost from Current BG-1 Total Project Cost. The rules for spending any residual funds are to be the same rules which govern the most restricted funds in the project from which the funds remain. (least restrictive funds to be used first) ◦ If the BG-5 Final Total Project Costs amount is greater than the Current BG-1 Total Project Cost amount, then a Revised BG-1 is required prior to submission of the BG-5 form. 61
Form: BG-5 Project Closeout (snapshot) 62
Questions 63
Скачать презентацию Kentucky Association of School Business Officials KASBO Presenter
56b43c6c79a3251a3296417da1a10fc8.ppt