N.J. Admin. Code § 6A:26-3.5

Current through Register Vol. 56, No. 12, June 17, 2024

Section 6A:26-3.5 - Determination of final eligible costs for Authority school facilities projects

(a) School facilities projects of SDA districts shall be constructed by the Development Authority.

(b) After approving a project that shall be constructed by the Development Authority and calculating the preliminary eligible costs, the Division shall promptly prepare and submit to the Development Authority a preliminary project report that shall consist, in addition to any other information deemed relevant by the Commissioner, of the following information:

1. A complete description of the school facilities project;

2. The actual location of the school facilities project;

3. The total square footage of the school facilities project together with a breakdown of total square footage by functional component;

4. The preliminary eligible costs of the school facilities project;

5. The project's priority ranking determined pursuant to 18A:7G-5(m);

6. Any other factors to be considered by the Development Authority in undertaking the school facilities project; and

7. The name, address, and phone number of the person from the school district to contact concerning the school facilities project.

(c) If the Development Authority determines that a school facilities project can be completed within the preliminary eligible costs based on detailed plans and specifications, the final eligible costs shall be deemed to equal the preliminary eligible costs pursuant to EFCFA and the preliminary project report shall be deemed to be the final project report delivered to the Development Authority pursuant to 18A:7G-5(j).

(d) In the event that the Development Authority determines that a school facilities project cannot be completed within the preliminary eligible costs, prior to the submission of its recommendations to the Commissioner, the Development Authority shall consult with the school district and the Commissioner and determine whether changes can be made to the school facilities project that will result in a reduction in costs while meeting the requirements of educational adequacy.

1. When the Commissioner is notified by the Development Authority that the Development Authority has determined that changes in the school facilities project are possible so the project can be accomplished within the scope of the preliminary eligible costs while still conforming to the facilities efficiency standards, the Division shall:

i. Calculate the final eligible costs to equal the preliminary eligible costs; and

ii. Issue a final project report to the Development Authority in accordance with (h) below.

2. When the Development Authority has determined it is not possible to make changes in a school facilities project so it can be completed within the preliminary eligible costs either because the additional costs are the result of factors outside the control of the school district or because the additional costs are required to meet educational-adequacy requirements, the Development Authority will recommend to the Commissioner that the preliminary eligible costs be increased accordingly, whereupon the Division shall:

i. Calculate the final eligible costs to equal the sum of the preliminary eligible costs plus the increase recommended by the Development Authority; and

ii. Issue a final project report in accordance with (h) below.

3. When the Development Authority has determined the additional costs are the result of factors within the school district's control or of design factors that are not required to meet the facilities efficiency standards, the Development Authority shall recommend to the Commissioner that the preliminary eligible costs be accepted, whereupon the Division shall:

i. Calculate the final eligible costs to equal the preliminary eligible costs unless the preliminary eligible costs are determined to be insufficient to meet the educational needs of the school district, in which case preliminary eligible costs shall be adjusted upward as appropriate, and specify the excess costs that shall be borne by the school district; and

ii. Issue a final project report to the Development Authority in accordance with (h) below.

(e) For any school facility project to be constructed by the Development Authority in which the State share of final eligible costs is 100 percent, the Development Authority may delay the request for a determination of final eligible costs until receipt of the construction bids by the Development Authority.

(f) After receipt by the Development Authority of a final project report, the school district shall be responsible only for the local share identified in the report, cost overruns relating to excess costs, if any, and the costs associated with changes, if any, made at the request of the school district to the scope of the school facilities project. If a school district fails to obtain approval of the local share within one year of the determination of the final eligible costs, the Development Authority may redetermine final eligible costs and forward them to the Commissioner for approval. If the Development Authority elects to re-determine final eligible costs, the school district shall not seek or obtain approval of the local share until the final eligible costs are re-determined.

(g) The Development Authority shall not commence the acquisition or construction of a school facilities project until the Division transmits to the Development Authority a final project report except as provided in 6A:26-3.9.

(h) The final project report shall contain all of the information contained in the preliminary project report and also shall contain:

1. The final eligible costs;

2. The excess costs, if any;

3. The total costs, which equal the final eligible costs plus excess costs, if any;

4. The State share of the final eligible costs; and

5. The local share of the total costs.

N.J. Admin. Code § 6A:26-3.5

Amended by R.2001 d.367, effective 10/1/2001.
See: 33 N.J.R. 1809(a), 33 N.J.R. 3482(a).
In (b), inserted reference to State share; in (g), added last two sentences; in (i)4, substituted "final eligible" for "total"; and updated N.J.A.C. references throughout.
Amended by R.2004 d.214, effective 6/7/2004.
See: 36 N.J.R. 243(a), 36 N.J.R. 2733(b).
In (d), deleted ", the Commissioner shall be deemed to have given final approval to the project" following "eligible costs"; in (e), deleted ii and recodified former iii as ii in 1 through 3; in (g), inserted ", cost overruns related to excess costs, if any," in the first sentence; added (j).
Amended by R.2007 d.81, effective 3/19/2007.
See: 38 N.J.R. 4533(a), 39 N.J.R. 899(a).
Inserted "school" preceding "district" throughout; in (a), inserted "school" preceding "districts" three times; in (h), deleted "and 3.10" from the end; and rewrote (j).
Amended by R.2013 d.145, effective 12/16/2013.
See: 45 N.J.R. 1026(a), 45 N.J.R. 2557(a).
Rewrote the section.