WSR 01-19-042

PERMANENT RULES

STATE BOARD OF EDUCATION


[ Filed September 14, 2001, 11:06 a.m. ]

Date of Adoption: August 24, 2001.

Purpose: Implements changes in the methodology for calculating area cost allowance (ACA) for school construction projects funded in FY 2002 and beyond to align with 2001-03 capital budget language.

Citation of Existing Rules Affected by this Order: Amending WAC 180-26-050, 180-26-057, 180-27-020, 180-27-060, 180-27-063, 180-27-065, 180-27-080, 180-27-095, 180-27-102, 180-27-115, 180-32-065, 180-33-020, and 180-33-035.

Statutory Authority for Adoption: RCW 28A.47.830 and 28A.525.020.

Adopted under notice filed as WSR 01-15-097 on July 18, 2001.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 13, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 13, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 13, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.
Effective Date of Rule: Thirty-one days after filing.

September 13, 2001

Larry Davis

Executive Director

OTS-4939.1


AMENDATORY SECTION(Amending Order 24-85, filed 11/27/85)

WAC 180-26-050   Option to request preliminary funding status prior to proceeding pursuant to WAC 180-26-040.   As used in chapters 180-26, 180-27, and 180-29 WAC, the term "preliminary funding status" shall mean the project shall be considered for approval pursuant to WAC 180-29-107 prior to projects without such preliminary funding status and shall be eligible for state assistance pursuant to the state board of education rules pertaining to eligible square footage, ((maximum)) area cost allowance for the fiscal year funded, and priorities in effect at the time such status is granted. Any district may request the superintendent of public instruction to grant preliminary funding status for any project with secured local capital funds and authority to proceed pursuant to WAC 180-26-040. The superintendent of public instruction shall grant such approval if in the judgment of the superintendent of public instruction such project will receive approval pursuant to WAC 180-29-107 within one year.

[Statutory Authority: RCW 28A.47.830. 85-24-047 (Order 24-85), 180-26-050, filed 11/27/85.]


AMENDATORY SECTION(Amending WSR 98-19-140, filed 9/23/98, effective 10/24/98)

WAC 180-26-057   State board of education project commitment at preliminary funded status.   When preliminary funding status for a project is requested and granted pursuant to WAC 180-26-050, the state board of education commitment is limited to the eligibility of the project for state assistance, the eligible square footage, the ((maximum)) area cost allowance for the fiscal year funded and the priority standing of the project as determined pursuant to the state building assistance rules in effect at that time. This commitment is effective only for the initial one-year period set forth at WAC 180-26-060. The state board of education reserves the right to amend and/or repeal any rule(s) respecting state assistance in school building construction. Such rule changes may be made regardless of the impact upon the eligibility of any project and/or the extent of eligibility of any project for state assistance.

[Statutory Authority: RCW 28A.525.020. 98-19-140, 180-26-057, filed 9/23/98, effective 10/24/98. Statutory Authority: RCW 28A.525.020 and 1991 c 14. 91-20-151, 180-26-057, filed 10/2/91, effective 11/2/91. Statutory Authority: RCW 28A.525.020. 90-24-068, 180-26-057, filed 12/5/90, effective 1/5/91. Statutory Authority: RCW 28A.47.830. 86-04-065 (Order 1-86), 180-26-057, filed 2/4/86.]

OTS-4940.3


AMENDATORY SECTION(Amending WSR 99-24-127, filed 12/1/99, effective 1/1/00)

WAC 180-27-020   Related factors and formula for determining amount of state assistance.   (1) The amount of state assistance to a school district to provide school facilities shall be determined on the basis of component factors, as hereinafter set forth in this chapter, relating to:

(a) The number of unhoused students;

(b) Space allocations;

(c) Reduction of the number of operating schools as per chapter 180-33 WAC;

(d) Area cost allowance for the fiscal year funded;

(e) Allowances for furniture and equipment purchases;

(f) The amount of insurance, federal, or other nontax source local moneys applied to a school facilities project;

(g) Certain specified costs which must be financed directly by the school district; and

(h) The amount of fees for professional services.

(2) State assistance for an approved project shall be derived by multiplying the percentage of state assistance determined pursuant to RCW 28A.525.166 by the following:

(a) The eligible construction cost which shall be calculated by multiplying the approved square foot area of the project as set forth in WAC 180-27-035 by the area cost allowance as set forth in WAC 180-27-060;

(b) The cost of preparing educational specifications as set forth in WAC 180-27-065;

(c) The cost of architectural and engineering services as set forth in WAC 180-27-070;

(d) The cost of preparing and reviewing the energy conservation report as set forth in WAC 180-27-075;

(e) The cost of a value engineering study, a constructability review, and building commissioning as set forth in WAC 180-27-080;

(f) The construction cost savings -- sharing incentive as set forth in WAC 180-27-085;

(g) The cost of furniture and equipment as set forth in WAC 180-27-095;

(h) The cost of special inspections and testing as set forth in WAC 180-27-100; and

(i) The cost of construction management as set forth in WAC 180-27-102.

Any cost in excess of the maximum allowable shall be financed entirely by the school district.

[Statutory Authority: RCW 28A.525.020. 99-24-127, 180-27-020, filed 12/1/99, effective 1/1/00. Statutory Authority: RCW 28A.525.020 and chapters 39.35 and 60.28 RCW. 92-24-027, 180-27-020, filed 11/24/92, effective 12/25/92. Statutory Authority: 1990 c 33. 90-17-009, 180-27-020, filed 8/6/90, effective 9/6/90. Statutory Authority: RCW 28A.47.830. 83-21-066 (Order 11-83), 180-27-020, filed 10/17/83.]


AMENDATORY SECTION(Amending WSR 98-19-143, filed 9/23/98, effective 10/24/98)

WAC 180-27-060   Determining the area cost allowance.   (1) The area cost allowance for state assistance shall apply to the cost of construction of the total facility and grounds, including state sales and use taxes generally levied throughout the state of Washington and excluding those local option sales and use taxes levied by political subdivisions.

(2) The ((maximum)) area cost allowance used in calculating state financial assistance for construction of school facilities shall be determined by the superintendent of public instruction ((as follows:

(1) Commencing with the two-month period of July-August, 1984, a two-month area cost allowance is determined as follows: The average building cost index (Boeckh Index) for commercial, factory, and office buildings in six Washington cities and Portland, Oregon as reported by the E. H. Boeckh Company for that two-month period (1,494.99) shall be multiplied by the 1984 area cost allowance ($74.87). That product shall be divided by the 1984 building cost index (1,494.99).

(2) The calculation in subsection (1) of this section shall be made for each subsequent two-month period.

(3) The monthly rate of increase in the area cost allowance for each year ending August 31 shall be determined by subtracting the area cost allowance calculated for September-October (the first two-month period in the year) from the area cost allowance for July-August (the last two-month period of the year) and dividing the result by twelve.

(4) The projected maximum monthly area cost allowances for the next ensuing school fiscal year are calculated as follows:

(a) The area cost allowance for July-August 1985 effective September 1, 1985 shall be the actual amount as calculated in subsections (1) and (2) of this section.

(b) The projected area cost allowance for the following twelve months will be the amount of the previous month plus the average monthly rate of increase as calculated in subsection (3) of this section.

(5) The projection process will be repeated no later than August 31 for each following school fiscal year and reported to the state board of education for approval)) using the prior year's area cost allowance, plus a construction inflation factor.

(3) The superintendent of public instruction's office shall work with the state board of education and other appropriate parties to develop and recommend to the state board for approval a method for determining the annual construction inflation factor. This recommendation shall be presented to the state board of education for approval at its October 2001 meeting, or as soon thereafter as is practical.

[Statutory Authority: RCW 28A.525.020. 98-19-143, 180-27-060, filed 9/23/98, effective 10/24/98. Statutory Authority: RCW 28A.47.830. 85-24-048 (Order 25-85), 180-27-060, filed 11/27/85; 84-11-047 (Order 6-84), 180-27-060, filed 5/17/84; 83-21-066 (Order 11-83), 180-27-060, filed 10/17/83.]


AMENDATORY SECTION(Amending Order 25-85, filed 11/27/85)

WAC 180-27-063   Annual review and report by the superintendent of public instruction to the state board of education.   The superintendent of public instruction on an annual basis shall review actual construction costs of school projects and report findings ((together with recommended changes to the area cost allowance calculation in WAC 180-27-060, if any,)) to the state board of education for consideration and possible action.

[Statutory Authority: RCW 28A.47.830. 85-24-048 (Order 25-85), 180-27-063, filed 11/27/85.]


AMENDATORY SECTION(Amending Order 11-83, filed 10/17/83)

WAC 180-27-065   Educational specifications.   (1) Only school facility projects which are complete new facilities or modernization projects pursuant to chapter 180-33 WAC are eligible for state assistance in the preparation of education specifications.

(2) The construction of interdistrict transportation cooperatives, or additions of less than fifteen thousand square feet to existing facilities, unless combined with modernization, are not eligible.

(3) The amount of state assistance for which a district is eligible for the preparation of educational specifications shall be the state matching percentage multiplied by the greater of the following:

(a) One quarter of one percent of the area cost allowance multiplied by the square foot area ((at time of bid)) for the fiscal year funded; or

(b) Ten thousand dollars.

[Statutory Authority: RCW 28A.47.830. 83-21-066 (Order 11-83), 180-27-065, filed 10/17/83.]


AMENDATORY SECTION(Amending WSR 99-24-127, filed 12/1/99, effective 1/1/00)

WAC 180-27-080   Value engineering studies, constructability reviews, and building commissioning -- Requirements and definition.   At the appropriate time in the design process for a school facility approved by the state board of education, the district shall prepare a value engineering study, complete a constructability review, and perform building commissioning for all projects greater than fifty thousand square feet. Value engineering studies, constructability reviews, and building commissioning shall be optional for projects larger than fifteen thousand square feet but less than fifty thousand square feet. Any project which includes fifteen thousand square feet or less shall be exempt from this requirement. For the purpose of this section, a value engineering study is defined as a cost control technique which is based on the use of a systematic, creative analysis of the functions of the facility with the objective of identifying unnecessary high costs or functions and/or identifying cost savings that may result in high maintenance and operation costs. The study shall consist of a forty-hour workshop involving a minimum of a five-person team pursuant to WAC 180-29-065. A constructability review is defined as a cost control technique which is based on the review of project documents by mechanical, electrical, structural, construction, and design professionals prior to a request for bids. The purpose of a constructability review is to identify potential claim or problem areas and deficiencies that may occur as a result of errors, ambiguities, omissions, discrepancies, and conflicts in design documents. The study shall consist of a forty-hour workshop involving a minimum of a five-person team pursuant to WAC 180-29-066. Building commissioning is defined as the process of verifying that the installation and performance of selected building systems meet or exceed the specified design criteria and therefore satisfy the design intent. Building commissioning shall include a physical inspection, functional performance testing, listing of noted deficiencies, and a final commissioning report. Building commissioning shall be performed by a professional agent or authority not contractually or otherwise financially associated with the project design team or contractor. A district shall be eligible for state assistance for a value engineering study, a constructability review, and building commissioning for each qualifying project. The maximum amount of assistance for each component of the study package shall be the state matching percentage multiplied by the greater of the following:

(1) Two-fifths of one percent of the area cost allowance multiplied by the square foot area ((at time of bid)) for the fiscal year funded; or

(2) Twenty thousand dollars.

[Statutory Authority: RCW 28A.525.020. 99-24-127, 180-27-080, filed 12/1/99, effective 1/1/00; 98-19-143, 180-27-080, filed 9/23/98, effective 10/24/98. Statutory Authority: RCW 28A.47.830. 83-21-066 (Order 11-83), 180-27-080, filed 10/17/83.]


AMENDATORY SECTION(Amending WSR 98-19-143, filed 9/23/98, effective 10/24/98)

WAC 180-27-095   Support level -- Furniture and equipment allowances.   (1) A matchable allowance for furniture and equipment purchases shall be added to total construction cost of an approved school facilities project. The amount of state assistance for which a district is eligible shall be the eligible square foot area of the project multiplied by the area cost allowance ((of state support at time of bid)) for the fiscal year funded and that product multiplied by:

(a) Two percent for elementary schools;

(b) Three percent for middle and junior high schools;

(c) Four percent for high schools;

(d) Five percent for facilities for students with disabilities;

(e) Five percent for interdistrict cooperative occupational skill centers; and

(f) Seven percent for interdistrict transportation cooperatives.

(2) For those projects where the eligible square footage is allocated to grade spans which do not conform to those listed above, the equipment allowance shall be allocated based on eligibility as established in WAC 180-27-035.

[Statutory Authority: RCW 28A.525.020. 98-19-143, 180-27-095, filed 9/23/98, effective 10/24/98. Statutory Authority: RCW 28A.47.830. 83-21-066 (Order 11-83), 180-27-095, filed 10/17/83.]


AMENDATORY SECTION(Amending WSR 00-09-045, filed 4/14/00, effective 5/15/00)

WAC 180-27-102   Construction management.   Prior to commencing with project design the district shall employ or contract personnel to perform professional construction management. Construction management shall be required for all projects greater than fifty thousand square feet and is optional for projects fifty thousand square feet or less. For the purpose of this section construction management is defined as the process of professional management applied to a construction program for the purpose of controlling time, cost, and quality.

The construction manager shall have appropriate and demonstrable experience in the management of construction projects including procurement, contract administration, scheduling, budgets, quality assurance, information management, and health and safety.

The amount of state assistance for which a district shall be eligible for construction management shall be the state matching percentage multiplied by two and one-half percent of the area cost allowance multiplied by the square foot area ((at the time of bid)) for the fiscal year funded.

[Statutory Authority: RCW 28A.525.020. 00-09-045, 180-27-102, filed 4/14/00, effective 5/15/00; 99-24-127, 180-27-102, filed 12/1/99, effective 1/1/00.]


AMENDATORY SECTION(Amending WSR 98-19-143, filed 9/23/98, effective 10/24/98)

WAC 180-27-115   Support level -- Additional assistance.   State assistance in addition to the amount determined pursuant to WAC 180-27-020 may be allowed for the purposes and in accordance with the requirements set forth in this section: Provided, That in no case shall the state assistance exceed one hundred percent of the amount calculated for matching purposes: In each of the following exceptions, either at the time the project is approved pursuant to WAC 180-25-040 or at any time prior to receiving secured funding status pursuant to WAC 180-29-107, written school district application for additional assistance and state board of education approval is required:

(1) A school facility subject to abatement and an order to vacate.

A school district required to replace a school facility determined to be hazardous to the safety and health of school children and staff -- as evidenced by reports of architects or engineers licensed to practice in the state of Washington, the health agency having jurisdiction, and/or the fire marshal and building official having jurisdiction -- shall be eligible for additional assistance if the voters of the school district authorize the issuance of bonds and/or the levying of excess taxes to meet the statutory limits. If the state board of education determines that the voters of the school district have authorized the issuance of bonds to its legal limit, the board shall provide state financial assistance for the remaining cost of the building to a level not exceeding the area cost allowance ((set forth in WAC 180-27-060)) for the fiscal year funded: Provided, That at any time thereafter when the state board of education finds that the capital financial position of such district has improved, the amount of the additional allocation provided pursuant to this subsection shall be recovered by deducting an amount equal to all or a portion of such additional allocation from any future state school facility construction funds which might otherwise be provided to such district.

(2) Interdistrict cooperative centers.

In the financing of interdistrict cooperative projects as set forth in chapter 180-31 WAC, the state board of education shall allocate at seventy-five percent of the total approved project cost determined eligible for state matching purposes if the planned school facility meets the following criteria:

(a) Provides educational opportunities, including vocational skills programs, not otherwise provided; or

(b) Avoids unnecessary duplication of specialized or unusually expensive educational programs or facilities.

(3) School housing emergency.

A school district found by the state board of education to have a school housing emergency requiring an allocation of state moneys in excess of the amount allocable under the statutory formula may be considered for an additional allocation of moneys: Provided, That the school district must have authorized the issuance of bonds to its legal capacity to meet the statutory and state board of education fiscal requirements for state assistance in providing school facilities.

The total amount of state moneys allocated shall be the total approved project cost determined eligible for state matching purposes multiplied by the districts' regular match rate as calculated pursuant to RCW 28A.525.166 plus twenty percent and not to exceed ninety percent in total: Provided further, That at any time thereafter when the state board of education finds that the capital financial position of such district has improved, the amount of the additional allocation provided pursuant to this subsection shall be recovered by deducting an amount equal to all or a portion of such additional allocation from any future state school facility construction funds which might otherwise be provided to such district.

(4) Improved school district organization.

If two or more school districts reorganize into a single school district and the construction of new school facilities results in the elimination of a small high school with a full-time equivalent enrollment in grades 9-12 of less than four hundred students and/or an elementary school with a full-time equivalent enrollment of less than one hundred students, the state board of education shall match the total approved cost of the project at seventy-five percent.

(5) Racial imbalance.

Any school district that contains a school facility which is racially imbalanced as defined in WAC 180-26-025 shall receive state assistance under this subsection in the amount of an additional ten percentage points above the matching percentage as calculated pursuant to RCW 28A.525.116 (b) and (c) which will not exceed a total of ninety percent of the total approved cost of construction: Provided, School construction projects for racial balance that meet the following conditions shall be provided state assistance at seventy-five percent of the ((approved)) square foot cost allowance for the fiscal year funded under the provisions of this subsection as they existed prior to the amendment of this subsection in 1993:

(a) Voter approved local matching funds were authorized before December 31, 1992;

(b) The superintendent of public instruction approved a comprehensive desegregation plan with specific construction and modernization projects under additional state assistance criterion in effect at that time, which will be identified on or before September 15, 1993; and

(c) The superintendent of public instruction confirms at the time of project approval pursuant to WAC 180-25-040 the continued existence of racial balance needs.

In the case of a school district which contains a racially imbalanced school facility the district must demonstrate that, as a result of new construction or modernization, the particular school facility will no longer be racially imbalanced, that the combined minority enrollment in the particular school facility will be reduced by more than ten percentage points, and that the above stated results will be obtained as a direct result of increased enrollment of nonminority students in the particular school facility: Provided, That the particular school facility shall remain racially balanced for a period of at least five years after the date of actual building occupancy: Provided further, That if the state board of education finds that the school facility does not remain racially balanced for five years then the amount of additional state assistance provided pursuant to this subsection shall be recovered by deducting an amount equal to all of the additional allocation from any future state school facility construction funds which might otherwise be provided to such district.

(6) Any project that has received approval for additional state assistance under provisions of this section as they existed prior to the amendment of this section in 1993 shall retain authorization for additional assistance under the provisions in effect at the time of such approval.

[Statutory Authority: RCW 28A.525.020. 98-19-143, 180-27-115, filed 9/23/98, effective 10/24/98. Statutory Authority: RCW 28A.525.020 and 28A.525.166(4). 93-20-067, 180-27-115, filed 10/1/93, effective 11/1/93. Statutory Authority: RCW 28A.525.020 and 28A.525.164. 91-12-059, 180-27-115, filed 6/5/91, effective 7/6/91. Statutory Authority: 1990 c 33. 90-17-009, 180-27-115, filed 8/6/90, effective 9/6/90. Statutory Authority: RCW 28A.47.830, 28A.47.060 and 28A.47.802. 90-01-076, 180-27-115, filed 12/19/89, effective 12/19/89. Statutory Authority: RCW 28A.47.830. 85-24-048 (Order 25-85), 180-27-115, filed 11/27/85; 83-21-066 (Order 11-83), 180-27-115, filed 10/17/83.]

OTS-4941.1


AMENDATORY SECTION(Amending Order 15-83, filed 10/17/83)

WAC 180-32-065   Support level -- Furniture and equipment allowances.   An allowance for furniture and equipment purchases shall be added to the total construction costs of a project determined eligible for state matching assistance. The equipment allowance shall be determined by multiplying the approved square foot area of the project by the ((prevailing)) area cost allowance of state support ((at time of bid)) for the fiscal year funded and that product multiplied by seven percent.

[Statutory Authority: RCW 28A.47.830. 83-21-070 (Order 15-83), 180-32-065, filed 10/17/83.]

OTS-4942.1


AMENDATORY SECTION(Amending WSR 91-12-058, filed 6/5/91, effective 7/6/91)

WAC 180-33-020   Formula for determining the amount of state assistance.   State assistance in an approved modernization project shall be derived by applying the percentage of state assistance determined pursuant to provisions of RCW 28A.525.166 and WAC 180-27-025 to the eligible cost which shall be calculated by multiplying the approved square foot area of the modernization project by the area cost allowance ((for state support)) for the fiscal year funded, less any deductions as set forth in WAC 180-33-023 if applicable, by the factor in WAC 180-33-040 set forth, any cost in excess thereof shall be financed entirely by the school district.

[Statutory Authority: [RCW 28A.525.020.] 91-12-058, 180-33-020, filed 6/5/91, effective 7/6/91. Statutory Authority: 1990 c 33. 90-17-009, 180-33-020, filed 8/6/90, effective 9/6/90. Statutory Authority: RCW 28A.47.830. 83-21-071 (Order 16-83), 180-33-020, filed 10/17/83. Statutory Authority: RCW 28A.47.073. 81-24-049 (Order 13-81), 180-33-020, filed 12/1/81.]


AMENDATORY SECTION(Amending WSR 91-12-058, filed 6/5/91, effective 7/6/91)

WAC 180-33-035   Minimum project -- Forty percent of replacement costs.   State assistance in modernization of school facilities shall be limited to projects which may include an entire facility or one or more complete buildings within a facility for which the estimated cost of major structural change is not less than forty percent of the estimated cost of replacement. The estimated cost of major structural change shall not include the estimated capital costs associated with restoring building systems or subsystems due to deterioration as determined in the study and survey to be caused by deferred maintenance. The estimated cost of replacement shall be derived from multiplication of the total square foot area of the facility or facilities proposed for modernization by the area cost allowance ((of state support at projected time of bid)) for the fiscal year funded as in WAC 180-27-045 set forth.

[Statutory Authority: [RCW 28A.525.020.] 91-12-058, 180-33-035, filed 6/5/91, effective 7/6/91. Statutory Authority: RCW 28A.47.830. 85-24-049 (Order 26-85), 180-33-035, filed 11/27/85; 83-21-071 (Order 16-83), 180-33-035, filed 10/17/83. Statutory Authority: RCW 28A.47.073. 81-24-049 (Order 13-81), 180-33-035, filed 12/1/81.]

Washington State Code Reviser's Office