Original Notice.

Preproposal statement of inquiry was filed as WSR 99-06-079.

Title of Rule: Chapter 180-27 WAC, State assistance in providing school plant facilities--Basic state support.

Purpose: To do one or more of the following, as deemed appropriate: Make technical adjustments, clarify existing provisions, or implement new rules resulting from EHB 1831.

Statutory Authority for Adoption: RCW 28A.525.020.

Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Larry Davis, State Board of Education, Olympia, (360) 753-6715.

Name of Proponent: State Board of Education.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: To do one or more of the following, as deemed appropriate: Make technical adjustments, clarify existing provisions, or implement new rules resulting from EHB 1831.

Proposal Changes the Following Existing Rules: Technical correction--5; clarification--1; additional requirements--2; and new sections--1.

No small business economic impact statement has been prepared under chapter 19.85 RCW. Not applicable.

RCW 34.05.328 does not apply to this rule adoption. Not applicable.

Hearing Location: Kettle Falls School District, Kettle Falls, Washington, on August 20, 1999, at 9 a.m.

Assistance for Persons with Disabilities: Contact Patty Martin by August 10, 1999, TDD (360) 664-3631, or (360) 753-6715.

Submit Written Comments to: Rules Coordinator, State Board of Education, P.O. Box 47206, Olympia, WA 98504-7206, fax (360) 586-2357, by August 10, 1999.

Date of Intended Adoption: August 20, 1999.

July 7, 1999

Larry Davis

Executive Director

OTS-3272.1

AMENDATORY SECTION(Amending WSR 92-24-027, filed 11/24/92, effective 12/25/92)

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;

(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 basic 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 ((during design)), 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; ((and))

(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 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.]

Pursuant to provisions of RCW ((28A.525.166)) 28A.525.168, the percentage of state assistance used for the allocation of state moneys shall be the highest amount prevailing at the time of:

(1) Passage of bonds and/or levies by the voters of the school district to meet the requirement for local funding;

(2) State board of education project approval; or

(3) Superintendent of public instruction approval to bid.

For the purpose of this section the term "prevailing at the time" shall mean the eighteen-month period immediately following January 1 of each calendar year for which new matching percentages become available.

In the event that a district is otherwise eligible to receive authorization to open bids for one or more projects but a lack of state matching funds precludes the issuance of such authorization(s), the district shall retain the original percentage of state assistance as provided for in this section. This provision shall apply to all projects having received project approval by the state board of education after September 1, 1997.

[Statutory Authority: RCW 28A.525.020.  98-19-143, § 180-27-030, filed 9/23/98, effective 10/24/98.  Statutory Authority: 1990 c 33.  90-17-009, § 180-27-030, filed 8/6/90, effective 9/6/90.  Statutory Authority: RCW 28A.47.830.  83-21-066 (Order 11-83), § 180-27-030, filed 10/17/83.]

During the period of a priority approval process imposed by order of the state board of education school construction projects shall receive final approval pursuant to WAC 180-29-107 as follows:

(1) On or after July 1 following the state board of education order for the implementation of a priority approval process the superintendent of public instruction shall rank all projects for which final approval has been requested pursuant to WAC 180-29-107 as per the (([applicable])) applicable priority list in WAC (([180-27-058 or])) 180-27-500.  Only school construction projects with state board of education approval under WAC 180-25-045 and secured local capital funds by (([December] [January])) January 31 of the previous state fiscal year and eligible for final approval pursuant to WAC 180-29-107 by June 30 of the previous state fiscal year shall be placed on (([that] [the])) the priority list(([: Provided, That for the state fiscal year beginning July 1, 1992, the December 31, 1991, cutoff date is extended to March 27, 1992])).

(2) Each fiscal year the superintendent of public instruction shall give final approval to school construction projects on the priority list pursuant to WAC 180-29-107 based on the level and conditions of legislative appropriations.  For the purpose of this subsection the term "estimated revenue available for the state fiscal year" shall mean the estimated revenue from the common school construction fund for the current state fiscal year and the subsequent state fiscal year, the result of which is divided by two.

(3) In the event the state board of education does not rescind the order for the implementation of a priority approval process by the close of the state fiscal year, school construction projects remaining on the priority list without final approval and, therefore, without secured funding status pursuant to WAC 180-29-107 shall be combined with new school construction projects that have secured local capital funds by (([December] [January])) January 31 of the state fiscal year and that are eligible, pursuant to WAC 180-29-107, for final approval by the close of the state fiscal year, and a new priority list shall be established on or after July 1 of the next state fiscal year and such remaining and new school construction projects shall be eligible for final approval pursuant to the provisions of subsections (1) and (2) of this section.

[Statutory Authority: RCW 28A.525.020.  98-23-033, § 180-27-056, filed 11/10/98, effective 12/11/98; 98-19-143, § 180-27-056, filed 9/23/98, effective 10/24/98.  Statutory Authority: RCW 28A.525.020 and 1992 c 233 § 24(8).  92-16-058, § 180-27-056, filed 8/3/92, effective 9/3/92.  Statutory Authority: RCW 28A.47.830.  85-04-008 (Order 2-85), § 180-27-056, filed 1/25/85.]

At the appropriate time in the design process for a school facility approved by the state board of education, the district shall prepare a standard value engineering study, complete a constructability review, and perform building commissioning for all projects greater than fifty thousand square feet. ((Preparation of a)) Value engineering ((study is)) studies, constructability reviews, and building commissioning shall be optional for projects larger than fifteen thousand square feet but fifty thousand square feet or less. Any project which includes fifteen thousand square feet or less shall be exempt from this requirement.  For the purpose of this section, a standard 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.  ((The amount of state assistance for which)) 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 ((is)) shall be eligible for state assistance for a value engineering study, a constructability review, and building commissioning for each qualifying project. The amount of assistance shall be the state matching percentage multiplied by the greater of the following:

(1) One-quarter of one percent of the area cost allowance multiplied by the square foot area at time of bid; or

(2) Twenty thousand dollars.

[Statutory Authority: RCW 28A.525.020.  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.]

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 experience in the management of construction projects including procurement, contract administration, scheduling, budgets, quality assurance, information management, and health and safety. A construction manager certified by the Construction Management Association of America is desirable, but not mandatory. 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 of the time of bid.

[]

As used in WAC 180-27-605 through 180-27-615:

(1) The term "emergency repair" means a repair to a school building necessitated by ((unforeseeable defects in the building due to error(s) in the design and/or construction of the building)) accidents, natural disasters, fire, floods, vandalism, or similar events.

(2) (("Error in the design or construction of a building" means the failure of the architect(s), engineers(s) or contractor(s) to design and construct a building in accordance with generally accepted and applied standards at the time the building was constructed.

(3))) The term "imminent health and safety hazard" means a threat of immediate physical injury to the occupants of a building.

(3) The term "local funding" means insurance settlements, litigation proceeds in excess of costs, any unreserved general fund balance in excess of $200/FTE student for first class districts or $500/FTE student for second class districts as reported in the most recently available annual fiscal report (F196), any unobligated, unreserved capital fund balance, any capital funds reserved for uninsured risk, and any unused voter-approved bond capacity. Districts shall not be required to pass bond or levy issues or incur nonvoted debt in order to qualify for these funds.

[Statutory Authority: 1995 2nd sp.s. c 16 § 508.  95-20-088, § 180-27-600, filed 10/4/95, effective 11/4/95.]

The state board of education may allocate ((an amount not to exceed five million dollars per fiscal year 1995-96 and 1996-97)) up to $6,491,519 during the 1999-2001 biennium to school districts for emergency repair projects for school buildings which present imminent health and safety hazards for building occupants in accordance with the following process and eligibility criteria:

(1) A school district board of directors shall approve and present to the superintendent of public instruction a written application for emergency repair funding on a form provided by the superintendent of public instruction.

(2) The application and accompanying documentation shall include, but not be limited to:

(a) Certification of the unrestricted balance, if any, of the district's general fund and capital projects fund and that all avenues of local funding have been exhausted;

(b) A determination and description of available alternative housing options for occupants of the building;

(c) A detailed description of the nature of the emergency repair;

(d) A detailed description of the nature and extent of the imminent health and safety hazards that exist, and the extent they would be alleviated by the emergency repair;

(e) Evidence that the district is aggressively pursuing civil remedies against the responsible party(((ies))) or parties as appropriate;

(f) Certification by a health official, fire official, building official, labor and industries official or other independent and competent authority that an imminent health and safety hazard to building occupants of a specified nature and extent exists unless the emergency repairs are made; and

(g) The estimated cost of the emergency repairs based upon an estimate made by two or more independent, qualified cost estimators.

(h) A plan for repayment of the grant.

[Statutory Authority: 1995 2nd sp.s. c 16 § 508.  95-20-088, § 180-27-605, filed 10/4/95, effective 11/4/95.]

((A review committee appointed by)) The superintendent of public instruction shall ((periodically evaluate and rank applications for emergency repair funding submitted pursuant to WAC 180-27-605, and)) recommend to the state board of education whether or not an application shall be funded and, if so, the amount to be funded.  The state board of education shall make the final decisions respecting emergency repair applications and grants.

[Statutory Authority: 1995 2nd sp.s. c 16 § 508.  95-20-088, § 180-27-610, filed 10/4/95, effective 11/4/95.]

Grants of emergency repair moneys shall be conditioned upon the written commitment of the school district board of directors to repay the grant by waiving the school district's current or future eligibility for state building assistance under chapters 180-25 through 180-33 WAC, or with insurance payments, or with any judgment(s) that have been awarded, or with other means and sources of repayment.  ((The state board of education may waive or qualify the requirements of this section in whole or part based upon credible evidence of long-range extenuating financial circumstances.))

[Statutory Authority: 1995 2nd sp.s. c 16 § 508.  95-20-088, § 180-27-615, filed 10/4/95, effective 11/4/95.]

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