6:23A-2.5 Determination of final eligible costs for authority schoolfacilities projects
(a) School facilities projects of Abbott districts, level II districts and districts with a district aid percentage equal to or greater than 55 percent shall be constructed by the Authority.
(b) Any district that is not required to use the Authority pursuant to (a) above may elect to have the Authority undertake the construction of a school facilities project in the district.
(c) After approving a project that shall be constructed by the Authority, or being notified that the district has elected to use the Authority pursuant to (b) above, the Division shall promptly prepare and submit to the Authority a preliminary project report which 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 N.J.S.A.18A:7G-5 (m);
6. Any other factors to be considered by the Authority in undertaking the school facilities project; and
7. The name, address and phone number of the person from the district to contact concerning the school facilities project.
(d) In the event that the Authority determines, based on detailed plans and specifications, that a school facilities project can be completed within the preliminary eligible costs, the final eligible costs, pursuant to EFCFA, shall be deemed to equal the preliminary eligible costs, the Commissioner shall be deemed to have given final approval to the project and the preliminary project report shall be deemed to be the final project report delivered to the authority pursuant to N.J.S.A. 18A:7G-5
(j).
(e) In the event that the Authority determines that a school facilities project cannot be completed within the preliminary eligible costs, prior to the submission of the Authority's recommendations to the Commissioner, the Authority shall consult with the district and the Commissioner and determine whether changes can be made in the school facilities project which will result in a reduction in costs while at the same time meeting the requirements of educational adequacy.
1. When the Commissioner is notified by the Authority that the Authority has determined that changes in the school facilities project are possible so that 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;
ii. Give final approval to the school facilities project with the changes noted; and
iii. Issue a final project report to the Authority in accordance with (i) below.
2. When the Commissioner is notified by the Authority that the Authority has determined that it is not possible to make changes in a school facilities project so that it can be completed within the preliminary eligible costs either because the additional costs are the result of factors outside the control of the district or because the additional costs are required to meet the requirements of educational adequacy, the 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 Authority;
ii. Give final approval to the school facilities project; and
iii. Issue a final project report to the Authority in accordance with (i) below.
3. When the Commissioner is notified by the Authority that the Authority has determined that the additional costs are the result of factors that are within the control of the district or are the result of design factors that are not required to meet the facilities efficiency standards or approved pursuant to N.J.A.C. 6:23A-2.2 (e), the 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 those preliminary eligible costs are determined to be insufficient to meet the educational needs of the district, in which case they shall be adjusted upward as appropriate, and specify the excess costs which are to be borne by the district;
ii. Give final approval to the school facilities project; and
iii. Issue a final project report to the Authority in accordance with (i) below.
(f) For any school facility projects to be constructed by the Authority in which the State share of final eligible costs is 100 percent, the Authority may, in its discretion, delay the request for a determination of final eligible costs until receipt of the construction bids by the Authority.
(g) After receipt by the Authority of a final project report, the district shall be responsible only for the local share identified in that report and the costs associated with changes, if any, made at the request of the district to the scope of the school facilities project.
(h) The Authority will not commence the acquisition or construction of a school facilities project until the Division transmits to the Authority a final project report except as provided in N.J.A.C. 6:23A-2.9.
(i) The final project report shall contain all of the information contained in the preliminary project report and, in addition, shall contain:
1. The final eligible costs;
2. The excess costs, if any;
3. The total costs which equals the final eligible costs plus excess costs, if any;
4. The State share of the total costs; and
5. The local share of the total costs.