New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY › Chapter 32 - SCHOOL FACILITIES PROJECTS: SECTION 15 GRANT PROCEDURES › Subchapter 1 - GENERAL PROVISIONS › Section 19:32-1.3 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The following words and terms, when used
				  in this subchapter, shall have the following meanings unless the context
				  clearly indicates otherwise. Words in the singular shall include the plural and
				  words in the plural shall include the singular where the context so requires.
"Act" means the Educational Facilities Construction and
					 Financing Act,
					 P.L.
					 2000, c. 72
					 (18A:7G-1 et seq.), as amended,
					 and P.L.
					 2007, c. 137
					 (52:18A-235 et seq.), which
					 authorizes the school construction program.
"Agreement" or "grant agreement" means the grant agreement
					 (and all attachments thereto) between the Authority and the district. The
					 agreement shall set forth the terms and conditions of the grant, amount of the
					 grant, final eligible costs, State share, local share, and disbursement
					 schedule.
"Approved costs" means costs of the school facilities
					 project which are eligible to be paid from the proceeds of the grant and have
					 been paid or shall be paid by the district.
"Authority" or "SDA" means the New Jersey Schools
					 Development Authority established, pursuant to
					 section
					 3 of
					 P.L.
					 2007, c. 137
					 (52:18A-237), as successor to the
					 New Jersey Schools Construction Corporation. The SDA is statutorily charged
					 with undertaking and funding school facilities projects pursuant to the
					 Act.
"Authorized officer" means:
1. With respect to the district, any person
				  or persons authorized pursuant to a resolution of the governing body of the
				  district to perform any act or execute any document relating to the grant and
				  the grant agreement, including the school business administrator; and
2. With respect to the Authority, any person
				  or persons authorized to perform any act or execute any document relating to
				  the grant and the grant agreement.
"Bond counsel" means any lawyer or firm of lawyers
					 nationally recognized in the field of municipal finance and satisfactory to the
					 NJEDA.
"Capital maintenance project" means a school facilities
					 project intended to extend the useful life of a school facility, including
					 upgrades and replacements of building systems, such as structure, enclosure,
					 mechanical, plumbing, and electrical systems.
"Capital reserve account" means the account of the district
					 established pursuant to
					 N.J.A.C.
					 6A:23-2.1 3.
"Change order" means a written order, directing or
					 authorizing some change, in whatever degree to a design consultant contract or
					 construction contract, including, but not limited to, an increase or decrease
					 in the scope of work to be performed by the design consultant or the
					 contractor, as the case may be, or an acceleration of time for the performance
					 of such work, or a change in the sequence in which such work is being
					 performed.
"Checklist" means a form to be provided by the Authority
					 and to be completed by the district at various milestones in the design and
					 construction of the school facilities project prior to receiving certain
					 disbursements of the grant. There may be a design phase checklist, a
					 construction phase checklist, a final completion checklist or a checklist or
					 other certification to be submitted by the district for other stages in the
					 completion of a school facilities project. The district may file a checklist
					 electronically if such option is made available to the district by the
					 Authority.
"Closeout" means the process by which the Authority
					 determines that all applicable administrative actions and all required work
					 have been completed by the district.
"Code" means the "Internal Revenue Code of 1986, as
					 amended," as the same may from time to time be amended and supplemented,
					 including any regulations promulgated thereunder, any successor code thereto,
					 and administrative and judicial interpretations thereof.
"Commencement date" means the date on which a grant
					 agreement has been fully executed by all the parties thereto and the district
					 has delivered, to the satisfaction of the Authority, the documentation required
					 by the grant agreement and
					 19:32-2.4.
"Commissioner" means the Commissioner of the New Jersey
					 Department of Education or his or her designee.
"Completion date" means the date specified by the district
					 for completion of the school facilities project which may be changed by the
					 district upon notice to the Authority.
"Construction contract" means an agreement between the
					 district and the contractor governing the construction of all or a portion of a
					 school facilities project and any documents attached thereto and amendments
					 thereof. There may be one or more construction contracts for a school
					 facilities project.
"Construction phase" means that phase of a school
					 facilities project in which construction of the school facilities project is
					 undertaken by a contractor or contractors.
"Consultant" means a consultant, including a design
					 consultant, engaged by the district for a school facilities project providing
					 professional services associated with research, development, design, and
					 construction administration, alteration, or renovation of real property, as
					 well as incidental services that members of these professions and those in
					 their employ may logically or justifiably perform. A consultant may provide
					 services including studies, investigations, surveys, evaluations,
					 consultations, planning, programming, conceptual designs, plans and
					 specifications, cost estimates, construction management, inspections, shop
					 drawing reviews, preparation of operating and maintenance manuals, and other
					 related services. There may be one or more consultants engaged by the district
					 for a school facilities project.
"Contract" means a contract between a contracted party and
					 the district for a school facilities project. The term "contract" includes a
					 design consultant contract, a construction contract and any other contracts,
					 subcontracts and agreements between:
1. The district and its
				  consultants;
2. The district and
				  its contractors;
3. Contractors and
				  their subconsultants and subcontractors; and
4. Consultants and their subconsultants and
				  subcontractors.
"Contracted party" means a consultant, contractor, and
					 their subconsultants and subcontractors and any other party providing material
					 or services to the district in connection with a school facilities
					 project.
"Contractor" means that person or firm engaged by the
					 district to undertake the construction of a school facilities project. There
					 may be either a single "general" contractor who has overall contractual
					 responsibility for delivering all of the construction services needed to
					 complete a school facilities project or there may be multiple contractors who
					 have responsibility for delivering particular aspects of a school facilities
					 project.
"DCA" means the New Jersey Department of Community
					 Affairs.
"Department" means the New Jersey Department of
					 Education.
"Department regulations" means regulations issued by the
					 Commissioner and/or the State Board of Education which govern the financing,
					 construction and maintenance of school facilities projects.
"Design consultant" means an architect or engineer or other
					 consultant selected by the district to provide design services and/or
					 construction administration services in connection with a school facilities
					 project pursuant to a design consultant contract.
"Design consultant contract" means at agreement between the
					 district and the design consultant for design of a school facilities project
					 and any documents attached to such agreement and any amendments to such
					 agreement.
"Design phase" means that phase of a school facilities
					 project in which a school facilities project is designed by the design
					 consultant.
"Disbursement" means a release of a portion of the grant to
					 the district to pay for approved costs.
"District aid percentage" means the number, expressed as a
					 percentage derived from dividing the district's actual core curriculum
					 standards aid calculated pursuant to
					 18A:7F-15 available as of the
					 date of the Commissioner's determination of preliminary eligible costs by the
					 district's actual Thorough and Efficient (T & E) budget calculated pursuant
					 to 18A:7F-13(d) 
					 available as of the date of the Commissioner's determination of preliminary
					 eligible costs.
"District board" means the board of education of the
					 district.
"Division of Criminal Justice, Bureau of Fiscal
					 Oversight/SDA" or "Bureau of Fiscal Oversight/SDA" means the unit which is the
					 successor to the Unit of Fiscal Integrity within the Office of the Attorney
					 General created by
					 18A:7G-43.
"DOL" means the New Jersey Department of Labor and
					 Workforce Development.
"Event of default" means any event specified at
					 N.J.A.C.
					 19:32-1.12.
"Excess costs" means the additional costs of a school
					 facilities project, if any, which shall be borne by the district, which result
					 from design factors that are not required to meet the facilities efficiency
					 standards and are not approved pursuant to
					 18A:7G-5(g)  or
					 are not authorized as community design features included in final eligible
					 costs pursuant to
					 18A:7G-6(c).
					 Excess costs are to be distinguished from the additional costs arising out of
					 design factors that are required to meet the facilities efficiency standards
					 and that are either approved or authorized pursuant to
					 18A:7G-5 or 6.
"Expiration date" means the date upon which the term of the
					 grant agreement automatically ends, which shall be the third anniversary of the
					 date of final payment of the grant and closeout.
"Final eligible costs" means the final approved costs of a
					 school facilities project, as determined pursuant to N.J.S.A. 18A:7G-5.h(1) and
					 N.J.A.C.
					 6A:26-3.6.
"Governmental authority" means the United States, the State
					 or any political subdivision thereof, and any agency, department, commission,
					 board, bureau, or instrumentality which has jurisdiction over a school
					 facilities project or any part thereof or over the design, construction,
					 equipping, use or occupancy of a school facilities project.
"Grant" means the funds to be provided to the district by
					 the Authority to pay for the approved costs of a school facilities project
					 pursuant to this chapter.
"Local share" means the total costs less the State share as
					 determined pursuant to
					 18A:7G-15.
"Long-range facilities plan" means the plan required to be
					 submitted to the Commissioner by a district pursuant to
					 18A:7G-4.
"LWD" means the New Jersey Department of Labor and
					 Workforce Development.
"Milestones" means the critical activities of the design
					 and construction of a school facilities project which are expected to be
					 completed and the percentage of the grant to be paid provided that all
					 conditions precedent have been satisfied to the sole satisfaction of the
					 Authority.
"NJEDA" means the New Jersey Economic Development Authority
					 established pursuant to P.L.
					 1974, c. 80 (34:1B-1 et seq.)
"NJEDA bonds" means bonds issued by the New Jersey Economic
					 Development Authority pursuant to
					 section
					 25 of
					 P.L.
					 2007, c. 137, the
					 proceeds of which may fund all or part of the grant.
"Office of the Attorney General" means the New Jersey
					 Department of Law and Public Safety, Office of the Attorney General, as
					 successor to the Unit of Fiscal Integrity within the Office of the Attorney
					 General created by
					 18A:7G-43.
"Other facilities" means athletic stadiums, swimming pools,
					 any associated structures or related equipment tied to such facilities,
					 including, but not limited to, grandstands and night field lights, greenhouses,
					 facilities used for non-instructional or non-educational purposes, and any
					 structure, building, or facility used solely for school administration.
"Performance evaluation policy and procedure" means the
					 policies and procedures developed by the Authority for the purpose of
					 evaluating the performance of consultants and contractors who perform services
					 in connection with school facilities projects.
"Plans and specifications" means the plans and
					 specifications of a school facilities project prepared by a design consultant
					 and approved by the Department pursuant to
					 6A:26-5.4.
"Preliminary eligible costs" means the initial approved
					 costs of a school facilities project determined pursuant to the formulas set
					 forth at N.J.S.A. 18A:7G-7, which shall be deemed to include the costs of
					 construction and other allowable costs.
"Preliminary eligible costs" means the initial approved
					 costs of a school facilities project determined pursuant to the formulas set
					 forth in 18A:7G-7 which shall be deemed to
					 include the costs of construction and other allowable costs.
"PSCL" means the Public School Contracts Law,
					 18A:18A-1 et seq., together with
					 all applicable regulations and guidance issued by the DCA in connection
					 therewith.
"Punchlist" means the list, prepared before substantial
					 completion, of incomplete or defective work to be performed or remedied by a
					 contractor after substantial completion, but before final completion.
"Request for disbursement" means a written certified
					 statement by the district, in such form and manner as specified by the
					 Authority requesting that grant funds be disbursed to the district by the
					 Authority for approved costs which shall provide a complete description of the
					 approved costs that have been paid or shall be paid, as applicable, and shall
					 be certified by the vendor and the authorized officers of the district. The
					 request for disbursement shall include a voucher.
"Requirements" means any law, ordinance, order, rule, or
					 regulation of a governmental authority applicable to a school facilities
					 project, a grant, and the work performed thereunder.
"School bonds" means the bonds, notes or other obligations
					 issued by a district to finance the local share.
"School business administrator" means the person appointed
					 by the district board pursuant to
					 N.J.A.C.
					 6:11-9.
"School facility" means and includes any structure,
					 building or facility used wholly or in part for educational purposes by a
					 district and facilities that physically support such structures, buildings and
					 facilities, such as district wastewater treatment facilities, power generating
					 facilities, and steam generating facilities, but shall exclude other
					 facilities.
"School facilities project" means the planning,
					 acquisition, demolition, construction, improvement, alteration, modernization,
					 renovation, reconstruction, or capital maintenance of all or any part of a
					 school facility or of any other personal property necessary for, or ancillary
					 to, any school facility, and shall include fixtures, furnishings, and
					 equipment, and shall also include, but is not limited to, site acquisition,
					 site development, the services of design professionals, such as engineers and
					 architects, construction management, legal services, financing costs, and
					 administrative costs and expenses incurred in connection with the school
					 facilities project.
"SDA school district" means a school district that received
					 education opportunity aid or preschool expansion aid in the 2007-2008 school
					 year, as defined at
					 P.L.
					 2007, c. 260,
					 §39 (18A:7G-3).
"State" means the State of New Jersey.
"State share" means the State's proportionate share of the
					 final eligible costs, which equals the district aid percentage or 40 percent,
					 whichever is greater as provided at N.J.S.A. 18A:7G-15.
"Subconsultant" means a consultant or contractor to whom a
					 consultant subcontracts part of the work of a school facilities project for
					 which the consultant is responsible.
"Subcontractor" means a contractor to whom a contractor or
					 consultant subcontracts part of the work of a school facilities project for
					 which such contractor or consultant is responsible.
"Substantial completion" means that point in time for a
					 school facilities project when all of the following have occurred:
1. All essential requirements of the
				  contracts have been fully performed so that the purpose of the contracts is
				  accomplished;
2. The punchlist has
				  been created;
3. There are no
				  important or material omissions or technical defects or deficiencies regarding
				  the school facilities project;
4. A
				  temporary certificate of occupancy, continued use or completion has been
				  issued; and
5. The school
				  facilities project is ready for occupancy in accordance with its intended
				  purpose.
"Suspension" means a temporary cessation of disbursements
					 to the district.
"Term" means the term of the grant agreement, which shall
					 commence on the commencement date and shall end on the expiration date, unless
					 sooner terminated.
"Termination" means the cancellation of the grant agreement
					 as a result of an event of default or by mutual consent of the parties pursuant
					 to 19:32-1.13.
"Time-sensitive project" means either an emergent project,
					 as that term is defined in
					 6A:26-1.2, or a school facilities
					 project necessitating an abbreviated grant disbursement schedule because the
					 standard disbursement schedule would not accommodate a district's need to have
					 the school facility operational by the commencement of or during the school
					 year.
"Total costs" means the actual total amount spent on a
					 school facilities project.
"Unavoidable delays" means any delays due to weather,
					 strikes, acts of God, governmental restrictions, enemy action, civil commotion,
					 fire, unavoidable casualty, or other causes similarly beyond the control of the
					 district; provided, however, that any lack of funds beyond those funds to be
					 provided pursuant to the grant agreement shall not be deemed a cause beyond the
					 control of the district.
"Voucher" means a form required by SDA in support of a
					 district's grant disbursement request, that certifies the progress of the
					 school facilities project and the amount of grant disbursements to date, and
					 which must be executed by the district's authorized officer and delivered to
					 the Authority by the district, together with a request for disbursement.