New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY SCHOOLS DEVELOPMENT AUTHORITY › Chapter 34B - SECTION 13.e DELEGATION OF SCHOOL FACILITIES PROJECTS › Subchapter 3 - EXECUTION OF GRANT AGREEMENT › Section 19:34B-3.4 - Authority execution of grant agreement for delegated construction activities

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Upon the
				  Authority's written approval of the bid specifications for construction of the
				  school facilities project, which shall be drafted for procurement as a single
				  overall contract (not multi-prime) under paragraph 2 of
				  18A:18A-18(b) 
				  of the PSCL, and upon the Authority's approval of the CWE, the Authority shall
				  give the school district written authorization to seek bid proposals for
				  construction in accordance with the PSCL. The school district shall include in
				  its bid documents the statement that its ability to enter into a contract shall
				  be contingent upon the receipt of an executed grant agreement from the
				  Authority, and a statement that an extension of the time period for
				  consideration of bids under
				  18A:18A-36 may be required, and
				  shall include in construction contract all of the requirements of
				  19:34B-6.3, as indicated. Once the
				  bid proposals for the construction contract are received, the school district
				  shall, within two business days of the receipt of bids, forward the bid
				  proposals to the Authority for review.
(b) Upon the district's receipt of bids for
				  the construction phase of the school facilities projects, and the subsequent
				  forwarding of such bids to the Authority, the Authority shall use the bids
				  received to formulate its recommendation of final eligible costs of the school
				  facilities project, which recommendation shall be submitted to the Department
				  for determination of final eligible costs, pursuant to
				  6A:26-3.5.
(c) For school facilities projects without a
				  local share, after the Authority receives a final project report evidencing
				  final eligible costs, and following approval of the project charter by the
				  Board of the Authority, the Authority shall execute the grant agreement and
				  issue a written authorization to the district to proceed with the engagement of
				  a contractor for the construction of the school facilities project, in
				  accordance with N.J.A.C. 19:34B-6.
(d) In the event that a school facilities
				  project subject to delegation includes excess costs or other costs that must be
				  borne by the district as a local share, the Authority shall not execute the
				  grant agreement until the district provides the following evidence that the
				  local share has been approved in accordance with the provisions for the
				  approval of capital projects pursuant to
				  18A:22-1 et seq., 18A:24-1 et
				  seq., and 18A:7A-46.1 et seq., as applicable to the district pursuant to
				  18A:7G-11 and
				  6A:26-3.7.
1. If the local share is funded all or in
				  part through the issuance of school bonds, a certified copy of the referendum
				  that the school district submitted to the voters for approval of the local
				  share evidencing proof of voter approval of the local share; or
2. If the local share is funded through
				  sources other than school bonds, such as the capital reserve account or lease
				  purchase, the school district shall obtain approval of local share in
				  accordance with
				  6A:26-3.7 and any statutory and
				  regulatory authorities specifically governing that source of local share, such
				  as 18A:20-4.2(f) 
				  and 18A:7G-31, and
				  6A:26-8.1 and 10.
3. Upon receipt by the Authority of evidence
				  of approval of the local share, the Authority shall execute the grant agreement
				  and the Authority and the school district shall proceed in accordance with (c)
				  above.
4. If the school district
				  fails to submit evidence that the local share has been approved, the Authority
				  shall not issue an authorization-to-proceed with engagement of a contractor and
				  the school district shall not proceed with the engagement of a contractor or
				  the commencement of construction. The Authority's approval to delegate portions
				  of the school facilities project shall be rescinded if a district fails to
				  obtain approval of the local share while the winning construction bid upon
				  which the final eligible costs are based is still valid.
5. In the event a district fails to obtain
				  approval of the local share and the Authority's approval is rescinded, and,
				  further, in the event that the district fails to evidence diligent and good
				  faith efforts to obtain the local share, the district shall be obligated to
				  refund to the Authority any moneys disbursed to the district under the
				  agreement.