Academic Facilities Partnership Program

ACADEMIC FACILITIES PARTNERSHIP PROGRAM

September2011

PROJECTAGREEMENT

(Applicablebeginningwith Partnership Projects for2013-2015Biennium)

Project Name: Click to enter Project Name.

Project Number: Click to enter Project Number.

ThisProjectAgreement(“Agreement”)ismadeandenteredinto by andbetweentheDivisionofPublic School Academic Facilities and Transportation (“Division”) and theClick to enter District Name SchoolDistrict(“District”), Click to enter County. County,pursuanttoA.C.A.§ 6-20-2507.

WHEREAS,TheDivision,createdpursuanttoAct1327of2005isabody corporateand politic,anagency ofstategovernmentandaninstrumentality oftheStateofArkansas(“State”), performingessential government functions ofthe State; and

WHEREAS,theDistrictisactingasanagency ofstategovernment,performing essential functions ofgovernmentpursuant to thelaws oftheStateofArkansas, and

WHEREAS,the Districtandthe Divisionhave approveda MasterFacilities Plan describing theclassroomfacilitiesneedsofthe entirestudentpopulation ofthedistrict,andthe total budget forthePublicSchool AcademicFacilities Project (“Project”);and

WHEREAS,theDistrictandtheDivisionacknowledgethatforfundingandplanning

purposes, the Project is anticipated to commence on

andbe completed onClick to enter Date..

NOW,THEREFORE, inconsiderationofthemutualpromiseshereincontained,the DistrictandtheDivisionagreetocooperateinthedesign,constructionandtermsdescribed herein andas follows.

I.AGREEMENTAPPLICABILITY

ThisProjectAgreement(“Agreement”)willbecomeeffectiveuponthesigning ofboth partiesandbebinding onthedatesignedby theDirectoroftheDivisionofPublicSchool AcademicFacilities. Thedistrictcertifiesthatscopeplanning andfinancialplanninghave beencompletedpriortotheprojectapplication submission. Noadditionalaspectofthe projectwillproceedpriortothesigning ofthisagreement. By signing,thedistrictcertifies thatithasnotbeguntheprojectbeyondthestepsoutlinedabove. Thesigning ofthis agreementcertifiesthatthe CommissionforArkansasPublic SchoolAcademic Facilities andTransportation(“Commission”) hasapprovedtheprojectandfundingunderthe AcademicFacilitiesPartnershipProgram. Thedistrictfurtheracknowledgesbysigning that,shoulditbedeterminedthattheProjectbeganpriortothesigningofthisagreement, theCommissionmayexerciseoneofthefollowingoptions: (1)Exerciseitsauthorityfor projectdisapproval,(2)Declareanyprojectaspectsundertakenpriortothesigningdate ineligible for program funds, or (3) Require the district to modify any plans and or contractssuchthatthey areinconformancewiththeprovisionsofthisagreement. The districtagreesthatshouldany oftheseoptionsbeexercised by theCommission,the agreementwillbe amendedandthe StateFinancialParticipationadjusted accordingly. The Commissionmay alsoexercisetheiroptiontoamendtheagreementshouldtheplanreview ortheapprovalofavariancerequestby thedistrictcauseachangeinscopeorthefinal contract price alters theinitial State Financial Participation as stated on theagreement.

Furthermore,ifconstructionoftheprojecthasnotcommencedby (enterdate18months fromCommissionapproval)10/25/2015, thisagreementisnullandvoidandany moniespaid by the statetoadistrictshallbesubjecttoimmediaterecaptureby thestate. Thepartiesagreeto exercisegoodfaithinthe executionof thisagreementandthe completionof the requirementssetforth herein, and thatboth partieswillendeavor to follow and implement theaspectsoftheprogram,thedistrictagreestocomply withalltimelinesandprocess requirementsintheRulesGoverning thePartnershipProgramorbesubjecttothose Commission options referencedabove.

II.SCOPEOFTHEPROJECT

A. Theparties agreethat theproject shall bedescribed as follows:

1. Campus Name: Click to enter Campus Name.

2. BuildingName: Click to enter Building Name.

Ifthisisawarm,safeanddryproject,givecompletedescriptionofthesystem,or systems, beingreplaced in thedetailed scopes ofsteps 3 and 4.

3. District inserts detail scope of the total project here:

a.Click to enter Total Scope.

(Do not attach theapplication as thescope)

b.Total project square feetor appropriateunit : Click to enterProject Size.

4. District inserts detailed scopeofthefundedportion ofwork here:

a.Click to enter Funded Scope.

(Do not attach theapplication as thescope)

b.Funded project squarefeet or appropriateunit: Click to enter Funded Size.

B.The divisionandthe districtagree thatthe projectwill,where applicable,andtothe fullestextentpossible,comply withtheArkansasPublicSchoolAcademicFacility Manualanddivisionpoliciesandrules,unlessa variance isrequestedandapprovedby theDivision. Thedistrictshallnotuseanyoftheprojectconstructedpursuanttothis agreementforany purposeotherthanasanacademicfacility,asthattermisdefinedin Ark. CodeAnn. § 6-20-2502.

C. Total budgetfortheProject is $Click to enter Total Budget..

State financial participation ofthetotal Project budget shall be:$Click to enter State Participation..

State “green buildingincentive”: $Click to enter Green Building Incentive..

Total state financial participation: $Click to enter Total State Financial Participation..

TheDistrict’slocalshareofthetotalProjectbudgetshallbe$Click to enter Districts Local Share of Project.forth in ArticleIV ofthis Agreement.

D. Thedistrictshallprovidetothedivision,atthetimeofthesigningofthisagreement, data onthe programmedamountsof budgetelementsand,atthe completionof the project,dataontheactualcostoftheproject programmedelementsinclusiveofall changes in accordancewith AppendixB, Part 1 ofthis agreement.

Thedivision and district shall be responsible forthe following:

School DistrictDivision

Determination ofprojectScopeReview and approval

(Partnership Project Application)(application review)

Architect/Engineer, ConstructionProvideguidance asrequested Manager(if desired), Construction pertainingto procurement laws Contractorselection process

Submittal ofproject constructionReview for conformancewith facility drawings in PDF format and manual

full sizeprinted copy(preliminary floor plans for spaceprojects recommended for preliminaryreview)

Siteselection and requestProvide recommendedguidelines contained in theArkansas FacilityManual

Request forvarianceconsiderationDivision plan review andvariance oftheArkansas FacilityManual determination

Educational program choices,Approval in accordancewith design

andmaterialchoiceswithcurrentstatelaw and Arkansas FacilityManual

Recommend specialconditionsProvide recommended contract clauses documents for architect andconstruction contracts

Bid proceduresNo action

Submission ofproject approvalFinal projectapproval forms and statereviews

Recommendation of award,No action notification ofbids

Fund management in accordanceAudit option with Arkansas Department of

Education accounting guidelines

ProvideMaintenancePlan/Certification Verify new buildings are inthe MAPPS databaseandthe computerizedmaintenance management system.

A. Any property interest of the State during, and subsequent to construction of the Project,extendsonlytotheextentnecessarytofacilitatefinancingtheProject. The Districtwillcontinueto possessallotherlawfulrights,obligationsandinterestsinthe Project.

B. SiteSelection: TheDistrictshallbesolely responsibleforallcostsassociatedwiththe project site,including acquisition, environmental remediation,and unanticipated site conditions.

IV.SCHOOLDISTRICTSHAREOFTHE BASIC PROJECTCOST

A. ThesigningofthisAgreementwillserveascertificationbytheDistrictthatthelocal shareamountlistedinSectionIIhasbeenappropriated,budgetedandmadeavailableto supportthe District’sshare of this Project. Itfurther certifiesthatfundsare of the type indicatedbelow. TheDivisionreservestherighttoauditthefundsallocatedbythe Districttothe ProjectFundorany expenditurerelatedtotheFundortheProjectatany time. The method of financial accountability for any project funds will be as established bytheArkansas Department ofEducation.

B. Fundedfrombondproceeds: ($Click to enter Amount.). (Theschooldistrictisresponsiblefor the administrationofthe bondsale(ifapplicable),allnecessary noticesandcost associatedtherewith. The proceedsofany suchbondsornotes,except any premiums, accruedinterestandinterestincludedintheamountofthebondsornotes,shallbe used first to retireanybond anticipation notes issued bytheDistrict for theProject).

C. Funded from locallydonated contributions: ($Click to enter Amount.).

(Toincludelettersofcredit,moneysdonatedorcontributionsspentdirectlybyathird party.)

D. Funded from Grant sources: ($Click to enter Amount.).

(SpecifyoriginofGrantandanyspecialconditionsthatmightaffectthisProjectasa result of thegrant award.)

E. Funded from operational fund balances: ($Click to enter Amount.).

(To includeMaintenanceEscrowaccounts.)

V.STATESHAREOFPROJECTCOST

A.TheDivisionshallcertify totheDepartmentofEducationtheState’sportionofthe Projectcost,totransferthe State’sportionoftheProjectcost,or the applicable portion thereof,whichshallthenbetransferredtotheDistrictasmay benecessary topay obligationsincurredpursuanttothetermsofthis Agreement. TheDistrictwillsubmit payment requests to the Division, in a format provided in Appendix B. Payment requests for the design contract will be submitted in accordance with the design schedule inthe contract. Paymentstothe district,asstate share of theconstruction contract,willbeginone monthafter the Notice to Proceedisissuedandeachmonth thereafterwiththefinalpaymentrequestbeingmade atfinal Projectcloseout. This procedureappliestocontractswhosedurationisgreaterthansix(6)months. Projects undersixmonthsdurationwillbesubmittedattheconclusionoftheproject. The

Divisionwillmake paymentstothe District,ofitsproratedshare ofthe projectcost, commensuratewith the contract invoices.

B. The amountof the state’sfinancialparticipationfor the Projectineachfiscalbiennium shallbedeterminedby theDivisionbasedontheProject’sestimatedconstruction schedule. In eachsubsequentbiennium,inorder tocomplete the Projectper the constructionschedule,theapprovedProjectwillhavepriority forstatefundsovernew Projects forwhich initialstate fundingis sought.

C. The State’s share of the Project cost is limited to new construction on academic facilitiesasdefinedbyArkansasstatute. Projectfunding,ifapplicable,asmaypertain toportionsof thescope thatareagreedtobe maintenance,repair orrenovationare the responsibilityoftheDistrictandwillbeaccountedforseparatelyfromProjectfunds provided pursuant to this Agreement.

D.The totalextentof the State’sshare willbe basedonthe districtacademic facilities wealthindexandbasisofstatefinancialparticipationapplicableatthetimetheProject isapproved,asappliedby theRulesGoverningtheAcademicFacilitiesPartnership Program. ItwillnotbeadjustedduringthedurationoftheProjectexceptasstatedin paragraphI, Applicability.

E. Undernocircumstancesshall thestate’s shareofproject cost exceed theappropriateper square foot funding factor as allowed in thePartnership Rules.

VI.THEPROJECTCONSTRUCTION FUND

A.TheDistrictshallidentify and describeany fundor account,otherthanthe Project ConstructionFund(“Fund”) thatisrelatedtotheProject. TheDistrictshallincludein theFund,sufficientfundsasrequired by law,forissuanceofany contractsduringthe duration oftheproject.

B. TheDistrictshallberesponsiblefordistributingmoneysfromtheFunduponreceipt and approval ofproperinvoices.

C.Transactionsinvolving theFundshallberestrictedto:(1)paymentsfordesignand projectmanagementservices,(2) paymentstocontractors,(3) purchasesrelatedtothe project,4)transactionsauthorizedforestablishingandadministering theinvestment accounts andconstruction administration.

NoFundmoneysshallbespentforanyitemsinconsistentwiththeprovisionsofthe ArkansasSchoolFacilityManualandDivisionpolicies,unlessavarianceisapproved bytheDivision.

D. TheDistrictshallnottransfermoneysfromtheFund,investmentearningscreditedto theFund,toanyotherfundoraccountexceptaspermittedbythisAgreementorwith thewritten approval oftheDivision.

E. TheDistrictshallprovideafullaccountingoftheFund,uponrequestoftheDivision.

TheDivision reserves the right to audit theFund,or anyexpenditure related to the Fund ortheProject.

F. Thecontingencyreserveportionoftheconstructionbudgetshallbeusedtopayonly costsresultingfromunforeseenjobconditions,tocomply withrulingsregarding building andothercodes,topay costsrelatedtodesignclarificationsor correctionsto contractdocuments,andtopay thecostofsettlementsandjudgmentsrelatedtothe Project, unless otherwiseapproved bytheDivision.

G. IftheFund,includingallinvestmentearningscreditedtotheFund,andanyinterest earnedthroughcompletionoftheProject,becomesdepletedby paymentsofproper Projectcosts,theDistrictshallcompletetheProject,by contributingadditionalfunds. The stateshare islimitedtothe state financialparticipationasstatedinthe agreement and anyamendments.

H. ThisAgreementiscontingentonandsubjecttothedistrict’sability toraiseappropriate localresources. TheAgreementmay bedeclarednullandvoidandtheStatewillhave nofurther obligationtoprovide state fundstothe Districtfor the Projectthatisthe subjectofthisagreementiftheDistrictfailstoraiselocalresourcesandapplylocal resources toward theProject as provided underthis agreement.

VII. CONTRACTADMINISTRATION

A. TheDistrictshallcompetitivelybid,executeandadministercontractsforconstruction on the Project and all other contracts as necessary, in compliance with State of Arkansasbidding procurementlawsinplaceatthetimeofbid. Itfurtheragreesthatit will follow all state and local government procurement and construction codes, Divisionpoliciesandmanualsregardingany procurementactions,andadministration andexecutionofdesignandconstructioncontracts. Bothpartiesfurtheracknowledge thatthisAgreementisinadditiontoandnottoreplaceany stateannotatedcodes, policies or rulesgoverningstateprocurement practices and contract administration.

B. The division may recommend contract formats for projects of varying size and estimated cost.

C. The division may recommend contract clauses for the Architect and the Project Manager. IftheDistrictchoosestouse itsownformof Agreementfor the Architect/EngineerorConstructionManager,theDistrict’sAgreementmay containthe clauseslisted,asapplicable,inthe ArchitecturalContract RecommendationsDocument found on thedivision website.

D. Thedivisionmay recommendanInvitationforBidsandSpecialClausesforuseby the District. The Construction Contract Recommendations Documentcan befound on the Divisionwebsite. TheStandardConditionsofContractsforConstructionineffectat thetimeofthe applicablebid advertisement fortheProject shall applyto theProject.

E. AnyproposedchangestotheplansorscopeoftheProjectthataffectstheProject budgetcost,Projectlengthorfacility standardsshallbebroughttotheattentionofthe Division. TheDivision reservestherighttoconducton-siteinspectionsofthenew constructionasfrequentlyasdeemednecessarytoinsuretheprudentandresourceful expenditureofstate funds.

F. The District will be responsible for all administrative measures of the bidding procedures.

G. ShouldtheProjectnotbecompleted,throughnofaultoftheDistrict,theStateandthe Districtwillshareliability andrecoveredlossesanddamagestotheextentofthe Agreement.ShouldtheProjectnotbecompletedduetothefaultoftheDistrict,the State reserves the right to recoverits total loss from district financial balances.

H. TheDivisionwillmakefinalpaymenttotheDistrictuponreceiptofthefinalinvoice submittedtotheDistrictby thecontractedserviceprovider.Finalinvoicewillindicate: (1)originalcontractprice,(2)changestocost(3)finalcontractcostandbecertifiedfor

payment in accordance with District policy. All pay requests shall be clearly identifiableandchargeabletotheprojectlistedinthisagreement.Combining projects underonemaster contract is allowed as long as each project is billed separately.

I.This Agreement will be declared null and void and the State will not have any obligationtoprovide State fundstothe Districtforthe Project,thatisthe subjectofthis Agreement,iftheDistrictfailstoexecutethisAgreementoriftheDistrictfailsto adheretoany oftheconditionsofthe AgreementoriftheDistrictfailstocomply with anyand all statelawsregardingschool construction.

VIII.MAINTENANCEOF COMPLETEDFACILITIES

Uponcompletionof theproject,thedistrictwill create thepreventative maintenance schedulesofanynewspacefacility isincludedintheDistrict’soverallmaintenanceplan containedinthedistrict’scomputerizedmaintenancemanagementsystemasrequiredby theAcademicFacilities MasterPlan priorto finalpayment bytheDivision.

IX.AGREEMENTCONSIDERATIONS

A. AllprovisionsofthisAgreementarecontingentuponthedistrict’sfullcompliancewith

§6-20-2501et.seq.,the Partnership Rulesandthe Commission’sdeterminationthe Projectcontinuestobeaprudentandresourcefuluseofstatefunds,andtheabilityof thedistricttomeetrequiredtimesorobtainappropriatewaiversandraisespecified localresourcestosupporttheProject. Any failureofthedistrictintheseareasshallbe groundsforthisAgreementtobedeemednullandvoid by theCommissionandforthe district to be required to reimburse anypartnership funds providedto thedistrict forany partnership project thedistrict failed to maintain complianceon.

B.Nothing inthisAgreementshallbeconstruedtowaivetheprovisionsof Sovereign Immunityoranyotherdefenseorimmunity towhichtheStateofArkansasorits Commissions, DivisionsorAgencies maybe entitled.

C. AllconcernsandissuesrelatedtothisAgreementaregovernedbytheprovisionsof §

6-20-2501 et. seq.

D. IfthedistrictappealsthedeterminationoftheDivisionasto apartnershipprojecttothe Commission,theCommissionshallhavetheauthority tofullyreviewallpartsofthe district’sPartnershipProject(s)andmayapprove,deny,reduceorincreasetheamount ofstate financial participation in anyorall oftheappealed project(s).

Inwitness whereof, theparties haveexecuted this Agreement on thedate(s)set forth below.

By:

By:

SuperintendentDirector,Division ofPublic SchoolAcademic

Facilities andTransportation

SchoolDistrict

Date:

Date:

DPSAFTLong Form 1,September 2011