Friday, April 17, 2009

SCHOOL PROJECTS ... FREE MONEY ... OR IS IT REALLY FREE?

From: Wedge, David [mailto:David.Wedge@po.state.ct.us]
Sent: Friday, April 17, 2009 9:34 AM
To: A concerned citizen
Subject: RE: New Fairfield School District


Dear Concerned Citizen,

First, the term “Renovate as New” has been the commonly applied term for the statutory provision of a project classified as a “Renovation.”  The classification was created in the late ‘90s to closely equate the school construction grant of a “Renovation” to that of building a new school.  Let me explain.

Prior to this classification projects of this type were considered as alterations, refurbishments, or several similar characterizations.  However, whereas most costs in the construction of a new facility are eligible for grant assistance, in these other projects all costs characterized as repairs, replacements or maintenance were (and still are) ineligible for grant assistance.  Therefore, replacement of boilers/HVAC systems, lighting, carpeting, phone systems, etc., no matter what their age or condition, were (and still are) ineligible for grant assistance.  But in the late ‘90s we saw that rather than repairing old school facilities that were structurally sound, towns were abandoning old buildings and replacing them with new facilities.  The logic used by the towns was why fix up an old school when most of the costs will be ineligible when we can build a new school and most of the costs will be eligible for grant assistance.

The state then created the category of a “renovation.”  Basically, it states that if a town fixes up an old facility (at least 30 years old) that is structurally sound, making it into the functional equivalent of a new school, and there is a cost savings over building a new school, then the commissioner has the authority to make those otherwise ineligible costs eligible for grant assistance.  The provision makes a lot of sense.  If we would pay for a boiler in a new school, we will pay for a replacement boiler in the renovation, etc.   However, to qualify, the project must be for the full renovation of the entire facility, not just a portion.  This is not the every 10 year or so “paint-‘n-powder” facility update project.  The renovated facility must be fully compliant with all codes, current energy standards, technology standards, etc.  Whatever we would expect to see in a new facility is expected to be in the renovated facility, and for less cost.

Here is a link to one of our web pages.  From this page you can access specific pages to a great deal of information regarding school construction grants, including eligible and ineligible costs.

Feel free to call me at (860) 713-6467 if you have any questions.

David Wedge, Chief
Bureau of School Facilities
Connecticut State Department of Education



p.s.  Here are the statutory references to a “Renovation”.  10-282(18) is the formal definition and 10-286(8) outlines the potential benefit of such a classification.  I have also extracted from our web information the guidelines for qualifying a project as a renovation.


10-282(18) "Renovation" means a school building project to totally refurbish an existing building (A) which results in the renovated facility taking on a useful life comparable to that of a new facility and which will cost less than building a new facility as determined by the department, provided the school district may submit a feasibility study and cost analysis of the project prepared by an independent licensed architect to the department prior to final plan approval, (B) which was not renovated in accordance with this subdivision during the twenty-year period ending on the date of application, and (C) of which not less than seventy-five per cent of the facility to be renovated is at least thirty years old;
 
10-286(8) In the case of a renovation project for which an application is made on or after July 1, 1995, the eligible percentage as determined in subsection (b) of section 10-285a, multiplied by the eligible costs as determined by the commissioner, provided the project may be exempt from the standard space specifications, and otherwise ineligible repairs and replacements may be considered eligible for reimbursement as part of such a project, if information is provided acceptable to the commissioner documenting the need for such work and the cost savings to the state and the school district of such renovation project in comparison to alternative construction options;

SCHOOL CONSTRUCTION PROJECTS FOR STATUS AS
RENOVATIONS AS DEFINED IN C.G.S. 10-282

1.      The applicant must make written application for such status.
2.      The applicant must have gone through a formal process of evaluating the proposed project.   Professional estimates must be available to document that significant cost savings will result.
3.      The entire facility must be brought into 100 percent compliance with all applicable codes (including handicapped accessibility) when this renovation project is complete.  Partial renovations of an entire facility or complete renovations of a wing of a facility do not qualify.
4.      The renovation must incorporate education technology capability throughout the facility, as recommended in the Guidelines for Technology Infrastructure in Connecticut Schools.
5.      It must be determined by a structural engineer that the structural integrity of the original building has not been compromised and is adequate to provide for continued occupancy for a period of time comparable to that of a new facility.
6.      A detailed report on all existing building systems must be provided, including HVAC and electrical systems, water, roofing, lighting, plumbing, energy monitoring, communications and security systems.  Professional opinions must be provided that all systems will have a useful life of at least 20 years following the construction project.
7.      All new and replacement windows must be energy efficient.
8.      The site of the existing facility must be central to the area served and adequate to provide the educational programs offered.
9.      Any other analysis deemed necessary by the Department to properly evaluate the request must be provided.

Prior to pursuing requirements 3 through 9, districts are strongly advised to submit documentation in support of Item 2.  Failure to receive SDE approval for Item 2 will negate any need to pursue Items 3 through 9.