Overview
A Feasibility Study Agreement (“FSA”) is executed by the MSBA and the City, Town, or Regional School District (“District”) following the completion of all Eligibility Period deliverables. It is the first of three legal agreements that the MSBA enters into with a District throughout the life of a proposed project. It is a standard funding agreement that establishes a process and the parameters by which the District can be reimbursed for the eligible expenses incurred during the Feasibility Study and Schematic Design phases of the MSBA grant process. The FSA sets a 913-day deadline from the date on which the MSBA Board of Directors votes to invite the District into Feasibility Study for the District to reach Project, Scope and Budget approval by the MSBA Board of Directors. By this deadline, all the requirements of the Feasibility Study and Schematic Design phases must be completed.
Prior to executing the FSA, the District will work with the MSBA to complete two items. The first item the District will provide is a “Notice Person.” The “Notice Person” is the person who the MSBA will contact about the agreement should there be need for additional discussion. The MSBA will also work with the District to craft three exhibits for the FSA. These exhibits include:
- Exhibit A – Budget: The FSA budget consists of four line items: Owner’s Project Manager, Designer, Environmental and Site Testing, and Other. The District will complete Exhibit A when prompted by their assigned Project Coordinator, based on the total amount of Feasibility Study/Schematic Design funding appropriated by the District.
- Exhibit B – Scope: The FSA scope outlines the requirements associated with Module 3 and Module 4, as well as the proposed project’s design or study enrollment options.
- Exhibit C – Reimbursement Rate: The FSA reimbursement rate for a project is the base percentage rate for a district and does not include any incentive points. The base reimbursement rate is calculated each calendar year by using three economic indicators.
MSBA Reimbursement Rate Calculation
Following the completion of the exhibits, the MSBA will issue the FSA to the District for signature. The MSBA will also include a “Certification of Legal Counsel”, which is a standard MSBA document that is provided to a District by the MSBA. The Certification of Legal Counsel requires a District’s legal counsel to certify which local public official or governmental body (the “Local Governing Body”) has the full legal authority to execute the FSA on behalf of a District and bind a District to its terms. The MSBA suggests reviewing the FSA with local counsel prior to seeking the signature of the authorized governmental officer or governmental body signing the FSA.
Upon invitation into Feasibility Study by the MSBA’s Board of Directors, the FSA is signed by the MSBA’s Executive Director and returned to the District. After the FSA is fully-executed, the next step is for the District to submit a System Access Request form to enter the FSA budget into the MSBA’s Pro-Pay system so that the District can begin submitting requests to the MSBA for reimbursement for eligible feasibility study and schematic design costs. To get access to this (or any other MSBA System) after an invitation into Feasibility Study, District users should complete an MSBA ProPay System Access Request Form for District/OPM User.
