Overview
A Feasibility Study Agreement (“FSA”) is executed by the MSBA and the city, town, regional school district, or independent agricultural and technical school (“District”) following the completion of all Eligibility Period deliverables. It is the first of three legal agreements that the MSBA enters with a District throughout the life of a proposed Core Program 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 the MSBA Board of Directors votes to invite the District into Feasibility Study for the District to reach Project, Scope and Budget approval, authorized by the MSBA Board of Directors. By the 913-day deadline, all requirements of the Feasibility Study and Schematic Design phases must be complete.
Prior to executing the FSA, the District will work with the MSBA to complete the following:
- District designation of a “Notice Person”. This individual will be contacted by the MSBA if there are questions about the FSA.
- When prompted by the assigned Project Coordinator, the District will complete one of the three Exhibits that accompany the FSA:
- Exhibit A – Budget: The FSA budget, based on the total amount secured for Feasibility Study and Schematic Design funds, consists of four line items: 1) Owner’s Project Manager 2) Designer 3) Environmental and Site Testing and 4) Other.
The MSBA assembles two of three Exhibits that accompany the FSA:
- 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 proposed project is the base percentage rate for a district and does not include incentive points. The base reimbursement rate is calculated each calendar year by using three economic indicators.
Once the information above is assembled, the MSBA will issue the FSA and Exhibits A-C to the District for signature. Also included with the FSA is a “Certification of Legal Counsel”, which is a standard MSBA document that 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.
Upon invitation to Feasibility Study by the MSBA Board of Directors, the FSA is signed by the MSBA’s Executive Director and returned electronically to the District. Once fully executed, the next step is for the District to submit a Pro-Pay 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 of eligible Feasibility Study and Schematic Design costs.
