FCIP Procedures

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Phase One - Project Identification And Approval

1. Project identification. This can be done by the agency or with Program Administrator assistance if requested. Another way is to use the FCIP master agreement and partner with one of the pre-approved Energy Service Companies.
2. Project economic evaluation. This can be performed by agency staff, their on-call engineers, the program administrator or use the ESCO.
3. If project complies with program guidelines, complete Project Funding Request form. Attach supporting engineering economic evaluation documents.
4. Project Funding Request reviewed/approved by agency head or designee.
5. Project Funding Request reviewed/approved by Program Administrator.
6. State Agencies Only: Project Funding Requests of $500,000 or more presented to the Joint Committee on Building Construction by Program Administrator for approval. Project Funding Requests less than $500,000 reported to Joint Committee on Building Construction by Program Administrator (JBC approval not required).

Phase Two - Project Financing And Implementation

1. Approved Project Funding Request for state agencies submitted to Department of Administration Division of Accounts & Reports by Program Administrator or to KDFA for other than state agencies
2. Accounts & Reports / KDFA adds administrative fees and notifies financing institution to initiate Lease-Purchase process.
3. Agency receives letter of approval with amortization schedule from financing institution.
4. Agency Head or designee signs Lease-Purchase Agreement.
5. Begin the procurement process appropriate for the project in accordance with applicable statutes. This can range from directly purchasing supplies on state contract if project to be performed by facility staff to beginning design documents on complex projects. If the project is being performed with an ESCO partner the procurement process is streamlined. The ESCO acts as designer-builder for the agency/Lessee.
6. As project construction gets underway, invoices for services and materials funded by the Program are submitted by agency to FCIP Manager who will verify accuracy and forward to appropriate financing management agency/institution for payment.
7. Weekly project construction meetings are monitored by FCIP Admistrator/staff.
8. Periodic and final construction inspections will be performed by the Program Administrator and/or design consultants.
9. Final project certificates of completion are issued by FCIP Admistrator.

Phase Three - Lease Re-Payment And Follow-Up

1. For projects which the Lessee has elected to have capitalized interest included in the financed amount, re-payment of the lease begins in accordance with an amortization schedule included in the lease documents . The construction period commences on the date of the signing of the lease agreement. The lease payments are made by the Lessee to the appropriate financing management agency (Accounts & Reports or KDFA) on a schedule agreed to by both parties.
2. For projects which the Lessee has elected to have capitalized interest not included in the financed amount, interest re-payment to the program begins in accordance with a schedule established in the lease documents. The lease interest payments are made by the Lessee to the appropriate finanging agency (Accounts & Reports or KDFA) on a schedule agreed to by both parties.