CALIFORNIA’SCOALITIONfor ADEQUATESCHOOL HOUSING

NEW CONSTRUCTION AND MODERNIZATION ELIGIBILITY AND GRANT DETERMINATION

Friday, July 24, 2009Airport Marriott

Ontario, CA

WELCOME AND INTRODUCTIONS

Kathy TannerSan Marcos USD

New Construction and New Construction and Modernization Modernization

Eligibility and Grant Eligibility and Grant DeterminationDetermination

C.A.S.H. WorkshopC.A.S.H. Workshop

July 21, 2009July 21, 2009

9:00 a.m. – 1:00 p.m.9:00 a.m. – 1:00 p.m.

Kathy TannerKathy TannerExecutive Director of Facilities Planning and Executive Director of Facilities Planning and DevelopmentDevelopmentSan Marcos Unified School DistrictSan Marcos Unified School District

Andrea SullivanAndrea SullivanDirector, Facilities Planning and Maintenance and Director, Facilities Planning and Maintenance and OperationsOperationsOrange County Department of EducationOrange County Department of EducationCheryl RomeroCheryl RomeroSenior ConsultantSenior ConsultantSchool Facility ConsultantsSchool Facility Consultants

Introduction to the Introduction to the School Facility ProgramSchool Facility Program

Overview: Tips and Overview: Tips and ToolsTools

EligibilityEligibility FundingFunding Program AccountabilityProgram Accountability What’s NewWhat’s New

Established in 1998 with the passage of Established in 1998 with the passage of SB 50 by the legislature and Prop 1A by SB 50 by the legislature and Prop 1A by the voters.the voters.

Funded exclusively by Statewide Bond Funded exclusively by Statewide Bond Measures:Measures:

November 1998 –November 1998 – Prop 1A $6.7 Prop 1A $6.7 billionbillionNovember 2002 –November 2002 – Prop 47 $11.4 Prop 47 $11.4 billionbillionMarch 2004 – March 2004 – Prop 55 $9.8 Prop 55 $9.8 billionbillionNovember 2006 – November 2006 – Prop 1D $10.4 Prop 1D $10.4 billionbillion2010 – 2010 – Stay Tuned!Stay Tuned!

School Facility ProgramSchool Facility Program

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Determining Determining New Construction Eligibility:New Construction Eligibility:

Compares existing capacity to existing Compares existing capacity to existing and anticipated enrollment (Complete and anticipated enrollment (Complete Forms SAB 50-01, 50-02, 50-03)Forms SAB 50-01, 50-02, 50-03)

Enrollment projections using weighted Enrollment projections using weighted cohort survival methodologycohort survival methodology

Can supplement enrollment projection Can supplement enrollment projection with approved tract maps –new dwelling with approved tract maps –new dwelling unitsunits

Must be re-justified annuallyMust be re-justified annually

Enrollment Certification/ Enrollment Certification/ Projection (Form SAB 50-01)Projection (Form SAB 50-01)

This form is used to collect information This form is used to collect information about the district’s current and historical about the district’s current and historical enrollment and to project that data five enrollment and to project that data five years into the futureyears into the future

Alternate methodology can be used by Alternate methodology can be used by districts under AB 1014districts under AB 1014

Report New Dwelling UnitsReport New Dwelling Units

Enrollment Certification/ Enrollment Certification/ Projection Projection (continued)(continued)

District wide or HSAADistrict wide or HSAA Four years of CBEDS dataFour years of CBEDS data Break-out Special Day Class & Break-out Special Day Class &

Continuing High Students from CBEDSContinuing High Students from CBEDS Augment the enrollment projection Augment the enrollment projection

based on number of pupils that will based on number of pupils that will reside in dwelling units in approved tract reside in dwelling units in approved tract maps or valid tentative mapsmaps or valid tentative maps

Form

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Existing School Building Existing School Building Capacity (Form SAB 50-02)Capacity (Form SAB 50-02)

Inventory of all spaces that provide pupil Inventory of all spaces that provide pupil instructioninstruction

Provide diagram and Site Analysis Provide diagram and Site Analysis Worksheet(s) for all facilities, site by siteWorksheet(s) for all facilities, site by site

Capacity is the total number of teaching Capacity is the total number of teaching stations multiplied by the State pupil stations multiplied by the State pupil loading standard: loading standard: •25 for K-6, 27 for 7-12, 13 for non-25 for K-6, 27 for 7-12, 13 for non-

severe, and 9 for severe classroomssevere, and 9 for severe classrooms

Existing School Building Existing School Building CapacityCapacity

(continued)(continued)Adjust capacity for the following:Adjust capacity for the following: Eligible classroom exclusionsEligible classroom exclusions Substantial Enrollment Requirement Substantial Enrollment Requirement

(SER or MTYRE Hit)(SER or MTYRE Hit)•Eliminated by AB16 for High School Eliminated by AB16 for High School

DistrictsDistricts

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Eligibility Determination Eligibility Determination (Form SAB 50-03)(Form SAB 50-03)

Compares the information from the Compares the information from the SAB 50-01 and 50-02 (first two SAB 50-01 and 50-02 (first two forms) to determine if the district is forms) to determine if the district is eligible for new construction grantseligible for new construction grants

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Is the new construction eligibility Is the new construction eligibility application complete?application complete? If yes, then OPSC processesIf yes, then OPSC processes

•OPSC will conduct a site visit to verify OPSC will conduct a site visit to verify informationinformation

If no, then OPSC requests needed If no, then OPSC requests needed informationinformation•24 hour letter, 15 day letter, 4 day 24 hour letter, 15 day letter, 4 day

letterletter Unable to comply? Application may be Unable to comply? Application may be

returned unprocessedreturned unprocessed

New Construction EligibilityNew Construction EligibilityApplication ProcessApplication Process

Already Established Eligibility?Already Established Eligibility? Update starting November 1Update starting November 1stst each each

year for eligibility that can be accessed year for eligibility that can be accessed until October 31until October 31stst of the next year of the next year

Be aware of any capacity adjustments Be aware of any capacity adjustments required in Regulationsrequired in Regulations•Section 1859.51Section 1859.51•Locally Funded ProjectsLocally Funded Projects•150% Rule Adjustments150% Rule Adjustments•State Relocatables that are State Relocatables that are

purchasedpurchased

New Construction EligibilityNew Construction EligibilityUpdates/TimingUpdates/Timing

Determining Determining Modernization EligibilityModernization Eligibility

Applications are site specificApplications are site specific Eligibility is generated by:Eligibility is generated by:

•Permanent buildings that are at Permanent buildings that are at least 25 years oldleast 25 years old

•Relocatable buildings that are at Relocatable buildings that are at least 20 years oldleast 20 years old

Date of building is determined by Date of building is determined by DSA approval date plus 12 monthsDSA approval date plus 12 months

Building must not have been Building must not have been modernized with state funds in last 25 modernized with state funds in last 25 years, if permanent, or 20 years, if years, if permanent, or 20 years, if portableportable

Must have pupils assigned to the siteMust have pupils assigned to the site Once established, eligibility is locked Once established, eligibility is locked

in to protect from enrollment declines in to protect from enrollment declines in future years. Eligibility can increase in future years. Eligibility can increase if enrollment increases or if additional if enrollment increases or if additional facilities ‘turn over’facilities ‘turn over’

Determining Modernization Determining Modernization Eligibility Eligibility (continued)(continued)

Three Ways to Calculate Modernization Three Ways to Calculate Modernization EligibilityEligibility Number of eligible teaching stations Number of eligible teaching stations

multiplied by student loading factor or multiplied by student loading factor or CBEDS, whichever is less (Option A)CBEDS, whichever is less (Option A)

Percentage of eligible teaching stations Percentage of eligible teaching stations multiplied by CBEDS enrollment (Option multiplied by CBEDS enrollment (Option B – Classrooms)B – Classrooms)

Percentage of eligible square footage Percentage of eligible square footage multiplied by CBEDS enrollment (Option multiplied by CBEDS enrollment (Option B – Square Footage)B – Square Footage)

Determining Modernization Determining Modernization Eligibility Eligibility (continued)(continued)

Form

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Is modernization eligibility application Is modernization eligibility application complete?complete? If yes, then OPSC processesIf yes, then OPSC processes

•OPSC will conduct a site visit to verify OPSC will conduct a site visit to verify informationinformation

If no, then OPSC requests needed If no, then OPSC requests needed informationinformation•24 hour letter, 15 day letter, 4 day letter24 hour letter, 15 day letter, 4 day letter

Unable to comply? Application may be Unable to comply? Application may be returned unprocessedreturned unprocessed

Modernization EligibilityModernization EligibilityApplication ProcessApplication Process

QuestionsQuestions??

Funding RequestsFunding Requests

The School Facility Program funds projects The School Facility Program funds projects that are essentially through the design that are essentially through the design phase and are ready to begin construction, phase and are ready to begin construction, with the exception of:with the exception of: Financial Hardship districts (including Financial Hardship districts (including

COEs)COEs) Charter School Program Charter School Program Joint – Use Projects (Type II)Joint – Use Projects (Type II) Career Technical EducationCareer Technical Education

Funding Request Overview:Funding Request Overview: To Apply for New Construction and Modernization To Apply for New Construction and Modernization

Funding you must have: Funding you must have: School Facility Program EligibilitySchool Facility Program Eligibility CDE Approval Letter (plan and site), which may CDE Approval Letter (plan and site), which may

require additional approvals, such as:require additional approvals, such as:•Department of Toxic Substances Control Department of Toxic Substances Control

(DTSC)(DTSC)•CEQA complianceCEQA compliance•Department of Transportation, Division of Department of Transportation, Division of

AeronauticsAeronautics•Hazardous Pipeline Assessment Hazardous Pipeline Assessment

DSA Approved Plans, Specs and Approval LetterDSA Approved Plans, Specs and Approval Letter

Need DSA Approval Need DSA Approval Letter prior to signing Letter prior to signing construction construction contracts!contracts!

Funding Steps:Funding Steps: District submits application for funding District submits application for funding

(SAB 50-04)(SAB 50-04) OPSC reviews the packageOPSC reviews the package SAB approves the projectSAB approves the project District requests a fund release (SAB 50-District requests a fund release (SAB 50-

05)05) Spend the moneySpend the money Substantial ProgressSubstantial Progress Report the expenditures (SAB 50-06)Report the expenditures (SAB 50-06) OPSC auditsOPSC audits PIW (Project Information Worksheet)PIW (Project Information Worksheet)

Application for Funding Application for Funding (SAB 50-04)(SAB 50-04)

This form provides OPSC with project This form provides OPSC with project information to determine the new information to determine the new construction grant including grade level, construction grant including grade level, number of pupils, need for site number of pupils, need for site acquisition and additional grants.acquisition and additional grants.

A Complete ApplicationA Complete Application

In addition to an SAB 50-04, In addition to an SAB 50-04, Application for Application for FundingFunding::

DSA approved plans, specifications, and letterDSA approved plans, specifications, and letter Local agency approvals of Site Development PlansLocal agency approvals of Site Development Plans Site Development Worksheet for Additional GrantsSite Development Worksheet for Additional Grants CDE Plan ApprovalCDE Plan Approval CDE Site ApprovalCDE Site Approval Career Technical Education Certification Career Technical Education Certification Contract Dates, Notice to ProceedContract Dates, Notice to Proceed Construction Delivery MethodConstruction Delivery Method

Required DocumentsRequired Documents

New Construction FundingNew Construction Funding

Grant Amounts as of the February 25, Grant Amounts as of the February 25, 2009 SAB:2009 SAB:

•$9,369 Elementary$9,369 Elementary

•$9,909 Middle$9,909 Middle

•$12,607 High$12,607 High

•$17,605 SDC Non-Severe$17,605 SDC Non-Severe

•$26,324 SDC Severe$26,324 SDC Severe

Site AcquisitionSite Acquisition Site DevelopmentSite Development Geographic Geographic

LocationLocation Urban, Security, Urban, Security,

Impacted SiteImpacted Site Fire Code Fire Code

RequirementsRequirements High PerformanceHigh Performance Special Education Special Education

TherapyTherapy

New ConstructionNew ConstructionSupplemental GrantsSupplemental Grants

Multi-level Multi-level constructionconstruction

Project Assistance Project Assistance (less than 2,500 (less than 2,500 ADA)ADA)

Replacement Replacement w/multi-story w/multi-story constructionconstruction

New School New School ProjectProject

Small Size Project Small Size Project (less than 101 or (less than 101 or 200 grants)200 grants)

Site Development Additional GrantsSite Development Additional Grants•Money is frequently left on the Money is frequently left on the

table by missing eligible site table by missing eligible site development costsdevelopment costs

•Consider utilizing the services of a Consider utilizing the services of a consultant that has extensive consultant that has extensive knowledge in cost estimatingknowledge in cost estimating

•Meet with PVT (Plan Verification Meet with PVT (Plan Verification Team) staff early to identify Team) staff early to identify “hidden” eligible items“hidden” eligible items

Commonly Missed Commonly Missed OpportunitiesOpportunities

Site AcquisitionSite Acquisition•Purchasing more land than CDE Purchasing more land than CDE

recommends for the master plan recommends for the master plan capacity of the site…capacity of the site…

OPSC prorates the service site, OPSC prorates the service site, off-site, and general site off-site, and general site development grants and site development grants and site acquisition funding by the acquisition funding by the amount of the “excess” site amount of the “excess” site acreageacreage

Commonly Missed Commonly Missed OpportunitiesOpportunities(continued)(continued)

Must submit your Must submit your funding application funding application to the OPSC prior to to the OPSC prior to occupancy.occupancy.

Modernization FundingModernization Funding

Grant Amounts as of the February 25, Grant Amounts as of the February 25, 2009 SAB:2009 SAB:

•$3,568 Elementary$3,568 Elementary

•$3,774 Middle$3,774 Middle

•$4,940 High$4,940 High

•$7,605 SDC Non-Severe$7,605 SDC Non-Severe

•$11,366 SDC Severe$11,366 SDC Severe

50+ Year Old Buildings50+ Year Old Buildings Site Utilities (only for 50+ Year Old Site Utilities (only for 50+ Year Old

Buildings)Buildings) Fire AlarmFire Alarm ADA/Fire Code and/or ElevatorsADA/Fire Code and/or Elevators Urban, Security, Impacted SiteUrban, Security, Impacted Site GeographicGeographic High PerformanceHigh Performance Project Assistance (under 2500 ADA)Project Assistance (under 2500 ADA) Small Size Project (less than 101 or 200 Small Size Project (less than 101 or 200

grants)grants)

Supplemental GrantsSupplemental Grants

Minimum Grant RequestMinimum Grant Request•A Project must request a minimum of A Project must request a minimum of

101 grants or ALL of its eligibility to 101 grants or ALL of its eligibility to access fundingaccess funding

•For 2009, this will mean a minimum For 2009, this will mean a minimum construction value of more than construction value of more than $360,368 for a K-6 project (assuming 101 $360,368 for a K-6 project (assuming 101 K-6 grants) and more for Middle and HighK-6 grants) and more for Middle and High

•Due to this restriction and local matching Due to this restriction and local matching issues, some districts have had to leave issues, some districts have had to leave augmentation funds behindaugmentation funds behind

Common Modernization Common Modernization IssuesIssues

Review eligibility EVERY YEAR!Review eligibility EVERY YEAR!•Enrollment changes / Facility ‘turn-Enrollment changes / Facility ‘turn-

over’over’ Evaluate switching ‘Options’ (e.g. Evaluate switching ‘Options’ (e.g.

from Option A to Option B)from Option A to Option B) Time projects to utilize 50+ Year Old Time projects to utilize 50+ Year Old

GrantsGrants Reimbursement ProjectsReimbursement Projects

Common Modernization Common Modernization IssuesIssues

(continued)(continued)

QuestionsQuestions??

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Program AccountabilityProgram Accountability Progress Report and AuditProgress Report and Audit

18 months to successfully bid and award a 18 months to successfully bid and award a project from the time the SAB funds your project from the time the SAB funds your Application for Funding (Form SAB 50-04)Application for Funding (Form SAB 50-04)

18 months from the release of funds to show 18 months from the release of funds to show substantial progress on the project by substantial progress on the project by demonstrating at least one of the following:demonstrating at least one of the following:•Complete 75% of Site Development work Complete 75% of Site Development work

necessary to complete constructionnecessary to complete construction•Contract for 90% of the construction Contract for 90% of the construction

activitiesactivities•Complete 50% of the construction Complete 50% of the construction

activitiesactivities

Program AccountabilityProgram Accountability(continued)(continued)

Project must be complete or all contracts Project must be complete or all contracts signed within 3 years for an elementary signed within 3 years for an elementary school and 4 years for a middle school or school and 4 years for a middle school or high school project from the date of the high school project from the date of the last project fund release.last project fund release.

All change orders must be DSA approved All change orders must be DSA approved prior to the district’s final expenditure prior to the district’s final expenditure report being filed with OPSC.report being filed with OPSC.

The AuditThe Audit

Post-occupancy reviews may be performed Post-occupancy reviews may be performed in conjunction with the DSA and the CDE in conjunction with the DSA and the CDE to verify the district performed the work as to verify the district performed the work as requested in the requested in the Application for Funding Application for Funding (Form SAB 50-04). (Form SAB 50-04).

For New Construction projects, the number For New Construction projects, the number of classrooms built will be compared to the of classrooms built will be compared to the number of classrooms requested on the number of classrooms requested on the Form SAB 50-04.Form SAB 50-04.

The Audit The Audit (continued)(continued)

For modernization projects, the For modernization projects, the architect’s cost will be reviewed and architect’s cost will be reviewed and compared to actual work done in the compared to actual work done in the modernization of particular facilities.modernization of particular facilities.

The Audit The Audit (continued)(continued)

Verification of Certifications on Forms SAB Verification of Certifications on Forms SAB 50-04 and 50-0550-04 and 50-05

Matching share was depositedMatching share was deposited Minimum amount deposited into the Minimum amount deposited into the

Routine Restricted Maintenance AccountRoutine Restricted Maintenance Account District followed Public Contract CodeDistrict followed Public Contract Code DVBE requirementsDVBE requirements District used Qualifications Appraisal District used Qualifications Appraisal

standards (Government Code 4526)standards (Government Code 4526) Labor Compliance ProgramLabor Compliance Program Matching funds either expended, Matching funds either expended,

deposited or will be expended prior to NOCdeposited or will be expended prior to NOC

Status of State Money and Status of State Money and ProgramsPrograms

Regulation ChangesRegulation Changes Inactive ApportionmentsInactive Apportionments ““Stopping the Clock”Stopping the Clock”

•18-month Fund Release 18-month Fund Release DeadlinesDeadlines

•12-month Final Design Deadlines12-month Final Design Deadlines Unfunded ApprovalsUnfunded Approvals PMIB-Funds FrozenPMIB-Funds Frozen

Kathy TannerKathy Tanner kathy.tanner@smusd.orgkathy.tanner@smusd.org 760 290-2650760 290-2650

Andrea SullivanAndrea Sullivan asullivan@ocde.usasullivan@ocde.us 714 966-4325714 966-4325

Cheryl RomeroCheryl Romero cheryl@s-f-c.orgcheryl@s-f-c.org 916 441-5063916 441-5063

Contact InformationContact Information

QuestionsQuestions??