Alpena School District Academic Facilities Partnership Program  ARKANSAS DIVISION OF PUBLIC SCHOOL ACADEMIC FACILITIES AND TRANSPORTATION May 14, 2019

“Adequate and Equitable” Lake View Law Suit “Adequate and Equitable”

A.C.A. § 6-21-802 Legislative Intent In order to ensure that substantially equal access to adequate educational facilities and educational equipment is provided for all public school students in Arkansas, the General Assembly finds that a division of public school academic facilities and transportation should be established under the direct supervision of the Commission for Arkansas Public School Academic Facilities and Transportation. There is created the Division of Public School Academic Facilities and Transportation, which shall operate under the supervision of the commission.

Statute and Rules Master Plan Academic Facilities Master Plan Program (A.C.A. §6-21-806) Rules Governing the Facilities Master Plan Partnership Program Academic Facilities Partnership Program (A.C.A. §6-20-2507) Rules Governing the Academic Facilities Partnership Program Facilities Distress Academic Facilities Distress Program (A.C.A. §6-21-811) Rules Governing the Academic Facilities Distress Program

Update Preliminary Master Plan Master Plan Tabs Master Plan Update Preliminary Master Plan Feb 1 Odd Year Master Plan Feb 1 Even Year TAB 1 District Information X X TAB 2 School Board Resolution X TAB 3 Public Hearing X TAB 4 District Enrollment Projections X X TAB 5 Community & District Profile (Optional) X TAB 6 Narrative Analysis X X TAB 7 Insurance X X TAB 8 Identification of Access Issues X TAB 9 Custodial Plan X X TAB 10 Maintenance Plan X X TAB 11 Preventative Maintenance Plan X X TAB 12 Projected Replacement Schedule for Life Cycle Systems X X TAB 13 Committed Projects X X TAB 14 Planned New Construction Projects X X TAB 15 Annual Expenditures for Maintenance/Repair & Capital Outlay X

TAB 6 - Narrative Analysis Master Plan TAB 6 - Narrative Analysis Section 4.03.10 of the Rules Governing the Six (6) Year Facilities Master Plan states that Master Plans shall include a “narrative analysis of facility needs and response plans to address the overall district strategy of providing suitable, adequate and maintained public school facilities”. Experience has shown that the key component of the Master Plan is the district’s narrative analysis (Tab 6). With a good detailed narrative that explains the district’s needs and strategies, the division is best able to assist the school district.

Other Features of Master Plan Division to develop a state-wide academic building value list All academic buildings depreciated 2% per year (50-year life) School districts must address all academic buildings with 0% value in Master Plan Narrative Division to develop a state-wide academic building value list All academic buildings depreciated 2% per year (50-year life) School districts must address all academic buildings with 0% value in Master Plan

Partnership Program Funding Prioritization Process 2015-2017, 2017-2019 2019-2021 FIRST PRIORITY Project Type: WARM, SAFE, DRY (System Replacement) SPACE (Growth, Suitability) $10M per Year   Ranking Factors: Wealth Index District Student Enrollment (3rd Quarter ADM) Previous 10-Year Enrollment Growth % SECOND PRIORITY WARM, SAFE, DRY (Space Replacement or Total Renovation) Campus Value Ranking THIRD PRIORITY

Program of Requirements (POR) 9

Academic Facilities Wealth Index School district share of project Complex computation of value of one mill per student Each district compared to the 95th percentile district Wealth Index goes up (becomes wealthier) if you lose students or gain assessment Wealth Index goes down (becomes poorer) if you gain students or lose assessment Alpena School District Wealth Index about 35. (State share about 65%)

Partnership Program – State Financial Participation Determination Qualified project scope in square feet (e.g. 10,000 SF) Project cost factor (e.g. $130/SF) Qualifying Project Cost (QPC) Scope x cost factor10,000 SF x $130/SF = $1,300,000 State Financial Participation = QPC x (1 minus Wealth Index) If Wealth Index = 0.350 State Financial Participation = $1,300,000 x 0.65 = $845,000

Partnership Program Project Timelines After Commission approval and funding 60 Days Sign project agreement 18 Months Start construction (signed construction contract) 4 Years Complete construction 12

Partnership Program Timelines 2017-2019 Projects February 1, 2015 District submitted Preliminary Master Plan August 7, 2015 District and Division Master Plan Consultation Meeting February 1, 2016 District submitted Master Plan March 1, 2016 District submitted Partnership Application April 27, 2017 Commission funded Year-One projects after Legislative Session June 26, 2017 Date signed Project Agreement executed October 28, 2019 Date District must start construction April 27, 2021 Construction Completion Deadline

Facilities Distress Rule Section 4.01.1 4.01.1 Any act or violation determined by the Division to jeopardize any academic facility used by a public school or school district, including, but not limited to: Material failure to properly maintain academic facilities in accordance with state law and Rules adopted by the Commission; Material violation of local, state or federal fire, health, or safety code provisions or laws; Material violation of applicable building code provisions or laws; Material failure to provide timely and accurate facilities master plans to the Division; Material failure to comply with state law governing purchasing or bid requirements or school construction related laws or rules in relation to academic facilities projects; Material default on any school district debt obligation; or Material failure to plan or progress satisfactorily toward accomplishing the priorities established by the Division and the approved school district master plan.

Possible Facilities Distress Sanctions Replace superintendent Remove school board State take over Require district to cease all expenditures above adequate education and place funds in facilities escrow account State board may consolidate, annex, or reconstitute the district

Alpena School District Funding Received How much of the approximately $1.2 Billion of State Partnership Program funds has Alpena School District received? $633,226.75 New Facility Replace Home Ec Building #2000-0501-001 2006 Transitional $32,570.59 HS Combination Projects #1000-0501-134 Immediate Repair $379,822.00 ES 4-Classroom Addition #0607-0501-001 Partnership $2,545,734.34 New High School #1718-0501-001

Alpena School District Existing Facilities

Alpena School District Enrollment

Academic Facilities Extraordinary Circumstances Program Never Funded by Legislature At a minimum, eligibility criteria for the Academic Facilities Extraordinary Circumstances Program shall address School districts with declining enrollment School districts with rapid enrollment growth School districts with insufficient bonding capacity School districts with low assessed-property valuations School districts at or above the ninety-fifth percentile on the academic facilities wealth index Any other circumstance deemed extraordinary by the division At a minimum, the application process for the Academic Facilities Extraordinary Circumstances Program shall require a school district to provide the division with evidence of Estimated cost of the project Amount of local resources available to contribute to the project Amount and availability of funds from school district fund balances Amount and availability of other public or private assistance Effort made by the school district and the local community to develop and provide local resources

Alpena School District Project Scope, Millage, Construction District reported in Master Plan a need for new High School District requested the Division inspect current High School Division agreed to District’s need for new academic facilities Law requires construction must start no later than 18 months from funding District and State agreed to need for new facilities Project funding by April 27, 2017

Alpena School District Division Review of Existing High School On-site inspection of facilities (February 25, 2016) Review of building systems and sub-systems to assess remaining life and potential need for replacement of sub-systems Compute Facility Condition Index (FCI) for building FCI = Cost of Renovations/Cost of New Facility Industry accepted practice – Prudent use of funds to replace facility when FCI equals or exceeds 65%

Alpena School District New High School Project Scope #1718-0501-001 Build New High School Division Review Approved Suitability 25,934 SF

Project Status New High School Project Scope #1718-0501-001 Cost Factor $158.65/SF Qualifying Project Cost $3,902,807.66 Wealth Index .34771 State share about 65% State Financial Participation $2,545,734.34

Alpena School District Millage Elections & Project Timeline Dates District submitted Master Plan February 1, 2016 District submitted Partnership Application March 1, 2016 Commission funds Year-One projects after Legislative Session April 27, 2017 Sign Project Agreement June 26, 2017 Start Construction October 28, 2019 Complete Construction April 27, 2021

Alpena School District Academic Facilities Partnership Program  ARKANSAS DIVISION OF PUBLIC SCHOOL ACADEMIC FACILITIES AND TRANSPORTATION May 14, 2019