1 How to Apply for School Facilities Funding Modernization Eligibility & Funding Overview

2 Topics Modernization Program Overview Funding Process Establishing Modernization Eligibility Submitting a Modernization Funding Application Time Sensitive Steps SFP Tips Supplemental Grants Resources

3 Can I Look Up My District’s Eligibility and Past Modernization Funding Received? Demonstration of OPSC Project TrackerOPSC Project Tracker Overview

4 What Does the Program Fund? Modernization grants are limited to expenditures on the site that generated the eligibility. Replacement building of like kind. New building area required by the Americans with Disabilities Act (ADA) or by the DSA handicapped access requirements. Replacement, repair, or additions to existing site development. Site development items required by the ADA or by the DSA handicapped access requirements. Overview SFP Regulation Sections ED Code Sections , , & (c)

5 What Does the Program Fund? Furniture and equipment that lasts more than one year, is repaired rather than replaced at the cost of tagging and inventory is small % of the cost. The modernization grant can be used to fund a large variety of work at an eligible school as pursuant to EC Section Air conditioning, insulation, roof replacement, as well as the purchase of new furniture and equipment are just a few of the eligible expenditures of modernization grants. A district has the option to even use the grants to demolish and replace existing facilities of like kind. Overview SFP Regulation Sections ED Code Sections , , & (c)

6 Funding Process

7 OPSC Modernization Eligibility & Funding Process District submits application for eligibility determination to the OPSC. OPSC determines eligible pupil grants and makes recommendation to the SAB for approval SAB Approval District submits funding application including CDE and DSA approved plans to the OPSC.* OPSC determines eligible grants and makes recommendations to SAB for approval SAB Unfunded Approval As cash becomes available, Unfunded Approval is converted to Apportionment. Traditionally the District had 18 months from apportionment to request a fund release. In recent priority funding rounds, districts have had 90 days to submit a fund release. New cash management systems are being discussed. OPSC releases grant amount pending district match and construction contracts signed. Project Construction District submits substantial progress/expenditure reports. *Financial hardship districts can request advanced site and/or design funding. Funding Process

8 PRESENT Apportionment Unfunded Approval Fund Release Priorities In Funding (PIF) Apportionment/ Fund Release Bond Sale BEFORE FISCAL CRISIS (DEC 2008) Pooled Money Investment Board (PMIB) Loan Cash Availability Funding Process

9 Eligibility Determination Establishing eligibility is done once. “I f you’re not sure, check the OPSC Tracker” What is Modernization Eligibility? Measures (in “pupil grants”) districts’ ability to access funding to modernize school facilities. Determined by projected number of pupils housed in classrooms eligible for modernization based on loading standards. Established on a site specific basis. The age of a building begins 12 months after the plans for the building were approved by the DSA; or in the case of permanent or portable classrooms that were previously modernized with State funds, the 25/20 year period begins on the date of the previous SAB apportionment. SFP Regulation Sections & ED Code Sections , , , , , , , , , &

10 How Eligibility Translates Into $$$ Modernization Funding equals Pupil Grants Requested* (AKA “Base Grant”) plus Eligible Supplemental Grants plus Eligible Site Development Pupil grants requested are NOT capped by the pupils housed within the project. Modernization eligibility is capped by the number of pupils housed at a school site within eligible buildings. Pupil Grant Values maybe adjusted annually by the SAB. * Base Grant = Pupil Grants x Per Pupil Amount SFP Regulation Sections & to ED Code Sections (c), (a)(8), , , , , , , &

11 How Eligibility Translates Into $$$ Per-Pupil Grant Amounts ModernizationPer Pupil Grant Amount Effective 1/1/11 50 Year Per Pupil Grant Amount Effective 1/1/11 Elementary (K-6)$3,470$4,819 Middle (7-8)$3,671$5,098 High (9-12)$4,804$6,674 Non-Severe$7,396$10,272 Severe$11,054$15,360 SFP Regulation Sections & to ED Code Sections (c), (a)(8), , , , , , , &

12 To Establish Modernization Eligibility, the Form SAB is required. Establishing or updating modernization eligibility must be done prior to or concurrently with the funding application. Demonstration: How to Complete the Form SAB using the Eligibility Determination Form.  nprogramforms.aspx nprogramforms.aspx Enrollment Data:  Establishing Modernization Eligibility SFP Regulation Sections ED Code Sections , &

13 Gross Classroom Inventory For modernization eligibility, a Gross Classroom Inventory (“snapshot”) of the site is required. All classrooms owned or leased by the school district on the site generating eligibility are counted. All classrooms meeting the Education Code definition of a classroom are counted, and there are no exclusions when determining the modernization eligibility, such as for undersized classrooms as seen in new construction eligibility. For modernization eligibility, districts benefit from counting as many classrooms as possible. Anal_Wrksht_NC.pdf Anal_Wrksht_NC.pdf SFP Regulation Sections ED Code Sections , & Establishing Modernization Eligibility

14 Completing the Application for Funding (Form SAB 50-04) Demonstration: How to Complete the Form SAB using the Application for Funding Form. SFP Regulation Sections & to ED Code Sections (c), (a)(8), , , , , , , & Submitting a Modernization Funding Application

15 DSA Approval: Obtain DSA approval before letting construction contracts. DSA approval expires after 1 year - a renewed approval is required if approval has expired. CDE Approval: Obtain CDE site/plan approval before submitting a funding application. CDE Approval expires after 2 years. 60 Percent Commensurate: Architect Certification that the estimated/actual construction costs are greater than 60% of the State grant plus the District’s match (less site acquisition, planning, tests, inspection, furniture and equipment, and LCP costs). Labor Compliance Program A Labor Compliance Program (see LC 1770 through 1781) must be in place if project is funded with Prop 47 or Prop 55 funds. Submitting a Modernization Funding Application

16 Multiple Funding Sources: Projects with 2 or more project scopes that are funded with separate sources: (example, contains ineligible expenditures, or funded through more than one SFP program): Identify in writing both scopes of work Identify the source of funding for both, and; Indicate that the District will establish a separate expenditure record system to provide a clear project audit trail. Submit either separate or prorated cost estimates for verification of 60% commensurate. Submitting a Modernization Funding Application

17 Multiple Funding Sources: Create separate sub-funds to track both scopes of work, to ensure: State’s funds and district’s matching funds are attributed to correct portion of project; interest accrued from these sub-funds is accounted for; warrants are issued and expended from the correct project fund; savings is attributed towards the correct project Contracts, change orders, and payment applications should be pro-rated so the expenditures can be reconciled to each portion of the project. Submitting a Modernization Funding Application

18 Demo PlansConstruction Plans Like-Kind Replacement Examples

19 Like-Kind Replacement Examples Demo PlansConstruction Plans

20 Like-Kind Replacement: Like-Kind replacement means to replace building(s) that are of similar square footage. A district may replace a facility with another facility type (i.e., a classrooms for a library). Additional classrooms constructed within the replacement area will reduce the new construction baseline eligibility for the district; however, no eligibility will be adjusted for reduced number of classrooms. A district may replace portable space with permanent space; or vice-versa. (Continued) Submitting a Modernization Funding Application

21 Like-Kind Replacement (Continued): What if the replacement building area has an increase or a decrease from the original square footage? If the replacement facilities include an increase in square footage, the additional square footage must be funded exclusively from district funds outside the SFP project, beyond the district’s 40 percent matching share. If the replacement facilities include a decrease in square footage, the project will still be eligible for the Modernization funding provided the district does not displace a core facility (such as a multipurpose room, gym, etc). The district must not report the expenditures for the ineligible space on the Expenditure Report (Form SAB 50-06) that is submitted annually to the OPSC. Submitting a Modernization Funding Application

22 Time Sensitive Steps StepTiming Establish or update Eligibility for Enrollment Same Enrollment Year As Submittal of Application for Funding or prior to CDE Plan Approval DSA Approval Prior to Submitting Funding Application OPSC Financial Hardship ApprovalFunding Application must be Submitted Within 6 Months of FH Approval Written Confirmation from District’s Career Tech Advisory Committee Prior to Submittal of Funding Application Cost Estimate Prepared by Architect of Record Prior to Submitting Funding Application

23 Modernization Supplemental Grants SFP Regulation Sections ED Code Sections , , & Automatic Fire Alarm/Detection Purpose: To include a fire detection and alarm system. How to Qualify: Must include a fire detection and alarm system. How its calculated: (Fire alarm amount in CCI chart) (# pupil grants)

24 SFP Regulation Section ED Code Sections Project Assistance Purpose: To assist with the costs associated with the preparation and submission of SFP eligibility and funding documentation. How to Qualify: District-wide enrollment is less than 2,501 pupils. How its calculated: A flat amount that is adjusted annually by the SAB. Modernization Supplemental Grants

25 High Performance Incentive Grant Purpose: Increased costs associated with high performance attributes in schools, includes designs and materials that: Promote water efficiency, Maximize the use of natural lighting, Improve indoor air quality, Utilize recycled materials and materials that emit a minimum of toxic substances, and Employ acoustics that are conducive to teaching and learning. SFP Regulation Sections Education Code (a)(8) Modernization Supplemental Grants

26 High Performance Incentive Grant How to Qualify: Project must include all the prerequisites in each of the five HPRC to include Sustainable Sites, Water, Energy, Materials and indoor Environmental Quality and related subcategory credits. Verified by DSA. How it’s calculated: (Percentage multiplier based on HPI points) (base grant) + Starter Grant Modernization Supplemental Grants SFP Regulation Sections Education Code (a)(8)

27 SFP Regulation Section ED Code Sections , , , , , , & Modernization Supplemental Grants Geographic Percent Factor Purpose: To assist districts with projects located in areas of California that are remote, difficult to access, or a lack of a pool of contractor. How to Qualify: Must be within an area defined in Section (c)(1). How it’s calculated: (Percentage multiplier based on Regulation) (base grant)

28 SFP Regulation Section ED Code Sections , , , , , , & Modernization Supplemental Grants Two-Stop Elevators Purpose: Assist districts that are required by DSA to install a two- stop elevator into their modernization plans and specifications. How to Qualify: District must have a two-stop elevator in their DSA plans and specifications. How it’s calculated: A flat amount that is adjusted annually by the SAB.

29 SFP Regulation Section ED Code Sections , , , , , , & Modernization Supplemental Grants Small Size Project Grant Purpose: To provide additional funds for core facilities and to make up for the lack of economies of scale when districts build small projects. How to Qualify: Project must house no more than 200 pupils. How it’s calculated: Projects that house no more than 100 pupils: (12%)(Base Grant) Projects that house more than 100 pupils but no more than 200 pupils: (4%)(Base Grant)

30 SFP Regulation Section ED Code Sections , , , , , , & Modernization Supplemental Grants Urban/Security/Impacted Site Purpose: Aid districts with projects in urban locations on impacted sites may request a supplemental grant. How to Qualify: Usable acreage is less than 60% of the CDE recommended site size. How it’s calculated: The urban grant is equal to 15 percent times the base grant plus small size project plus the new school allowance. An additional percent increase is added to the urban grant adjustment for each percentage decrease in the CDE recommended site size below 60 percent.

31 SFP Regulation Section ED Code Sections Modernization Supplemental Grants Labor Compliance Program Purpose: Aid districts that have applications that are funded from Proposition 47 and 55 and are required to initiate a LCP. How to Qualify: Districts must be receiving apportionments from Propositions 47 and 55 and must have approval from the Department of Industrial Relations (DIR) before submitting the Fund Release Authorization (Form SAB 50-05). How it’s calculated: Formula set in Regulation that is based on the total project costs.

32 Modernization Supplemental Grants 50 Year Old Grants Purpose: Assist districts with additional costs associated with the modernization of 50 year old buildings. How to Qualify: Have buildings that are a minimum of 50 years old. How it’s calculated: A flat amount for each grade level that is adjusted annually by the SAB. SFP Regulation Section ED Code Sections

33 SFP Tips Locally Funded Classrooms Report any classrooms that have been constructed and funded entirely with local funding on the next funding application submitted. Report interim portables where the lease has extended beyond five years Districts may not house pupils in buildings that are not approved by the DSA. Non-DSA approved buildings do not generate modernization eligibility. Please note that all future adjustments made to the site’s modernization eligibility are in relation to the original “snapshot”. Education Code Section defines a classroom or “teaching station” to mean any space that was constructed or reconstructed to serve an area in which to provide pupil instruction.

34 SFP Tips Districts may use their modernization eligibility either on an upcoming eligible project, or to reimburse a project that was already completed subsequent to the SFP Regulations taking effect in It is important to note that districts have local control to decide where the funds are to be used on the site that generates the eligibility. The State Allocation Board/OPSC does not require the district to use the modernization funding on the same building that generated the eligibility. After the State Allocation Board (SAB) approves the establishment of a school district’s modernization eligibility baseline, a school district is not required to submit requests to update the eligibility in subsequent years.

35 SFP Tips Once established, the modernization eligibility cannot be decreased for declining enrollment at the site, or for any classrooms that are removed from the site. Please note however that classrooms replaced in either a district funded, facility hardship or Overcrowding Relief Grant (ORG) project are deducted from the district’s modernization eligibility baseline for a school site. In order to provide flexibility to districts and protect students from inclement weather conditions, modernization funds may be used for site development items such as or converting existing walkways to covered or enclosed walkways so long as the walkways are not considered habitable or used as a classroom.

36 SFP Tips Detailed cost estimate with itemization and quantities that can be verified in the plans Construction contracts & supporting docs Construction contracts final billing All contracts pertaining to project Architect agreements & schedule of fees Change orders Warrants & invoices Payment voucher(s) Schedule of values Qualification appraisal docs (Gov Code 4526) Purchase orders and/or agreements For Force Account Labor projects, documentation showing hours worked & wages Supporting documentation for relocation expenditures Bid announcement that substantiates DVBE goal was met Bid summary Notice to proceed and notice of completion for all contracts Documents tracking project savings All DIR approval letters for district’s LCP Retain in your District file:

37 How to Apply for School Facilities Funding Webinar Archives Available: Part I: Elements of a Complete Application – April 11, 2011Elements of a Complete Application Part II: Site Development Funding – April 18, 2011 Part III: New Construction Eligibility & Funding – April 25, 2011 Upcoming Webinars: Part V: Site Acquisition FundingSite Acquisition Funding May 9, :00 a.m.-11:00 a.m. Part VI: Financial HardshipFinancial Hardship May 16, :00 a.m.-11:00 a.m.

38 Feedback Questions Comments Suggestions for Improving the Process Submit Instant Message Now - or -

39 Resources OPSC Project Manager: p p Estimate the State Grants for My Modernization Project: ome.asp ome.asp Financial Hardship: ome.asp ome.asp SFP Handbook: /SFP_Hdbk.pdf /SFP_Hdbk.pdf Commonly Used Acronyms and Abbreviations: ms.pdf ms.pdf

40 Resources Architect Submittal Guidelines: /Arch_Sub.pdf /Arch_Sub.pdf PVT Presentation on Site Development: PSC-PVT.ppt PSC-PVT.ppt Substantial Progress & Expenditure Audit Guide: /SFP_Audt.pdf /SFP_Audt.pdf Public School Construction Cost Reduction Guidelines: _Rdt.pdf _Rdt.pdf Annual Adjustment to School Facility Program Grants: dj.pdf dj.pdf