Modernization Eligibility & Funding Overview How to Apply for School Facilities Funding
Topics Modernization Program • Overview • Funding Process • Establishing Modernization Eligibility • Submitting a Modernization Funding Application • Time Sensitive Steps • SFP Tips • Supplemental Grants • Resources
Overview Can I Look Up My District’s Eligibility and Past Modernization Funding Received? • Demonstration of OPSC Project Tracker http://www.applications.opsc.dgs.ca.gov/PT/PT_Main.asp
Overview 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. SFP Regulation Sections 1859.79.2. ED Code Sections17070.15, 17074.25, 17074.32 & 100420(c)
Overview 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 17074.25. • 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. SFP Regulation Sections 1859.79.2. ED Code Sections 17070.15, 17074.25, 17074.32 & 100420(c)
Funding Process District submits application for eligibility determination to the OPSC. SAB Unfunded Approval OPSC Modernization Eligibility & Funding Process 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 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 releases grant amount pending district match and construction contracts signed. Project Construction OPSC determines eligible grants and makes recommendations to SAB for approval District submits substantial progress/expenditure reports. *Financial hardship districts can request advanced site and/or design funding.
Funding Process Cash Availability Apportionment BEFORE FISCAL CRISIS (DEC 2008) Fund Release Pooled Money Investment Board (PMIB) Loan Priorities In Funding (PIF) Apportionment/ Fund Release Unfunded Approval PRESENT Bond Sale
Eligibility Determination • Establishing eligibility is done once. “If 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 1859.60. & 1859.61. ED Code Sections 17073.15, 17073.20, 17074.10 17070.51, 17071.25, 17072.15, 17072.20, 17073.15, 17074.10, 17075.10, & 17079.30
How Eligibility Translates Into $$$ • Modernization Funding equals Pupil Grants Requested* (AKA “Base Grant”) plus Eligible Supplemental Grants plus Eligible Site Development • Pupil grants requested are NOT capped by the pupils housed within the project. • Modernization eligibility is capped by the number of pupils housed at a school site within eligible buildings. • Pupil Grant Values maybe adjusted annually by the SAB. * Base Grant = Pupil Grants x Per Pupil Amount SFP Regulation Sections 1859.70. & 1859.77.4. to 1859.79.3. ED Code Sections 100420(c), 101012(a)(8), 17071.10, 17071.75, 17072.10, 17074.10, 17074.15, 17074.16, & 17074.25
How Eligibility Translates Into $$$Per-Pupil Grant Amounts SFP Regulation Sections 1859.70. & 1859.77.4. to 1859.79.3. ED Code Sections 100420(c), 101012(a)(8), 17071.10, 17071.75, 17072.10, 17074.10, 17074.15, 17074.16, & 17074.25
Establishing Modernization Eligibility • To Establish Modernization Eligibility, the Form SAB 50-03 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 50-03 using the Eligibility Determination Form. • http://www.dgs.ca.gov/opsc/Forms/newconstructionprogramforms.aspx • Enrollment Data: • http://dq.cde.ca.gov/dataquest/ SFP Regulation Sections 1859.60. ED Code Sections 17073.15, 17073.20 & 17074.10
Establishing Modernization Eligibility 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. http://www.documents.dgs.ca.gov/opsc/Forms/Worksheets/Site_Anal_Wrksht_NC.pdf SFP Regulation Sections 1859.60. ED Code Sections 17073.15, 17073.20 & 17074.10
Submitting a ModernizationFunding Application Completing the Application for Funding (Form SAB 50-04) • Demonstration: How to Complete the Form SAB 50-04 using the Application for Funding Form. • http://www.documents.dgs.ca.gov/opsc/Forms/SAB_50-04_.pdf SFP Regulation Sections 1859.70. & 1859.77.4. to 1859.79.3. ED Code Sections 100420(c), 101012(a)(8), 17071.10, 17071.75, 17072.10, 17074.10, 17074.15, 17074.16, & 17074.25
Submitting a ModernizationFunding Application • 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 ModernizationFunding Application 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 ModernizationFunding Application 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.
Like-Kind Replacement Examples Demo Plans Construction Plans
Like-Kind Replacement Examples Demo Plans Construction Plans
Submitting a ModernizationFunding Application 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 ModernizationFunding Application 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.
Modernization Supplemental Grants 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) SFP Regulation Sections 1859.78.4. ED Code Sections 17074.50, 17074.52, 17074.54 & 17074.56
Modernization Supplemental Grants 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. SFP Regulation Section 1859.78.2 ED Code Sections 17074.10
Modernization Supplemental Grants 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 1859.77.4. Education Code 101012(a)(8)
Modernization Supplemental Grants 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 SFP Regulation Sections 1859.77.4. Education Code 101012(a)(8)
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 1859.83(c)(1). • How it’s calculated: • (Percentage multiplier based on Regulation) (base grant) SFP Regulation Section 1859.83. ED Code Sections 17072.32, 17074.15, 17074.16, 17075.10, 17075.15, 17077.40, 17077.42 & 17077.45
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. SFP Regulation Section 1859.83. ED Code Sections 17072.32, 17074.15, 17074.16, 17075.10, 17075.15, 17077.40, 17077.42 & 17077.45
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) SFP Regulation Section 1859.83. ED Code Sections 17072.32, 17074.15, 17074.16, 17075.10, 17075.15, 17077.40, 17077.42 & 17077.45
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 0.333 percent increase is added to the urban grant adjustment for each percentage decrease in the CDE recommended site size below 60 percent. SFP Regulation Section 1859.83. ED Code Sections 17072.32, 17074.15, 17074.16, 17075.10, 17075.15, 17077.40, 17077.42 & 17077.45
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. SFP Regulation Section 1859.78.1 ED Code Sections 17074.10
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 1859.78.6. ED Code Sections 17074.26
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 17071.25 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.
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 1998. • 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.
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.
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 SFP Tips Retain in your District file:
How to Apply for School Facilities Funding Webinar Archives Available: • Part I: Elements of a Complete Application– April 11, 2011 • Part II:Site Development Funding – April 18, 2011 • Part III:New Construction Eligibility & Funding – April 25, 2011 Upcoming Webinars: • Part V: Site Acquisition Funding May 9, 2011 - 9:00 a.m.-11:00 a.m. • Part VI: Financial Hardship May 16, 2011 - 9:00 a.m.-11:00 a.m.
Feedback • Questions • Comments • Suggestions for Improving the Process • Submit Instant Message Now - or - • Email OPSCNews@dgs.ca.gov anytime
Resources • OPSC Project Manager: • http://www.applications.opsc.dgs.ca.gov/employee/pmassign.asp • Estimate the State Grants for My Modernization Project: • http://www.applications.opsc.dgs.ca.gov/GrantCalc/GrantCalc_Home.asp • Financial Hardship: • http://www.applications.opsc.dgs.ca.gov/GrantCalc/GrantCalc_Home.asp • SFP Handbook: • http://www.documents.dgs.ca.gov/opsc/Publications/Handbooks/SFP_Hdbk.pdf • Commonly Used Acronyms and Abbreviations: • http://www.documents.dgs.ca.gov/opsc/Resources/OPSC_Acronyms.pdf
Resources • Architect Submittal Guidelines: • http://www.documents.dgs.ca.gov/opsc/Publications/Handbooks/Arch_Sub.pdf • PVT Presentation on Site Development: • http://www.documents.dgs.ca.gov/opsc/Resources/PowerPoint/OPSC-PVT.ppt • Substantial Progress & Expenditure Audit Guide: • http://www.documents.dgs.ca.gov/opsc/Publications/Handbooks/SFP_Audt.pdf • Public School Construction Cost Reduction Guidelines: • http://www.documents.dgs.ca.gov/opsc/Publications/Other/Cost_Rdt.pdf • Annual Adjustment to School Facility Program Grants: • http://www.documents.dgs.ca.gov/OPSC/Resources/SFP_Grant_Adj.pdf