1 how to apply for school facilities funding modernization eligibility & funding overview

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How to Apply for School Facilities Funding

Modernization Eligibility & Funding

Overview

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Topics

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

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Can I Look Up My District’s Eligibility and Past

Modernization Funding Received?

Demonstration of OPSC Project Trackerhttp://www.applications.opsc.dgs.ca.gov/PT/PT_Main.asp

Overview

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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 1859.79.2. ED Code Sections17070.15, 17074.25, 17074.32 &

100420(c)

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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.

Overview

SFP Regulation Sections 1859.79.2. ED Code Sections 17070.15, 17074.25, 17074.32 &

100420(c)

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Funding Process

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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

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PR

ES

EN

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Apportionment

Unfunded Approval

Fund Release

Priorities In Funding (PIF)

Apportionment/ Fund Release

Bond Sale

BEFO

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ISC

AL

CR

ISIS

(D

EC

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)

Pooled Money Investment

Board (PMIB) Loan

Cash Availability

Funding Process

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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

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How Eligibility Translates Into $$$

Modernization Funding equals Pupil Grants Requested* (AKA “Base Grant”)

plus Eligible Supplemental Grantsplus 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 AmountSFP 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

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How Eligibility Translates Into $$$Per-Pupil Grant Amounts

Modernization Per 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 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

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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/newconstructio

nprogramforms.aspx

Enrollment Data: http://dq.cde.ca.gov/dataquest/

Establishing Modernization Eligibility

SFP Regulation Sections 1859.60. ED Code Sections 17073.15, 17073.20 & 17074.10

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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

Establishing Modernization Eligibility

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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_.pd

f

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

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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.


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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.


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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.


18Demo Plans Construction Plans

Like-Kind Replacement Examples

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Like-Kind Replacement Examples

Demo Plans Construction Plans

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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)


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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.


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Time Sensitive Steps

Step TimingEstablish or update Eligibility for

EnrollmentSame Enrollment Year As

Submittal of Application for Funding or prior to

CDE Plan ApprovalDSA Approval

Prior to Submitting Funding Application

OPSC Financial Hardship Approval

Funding 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

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Modernization Supplemental Grants

SFP Regulation Sections 1859.78.4. ED Code Sections 17074.50, 17074.52, 17074.54 &

17074.56

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)

24SFP Regulation Section 1859.78.2

ED Code Sections 17074.10

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.


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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)


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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)

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SFP Regulation Section 1859.83. ED Code Sections 17072.32, 17074.15, 17074.16,

17075.10, 17075.15, 17077.40, 17077.42 & 17077.45


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)

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17075.10, 17075.15, 17077.40, 17077.42 & 17077.45


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.

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17075.10, 17075.15, 17077.40, 17077.42 & 17077.45


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)

30SFP Regulation Section 1859.83.

ED Code Sections 17072.32, 17074.15, 17074.16, 17075.10, 17075.15, 17077.40, 17077.42 & 17077.45


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.

31SFP Regulation Section 1859.78.1 ED Code Sections 17074.10


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.

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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

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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.

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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.

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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.

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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:

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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.

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Feedback

Questions Comments Suggestions for Improving the Process

Submit Instant Message Now - or - Email [email protected] anytime

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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

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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

1 how to apply for school facilities funding modernization eligibility & funding overview

Documents

districts eligibility

pastmodernization funding

eligible grants

eligible pupil grants

eligible school

opsc tracker

program fund

opsc releases grant