Converting Your Charter School Facilities Program Preliminary Apportionment

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1 Converting Your Charter School Facilities Program Preliminary Apportionment PRESENTATION BY: Office of Public School Construction California Department of Education California School Finance Authority OFFICE OF PUBLIC SCHOOL CONSTRUCTION

2 Presenters Office of Public School Construction (OPSC) Ms. Erin Cunneen California Department of Education (CDE) Mr. Fred Yeager California School Finance Authority (CSFA) Ms. Katrina Johantgen

3 OPSC Topics Recap Prop 51 Funding Round Converting Your Preliminary Apportionment (PA) Accessing Funding Overview of Process Important Tips Wording in orange font indicates that a handout is provided

4 Prop 51 Funding Round Recap $500.0 million 191 applications submitted $3.5 billion in requests 49 Preliminary Apportionments (PAs) awarded January and February 2018 State Allocation Board (SAB) Meetings $506.8 million awarded Prop 47, 55, 1D and 51 Remaining applications retained though 2018

5 Converting Your PA What is conversion? PA = reservation of bond authority (not $$) PA to a Final Apportionment (adjusted grant) Proposed project to actual project Submit complete and valid Application for Funding (Form SAB 50-04) Deadline (to submit Form SAB 50-04) Four years from date PA was awarded Possible one-time, one-year extension Projects rescinded that miss deadline

6 Converting Your PA: When can you convert? When you have the necessary approvals Division of the State Architect (DSA) final plan approval CDE final plan approval Additional items for new construction projects CDE final site approval Department of Toxic Substance Control (DTSC) no further action letter City/County approval of Off-Site plans Opened escrow (site acquisition)

7 Converting Your PA: When do you have to convert? 2014 Round Lazear Charter Academy 11/25/2018 Nord Country 04/15/2019 KIPP Heartwood Academy 04/15/2019 Roseland Accelerated Middle 04/15/2019 Millennium Charter High 04/15/2019 Aspire ERES Academy 05/27/2019 KIPP Prize Prep 12/09/2019 Prop 51 Round January 2018 PAs 01/24/2022 February 2018 PAs 02/28/2022

8 Converting Your PA: How do you convert? Submit valid Form SAB to OPSC Conversion Application Submittal Requirements DSA approved plans and specifications DSA Final Plan approval letter CDE Final Plan approval letter Career Technical Education Advisory Committee (CTEAC) certification Additional items for new construction or rehabilitation projects

9 Converting Your PA: How do you convert? (cont.) Additional Items for New Construction Projects Cost Estimate for Site Development CDE Final Site Approval Letter DTSC invoices and approvals, if necessary Appraisal & escrow opening or closing statement (site acquisition) Appraisal dated within six months that complies with School Facility Program (SFP) Regulation Section

10 Converting Your PA: How do you convert (cont.) Additional Items for Rehabilitation Projects Construction cost estimate Signed by architect or design professional Accessibility/Fire Code Requirements Checklist Only required if requesting 60 percent of minimum work instead of flat 3 percent of base grant For projects that contain access compliance and/or fire code work Signed by DSA during plan approval

11 Accessing Funding: Is there funding to get started? Design advance funding 20 percent of state grant (construction costs) 50 percent state grant 50 percent match Eligible expenditures: Architect s fee for plans DSA plan check fee CDE plan check fee Preliminary site tests Advertising for construction bids

12 Accessing Funding: Is there funding to get started? (cont.) Site advance funding New Construction projects that reserved site acquisition Amount is the appraised value, median cost or actual cost and 2% grant 50 percent state grant 50 percent match Eligible expenditures: Appraisal fees Purchase of site Escrow fees DTSC fees

13 Accessing Funding: How do I request funding? Priority Funding Process Must have an Unfunded Approval on the Unfunded List (UL) Lack of AB 55 Loans Lack of cash, not bond authority Advances placed on UL based on date PA awarded Conversions placed on UL based on date conversion application approved by State Allocation Board (SAB)

14 Accessing Funding: How do I request funding? (cont.) Participate in bi-annual certification rounds May 9, June 7, 2018 Eligible for funding July 1, 2018-December 31, 2018 November 14, December 13, 2018 Eligible for funding January 1, 2019-June 30, 2019 Certification Ability to submit a valid Fund Release Request (Form SAB 50-05) 90 days for design advance and adjusted grant 180 days for site acquisition advance

15 Accessing Funding: How do I request funding? (cont.) Request funding by deadline Funding becomes available Spring/Fall bond sale Receive funded approval from SAB Submit valid Form SAB by deadline From SAB funded approval date Funds released to applicant in about 6 weeks Charter school warrants sent in mail District warrants deposited into County account

16 Accessing Funding: How do I request funding? (cont.) Occurrences Apply to conversions only Advances placed back on UL with new date in line Failure to submit a valid Form SAB by deadline Failure to participate in certification round Two occurrences will result in rescission

17 Accessing Funding: What is a valid fund release request? CSFP Fund Release Checklist Design advance Form SAB Sections 2, 10 and 11 completed Executed Grant Agreement (OPSC) Executed Charter School Agreements Memorandum of Understanding (CSFA) Funding Agreement (CSFA) Use Agreement (District) Current financial soundness with CSFA

18 Accessing Funding: What is a valid fund release request? (cont.) Additional Items for site advance Contingent site approval from CDE Preliminary appraisal Form SAB Site Acquisition Costs selected as Type of Application in Section 1 All other information remains the same as original Form SAB submitted for PA Additional items if charter school holds title

19 Accessing Funding: What is a valid fund release request? (cont.) Adjusted Grant (Conversion) Executed Charter School Agreements Executed Grant Agreement Form SAB sections 5, 10 and 11completed Full contract(s) Need to be in contract for 50 % of hard construction Notice(s) to Proceed Project Information Worksheet (PIW) New Construction projects only

20 Overview of Process Applicant receives PA. Four year deadline starts Applicant submits Priority Funding certification in May/June or Nov/Dec Applicant works with CDE to find site and gain contingent site approval (NC Only) Fall/Spring Bond Sale OPSC takes advances with certifications to SAB for Funded Approval Applicant receives final DSA and CDE plan approval Applicant purchases site (NC Only) Applicant receives final CDE site approval (NC Only) Applicant begins project design phase (planning, hire architect, etc.) OPSC processes Form SAB Warrant issued when funds are available Applicant executes agreements, obtains current financial soundness from CSFA if needed, submits valid Form SAB Applicant submits conversion application package. OPSC processes application for presentation to SAB CSFA performs final financial soundness review SAB Unfunded Approval. Placement on Unfunded List Applicant participates in SFP Funding Process to request funding

21 Important Tips Charter schools may not use a lease, leaseback (LLB) construction delivery method Districts may enter into an LLB New construction projects Do not occupy prior to submitting a complete and valid Form SAB Demolish and replace rehabilitation projects Building back more or less classrooms/square footage than what was demolished may affect funding.

22 Important Tips (cont.) Request extension prior to deadline Request must be submitted prior to deadline One-time, one-year extension possible Meet requirements in SFP Regulation Section Request must be submitted in writing and include: Reason extension needed DSA/CDE status Submittal/final approval dates (may be estimates) Site acquisition status Anticipated Form SAB submittal date

23 Important Tips (cont.) Always use forms from OPSC website They are updated regularly Always provide an original signature No photocopied, scanned or stamped signatures Read all certifications on SAB forms Material Inaccuracy penalties apply SFP Section Follow all Labor Code, Public Contract Code and Government Code requirements Bond funds = public works project

24 Important Tips (cont.) Mail or hand deliver all forms or documents with signatures to: Office of Public School Construction 707 Third Street, 6 th Floor West Sacramento, CA Do not or fax

25 OPSC Contacts and Website Barbara Kampmeinert Deputy Executive Officer (916) Erin Cunneen Project Manager (916) The website contains forms, regulations, handbooks, FAQs and more!

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