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California's funding model for school facilities is a complex one. The concept of the "three-legged stool" began in the 1980's to assist schools in funding facility needs. While not always the same length, these legs made up of three necessary components. State bonds, local bonds and the d
eveloper fee combine to create a critical funding source for modernization and new constructi
on to improve outdated K through 12 and community college districts. The first and
second legs rely on the passing of state and local bonds. The statewide success of Prop 51 proved without a doubt that voters care about schools in both good times and bad.
Once funding has been established, the impact to both residential and commercial development now must be determined. The developer fee, the third leg of the stool, forms a stable basis of funding for school facilities.
Eric Hall & Associates understands the importance of developer fees and how crucial the passing of state and local school bonds are and will work seamlessly to meet your district's needs. Give EH&A a call today for help with this complicated system and for a better chance at maneuvering within the system successfully.
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Time is of the Essence to Complete Two-Step Process
Establishing Eligibility for New Prop 51 Rules Requires Depth of Experience and Dedicated Effort
By
Melinda Pure, EH&A Associate
The "Kindergarten Through Community College Public Education Facilities Bond Act of 2016" (Prop 51) was approved by California voters on November 8, with 55.2% "yes" votes. The election results were certified by the Secretary of State on December 16.
This is an historic accomplishment, since the last state school facilities bond was passed 10 years ago, in 2006. With the leadership and dedication of the C
oalition for Adequate School Housing (C.A.S.H.), this bond measure was placed on the ballot using the initiative process. With a focus on capital outlay for school facilities, C.A.S.H insured that a funding stream will again be available with State funding. But there are still many questions about how and when these new 2016 bond funds will actually be available to spend on school facility projects.
While there are uncertainties about some details, it is clear that time is of the essence for Districts and Charter Schools to complete the two-step process to 1] prepare applications for modernization and/or new construction funding eligibility, and 2] prepare individual project funding applications to get "in line" for funding. Needs statewide far exceed the Proposition 51 funding available.
Preparing applications to establish eligibility and request specific project funding can be a time-consuming process, requiring depth of experience and dedicated effort. Eric Hall and Associates currently assists many Districts and Charter Schools with timely preparation and submission of these applications.
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A Ride in the Elevator Leads Business Expert
Chris Schmidt to Join the EH&A Team
Sometimes bumping into someone in an elevator can open a whole new world of opportunity. That's exactly what happened when Eric Hall and Chris Schmidt met at the 2016 annual CASBO conference while riding in, you guessed it, the elevator!
Chris was completing the School Business Management Certificate Program offered through the University of Southern California in partnership with FCMAT and School Services of California. Eric and Chris shared mutual friends in the world of school business and struck up a common dialog. Eric offered Chris an opportunity to join the EH&A team a few months later. EH&A is excited to add Chris to our growing team of Associates.
Along with the SBM certificate, Chris brings 12 years of private-sector business management experience to the team. His focus has been on the oversight of people, systemic business process, and the use of technology in organizations. Chris is an expert with the practical use of in-depth analytics, personalized project management, and the unique optimization of critical operations, policy, and procedure.
Chris has seamlessly made the transition into the world of K-12 school business and facility management. He has parlayed his experience and training into developer negotiations, OPSC audits, school bond planning, district enrollment projections, budget development for new school planning, and eligibility studies for School Facility Program grants.
In his free time, Chris enjoys supporting his wife who trains show horses, assisting his ten-year old in solving Rubik's Cube puzzles, and helping his eight-year old build masterpiece Lego creations.
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Districts Gear Up for Another Round
of Microsoft Settlement Technology Funds
The fifth distribution of Microsoft settlement funds has school districts scurrying to apply. This round of Education Technology K-12 Voucher Program Funding totals $11.9 million, bringing the grand total to more than $480 million. The list of eligible and potentially eligible schools and districts is available on the California Department of Education (CDE) K-12 Voucher Program website.
Schools are eligible for the funds under certain criteria including:
- If the school was previously eligible for the Education
Technology K-12 Voucher Program
- All public K-12 schools, county offices of education,
direct-funded charter schools, and State Special Schools in which at least 40% of the certified 15-16 enrollment qualified for free or reduced price meals through the NSLP
- All public high schools in California that serve students from public elementary, middle, and junior high schools in which at least 40% of the certified 15-16 enrollment qualified for free or reduced price meals through the NSLP
This round is available to more than 8,000 public schools, including charter schools, as a result of a 2003 anti-trust settlement agreement between Microsoft Corporation and California consumers and businesses. The funds must be used to support education technology that improves teaching and student achievement. Although schools are no longer required to create an education technology plan for eligibility, EH&A as well as the CDE strongly encourage districts to develop and implement a technology plan. EH&A Associates are prepared to assist you with this endeavor.
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EH&A Prepared for New DSA Approval Process for Alternative Project Delivery Methods
While there are many ways to skin a cat, there are only a few ways to get your school facility project planned and delivered on time. The Division of the State Architect's (DSA) project approval process for school districts and community colleges allows project delivery methods other than the traditional design-bid-build model. EH&A Associates are experts in all of the alternative methods allowed by DSA. Alternative project delivery methods include lease-leaseback, design-build, and use of construction managers.
Even though these alternatives are allowed by DSA, it is not a simple task to decide on which method is best for your undertaking. These delivery methods pose challenges to the interpretation of the Field Act, process implementation, and project financing understanding for the Governing Board. EH&A Associates can help you find the correct delivery method for your project and assist the community's comprehension with clear presentations and communication modes.
Using the new DSA revised procedures, EH&A will ensure that the builder's actions comply with the requirements of the Education Code and DSA's administrative regulations. EH&A will find the way through the maze of regulations, using the latest regulations such as:
- Design-Build and Lease-Leaseback Alternative Project Delivery Methods (IR A-33)- new regulation which clarifies DSA procedures for ensuring compliance with all codes.
- Construction Management Services for Public School Projects (IR A-3)- completely revised for alternate construction delivery methods utilizing a Construction Manager (CM), Construction Manager Multiple Prime (CMMP) or Construction Manager at Risk (CMAR).
- Construction Cost Reporting and DSA Fees (IR A-23)- a new way to shed light on cost reporting requirements associated with the use of alternative project delivery methods and various construction and program managers.
- Construction Phase Duties of the School District, Contractor, and Design Professional (IR A-24)- EH&A will make it easy to explain design professional administrative duties, elimination of references to recently deleted IRs, and adding references to applicable IRs.
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DSA Hourly Fee Rate Change Effective Jan. 1, 2017
The Division of the State Architect (DSA) is increasing the hourly fee for plan review services for K-12 public school districts, community college districts, and state agencies. Starting January 1, 2017, the fee will increase from $170 to $215 per hour.
This is the first increase to the fee since May 1, 2013. Going forward, the fee will be adjusted annually using the first January issue of Engineering News-Record's U.S. 20 City Construction Cost Index. The fee amount shall be set to cover the costs incurred by DSA in carrying out its responsibilities on the date of services rendered.
IR A-30: DSA Hourly Fee Services (PDF - 180 KB) now reflects the new hourly fee structure and clarifies when the hourly fees apply. DSA updated the examples within the document to reflect the calculation of fees under various scenarios involving the application fee, actual construction cost, and changes during construction.
Please direct any questions to Jim Hackett, Principal Structural Engineer, Code and Standards Unit, at [email protected].
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State Allocation Board Update
The State Allocation Board did not meet in November. On December 5th, the State Allocation Board met at 2:00 p.m. in the State Capitol, Room 447. All items on the agenda were on Consent Agenda. The agenda for that meeting can be found by clicking
here. The final item on the agenda was the setting of meetings for 2017, which can be found below:
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January 25 at 4:00 PM
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May 24 at* 4:00 PM
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Sept. 27 at* 2:00 PM |
February 22 at* 4:00 PM
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June 28 at* 4:00 PM
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October 25 at* 2:00 PM
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March 22 at* 4:00 PM
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July 26 at* 2:00 PM
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December 2017* TBD
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April 27 at* 4:00 PM
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August 23 at* 4:00 PM
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*These are projected dates depending upon workload.
CASH Update
December 16th is the application due date for those wanting to attend the School Facilities Leadership Academy. The Academy is a new partnership between CASH and FCMAT. This year-long, intensive program provides professional training to current and future school facility leaders in areas including modernization, new construction and maintenance of the community's public schools. The Academy begins with an institute in March, 2017. Thereafter, classes are held on Friday afternoons and Saturdays, generally once a month. The Academy will meet in Sacramento and Ontario. The seventh cohort of the Academy will receive their certificates of completion during a graduation ceremony at the CASH Annual Conference in February 2018.
Applications can be found by clicking here
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C.A.S.H. monthly meetings are held from 11:00 a.m. to Noon in Sacramento on the 4th Wednesday of the month to coincide with the monthly meeting dates of the State Allocation Board. Workshops are scheduled on the 4th Tuesday of the month in Sacramento and repeated on the 4th Friday of the month in Ontario. Workshop and meeting locations are subject to change. Workshops are not held in February, May and October.
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We are pleased and honored to
provide services, support, and guidance necessary for the success of all California school districts and county offices of education.
Happy Holidays to You and Your Family!
Eric Hall, President
Eric Hall & Associates
cell (760) 519-8531
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