BUILDING EXCELLENT SCHOOLS TODAY

BUILDING EXCELLENT SCHOOLS TODAY BEST Workshop Presented by: Ted Hughes December 7, 2011 Visit our website at: http://www.cde.state.co.us/cdefinance/CapConstMain.htm Fountain School District 8 - Ian Weikel Elementary School

BEST What Is BEST? • Pursuant to 22-43.7-101 Thru 22-43.7-116 C.R.S., a program called Building Excellent Schools Today or BEST was established. • The BEST Act increases the level of financial assistance provided to school districts, charter schools, institute charter schools, BOCES, and the Colorado School for the Deaf and Blind for capital construction projects. • It is anticipated that BEST legislation will provide approximately $500 million for capital projects including new schools, major renovations, additions and smaller projects. With local matching contributions, the $500 million may be leveraged to as much as $900 million or $1 billion. Division of Capital Construction

BEST What Is BEST? • Colorado's legislative leadership,former Speaker Andrew Romanoff, former Governor Bill Ritter, former State Treasurer Cary Kennedy, and a large coalition worked together on this for their ambitious and landmark legislation; • Hazards and issues being addressed include, but aren’t limited to: failing roofs, structural problems, inadequate fire safety, faulty and dangerous boilers, asbestos, code issues, inadequate educational suitability, overcrowding, faulty and dangerous electrical service, poor indoor air quality, lack of ADA accessibility, and carbon monoxide contamination; • The Best Program includes a nine-member Public School Capital Construction Assistance Board (Assistance Board, BEST Board, CCAB) oversees what is known as the “BEST” legislation, approved by the 2008 Colorado State Legislature. Division of Capital Construction

BEST The best assistance board • The Assistance Board consists of nine appointed members who serve terms of two years and may serve up to three terms, which include: • 2 school facilities planners or managers • 1 public school superintendent • 1 public school finance expert • 1 public school board member • 1 school technology expert • 1 construction manager • 1 architect • 1 engineer • The Assistance Board members are appointed by the: State Board (3), the Governor (3) & the General Assembly (3) Division of Capital Construction

BEST The best assistance board The Current Assistance Board Members are: Mary Wickersham - Chair Norwood Robb – Vice Chair Mike Maloney - Secretary Lyndon Burnett Pete Jefferson Greg Randall Tom Stone Dave Van Sant Adele Willson Division of Capital Construction

BEST The statewide facility assessment The Assistance Board was required to conduct an assessment of all public schools in the State of Colorado. The Statewide Facility Assessment assessed public school facility capital construction projects based on: • The condition of the public school facility; • Air and water quality in the public school facility; • Public school facility space requirements; • The ability to accommodate educational technology, including but not limited to technology from individual student learning and classroom instruction; • Site requirements for the public school facility; • Public school facility demographics, including a five-year projection concerning anticipated substantial changes in the pupil count of individual public school facilities. Division of Capital Construction

BEST The statewide facility assessment • The Statewide Facility Assessment commenced in February 2009 and was completed in March of 2010. The Assistance Board used the public school facility construction guidelines in conducting the Statewide Facility Assessment described in this section; • The Statewide Facility Assessment includes an enormous database which stores the data collected. The data is available to the public on CDE’s School View Data Center. • The data is used by the Assistance Board in helping determine which applications should be awarded financial assistance. It is the school district’s responsibility to review and send any information that needs to be updated to the Division of Capital Construction. • It is important the information in the reports accurately reflects actual building conditions . The database is updated every February, so please be sure to review your districts reports and note any comments well ahead of time. This must be done on a voluntary basis. • For technical assistance regarding the Statewide Facility Assessment , please contact: Dustin Guerin 303-866-6263, or visit our website: http://www.cde.state.co.us/cdefinance/CapConstMain.htm Division of Capital Construction

BEST The statewide facility assessment • 8,419 buildings were inventoried & over 139.6 million were assessed; • There is almost $14 billion in capital construction needs projected through 2013 (energy, suitability, & condition needs); • Out of the 3,428 tier 1 facilities inventoried (a tier 1 is any facility that has a teaching or learning purpose) 605 of them are historically significant (50 years or older) or 18%. Division of Capital Construction

BEST The assistance fund & Sources of Revenue • The Assistance fund created in C.R.S. 22-43.7-104 is comprised of revenues from State Land Trust, Colorado Lottery, Matching Funds, and Interest from the Assistance fund. • School Trust Land Funds • In 2008, School Trust Land Funds contributed 35% of gross income for the BEST Program. In 2009, it was changed to 50% of the total income, less interest; • Colorado Lottery Spillover Funds; • Matching Money Provided by Applicants; • Interest from the Assistance Fund. Division of Capital Construction

BEST Who Qualifies & Types of Projects That Qualify • School districts, Charter schools, Institute charter schools, BOCES, and the Colorado School for the Deaf and Blind • Pursuant to 22-43.7-109 (5) C.R.S. projects qualify and are prioritized as follows: • Address safety hazards or health concerns at existing public school facilities, including public school facility security; • Relieve overcrowding in public school facilities, including but not limited to projects that will allow students to move from temporary instructional facilities into permanent facilities; • Incorporate technology into the educational environment; • All other projects. Division of Capital Construction

BEST Types of BEST Grants There are 3 types of BEST Grants: • BEST Cash Grants: which are typically used to fund smaller projects like roofs, boiler replacements, fire alarms, etc; • BEST Lease-Purchase Grants: which are typically used to fund larger projects like new schools, major renovations, and additions. These grants are financed and the financing is paid back with future assistance fund revenues; • BEST Emergency Grants: are for an unanticipated event that makes all or a significant portion of the building unusable for educational purposes or threatens the health or safety of the people using the facility; • An emergency reserve of at least one million dollars is maintained in the Assistance Fund to be used for a public school facility emergency. Division of Capital Construction

BEST Best program timeline Division of Capital Construction

BEST BEST technical assistance territory map Dustin Guerin 303.866.6263 Guerin_D@cde.state.co.us Jay Hoskinson 303.866.6920 Hoskinson_J@cde.state.co.us Cheryl Honigsberg 303.866.6915 Honigsberg_C@cde.state.co.us Kristin Lortie 303.866.6184 Lortie_K@cde.state.co.us *Charter Schools Technical Assistance Provided by Scott Newell 303.866.6717 – Newell_S@cde.state.co.us

BEST Types of technical assistance offered Before submitting a BEST grant: • Your initial contact with your BEST technical assistant should be a review of BEST Program requirements and to conduct a site visit. • Site visits are highly beneficial so the applicant can become familiar with the technical assistant and so they can become familiar with the site and the project; • During this time your technical assistant can help with reviewing master plans (if available), project identification and scope determination. Division of Capital Construction

BEST The BEST Grant application • The grant application is used for our competitive grant process for K-12 Schools, Charter Schools, BOCES, and Colorado Schools for the Deaf and Blind; • The current grant application opened on December 2, 2011, and will close on March 2, 2012. If you intend to apply for a BEST Grant, please make sure you contact your technical assistance representative so they can assist you with the process; • The CC-03 Grant Application form can be found at: http://www.cde.state.co.us/cdefinance/CapConstGrantAppProcess.htm A login can be obtained by calling Kevin Huber – 303.866.6492 • All BEST Applicants have a predetermined minimum match percent. Division of Capital Construction

BEST Matching funds and how they are calculated All BEST grants are matching grants and criteria is provided in statute for calculating a matching percentage; For School Districts, the match percentage is determined by: • The school district’s assessed value per pupil relative to the State average; • The school district’s median household income relative to the State average; • The school district’s bond redemption fund mill levy relative to the Statewide average; • The percentage of pupils enrolled in the school district who are eligible for free and/or reduced-cost lunch; • Bond election effort and success over the last 10 years. Division of Capital Construction

BEST Matching funds and how they are calculated For Board of Cooperative Educational Services (BOCES), the match percentage is determined by: • The average assessed value per pupil of all members of the board of cooperative services participating in the capital construction project relative to the state average; • The average median household income relative to the State average; • The average bond redemption fund mill levy relative to the statewide average; • The percentage of pupils that are eligible for free or reduced-cost lunch; • Bond election effort and success over the last 10 years. Division of Capital Construction

BEST How charter schools Matching funds are calculated For Charter Schools & Institute Charter Schools, the match percentage is determined by: • The amount of per pupil revenue the charter school has budgeted to expend in order to meet its facilities obligations during the fiscal year for which an application is made relative to other charter schools in the State, measured both in terms of total dollars and as a percentage of the charter school’s total per pupil operating revenue; • Bond election effort and success over the last 10 years; • The per pupil revenue received by the charter school from the State that is required by law to be credited to a capital construction reserve fund; • The per pupil revenue received by the charter school from the State education fund for Capital Construction pursuant to section C.R.S. 22-30.5-112.3; • The percentage of pupils enrolled in the school who are eligible for free and/or reduced-cost lunch; • Note: a new matching percentage calculation for Charter Schools has been adopted by the Assistance Board pending legislative approval. If approved, this calculation will be used in the FY2012-13 grant cycle. Division of Capital Construction

BEST Types of technical assistance offered After submitting a BEST grant, before approval: • During this time your technical assistant will review the grant application and work closely with the applicant to answer any questions which need clarification; • Technical assistants will review the grant budget, deficiencies ,solutions and project scope; • Help prepare for the Assistance Board review. Your technical assistant may have many questions that need to be answered. The Division tries to anticipate any concerns or questions the Assistance Board may ask; • Assist with financing (for lease-purchase projects only). Division of Capital Construction

BEST Types of technical assistance offered Once a BEST Grant is awarded: • Assistance with RFQ/P development and procurement guidelines; • Assist with requesting funds and evaluating grant reserve requests; • Assist with project management oversight from design through project closeout and ensuring warranties & certifications are in place and completed; • Facility management assistance for: warranty follow up, an operations and maintenance plan, budgeting for capital renewal and effective and efficient energy management. Division of Capital Construction

BEST Other considerations which may affect your best project • Contracts for awarded grant projects; • Charter schools and criteria that must be met to be eligible; • High performance certification program; • Colorado Historical Society. Sangre De Cristo School District RE-22J’s New PK-12 School Division of Capital Construction

BEST Contracts for awarded grant projects All BEST Grantees will be required to sign a contract. • Cash grant awardees will sign a legal binding contract with the State of Colorado. The new contract takes the place of the previous assurances and certifications found in the BEST grant application; • Lease-Purchase awardees will sign a sublease and site-lease agreement. Alamosa - New Elementary School Division of Capital Construction

BEST charter schools and criteria that must be met to be eligible For Charter Schools & Institute Charter Schools, requirements are as follows: • Chartered for at least 5 years on the date authorizer submits application per C.R.S. 22-43.7-103(7); • Charter School must have complied with all public school facilities construction guidelines addressing health and safety issues established by the Assistance Board pursuant to section C.R.S. 22-43.7-107(2)(a) at the time the charter school first occupied the facility per C.R.S. 22-43.7-109(1)(b); • Charter School to notify authorizer at least 3 months in advance of submitting application per C.R.S. 22-43.7-109(3); • Authorizer to submit application and administer funding per C.R.S. 22-43.7-109(3). Division of Capital Construction

BEST High performance certification program In 2007 the General Assembly passed legislation with high performance requirements for state assisted buildings. • All projects that are funded with 25% or more state funding are required to conform with the High Performance Certification Program (HPCP) adopted by the Office of the State Architect if (check all that apply): • The project includes a HVAC system; • If increased initial costs resulting from HPCP can be recouped by decreased operational costs within 15 years; • If the project is more than 5,000 sq.ft.; • The cost of the project is more than 25% of the replacement value of a renovated building; • If one or more items are checked the project may be required to target LEED Gold or Colorado Collaborative for High Performing Schools (CO-CHPS) certification as adopted by the Office of the State Architect and a thorough review of the HPCP requirements should be conducted; • When signing and submitting an application, the applicant certifies understanding and compliance with the Office of the State Architects HPCP. In all cases high performance design, scope, and cost must be considered in all grant applications. Division of Capital Construction

BEST High performance certification program • CDE is to achieve the highest performance certification possible: • A certification is defined as obtainable if the increased initial cost of the project, including the value of money, can be recouped for decreased operational costs within 15 years; • If the increased initial cost cannot be recouped within 15 years, an accredited professional shall assert in writing that as much as possible the substantial renovation has been consistent with the HPCP; • If CDE estimates that the increased cost will exceed 5% of the total cost of the project a review will be required by assistance program staff; • If the project is less than 5,000 sq.ft., it is subject to HPCP but certification may not be required. It is the goal of the BEST Program to build 1st Class, High Performing, 21st Century schools • It is the goal of the BEST Program to build 1st Class, High Performing, 21st Century Schools Division of Capital Construction

BEST Historic buildings • Colorado Revised Statute 24-80.1-101 thru 108 requires state agencies such as the Colorado Department of Education (CDE) to consult with and take into consideration the comments of the Colorado Historical Society (CHS) on projects involving properties listed on the State Register of Historic Properties or properties having historical significance, to determine if the project would result in an adverse effect to the property; Colorado School for the Deaf & Blind • For the purposes of the BEST grant program, CDE and CHS are evaluating properties that are over 50 years and older to determine if they are eligible for listing on the State Register, if they are not already listed. Division of Capital Construction

BEST Qualified zone academy bonds (QZAB) The QZAB program is a way for school districts to obtain interest free financing for renovation, repair projects, and other needs. CDE does not provide the funding, but provides authorization to a school district to obtain the interest free financing if the school district qualifies. Some of the requirements are as follows: • 35% or more of the school's students must qualify for free and reduced lunch; • Programs established with QZAB must have the goal of enhancing the academic curriculum, increasing graduation and employment rates or better preparing students for college and the workforce; • Each school must enter into a partnership with a private entity or entities. The partner must contribute at least 10 percent of the net present value of the amount of money borrowed; • NEW: At least 10% of the financing must be contracted within 6 months after issuance. 100% of the QZAB must be spent within 3 years of date of issuance. • NEW: Arbitrage restrictions have been modified in 2008 so that reserve accounts may be created provided they meet the criteria requirements per H.R. 1424. • QZAB application is located at: http://www.cde.state.co.us/cdefinance/CapConstQZAB.htm Division of Capital Construction

BEST made possible, with the help from: BEST • Capital Construction Assistance Board • State Board of Education • State Land Board • Colorado Lottery • BEST Finance Team Division of Capital Construction

BEST Division of public school capital construction Ted Hughes Director of the Division of Public School Capital Construction Assistance Voice: 303 866-6948 / Fax: 303 866-6186 hughes_t@cde.state.co.us BEST Staff: Wendi Chapin 303 866-6137 chapin_w@cde.state.co.us Cheryl Honigsberg 303 866-6915 honigsberg_c@cde.state.co.us Jay Hoskinson 303 866-6920 hoskinson_j@cde.state.co.us Kevin Huber 303 866-6492 huber_k@cde.state.co.us Kristin Lortie 303 866-6184 lortie_k@cde.state.co.us Dustin Guerin 303 866-6263 guerin_d@cde.state.co.us Scott Newell 303 866-6717 newell_s@cde.state.co.us Visit the BEST website at: http://www.cde.state.co.us/cdefinance/CapConstMain.htm ANY QUESTIONS?

BEST Please take a minute to complete a short surveyThank you for participating in today’s webinar • If you wish to received updates and announcements from the Division of Capital Construction or if you would like a copy of today’s presentation, please email • Kevin Huber - Huber_K@cde.state.co.us Division of Capital Construction

BUILDING EXCELLENT SCHOOLS TODAY