Site Acquisition Overview

How to Apply for School Facility Funding

Site Acquisition

Overview

Topics

Acronyms and Definitions

Existing Site with No Additional Acreage Acquired

Existing Site with Additional Acreage Acquired OR New Site

Other Types of Site Acquisition

Site Acquisition Tips

Resources

For More Information …

Commonly Used Acronyms and Definitions

CEQA = California Environmental Quality Act Public Resources Code Section 21000 et seq.; Title 14 CCR Section 15000 et seq

A statute requiring state and local agencies to identify the significant environmental impacts of their actions and avoid or mitigate those impacts, if feasible.

DTSC = Dept of Toxic Substances Control A State department that regulates hazardous waste, cleans up existing

contamination, and looks for ways to reduce the hazardous waste produced in California.

PEA = Preliminary Endangerment Assessment Ed. Code 17210(h), Health and Safety Code 25319.5

An activity that is performed to determine if hazardous materials are present, or if there is a threat that hazardous materials could be released. Requires site sampling and analysis, a preliminary determination of the type and extent of hazardous material contamination, and a preliminary evaluation of risks.


POESA = Phase One Environmental Site Assessment Ed. Code 17210(g), Health and Safety Code 25319.1

A preliminary assessment of a property to determine if hazardous materials are present, based on reasonably available information about the property and vicinity.

May include a review of public and private records, current and historical land uses, prior releases of hazardous material, database searches, reviews of relevant files of federal, state, and local agencies, visual and other surveys of the property and general vicinity, interviews with current and previous owners and operators, and review of regulatory correspondence and environmental reports.

Sampling or testing is not required for a POESA.

RAP = Remedial Action Plan A report that evaluates alternatives for remediating any identified soil or

groundwater problems at a site and outlines a specific program leading to the remediation of a contaminated site. Submitted to the Department of Toxic Substances Control for approval.

A RAP is applicable to a response action costing more than $1 million, and requires a more involved public participation process than for a RAW.

RAW = Removal Action Workplan – Health and Safety Code 25323.1

A workplan prepared or approved by the Department of Toxic Substances Control or a California regional water quality control board that is developed to carry out a removal action to protect public health and safety and the environment.

Must include a detailed engineering plan for conducting the removal action, a description of the onsite contamination, cleanup goals to be achieved, and any alternative removal options that were considered and rejected and the basis for that rejection.

A RAW is applicable to a response action costing less than $1 million.



SCA = School Cleanup Agreement An agreement between the school district and the Department of Toxic

Substances Control (DTSC) to provide DTSC oversight of the response action. It supercedes the previous agreements affecting the project site.

It differs from the Voluntary Cleanup Agreement (VCA) in several ways including dispute resolution, termination procedures, and penalties for non-compliance.

Creates a stronger guarantee that cleanup and remediation will be completed after receiving California Department of Education final approvals and State Allocation Board apportionment.


SSI = Supplemental Site Investigation A follow-up investigation to a Preliminary Endangerment Assessment

(PEA), designed to close any data gaps left after conducting the PEA to allow for a Department of Toxic Substances Control (DTSC) determination of either no further action or for the determination that a site requires a response action. At some sites, multiple SSI’s may be necessary before a final determination can be made.

VCA = Voluntary Cleanup Agreement An agreement between a project proponent and the Department of Toxic

Substances Control (DTSC) for a non-school site. The VCA can range from services for an initial site assessment, to oversight and certification of a full site cleanup, based on the proponent’s financial and scheduling objectives. The VCA specifies the estimated DTSC costs, scheduling for the project, and DTSC services to be provided.

How to Apply for Site Acquisition Costs

Use the Application for Funding (Form SAB 50-04)

We will be reviewing the following items as they relate to Site Acquisition: Item 2.h. – page 6

Item 3 – page 6

Item 5.d.(1) through 5.d.(5) – page 6

Item 5.e. – page 7

Existing Site with No Additional Acreage

Complete Item 2.h. on page 6

Project to be located on:

Leased Site

New Site

Existing Site with Additional Acreage Acquired

X Existing Site with No Additional Acreage Acquired


Complete Item 3 on page 6.

Number of Classrooms:

Master Plan Acreage Site Size (Useable):

Recommended Site Size (Useable):

Existing Acres (Useable):

Proposed Acres (Useable):


Complete Item 5.d. – Site Acquisition:

(1) 50 percent Actual Cost: $ n/a (2) 50 percent Appraised Value: $ n/a (3) 50 percent Relocation Cost: $ n/a (4) 2 percent (min. $25,000): $ n/a (5) 50 percent DTSC Fee: $

Complete Item 5.e. –

50 percent hazardous waste removal: $


50 percent DTSC Fee, Item 5.d.(5):

Included Expenses: Department of Toxic Substances Control (DTSC) fees

for oversight of Phase One Environmental Site Assessment (POESA) and Preliminary Endangerment Assessment (PEA)

Contractor costs for preparation of POESA and PEA (only when no land is acquired)


50 percent DTSC Fee, Item 5.d.(5)Required Documents: Contractor invoices for preparation of Phase One

Environmental Site Assessment (POESA) and Preliminary Endangerment Assessment (PEA) Invoices must have approval signature of District

official Department of Toxic Substances Control (DTSC)

invoices – if no removal action is implemented DTSC Summary by Activity Sheets – if a removal action

is implemented



(1) 50 percent Actual Cost: $ n/a

(2) 50 percent Appraised Value: $ n/a

(3) 50 percent Relocation Cost: $ n/a

(4) 2 percent (min. $25,000): $ n/a

(5) 50 percent DTSC Fee: $




Complete Item 5.e.


Check the Response action (RA) box.

For District costs to be eligible, a Response Action must be required by the Department of Toxic Substances Control.


50 percent hazardous waste removal, Item 5.e.

Included Expenses:

All Department of Toxic Substances Control (DTSC) costs related to the Removal Action Workplan (RAW) or Remedial Action Plan (RAP), public participation, Supplemental Site Investigation (SSI), and California Environmental Quality Act (CEQA) – if a Removal Action is implemented

Contractors for RAW/RAP if within scope of DTSC-required site cleanup

Voluntary Cleanup Agreement or School Cleanup Agreement



Required Documents:

DTSC documentation that cleanup is required

DTSC Summary by Activity sheets

Copies of contracts/agreements for hazardous waste removal

Copies of invoices for hazardous waste removal (must include description of work)

Existing Site with Additional Acreage Acquired and New Site

Complete Item 2.h. on page 6

Project to be located on: (Select one)

Leased Site

X New Site

X Existing Site with Additional Acreage Acquired

Existing Site with No Additional Acreage Acquired


Complete Item 3 on page 6.

Number of Classrooms:

Master Plan Acreage Site Size (Useable):

Recommended Site Size (Useable):

Existing Acres (Useable):

Proposed Acres (Useable):


Complete Item 3, Number of classrooms, etc

Required Documents:

CDE Final Plan (dated less than two years from the OPSC received date of the Form SAB 50-04)

CDE Final Site (dated less than five years from the OPSC received date of the Form SAB 50-04)



(1) 50 percent Actual Cost: $

(2) 50 percent Appraised Value: $

(3) 50 percent Relocation Cost: $

(4) 2 percent (min. $25,000): $





50 percent Actual Cost, Item 5.d.(1):

Documents showing actual cost of site, such as:

Escrow documents/buyer’s settlement statements Actual Cost only includes the Sale Price – no closing costs,

etc.

Court orders in eminent domain/condemnation Court orders supercede all other documents

Includes all costs in the court order

Put “n/a” in Appraised Value (Item 5.d.(2))


50 percent Actual Cost, Item 5.d.(1)

Documents showing actual cost of site…(cont’d): Agreements

When site is transferred to District in lieu of legally required payments or fees

Must specify value of the property

Purchase Agreement Only acceptable when site is purchased from a

governmental entity District must certify that it holds the title






(4) 2 percent (min. $25,000): $





50 percent Appraised Value, Item 5.d.(2):

Required Documents: (1859.74.1)

Real estate appraisal

Date of value 6 months or less prior to OPSC received date

Appraisal ordered by District Representative or District legal counsel – “Buyer’s Appraisal”

Must include all Assessor Parcel Numbers (APN’s)

Appraiser Certification (Uniform Standards of Professional Appraisal Practices)


50 percent Actual Cost, Item 5.d.(1)

and

50 percent Appraised Value, Item 5.d.(2) District receives the lesser of one half of the Actual Cost of

the site or one half of the Appraised Value of the site. (1859.74)






(4) 2 percent (min. $25,000): $





50 percent Relocation Cost, Item 5.d.(3):

Note: All relocations must comply with Title 25.

Costs may include: (1859.74.6) Replacement housing – Interest on money borrowed to make

the move or purchase the replacement property. Rental assistance – Actual and reasonable re-establishment

expenses, not to exceed $10,000. Moving costs – Transportation; packing, storage and

unpacking; mover’s insurance; break down and set up of machinery, equipment, etc.; and utility connection charges.


50 percent Relocation Cost, Item 5.d.(3)

Required Documents: Relocation Costs spreadsheet – Must be signed by the

District Representative

Invoices/estimates for eligible relocation costs






(4) 2 percent (min. $25,000): $





2 percent (min. $25,000), Item 5.d.(4):

An allowance to cover fees for appraisals, escrow, surveys, site testing, CDE review/approvals, and contractor preparation of Phase One Environmental Site Assessment and Preliminary Endangerment Assessment. (1859.74 (a)(2) and (b)(2)).

2% of one half of the actual cost or one half of the appraised value, whichever is less.

Enter a minimum of $25,000.






(4) 2 percent (min. $25,000): $






Included Costs:

Department of Toxic Substances Control (DTSC) costs for oversight of the Phase One Environmental Site Assessment (POESA) and Preliminary Endangerment Assessment (PEA)



Required Documents:

Department of Toxic Substances Control (DTSC) Summary by Activity sheets – if there is a removal action

DTSC invoices, statements, or summary by activity sheets – if there is no removal action.






(4) 2 percent (min. $25,000): $







Check the Response action (RA) box.

For District costs to be eligible, a Response Action must be required by the Department of Toxic Substances Control (DTSC).



Included Expenses: Department of Toxic Substances Control (DTSC) costs for Removal

Action Workplan (RAW) or Remedial Action Plan (RAP), public participation and Supplemental Site Investigation, and California Environmental Quality Act (CEQA) – if a RAW/RAP is implemented

Contractor expenses for RAW/RAP – if within scope of DTSC-required site cleanup

Voluntary Cleanup Agreement (VCA), School Cleanup Agreement (SCA)



Required Documents: Department of Toxic Substances Control (DTSC) documentation that

cleanup is required

DTSC Summary by Activity sheets (some DTSC costs relate to hazardous waste)

Contracts/agreements for hazardous waste removal

Estimates/invoices for hazardous waste removal

Must include description of work

Must have approval signature of a District official

Other Types of Site Acquisitions

District Owned Site

Financial Hardship Separate Site Apportionment

Environmental Hardship Separate Site Apportionment

Leased Sites

District Owned Site

Districts may request site acquisition funding to purchase a planned school site that is already owned by the District, e.g., the District Office site.

Site owned and used by District for at least 5 years prior to the OPSC received date. (1859.74.5)

Funding may be used to relocate District facilities that will be displaced.

District must prepare a cost benefit analysis (1859.74.6)

District Owned Site

Cost Benefit Analysis must include the following:

Appraisal Dated within 6 months of OPSC received date

Relocation costs

4% of Appraised valued determined in 1.(a), but not less than $50,000: the amount provides an allowance for appraisals, escrow, survey, site testing, CDE review/approvals and preparation of POESA and PEA.

Current Site development costs that would be necessary on the district-owned site if it were to be used as a school site.

Estimated cost for demolition of existing buildings on the site may be included.

Financial Hardship Separate Site Apportionment

A District must have financial hardship status for a site-only phase of a project.

Provides funding for site purchase, CDE site approval, and Department of Toxic Substances Control (DTSC) site cleanup costs.

Environmental Hardship Separate Site Apportionment

DTSC must certify that the preparation and implementation of the Response Action will take more than six months to complete.

District requests a separate apportionment prior to submission of the New Construction/ Site Acquisition application.

Provides funding to District for site purchase and site cleanup costs.

Leased Sites A District may receive SFP funding for facilities that are

or will be located on real property leased by the District from a governmental agency. (1859.22, 1859.22(a))

The leases must be long term: 25+ years – from federal gov’t (1859.22(b)(1))

40+ years – from gov’t agency (not federal) (1859.22(b)(2))

30+ years – from gov’t agency (not federal) No other educationally adequate sites, and cost per year no greater

than for a 40+ year lease (1859.22(b)(3))

30+ years – from gov’t agency (not federal) and district provides evidence that a shorter lease term is necessary (1859.22(b)(4))

We’re nearing the end of the presentation. Please send in your questions.


Organizing Your Material

Separate the site acquisition backup documents from the rest of the application package and submit one of the following ways: Binder Clip

Binder Notebook

CD

Label Binders and CD’s with the District name, project number, and “Site Acquisition Documents”


Actual Cost and Appraised Value, Items 5.d.(1) and (2) District must enter escrow before OPSC received

date for site acquisition application Actual Cost = Sales Price

Does not include closing costs, etc.

Appraisals must be ordered by the District Representative or District legal counsel.

2% Allowance, Item 5.d.(4) If acquiring new acreage, be sure to claim at least

$25,000.


DTSC Fees and Hazardous Waste Removal, Items 5.d.(5) and 5.e.

DTSC “Summary by Activity” sheets are needed when there is a Removal Action because some DTSC charges are related to Hazardous Waste and are reported in Item 5.e. If they aren’t included in the application package, they will be requested in the 15 day letter.


Customer Service

If site acquisition issues in the 15-day letter are unclear, the District is encouraged to call the Project Manager to resolve issues prior to the 15-day response, possibly avoiding a 4-day letter.

Contact Information

Valerie Castro, Real Estate Team (916) 375-4216 ~~ [email protected]

Thayne Gunther, Real Estate Team (916) 375-8062 ~~ [email protected]

Alan Shoemaker, Real Estate Team (916) 376-5359 ~~ [email protected]

Janna Shaffer, Real Estate Supervisor (916) 376-1822 [email protected]

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

Part IV: Modernization Eligibility & Funding – May 2, 2011

Upcoming Webinars:

Part VI: Financial Hardship

May 16, 2011 - 9:00 a.m.-11:00 a.m.

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Resources School Facility Program (SFP) Regulations, Sections 1859.74 through

1859.75.1

DTSC EnviroStor http://www.envirostor.dtsc.ca.gov/public/search.asp

DTSC Summary by Activity – sample

Flowcharts

DTSC Three-Step Process for Environmental Review of School Sites

CEQA Process

Templates (Excel):

DTSC Fees vs. Hazardous Waste Costs spreadsheet

Relocation Costs spreadsheet