Capital Planning 101

1. Capital Planning 101 WORKSHOP ON SCHOOL FACILITIES MANAGEMENT March 6th, 2008

2. Long Term Strategic Facility Needs Need to define what this really means in the context of Directors of Operations/Facilities A Vision for the future including specific details on how, when and by what means you intend on accomplishing your goals. A “living document” or plan. Long Term For the foreseeable future - a 20 year horizon? Acquisitions, disposal and construction Strategic Fully align facility decisions with the district education plan Ensuring sustainability and flexibility for the future  Facility Fixed assets such as buildings, grounds (parking lots, sidewalks, access lanes, sports fields, playgrounds, fencing), major equipment (pad mount transformers) Non-fixed assets such as portable classrooms, school buses and storage containers. Capital Planning 101

3. What is the purpose of a Capital Plan? • Plan and organize our facilities to best meet the needs of students as determined by educational objectives. • Ensure all facilities meet the educational needs of students (equity) • Ensure all decisions made are in the best interests of students • Ensure the most efficient and effective use of district resources (facility and land) • Improve the health and safety needs of students and staff • Cooperative planning with school communities and governments • Ensure facilities are environmentally conscious • Flexibility, sustainability, flexibility and more flexibility. Capital Planning 101

4. What are the pieces we need to put the puzzle together??? Capital Planning 101

5. Enrolment Projections • What you need • Statistics on demographic trends for geographic areas • Birth rate information • Historical retention rates by school • Percentage going to private schools • Census data by age and area • Economic indicators • knowledge of area, referrals for property development, housing starts, Official community plans, Rezoning etc. • Ministry of Education projections (error check) • a reliable consultant whose core competency is demographics or the best Planning Manager in the Province (with her own crystal ball) • At the end of the day, what are the trends in your district? • Enrolment growth or decline (likely a combination) • Movement to the suburbs, or to the inner city, or both Capital Planning 101

6. Facility Plan • Develop a Facility Plan for optimum configuration based on educational considerations. Determine the fit for schools of choice and specialty programs. Track the effect of open boundaries on schools of choice. • Dual Track French Immersion • Evaluate how portables will be used to cover short term variances and long term growth. Capital Planning 101

7. Effect of Educational Program Changes or Relocations • French Immersion – Single/Dual Track, moved between schools • Traditional Schools • Trades Schools • Culinary Arts programs • Fine Arts • Sports Academies • Program selection, Program delivery Capital Planning 101

8. Educational Specialty Program Impacts on Facility Requirements • Strong Start and Pre Schools • Washroom requirements • Access requirements • Playground requirements • Security around differing hours of operation • Dual Track French Immersion • Library size • Signage • Parent drop off and pick up Capital Planning 101

9. Educational Specialty Program Impacts on Facility Requirements • Culinary Arts • Kitchen equipment • Utility costs • Delivery access • Food waste • Social programs • Lunch programs • Before and after school care • Boys and Girls clubs etc. Capital Planning 101

10. Practical vs. Political Planning • Business case based on a Board approved Facility Plan. • Board of Education Trustees have constituencies that are reasonable, as long as any proposed change is NIMBY. • The “C word” is highly emotional. • Closure • Practical is long term, Political is 4 years?? • Try to plan for the Ministry’s next mandate • Impact of the “cradle to the grave” Capital Planning 101

11. Developing a Business Case and Selling It to the Ministry • Enrolment Driven • Increasing or stable enrolment • Decreasing enrolment requiring consolidation or reconfiguration of schools • Geographic utilization factor Capital Planning 101

12. Developing a Business Case and Selling It to the Ministry • Enrolment Driven – (cont.) • Elimination of portable classrooms • Supported by MOE’s 10 year projection trends • Financial Responsibility • Savings of operational dollars if possible • Cost share options • Sale of assets to support part of project costs • Community partnerships such as School Connections Capital Planning 101

13. Developing a Business Case and Selling It to the Ministry • Facility Age and condition • Facility Audit ranking • Building Envelope mitigation factors • Seismic challenges • Building code issues • Remaining life • Hazardous materials • Transportation Issues • Using bus service to consolidate schools • Eliminating costs of bus service Capital Planning 101

14. Developing a Business Case and Selling It to the Ministry • Governmental Initiatives • Green is currently sexy – use this to your advantage • Community Support • Board of Education • School Planning Councils and Parent Advisory Councils • Municipalities • Influential members of the community • Planning Officer support • Develop a healthy trusting relationship with your Planning Officer Capital Planning 101

15. Developing a Business Case and Selling It to the Ministry • After all the previous, ensure that you have expounded upon the increased educational opportunities for students • And if that doesn’t work, promise them the largest BC Government Project Sign ever seen in your District! Capital Planning 101

16. Annual Facility Grant • Needs to role into Capital Plan • Five Year Plan • Reviewed yearly • Consult with: • Consultant – experts • Maintenance Staff • Principals • Management Team • Directors of Instruction • Senior Management & Board Capital Planning 101

17. Annual Facility Grant • Rating Priority Criteria • CONTINUING PROJECT • BOARD OR SUPERINTENDENT DIRECTED • DIRECTOR OF INSTRUCTION TOP 5 • BUSINESS CASE • SHARED FUNDING • EDUCATIONAL IMPROVEMENT • LOWER CARBON FOOTPRINT • LIFE CYCLE IMPROVEMENT • BUILDING OR FIRE CODE REQUIREMENT • ELIMINATION OF PORTABLE OR VACANT SPACE • FUNCTIONAL IMPROVEMENT • GUIDELINE (ANF, FAC. PLAN, ACCNT. CONTRACT) • RISK OF NOT PROCEEDING • CLIENT 1st , 2ND , 3rd CHOICE Capital Planning 101

18. Opportunities Arising from Declining Enrolment • For the sadistic few of us • Layoff of staff • Closure of schools • Less funding to maintain facilities, downward spirals • Amalgamation of districts • Intense scrutiny for every decision • Public abuse • No “right” decisions • ………………… Capital Planning 101

19. Opportunities Arising from Declining Enrolment Statistics Canada – Projected BC School aged Children 2006-2031 Scenario 1 Capital Planning 101

20. Opportunities Arising from Declining Enrolment • In this scenario, we project to lose 115,000 students. At an average size of 500 students per school, this could be the closure of 230 schools. • The BC Government states “Declining enrolment is occurring in jurisdictions around the world and is expected to continue in B.C. until 2015. This year, enrolment declined by about 12,300 students – the largest single decrease ever.” With the birth rate at 1.6 per female, immigration will change the face of students in B.C. Capital Planning 101

21. Opportunities Arising from Declining Enrolment • Advantages of smaller numbers. • Smaller class sizes. Class sizes naturally grow smaller when enrolment declines. As long as schools receive funding to cover their increased per student costs, declining enrolments can provide an opportunity to move toward smaller class sizes. • Lower enrolment numbers may also alleviate some of the pressure of the anticipated teacher shortages when large numbers of teachers from the baby boom generation start moving into retirement. • Perhaps we will need less trades staff?? Capital Planning 101

22. Opportunities Arising from Declining Enrolment • Opportunities for innovation. • Augment resources received from provincial governments by such means as renting facilities and offering educational programs to adults for which they pay fees.  • Recruiting fee-paying international students whose parents seek the high quality of education provided by Canada’s public schools. • Virtual classrooms - The Centre for Distance Learning and Innovation in Newfoundland & Labrador allows students in every corner of the province to share virtual classrooms and take courses that their small schools would be individually incapable of offering. Capital Planning 101

23. MOE Five Year Capital Plan • Based on the first five years of your district plan • Details of the first three years • Typically major projects valued greater than $1.5 million • Discuss with your Planning Officer • Follow Capital Plan instructions published each year • Web application - Remote Data Entry Capital Planning System • CP-1 Capital Project request Form for each project • CP-2 Capital Plan Summary – approved by your Board of Education • CP-4 School capacity and Enrolment Worksheet Capital Planning 101

24. MOE Five Year Capital Plan • Discuss with your Planning Officer • Estimating tools • Area standards • Allowances, Rates and Costing Factors • Unit Rate • Supplementary Building Allowance • Site Development and Supplementary Site Allowances • Development Cost Charges and Off-Site Services Charges • Planning Fees • Equipment and Freight Rate Allowances • Locations Funding. • Expect in the near future for Feasibility Phase 1 studies to be required for high priority funding requests. Capital Planning 101

25. MOE Five Year Capital Plan • School Buses – Updated yearly • New Buses • Well documented reason for additional routes • Typically justifiable one year after being in service • With lag, challenge of using replaced buses for two years • Replacement Buses • 72 passenger - 12 years old and at least 325,000 km. • 84 passenger – 15 years old and at least 400,000 km. • Don’t expect to always get the buses you need • Keep your Planning Officer informed when you have to break the Ministry rule regarding using replaced buses for permanent routes. Capital Planning 101

26. Building Audits • Discussed in details by others • Major item in the business case required to support your Capital Plan. Capital Planning 101

27. Lessons Learned • Don’t plan for the teacher who will use the space, but rather for the next five teachers. • Education “Boutique” showcase • Don’t spend huge amounts of time learning the Capital Procurement process down to the minute detail level. • Spend the time instead in developing a professional relationship with your Ministry Planning Officer. (As soon as you have learned the details of the whole process, the Ministry will change it.) • Once you have brought your Planning Officer “up to speed” with knowledge of your District, the Ministry will move them. Capital Planning 101

28. Lessons Learned • Catch 22 - The MOE may appear to reward districts in the long term for inaction. • Use of your AFG to upgrade old facilities actually improves the audit rating and diminishes the likelihood of Ministerial support for major capital upgrades • Conversely doing little maintenance improves your chance for successful lobbying for major capital funding • Proactive Districts will face diminishing rates of return for energy reduction projects and will have to spend more to reduce from 2005 energy baselines. • Not all Planning Officers are the same Capital Planning 101

29. Lessons Learned • Risk Management will recommend “leasing” all vacant lands to reduce liability. • Once a community has had enjoyment of School District lands for parks and recreational use, it can be difficult to then “sell” the property to support projects elsewhere. • Ask for Ministry support for items that mirror political announcements • Hybrid bus • Geothermal heating/cooling system • Remember that your job is to provide leadership Capital Planning 101

30. Questions • Why would anyone want to be a School District Director of Facilities? • What the heck is ARES and how are they here to help? • How do they get the caramilk into the Cadbury caramilk bar? • How much wood can a woodchuck chuck? Capital Planning 101