F&F SEPT 8-09 Agenda

of 3

SCHOOL DISTRICT NO. 63 (SAANICH)

FINANCE AND FACILITIES COMMITTEE

Agenda

Committee Members: Trustee Standen, Chairperson Trustee Husband Trustee Parker

Joan Axford, Secretary-Treasurer Keven Elder, Superintendent of Schools

Kim Milburn, Director of Facilities Ed Sykora, Director of Finance

September 8, 2009

10:30 a.m. – 12:00 noon, Boardroom Other Attendees: A. PRESENTATIONS AND QUESTIONS

B. ITEMS FOR DISCUSSION

1. Use of Deep Cove parking lot. C. ITEMS FOR RECOMMENDATION

1. Approval of 2008-09 Financial Statements

Draft Recommendation for Trustee Consideration:

That the Board receive the 2008-09 Financial Statements and approve the submission of the 2008-09 Audited Financial Statements to the Ministry of Education.

2. Briefing Note re: Debt Financing for Borrowing for the Proceeds

of Surplus Property Sales for Royal Oak, Prospect Lake and KELSET Capital Projects Draft Recommendation for Trustee Consideration: That the Board meet with MLA Murray Coell and write the Minister about the efficacy of project

agreements and request re-consideration of Government to comply with the agreement and provide debt service grants as the district is eligible and has fulfilled contract provisions.

FINANCE AND FACILITIES COMMITTEE Agenda - September 8, 2009

of 3

C. ITEMS FOR RECOMMENDATION CONTINUED

3. RFP for Lease of Saanichton School

Draft Recommendation for Trustee Consideration: That the C-Tech proposal for the Lease of Saanichton School be rejected as it does not meet the criteria of the RFP.

Draft Recommendation for Trustee Consideration:

That the lease of Saanichton School be awarded to Keating Out of School Care subject to successful negotiation of a lease.

4. Briefing Note Regarding Funding Changes Implemented by the Province Draft Recommendation for Trustee Consideration:

a) That the Board send a letter to the Minister of Education requesting expedited approval under the Disposal Order to proceed with the sale of Sansbury site and so the district can remove the debt financing costs;

b) That the Board discuss at the next LEA meeting the recognition of course based funding for

first nations students living on reserve; and c) That the Board apply to the Minister of Education to pay for the AFG deficit from Ministry

Capital Reserve Funds and/or Local Capital Funds. 5. Briefing Note re: North Saanich Middle School Planning - Status Draft Recommendation for Trustee Consideration:

Whereas the new replacement North Saanich Middle School will be both an educational and community facility with the addition of neighbourhood of learning space at no additional cost to the local taxpayer and staff have agreed that the roundabout is only needed should the existing site be developed, that the Board write to the North Saanich Council requesting that the process for rezoning and approval of site servicing for the current project to replace the North Saanich Middle School proceed with the understanding that school district upgrades to MacDonald Park and John Roads will make provision for a future roundabout but that the replacement school project cannot contribute further to the roundabout because of Ministry guidelines and funding approvals. Should the district receive approval at a future date to dispose of the existing site, consideration of a contribution could be made at that point.

FINANCE AND FACILITIES COMMITTEE Agenda - September 8, 2009

of 3

C. ITEMS FOR RECOMMENDATION CONTINUED

6. Greenglade Lease Draft Recommendation for Trustee Consideration:

That the Board approve the extension of the lease by Panorama Recreation Centre of Greenglade Elementary School to December 31, 2010 with the addition of a clause in the lease that outlines that due to the cancellation of Annual Facility grant funding, should the district not be able to complete landlord repairs within existing budgets and those repairs must be done to occupy the building, the school district will invoke the early termination clause.

D. ITEMS FOR INFORMATION

1. Development beside Lochside School – verbal report. 2. Local Capital Budget. 3. Summary of Physical Plant Activities. E. FUTURE AGENDA ITEMS

No items.

of 3

Presentation To Board on 2008/09 Financial Statements Prepared by Joan Axford, Secretary-Treasurer

for Board Meeting of September 16, 2009

These statements are prepared under the Generally Accepted Accounting Principles for school districts and are primarily those set out in the not for profit model, using the deferral method as defined by the Canadian Institute of Chartered Accountants (CICA Handbook, sections 4400 to 4460). The notes to the Financial Statements outline the accounting principles used. These statements are being audited by KPMG who have to date found that they present fairly the financial position of the school district.

STATEMENT 1: Statement of Financial Position

The overall Fund Balance position has increased due to increases in the capital fund asset value for the Royal Oak Middle School Replacement and Prospect Lake Elementary Addition and KELSET Elementary as work in progress.

Operating Fund

The overall Cash balance has increased by $7.8 million due to receipt of the non-refundable deposit from the sale of the surplus Royal Oak lands and the capital loan proceeds funding the portion of the Royal Oak, Prospect Lake and KELSET projects that will be funded from the sale of surplus properties. The cash balance includes the school’s non public funds owed to them of $813,117. The operating fund balance has decreased to $7.6 million after the utilization of $2.5 million from reserves to cover the operating expenditures.

Special Purpose Funds

The special purpose fund balances are outlined in Schedules B1, B2 and B3 of the financial statements total $2,505 million that includes $1,597,867 from Annual Facility Grant funds for projects in progress, $61,212 for special education equipment and $813,117 for school’s non-public funds.

Capital Fund

Capital Asset additions were $9.68 million that included improvements to buildings of $0.957 million from annual capital grants for HVAC improvements, painting, roofing and flooring. Included in the equipment improvements is $55,391 for Technology Education from the Mount Newton Legacy fund. Also included are capital additions of $6.613 million for completion of Prospect and KELSET Elementary and Stelly’s and Claremont Seismic projects, $1.6 million in work in progress costs on the seismic projects and Brentwood mechanical upgrades. Also capitalized is $0.415 million in furniture and equipment purchases from operating funds. The statements include a write down of $532,871 in the value of computer technology, furniture and equipment, and vehicles which have completed their useful life.

Background to 2008-09 Financial Statements

Page 2 of 3

Analysis of Cash Balances:

Government has indicated that school districts are holding too much cash and therefore have the ability to earn investment revenue. The following outlines that cash balances are committed to liabilities and future expenditures: Cash Balance in all Funds $

Financial statement breakdown of cash balances per fund: Operating Fund 12,812,890 Special purpose fund 2,505,330 Capital fund 946,204 16,264,424 Investments 10,983,284 Total Cash at June 30, 2009 27,247,708

Accounts Receivable and Prepaid expenses (2,130,379) Accounts Payable 5,560,083 Deferred International Tuition 1,800,511 Accrued Employee Future Benefits 3,250,115 Restricted Operating Reserves: Early Learning, AVID, Literacy Commitments 771,624 2009/10 Operating Budget 1,215,126 Distributed Learning Contract 3,030,752 School Reserves 941,345 District Program Commitments 1,421,321 Special Purpose Funds: Annual Facilities Grant 1,597,867 Special Ed Equipment 61,212 School Generated 813,117 Other 33,134 Royal Oak Deposit 3,500,000 Ministry of Education Restricted Funds 2,059,228 Local Capital Reserve 3,060,358 Total Commitments on Cash Balances 26,985,414 Net Unrestricted and Available Surplus 262,294

STATEMENT 2: Statement of Revenue and Expense

Revenues are similar to 2007/08 but changed from budget in the areas of labour market adjustments, cafeteria revenue at Stelly’s and miscellaneous revenues of $507,000, unbudgeted grants such as AVID, Apprenticeship programs which must be spent for a specific purpose and not as general funding for operating programs. Schedule A1 reflects the district unrestricted operating surplus position for the year of $262,294 (Schedule A1) and a current year deficit of $2.561 million which the district used planned surplus reserves to fund. This unrestricted surplus is primarily from savings in employee benefits.

Background to 2008-09 Financial Statements

Page 3 of 3

************************

Schedule A1 outlines the Surplus

Position of the School District

The district operates on a decentralized budget system. Designated funds for schools and district programs may be accumulated over a period of two or three years, reflecting planning and a commitment by these schools and district program coordinators to realize long term goals.

Internally restricted surplus

The internally restricted surplus totals $7,380,168 and is made up as follows: School Funds $ 941,345 Capital Programs 491,884 Early Learning, Avid, etc 771,624 District Programs 929,437 Distributed Learning 3,030,752 2009/10 Budget 1,215,126 Total $7,380,168

Unrestricted surplus

The unrestricted surplus of $262,294 can be utilized for future budget plans. It is a result of savings in primarily in employee benefits.

Schedule A4 – Expense by

Function and Program

The final expenditures indicate district spending of 85% on Instruction which is level with last year. This exceeds the provincial average by 2.0%. District administration spending is at the provincial average at 3.25%. The district spends 13.5% on supplies and services.

Schedule B1,B2, B3 –

Special Purpose

Funds

Special Purpose funds are funded for specific purposes and must be used for those purposes. The district has the following funds available in these funds: Annual Facility Grant $1,597,867 Special Education Equipment 61,212 School Generated Funds 813,117 Regional Implementation 6,804 Community Mobilization 12,529 Community Access 13,801

Total funds available for Special Purposes $2,505,330

Annual Facility Grants are utilized for work such as roofing, mechanical and electrical upgrades, outside painting, flooring replacements, upgrades to alarm systems, renovations to classrooms. After work in the summer of 2009, the deficit in the Annual Facility Grant account is $554,500. School Districts have been told that there will be no grants in 2009/10 to fund this further work or repay this deficit.

Schedule C1 – Capital Additions

The district added $9.68 million in new and upgraded assets in 2008/09. Included is upgrades from annual facility grants of painting, roofing, flooring and HVAC at a number of schools. In addition, capital projects of the Prospect Lake and KELSET Elementary and seismic upgrades at Stelly’s and Claremont Secondary schools.

Fully depreciated assets were written off of $532,871 of computer hardware and furniture and equipment as deemed disposals and accumulated amortization of assets of $3.702 million also reduced the value of the capital assets.

Capital expenditures are funded by Government through debt financing which is shown as deferred capital contributions on our statements and through the sale of surplus properties recorded in Ministry Restricted Capital.

School District No. 63 (Saanich)

Saanich Schools

Page 1 of 2

2125 Keating Cross Road, Saanichton, B.C. Canada V8M 2A5 Phone: (250) 652-7300 Fax: (250) 652-6421

BRIEFING NOTE

To: Members of the Prepared By: Joan Axford, Finance and Facilities Committee Secretary Treasurer Subject: Debt Financing for Borrowing for the Date: July 22, 2009 Proceeds of Surplus Property Sales for Royal Oak, Prospect Lake and KELSET Capital Projects Background:

The Project Agreements for the replacement of Royal Oak Middle Schools, addition to Prospect Lake Elementary and the new KELSET Elementary Schools required the sale of surplus lands to partially fund these projects. The projects required the following contributions and the proceeds from the following sales:

Royal Oak Middle School

$1,550,000

Proceeds from the sale of surplus Royal Oak Lands

Prospect Lake Elementary

$1,609,615

Proceeds from the sale of Durrance Elementary site and surplus Royal Oak Lands

KELSET Elementary

$3,700,000

Proceeds from the sale of Sansbury Elementary site and surplus Royal Oak Lands

Status of Proceeds:

The Royal Oak lands will complete on December 31, 2009 and a request to the Minister of Education for approval to sell the Sansbury School site was submitted on January 13, 2009. Terms of Project Agreements and District Compliance:

The Project Agreements signed by the Minister of Education and the Board Chair included Schedule E which outlines eligibility for interim borrowing. The following is the Prospect Lake clause:

Pursuant to Section 144(1) of the School Act, the Board of Education of School District No. 63(Saanich) is provided with authority to borrow up to one million nine hundred and two thousand dollars ($1,902,000) for the purpose of constructing the proposed addition to Prospect Lake Elementary School. Upon completion of the new addition to the school it is expected that the Board will arrange for the disposal of surplus assets in a timely manner. The debt service interest expenses related to borrowing these funds will be eligible for a debt service grant for a period of no more than twenty-four (24) months following the date of opening of the addition to Prospect Lake Elementary.

Under the authority of Section 110 (1) of the School Act, the Board must submit too the Minister an estimate of any debt service surplus or deficit anticipated in the current year. This information must be provided to the Funding Department on or before March 15 of the same year.

Briefing Note Re: Debt Financing for Borrowing July 22, 2009

Page 2 of 2

The clause had two conditions, both of which the district complied with:

1. That we proceed in a timely manner to sell which we have undertaken processes on a continuous basis through three legislative changes and various community consultation involvement; and

2. That the district submit information about the borrowing as requested by the Funding Department which was submitted.

The Board held a Special Meeting on March 15th to approve the borrowing of $6,900,000 to finance these projects and informed the Ministry of the annual debt service costs of 459,446.56 and a 2008/09 deficit for the April to June, 2008 period of $84,721.41. The total cost in 2009/10 is $544,167. This amount was included in our 2009/10 Operating Budget as both an expenses and offset with an expected grant from the Province. The School District is eligible for the debt service grants by complying with the Project Agreement. Section 114(1) of the School Act states that “in each fiscal year the minister must pay to the board of each school district the operating grant plus the debt service grant for that board.” Debt Service Grants:

On July 17, 2009, I received a letter from Reg Bawa, Director of Funding and Compliance Branch of the Ministry of Education that the Ministry would not be providing debt service grants for the 2009/10 school year. Boards of Education are responsible to cover any debt service expense. A follow up meeting confirmed that the district is eligible under our contract but there is no budget appropriation in the Ministry of Education for debt service grants and therefore no ability to pay. Agreement was reached with Ministry staff that as these debt service costs were not being funded through an operating grant, they are now a cost of the capital projects and should be accounted for in the capital fund. There is budget remaining in the Royal Oak and KELSET projects to finance these debt service costs for 2009/10. Unfortunately this will result in some additional capital work like landscaping being deferred or cancelled. As well it is expected that we can finalize proceeds on the Royal Oak lands in December and Sansbury by the end of the school year which could reduce the debt service costs to $358,608. Considerations:

1. Further discussions with the Ministry also confirmed that should Government not have funding in 2012 for the debt service costs for the North Saanich Middle School project, those costs could be charged to capital so district staff are budgeting to accommodate those costs within the project.

2. It is now imperative to proceed with the sale of the Sansbury lands as soon as possible to garner those funds to offset the debt. The district may want to consider sale under current zoning, subdivided for the park land and allow the purchaser to proceed with rezoning.

Recommendation: That the Board meet with MLA Murray Coell and write the Minister about the efficacy of project agreements and request re-consideration of Government to comply with the agreement and provide debt service grants as the district is eligible and has fulfilled contract provisions. JA:rd


Saanich Schools

Page 1 of 3


BRIEFING NOTE

To: Finance and Facilities Committee Prepared By: Joan Axford, Secretary Treasurer Subject: Lease of Saanichton Elementary School Date: September 1, 2009 A Request for Proposal (RFP) was issued for the lease of Saanichton Elementary School on July 3, 2009 to close on July 31, 2009. Three proposals were received. The criteria for acceptance of the RFP is based on the uses below:

a) Public Education not in conflict with School District No. 63 (Saanich)

b) Community Services

c) Post Secondary Institutions

d) Government Agencies

e) Community Development

f) Pre-School/Daycare

g) Recreation

h) Production Facilities (such as Motion Picture Studio/Fine Arts Studio)

i) Cultural Facilities The criteria for evaluation of the successful proponent were:

a) Amount of school space to be leased or willingness to share space

b) Proposed lease amount

c) Payment of maintenance, taxes and utility costs

d) Operating lease – per School Act, 5 years or less with no option to renew

e) Relationship of Proposal to Process and Principles Framework for use of Surplus District Facilities outlined in Section 4.1, and ability to meet same

f) Start date and occupancy date availability

g) Amount of leasehold improvements needed and ability of lessee to pay

h) If all proposals are unable to provide lease payments the review of proposals from non-profit organizations will consider: i) Services to students and parents within School District No. 63 (Saanich) ii) Association with School District No. 63 (Saanich) school programs iii) Length of service of the organization and likelihood of remaining in existence iv) Ability to pay rent in future

Briefing Note Re: Leasing of Saanichton Elementary School September 1, 2009

Page 2 of 3

The response of the proponents were as follows:

Amount of School Space

Leased

Annual

Lease Amount

Payment of Maintenance, taxes, utility

costs

Section 4.1

Start Date of

Occupancy

Leasehold Improvements

Non-Profit Proposals

1. Farmland Trust None Looking to Sub Lease

2. C-Tech Project Management

$5,000 per month-20 year lease-considered under legislation to be sale-approval of Minister needed

Yes May not conform to P-1 Zoning as seniors residential rental housing Questionable that complies with 4.2 acceptable use

Jan 1, 2010 CTech responsible

Conversion to Senior’s Housing Willing to sublet to Tigers Sub lease to non-profit administrator/partner

3. Keating Out of School Care Society

None Will pay a lease amount from subletting revenue at a later date

Yes Conforms to current zoning Does not conflict with current business

Nov 1, 2009 Limited leasehold improvements contemplated, hopefully funded by grants

Services to parents and students of the district Association with SD programs Ability to pay rent in future

Other Information: C-Tech is willing to respond with alternate uses of the building if a revised RFP is issued. Such uses as a trade school. Keating Out of School Care is willing to negotiate into the lease that lease revenue form any sub lease will be provided to the school district as lease revenue after their costs are covered. Due to the withdrawal of funding for Annual Facility Upgrades, the negotiated lease will include a clause to ensure that the school district does not need to provide facility upgrades if no funding is available.

Briefing Note Re: Leasing of Saanichton Elementary School September 1, 2009

Page 3 of 3

Recommendation: The C-Tech proposal does not meet criteria of the RFP. A lease of 20 years would be considered equivalent to sale of the school and therefore ministerial approval would be required. The proposal involves significant renovations which would preclude the building from returning to a school site. The use proposed for the school does not meet current zoning of the site. Therefore it is recommended that this proposal be rejected. Keating Out of School Care meets the criteria of acceptable uses, willingness to share the space, cover all operating costs, and provide lease revenue from sub tenants. It is an operating lease and limited renovations would allow the building to return to a school in a timely fashion. It is recommended that the lease be awarded to Keating Out of School Care JA:rd


Saanich Schools

Page 1 of 6


BRIEFING NOTE

To: Finance and Facilities Committee Prepared By: Joan Axford, Secretary Treasurer Subject: Funding Changes Implemented Date: August 28, 2009 by the Province Over the summer months, a number of announcements have been received from the Ministry of Education concerning funding levels for 2009/10. In addition, more rigorous financial reporting requirements have been implemented. The August 27, 2009 letter to Superintendents and Secretary-Treasurers stated that “It will be critical to government’s fiscal plan that school districts operate within funding levels provided. As per Section 156 of the School Act, boards are required to manage within budget and must not incur a deficit”. Debt Financing Costs In the 2009/10 Operating Budget, grant funding and an offsetting expenditure of $544,167 was included to cover the cost of borrowing (loan of $6.9 million) needed to finance the portions of the following projects funded by property sales - Royal Oak Middle, Prospect Lake and KELSET schools. Our project agreements signed by our Board Chair and the Minister of Education were clear that Government would fund the debt financing costs for 24 months. The Ministry of Education has confirmed that for the 2009/10 school year, no debt service grants will be provided to any school district. Fortunately, with agreement of our auditors, the district can charge these now unfunded costs to the capital project budget and the capital projects can absorb this cost for 2009/10. The majority of this loan will be paid down with the finalization of the sale of surplus lands at Royal Oak School. The balance needs to come from the sale of the Sansbury site. It is recommended that the Board send a letter to the Minister of Education requesting expedited approval under the Disposal Order to proceed with the sale of Sansbury site and remove these debt financing costs.

Briefing Note Re: Funding Changes Implemented by the Province August 28, 2009

Page 2 of 6

LEA Tuition Funding On our 2008/09 financial statements, the district has recorded a bad debt expense of $31,887. This shortfall is the result of the Ministry of Education reducing funding to the School District in excess of the funding provided to the Saanich Indian School Board (SISB) from the Department of Indian and Northern Affaires Canada (INAC) to pay for the LEA agreement. This shortfall is the result of a change in Ministry of Education policy to fund all courses for Grade 10 to12 students even if they exceed eight courses or 1.00 FTE. INAC is unwilling to fund the portion over 1.00 FTE. The position of the Ministry of Education is that the students covered by the LEA are not their responsibility to fund and therefore the school district must collect through the LEA agreement. Unfortunately, the SISB cannot pay what they have not received. We will track the reporting of these students in 2009/10 to determine any shortfall earlier in the school year. It is recommended that the Board discuss this at the next LEA meeting. Community Link Funding On August 26, 2009, the district received a letter outlining that the 2009/10 Community Link funding will be provided from the Ministry of Housing and Social Development’s community gaming grants program rather than from the Ministry of Education budget. In 2008/09, this funding totaled $370,350 and the district was able to provide 7.00 FTE Youth and Family Workers and 2.00 FTE specialized behaviour education assistants. We await confirmation of the amount of funding for 2009/10. Our budget contains the same funding and costs. Annual Facilities Grant (AFG) On August 27, 2009, the Ministry of Education informed school districts that the Annual Facilities Grant funding will not be provided for 2009/10. Previously, we were informed that the April to June grants for 2008/09 school year would not be provided. School districts are being asked to use any previous unspent balances on school maintenance projects. These funds are used for capital expenditures to maintain our buildings such as roofing, electrical and HVAC upgrades, exterior painting, playground installations, paving upgrades, small building renovations, flooring replacements, gymnasium floor refinishing, security system replacements, air quality improvements. Attached is a list of planned projects for 2009/10 and 2010/11 previously provided to the Board. The district proceeded with work this summer based on an expected reduction in funding but not a full elimination. Our fiscal position in this fund is as follows:

Financials June 30/09 1,659,079 Non-structural seismic balance (440,000) 2008/09 Unpaid work in progress (150,715) 2009/10 Expenditures for committed or completed work (1,622,915) Expected Deficit June 30, 2010 (554,551)


Page 3 of 6

The following projects/capital improvements will not proceed with the removal of AFG funding for 2009/10:

Stelly's Teaching Kitchen Freezer and Cooler Replacements 31,857 Stelly's Special Education Room 144 Renovations 16,000 Keating Classroom and Student Services Renovations 216,000 Sidney Mechanical Systems Modernization 50,000 Brentwood Mechanical and Computer Room Air Conditioning 25,000 Physical Plant Office and Trades Staff Workstations 75,000 Prospect Lake Sink and Faucet Upgrades 4,500 Broadmead ILC Workstations 3,500 AFG Administration charge 25,300 Handicapped Access 25,000 Reduced Roofing Costs from Budget 74,399 Upgrade exterior of buildings 99,290 Technology Upgrades of Wiring 47,500 Energy Program-extend digital and lighting controls 67,972 Exterior Lighting in Parking Lots 8,819 Risk Management Loss Preventation Recommendations 25,866 Total Savings in AFG from Plan 796,003

It is recommended that the District apply to the Minister of Education to pay for the expected deficit from either Ministry Capital Reserve Funds or Local Capital Funds. In addition, one painter position is financed from the AFG fund under the upgrading of exterior project. This $55,000 cost will now revert to an operating budget pressure and be incorporated into our 2009/10 final budget. Funding for Enrolment Growth in September 2009: Every year the Ministry holds back funds for enrolment growth in September over that projected in the preliminary funding and budgets. This year the Ministry has indicated they need to reclaim funding provided in June to assist in funding the September changes. For Saanich, this recovery is $58,513. The district also expects an enrolment growth over projections and will need to be cautious in estimating the increased funding for those students. It may result in reduced services for these new students or pressure on current services.


Page 4 of 6

Interest Revenue: At the Superintendent’s Conference in Kelowna, the Deputy Minister outlined that the Ministry would be reviewing how they provide funds to districts. In tough economic times, it is difficult to explain why government pays to borrow money and gives districts funding in advance of their needs and districts get to earn and retain interest income. For 2009/10, Saanich budgeted $450,000 in revenue from interest income. Our Cash position at June 30, 2009 is committed as follows:

Financial statement breakdown of cash balances per fund: Operating Fund 12,812,890 Special purpose fund 2,505,330 Capital fund 946,204 16,264,424

Investments 10,983,284 Total Cash at June 30, 2009 27,247,708 Accounts Receivable and PrePaids (2,130,379) Accounts Payable 5,560,083 Deferred International Tuition 1,800,511 Accrued Employee Future Benefits 3,250,115 Restricted Operating Reserves: Early Learning, AVID, Literacy Commitments 771,624 2009/10 Operating Budget 1,215,126 Distributed Learning Committment 3,030,752 School Reserves 941,345 District Programs 1,421,321 Special Purpose Funds: Annual Facilities Grant 1,597,867 Special Ed Equipment 61,212 School Generated 813,117 Other 33,134 Royal Oak Deposit 3,500,000 Ministry of Education Restricted Funds 2,059,228 Local Capital Reserve 3,060,358

Total Commitments on Cash Balances

26,985,414 Net Unrestricted and Available Surplus 262,294


Page 5 of 6

Ministry September 1, 2009 Provincial Budget Implications: The Provincial Budget confirmed that operating block grants would remain as announced in February 2009, AFG would not be funded, Community Link Grants would be funded from gaming revenues. The budget also outlined some other pressures for school districts:

1. Medical Service Plan Premiums will increase 6% -annual cost to Saanich of $140,000; 2. School districts will not be exempt from HST or continue to receive our current 68% rebate

for GST – annual cost to Saanich of about $605,000 for the loss of rebate and other increasing for paying tax on goods and services that we are currently exempt; and

3. The three year plan does not provide for an increase in grants to cover the July 2010 contractual teacher settlement – annual cost to Saanich of $620,000.

The provincial budget picture looks like this: Education Programs-Blue Book Revised Original Difference Million Dollars 2009/10 2009/10 2009/10 Block Funding 4,458,639 4,458,639 0 Infrastructure (AFG Seismic) 150,700 40,700 150,700 (110,000)Funding of Suppport Staff (Pay Equity, LTD, etc.) 80,279 80,279 80,279 0 Support for Schools (Community Link, PRP's PLNet, etc.) 133,095 97,600 133,095 (35,495) Other 17,492 0 17,492 Total Public Schools Component 4,694,710 4,822,713 (128,003) Independent Schools 248,367 248,367 0 Early Learning 23,338 23,338 0 Total Education Programs 4,966,415 5,094,418 (128,003) Public Libraries 13,130 15,675 (2,545)Management Services 63,013 68,447 (5,434) Total Ministry of Education Budget 5,042,558 5,178,540 (135,982)


Page 6 of 6

Increased Reporting Requirements: In light of the current economic situation, Treasury Board has requested additional rigour be introduced into the financial monitoring and reporting processes. Currently school districts report quarterly to Government. The new reporting requires monthly statements by the 5th business day after month-end in addition to the quarterly reports. These statements will initially be actual year to date and in future will include forecasted information. As well, in order to better manage capital budget cash flows, the Ministry is requesting monthly reporting by the 8th of each month. Certainly these requests will be challenging for our staff. Summary of Recommendations: 1. That the Board send a letter to the Minister of Education requesting expedited

approval under the Disposal Order to proceed with the sale of Sansbury site and so the district can remove the debt financing costs;

2. That the Board discuss at the next LEA meeting the recognition of course based funding for first nations students living on reserve; and

3. That the Board apply to the Minister of Education to pay for the AFG deficit from either Ministry Capital Reserve Funds or Local Capital Funds.

JA:rd


Saanich Schools

Page 1 of 3


BRIEFING NOTE

To: Finance and Facilities Committee Prepared By: Kim Milburn, Director of Facilities Subject: North Saanich Middle School Date: September 3, 2009 Planning - Status Background The North Saanich Middle School replacement project agreement was approved and announced on April 8, 2009. The Ministry highlighted provisions for inclusion of a ‘Neighbourhood of Learning’ as an added amenity to the proposed facility. Panorama Recreation Commission resolved to partner with the School District to coordinate programs or to provide funding for incremental operating costs. The facility is being planned to attain a LEEDTM Gold standard of sustainability measures. (Leadership in Energy and Environmental Design of the Canadian Green Building Council). The building is being designed with an expression of BC wood products. Design Committees A management committee comprised of the consulting architect, facilities director, assistant superintendent, principal and vice-principal is consulting with an advisory group comprised of school staff, parent and neighbourhood representatives. Issue The School District has been undertaking extensive consultation with the Municipality of North Saanich Planning and Engineering departments regarding zoning or site servicing issues. A rezoning application, sanitary sewer service area request, a letter of response to the municipal site servicing requirements and preliminary drawings were submitted on March 2, 2009. Following meetings over three months, a final full response to each of the municipal servicing demands was provided on July 31st. This included road improvements to allow the latter development of a round about but does not include construction of a share of the round about. The rezoning or site servicing development agreement has not yet reached Council mainly because of requirements for development of a municipal round-a-bout at the intersection of Resthaven and MacDonald Park Roads. The Boulevard Group traffic consultant has recommended that a four-way stop intersection would be satisfactory for the lower traffic volumes resulting from the reduced capacity school. The municipality disagrees or views that future development on the surplus school lands would increase traffic and has retained a civil engineering firm to complete a preliminary design of a round-a-bout by September 12, 2009 to define the scope and costs for frontage works that they will require to be developed by the School District. Development of this more extensive municipal infrastructure would be contrary to the capital funding guidelines of the Ministry of Education.

Briefing Note Re: North Saanich Middle School Planning – Status September 3, 2009

Page 2 of 3

Assuming that further meetings with the District of North Saanich might reach an agreement on the extent of frontage works, the soonest that the rezoning and servicing reports might reach Council would be October 17, 2009. A process for referral to the Advisory Planning Committee, advertisement, Public Hearing, and bylaw readings would take approximately four months. The earliest that municipal approvals might be in-place could be mid-February 2010. This is very close to our tendering schedule and further delay could defer the start of construction or cause impacts due to inclement weather. Neighbourhood of Learning The Panorama Recreation Commission resolved to be a partner to coordinate recreation or community programs in cooperation with other user groups as well as bear the incremental afterhours additional operating area costs. A redesign of the facility has incorporated an additional 623 square meters of floor area to provide a larger gymnasium, fitness area, multipurpose, drama, woodshop, art, office and seminar rooms along with a community servery. General classrooms are consistent with the Ministry of Education standard area of 80 square meters. The Ministry has announced a market value reduction to construction budgets. A presentation to the Ministry of Education on July 20th was positively received. Funding is currently available within the contingency reserve of the existing project agreement. The neighbourhood of learning approvals are now proceeding through the Ministry. The revised design is proceeding to meet the milestone dates for the March 2012 occupancy. Schedule Revisions and consultation to incorporate the Neighbourhood of Learning: May – June Neighbourhood of Learning Presentation – July 20, 2009 Design Development – October 15, 2009 50% Working Drawings – December 15, 2009 Final Working Drawings & Specifications – April 1, 2010 Construction Start – May 15, 2010 Substantial Completion – January, 2012 Cleaning, Equipping, Furnishing and Fit-up – February, 2012 Move – March Spring Break, 2012 Procurement: North Saanich Middle School is being procured through a construction management process with Durwest Construction Management Ltd. Construction Management (CM) is a form of contract procurement whereby the owner contracts with a project management firm for a fixed fee to provide pre-construction services to review the design, provide constructability and material advice, and ultimately packages the project into discreet trade sections, tenders, and administer the construction contracts. Unlike a stipulated sum contract, the CM is not compensated for change orders during construction.

Briefing Note Re: North Saanich Middle School Planning – Status September 3, 2009

Page 3 of 3

Recommendation: Whereas the new replacement North Saanich Middle School will be both an educational and community facility with the addition of neighbourhood of learning space at no additional cost to the local taxpayer and staff have agreed that the roundabout is only needed should the existing site be developed, that the Board write to the North Saanich Council requesting that the process for rezoning and approval of site servicing for the current project to replace the North Saanich Middle School proceed with the understanding that school district upgrades to MacDonald Park and John Roads will make provision for a future roundabout but that the replacement school project cannot contribute further to the roundabout because of Ministry guidelines and funding approvals. Should the district receive approval at a future date to dispose of the existing site, consideration of a contribution could be made at that point. KM/rd

Panorama Recreation Under the authority of the Peninsula Recreation Commission

1885 Forest Park Drive, North Saanich, BC V8L 4A3 Phone 250.656.7271 Fax 250.656.3360

[email protected] www.panoramarecreation.ca

July 14, 2009 MaryLynne Rimer, Chair School District #63 (Saanich) 2125 Keating Cross Road Saanichton BC V8M 2A5 Dear MaryLynne: Further to our meeting of July 13, 2009 with representatives from the School District and the Town of Sidney, please accept this letter as a formal request to extend the current lease for the Greenglade Elementary School with its present terms and conditions until December 31, 2010. As was discussed, the use of the Greenglade site as a community centre has proven to be both popular and beneficial for patrons, the School District, the Town and the Commission. This extension will allow for the services currently offered at Greenglade to continue while further discussions take place between the Ministry, the Town and the Commission regarding the longer term future of the site. Should any additional information be required, please contact Doug Henderson, Administrator at 250-655-2170. Yours truly, Thomas C. (Tim) Chad Chair cc: Peninsula Recreation Commission Town of Sidney

Saanich School District Summary of Physical Plant Activities

Prepared for District Principals and Vice-Principals

August 2009

1

Summer Construction Program General maintenance and capital funding programs were undertaken with emphasis on improved facility infrastructure and floor-area health and safety.

Heating System Upgrade .......................... $735,000 Brentwood Elementary – New Heat-pump and Ventilation System

Replacement of 15-year-old residential gas furnaces with new centralized air handling units, heat-pump, hot-water distribution piping and electric boiler will improve energy efficiency, control and occupant comfort as well as saving 60 tonnes of CO2.

Renovations .............................................. $200,000 Washroom Fixture Upgrades – Claremont, Cordova Bay, Sidney

Cordova Bay Elementary – Window Replacements Exterior Door Replacement – Claremont, Bayside, Sidney Stelly’s Secondary – Student Services Upgrade

– Cooler/Freezer Refrigeration Replacements

Bayside Middle – Art Room and Canteen fixtures and Fire Safety equipment, Library renovations

Lochside and Deep Cove – New PA systems Lochside Strong Start Center Royal Oak Middle – Wall Panel Over-cladding Electrical Systems – High-voltage servicing

Roofing Projects ....................................... $315,000 Bayside Middle – Roof ridge, Library, Art and central core area

Brentwood – Re-saturation and mechanical roof curbs Cordova Bay Elementary – re-saturation Deep Cove Elementary – replacement of metal roofing and gutter sections.

Flooring Program ......................................$125,000 Over the past five years we have been following a program to replace carpet with linoleum flooring. This year a further 20 classrooms have been converted. The initial focus was to eliminate primary classroom carpets, but now all schools have realized some improvements. As areas are renovated, flooring is also replaced. Most elementary schools are now carpet-free. Flooring replacements completed: Brentwood – 5 classrooms and Special Education Keating – 5 classrooms Claremont – 9 classrooms and dance floor Gym Floor Refinishing – Deep Cove, Parkland, Sidney

Site Development: SIDES – New parking area and drainage ЌELSET – Retaining wall, paving, pathways, additional field drainage

Cordova Bay – Play-structure and paved play area Royal Oak MS – Completion of landscaped areas Fencing – Lochside, Deep Cove, Sidney, Prospect Lake, NSMS, ROMS.

Fertilizing secondary/middle irrigated school fields Cleaning and caring for all school grounds along with parking lot marking and sweeping

Painting Program ....................................... $110,000 IE Shop safety lines Keating: hallways, cupboards CUPE portable

Parkland changerooms Lochside Exterior c/w Door Replacements

Custodial Services: Custodial absence replacement procedures are to change considerably as a result of the 2009 budget. The number of custodial replacement staff will now be limited between three during summer to a maximum of eight FTE in peak flu season from November to February. Two of the replace-ment staff will serve from Spring through Summer in the Grounds Department. Grounds staffing will be reduced during cold weather, except for recall of two custodians, during emergent snow or ice conditions. Changes to custodial replacement procedures may limit staffing to partial shifts. More attention will be made to manage any planned absences as well as a requirement to address absenteeism through implementation of new Board Policy. Custodians are experiencing injury resulting from the movement of heavy furnishings or equipment deliveries. One custodian was struck with a double hernia this summer. Custodians have a right to refuse unsafe work practices, if deliveries are received without tail-gate lifts, pallet jacks, etc. Delivered goods procedures are to be amended to require trucking firms to remove all materials into schools as well as to unpack and remove cardboard or styrofoam packing materials, so as to reduce our waste removal requirements.

Waste Removal and Recycling: The District is supporting an enhanced recycling program/ reduced waste pickup schedule to separate organics and plastic/tin containers at Elementary Schools this year, which follows a successful pilot program at ЌELSET, ROMS, NSMS and Parkland. Royal Road University environment-tal science students have been evaluating this pilot with final report due in late September. A school facilitator and ‘green team’ as well as a Waste Management audit will be

School District #63 Saanich Physical Plant

August 2008

2

required prior to implementation of this enhanced program. The best waste reduction program is through limiting the use of non-recyclable materials, such as styrofoam. Glass ‘for-deposit’ containers or soft-plastics will still need to be managed through Encorp, Pacific Mobile Recycling or local collection centres. CRD is planning to ban additional waste products in 2010 at Hartland landfill, including stewardship materials such as paint, solvents, flammable liquids, automotive batteries or electronics. In addition, wood waste is to be banned. By 2012, CRD is planning to ban organic waste at Hartland landfill. More information is available regarding enhanced recycling programs through the District ‘Green Team’, Facilities Department, Waste Management Ltd, or the CRD recycling education team coordinator, [email protected].

Energy Management: BC Hydro is supporting a multi-year grant to hire an energy manager for our School District. The intent of this leadership position is to engage or inspire throughout the organization, for encouraging a conservation culture. The District has been dedicated to energy conservation, management and sustainability for many years through modernization of lighting or building digital control systems, LEED guidelines for new buildings and creation of a District ‘Green Team’. A new sustainability policy is proposed for adoption in September, with specific energy conservation goals. Applicants for energy manager are expected to be professional engineers or technologists supplemented by energy management training, business management and excellent communication or presentation skills. The position will be expected to manage the HVAC and electrical maintenance trades to integrate energy conservation into every aspect of the maintenance or capital planning.

Health and Safety Services: The health and safety program responds to our statutory requirements with a focus on our staff and students’ well-being. A key determinant of a successful safety program is the site-level safety committee work, training of first-aid attendants, accident investigation and regular inspection procedures. A District Safety Committee provides guidance and oversight to meet our obligations. A Safety Office Critical Response Sheet has been circulated. Topics addressed include: Fire Safety First Aid Services Lockdown Shutdown Earthquake Planning Safety Committee Training

Please complete the Response Sheet and submit it to the District Safety office prior to September 30, 2009. The designates for the Fire Safety Plan should be chosen from the membership of the local safety committee.

Community Use Department: Please remember the guidelines; for an activity to qualify as school use it must be: 1. Approved by the principal; 2. Directly linked to the school; 3. Specifically for the students of the school (but not

necessarily limited to); 4. Supervised by an adult who:

(a) is delegated responsibility by the principal, (b) has a direct link to the school, (c) is accountable to the principal, (d) has been given a school-level orientation to school

procedures, rules and expectations, (e) has had a criminal record check by the local police.

Capital Projects: Seismic Program Our capital plan considers improved building seismicity through the planned replacement of North Saanich Middle School and building replacements at Royal Oak Middle and ЌELSET, as well as recent renovations at various schools along with additions during the 1990s. A 2012 capital project for Parkland Secondary has been submitted. Claremont Secondary School – Major Seismic Upgrade Unitech Construction Management is progressing to com-plete 3 phases of renovations throughout the original 1960s portions of the art, industrial education, home economics, gymnasium and change rooms. As a result of cost savings, additional scope was added to complete all sections of the building to current seismic standards. Work involves con-struction of steel frame buttresses to the exterior along with new diaphragm upgrades to various internal walls and ceilings. Work to date has completed various classrooms, gymnasium, the IE shops, exterior buttress frames, and interior diaphragm upgrades. The $2.125 Million upgrading project will be completed by November. North Saanich Middle School: Government announced approval of a $22M replacement school for 400 students on April 8. The new school is to be built on the John Road site, rather than redeveloping on the current site or renovation and additions to the existing facility. The original school will be demolished and the Resthaven property sold to contribute to the cost of the replacement facility. The District is currently proceeding through the rezoning application for a portion of the John Road property. In July the District made a presentation to the Ministry to include a Neighbourhood of Learning to enhance the com-munity programming offered at the school in partnership with Panorama Recreation Commission. Our presentation is being supported with an intended enhancement of 623 sq M or a 15% increase to the area to provide a double gymnasium, fitness room and enhanced multipurpose, drama, woodshop, art and seminar room. Design of the new improved facility is progressing with a projected Spring 2010 construction start and Spring Break 2012 completion.

Saanich School District Summary of Physical Plant Activities

Prepared for District Principals and Vice-Principals

August 2009

3

Building Security Monitoring: Price’s Alarm Services Monitoring Station Alarms Telephone: 250-384-2353

Monitoring Station dispatches Guard Service In Case of False Alarm: Call Monitoring Station Provide Full Name and Access Code Number

Guard Service – Footprints Security The Guard Service was retendered in August 2009 and the service provider changed from Royal Victoria Security to Footprints Security. Guard Service has been reduced through the 2009 Budget to eliminate evening patrols, except during periods of high vandalism or special event patrols. Footprints Security will now only respond to intruder alarms. Fire alarms are relayed directly from the Monitoring Service to the local Fire Department. Security Personnel are in uniform in patrol vehicles.

Reports of insecure doors or alarm responses are provided to the school. Staff may not have been as diligent in the past about securing windows and doors when they leave a building. The School District is now relying on custodians and all staff to be responsible for after-hours building security.

Intruder Alarm System Instructions Entry: ♦ Doors will be open between 7:00 am and 6:00 pm

Monday to Friday ♦ Scan your card at the reader after-hours ♦ Reader will beep and the door latch will activate ♦ Open the door within 6 seconds ♦ Alarm system is ‘OFF’ ♦ Sign-In

Exit: ♦ Sign-Out ♦ Ensure that Green Light is ‘ON’ ♦ Ensure that all other occupants have exited ♦ Enter Access Code ♦ Red Light will activate and alarm is ‘ON’ in 30

seconds ♦ Ensure that ‘Door Button’ is in ‘Locked Position’

On Alarm Activation: ♦ Enter Access Code at keypad or scan card at the

reader, if outside of the building ♦ Call Monitoring Station at 384-2353 ♦ Provide Name and Security Code

Building Security

BUILDING SECURITY IS EVERYONE’S RESPONSIBILITY

Open a Door/Window – Close It Designate The Person for After hours Alarming Challenge Unknown Persons on Entry or take them to the School Office / Classroom Leaving a Building Insecure could lead to a tragic result!

Comments from our Guard Reports: ♦ In addition to our security patrols that find multiple

doors or windows open at schools each week, there were over 120 alarms last year. Each alarm response costs the School District at least $30, plus staff overtime.

♦ Many doors are being left or wedged open, which is an invitation to theft or vandalism.

♦ Mobile displays can trigger alarms, especially if near a heating vent.

Evacuation Drills: ♦ Notify Price’s Alarm Monitoring of the time of the Fire

Alarm test ♦ Conduct the test using a fire pull-station ♦ Silence the Alarm and Reset at Annunciator ♦ DO NOT Silence or Reset a Fire Alarm that does not

arise from a test; The Fire Department and Physical Plant staff will attend

♦ Notify Price’s Alarm of Alarm Reinstatement IMMEDIATELY after test

♦ Notify Physical Plant of Alarm Test

School District #63 Saanich Physical Plant

August 2008

4

Page 2

Access Card Authorization: ♦ Physical Plant will provide an Access Card to a

specific site for individual staff authorized by an Administrative Officer on the Authorization Form

♦ The Access Card shall be forwarded to the School for issue to the staff member

♦ A $20 Charge for replacement of Lost Cards is required prior to reissue

♦ If staff is reassigned to another location, their access card number can be reassigned by the Physical Plant Department; Physical Plant must receive an Authorization Form at least 10 days prior to the effective date of the change

♦ Schools shall have a departure policy for collecting the Access Card of retiring or departing employees

♦ Access Cards shall be returned to Physical Plant for Deactivation

Interior Key Authorization: ♦ An Exterior/Interior Master Key shall be provided to

a Principal or Vice Principal

♦ A Master Key shall not be issued to individual staff nor for general dispersal from a school office

♦ Re-keying of a lost or stolen exterior Master Key shall be a School Expense — Re-keying an entire school could exceed $15,000!

♦ Interior Keys shall be issued to individual staff authorized by an Administrative Officer on the Authorization Form

♦ A $20 Charge for re-cutting a Lost Key is required prior to reissue

♦ Keys shall not be loaned to someone who is not Authorized or is from another school facility

♦ Temporary Staff keys shall be issued by the school office and collected at the end of the assignment

♦ A key control form shall be provided for each temporary staff member and retained by the school office

♦ Schools shall have a departure policy for collecting the keys from departing employees

♦ All Keys shall be returned to Physical Plant when surrendered

♦ Relocated staff shall be issued a new key upon receipt of their current keys along with the new Authorization Form approved by the Administrative Officer

Fire Safety Plans:

Please remember that each school is required to submit a copy of its Fire Safety Plan to the local Fire Department. This is especially necessary because of the change in administration in some schools. A Fire Department template has been developed. Please contact Russel Roy, Health and Safety Manager, if you need support.

The Local Fire Departments are also expecting compliance with paper display areas in exit corridors. Their inspections will be proceeding in October or November, which may require alterations to improve compliance.

Please, do not lend or transfer keys or access cards amongst staff.

Always have a departure policy to return keys and access cards.

F&F SEPT 8-09 Agenda

Documents

Transcript of F&F SEPT 8-09 Agenda