THE BOARD OF EDUCATION OF SCHOOL DISTRICT 68 ACTION SHEET

TO: FROM: DATE: SUBJECT:

Business Committee Pete Sabo, Director of Planning and Operations Brent Spohn, Facilities Planning Supervisor March 13, 2014 2014/15 Annual Facility Grant (AFG)

REFERENCE: 2014-15 AFG Plan Enhanced Facilities for Learning Priorities (1 page attached). BACKGROUND: Each year the Ministry of Education announces the amount of the Annual Facility Grant, to be used by the Districts for projects that meet Ministry of Education Policy 1.1.100. DISCUSSION: The Ministry of Education is expected to announce status quo AFG funding on or about March 15, 2014. For 2013-14 School District 68 was allocated a total of $2,613,085. The operating portion was reduced by a contribution of $70,946 toward the continuing implementation of Capital Asset Management Services. A further, yet unknown, contribution to the Ministry initiative to upgrade PL Net is anticipated. It is expected that all school districts will have to provide the Ministry with 2014-15 AFG plan and cash flow before any funding is allocated. Past practice suggests that the Ministry of Education will also advise School Districts that: Existing AFG balances must be fully utilized. Once the operating portion of the allocation is expended a Certificate of Approval for the capital portion of the allocation will be granted. A capital bylaw will be required before the Certificate of Approval is issued. A plan for the expenditure of this anticipated AFG funding has been developed considering the following: Priority support for the Ten Year Enhanced Facilities for Learning Plan. The remainder of the plan varies from past years as some high priority District wide annual programs including roof replacement, flooring, and painting have been reallocated to support the District priority. This work becomes portions of 10-Year Plan projects. Painting, roofing, flooring and other trade work will be done but in varying amounts as needed to support the focused goals of the District.

S:\FACdept\AFG\2014-15 AFG\PRESENTATION PACKAGE\ACTION SHEETS\March 10\AFG Action Sheet - 2014-15 100314 1438.docx

Page 2 IMPLICATIONS: The AFG process for the next few years is considerably different from past years. Ten-Year Plan priorities have put significant budget pressures on the 2014-15 & 2015-16 AFG cycles Planning, budgeting and implementing Ten-Year Plan priorities is complex Educational planning is dynamic and continually evolving The consequence of limited and dynamic planning is less certainty Less certainty regarding facilities requirements Less certainty regarding budgets The jeopardy and risk of completing major capital projects like the Cedar Conversion with Annual Facility Grant funding are noteworthy: o Capital projects can span more than one year (as does the Cedar Conversion) o Annual Facility Grant funding cycles are fixed and funding cannot be carried over o Annual Facility Grant funding for 2014-15 has not been announced o Funding for 2015-16 is not assured and will not be announced for approximately one year o Established timelines limit planning time o Limited and/or incomplete planning makes cost estimates less reliable o Larger contingencies and a choice of fall back options are required

The table below summarizes proposed spending by Ministry AFG category:

# 1 2 3 4 5 6 7 8 9 10 11 12 MINISTRY AFG CATEGORY Roof Replacements Mechanical System Upgrades Electrical System Upgrades Facility Upgrade Loss Prevention Projects Functional Improvements Technology Infrastructure Upgrades Site Upgrades Disabled Access Asbestos Abatement Health and Safety Upgrades Site Servicing TOTAL ALLOCATED BUDGET EMERGENT PROJECTS AND CONTINGENCY CAMS CONTRIBUTION ESTIMATED PL NET UPGRADE CONTRIBUTION TOTAL ANTICPATED FUNDING BUDGET % OF BUDGET 4.3% 10.74% 10.74% 0% 0% 69.28% 1.93% 0% 0% 3.01% 0% 0% 100.00%

$100,000
$250,000 $250,000

$0 $0 $1,612,500 $45,000 $0 $0 $0 $70,000 $0 $2,327,500 $305,687 $70,946 $60,000

$2,613,085

RECOMMENDATION: That the Business Committee recommends to the Board of Education that the 2014-15 Annual Facility Grant Plan in the value of $2,613,085 be approved.

ANNUAL FACIITY GRANT - PROPOSED THREE YEAR PLAN SPENDING FOCUS: 10-YR ENHANCED FACILITIES FOR LEARNING PRIORITIES
AFG YEAR

Program or project Cedar Secondary - Conversion to Elementary (10 Year Plan) John Barsby-Cedar Secondary Consolidation (10 Year Plan) Ladysmith Secondary Grade 7's - Cedar Secondary Consolidation (10 Year Plan) NDSS-VAST Consolidation (10 Year Plan) Ladysmith Primary-Ecole Davis Road Consolidation (10 Year Plan) Ladysmith Intermediate-Ecole Davis Road Consolidation (10 Year Plan) North Oyster-Ecole Davis Road Consolidation (10 Year Plan) Strategic Energy Management Plan Priority Boiler Replacement Maintain Pea Gravel Levels at Playground Equipment Re-roofing Program Information Systems Upgrades Top Dress Playfields Provincial PL Net Upgrade Contribution Capital Asset Management Services Flooring Replacement Program Pre-painting repairs to facility exteriors Exterior Painting Program Capital Upgrades - Portables Non-Structural Seismic Program Anti-Vandalism Inititiatives Contingency

Comments $2M implemented over two AFG years. Budget amounts are based on a Class "C" estimate provided by Unitech Construction Management. Project is comprised of core alterations required to convert from a secondary to an elementary based on expected enrollment. 2013-14 includes renos to Life Skills and part of the Home Economics project. 2014-15 project will complete the Home Economics renovation and undertake a Textiles room renovation. Minor alterations to three or four rooms in the school are required in the school to accommodate incoming Grade 7's. Re-open three portables currently on site. Alterations to Rooms 164 &166 and relocation of 3 portables from Five Acres to NDSS in support of the Junior Learning Alternatives construction program. Relocate portables from Davis Road to Ladysmith Primary and provide supporting infrastructure. Receiving school enhancements or alterations follow in subsequent years if necessary. Open closed rooms as required. Receiving school enhancements follow in subsequent years if necessary. Open closed rooms as required and relocate displaced functions in 2014-15. Receiving school enhancements follow in subsequent years if necessary. The Strategic Energy Management Plan objective for 2014-2015 is to meet BC Hydro Energy Manger Electrical Reduction targets with the installation of automated lighting controls. Priority life cycle boiler replacement subject to the financial requirements of 10-Year Plan projects being satisfied. This project is a priority Maintenance Department safety item. Year 1 and Year 2 have Roofing Program funding is reallocated to 10-Year Plan Initiatives. This budget partially funds the roofer's salary. This funding maintains the existing program and supports the District's "IT Strategic Plan". This project is a priority Maintenance Department safety item. Placeholder for anticipated Ministry of Education mandated initiative. Ministry of Education mandated contribution to province-wide Capital Asset Management Services. Funding for Year 1 and Year 2 of this ongoing program has been reallocated to flooring replacement in support of the 10-Year Plan. Funding for Year 1 and Year 2 of this ongoing program has been reallocated to pre-painting repairs in support of the 10-Year Plan. Funding for Year 1 and Year 2 of this ongoing program has been reallocated to painting in support of the 10-Year Plan. Funding for Year 1 of this ongoing program has been reallocated to portable moves in support of the 10-Year Enhanced Facilities for Learning Plan. Funding for Year 1 and 2 of the ongoing program has been reallocated to non-structural seismic in support of the 10-Year Enhanced Facilities for Learning Plan. Funding for Year 1 of this ongoing program has been reallocated to anti-vandalism initiatives in support of the 10-Year Enhanced Facilities for Learning Plan. Significance of 10-Year Plan spending and unknowns make carrying a contingency fiscally prudent. If available, contingency will also fund emergent high priortity school based projects (subject to review and approval by Learning Services).

Recommended 2014-15 $1,000,000 $120,000 $150,000 $142,500 $200,000 $0 $0 $250,000 $250,000 $45,000 $100,000 $45,000 $25,000 $60,000 $70,946 $0 $0 $0 $0 $0 $0 $154,639

Proposed 2015-16 $1,000,000 $200,000 $0 $85,000 $25,000 $25,000 $25,000 $250,000 $250,000 $45,000 $200,000 $45,000 $25,000 $0 $70,946 $0 $0 $0 $25,000 $0 $20,000 $322,139 2016-17 $0 $475,000 $0 $0 $25,000 $25,000 $25,000 $250,000 $350,000 $45,000 $600,000 $45,000 $45,000 $0 $70,946 $100,000 $50,000 $100,000 $25,000 $85,000 $20,000 $277,139

Status quo AFG funding Variance

Total

$2,613,085
$2,613,085

$2,613,085
$2,613,085

$2,613,085
$2,613,085

$0

$0

$0

S:\FACdept\AFG PROJECT PLANNING\AFG 2013-14\PLANNING\ADVANCE PLANNING\MAR 2014\10\Multi Year AFG Cash Flow 100314.xlsx