Loading...
HomeMy WebLinkAbout14 Report 00-149 Facilities and Physical Planning, Better Schools Partnerships: Next Stepsi 6 T"_j OTTAWA-CARLETON DISTRICT SCHOOL BOARD 12 June 2000 Report No. 00.149 to Board Re: Facilities and Physical Planning - Better Schools Partnership: Next Steps ORIGINATORS: Rose -Marie Batley, Superintendent of Facilities and Physical Planning PURPOSE 1. To seek approval from trustees regarding the next steps in the Better Schools Partnership (BSP) as outlined at the May 10, 2000 Briefing Session with trustees and senior staff. (See covering Notes from the session in Attachment A.) BACKGROUND 2. Strategic planning in Facilities and Physical Planning was initiated in November 1999. An outcome of this planning has been the development of a vision for the departments (Planning, Plant, Transportation), which would transform them from isolated areas of expertise and responsibilities to an integrated team focusing on service which adds value in achieving the goals of the system. 3. The departments recognized the success of this vision depends on moving away from the status quo in terms of processes. It is unlikely provincial funding will increase to the extent required to address our needs. 4. To this end, the Better Schools Partnership Facilities vision was developed. Now in its fifth version (Attachment B), the vision incorporates four internal and four external partnerships. Working in these partnerships will facilitate the delivery of better services, better facilities, and the development of practices which enable the departments to work smarter, not harder. 5. The BSP vision addresses the needs and goals identified in the strategic planning. These include system outcome needs (e.g., improving competitiveness, image, reducing costs), employee needs (e.g., improving morale, development of an effective and efficient organizational structure), and process needs (e.g., improving positioning with respect to the Accountability Framework, development of a strong business case for additional funding). 6. Operational outcomes for five areas (asset management, service quality, energy management, information systems, and communications) have been examined. These desired outcomes are delineated in Attachment C. ,q9• 7. The Ottawa- Carleton District School Board has a facility inventory of approximately $1 billion. Currently there is a backlog of maintenance estimated to be somewhere in the magnitude of $100 M. (See graph in Attachment D.) This gap will continue to accumulate into the future. (The software ( RECAPP) being used to determine facility analysis will provide a better estimate of this maintenance backlog.) This outstanding liability addresses facility age - related issues only; it does not address the program needs or changing curriculum requirements. STATUS The immediate goal is to be proactive in arranging funding to implement the Facilities Strategic Plan in September 2000 to address some of these needs. 9. In order to realize the Better Schools Partnership vision, additional funding is required for the implementation of the service quality system, the energy management and the communications component. The two major sources of funding are labour and energy. 10. Labour costs and productivity are areas which will be addressed in the process of restructuring the department. Results of the mini - review in Transportation and KPMG Plant Audit will be instrumental in the restructuring decisions. Quality standards and assessment will be implemented. (The department is currently investigating ISO standards.) 11. The Ottawa - Carleton District School Board has an Energy Performance Contract (EPC) with DukeSolutions. This program, approved in December 1997 by the former Carleton Board of Education, invested approximately $14.7 million into energy retrofits of schools. This investment, plus related interest costs, are paid back by the utility cost savings that are realized by the Board over the next 9 to 10 years. The utility cost reduction is $2 million per year which the Board needs to fund the initiative. 12. A description of the EPC and its status are included in Attachment E. 13. DukeSolutions has proven to be a reliable partner in the current retrofit project. They have added significant value by helping Facilities and Physical Planning to fund the RECAPP capital asset management software and the strategic planning for the departments while remaining within the current project and meeting our payback targets. 14. Energy costs are a proven source of savings. Either energy retrofitting takes place resulting in reduced energy costs, or energy reductions are not realized if the status quo is maintained. 15. It is estimated that there is approximately $1 M in energy cost reductions by extending similar energy retrofits to those sites not included in the current contract depending on the payout period. If new retrofits measures are added (e.g., window retrofits), the cost reduction could increase. More accurate estimates require the investigation of specific sites and the development of a more detailed plan. 16. Over the summer, Facilities and Physical Planning would investigate the following areas: 16.1 the feasibility of extension of energy efficient measures for all schools; 16.2 the details of a service quality initiative; 16.3 details of a communications program which would describe the current situation, outline the price of status quo practices and provide for presentation of the Better School Partnership through various media; and 16.4 improved information technology to integrate the departments. C110 17. Areas that require scrutiny and assessment include a financial model for the Better Schools (W Partnership, the congruence of the model with the Board's procurement protocols, the possibility of an extension of the current EPC and DukeSolutions partnership, and the details of a recommended solution. 18. DukeSolutions is willing to work with staff to investigate the possible savings and strategies remaining in an energy retrofit and to assist in the development of a solution. A draft process for the summer and fall activities is included in Attachment F. RECOMMENDATIONS A. That staff works with DukeSolutions to investigate the additional energy savings available to the Board, and B. That staff bring back to Board in the fall of 2000, as part of the Long Term Accommodation Plan, the results of such an investigation and a recommended strategy for the implementation of the Better Schools vision. James P. Grieve Director of Education/ Secretary of the Board 44- Rose -Marie Batley Superintendent of Facilities and Physical Planning :51'. Attachment A 0 .ML OTTAWA CARLETON DISTRICT SCHOOL BOARD Notes on Trustee Briefing on Better Schools Partnership Strategy May 10, 2000 7:30 - 9:30 p.m. On May 10, abriefing session was held for trustees to acquaint them with a creative solution for facility renewal partnerships as a part of the long term accommodation plan. (Appendix A: Notice of Meeting; Appendix B: Agenda.) Trustees present included Cynthia Bled, Alex Getty, Lynn Graham, Patty Anne Hill, Andrew Lam, Jim Libbey, Pam Morse and Lynn Scott. Staff present included Rose -Marie Batley, John Brennan, Jim Grieve, Dan Mason and Judy Turriff. Presenting guests were Morris Berengut, Vice - President of Planning Associates, and Mike Worsfold of Partnering Designs Inc. The presentation included a review of the strategic planning process, which has been taking place in Facilities and Physical Planning. The department has developed a "Partnering Vision and Goals for Improving Value" (Appendix C); this is a document in progress, now in its fourth version. The vision centres around the "Better Schools Partnership ", a concept developed by DukeSolutions Canada Inc. It includes four internal partnering relationships (with management, schools, employees and other central departments) and four external supplier partnering goals (related to energy management, custodial management, building and grounds maintenance management and renewal /capital asset management). In order to contribute to the better schools vision, Facilities and Physical Planning will develop action plans to develop partnerships with these eight centres. The department's strategic plan will be part of the Director's integrated plan. Facilities and Physical Planning has purchased the capital asset management software, RECAPP, (Real Estate Capital Asset Planning Priorities) which will create a model of the Board's building portfolio, prioritize facility renewal needs, and assist in the completion of Ministry reports required each year in the Accountability Framework (e.g., School Condition Report, School Renewal Report). (Notes on the Accountability Framework are provided under separate cover.) Early estimates of the OCDSB's deferred, unfunded liability in facilities are $70- $1001v1. This liability continues to grow each year. The aspects of the Strategic Plan were outlined (Appendix D). Funding is required for both building renewal and organizational renewal. One source of funding is through energy cost reallocation. This strategy allows the Board to invest in its buildings now and repay the loan through the reduced energy costs. This allows an earlier impact on our learning environments and assists to position the Board with a stronger business case to take to the MOE for additional funding. The OCDSB currently has an Energy Performance Contract (EPC) and partnership with (W DukeSolutions (see Appendix D for additional information). Energy retrofits have been completed in approximately 70 schools and at 133 Greenbank Road. The current EPC represents an investment of approximately $14.5M in our buildings which is guaranteed to reduce related energy costs by $2M per year. The term of the loan for this contract is 10 years. Within the Better Schools Partnership vision, the department has an opportunity to create another contract with DukeSolutions to complete similar energy retrofits in those sites not yet addressed, as well as additional renewal activities which would further reduce energy costs (e.g., window retrofits) and which would enhance the development of some of the other partnering opportunities within our strategic plan. It is an opportunity which would allow the OCDSB to address its school renewal problems sooner. Some of these strategies were outlined by Mike Worsfold at the meeting. At the June 12 Board meeting, a written report will be provided which outlines activities which need to be addressed over the summer in order to develop the Better Schools Partnership section of the Strategic Plan and the Long term Accommodation Plan. (These plans will come to trustees in late September and early October 2000.) Some of these summer activities will require assistance from DukeSolutions. Thank you to those trustees who attended the session and we welcome your feedback and suggestions. 94�L - 192� Rose -Marie Batley Superintendent of Facilities and Physical Planning OTTAWA — CARLETON DSB FACILITY SERVICE'S Fifth Revision PARTNERING VISION AND GOALS -FOR IMPROVING VALUE 5/24/00 Manat?ement Partnerine Goals *Develop long term Facilities Strategic Plan to maximize returns. Treat Facilities as a strategic asset - an enrolment driver and revenue generator vs a cost liability. Maximize conversion of trapped equity in operational costs to revenue for school renewal. Invest in Facility Service's organizational renewal to significantly improve productivity, service quality and strategic value. -Provide better communication of financial situation to facilitate support for asset management decisions. -Measure and communicate performance improvement internally and externally to get better recognition for enhanced education quality, fiscal performance and environmental stewardshi p. -Enable Management to demonstrate accountability to Government in terms of Facilities . Management and thereby facilitate successful funding requests. Energy Management -Extend and expand the energy management partnership to a comprehensive " energy solution co- management" relationship to maximize recovery of trapped equity, reduce costs, minimize risk and free management time for core business work of higher value. - Reallocate savings to age related and program related school renewal. (See Asset Management) •Investment of some savings in organizational renewal designed to increase management leverage and improve operational productivity and service quality. ( Custodial and Maintenance Management) School Partnering Goals -Develop a Service Quality Partnering System to involve principals in process redesign and continuous service quality improvement. -Measure Service Quality and Partnering improvements and communicate progress at least annually. -Support Principals in partnering with School Councils EmDlovee Partnering Goals - •Install Continuous Improvement Process based upon shared goals to be more competitive, improve morale and quality of working life. Cross - Functional Partnerinia Work with other departments to streamline cross - functional processes for mutual benefit and for the benefit of the customer. SUPPLIER PARTNERING GOALS Custodial Management - Establish a supplier partnership to make us leaders in terms of procurement and inventory costs as well as operational productivity and service quality. • Free our supervisors to be with principals and staff in the field solving and preventing problems. -install a Service Quality System to work with principals, teachers, and students to improve service quality, to enhance the learning environment, and improve the attractiveness of our schools. -Reallocate freed resources and operational savings to school maintenance and renewal. Building and Grounds Maintenance Management -Establish key supplier partnership(s) to deliver maintenance supplies more efficiently to improve service and reduce costs, and to improve staff productivity. • Acquire computerized Maintenance Management System to improve customer communications and improve staff productivity and service quality. -Partner with superintendents and principals to establish enrolment driven appearance standards. -Establish Service Quality Partnering process aimed at improving service responsiveness, quality and cost etlectiveness. Renewal /Capital Asset Management Obtain the resources and support to: • Acquire and integrated management information system for asset life cycle management and maintenance management. • Facilitate the creation and implementation of a long term Facilities Strategic Plan . • Enable us to execute school renewal sooner so as to advance the impact on education quality and enrolment revenues. -Demonstrate fiscal accountability and present compelling business cases to government to obtain increased funding for renewal. -Plan and execute communications strategies to gain internal and external recognition. 9 rt rt w n tD rt od Energy Management • reduced utility cost • improved classroom environment and comfort;;;;: • revenue to pay for school renewal Information Systems • faster, better, quality decisions • fact based decision making platform • improved management leverage e.g. time saving t Quality operating cost A service quality quality index to measure principal Lion -d relationship between principals and ment A emnlovee morale eness a rT n w (o rr W 400 350 300 250 Millions 200 150 100 50 Notes: 2000 2010 2020 Time (yrs.) 1. Estimated unl uIICICCl School Building; Renewal Cap 70 - 1001ViIL. rt rrt 2. Current capital for renewal 8 million plus. 0 3. fwerag;c building age approxim atrly 30 years. � 1'rcxsntnrt �cl�r�crl car /�i�,r! �lu� cnrzsi <lc�al. e May 8,'ni►0 OCDSB v Lo, C4. Attachment E The Energy Performance Contract with DukeSolutions (formerly Tescor) In December 1997, the former Carleton Board of Education approved an energy services agreement with Tescor (now DukeSolutions) that featured an investment in schools of approximately $14.7 million. This investment, plus related interest costs, are paid back by the utility cost savings that are realized by the Board over the next 9 to 10 years. The utility cost reduction created is $2 million per year which the Board needs to fund the initiative. Background Energy retrofit programs of this kind involve the installation of energy efficient technologies that reduce energy consumption and, therefore, utility costs. The OCDSB currently pays approximately $11 million per year for utilities (electricity, gas, oil, propane, and water). There are many steps that can be taken to reduce these costs paid to utilities by as much as 20% to 30% but most take an investment to make the necessary changes. The Energy Performance Contract (EPC) The key elements of the agreement are: a construction period of 24 months (to February 1, 2001); a payback period of between 9 to 10 years (as approved by the Board); the project is financed by the Board to achieve the lowest financing costs; monitoring of the results for the full term by DukeSolutions; and guaranteed savings (compared to the reference year as established in the agreement). Program Benefits increased efficiency leads to reduced cost of operation aging building components are replaced or upgraded providing school renewal new technologies and better system controls improve the indoor learning environment training increases awareness and capabilities of staff to operate and service the schools reduced energy costs are guaranteed Project Status 63 % complete as of May 31, 2000 new or upgraded lighting systems installed in 70 schools and the Administration Building lighting systems were replaced or upgraded in 48 gymnasiums new or upgraded heating plants installed in 20 schools water conservation measures were implemented in all schools on the Regional water system - 63 schools and the Administration Building major drafts and cold air infiltration eliminated in 12 schools as the envelope is improved new building control systems are being installed in 40 schools accompanied by custodian training for more effective control of the classroom environmental conditions upgrades to the 8 existing school control systems and 212 portable classrooms optimize mechanical systems in 15 schools to improve fresh air, heating, and cooling delivery while reducing the cost of this process the curriculum based Destination Conservation Program was initiated in 17 schools participating voluntarily technical training for maintenance staff is ongoing and the energy awareness training for custodians is slated for late 2000 �l- Attachment F Ottawa - Carleton District School Board Better Schools Partnership Process May June July Aug Sept Oct Nov Dec 2001 Productivity Workshop • X � I I Renewal Gap Workshop Jun -08: li Trustee Information Document Jun -12' i I BSP Solution Development I i I Each strategy to include: Objective, strategy, budget, implementation timelines - Energy Efficiency X X X Asset Management X X X Service Quality X X Communications X Information Technology X I X � Financial Model(s) X X Contract Structure i X X X Purchasing Protocol(s) X X BSP Draft Solution II i X Draft solution orientation with major stakeholders j Facilities X Finance X Director ! X Director Council X Preliminary information/communication to X trustees on BSP solution Final BSP solution X Recommendation to Board X X BSP Rollout X X X BSP Community Announcements X