Funding Options What are your choices? A4LE Annual Convention & AGM Friday, January 29, 2016

Ministry of Education Infrastructure Funding Programs Major Capital Program Emergent Funding Program Relocatable Classroom Program Preventative Maintenance & Renewal (PMR) Funding Program Plant Operations & Maintenance Funding

Major Capital Program Projects requiring significant planning & resources. Funding dependent on budget appropriation. Designed to provide funding for projects identified as requiring significant planning and resources to achieve additional space to a school, facilitate the construction of a new school, or a major renovation. Funding is dependent on the ministry’s annual budget appropriation as approved by Cabinet.

General Process Ministry ranking components: Health and Safety Efficiency Facility Condition Facility Priority Index (FPI) See Facility Priority Index draft policy information sheet.

Health and Safety Component Ministry’s top priority. Component considerations (1 point each): Site contamination Foundation condition Structural condition (floors, walls, roof) Asbestos, air quality, mold, electrical, etc. Utilization: 1 point > 140% 2 points > 160% See backup document – Existing Capital Project Prioritization Methodology – Health and Safety Component.

Efficiency Component Consolidation of facilities. Additional Weighting Two or more schools combined for educational or economic benefit. Offers expanded curriculum, more community prominence and cost reduction. Additional Weighting two facilities consolidated - 10%. three or more facilities consolidated - 25%. See backup document – Existing Capital Project Prioritization Methodology – Efficiency Component.

Efficiency Component Joint-use/collaborative partnerships Additional weighting for partnerships within one facility. Must enhance educational, health and safety of students. Amount of joint-use space committed determines increase to 5 year projected utilization. Additional weighting 10% joint-use space: increase of 5%; 11-24% joint-use space: increase of 10%; 25% or higher joint-use space: increase of 20%; Maximum efficiency increase per project is 25%.

Efficiency Component Partnership Opportunities: School divisions Schools Other educational partner (ex. regional college) Regional health authority Library Other ministry approved agencies

Facility Condition Component Condition of the building Ameresco condition audits. Blended service life Blended Service Life = [Sum of area X Service Life] / Total area   Where: Service Life = Age of facility / Design life Design life: Masonry/Heavy steel = 50 years; Wood Frame = 35 years; Metal Frame = 20 years See backup document – Existing Capital Project Prioritization Methodology – Facility Condition Component.

Facility Priority Index Facility Priority Index (FPI) Weighs potential combined impacts of components. Ranked in order based on calculated FPI from high to low.

Emergent Funding Program Designed to address emergent infrastructure needs. When insurance payments, PMR funds and existing reserves are no longer available. The program is intended as a last resort for school divisions where insurance payments, PMR funds and existing reserves are no longer available to address the costs of an emergent project. Requests for funding are considered if the ministry determines a major and immediate health and safety concern has resulted. Hutterian schools, associate/independent schools or leased facilities are not eligible for emergent funding. To be eligible for funding, the requests must: Pertain to previously unknown, unforeseeable and unplanned circumstances that require immediate action; Address urgent issues and irritants that pose a health and safety risk to occupants; Demonstrate inability to fund through insurance, PMR and existing ministry restricted capital reserves. Not be used for additional funding requirements, including cost escalation or scope increases. School divisions are required to notify the ministry within two weeks of discovering the health and safety issue. Depending on the nature of the emergency we may require school divisions to submit detailed design documents, cost estimates and/or schedules of work prior to tender and construction. School divisions are required to comply with the New West Partnership Agreement. If funding is approved the first payment will be provided upon receipt of the Construction Confirmation of Contract Award (CCA). The final payment will be provided upon receipt of the Certificate of Substantial Performance of Contract (C-1). The CCA must be received by the ministry within six months of the date of ministry written approval. If the CCA is not submitted within six months, funding may be revoked. Emergent funding for 2015-16 is $4.61 million.

Relocatable Classroom Program Addresses immediate needs for additional classroom space. Moving or relocating as enrolment fluctuates. Background on the program: The Ministry of Education’s revised relocatable funding program began with a 2013 request for proposals for the supply of new units. This program standardized the design and encouraged price competition for suppliers as well as the sharing of lessons learned among school divisions. In a period of rapid enrolment growth, the program has optimized the number of relocatable units that can be purchased or moved with the available program funding. How the program works: The distribution of relocatable classrooms will be awarded to schools with the highest utilization rates. The amount of available relocatable classrooms to be distributed each year as well as the movement of existing relocatable classrooms will depend on available funding from the annual budget process. Ministry approved relocatable classroom requests are announced on the release day of the annual provincial budget. The ministry provides a maximum of $325,000 in the Regina and Saskatoon areas and $400,000 in all other areas for each new portable classroom. The ministry also provides a maximum of $60,000 for the relocation of each relocatable classroom. Any costs incurred by the school divisions above the maximum ministry contributions are the responsibility of the school divisions. The ministry will review actual costs each year to assess the need to increase funding. School divisions are required to ensure there is an opportunity for competition to supply or move their relocatable classrooms by following the tender process. School divisions are encouraged to order factory-built units but have the flexibility to order site-built units to meet their circumstances. All units must meet specified design and quality requirements. Funding must be returned to the ministry if not used for expenses of the program. Funding provided in 2015-16 is $10.62 million which allowed the ministry to supply 31 new relocatables and funding to relocate 3 existing relocatables.

Preventative Maintenance & Renewal (PMR) Funding Program Designed to assist with infrastructure maintenance and renewal costs. PMR funding is to be used for the planned maintenance and renewal of all facilities owned by a board of education. Allows school divisions to maintain facilities in satisfactory operating condition. Hutterian schools, associate/independent schools and leased facilities are not eligible for PMR funding. The funding must be used to ensure: Facilities meet all regulatory requirements; Facilities meet access requirements and intensive support needs; Educational areas meet program requirements; Major building components are maintained, repaired or replaced based on lifecycle expectancy; and Components are upgraded or replaced to improve energy conservation and efficiency that will result in cost savings. The annual distribution of PMR funding is based on the gross floor area of all schools owned by a board of education. The funding can’t be used for: Expanding or adding to the gross floor area; Renovating or altering facilities to establish other ministry programs (e.g. Prekindergarten and school-based child care centres); Moving relocatables; Purchasing or installing playground equipment; or Funding facility operational and instructional expenses including, but not limited to, salaries and utilities. Funding provided to school divisions in 2015-16 is $27 million.

Plant Operations & Maintenance Funding Day to day building operating and maintenance costs. Within the Funding Distribution Model is the Plant Op & Maintenance component. The component allocates funding to school divisions for conducting the plant operation and maintenance activities of their schools. The funding addresses the building operating costs for the schools in the division. Operating costs for maintaining school grounds, teacherages, storage facilities, maintenance workshops and warehouses are also recognized in this component along with a sub-component to recognize minor renovations. Funding provided to school divisions for minor renovations in 2015-16 totals $29.57 million in addition to PMR funding of $27 million.

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