School Closure Moratorium Committee September 27, 2011

Leasing Leases can be accommodated in surplus space. Not-for-profit groups are exempted in the ACU calculation 1 year leases based on provincial regulation Generated $3.37 million or 0.4% of the approved district budget of $831 million The overall revenue does not recover operating costs Does not provide additional funding for teaching and learning

Lease Categories There are a number of lease rate categories For-profit organizations pay a higher lease rate than those that are not for profit. Organizations that utilize the lease space less frequently pay a lower rate than those that utilize the space more frequently. For-profit tenants provide revenues which the district uses to keep not-for-profit rates lower.

Lease Category Examples Category A Educational Services Partnerships Category B Not-for-Profit Pre-School Category C Not-for-Profit Child Care Category D For-Profit Child Care Category E Public Sector Category G Direct Service to Students Category H Decentralized Administration Category I Adult Daycare Programs Category J Language Schools and Churches Category K Charter Schools and Other Districts

Lease Rates September 2011 is the third year of Lease Rate and Revenue Distribution plan. There is no surplus revenue generated with the lease rates. All lease revenue is allocated to pay for school costs, utilities and capital investment to leased space. For-profit leases are pooled with revenue from Not-for-profit leases and redistributed to all schools at a standard rate of $1.95 per m 2

Leases in Operational Schools YearNumber of Leases m 2 LeasedRevenue ,202$1,191, ,709$1,264, ,560$1,597, ,801$1,755, ,296$1,986,202 Percent Change +29%+80%+67%

Leases in Operational Schools

Utility Rates A portion of rent revenue Utility cost are paid centrally District utility rates negotiated centrally Costs are averaged Older, less energy efficient buildings

Custodial Services Most lessees clean their space School custodial staff sometimes used School custodial costs are recovered from the tenant All custodial service funds collected are returned to the school providing the service

Capital Renewal Fund Deductions Capital upgrade funding cannot be used on leased space Retention of Capital Renewal Funds from lease revenue initiated in

One Leased Classroom - For Profit Daycare (80 m 2 ) One Leased Classroom - Not For Profit Daycare (80 m 2 ) Monthly Lease Rate (Effective September 2011) $8.25/m 2 $4.90/m 2 Gross Monthly Lease$660.00$ Deduction for Utilities (Paid centrally) $96.80$92.00 Deduction for Capital Renewal Fund (Paid centrally) $407.20$ Net Lease Paid Monthly to School ($1.95/m 2 ) $ Example of For-Profit vs Not-for-Profit Daycare Lease Rates

Operational School Leases District# Schools# Leases# LocationsLeased Area in m 2 Edmonton Public Edmonton Catholic Calgary Board of Education

Leases in Non-operational Schools Yearm 2 LeasedRevenue ,440$290, ,600$645, ,769$678, ,581$650, ,252$1,084, ,588$1,391,212 Percent Change +202%+379%

Leases in Non-operational Schools Closed schools housing Charter and Francophone schools will receive $1.00 per year as annual rent Loss of $856,000 per year by school year PO&M funding will be provided to the lessee district The host district will be eligible for Infrastructure Maintenance Renewal Funding

Leasing Challenges Commercial rates not realistic Lease terms limited to 12 months (School Act-Disposition of Property Regulation) The District cannot provide capital improvement incentives common in commercial rates Urban Services zoning applied to public school sites

Leasing Challenges Significant changes can trigger unfunded building code upgrades Profit-taking through leasing could threaten property tax exempt status Joint Use Agreement relationship with several City of Edmonton departments Student safety Unfair competition with the private sector

New Initiatives Leasing Database and Space Management System Schedule D Tenant Improvements/Renovations ensure district standards are followed approved vendors and products ensure that Maintenance Services has an opportunity to bid on the work Green Cleaning in Tenant Spaces Legal documents rewritten in plain language Social and ethical clause to reflect new Board Policies

Questions