facilities board meeting presentation

Coatesville Area School District

Facilities and Operations Department

Report and Recommendations for Improvements and

Budgetary Savings

Developed by theChester County Intermediate Unit

Presented to School Board of Directors

March 10, 2015

Objective

The Coatesville Area School District administration requested that the

Chester County Intermediate Unit (CCIU) perform a facilities condition and

departmental performance audit. The CCIU was asked to develop

recommendations for improvements in all areas including:

1. Overall Management of the Facilities Department.

2. Effectiveness of the Maintenance Practices for the Buildings, Systems,

and Infrastructure.

3. Performance of the School District Custodial Staff.

4. Purchasing and Inventory Management.

5. Opportunities for Budgetary Savings.

2

Background on The Chester County Intermediate Unit

• Serve the 12 school districts in Chester County and

numerous others throughout the Commonwealth.

• One of 29 regional education agencies in PA that

served over 163,000 people last year.

• 38,000 Students

• 125,000 Teachers and Adults

• Major services include:

• Special Education and Student Services

• Career, Technical and Customized Education

• Mentor Training and Staff Development

• Technology Initiatives and Curriculum Services

• Consortia for School Business Operations

• Communications and Legislative Services

• Our mission is to provide services that can be

offered most economically at the regional level.

3

The Chester County Intermediate UnitFacilities Management Success

Construction Management

• 410,000 s.f in new construction projects.

• Construction of two vocational schools and one

Educational Services Center.

• Over 703,000 s.f in renovation projects.

• Project management for Downingtown and

Kennett School Districts.

Operations Management

• Currently manage 2,031,000 s.f. of buildings.

• Managing the Facilities and Operations at both

the Avon Grove and Octorara Area School

Districts.

• Provided supervisory and skilled mechanic

staffing to Phoenixville and Bristol Township

School Districts.

• CCIU electricity management programs have

saved $1,845,267 since 2007.

• Awarded $500,000 solar energy grant.

• Joint Purchasing Program saved school

districts and municipalities over $3.4 million

last year.

4

The Chester County Intermediate UnitFacilities Management Success

• Recognition of unique school operational

requirements.

• Understanding of collective bargaining

agreements and benefit costs.

• Strategies to address budgetary challenges

created by Act 1 and economic climate.

• Sensitivity to community and employee

concerns.

• Objective analysis of existing school district

operations.

• Data driven recommendations and logical

implementation plans.

• High customer service standards.

• Contract agreement developed by

Pennsylvania School Boards Association

(PSBA) counsel.

5

Project Team for Coatesville Area School District

Dr. Cathy Taschner, Superintendent

Ron Kabonick, Business Administrator

Joe Lubitsky, CCIU Director of Administrative Services

Paul Thompson, CCIU Director of Operations

John Cramp, CCIU Dir. of Facilities Management and

Support Services

Steve Crockett, CCIU HVAC-Energy Management Specialist

James Morgitan, Buildings Supervisor, TCHS – Phoenixville

Anthony Lewis, Facilities/Custodial Services Consultant

6

Project Timeline

December 2014

Define scope of work with leadership teams.

January 2015

Meetings with facilities staff, building principals, and key internal customers.

Place two experienced buildings and grounds supervisors in the school district to assist with daily management responsibilities.

February 2015

Full integration of CCIU staff into daily CASD operations.

Complete buildings and grounds audit.

Review departmental structure and responsibilities, staffing procedures, collective bargaining agreement(s), performance evaluation criteria.

Assess procurement procedures and inventory control.

Evaluate office procedures and prioritization of work orders and requests.

Review budget process.

March 2015

Provide preliminary report and recommendations.

7

Overview of Coatesville Area School District Facilities

Name Approx. Square ft. Constructed

Coatesville Area High School 264,000 1965

Grades 9/10 Center 196,976 1993

South Brandywine Middle School 99,366 1958

North Brandywine Middle School 99,360 1958

Scott Middle School 138,665 1938

Kings Highway Elementary School 54,651 1953

East Fallowfield Elementary School 38,864 1939

Rainbow Elementary School 115,000 2007

Caln Elementary School 61,364 1926

Friendship Elementary School 49,972 1960

Reeceville Elementary School 66,440 1990

Benner Building (Alternative Education) 54,022 1938

District Office 36,000 1980 EST.

8

Facilities and Budget Related Factors Considered

1. Staffing changes from retirements, termination, and elimination of positions.

2. Fiscal climate and resulting budgetary constraints.

3. Possible reallocation of existing staff resources to improve efficiencies.

4. Potential savings through energy management programs.

5. Dedication of the staff to the school district.

6. Impact of facilities issues on educational programs.

7. Perception of key internal customers and stakeholders.

8. Public perception.

9. Impact of major capital projects.

9

Facilities Department Structure: 2013-2014

10

Facilities Department Perceptions of Internal Customers and Stakeholders

(based on interviews with professional staff and principals)

• Lack of consistency

• Lack of leadership

• Poor performance

• Poor communications, poor responsiveness and lack of follow-through

• Lack of any comprehensive facilities planning

• Lack of inclusion

• Confusion regarding departmental structure and procedures

• Lack of ownership and pride

• Lack of accountability

11

Facilities Department Sample Feedback from Internal Customers and Stakeholders

• “The venetian blinds in several classrooms had been broken and torn, hanging askew, for three years despite repeated requests for replacement”.

• “Roof leaks were reported throughout the school necessitating trash cans being placed in classrooms and hallways.”

• “The building has been so cold that teachers were wearing gloves and students were wearing coats.”

• “The wheel chair lift, installed several years ago, has been inoperable for two (2) years despite repeated requests for repairs.”

• “The professional staff are “demoralized and frustrated” with the lack of interest or “caring” of the facilities department relative to the maintaining of their schools.”

• “Bathrooms are filthy.”

• “Grounds crews mow grass but don’t clean up, there is no consistent lawn care schedule, there is no edging and trimming, the courtyards look terrible, beds need to be mulched, no one seems to care, no one takes pride in their work”. The main campus (9/10 and CASH) is well taken care of but other schools are forgotten.”

12

Examples of Poor Management and Staff Supervision

13

Examples of Poor Management and Staff Supervision

14

Examples of Inefficient Purchasing and Inventory Control

15

Examples of Inefficient Purchasing and Inventory Control

16

Examples of Lack of Planning and Incomplete Capital Projects Management

17

Examples of Lack of Planning and Incomplete Capital Projects Management

18

Examples of Lack of Planning and Incomplete Capital Projects Management

19

Student and Staff Safety Concerns

20

Student and Staff Safety Concerns

21

Student and Staff Safety Concerns

22

Lack of Pride in Work and Common Sense

23

Lack of Pride in Work and Common Sense

24

Proactive Measures Taken to Address Facilities Department Challenges

The current Coatesville Area School District School Board and Administration recognized the problems and have initiated corrective action to address the Facilities and Operations Challenges:

1. Elimination of ineffective organizational structure.

2. Elimination of redundant or unneeded positions.

3. Budget development within fiscal constraints.

4. Reconciliation of inventory and call for accountability.

5. Cancellation of expensive solar power project that had questionable cost : benefit and return on investment.

6. Commitment to model best practices in facilities management.

25

Facilities Department Structure: March 2015

26

Departmental Restructuring Options

Option One: Hire New Employees at Market Rates to Manage Facilities and Operations

27

Departmental Restructuring Options

Option One: Hire New Employees at Market Rates to Manage Facilities and Operations

Advantages

District maintains control.

Traditional staff structure.

Some cost savings.

Disadvantages

Lack of flexibility.

Availability of quality candidates with school district experience.

Staff retention in the future and potential for staff performance issues.

New staff would not be familiar with current processes and procedures.

Potential for more of the same problems?

This Option is Not Recommended

28

Departmental Restructuring Options

Option Two: Outsource Management of Facilities and Support Services to the CCIU

29

Departmental Restructuring Options

Option Two: Outsource Management of Facilities and Support Services to the CCIU

Advantages

1. Continuity of services and availability of additional facilities management

resources at CCIU.

2. Avoid cost and uncertainty of hiring district facilities management personnel.

3. Added flexibility while maintaining traditional structure for staff and systems.

4. Facilitate future outsourcing of custodial and grounds keeping services.

5. Assistance with energy management initiatives to offset costs.

6. Some cost savings.

Disadvantages

1. Cultural acceptance of the change in management approach.

2. Existing problems require a more comprehensive solution.

3. Time frame for measurable positive results is extended.

4. Lost opportunity to combine significant budget savings with improved services.

This Option is Not Recommended

30

Departmental Restructuring Options

Recommendation

Option Three:Introduce outsourcing for the facilities operation as follows:

1. Engage the CCIU for overall management of the department.

2. Engage the CCIU to oversee the HVAC and energy management systems.

3. Outsource all day and evening custodial services to ServiceMaster.

4. Outsource grounds maintenance to The Brickman Group.

5. Continue to evaluate the need for district employed tradesman based on workload, performance, and availability of cost effective outside services.

31

Departmental Restructuring Options

Option Three: Outsourcing of Facilities Management, Custodial and Grounds

32

Departmental Restructuring Options

Option Three: Outsourcing of Facilities Management, Custodial and Grounds

Advantages

1. Significant cost savings ($1,200,000).

2. Elimination of large future PSERS cost component.

3. Elimination of significant healthcare benefit cost components.

4. Reduced exposure to Affordable Care Act penalties in the future.

5. Increased flexibility and expanded resources.

6. Better coordination of services.

7. Energy management initiatives incorporated into scope of work.

Disadvantages

1. Staff reductions/reassignments are challenging within organized labor environment.

2. Cultural change within district.

3. Some loss of direct control by school district.

This Option is Recommended

33

Additional Recommendations for Facilities and Operations

1. Relocate the Facilities Department offices to District Administration Building.

2. Custodial staff should report to the Facilities Department management, not to the

school principals.

3. Engage an architectural and engineering firm to perform a district wide facilities audit to

assist with a long range strategic capital improvement plan.

4. Obsolete storage trailers and the contents of these located near the 9/10 Center should

be sold at public auction.

5. Establish departmental procedures to manage inventories of supplies and equipment

and to base future orders on actual utilization history.

6. Take advantage of the no cost or low cost safety consulting services available through

the CCIU and then implement the school safety audit recommendations.

7. To improve responsiveness, allow use of cell phones with appropriate controls.

8. Introduce an energy management program based on the models used successfully in

other districts.

34

Successful Energy Management Programs Reduce Overhead Costs

35

0.43

0.34 0.36

0.35 0.35 0.33

0.37 0.38

0.32 0.31

0.27 0.27

0.23 0.25 0.25

0.2

0.25

0.3

0.35

0.4

0.45

2nd Qtr2007

4th Qtr2007

2nd Qtr2008

4th Qtr2008*

2nd Qtr2009

4th Qtr2009

2nd Qtr2010

4th Qtr2010

2nd Qtr2011

4th Qtr2011

2nd Qtr2012

4th Qtr2012

2nd Qtr2013

4th Qtr2013

2nd Qtr2014

Ele

ctr

ic C

ost p

er

Squ

are

Fo

ot

Energy Conservation Efforts by CCIU Employees and Studentshave Enabled Us to Avoid $1,845,267.07 in Electricity Costs since 2007!!

Coatesville Area School District

Facilities and Operations Department

Report and Recommendations for Improvements and

Budgetary Savings

Questions or Clarifications?

36