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TRANSCRIPT
Education and Infrastructure
School Capital Planning Workshop
February 21, 2018 – Calgary
February 22, 2018 – Edmonton
Welcome address
Curtis Clarke
Deputy Minister of Education
Shannon Flint
Deputy Minister of Infrastructure
Introductions
School Capital Projects
• Since 2011:
- Over 250 school capital projects announced, with an
estimated total provincial capital commitment of over
$4.5 billion
- Over 800 modular classrooms approved as part of the
Modular Classroom Program
• Currently over 80 projects are in various
stages of planning, design, and construction.
Report of the Auditor General of
Alberta, April 2016
• October 2015 announcement that many
projects would not meet anticipated
completion timelines
• Office of the Auditor General asked to
examine why, and to advise on improvements
• April 2016 report: Education and
Infrastructure – Systems to manage the
School-Building Program
Report of the Auditor General of
Alberta, April 2016
• Recommendations covered many aspects of
the program, e.g.:
– Clarification of roles and responsibilities
– Planning and approval processes
– Systems to manage and control projects
– Change management procedures
– Communication
– Reporting and key performance indicators
– Cash flow and capital funding requests
Report of the Auditor General of
Alberta, April 2016
Number one recommendation:
• Clarify Roles and Responsibilities—We
recommend that the Department of Education
improve its oversight of the school-building
program by:
– working with the Department of Infrastructure to clarify
the roles and responsibilities of each department and
establishing supporting policies and procedures
– developing clear decision-making authorities for the
program
• Our response – a new Memorandum of
Understanding between the two departments
Education and Infrastructure
School Capital Program Management
• Memorandum of Understanding (MOU)
– signed February 17, 2017 by both ministers
– addresses April 2016 OAG report recommendations
• Capital Program management remains status
quo until transition (April 1, 2018)
Governance Structure:
• Address OAG recommendations
• Clarity of roles and responsibilities
• Key performance measures - school projects:
– On-time
– On-budget - supported by a high degree of accuracy in
estimating and forecasting
– Facilities meet the educational needs of students
MOU:
• Defines high level ministry accountabilities
• Education is responsible for:
– Capital Planning and project scope
• Infrastructure is responsible for:
– Implementing assigned school projects
– Providing oversight for jurisdiction managed projects
– Procuring modular classrooms
– Communicating project performance and reporting
School Capital Program Management
Transition
• Program transition includes:
– Budget transfer for active projects announced since
2011, modular program, and future project/modular
approvals
• Close out of completed projects (schools and modulars)
• Capital Program financial reconciliation
– Process updates
– Organizational structure realignment
– School Capital Manual amendment
Transition Implementation by
April 1, 2018:
INFRASTRUCTURE:
• Accountable for project implementation in
support of the School Capital Program
New accountability:
– Oversight for grant funded school projects
– Grant payments, includes FFE and modulars
Enhanced accountability
– Program Reporting – includes reports to Education and
Treasury Board
– Project Communication
Transition Implementation by
April 1, 2018:
EDUCATION:
• Planning/program role of Education and
school jurisdictions remains unchanged
• Infrastructure Maintenance and Renewal
Program (IMR) with Education
Accountability Alignment:
• Inter-organizational oversight/leadership
– Joint Steering Committee – ADM level
– Joint Operations Committee – ED level
• Developing supporting documents
– Redevelopment of School Capital Manual
• Alignment with Capital Planning Process
– Reporting framework and measures review
• Improved support for jurisdiction managed
projects during planning and implementation
• Transparent cash flow and portfolio
management, using standard protocols
Summary
Program transition includes:
• Budget transfer for active projects, modular
program, and future project/modular
approvals
– Close out of completed projects (schools and modulars)
– Capital Program financial reconciliation
• Process updates
• Organizational structure realignment
• School Capital Manual amendment
Infrastructure Updates
Organizational changes
effective February 12, 2018
• Capital Projects Delivery Division
- Brian Fedor – retired
- ADM – Neil McFarlane
• Learning Facilities Branch
Process updates
• Grant Process – overview
• Key contacts / Website links
• Financials
• Reporting
• Modular Classroom Program
• School Capital Manual
• Infrastructure Maintenance Renewal (IMR)
• Area Capacity Utilization (ACU)
Grant Process
Project Approval
• Joint announcement by Education and Infrastructure
Infrastructure accountable for management of:
• Grant Agreements
• Grant Agreement Amendments
• Design and Tender process
• Payment process
Jurisdictions maintain project responsibilities during the
pre-tender, tender, project delivery stages, and project close out.
Key ContactsEducation – Capital Planning Sector is responsible for:
• Capital Planning
• Capital Funding Requests
• IMR Program
Infrastructure – Learning Facilities Branch is responsible for:
• Approved Capital Plan – project implementation
• Project Management Support
• Project Design (meets approved scope)
• Cost Analysis
Website Access: https://education.alberta.ca/school-
infrastructure/planning-school-projects/everyone/resources/
Financials
Payment process
• Prior to April 1, 2018 – status quo
- Year end process
• As of April 1, 2018
- Request For Payment submissions to Infrastructure
o Shared email address
- Request For Payment form
o Changed form
o Required to process F&E, CTS payments
- Payment inquiries – Infrastructure
Financials cont’d
Statement of Final Cost (SFC)
• As of April 1, 2018
SFC process managed by Infrastructure
- Purpose
- Submission process – shared email address
- SFC form updated
Reporting
Purpose / Challenges
Infrastructure reports for Jurisdictions
• Monthly reporting continues
• Report format changes
• Education SharePoint site
School Capital Projects website
Next Steps:
• Capital Infrastructure Dynamics (CID)
Reporting (cont’d)
Jurisdiction project updates
• SCRS – status quo for project data updates
• Cash Flow Forecasting (12 months, future years)
Existing SCRS Cash Flow data
ID
Grant Agreement Number
Project Name
Notes Risks
% of Construction Completed
Anticipated Construction Completion Date
Anticipated Occupancy Date
Anticipated Status As of April 2018 Date
Life To Date Expenditure As of March 31, 2018
2018 APR
2018 MAY
2018 JUN
2018 JUL
2018 AUG
2018 SEP
% $ $ $ $ $ $ $
% $ $ $ $ $ $ $
New SCRS Cash Flow data requirement
ID
Grant Agreement Number
Project Name
Notes Risks
% of Construction Completed
Anticipated Construction Completion Date
Anticipated Occupancy Date
Anticipated Status As of April 2018 Date
Life To Date Expenditure As of March 31, 2018
2018 APR
2018 MAY
2018 JUN
2018 JUL
2018 AUG
2018 SEP
2018 OCT
2018 NOV
2018 DEC
2019 JAN
2019 FEB
2019 MAR
2019-2020
2020-2021
2021-2022
% $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
% $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
Additional 6 months / future year totals
Modular Classroom Program
• Modular allocation – Education
- Priority list
- Annual Modular Classroom Approval
o Approval letter:
Jointly signed by Education and Infrastructure
• Budget Approval (Project) – Infrastructure
• Challenges
School Capital Manual (March 2015)
• Addendum to be issued – effective April 1, 2018
- Amends priority clauses/sections to align with changed
accountabilities and processes
- Replaces some Sections and Appendices
• School Capital Manual update
- Review to commence after April 1, 2018
- Major update
- Collaborate with Jurisdictions
Infrastructure Maintenance and Renewal
(IMR)
Changes in Process
• IMR Actual Expenditure Reports are now to be
submitted to Education
- Format and deadline is unchanged
- Jurisdictions are still required to report through VFA
Area Capacity Utilization Reports (ACU)
Changes in Process
• ACU reports will now be generated by Education
- The ACU report will no longer have the gross area information
included.
• Updated Utilization Formula Instructional Area forms with
Small Scale Plans need to be submitted to Education to
allow for the updating of instructional area.
BREAK
Capital Planning Gated Approval
Process and Project Readiness
Alberta Education
Outline
• Alberta Education Capital Planning Gated
Approval Process
– Phase 1: Capital Plan Submission
– Phase 2: Project Evaluation & Prioritization
– Phase 3: Project Definition
– Phase 4: Budget & Scope
– Phase 5: Provincial Capital Planning Process
• Project Readiness
– Why Is Project Readiness Important?
– Project Readiness Evaluation
• Questions
Capital Planning
Gated Approval
Process
Capital Plan Submission
Gate 2
Gate 3
Gate 4
Project Definition
Budget & Scope Development
Provincial Capital Planning Process
Between6-18 months
Approx. 6 months
Phase
Gate
Gating Criteria
Alberta Education Capital Planning Gated Approval Process
All projects must meet all the requirements specified at each gate before proceeding to the next gate
Project Evaluation and Prioritization
Gate 1
Phase 1: Capital Plan Submission
• Activities
– School Board
Submission
o Meeting
Submission
Requirements
• Purpose
– Project
Justification &
Supportability
– Overall Planning &
Management
Capital Plan Submission
Gate 1
School Authority’s Three-Year Capital Plan – April 1 submission deadline
Information provided is complete
Capital Plan Submission (April 1st)
Phase 2: Project Evaluation &
Prioritization
• Activities
– Assessment of
Capital Projects
– Prioritization of
Capital Projects
o Based on Project
Driver Criteria
o Based on Level of
Need Criteria
Gate 2 Projects have been assessed and prioritized based
on the criteria as established by Education Capital Planning Sector
Project Evaluation and Prioritization
Capital Plan Submission
Project Evaluation & Prioritization (3 Months)
Phase 2: Project Drivers
Health & Safety
• Health and Safety issues that require resolution may include serious structural deficiencies, presence of hazardous materials, documented air quality issues, etc.
Building Condition
• There are demonstrated and documented deficiencies in the key areas of structural, envelope, interior, mechanical, electrical, building codes and/or standards compliance issues due to age that could not be resolved through the use of Infrastructure Maintenance and Renewal (IMR) funding.
Enrolment Pressures
• Enrolment Growth: The school authority’s existing facilities are insufficient to accommodate current and future students within a specified geographical area.
Functionality & Programming
• Project provides new and/or improved program space functionality through reconfiguration, relocation, or technology.
Legal
• Projects are evaluated on legal rights for equity of access and assessed regarding existing legal judgement or potential legal action (e.g. Rights to Francophone education under Section 23 of the Canadian Charter of Rights and Freedoms).
Phase 2: Level of Need
High Need
(Tier 1)
• Projects that will address school facilities that are unsuitable, unsafe or pose a high risk to students and/or staff.
Medium/High Need
(Tier 2)
• Projects that are considered immediate need. An active mitigation strategy may be in place to address the immediate need.
Medium Need
(Tier 3)
• Projects that are considered to have emerging needs.
Low Need
(Tier 4)
• Projects that may be addressed in the long-term future (i.e. seven to ten years).
Phase 3: Project Definition
• Activities
– Preliminary Site
Assessment
– Value Scoping
Sessions
Gate 3
Project Definition
Needs Validated Passed readiness assessment test
Capital Plan Submission
Project Evaluation & Prioritization (3 Months)
Project Definition(6-18 Months)
Phase 4: Budget & Scope
Development
• Activities
– Functional Plan
– Scope and Budget
Development
Gate 4
Budget & Scope Development
Alignment with GoA Priorities Project Scope & Budget Summary
Document Complete Provides value for money Functional Plan has been
developed
Capital Plan Submission
Project Evaluation & Prioritization
(3 Months)
Project Definition(6-18 Months)
Budget Scope & Development
(6 Months)
Phase 5: Provincial Capital Planning
Process
• Activities
– Recommendation to Treasury Board & Finance
– Approval & Implementation Phase
Capital Plan Submission
Project Evaluation & Prioritization (3 Months)
Project Definition
(6-18 Months)
Budget Scope &
Development
(6 Months)
Provincial Capital
Planning Process
Project Readiness
Why is Project Readiness Important?
• Identifying and Mitigating
Risks
• Implementation ‘Ready’
• No Surprises!
Project Readiness Evaluation
Project ReadinessEvaluation
Legal
Adequate Size
Access
Site/Area Hazards
Geotechnical
Scope
Development
Functional
Plan
MGA Amendments
& Link to School Act
Joint Use and Planning Agreements
(JUPAs)
Background
• On April 10, 2017 Bill 8, An Act to Strengthen
Municipal Government was introduced to
amend the MGA
• Significant consultation was conducted with
school boards across Alberta on potential
changes to be included in Bill 8
• One of the changes in Bill 8 that is relevant to
K-12 Education in Alberta is:
– Mandatory joint use and planning agreements for
school boards and municipalities
Bill 8 & Vision for the MGA
• A new vision for the MGA is based upon three
pillars:
– an enhanced partnership relationship with municipalities
in providing effective and responsive governance to
Albertans;
– strengthened accountability mechanisms to allow
Albertans to hold their local governments accountable;
and
– a shift away from competition to collaboration, with new
tools to ensure that municipalities work with
neighbouring communities to better serve their
collective residents.
Bill 8 & Vision for the MGA
• A Joint Use Agreement (JUA) between
municipalities and school boards is voluntary,
which allows for flexibility to address matters
that are of mutual interests
• In the absence of a JUA, a subdivision
authority determines the land allocation for
reserve lands based upon the needs of the
municipality and each school board(s) within
its boundary.
Cu
rren
t
Bill 8 & Vision for the MGA
• Municipalities will be required, within 3 years
of the requirement coming into force, to have
JUPAs with school boards that are operating
within the municipalities’ boundaries.
• JUPAs will establish a process to discuss
matters related to:
– the planning, development, use, (including the matters
relating to the maintenance of facilities and fields),
transfer, disposal and servicing of school sites
– the municipality and the school board work
collaboratively together, including a process for
resolving disputes and
– A time frame for regular review of the agreement
New
Bill 8 & the School Act
• Key Consequential School Act Amendments:
– All boards operating within municipal boundaries must
enter into a JUPA within three years of the requirement
coming into force
– More than one board may be a party to an agreement
– Agreements may be amended from time-to-time as
necessary
New
Bill 8 & the School Act
• Key consequential School Act Amendments
continued:
– In section 197 of the School Act, subsections (a) and (b)
are retitled subsection (1) and the following is added:
o Subject to the regulations, subsection (1) does not apply to
JUPA’s
o The Minister may make regulations respecting the extent to
which subsection (1) applies to JUPA’s
New
Bill 8 & the School Act
• Next Steps
– Education to determine whether a regulation will be
developed under Section 197 of the School Act
Questions
Closing
Remarks
Thank you