The Vancouver School Board doesn’t anticipate making any changes to its provisional budget for 2015-2016 as a result of a review conducted by PricewaterhouseCoopers that will be discussed at a VSB committee meeting June 3.
“Significant benefits have been accumulated since 2012, consisting of $9.23 [million] costs savings, $2.02 [million] cost avoidance and $7.69 [million] in additional revenue generated,” states the draft report, dated May 14.
PwC reports the VSB has fully implemented or is in the process of implementing most of the 29 recommendations the firm made in a similar report in 2012.
PwC identified eight areas where the school board could save money.
PwC believes the VSB could save between $154,000 and $769,500 as a result of completing a benefits compliance report, and another $87,500 to $175,000 deploying and managing maintenance workers using mobile technology.
VSB staff will consider these recommendations in a report to trustees.
The special adviser’s report from EY, appointed by the Minister of Education, is expected to be released June 8.
The VSB’s budget, which addressed a shortfall of $8.52 million, is to be finalized June 29.
International Village
The Vancouver School Board announced Friday afternoon it will borrow $1.6 million from BMO to make up a budget shortfall of $1.8 million for a new elementary school at International Village.
The money will be repaid to the school board’s operating fund over 15 years.
NPA board chairperson Christopher Richardson says the VSB plans to negotiate modifications to the school’s design to make up the difference of $200,000.
All of the construction bids received in March were at least $1.4 million over budget. The VSB stated the increased costs were “due to a variety of factors, including the rapidly rising U.S. dollar, which has had significant impact on construction costs.”
Richardson said the VSB approached the Ministry of Education with a plan and a request for the province to jointly fund $1.8 million in additional costs.
“Unfortunately, the province indicated that it is unable to support the proposed plan for additional funding at this time,” the VSB’s press release reads.
Richardson said the VSB needed to get the money in place because the bids were about to expire and the board wants to see the school constructed as soon as possible. The VSB awarded the construction contract to ITC Construction Group.
The board made the borrowing decision at an in camera meeting May 26.
Former Vision Vancouver VSB chairperson Patti Bacchus believes the board should have publicly pushed for the money from the province.
But Richardson said his press release Friday “was a soft advocacy message to those that the board is not pleased that the provincial government [didn’t provide more money.]
“There was some discussion [that] I could have stood on the site of the building and waved a shovel,” he continued. “I’m not sure you or anyone else would have come or cared.”
The Ministry of Education approved $13.5 million for the new school in 2012. The project budget was increased by $3.56 million in February 2014 to cover price escalation, a redesign to resolve privacy concerns from the neighbouring condominium tower property owners, a fourth storey to accommodate additional students and increased foundation work and costs related to upgrading the parkade below the school. The board fully covered this increase, pushing its local capital reserve into deficit.
The school is targeted to open in early 2017.
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