DASD Capital Expenditure Priority Methodology. September 18, 2014

Transcription

1 DASD Capital Expenditure Priority Methodology September 18, 2014

2 OBJECTIVES Refine the systematic approach to the prioritization of cap ex projects Use a similar approach to the prioritization of routine maintenance projects Enhance long term planning and budgeting

3 METHODOLOGY Establish and weigh categories Score each project against each category Total and rank projects by categorical scores Establish an annual capex spend limit Determine the projects to be executed until the spend limit is reached Establish a contingent provision for unplanned or emergency projects

4 Approval Process Projects will be identified by administration and the Buildings and Grounds Committee Administration will provide the individual category scores, overall rankings, and expected costs for each project The resulting matrix will be reviewed and approved by the Buildings and Grounds Committee When appropriate, approval may be required by the Budget Committee Approved projects will be offered to the entire Board as an informational item at a Board meeting and acted upon at the subsequent meeting

5 SAMPLE MATRIX Maximum Points Promotes Relative Regulatory Promotes Target Total Safety Return on Academic Cost of Compliance Extracurricular Cost Project Description Type Year Points at Risk Investment Achievement Delay Requirement Excellence Estimate Ore Valley Playground Steps Safety 14/ $ 55,000 York Township Entrance Upgrade Security 14/ $ 358,000 Dallastown Elementary Entrance Upgrade Security 14/ $ 542,000 High School Entrance Upgrade Security 14/ $ 158,000 Stadium Grandstand Repairs Facility 14/ $ 40,000 Camera Storage Upgrade Security 15/ $ 82,000 CC Camera Coverage Upgrade Security 15/ $ 284,000 York Township Chiller Facility 14/ $ 299,000 DAIS IT Access Points Infrastructure 17/ $ 190,000 Phone System Upgrade Security 16/ $ 88,000 Dip Repair Tennis Court Hill Facility 14/ $ 15,000 Loganville Fascia/Soffit Facility 14/ $ 24,000 Elementary IT Access Points Infrastructure 17/ $ 250,000 High School Pool Cover Energy 14/ $ 40,000 Leader Heights Tables and Chairs Facility 15/ $ 80,000 DAHS Metal Halide Lighting Replacement Energy 14/ $ 200,000 Dallastown Elementary Roof Replacement Facility 18/ $ 420,000 HS/MS HVAC Upgrades Infrastructure 17/ $ 722,000

6 RANKING CATEGORIES SAFETY AT RISK Scope: How much does the project impact student, employee, or public safety while on school property? Category Max Score: 20 points 20 represents a significant safety risk 0 represents a project which has no safety implication

7 RANKING CATEGORIES RETURN ON INVESTMENT Scope: What will the project yield for the proposed expenditure? Category Max Score: 15 points 15 represents a project which provides significant value in return for the expense 0 represents a project which offers no return. An example would be an equipment replacement where the technology does not offer a potential energy savings (e.g. roof).

8 RANKING CATEGORIES PROMOTES ACADEMIC ACHIEVEMENT Scope: Does the project have an impact on academic achievement? Category Max Score: 15 points 15 represents a project which will have a significant impact on improving academic achievement 0 represents a project which has no impact on academic achievement

9 RANKING CATEGORIES RELATIVE COST OF DELAY Scope: What are the long-term costs or ramifications if we do not do this project? Category Max Score: 10 points 10 represents a high risk project which will require a much higher cost if not done in an expeditious manner 0 represents a project which will have little or no impact if delayed

10 RANKING CATEGORIES REGULATORY COMPLIANCE REQUIREMENT Scope: Is the project being presented necessary to comply or meet local, state, or federal regulations? Category Max Score: 10 points 10 represents a project which is required to comply with local, state, or federal regulations 0 represents a project which does not require or is not impacted by local, state, or federal regulations

11 RANKING CATEGORIES PROMOTES EXTRACURRICULAR EXCELLENCE Scope: Category Max Score: 10 points 10 represents a project that will greatly improve facility and/or conditions 0 represents a project with no effect on the facility or conditions

12 MAINTENANCE PROJECTS These projects are typically under a total cost of $5,000 and are paid for using annually budgeted allocations from the general fund operating budget. We should examine if/should these projects fit in the overall methodology or leave them to be managed in the overall budgeting process.

13 Capital Reserve Fund Separate from the general fund operating budget. May only be funded through unexpended surplus amounts from the general fund operating budget at the end of the fiscal yearor excess bond proceeds. May only be used for capital additions and improvements, maintenance, and for the purchase or the replacement of machinery, equipment and vehicles, and for no other purpose. Transferring money out of the capital reserve fund is not permitted.

14 Capital Reserve Fund Cash as of 09/15/2014 EXPENDITURES/ANTICIPATED PROJECTS: Outstanding Contracts/Invoices - Project was board approved: Middle School Entrance Upgrade (estimate) 72,200 Emergency Paging System for Athletic Fields 31,598 YT water tower/chiller replacement (estimate) 228,185 Reserves: Recoat Track 60,000 Turf Project Reserve - Market Street Funds 68,910 High School Cyber Café (funds transferred from General Fund at FY 2014 end) 74,000 Total Outstanding Contracts/Invoices/Reserves 534,893 REVENUE SOURCES: Capital Reserve Fund 556,062 DAIS 2012 Bond Fund (including escrow)* 731,393 Payback from Educational Foundation 203,544 TOTAL ANTICIPATED REVENUES 1,490,998 Unreserved Cash Balance 956,105 *ESCROW ANALYSIS Escrow 1Future Improvements - Engineering fees 24,615 TOTAL Escrow 24,615 Available Cash 931,490 1 Escrow to be held for 10 years from the Cert of Occupancy for future road improvements.

15 QUESTIONS?