SCHOOL DISTRICT U-46 2015 COST EFFICIENCIES SEPTEM BER1 4 , 2 0 1 - - PowerPoint PPT Presentation

SEPTEM BER1 4 , 2 0 1 5

2015 COST EFFICIENCIES

SCHOOL DISTRICT U-46

SPECIAL EDUCATION

2012- 2013 Sc hool Ye a r T

• Da te

Re imbur se me nt Re c e ive d (July 2012- June 2013) 2013- 2014 Sc hool Ye a r T

• Da te

Re imbur se me nt Re c e ive d (July 2013- June 2014) 2014- 2015 Sc hool Ye a r T

• Da te

Re imbur se me nt Re c e ive d (July 2014- June 2015)

$994,343 $908,434

$1,928,530

2012- 2013 T

• ta l T

ime Study Re ve nue (4 qua r te r s) 2013- 2014 T

• ta l T

ime Study Re ve nue (4 qua r te r s) 2014- 2015 T

• ta l T

ime Study Re ve nue (4 qua r te r s)

$979,249 $734,447 $1,127,230

Outreach/MAC/Time Study

Fee-For-Service

I nc re a se o f $1,412,879 in Me dic a id re imb urse me nt thro ug h mo nito ring a nd sub missio n o f impro ve d sta ff re imb urse me nt a c tivitie s.

2

0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 Jun-12 Se p-12 De c -12 Ma r-13 Jun-13 Se p-13 De c -13 Ma r-14 Jun-14 Se p-14 De c -14 Ma r-15 Jun-15

Wor king Cash Yie ld Pe r c e ntage (the inc r e ase in yie ld e quals appr

• ximate ly an additional $37,400

pe r month in r e ve nue and $448,000 annually)

3

PROFESSIONAL DEVELOPMENT

• Almo st 90% o f PD wa s mo ve d to T

itle I I a nd T itle I funding . Additio na lly, mo st PD ha s b e e n mo ve d to a fte r sc ho o l to a vo id sub c o sts. E stima te d sa ving s o f $500,000 pe r ye a r.

• Re duc e d te sting sc he dule e q ua te s to le ss sub c o ve ra g e .

With o nly o ne PARCC windo w a nd fe we r MAP se ssio ns, o ur c o sts a re re duc e d b y a ppro xima te ly ha lf. T he c ha ng e will re duc e the c o st o f pro c to rs, sub s a nd te c h suppo rt a nd sho uld sa ve the o rg a niza tio n a ppro xima te ly $250,000 pe r

ye ar.

4

HEALTH INSURANCE COMMITTEE

School District U-46 Employees' Health Care Program (2004-2016)

Calendar Year Overall Increase National Trend Plan Design Claims Experience 2004 32.60% 12.90% 0.00% 19.70% 2005

• 29.39%

12.60%

• 41.99%

0.00% 2006 3.94% 12.00% 0.00%

• 8.06%

2007 29.39% 10.50%

• 0.96%

19.85% 2008 9.90% 11.00%

• 1.80%

0.70% 2009 2.80% 9.50%

• 2.61%
• 4.09%

2010 12.90% 9.80% 1.45% 1.65% 2011 2.10% 9.10%

• 3.47%
• 3.53%

2012 2.00% 9.50%

• 4.40%
• 3.10%

2013 0.90% 8.30%

• 1.50%
• 5.90%

2014 4.80% 7.60%

• 3.70%

2.00% 2015 1.80% 8.40%

• 5.00%
• 1.00%

2016 3.10% 7.50%

• 2.00%
• 1.90%

Average for past 13 years 5.91% 9.90%

• 5.08%

1.26% Average for past 10 years 6.97% 9.12%

• 2.40%

0.47% Average for past 5 years 2.52% 8.26%

• 3.32%
• 1.98%

5

HEALTH INSURANCE COMMITTEE

School District U-46 Health Care Savings (2005-2016) Calendar National Overall Net Effect of HCC Recommendations Year Trend Increase Percentage Dollar Accum Value

new program 2005 12.60%

• 29.39%
• 29.39%

$ (13,590,776) $ (216,326,101) 2006 12.00% 3.94% 0.00% $ - $ - 2007 10.50% 29.39%

• 0.96%

$ (271,115) $ (3,410,055) 2008 11.00% 9.90%

• 1.80%

$ (657,849) $ (7,253,810) 2009 9.50% 2.80%

• 2.61%

$ (1,096,102) $ (10,466,797) 2010 9.80% 12.90% 1.45% $ 628,082 $ 5,113,853 2011 9.10% 2.10%

• 3.47%

$ (1,515,687) $ (10,309,569) 2012 9.50% 2.00%

• 4.40%

$ (1,963,311) $ (10,848,531) 2013 8.30% 0.90%

• 1.50%

$ (695,708) $ (2,998,586) 2014 7.60% 4.80%

• 3.70%

$ (1,814,828) $ (5,721,245) 2015 8.40% 1.80%

• 5.00%

$ (2,409,380) $ (4,939,229) 2016 7.50% 3.10%

• 2.00%

$ (1,002,482) $ (1,002,482) Average 9.65% 3.69%

• 6.67%

$ (3,048,644) Average over last 5 years: 8.26% 2.52%

• 3.32%

$ (1,577,142) Aggregate Dollar Savings Through 2016: $ (24,389,154) Accumulated Value of HCC Recommend- ations Through 2016 (est): $ (268,162,553)

6

COST SAVINGS WITH OFFICE DEPOT

Month Contr a ct Cost Cost w/ out Contr a ct Tota l Sa v ings

Jul-14 50,496.45 $ 131,243.76 $ 80,747.31 $ Aug-14 93,534.80 $ 158,754.64 $ 65,219.84 $ Sep-14 69,760.46 $ 179,481.15 $ 109,720.69 $ Oct-14 84,405.57 $ 200,680.22 $ 116,274.65 $ Nov-14 57,809.51 $ 84,879.18 $ 27,069.67 $ Dec-14 35,343.71 $ 72,746.36 $ 37,402.65 $ Jan-15 66,194.88 $ 148,632.20 $ 82,437.32 $ Feb-15 50,283.49 $ 100,788.95 $ 50,505.46 $ Mar-15 78,952.01 $ 186,549.49 $ 107,597.48 $ Apr-15 122,434.85 $ 240,389.31 $ 117,954.46 $ May-15 88,934.31 $ 156,875.48 $ 67,941.17 $ Jun-15 18,337.86 $ 34,166.49 $ 15,828.63 $

G rand Total 816,487.90 $ 1,695,187.23 $ 878,699.33 $

7

Business Services Recycling Efforts

8

Distribution Center Operational Efficiency

Note: The Cost Savings are a result of Business Services personnel negotiating better prices for goods and services for the District.

$ Dollars of Goods processed by Distribution Center $18,805,710.00 $ Dollars of Goods processed by Distribution Center $18,030,825.00 Business Services Negotiated Cost Savings $5,609,344.00 Business Services Negotiated Cost Savings $5,497,341.00 Distribution Center Operating and Staff Cost $1,440,917.00 Distribution Center Operating and Staff Cost $1,556,778.00 Distribution Center Cost Savings After Expenses $4,168,427.00 Distribution Center Cost Savings After Expenses $3,940,563.00

Distribution Center Operational Savings 2013-2014 Distribution Center Operational Savings 2014-2015

9

Financial Operations Payroll System Cost Savings Annual Licensing Fees Oracle/ Tyler Tech 0.00 50,000.00 100,000.00 150,000.00 200,000.00 250,000.00 300,000.00 350,000.00 FY11 FY12 FY13 FY14 FY15

$311,822 $233,484 $65,331 $65,331 $68,547

10

FINANCIAL OPERATIONS PAYROLL SYSTEM COST SAVINGS PRINTING AND TAX FILING SERVICES AUTOMATIC DATA PROCESSING, INC. 0.00 50,000.00 100,000.00 150,000.00 200,000.00 FY11 FY12 FY13 FY14 FY15 $146,692 $150,810 $124,176 $0 $0

11

INFORMATION SERVICES COST SAVINGS - E-RATE BIDS

• E
• Ra te Bids
• Pro je c ts a nd Se rvic e s
• Wire le ss ne two rk syste m – fo r stude nts a nd sta ff
• Ne two rk switc he s – to suppo rt wire le ss ne two rk
• Ca b ling – to suppo rt wire le ss ne two rk
• Da ta line s b e twe e n sc ho o ls
• T

e le pho ne line s

• I

nte rne t a c c e ss

• Pro je c te d Sa ving s $3,600,000.00
• F

ro m F e de ra l E

• Ra te g ra nt
• Pe nding fina l E
• Ra te a ppro va l
• 80 pe rc e nt disc o unt

12

INFORMATION SERVICES COST SAVINGS – COMPUTING DEVICES

• HP Stre a m la pto p
• Purc ha se d 1,270 la pto ps inste a d o f full-size c o nve ntio na l

la pto ps

• Co st sa ving s $406,400.00
• iPa d T

a b le t

• Pro po se d iPa d Air 2
• Afte r Bo a rd disc ussio n, re vise d pro po sa l to iPa d Air
• Co st sa ving s $135,000.00

13

INFORMATION SERVICES COST SAVINGS – VIRTUALIZED SERVERS

• E

xpa nde d Virtua l Se rve r Syste m

• Allo ws a fe w a c tua l se rve rs running spe c ia l so ftwa re to ha ve

the sa me “virtua l” c a pa c ity a s 15-20 time s mo re se rve rs

• Gre a tly re duc e s the ha rdwa re c o st
• Purc ha se d 4 a dditio na l a c tua l se rve rs – summe r 2015
• T
• ta l a c tua l se rve rs - 10
• Curre nt virtua l se rve rs -150
• Co st sa ving s (e ntire syste m) - $925,000.00

14

Cell Phones to Radios

• Radios provided by grant funds that were gained by the Director, School

Safety & Culture

• First year reduction of 33 phones from 64 in the Plant Operations Department
• First year’s estimated savings to the District is over $42,300.00

TO:

15

Consumable Contract Combining

• Warehouse Direct 14/15 New

Contract – Paper/Plastic – Soap – Custodial supplies $371,320 $341,031

• Unifirst

– Dust Mop Cleaning – Soap $ 27,954 $ 0

• AmSan

– Soap $ 26,319 $ 0 Total Cost 14/15 $425,594 $341,031

Savings of

$84,562

16

$0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 2012 2013 2014 $13,052,135 $12,110,324 $10,839,632 $1,957,820 $1,816,548 $1,625,945 Co st Avo ida nc e (sa ving s) Ca pita l Pro je c t Co sts

T OT AL COST AVOIDANCE SAVINGS $5,400,313 2012- 2014 YEAR

15% MINIMUM YEARLY COST AVOIDANCE

5% REPAIR COST 5% DAMAGE COST 5% DOWN TIME COST 15%

CAPITAL PROJECT SPENDING GENERATING COST AVOIDANCE

17

10 20 30 40 50 60 70 80 90 100 95 77 51 41 36 18 26 10 5 Number of Mobiles not Used/Removed Total Mobile Classrooms

MOBILE CLASSROOM REDUCTIONS CORRELATING TO DOLLARS SAVED

$8,500 Per Year To Operate 1 Mobile Classroom.

18

2015 ENVIRONMENTAL PROJECTS COST AVOIDANCE

THE AMOUNT OF MONEY PLANT OPERATIONS SPENDS ON ENVIRONMENTAL PROJECTS SUCH AS MOLD, ASBESTOS, AND LEAD- BASED PAINT POTENTIALLY HAS SAVED THE DISTRICT HUNDREDS OF THOUSANDS / MILLIONS OF DOLLARS AND THE POTENTIAL FUTURE COSTS ASSOCIATED WITH WORKMAN’S COMPENSATION CLAIMS,

• MISC. LITIGATION CLAIMS, SICK DAYS, ETC.

Issues/Concerns Proactive Cleanups Potential Risks Positive Outcome to the Community and District

19

COST ANALYSIS OF MAKING MULCH

• VS. PURCHASING MULCH AND FIBAR

In 2002, School District U-46 purchased a tub grinder for $63,000.00 and we have been making our own mulch ever since. We have the capacity to produce about 100 cubic yards of mulch per day. When we purchased the machine, mulch was $13.00 per yard making the payback 1.5 years. We are currently supplied with free chips by the City of Elgin and a couple of tree companies, and can produce our own mulch for $3.75 per yard vs. $27.60 per yard from Midwest Trading Company and $43.50 for Fibar (delivered) for playground surfacing. Over the course of an average year we produce a minimum of 1,500 cubic yards of mulch and playground surfacing material saving the District between $35,775.00 and $59,625.00. Potential savings from 2002 are up to $775,125.00, minus the initial investment of $63,000.00, totaling an overall estimated savings to the District of $711,625.00.

20

COST BENEFIT OF MAINTAINING ASPHALT

By maintaining the lot over a 20 year period, we will show a net savings of $760,000.00 - $900,000.00 depending on whether we use a Contractor or do the work In-House.

21

ENERNOC ENERGY PROGRAM

On July 1st of this year, we entered the 2015-2016 Demand Response program season. School District U-46 has contracted with ComEd to curtail electrical usage whenever the demand on the grid is too high and they declare a 'Curtailment Event.' We received approximately $82,725 last year in rebate checks by participating in the program. The estimated payment for 2015-2016 is projected to be $85,878. We expect that over the life of the five-year contract we will receive over $400,000. Currently, only our high schools are in the program. Next year we intend to add the middle schools, which should increase the revenue stream by at least $250,000.

22

31,168,138 kWh = Total electricity used during 14-15 program. 754,100 kWh = Total electricity avoided during program.

Value of electricity avoided = $75,410.00*

This is equivalent to earning a free month of electricity for 2 elementary schools!

2014-2015 Energy Conservation and Awards Program (E-CAP) Report

Most Conservative Elementary Schools:

• Century Oaks
• Centennial
• Oak Hill
• Lincoln
• Lords Park

Most Conservative Secondary Schools:

• Canton MS
• Larsen MS
• Bartlett HS
• Elgin HS

* Based on $0.10 per kWh

23

$77,048.94 Total DCEO State Funding $31,053.85 Total paid by U-46

DCEO FUNDING PAID BY U-46

EXTERIOR LED LIGHTING PROJECT TOTAL PROJECT COST = $108,102.79 Schools Encompassed: BHS, LHS, Oakhill, ESC TOTAL SAVINGS: $77,048.94

24

2014-2015 - $138.45 Per Ton 2015-2016 – 68.16 Per Ton

2015-2016 Salt Prices

$0.00 $20,000.00 $40,000.00 $60,000.00 $80,000.00 $100,000.00 $120,000.00 $140,000.00 $160,000.00 $180,000.00 1200 Tons 1500 Tons 1800 Tons

By Plant Operations utilizing the State Bid and purchasing a year in advance, we project saving the District the following amounts using current market prices, and the 1200 tons we used last year. 1) 1200 tons = $83, 549 2) 1500 tons = $63, 101 3) 1800 tons = $42, 653

25

REDUCING PURCHASED SERVICES

• f drive r wage s and a re duc tion of fle e t mile s

1,052,962 710,250 603,945 504,349

200,000 400,000 600,000 800,000 1,000,000 1,200,000

Purc ha se d Se rvic e s

Purc ha se d Se rvic e s

26

DOWN BUSES

2011- 12 T he A&O Bus Re plac e me nt Plan was on hold due to r e str ic te d Distr ic t financ e s. Maintaining an olde r fle e t ofte n r e sulte d in mor e down buse s, r e quir ing a lar ge r fle e t. 2012- 13 T he A&O Bus Re plac e me nt Plan was r e - imple me nted with the pur c hase of 90 ne w buse s de live r e d, and the tr ade -in of 105 buse s in June 2013. 2013- 14 T he fle e t was downsize d. T he addition of 90 ne w buse s r e quir ing le ss mainte nanc e , the c hange to the high sc hool r

• uting mode l and

the imple me ntation of r

• ute pac kaging

allowe d this r e duc tion. 2014- 15 Inc r e ase due to no bus pur c hase for the 14-15 sc hool ye ar . Olde r buse s we r e r e taine d that we r e or iginally sc he dule d for r e plac e me nt thr

• ugh the A&O Bus Re plac e me nt Plan.

371 369 354 354 52 44 30 39 55 52 42 48 59 51 34 39

50 100 150 200 250 300 350 400 2011-12 2012-13 2013-14 2014-15 T

• ta l

Buse s Oc t Do wn Buse s F e b Do wn Buse s Ma y Do wn Buse s

27

REDUCING FUEL CONSUMPTION

2011- 12 F ue l c onsumption is tie d to mile age , fue l e ffic ie nc y and idle time s. Ne ighbor hood and Sc hool Stop r

• uting for

high sc hool stude nts imple me nte d. 2012- 13 F ine tuning of high sc hool r

• uting and

r

• ute pac kaging imple me nte d.

2013- 14 Diffic ult winte r with many ve r y c old nights and days r e quir ing additional idling of the fle e t to minimize stude nt e xposur e to har sh te mpe r atur e s. 2014- 15 Ye ar four

• f r

e fining high sc hool tr anspor tation mode l. Continue to impr

• ve e ffic ie nc y thr
• ugh pac kaging of

wor

• k. Re duc e distr

ic t-wide c r

• ss bussing

for pr

• gr

ams and de ve lope d str ic t atte ndanc e zone s for the se pr

• gr

ams.

652,192 533,872 596,914 557,614

100,000 200,000 300,000 400,000 500,000 600,000 700,000

F ue l Consumption- Ga llons

F ue l Co nsumptio n- Ga llo ns 28

REDUCING MILEAGE

2011- 12 Ne ig hbor hood a nd Sc hool Stop for Hig h Sc hool Routing wa s imple me nte d. 2012- 13 F ine tuning of hig h sc hool r

• uting .

Route pa c ka g ing imple me nte d. 2013- 14 Ye a r thr e e of hig h sc hool r

• uting .

F ine tuning of r

• ute pa c ka g ing .

2014- 15 Ye a r four

• f r

e fining hig h sc hool tr a nspor ta tion mode l. Continue to impr

• ve e ffic ie nc y thr
• ug h

pa c ka g ing of wor

• k. Re duc e distr

ic t- wide c r

• ss bussing for

pr

• g r

a ms a nd de ve lope d str ic t a tte nda nc e zone s for the se pr

• g r

a ms.

5,161,304 4,644,653 4,306,412 3,893,498

1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000

Mile a g e

Mile a g e

29

FOOD SERVICE OPERATIONAL EFFICIENCY MEALS PER LABOR HOUR

50 100 150

E le me nta ry Sc ho o ls Mid dle Sc ho o ls Hig h Sc ho o ls Co mmissa ry

35 20 22 112 34 21 19 124

2013- 2014 2014- 2015

Each year staffing is evaluated to determine what adjustments need to be made to meet our goal for meals per labor hour for each site. These target levels are determined using industry standards. The decline in high school MPMH was due to the loss of revenue from beverages due to the change in regulations.

30

FOOD & NUTRITION SERVICES EFFICIENCIES

L a bor Cost $a ving s of $293,627 fr

• m Ma y 2014 ve r

sus Ma y 2015 due to . . . * Inc r e a se d foc us on e limina ting e mploye e hour s * E nfor c ing Me a ls Pe r L a bor Hour (MPL H) Sta nda r ds

E mploye e Be ne fits and IMRF $avings of $163,807.35 from May 2014 ve rsus May 2015 due to … * Shifte d food se rvic e worke rs ove r to SE IU he alth insuranc e plan and re duc tions in hours that impac te d IMRF

F

• od and Supplie s $avings of $1,189,223 fr
• m May 2014 ve r

sus May 2015 due to . . . * Continue d e ffor ts of c ompe titive pr ic ing and r e bate s * Imple me ntation of impr

• ve d inve ntor

y c ontr

• l

* Utilization of supplie s for multi- pur pose use

31

ADDITIONAL ITEMS

• During the summe r mo nths, a ll no n-e sse ntia l

re frig e ra tio n a nd fre e ze rs a re shut do wn, whic h sa ve s a ppro xima te ly $50,000 e a c h summe r.

• E

limina te d the print sho p a nd re duc e d ma ilro o m pe rso nne l b y 2.5 F T E , whic h ha s sa ve d the Distric t a ppro xima te ly $590,000 pe r ye a r.

• I

nc re a se d the e ffic ie nc y o f fo o d de live rie s to site s b y re duc ing re dunda nc y, whic h ha s a llo we d us to re a llo c a te re so urc e s a nd re c o g nize c o st sa ving s o f a ppro xima te ly $100,000 pe r ye a r.

32

ADDITIONAL ITEMS

• I

n the suppo rt a re a s a nd a dministra tio n c o mb ine d,

• ur to ta l sa la rie s ha ve o nly inc re a se d o n a ve ra g e

b y 1% o ve r the pa st se ve n ye a rs due to e limina tio n

• f po sitio ns a nd c o ntro lling pa y inc re a se s.
• Ove r the pa st se ve n ye a rs, the c umula tive inc re a se

in the infla tio n ra te ha s b e e n 15.1%. During tha t pe rio d, o ur c o sts o f supplie s a nd ma te ria ls ha ve

• nly inc re a se d b y 11.8% a nd se rvic e s ha ve

inc re a se d b y 8.5%, whic h ha s sa ve d the ta x pa ye rs a ppro xima te ly $2.9 millio n.

33

T

• ta l re ve nue / sa ving s

a nd c o st a vo ida nc e fo r the pa st five ye a rs ha s b e e n a t le a st

$55 MILLION

34