Common Cents Shared Services Initiative Results

September 2, 2009

Woodland Hills School District

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Agenda

Welcome and Introductions Dr. Walter Calinger & Dr. Jane Heiple

Common Cents Objectives and Goals Dr. Jane Heiple

Year 1 Overview and Results Dr. Jane Heiple

Year 2 Project Rollout and Methodology Dr. Jane Heiple

Woodland Hills Project Results Dr. Jane Heiple

Next Steps Dr. Jane Heiple

Questions Dr. Walter Calinger & Dr. Jane Heiple

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Common Cents Objectives and Goals

Background: Governor Rendell’s 2007-08 budget allocated funds to provide expert advice to school districts to learn about ways they can share services and programs in order to increase the efficient use of tax payer resources and improve service delivery for students. Common Cents offers these volunteer districts free advice – and no mandate.

Project Objective: To implement a shared services program across Pennsylvania’s participating school districts as a way to reduce administrative costs and allow school districts to invest more dollars in the classroom.

PROJECT GOALS

• Shared administrative services (where it makes sense)

• Meaningful savings to drive money back into the classroom

• More efficient operations

Year 1 Overview and Results

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Common Cents is being implemented across the Commonwealth with an initial Pilot followed by three “waves.”

Methodology: Project Rollout

Wave 1:IU 2,3

Wave 2:IU 4, 5, 27

Wave 3:IU 17

Wave 2:IU 13

Two-part waves: (1) data collection and analysis; (2) implementation

Pilot:IU 1

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A total of 38 school districts participated in Common Cents in Year 1.

Methodology: Project Rollout (cont’d)

Pilot

• Jefferson-Morgan

• Canon-McMillan • Chartiers-Houston • Ringgold

Wave 1

• Pittsburgh • Baldwin-Whitehall • Brentwood Borough

• Clairton City • Duquesne City • Plum Borough • Shaler Area • South Allegheny • Wilkinsburg

Wave 2

• Butler Area

• New Castle Area• Commodore Perry

• Farrell Area• Hermitage• Jamestown Area• Sharon City• Sharpsville Area• West Middlesex Area• Conneaut• North East• Northwestern• Ambridge• Blackhawk• Hopewell Area• Lebanon

Wave 3

• Athens Area• Northeast Bradford• Sayre Area• Towanda Area• Wyalusing Area• Montgomery Area• Montoursville Area• South Williamsport Area• Southern Tioga

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The Common Cents Year 1 initiative is in the Implementation phase across all Waves, including the Pilot districts.

Report Creation Pre-Implementation Implementation

Pilot

Wave 1

Wave 2

Wave 3

We Are Here

Report Finalization

Public Meetings and Pre-Implementation Discussions

Report Finalization

Report Finalization

Report Finalization

Year 1 Project Status

Public Meetings and Pre-Implementation Discussions

Public Meetings and Pre-Implementation Discussions

Public Meetings and Pre-Implementation Discussions

Implementation Presentations

Implementation Presentations

Implementation Presentations

Implementation Presentations

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Year 1 Aggregate Potential Savings

Total Project-Wide Potential Savings= $8,782,000*

Total Potential Savings by Wave (Aggregate Mid-Range, Pilot and Waves 1-3)*

*All potential savings figures are rounded to the nearest thousand.

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Total Potential Savings by Recommendation Categories(Aggregate Mid-Range, Pilot and Waves 1-3)

Total Project-Wide Potential Savings= $8,782,000

*

*Transportation savings figures include specialized transportation and purchasing data.** General Purchasing savings figures include copier, paper, and office supplies data.***Finance & Payroll savings figures include delinquent tax collection data (for wave 1-only).****Real Estate &Facilities saving figures include custodial supply and utilities data.

***

****

Year 1 Aggregate Potential Savings, cont’d.

Year 2 Project Rollout and Methodology

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Common Cents Year 2 continues to be implemented across the Commonwealth.

Year 2 Project Rollout

Two-parts: (1) data collection and analysis; (2) implementation

Year 2:IU 3

Year 2:IU 6

Year 2:IU 12

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Eleven (11) total school districts are participating in Year 2 of the Common Cents initiative.

Year 2 Project Rollout, cont’d.

IU #3• Woodland Hills

IU #6• Forest Area• Franklin Area• Oil City Area• Redbank Valley• Valley Grove

IU #12• Dallastown Area• Dover Area• York City• Red Lion Area• York Suburban

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Report on findings such as:

- Savings opportunities and related benefits- Aggregate-level initiatives

Collect data via templates and follow-up communications

Perform data analysis

Identify opportunity areas

Develop business cases

Present recommendations and estimated savings

Provide support for the Intermediate Units and districts throughout their decision-making processes

Supply assistance and materials for districts choosing implementation

Discuss success stories and lessons learned from similar efforts

Develop Reports Develop ReportsData CollectionData Collection Perform Data Analysis

Perform Data Analysis

Conduct Public Meetings and Provide

Implementation Support

Conduct Public Meetings and Provide

Implementation Support

Conduct Group Work Session

Conduct Group Work Session

Conduct 2-Day Group Working Sessions to collect category information and best practices

Report on findings such as:

- Savings opportunities and related benefits- Aggregate-level initiatives

Our approach to Year 2 includes the following key steps:

Key Project Steps

Woodland Hills Project Results

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Woodland Hills School District Project Results

School District Potential

Cost Savings

(Low–end to High-end)*

Woodland Hills $185,000-$349,000

The table below provides the potential cost savings for the Woodland Hills School District, if the district were to implement the identified opportunities:

* Potential Cost Savings are rounded to the nearest thousand.

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Cost Savings Considerations

• The realization of cost savings is dependent on full participation of other school districts. No district may realize these savings on their own.

• Many districts already use certain best practices such as participation in IU consortiums and state purchasing programs. Our intent is to grow, enhance, and share these best practices to help districts realize even greater savings.

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Current Shared Service ArrangementsThe Woodland Hills School District currently participates in the following shared-service and consortium purchasing arrangements: Consortiums:

-- Intermediate Unit #3 - Office Supplies, Paper Purchasing, Fuel

-- US Communities - Office Supplies

Other purchasing programs:--  Member of COSTARS cooperative purchasing program

-- Member of the Pennsylvania Education Purchasing Program for Microcomputers (PEPPM) purchasing program

Transportation: -- Shared services with Wilkinsburg School District

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Woodland Hills Project Results, cont’d

Category Shared Service Opportunities for Woodland Hills

Transportation (1) Specialized Transportation

Purchasing (2) General Purchasing (e.g. Paper, Office Supplies, Copiers)

Real Estate & Facilities(3) Custodial Supplies Purchasing(4) Utilities Purchasing

Human Resource Admin. No opportunities currently identified

Finance and Payroll No opportunities currently identified

Technology Services (5) Technology Purchasing

Food Services No opportunities currently identified

Instructional Services (6) Textbook Purchasing

Safety and Security No opportunities currently identified

Five specific opportunities across several different categories were identified for Woodland Hills during analysis.

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Summary of Cost Savings Opportunities

Opportunity Opportunity Description

Opportunity Detail Potential

Cost Savings

Transportation

1. Specialized

Transportation

Services

Establish a shared services center providing specialized transportation services

Located at the Intermediate Unit or on-site at one of the district facilities, specialized transportation services could be provided for students requiring transportation to schools other than their local school when these routes cross through other districts

$ 16,000-$32,000

Purchasing

2. General

Purchasing (e.g.

Paper, Office

Supplies*,

Copiers)

Enhance shared service centers to provide general purchasing services for the districts

Enhance purchasing and state/consortium purchasing to save on:

•Paper•Copiers•Office supplies

$60,000-$124,000**

*Office Supplies includes all General Supplies purchased for the district, including Instructional Supplies. ** Currently, Woodland Hills utilizes COSTARS for Copier purchases and IU#3 for Paper purchases.

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Summary of Cost Savings Opportunities, cont’d

Opportunity Opportunity Description

Opportunity Detail Potential

Cost Savings

Real Estate and Facilities

3. Custodial Supplies Purchasing

Enhance shared services for buying custodial supplies

Enhance the coordination efforts to purchase custodial supplies, including:

•Paper towels•Toilet paper•Hand sanitizer

$12,000-$17,000

4. Utilities Purchasing

Enhance shared services for major utility purchases

By enhancing the coordination of purchasing utilities (e.g. electricity, natural gas), districts can take advantage of economies of scale

$72,000 - $115,000

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Summary of Cost Savings Opportunities, cont’d

Opportunity Opportunity Description

Opportunity Detail Potential

Cost Savings

Technology Services

5. Technology

Purchasing

Enhance shared services for technology purchasing

Enhance purchasing and state/consortium purchasing to save on:

•Hardware•Software•Internet Servers

$14,000 - $39,000*

Instructional Services

6. Textbook

Purchasing

Create a shared services center for curriculum-related purchasing

Districts could increase purchasing power and reduce costs. Potential benefits include:

• Curriculum development• Textbook purchasing• Professional development

opportunities

$11,000- $22,000

Total PotentialSavings

$185,000-$349,000

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Woodland Hill’s Next Steps1. Determine which, if any, recommendations to pursue after

reviewing with the school board. The Common Cents team will provide support during this decision-making time.

For districts that decide to implement, next steps will be to:

2. Prioritize and weigh each selected recommendation based on potential savings and ease of implementation.

3. Finalize recommendations and participate in an Implementation Kick-Off meeting with other districts.

4. Develop an action plan for implementation with guidance from the Common Cents Team.

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The Common Cents team will work with your district to provide implementation support in the following ways:

• Work with the district on implementation action plans

• Supply assistance and materials for districts choosing implementation such as: Implementation Plan Templates RFP Templates (Request for Proposals) MOU Templates (Memo of Understanding) Vendor evaluation lists

• Monitor implementation plans to support success

Implementation Support

Questions?

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