Art Cockfield's presentation to Central PARC Public meeting June 11, 2012

1. Process Errors and the
True Costs of School
Closures
(Round Two)
Arthur Cockfield
June 11, 2012

2. Overview
1. Review of building costs and operating
gains/losses (from report)
2. Serious concerns about process to
calculate costs of closure: Public
statements by Board Director make it
appear matter is now closed
3. Ruling sought from PARC Chair (or
trustees) on matters of process

3. Main Conclusions of Our Report
 Non-financial factors are very important
and we support keeping all three schools
open, however:
 Limestone Board would save the most
money by closing LCVI
 Limestone Board would save less money
by closing KCVI or QECVI

4. Board Estimate of Building Costs
 Only looks at backlog repairs:
 LCVI + CP building: $18,094,003
 KCVI: $20,080,959
 QECVI: $17,329,178
Problem: Ignores ‘all in’ cost estimates by outside
firm (Stantec) hired by Ministry and Board

5. Actual Building Costs
 According to outside expert (Stantec) must
look at (a) backlog of repairs, (b) needed
upgrades over next ten years, (c) and
accessibility costs
 Three high schools require major repairs,
Calvin Park building in worst shape
 LCVI site ‘all in’ costs are $32,935,226
 KCVI costs are $25,827,751
 QECVI costs are $21,596,305

6. 2010 Operating Gains/Losses
 All figures taken directly from Board
accountant’s financial statements:
 LCVI has an operating loss of $919,884
 QECVI has an operating loss of $613,599
 KCVI has an operating gain of $392,074

7. PROCESS ERROR:
Three Public Statements by Board
Director with Problems
 Allquotes taken from Mike Norris, “School
Closing Decision Set for Early 2013”, Whig
Standard, May 23, 2012, available on
Internet

8. Statement Number 1
 BoardDirector: “Should we need to bring
each of the schools to building code
standards, the cost will be $20 million for
each of the three schools.”

9. Problems with the First Statement
 This ignores Calvin Park building and ‘all
in costs’
 New Option 4 to close LCVI incorrectly
states a long term capital savings of
$12,650,330
 Board Director’s view that all the same
mainly hurts QECVI as it loses big cost
advantage over LCVI (when there is really
an $11 million difference)

10. Statement Number 2
 BoardDirector: “It’s not accurate to say
Kingston Collegiate makes money. That’s
not how schools function.”

11. Problems With Second Statement
 Board’s own accountants use terms ‘operating
gains’ and ‘operating losses’
 Purpose of these financial statements is to hold
Director and Board accountable to taxpayers
and trustees
 Numbers taken from School Information Profiles
– defined by Board as “A set of criteria
established by the Board based on Ministry
guidelines to determine the value of a school for
comparison purposes.”
 If irrelevant why does law compel Board to
disclose these financial statements?

12. Also Ignores Financial Costs of
Closing KCVI as a Full School
 Hard to measure as has never happened before
(as per Dr. Dixon in Appendix D of our report)
 Massive transition costs from changing
programs and thwarting interests of students
and parents at a full school
 Need realistic revenue projections if KCVI is
closed (lose IB revenues, less than 500 students
may go to QE or LC each, etc.)
 Contrary to provincial government orders to only
close ‘under-utilized’ schools (Ont. Budget 2012)

13. Statement Number 3
 Board Director: “You have to understand
that should one of the schools be closed,
there’s potential savings of approximately
$1 million, regardless of which school is
closed.”
 (Also from article: “Hunter took issue with
Cockfield’s claim that Kingston Collegiate
was able to make big gains because the
principal and staff have found ways of
cutting costs.”)

14. Problems with Third Statement
 Due to different expense flows not all schools
are equal
 Example: In 2010, Board indicates LCVI spent
$1,629,934 for ‘utilities and custodians’; KCVI
spent $1,372,051 for same expenses even
though it has roughly 400 more students
 Board’s own numbers show different operating
savings for closing each school and indicate in
new Option 4 that greatest ‘annual net operating
savings’ of $1,218,000 generated by closing
LCVI

15. Main process error
 Board Director is boss of PARC Chair, principals
and teachers on PARC committees (half the
votes)
 Board Director should never make public
statements (even if well-meaning) that appear to
pre-judge critical issues
 Process undermined:
 (a) appearance of bias and improper influence;
 (b) statements inaccurate and misleading; and
 (c) Director is ultimate recipient of PARC
recommendations.

16. Conclusion
 PARC Chair, members of PARC committees,
trustees and Board staff appear to be following
proper process
 Is it ever acceptable for a Board Director to
make public statements that appear to pre-judge
important issues before PARC committees?
 Is this a fatal process error?
 Due to conflict of interest with PARC Chair,
trustees should provide input
 May we have a ruling?