P3 Schools Get Upgrades And Control Of Concessions

NOTE: Details of the agreement between Scotia Learning Centres and the Department of Education follow this release.

Students and teachers at P3 schools owned by Scotia Learning Centres will have access to new technology and their schools will have full control of cafeteria and other concession revenues under an agreement between the Department of Education and Scotia Learning Centres announced today, April 7.

"We are pleased to have reached an agreement that benefits students and schools," said Education Minister Jamie Muir. "The agreement will see schools upgrading technology for students and benefiting from concession revenues as other schools do."

The agreement means there will be no arbitration required on the use of the technology refresh funds and related issues at these schools.

The negotiations were in response to an arbitrator's ruling in 2003. The ruling addressed a variety of issues. Two required further negotiations. They centred on the allocation of money set aside for management of the schools' technology and the control over concessions and community use of schools.

Agreements with various P3 contractors addressed funding for technology refresh -- the upgrading of computers, software and other technology -- and technology support differently. In accordance with their contracts, Ashford Investments and Nova Learning Resources can pay for technology support from the technology refresh fund. However, Scotia Learning Centre's contract required them to bear the cost of technology support.

Scotia Learning objected, citing a "fairness" ruling from the 2003 arbitration decision, stating that it should be treated in the same manner as other P3 contractors.

The 2003 decision had also awarded Scotia Learning control over all issues related to school concessions, 35 per cent of net profits from those operations, and community use of the schools.

Under the new agreement, Scotia Learning will receive a $2.3- million reimbursement from the technology fund for services already rendered, and the balance, $1.5 million, will mean schools can upgrade equipment. It also means that Scotia Learning schools will regain control of their technology refresh funds like other P3 schools. The fund will receive an annual investment of $690,000.

The agreement will give the schools 100 per cent of cafeteria concession and community use revenues. Recognizing that most of the schools built by Scotia Learning have not had the benefit of revenue from school based concessions for some time, a $250,000 payment will immediately be divided among schools based on their enrolment. This does not include the two schools in Chignecto Central which operated under other arrangements.

Schools affected by the new agreement are operated by the Halifax Regional School Board, the Chignecto Central Regional School Board, and the Conseil scolaire acadien provincial.

NOTE: Following are details relating to the agreement reached between Scotia Learning Centres and the Department of Education.

Background:
Scotia Learning Centres (SLC) operates 13 of 31 P3 schools in Nova Scotia. The others are operated by Nova Learning Resources and Ashford Investments.

The SLC schools are:

• Halifax Regional School Board: Bedford South, Eastern Passage Education Centre, Lockview High, Madeline Symonds Middle School, Park West, Portland Estates Elementary, Ridgecliffe Middle School, Sackville Heights Elementary, St. Margaret's Bay Elementary
• Conseil scolaire acadien provincial: Ecole Beaubassin, Ecole Bois-Joli
• Chignecto-Central Regional School Board: Enfield District Elementary, Pictou Elementary.

History:
In 1998 a standard approach was taken with all P3 agreements, but there were differences in contract terms based on individual negotiations. SLC was the first consortium to reach a deal with the province. All P3 agreements created a technology refresh fund that received payments based on square footage. In the case of the 13 SLC schools, it amounts to about $690,000 per year in total.

SLC Arbitration 2002-03:
In January 2003, a variety of contract issues were decided by arbitration, but two had continuing relevance.

1. Fairness The arbitrator ruled that SLC signed its agreement with reliance on an oral promise to be treated fairly compared with any consortia signing subsequent agreements. Ashford and Nova Learning's contracts allow them to pay for technology support from the technology refresh fund. However, SLC's contract required SLC to bear the cost of technology support.
2. Concessions The arbitrator ruled that SLC had full control over concessions and community use of schools. The arbitrator also ruled that SLC was entitled to a 35 per cent share in the net profit from concessions and community use of schools. Examples include cafeterias, rentals, and beverage machines.

Response to 2002-03 ruling:
SLC argued that the obligation of fairness had not been met. Arbitration was scheduled for May 2005. In the interim, SLC assumed control over operation of school cafeterias, community use, concessions and related revenues in accordance with 2003 decision. The arbitration decision related to technology and prevented ongoing refresh.

Department of Education's risk assessment The department felt that SLC had a strong argument on the fairness question surrounding technology, and an arbitration proceeding would have been long and expensive. Further, there was a risk arbitration would entitle SLC to 21 per cent of the technology fund in profit clauses and administration fees. This amounted to about $3 million over the life of the agreement. It was therefore decided to negotiate a solution that contained as many benefits as possible for students, boards, and schools.

Key elements of agreement:

• Province assumes control of technology refresh fund.
• Boards/schools regain control of community use and related revenues.
• Boards/schools regain control of concessions and related revenues.
• SLC releases claim to concessions and community use revenues.
• SLC will receive a one-time reimbursement of $2.3 million for technology support services provided to schools from their inception to January 2005. Future technology support will be provided by the school board and charged to the technology refresh fund.

Benefits to schools and boards:

• Technology refresh can commence with the $1.5 million remaining in the fund. The fund will continue to receive payments of $690,000 per year. This puts these schools on a par with all other P3 schools.
• The department, boards and schools will control the refresh fund in the future.
• Schools/boards will control all elements of concessions and community use access as if the school was provincially owned.
• Schools will receive 100 per cent of cafeteria, concession and community use revenues in the future.
• In recognition that 11 schools have not had the benefit of 100 per cent of school-based concessions for some time, there will be a one-time payment of $250,000 to be divided among the schools according to enrolment.