The following provides factual information directly to the public and contributes to accurate public discourse.

Victoria High School’s budget has not been invoiced for $2.6m in costs associated with Burnside’s upgrade and does not warrant an independent investigation into the proposed lease of Victoria High School land for the Caledonia project.

The $2.6m SD61 contribution to the Victoria High School seismic upgrade and expansion capital project currently in progress is not a result of, nor related to, the SJ Burnside renovation upgrade completed in Spring 2019.

Please review the following facts below for clarification:

• SD61’s $2.6m contribution to the Victoria High School seismic upgrade, expansion and NLC project is directly related to the Victoria High School project alone.
• The $2.6m can be broken down as follows:

1. 1. $1m contribution to the expansion of 200 seats to increase the capacity from 800 to 1,000. The Ministry does not fully fund new space in a seismic upgrade project because the seismic project is only funded to remediate existing space; and
   2. $1.6m contribution to unfunded enhancements resulting directly from the decision to upgrade/renovate the existing building and to not replace the building.

• The $1.6m in enhancements resulting from the renovation of the 100+-year-old building include:

1. 1. Building envelope systems such as terra cotta façade and other heritage elements of the schools exterior;
   2. Hazmat remediation;
   3. Renovation of mechanical and electrical systems

• The difference between Option 3 Seismic Upgrade with Enhancements and Expansion Plus NLC and Option 4 Full 1000 Student Capacity Replacement Plus NLC in the Victoria High School March 2019 School Project Definition report is $962,753.
• The reconciliation for the difference between Option 3 in the March 2019 Project Definition Report and the August 2019 Funding Agreement is as follows:

• SD61 did not determine the $2.6m contribution to the Victoria High School project.Ěý When a capital project is approved or nearing the approval stage, the Ministry asks the District for a cashflow statement to determine the District’s capacity to contribute to a project.Ěý Once the Ministry has reviewed the cashflow the Ministry advises the District what the District contribution to the project will be.
• The Ministry’s Capital Project Funding Agreement states the enhancements to the Victoria High School project under the scope section. The Ministry’s Capital Project Funding Agreement letter to SD61 states the district contribution of $2.6m.
• SJ Burnside was renovated to accommodate the alternate school which was displaced from SJ Willis. SJ Willis was renovated as a swing space to accommodate Victoria High School students displaced during construction.
• SJ Burnside renovation was funded internally using various SD61 funds including Ministry restricted capital reserve, local capital and Annual Facility Grant.
• SJ Willis renovation was funded from the Victoria High School capital project.
• SJ Burnside renovation was included in the Victoria High School March 2019 Project Definition Report to demonstrate that the SJ Burnside renovation would not have been necessary had SJ Willis not been required for the Victoria High School Project.
• At March 2019, SJ Burnside had a $2m unfunded overrun that the District requested be paid for by the Ministry. The Ministry denied the request because it could not fund a completed project.
• The SJ Burnside renovation project cost, including the March 2019 unfunded expenditures are not included in the March 2019 Project Definition Report Option 3 nor in the Capital Project Funding Agreement. The SJ Burnside project is separate from the Victoria High School seismic upgrade, expansion and NLC project.
• The SJ Burnside unfunded overrun at March 2019 was $2m, not $2.6m.
• As stated in the SJ Burnside Renovation Upgrade Review Part 1, SD61’s $2.6m contribution to Victoria High School would have been $4.6m had there not been the $2m unfunded overrun on the SJ Burnside project, thus reducing the cashflow available to pay the $4.6m bridge. The Ministry reduced SD61’s contribution to $2.6m recognizing that SJ Burnside would not have needed upgrading were it not for the Victoria High School project and that there was less cash as a result of internally funding the SJ Burnside project. While there is no documentation to this effect, Ministry staff confirmed these facts in a conversation with the Secretary-Treasurer in Fall/Winter 2020.
• Related to SJ Burnside, the Project Funding and the Construction and Renovations Budget sections in the March 2019 Project Definition report are incomplete.Ěý From the Burnside Upgrade Review Report Phase 1 we know that by June 2019 the funding for the project was through internal sources and not the Victoria High School Project as follows:

• In the March 2019 PDR, the SJ Burnside funding table was incomplete and totalled $5.5m. In June 2019 the SJ Burnside project had been fully funded at $8.1m and did not use funding from the Victoria High School seismic upgrade, expansion and NLC project.
• Page 5 of the SJ Burnside Upgrade Review Report Part 1 displays a table that is meant to demonstrate that had all the requested or planned funding been received, the project would have been close to the revised budget. It does not demonstrate a further actualized $0.4m shortfall.Ěý The table is for demonstration purposes only.Ěý The above table provides the sources of funds that fully funded the SJ Burnside project.
• There is no $0.2m shortfall for the SJB Burnside project. The $8.1m project was fully funded using the funding sources indicate in the table above.
• The Caledonia land exchange and long-term lease proceeds are directed 100% to the Victoria High School seismic upgrade, expansion and NLC project. $2.6m of the proceeds are the District’s contribution to the Victoria High School capital project as stated above.Ěý The remainder of the proceeds are directed to amenities at Victoria High School, approved by Board motion on March 9, 2020, that include:
  • New fitness health classroom and weight room
  • Astronomy observatory deck
  • Upgraded Memorial Stadium bleachers, storage and lighting
  • Theatre enhancements and upgrades
  • Gymnasium flooring and window upgrades

• At its regular open Board meeting, the Board released the following June 2019 motion from in-camera. The motion sets out the re-allocation of local capital reserves and Ministry restricted capital reserves to fund the SJ Burnside project.Ěý Local capital allocations and reallocations are at the discretion, and within the normal operation, of the Board.

“That the Board of Education of School District No. 61 (Greater Victoria) release to the public the following seven motions pertaining to the SJ Burnside Project from the June 24, 2019, In-Camera Board of Education Meeting:

1. That the Board of Education of School District No. 61 (Greater Victoria) approve $1,000,000 from the Technology Replacement Reserve in Local Capital to be allocated to the SJ Burnside Project.
2. That the Board of Education of School District No. 61 (Greater Victoria) upon receipt of the $1,000,000 from Pacifica Housing restrict $1,000,000 for the Technology Replacement Reserve in Local Capital.
3. That the Board of Education of School District No. 61 (Greater Victoria) request $799,162 of unallocated funds in Ministry Restricted Capital to be allocated to the SJ Burnside Project.
4. That the Board of Education of School District No. 61 (Greater Victoria) approve $500,000 currently allocated to the Vic High Seismic Project in Local Capital to be allocated to the SJ Burnside Project.
5. That the Board of Education of School District No. 61 (Greater Victoria) approve $500,000 currently allocated to the Shoreline Seismic Project in Local Capital to be allocated to the SJ Burnside Project.
6. That the Board of Education of School District No. 61 (Greater Victoria) approve $200,838 currently allocated to the Quadra Warehouse Project in Local Capital to be allocated to the SJ Burnside Project.
7. That the Board of Education of School District No. 61 (Greater Victoria) upon receipt of future Local Capital dollars from the Vic High Seismic Project or another disposition allocate $500,000 to the Shoreline Seismic Project in Local Capital.”

• Ministry Restricted Capital reserves are accumulated over time resulting from disposition of property and subject to Ministry approval to spend. At June 2019 the restricted capital reserve had residual funds originating from the following:

• • Long Term lease revenues from Blanshard and Hampton schools
  • Disposal of Blanshard property
  • Disposal of partial Marigold and Spectrum properties
  • Interest
  • Ministry funded project underspends at Quadra Warehouse (seismic upgrade), Sir James Douglas (boiler upgrade), Glanford Middle School (boiler upgrade)
• Victoria High School project is jointly funded by the Ministry and SD61. SD61 is utilizing the proceeds from the land exchange and long-term lease resulting from the Caledonia project to fund its $2.6m share.Ěý The $2.6m will be held in local capital and then paid to the Ministry from local capital.
• The $2.6m is not surplus to the Victoria High School seismic costs. The $2.6m is a source of funding and contributes to the total funding of $79.7m for the project.Ěý The Victoria High School project is not paying for or contributing to the SJ Burnside project.
• Local capital reserves will build over the next year or two from disposition of Lansdowne Middle School lands to CSF, quit claim on SJ Burnside site for Pacifica Housing and potentially Lansdowne South to Victoria Hospice. Local capital does not require the Caledonia land exchange and long-term lease proceeds to replenish local capital.Ěý The Caledonia land exchange and long-term lease proceeds are 100% targeted to the Victoria High School seismic, expansion and NLC project as outlined above.Ěý The Caledonia lease proceeds have not been committed by Board motion to replenish any local capital balances used to fund SJ Burnside.
• At a point in time the Board made a decision to supplement the Victoria High School’s project furniture, equipment and other budgets by allocating $500,000 in local capital. In June 2019 the Board made a decision to reallocate that reserve, as is well within normal Board operations.Ěý The local capital initial allocation was outside of the Ministry funding for the Victoria High School project.
• Relating to SD61 intending to reimburse this funding with anticipated “Caledonia proceeds” from the proposed lease of Vic High land, the statement actually reads:

A motion WAS NOT tabled to show future capital coming back to Vic High because the Board has every intention to use the Caledonia proceeds toward Vic High.Ěý When the district allocates upcoming proceeds in Local Capital for the Vic High project, a motion will come forward at that time.

• The initial allocation of $500,000 to the Vic High project was to supplement the project cost if needed. The $500,000 is not part of the Vic High project Ministry funding and is not being taken from the proceeds of Caledonia.Ěý 100% of Caledonia proceeds are being directed to Vic High.
• In June 2019 the Board reallocated $2.2m local capital reserves by Board motion. Of the $2.2m, $1m was reallocated from the technology reserve to be replenished from the SJ Burnside quit claim and Pacific Housing proceeds.Ěý $500,000 was reallocated from the Shoreline seismic project (not yet approved and no Ministry funding received) to be replenished by the Vic High seismic project (not the Caledonia proceeds, and contingent on a Vic High seismic project underspend) or future property dispositions.Ěý The remaining $700,000 will not be replenished to the original allocations because the proceeds from Caledonia will be directed 100% to Vic High thus freeing the Board from holding a local capital contingency for the Vic High project, and the Quadra Warehouse Project underspend for which there is no need to hold a reserve.
• The swing space at SJ Willis was not required until the Vic High project was approved. The Ministry funded the SJ Willis upgrade as part of the total cost of the Vic High project.Ěý Now that SJ Willis is upgraded, it can be used for future seismic project displacement if suitable.Ěý If the Vic High project had not been approved, students would not have had to move from SJ Willis to SJ Burnside at that time.Ěý It’s true if “Project B” had been approved and Vic High had not AND the SJ Willis space was suitable for Project B’s displaced students then the Project B budget would have included the SJ Willis upgrade.Ěý As it turns out, Vic High was the FIRST project to displace students such that SJ Willis needed to be upgraded and SJ Burnside needed to reopen.
• The Victoria High School seismic upgrade, expansion and NLC project budget of $79.7m does include $6m for Victoria High School’s NLC. The Ministry approved option includes the actual words Neighbourhood Learning Centre in the option title.Ěý The $6m is clearly set out in the PDR and the funding agreement.
• The $2.6m District contribution was made public in a June 28, 2019 media release, on the District’s webpage /news-events/community/vic-high-planning-for-the-future/ in June 2019 and in the November 25, 2019 staff presentation to the Board.
• Relating to the explanation of why Vic High’s capital project funding agreement includes a contribution of $2.6m in local capital that is surplus to the seismic upgrade budget of $77.1 m described in Vic High’s PDR:
• The $77.1m referenced in the PDR does not include the NLC budget of $6m. The total maximum budget reflected in the PDR with the NLC is $83m.
• The total maximum budget reflected in the funding agreement is $79.8m
• The PDR does not reflect a Sources of Funding section whereas the Funding Agreement does. The funding agreement shows a $2.6m contribution from SD61 and the remainder funded by the Ministry through the capital plan.
• The PDR is dated March 2019. The project approval, including the requirement for SD61 to contribute $2.6m, is dated June 2019.Ěý The funding agreement is dated August 2019.Ěý Between March 2019 and June 2019, SD61 was made aware, and made public, its $2.6m contribution to the project.Ěý The $2.6m is not surplus to the seismic upgrade but forms part of the total $79.8m funding for the project.

WITH NLC	Project Description Report - March 9, 2019	Funding Agreement - August 2019	Difference
Total Capital Project Budget	34,010,025	33,995,487	14,538
Total Identified Supplemental Items:	33,336,326	30,224,643	3,111,683	*
Total Identified Risk Items Including $6m NLC	15,679,501	15,533,802	145,699
Maximum Capital Project Funding Total	83,025,852	79,753,932	3,271,920
* Items Removed from Capital Project to MOE School Enhancement Funding (SEP)
- Windows			(1,900,000)
- Mechanical (Boiler)			(1,500,000)
Total Project Re-Directed to Sep Funding			(3,400,000)

WITHOUT NLC	Project Description Report - March 9, 2019	Funding Agreement - August 2019	Difference
Total Capital Project Budget	34,010,025	33,995,488	14,537
Total Identified Supplemental Items:	33,336,326	30,224,643	3,111,683	*
Total Identified Risk Items Including $6m NLC	15,679,501	15,533,802	145,699
Without NLC	(5,985,683)	(5,953,951)	(31,732)
Maximum Capital Project Funding Total	77,040,169	73,799,982	3,240,187
* Items Removed Capital Project to MOE School Enhancement Funding (SEP)
- Windows			(1,900,000)
- Mechanical (Boiler)			(1,500,000)
Total Project Re-Directed to Sep Funding			(3,400,000)

There have been several publications including a video, media releases, and social media posts that infer that the Greater Victoria School Board did not follow policy on the disposal of land near Vic High and that the school’s current track is not being upgraded due to an eight metre greenway that will be used for an affordable housing project. Further, there continue to be claims that a cost overrun for the SJ Burnside project has taken away funding for additional amenities at Vic High, more specifically taking away funding for an upgraded track.

Please review the following facts below for clarification:

• The Victoria High school project has gone through extensive consultation from start to finish, starting in 2018 with consultation on the seismic options.
• Last fall, there was another consultation process around the disposal of land which would result in additional funding for the school’s seismic project. Note: every school district must contribute to a major capital project.
• This additional funding from the land disposal resulted in the District having $1.5-$1.9 to fund additional amenities. A visioning group was created and consultation proceeded on how the additional funding should be allocated. What we heard through the vision group’s work and directly from the community through consultation was that these funds be focused on an astronomy deck, fitness-health classroom enhancements, and upgrading the memorial stadium.
• The Ministry funding announced in June 2019 did not include funding for outside amenities. Due to the cost of the stadium project and funding constraints, the district was not afforded the opportunity to invest in an expanded track. Please refer to our amenities report with costing options.
• For all the details please review our background info, media releases, engagement summary reports:

Ěý

*Please review our website where you will find this information – including the report that went to the Board featuring public input and the costs associated with all of the amenities.*

• The expansion of the track was not recommended or passed by the Board due to the high cost. It has been estimated and reported that the envisioned eight lane track would cost approximately $7 million. To date, the Alumni Association raised $166,000, and with partner funding, approximately $500,000.
• Vic High Alumni Association has supported the current proposal for improving fields and related facilities through its letter of support:

• In addition, there have been claims that the disposal of land did not follow Board Policy. This is not true.
• The consultation held in Fall 2019 was a disposal consultation guided by the Board’s Real Property Disposal Policy 7110.Ěý The Board’s policy excludes easement and the Ministry of Education approval is not required for an easement.
• Following Policy 7110, the Board determined the 8m greenway was not required for educational purposes since it was a gravel covered area mainly rented out to the film industry.
• Land valuation is determined by highest and best use, taking into consideration encumbrances and other restrictions.
• When considering land disposition the Board must address that the sale or long-term lease of land is not disposed of at less than fair market value if it is to a for-profit party. However, the Board can approve the sale or long term lease of land under fair market value if it is to a local government, community agency, or other not-for-profit. In the case of this lease it would be with an organization that falls under the category of local government, community agency, or other not-for-profit.
• Further, there have been statements made about an announcement in January 2018 confirming the construction of the envisioned track. To be clear, this announcement was made by some members of the school’s alumni as they ramped up efforts to fundraise for the track. The Board of Education or School District did not commit to the construction of a new multi-million dollar track. The Board and School District supported their fundraising efforts but would not commit to any plans until further public consultation.

To address further misinformation about the funding of the project, please review the following:

• It is important to note that before any Ministry funding was ever announced, it was determined that SJ Willis and SJ Burnside were part of a plan to create a “swing space”, a space to house students for two years while Vic High was seismically upgraded.
• SJ Burnside required upgrades to support the programming offered at SJ Willis (alternative education, continuing education, and distributed learning options) and make space for Vic High students at SJ Willis, just up the street from Vic High.
• The Board determined to fund the SJ Burnside renovation project internally in anticipation of students having to be displaced during the construction at Vic High. In addition, this decision would create improved learning environments for all learners at both SJ Burnside and SJ Willis.
• Since the SJ Burnside project was completed before the funding was announced for Vic High, the Ministry could not contribute to a completed project.

The claim that a deficit from the SJ Burnside project took away funding from the Vic High seismic project and Vic High’s amenities is not true. Vic High’s budget was not reduced due to a overage on Burnside.

• A $2M shortfall of SJ Burnside Educational Centre was attended through the means of:
  1. Technology replacement reserve
  2. Ministry Restricted Capital
  3. Local capital set aside for Vic High Seismic Project (NOT Ministry $77.1M funding nor $4.1 – $4.5M Caledonia proceeds including amenities funding)
  4. Local capital set aside for Shoreline Seismic Project (NOT Ministry funding yet to be announced)
  5. Surplus from Quadra Warehouse Project
• Further, local capital dollars are accumulated in two ways at the Board’s discretion as follows:
  1. Monies the Board sets aside on an annual basis from Operating funds.
  2. Past property dispositions where property and buildings were shared with the MOE upon acquisition/construction.Ěý Vic High is a future disposition; therefore, it is not included in the current local capital balance used to fund the Burnside project.
• The District’s cost-sharing of $2.6M on the Vic High Project is due to the high costs of the seismic option, which includes preserving the school’s heritage elements. The Ministry is providing us with $77.1M, and the estimated cost of the project is $79.7M, which includes the cost to renovate SJ Willis to accommodate students while Vic High is upgraded.
• All school districts are required to contribute to capital projects. This money can come from Operating funds and Local Capital at the Board’s discretion or Ministry of Education Restricted Capital at the Board’s and Ministry’s discretion.
• Local capital is allocated solely at the discretion of the Board.
• There was and continues to be $500K earmarked from future local capital for the Vic High project.
• A motion was passed in June 2019 to temporarily reallocate the $500K to cover a funding shortfall at SJ Burnside due to the timing of incoming revenue. Upon future receipt of local capital, the $500K will be allocated back to the Vic High Seismic Project as the Board had originally intended.
• A motion was not tabled to show future local capital coming back to Vic High because the Board has every intention to use the Caledonia proceeds towards Vic High. When the district allocates upcoming proceeds in Local Capital for the Vic High project, a motion will come forward at that time.
• It’s important to note that the Ministry has also taken $2M off the District’s contribution to the Vic High Project due to the District’s $2M local capital contribution to SJ Burnside.Ěý This positioned the school district to only have to contribute the $2.6M to the Vic High project rather than $4.6M.
• The $2M funding shortfall at SJ Burnside has not taken anything away from the Vic High project.
• The $2M funding shortfall at SJ Burnside has not been funded by any Vic High Ministry funding nor Caledonia proceeds.

To clarify, the claim that a deficit from the SJ Burnside project took away funding from the Vic High seismic project and Vic High’s amenities is not true.

Please review the following facts below:

• The $2M shortfall of SJ Burnside Educational Centre was attended through the means of:

1. 1. Technology replacement reserve
   2. Ministry Restricted Capital
   3. Local capital set aside for Vic High Seismic Project (NOT Ministry $77.1M funding nor $4.1 – $4.5M Caledonia proceeds including amenities funding)
   4. Local capital set aside for Shoreline Seismic Project (NOT Ministry funding yet to be announced)
   5. Surplus from Quadra Warehouse Project

• Further, Local capital dollars are accumulated in two ways at the Board’s discretion as follows:

1. 1. Monies the Board sets aside on an annual basis from Operating funds.
   2. Past property dispositions where property and buildings were shared with the MOE upon acquisition/construction.Ěý Vic High is a future disposition; therefore, it is not included in the current local capital balance used to fund the Burnside project.

• The District’s cost-sharing of $2.6M on the Vic High Project is due to the high costs of the seismic option, which includes preserving the school’s heritage elements. The Ministry is providing us with $77.1M, and the estimated cost of the project is $79.7M, which includes the cost to renovate SJ Willis to accommodate students while Vic High is upgraded.
• All school districts are required to contribute to capital projects. This money can come from Operating funds, Local Capital or Ministry of Education Restricted Capital.
• Local capital is allocated solely at the discretion of the Board.
• There was and continues to be $500K earmarked from future local capital for the Vic High project.
• A motion was passed in-camera in June 2019 to temporarily reallocate the $500K to cover a funding shortfall at SJ Burnside due to the timing of incoming revenue. Upon future receipt of local capital, the $500K will be allocated back to the Vic High Seismic Project as the Board had originally intended.
• A motion was not tabled to show future local capital coming back to Vic High because the Board has every intention to use the Caledonia proceeds towards Vic High. When the district allocates upcoming proceeds in Local Capital for the Vic High project, a motion will come forward at that time.
• It’s important to note that the Ministry has also taken $2M off the District’s contribution to the Vic High Project due to the District’s $2M local capital contribution to SJ Burnside.Ěý This positioned the school district to only have to contribute the $2.6M to the Vic High project rather than $4.6M.
• The $2M funding shortfall at SJ Burnside has not taken anything away from the Vic High project.
• The $2M funding shortfall at SJ Burnside has not been funded by any Vic High Ministry funding nor Caledonia proceeds.