Business Operations Overview by Houston Independent School District

Transportation – Construction and Facility Services – Police – Food Services – Business Assistance

BUSINESS OPERATIONS OVERVIEW Leo Bobadilla, Chief Operating Officer – November 08, 2011

Business Operations- Areas of Support 

Construction: Provide for all HISD construction including the implementation of a $1.178-billion capital building program.

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Facilities: Provides facility management services to 29.3 million square feet of facility space in over 306 campuses, administrative offices and other support locations covering over 300 square miles and over 2,100 acres

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Transportation: Administer transportation for about 29,000 students daily in almost 1000 buses traveling over 12 million miles annually

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Food Services: Administer a Food Services program that provides 240,000 meals per day.

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Police: Operate a fully accredited police agency employing approximately 200 police officers within the district

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What drives us… Safety and Integrity in everything we do     

Customer-Focused (exceed expectations) Innovative-Thinking (continuous improvement) Team-Work (together we can) Solution-Driven (no excuses) Relationship-Building (engage our stakeholders)

Transportation Overview

Nathan Graf, General Manager

Transportation: Budget Line Items 2011-2012 Budget - $35M* ď&#x201A;¨

Personnel - $27M

ď&#x201A;¨

Non-Personnel - $8M

19%

<1%

78%

Payroll Contracted Services Supplies/Materials Other Capital

Represents a 5% decrease from previous years budget

Transportation: Structure Transportation General Manager Support Services

Routing and Scheduling

Operations

Operations (Bus Drivers)

Fleet Operations Fleet Maintenance (Buses)

Fleet Safety

Support Services

Transportation: Facts 

On average 29,000 students ride the bus daily.

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HISD has about 1,000 buses in inventory, and travels about 13 million miles annually

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In November 2010, all district buses were converted to bio-diesel fuel, which is made from renewable sources such as soybeans.

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Approximately 15,000 field trips are provided annually.

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All district buses are equipped with Global Positioning Systems (GPS). All of the buses are equipped with cameras

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In August 2011 HISD became the first school district in Harris County to operate propane fueled school buses.

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All buses are equipped with “child safety checks” that require the driver to walk to the back interior of the bus before exiting

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All bus drivers receive at least 20 hours of training a year

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For every $1.00 spent on school bus transportation, about $0.41 is reimbursed by the state

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The district spends approximately 2.87% of general fund dollars on transportation. The state average is about 3.23%.

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HISD also operated about 1,070 fleet vehicles that travel over 8 million miles annually

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The district uses about 1.9 million gallons of bio-diesel and 600,000 gallons of gasoline each year.

Transportation: Key Performance Indicators How do we compare? As reported in the Council of Great City Schools (CGCS) Report, Managing for Results in America’s Great City Schools – A Report of the Performance Measurement and Benchmarking Project, 2011 (unpublished)

Key Performance Indicator

CGCS (Median) HISD

Average Age of Fleet

7.33 yrs

8.10 yrs

Cost per District-Operated Bus

$64,067.76

$47,130.94

Average Daily Ride Time

46.75 min.

32 min.

Miles Between Accidents

42,397.77

237,882.89

Transportation: Key Performance Indicators Metrics

Metrics

Route riders per mile – regular / magnet

% preventive maintenance completed on time

Route riders per mile – special education

On-time performance

Route riders per bus – regular / magnet

Miles Between Accidents

Route riders per bus – special education

Average Daily Ride Time

Miles between road calls or breakdowns

Preventable versus non-preventable accidents.

Maximum rider trip time

Average Age of Fleet

Turnover time per bus repair

Cost per District-Operated Bus

Cost per route

Bus accidents per 100,000 miles

Cost per student rider

Transportation costs as a percent of general fund

% of state reimbursement

Bus operator attendance per route

Annual hours of training for each driver

Annual survey of school administrators

Between CGCS KPI work and our local metrics we have over 200 metrics to gauge our performance.

Transportation: Looking Forward 

Increase our partnership with campus personnel to ensure that all student transportation needs are met.

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Provide the opportunity for shuttle service of students living within two miles of the campus.

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Expand the riding-readers club to more buses and possibly add the Wi-Fi Highway.

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Revive the “Buster” student safety program, which teaches kids how to ride the school bus safely.

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Expand the percentage of bio-diesel used in district vehicles and school buses. The current percentage is 5% bio-diesel, the target is 10%.

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Increase alternative fueled vehicles within the fleet.

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Implement monthly critical performance indicators at all levels of management to ensure that both safety and customer service remain at the forefront.

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Continue to monitor route efficiencies through use of the Global Positioning System (GPS).

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Increase student rider-ship without increasing expenses.

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Implement employee recognition programs that recognize achievements in customer service, on-time performance, and reduced idling times.

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Construction and Facility Services (CFS) Overview

Issa Dadoush, General Manager

CFS: Budget Line Items Construction and Facility Services 2011-2012 Budget - $44M* ď&#x201A;¨

Personnel - $26M

ď&#x201A;¨

Non-Personnel - $18M

10% 1% <1% 29%

Payroll 59%

Contracted Services Supplies/Materials Other Capital

Represents a 6% decrease in combined CFS and Custodial and Grounds budgets from previous years budget

CFS: Budget Line Items Custodial and Grounds Services 2011-2012 Budget - $34M* ď&#x201A;¨

Personnel - $27M

ď&#x201A;¨

Non-Personnel - $7M

11% <1%

Payroll Contracted Services Supplies/Materials 80%

Other

Represents a 6% decrease in combined CFS and Custodial and Grounds budgets from previous years budget

CFS: Facts Construction Services 

The current bond initiative is the third in a series of three bond issues aimed at building new schools and renovating, repairing, and replacing aging school facilities throughout the district



Closed Circuit TV (CCTV) systems installed or upgraded at 189 campuses

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11,400 cameras in active service at all campuses

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178 Construction Projects*

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134 Renovations and Expansions*

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24 New Schools Promised* 

12 new schools completed

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8 new schools in construction phase

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2 schools begin construction Fall 2011

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2 projects in the planning phase

* Status as of 09/30/11

CFS: Facts Facility Services 

Provides facility management services for: 

Nearly 29.3 million square feet of facility space

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In over 298 campuses, administrative offices and other support locations 

644 permanent buildings

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2,200 T-buildings

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And 2,100 acres of school and administrative areas.

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Covering over 300 square miles

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Average age of facilities: 40 years

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Average # of Work Orders Per Month: 11,000 (500 per day)

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Employees: Almost 2,000

CFS: Services Provided Areas of Service and Repairs 

Design



Telephone & Security Services (TSS)

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Construction



Fire Extinguishers



HVAC



Swimming Pools

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Plumbing

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Minor Construction



Electrical



Annual Tests & Inspections

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General Maintenance



Health and Safety/ Life Safety



Site Services



Custodial



Parking lots



Grounds



Pest Control

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Asbestos/Environmental Affairs



Playgrounds



Locks

CFS: Structure General Manager

CFS Administration

Facility Maintenance

Custodial/Ground Operations

Construction

Custodial Area I

Planning

Custodial Area II

Design

Maintenance Area III

Custodial Area III

Construction

Environmental

Grounds / Site Services

Maintenance Area I

Maintenance Area II

Energy and Sustainability

DDC/Alarms/ Communications

CFS: Key Performance Indicators How do we compare? As reported in the Council of Great City Schools (CGCS) Report, Managing for Results in America’s Great City Schools – A Report of the Performance Measurement and Benchmarking Project, 2011 (unpublished)

Key Performance Indicator

CGCS (Median) HISD

Custodial Cost per Square Foot

$1.71

$1.59

Custodial Workload (Sq. Ft. Per Custodian)

27,408.35

21,357.95

M&O Expenditures as % of General Fund Expenditures

5.54%

5.40%

Maintenance Cost Per Sq. Ft.

$1.89

$1.56

Custodial Supply Costs per Square Foot

$0.08

Utility Usage per Square Foot

52.71

62.59

CFS: Key Performance Indicators Metrics

Metrics

Custodial Cost per Square Foot

% of work orders completed annually

Custodial Workload (Sq. Ft. Per Custodian)

% work orders completed without a recordable accident

M&O Expenditures as % of General Fund Expenditures

% project budget spent on change orders due to errors

Maintenance Cost Per Sq. Ft.

% of employees participating in > or = 40 hrs. of job specific professional development

Work Order Completion Time (in Days)

Customer service survey results

Custodial Supply Costs per Square Foot

% of projects completed at or under budget

Utility Usage per Square Foot

% of projects completed on schedule

Response time for priority 1 work orders

% Minority/Women Owned Business Enterprises Participation

Average completion time for priority 1 and 2 work orders

Average # days to execute a contract (advertisement to award)

Between CGCS KPI work and our local metrics we have over 200 metrics to gauge our performance.

CFS: Looking Forward 

The Green School Challenge



Enterprise Energy Management System



Energy Performance Contracting Program

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Retro-Commissioning Program

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Expanded Single Stream Recycling Program

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Enhance and Optimize The Technology Capabilities Supporting The Facilities Function

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Continue To Engage and Communicate With Stakeholders

CFS: Looking Forward (continued) 

Continued Implementation of the Bond Program

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Reduce T-building Inventory

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Development of the 10-year Capital Master Plan

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Balancing Increased Customer Expectations with Appropriate Level of Service and Reduced Financial Resources

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Employee Development and Training

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Continuous Improvement In All Areas

Police Department Overview

Jimmy Dotson, Chief of Police

Police Department: Budget Line Items 2011-2012 Budget - $13M ď&#x201A;¨

Personnel - $12.7M

ď&#x201A;¨

Non-Personnel - $400K

<1% Payroll Contracted Services Supplies/Materials 97%

Other

Represents a 4% decrease from previous years budget

Police Department: Facts 

The HISD Police Department is an accredited police agency with the Commission on Accreditation of Law Enforcement (CALEA) since 2003 and has a sworn force of approximately 200 officers.

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Supports over 300 schools and has more than 40 support facilities to include athletic facilities, motor pools, and warehouses.

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Its jurisdiction encompasses over 300 square miles of the greater Houston area.

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The department serves about 230,000 students and employees as well as the citizens of Greater Houston and smaller cities within the boundaries of the Houston ISD.

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The department is a municipal style police department

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It has a support staff of approximately 30 civilians and over 650 crossing guards

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Police Department: Structure Police Department Chief of Police

Business Manager

Internal Affairs

Accreditation

Operations (Patrol Units)

Support Services (Training, Dispatch, Crime Analysis, Crossing Guards)

Police Department: Key Performance Indicators Metrics

Metrics

Percent of officers hired with greater than basic certificates Average response time for priority 1 calls

Number of calls for service

Number of officers for 1000 students/staff

Daily average # of officers assigned to a campus

Percent of accreditation standards met as a department

Number of administrative visits conducted

Average response time for 2 calls

Percent of overtime attributed to unplanned events

Between CGCS KPI work and our local metrics we have over 200 metrics to gauge our performance.

Police Department: Looking Forward 

Working closely with all campuses to ensure that they have a safe learning environment.

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Continue to hire the best qualified officers to service the district and implement ways to stay competitive to reduce the attrition rate.

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Continue to monitor the overtime budget which will ensure the available resource to address the many requests for police service before and after school hours.

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Providing more training opportunities for officers on the campus level to ensure that they have the skills needed to continue to perform at a high level.

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Cross train all personnel for both campus and patrol related duty.

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Implemented a district wide initiative geared toward tobacco education. This program will target children at all grade levels and educate them on the dangers of smoking. 4400 W. 18th Street | Houston, TX 77092 | 713-556-6150 Phone | 713-556-6015 Fax | www.houstonisd.org | 11/08/11

Food Services Overview Brian Giles, Senior Food Services Administrator

Food Services: Budget Line Items 2011-2012 Budget - $117M ď&#x201A;¨

Personnel - $44M

ď&#x201A;¨

Non-Personnel - $72M

38%

51%

Payroll Contracted Services Supplies/Materials Other

10%

Food Services: Facts    

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Total Employees – Approximately 1,800 270,000 meals served per day (as of May 2010) 77% of enrollment eligible for free or reduced meal status Food Services Production Facility:  15 acres  219,000 sq. ft.  32 shipping and receiving docks  Annual meal capacity of 52 million meals Services Provided:  Breakfast –Traditional Cafeteria Service & First Class Breakfast: 13 Million meals annually  Lunch Program: 25 Million meals annually  Summer Meals Program: 1.8 Million meals annually  Afterschool Snacks  Saturday Tutorial Meals  Full Service Catering  Nutrition and Wellness Awareness

Food Services: Structure Food Services General Manager

Finance

Food Services Operations

Food Services Support

Communications & Marketing

Elementary Operations Directors (2)

Food Services Support Facility

Secondary Operations Director

Support Services

Human Resources

Food Services: Key Performance Indicators How do we compare? As reported in the Council of Great City Schools (CGCS) Report, Managing for Results in America’s Great City Schools – A Report of the Performance Measurement and Benchmarking Project, 2011 (unpublished)

Key Performance Indicator

CGCS (Median) HISD

Total Costs per Revenue

96.17%

94.19%

Food Costs per Revenue

35.04%

34.26%

Labor Costs per Revenue

45.04%

36.86%

Fund Balance as a Percent of Revenue

6.69%

4.91%

Food Services: Key Performance Indicators Metrics

Metrics

Food Services Total Costs per Revenue Food Services Labor Costs per Revenue

Food Costs per Revenue Fund Balance as a Percent of Revenue

Average meals per labor hour

Breakfast and Lunch participation rates

% of campuses receiving 2 required site visits by City of Houston Health Inspectors

% of campuses receiving 2 documented visits by Quality Control Department

Outstanding student meal balances

Percent of free, reduced, and paid meal applications processed

Principal survey feedback

Between CGCS KPI work and our local metrics we have over 200 metrics to gauge our performance.

Food Services: Looking Forward 

Supply chain management needs to continue to improve to meet the current and evolving production needs as demanded by the new production based business model

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Balancing nutritional goals with funding

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Marketing dollars must be used strategically to help communicate services

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Working with our schools as partners to improved the health and wellness of all students

Business Assistance Alexis Licata, General Manager

Business Assistance: Budget Line Items 2011-2012 Budget - $4M* ď&#x201A;¨

Personnel - $3M

ď&#x201A;¨

Non-Personnel - $754K

4% 14%

1% Payroll Contracted Services Supplies/Materials Other 81%

Represents a 18% decrease from previous years budget

Business Assistance: Facts 

Review and audit M/WBE participation on all District proposals, including Bond projects. 2,726 vendors currently registered with Supplier Diversity as certified M/WBE firms

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Provide technical assistance to all suppliers regarding M/WBE compliance.

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Provide monthly educational opportunities for M/WBE firms to learn how to do business with the District. Held 9 workshops and in-serviced 310 firms on how to do business with the district in 20102011

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Review and purchase District business insurance, as well as claims administration.

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Conduct campus safety, fire, intruder, and indoor air quality inspections.

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Design asbestos abatement and mold remediation projects.

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Operations include: Inventory Control, Distribution, Furniture Services, and Vehicle Parts

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Manages the acquisition, distribution, auditing, billing and annual order process for all textbooks

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Responsible for receiving, inventorying, and distributing cost effective quality products to the District

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Conduct 250 site based textbook audits annually

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Business Assistance: Structure Business Assistance & Development General Manager

Coordinator

Risk Management

Warehouse Operations

Environmental Consulting Services

Operations

Safety & Loss Control

Inventory

Insurance

Vehicle Parts

Fleet Risk

Furniture Services

Business Assistance

Textbook Operations

Operations

Administration

Business Assistance: Key Performance Indicators Metrics

Metrics

Potential awards to M/WBEs: $41M or 31.5% of potential spend

Amount of recovery due to damages to District property due to others negligence

M/WBE certification for second-tier contractors

Amount of Campus Safety Inspections, Fire Safety Inspections, and Intruder Drills conducted

Percent of PC-2 forms completed within 5 days

Textbook losses per campus

Annual survey of school administrators

Order Fill Rate (less than 2 days).

Supplier On-time Delivery performance

Percent of inventory items in stock

Between CGCS KPI work and our local metrics we have over 200 metrics to gauge our performance.

Business Assistance: Looking Forward 

Implementation of supplier diversity software program

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M/WBE certification for second-tier contractors

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Implement quarterly workshops to update procurement staff on outreach opportunities and policy implementations.

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Improve accountability of district owned textbooks

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Implement Online PC-2 to eliminate manual entry of data

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Implement a process to assist with reducing the amount of surplus/obsolete items in inventory

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Implement Automated Data Collection (ADC) utilizing barcode technology for all inventory transactions.

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2010-11 Highlights/Results-By-The-Numbers  60% reduction in maintenance and operations overtime ($5.2M savings)  $3M net savings by contract restructuring for propertymanaged schools  $2.8 million savings by restructuring/reorganization  50% reduction in reactive work orders by reinstituting an effective preventative maintenance program  50% more schools painted at no additional costs  42 schools participating in EPA Tools for Schools implementation to proactively manage Indoor Air Quality 4400 W. 18th Street | Houston, TX 77092 | 713-556-6150 Phone | 713-556-6015 Fax | www.houstonisd.org | 11/08/11

2010-11 Highlights/Results-By-The-Numbers  2011 Customer Survey:  

Maintenance: 86% favorable v. 20% in 2010 Custodial / Grounds: 91% favorable v. 40% in 2010

 Completes nearly 110,000 Work Orders annually  Cost per square foot  

Maintenance: $1.56* v. CGCS median $1.89 per sq. ft.** Custodial: $1.59* v. CGCS median $1.71 per sq. ft.**

 Custodial realignment efforts:  

Secondary campuses opened six-days a week $1.7M savings in school-funded overtime for FY 2010

2010-11 Highlights/Results-By-The-Numbers  $935K energy savings by implementing proactive steps such as 4-day summer work week, energy-miser in vending machines, installing energy efficient/reliable equipment in schools, etc.  $30K in grants received in support of energy savings initiatives.  CFS and Finance worked to negotiate an electricity rate that has the potential to save the District millions in upcoming years.

2010-11 Highlights/Results-By-The-Numbers  2.90% below state average of 3.32% in Transportation costs as a percentage of the general fund is  Top 40 green fleet for 2011,Green Fleet magazine; top school district green fleet in the nation  7.8% decrease in crime in and around schools  71% increase in whole grains at lunch  9% increase in dark green/orange vegetable servings

2010-11 Highlights/Results-By-The-Numbers  Bond Work: Keeping our Promises* Planning Phase:  Design Phase:  Bid-Award Phase:  Construction Phase:  Warranty Phase:  TOTAL 

29 projects 37 projects 27 projects 68 projects 17 projects 178 projects

 8 new schools opened (built to Leadership in Energy and Environmental Design (LEED) Standards)  Over 8000 security cameras installed in schools.  Overall M/WBE Participation (Bond): 31% * Status as of the 09/30/11 Traffic Light Report 4400 W. 18th Street | Houston, TX 77092 | 713-556-6150 Phone | 713-556-6015 Fax | www.houstonisd.org | 11/08/11

2010-11 Highlights/Results-By-The-Numbers

Contact Information 



Leo Bobadilla Chief Operating Officer  Office: 713-556-6150  Email: lbobadil@houstonisd.org Nathan Graf, Transportation Services  Office: 713-613-3093  Email: ngraf@houstonisd.org Issa Dadoush, Construction & Facility Services  Office: 713-676-9278  Email: idadoush@houstonisd.org



Brian Giles, Food Services  Office: 713-491-5853  Email: bgiles@houstonisd.org Chief Jimmie Dotson, Police  Office: 713-842-3627  Email: jdotson1@houstonisd.org Alexis Licata, Business Assistance  Office: 713-556-7273  Email: tlcata@houstonisd.org

Questions?

4400 W. 18th Street | Houston, TX 77092 | 713-556-6150 Phone | 713-556-6015 Fax | www.houstonisd.org