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The Chester County Intermediate UnitFacilities Management Success

Construction Management• 410,000 s.f. in new construction

projects.

• Construction of two vocational schools and one Educational Services Center.

• Over 538,000 s.f. in renovation projects.

Operations Management• Manage 1,489,000 s.f. at fourteen

primary locations in five county area.

• Assisting the Octorara Area School District with Management of Facilities and Operations.

• CCIU electricity management programs have saved $855,796 in 4 years.

• Awarded $500,000 solar energy grant.

• Joint Purchasing Program saves

school districts and municipalities over $1.4 million per year.

Chester County Intermediate Unit Partnership with ServiceMaster

• Recognition of unique school operational requirements.

• Understanding of Collective Bargaining Agreements and benefit costs.

• Budgetary challenges created by Act 1 and economic climate.

• Objective analysis of existing school district operations.

• Data driven recommendations and logical implementation plans.

• High Customer Service Standards

Comparison of Total Operation and Maintenance CostsChester County School Districts

2010-2011 Annual Financial Report Data

West Chester Area SD

Downingtown Area SD

Coatesville Area SD

Tredyffrin-Easttown SD

Owen J Roberts SD

Great Valley SD

Unionville-Chadds Ford SD

Kennett Consolidated SD

Phoenixville Area SD

Avon Grove SD

Oxford Area SD

Octorara Area SD

15,320,913

13,121,864

10,958,814

9,928,111

8,362,149

6,272,925

5,799,728

5,674,849

5,287,464

4,365,133

3,842,058

2,889,807

Comparison of Operation and Maintenance Costs per StudentChester County School Districts

2010-2011 Annual Financial Report Data

Owen J Roberts SD

Phoenixville Area SD

Coatesville Area SD

Great Valley SD

Tredyffrin-Easttown SD

Unionville-Chadds Ford SD

Kennett Consolidated SD

West Chester Area SD

Octorara Area SD

Downingtown Area SD

Oxford Area SD

Avon Grove SD

1,660

1,592

1,576

1,557

1,538

1,414

1,327

1,295

1,119

1,114

1,013

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Comparison of Operation and Maintenance Costs per StudentSchool Districts with Enrollment of 3,700 – 4,800 Students

2010-2011 Annual Financial Report Data

Cheltenham Township SD

Rose Tree Media SD

Upper Merion Area SD

Colonial SD

Great Valley SD

Wissahickon SD

Upper Dublin SD

Unionville-Chadds Ford SD

Garnet Valley SD

Kennett Consolidated SD

Springfield SD

Southeast Delco SD

Oxford Area SD

2,007

1,772

1,712

1,684

1,557

1,535

1,533

1,414

1,334

1,327

1,253

1,097

1,013

Comparison of Operation and Maintenance

Costs of Delaware Valley School Districts

2010-2011 Annual Financial Report Data

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Privileged & Confidential

With more than 5,000 company-owned and franchise locations in North America, 100+ offices in Pennsylvania alone, Memphis-based ServiceMaster is one of the world’s largest, and most respected, residential and commercial service networks. ServiceMaster Commercial combines trusted ServiceMaster® brands, a network of pre-screened and qualified service providers and a convenient, cost- effective technology platform to manage your facilities’ maintenance needs. Access and manage the array of ServiceMaster® Commercial services, all from one single portal and through one point of contact.

21,000 Company Employees

10,000 Service Vendors

$3BilAnnual Revenue

7Trusted Brands

5,000 Locations in North America

8Mil Customers Serviced

ServiceMaster By the Numbers

Privileged & Confidential

10

We utilize the latest technology to streamline processes, collect and view data, deliver services and generate reports on demand. We will customize a web based portal for the Kennett Consolidated School District that provides:

Desktop, tablet and mobile

Request services and access live information in the office

or field

On-demand reporting

Up-to-date, customizable reporting illustrates trends in spending and service delivery

quality

Proactive alerts

Proactive, event-driven alerts bring critical situations to the

attention of managers

System connectivity

Our platform integrates with your back office to leverage

existing processes, as needed

Privileged & Confidential

11

Privileged & Confidential

12

Phase 1Improve Operations and Reduce Costs

Once ServiceMaster is on site, promptly begin a thorough evaluation of staffing in order to ensure that departments are properly, efficiently and effectively staffed.

Our preliminary research of the Kennett Consolidated School District has indicated that we can potentially reduce the custodial staff , that more efficient equipment and service delivery techniques can be used and scheduling can be improved upon. (Proposed changes are subject to collective bargaining restrictions)

We can estimate that full implementation of our changes will bring savings in excess of $400,000 annually.

ServiceMaster will agree to purchase equipment currently owned by the district. The purchase price and terms can be discussed after inspection.

ServiceMaster Proposal

INCREASED CONTROL Allows management to monitor all services in real

time for all staff. Provides full visibility from one vantage point via

online portal Proactive alert system to alert appropriate staff of

priority events or situations Work Order management technology

ENSURED COMPLIANCE Legal compliance by working directly with school

districts legal representation budgetary certainty by entering budgets into

online portal and keeping a real time accounting of all activity

contractor licensing via our vendor management team

risk management handled by ServiceMaster Insurance & tax issues handled by Service Master

support staff

REDUCED COSTS Provides manual/administrative processing

efficiencies via our central support staff streamlines inefficient processes Leverage ServiceMaster’s buying power

ServiceMaster significantly reduces process and operating costs without any infrastructure investment.For Kennett Consolidated School District, it means:

MORE EFFECTIVE FACILITY SERVICE MANAGEMENT

Single point communication to better manage staff/vendors throughout entire portfolio of locations

immediate access to allservice and budget information via online portal.

better document organization by having direct access to all critical data via the online portal.

customized reports to meet the needs ad requirements of all level of management

Best in Class service providers

ENHANCED COMMUNICATIONS place and track service requests by

phone, fax, e-mail, cell, etc. dedicated Management team support 24/7/365 operations

Projected Savings: Option One (Recommended)

Existing Night Custodial Staff compared to ServiceMaster Services

2013 2014 2015Projected Saving at existing staff level In-house 1,401,799$ 1,513,728$ 1,595,023$ Night Staff Only SVM Employee 1,140,174$ 1,168,678$ 1,197,895$

Savings 261,624$ 345,049$ 397,127$ % from Baseline Total 18.7% 22.8% 24.9%

Projected Savings thru Staff reconfigurations In-house 1,401,799$ 1,513,728$ 1,595,023$ and ServiceMaster Programs SVM Employee 1,009,054$ 1,034,280$ 1,060,137$

Savings 392,744$ 479,447$ 534,885$ % from Baseline Total 28.0% 31.7% 33.5%

Projected Savings: Option Two (Recommended for Future Consideration)

Existing Day & Night Custodial Staff compared to ServiceMaster Services

2013 2014 2015Projected Saving at existing staff level In-house 1,641,116$ 1,772,580$ 1,868,054$ Night & Day Staff Only SVM Employee 1,339,434$ 1,372,920$ 1,407,243$

Savings 301,682$ 399,660$ 460,811$ % from Baseline Total 18.4% 22.5% 24.7%

Projected Savings thru Staff reconfigurations In-house 1,641,116$ 1,772,580$ 1,868,054$ and ServiceMaster Programs SVM Employee 1,205,491$ 1,235,628$ 1,266,519$

Savings 435,625$ 536,952$ 601,536$ % from Baseline Total 26.5% 30.3% 32.2%

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Projected Savings: Option Three (Recommended for Future Consideration)

Existing Head Custodial Staff compared to ServiceMaster Services

2013 2014 2015Projected Saving at existing staff level In-house 460,018$ 500,283$ 529,175$ Head Custodians Only SVM Employee 422,168$ 432,722$ 443,540$

Savings 37,850$ 67,560$ 85,634$ % from Baseline Total 8.2% 13.5% 16.2%

Projected Savings thru Staff reconfigurations In-house 460,018$ 500,283$ 529,175$ and ServiceMaster Programs SVM Employee 379,951$ 389,450$ 399,186$

Savings 80,067$ 110,832$ 129,988$ % from Baseline Total 17.4% 22.2% 24.6%

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Projected Savings: Supplemental Supply Savings with Option 1 and 2 (Recommended)

Existing Supply Expense compared to ServiceMaster Services

2013 2014 2015Supply Costs In-house 88,518$ 90,288$ 92,094$

SVM 64,794$ 66,375$ 67,998$ Savings 23,724$ 23,913$ 24,096$

% from Baseline Total 26.8% 26.5% 26.2%

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Engage ServiceMaster to provide night custodial services only (Option One) and related supply procurement effective July 1, 2013.

Projected Savings in 2013-2014: $416,468

Evaluate ServiceMaster transition and performance during 2013-2014.

Based on ServiceMaster performance, KCSD staffing turnover, and future budget development; consider the expansion of ServiceMaster services to include Lead and Day custodial positions in the future.

Begin dialog with neighboring school distrcts about possible regional operations

and maintenance management arrangement to leverage the skills and talent of the KCSD staff and reduce costs through shared services.

Summary of Recommendations

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Bob Baldwin

Vice President - CommercialThe ServiceMaster Company860 Ridge Lake Blvd. (A2-1696)Memphis TN 38120 Office: 1 (901) 597-1838Cell: 1 (703) 402-6958Twitter: @WeServeYouwww.servicemastercommercialsolutions.com

Joseph P. LubitskyDirector of Administrative ServicesChester County Intermediate Unit455 Boot RoadDowningtown, PA 19335Phone: 484-237-5070Fax: 484-237-5081joel@cciu.org

Questions and Next Steps?

Charles R. Gibson, Jr.PresidentServiceMaster Building Services623 Jeffers CircleExton, PA 19341Office: (610) 363-5766Cell: (610) 322-5262cgibson@smclean.com

THANK YOU!!