Technologies in Capital Planning
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Technologies in Capital Planning Forecasting Facility Needs and Long-Term Planning David Kornegay Senior Applications Engineer and SchoolDude “Mayor” PowerPoint PPT Presentation

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Technologies in Capital Planning Forecasting Facility Needs and Long-Term Planning David Kornegay Senior Applications Engineer and SchoolDude “Mayor”. Resources Available to You. Perception Gap – What Others See. Perception Gap – The Reality.

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Technologies in Capital Planning Forecasting Facility Needs and Long-Term Planning David Kornegay Senior Applications Engineer and SchoolDude “Mayor”

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Technologies in Capital PlanningForecasting Facility Needs and Long-Term PlanningDavid KornegaySenior Applications Engineerand SchoolDude “Mayor”

Resources Available to You

Perception Gap –What Others See

Perception Gap –The Reality

Why Capital Planning?

Before students stepped foot inyour doors this year, there was a $5,400 per student backlogof problems you needed to fix.

Source: “Repair for Success: An Analysis of the Need and Possibilities for a Federal Investment in PK-12 School Maintenance and Repair”

Prepared by the 21st Century School Fund

November 16, 2009

Survey Time!Are You Planning?

  • Yes – Once a Year

  • Yes – When we need a bond, grant or emergency funding

  • Yes – Throughout the Year

  • Sometime over a 5 year period

  • No

Facilities need a radar!

Why Planning Matters

What’s Threatening Your Buildings?

  • Lack of Strategic Planning

  • Chronic Underfunding

  • Limits on Resources

  • Status quo

  • For every $1 of maintenance you defer, it takes $3-4 to fix

Deferred Maintenance Potential

Rick says stats too high.

Blue start at .05, orange end at .45

I modified slightly. Orange is at .45 in 2009.

Current Realities

The American Society of Civil Engineers

in 1998 gave public school

infrastructure a grade of “F”.

By 2009, schools had raised their grade to a “D”.

What You Face Along with Budget Limits

“My _______ does not understand what it costs to keep these facilities going.”

“I need strong support to articulate the need.”

“Everyone blames me when things break down and decay, even though my requests have been denied.”

What You Face Along with Budget Limits

“My _______ does not believe my list.”

“I’ve been putting band aids on things.”

“The available solutions out there are out of my reach or are ineffective.”

“Politics, politics, politics.”

Four Step Program to Get More Money, Capital, Staff, etc.

  • Present your request for staff and money

Four Step Program to Get More Money, Capital, Staff, etc.

  • Improve your image

  • Establish a respected methodology

  • Educate the decision makers and decision influencers

  • Present your request for staff and money

Change the Budget Conversation

  • Deferred maintenance is a statement of fact, but good control means:

    • Annual backlog is visible, predictable

    • Good stewardship is easily illustrated

  • Budget discussions tooemotional; shift conversationsfrom “wants” to “risks/needs” as predictive data identifies potential threats

“Maintenance” Definitions

Routine Maintenance: periodic “tune-ups”

Capital Renewal: replacing major subsystems

Backlog of Renewal (DM): necessary renewal work that has been deferred

Modernization:responding to changes in standards and/or program





What is Your Process?

What most closely matched your facility capital budgeting process?

Source: Registration Survey for“Capital Planning and Forecasting for Educational Facility Funding Needs” (282 respondents)

The ListInexpensive but questionable credibility

The List

Facility Condition AssessmentHighly credible, but too expensive for some

Issue, Need or Deficiency

Estimate, Correction or Resolution

Life Cycle ModelingProven methodology, highly credible and very affordable

Typical Systems in Modeling

The Concept of Life Cycle Modeling:

  • Building Systems have known life expectancies;

  • The remaining life of each building system can be estimated;

  • Renewal costs can be estimated.

Source: Pacific Partners Consulting Group

Sample Renewal Plan

Key Terms:

CRV (CurrentReplacement Value) – how much would it cost to replace the same size building that has the same purpose?

FCI (Facility Condition Index) used to provide a statistical comparison of a group of facilities’ conditions.

= $xxx ?

Facility Condition Indexing (FCI)

DM (Deferred Maintenance) + CR (Capital Renewal)


CRV (Current Replacement Value)

$290,000 + $450,000

FCI % =



  • Building condition can be defined as:

  • (Good) 0 to 5 percent FCI

  • (Fair) 5 to 10 percent FCI

  • (Poor) 10 to 30 percent FCI

  • (Critical) greater than 30 percent FCI

Other FCI Interpretations


Life Cycle Modeling

  • Approach endorsed in a joint publicationby APPA, NACUBO & SCUP

  • Implemented by The Smithsonian, The Getty, NASA, US Navy

  • Implemented on >100 million sq. ft. of educational facilities including 200+ districts, private schools and college campuses**


  • * Stanford University and Pacific Partners

  • **Examples of colleges include state university systems for CA, MN, NY, OR, TX

Objectives of Life Cycle Modeling

Create multi-year strategic capital plans that incorporate renewal needs:

  • Estimate the magnitude of the backlog.

  • Predict when building systemsneed to be replacedor renovated, plusthe associated costs.

  • Source: Pacific Partners

Objectives of Life Cycle Modeling

Provide a sustainable planning methodology:

  • profiles of each building

  • easy to update

  • inexpensive to implement and maintain

    Save money:

  • minimizing condition assessments

  • identify buildings to “consume”

  • consolidating capital projects

  • Source: Pacific Partners

Translating Life Cycle Modeling to Non-Facility Folks

Minimal info is needed to see trends and estimates

Useful Information

  • Histograms

  • Backlog

  • Renewal Needs


  • Breakout by

  • Systems and subsystems

  • Sites or Campuses

  • Buildings

  • Years

Backlog Over $1 Million

Source: Pacific Partners Consulting Group

Sample Data:Categories for Capital Reasons

  • ADA/Accessibility

  • Additions

  • Aesthetics

  • Analysis

  • Asbestos Abatement

  • Building Adequacy

  • Codes/Standards Compliance

  • Design

  • Early Renewal

  • Early System Failure

  • Educational Adequacy

  • Energy Conservation

  • Enhancement

  • Environmental Improvements

  • Functional Improvements

  • Human Error

  • Loss Prevention

  • New Site Construction

  • Remodeling

  • Renovation

  • Repairs - Major

  • Repairs - Minor

  • Roof Replacements

  • Site Servicing

Sample Data:Categories for Capital Reasons

  • System Abandoned

  • System Beyond Useful Life

  • System Damaged/Worn

  • System Failing

  • System Inadequate

  • System Missing

  • Upgrades – Facility

  • Upgrades – Health and Life Safety

  • Upgrades – Mechanical Systems

  • Upgrades – Site

  • Upgrades – System

Overcoming the Challenges

  • Articulate the Needs

    • Short-term

    • Intermediate

    • Long-term

  • Avoid the Status Quo

  • Leverage Techniques and Technology to “market” your department’s needs


Bring It All Together

Identify Other Needs Along With Renewals


  • On-Demand

  • Profiles for each location

  • Detailed estimatesfor the next 5-15 years of the Backlog and renewal projections by location, year, system and more

  • Unlimited support and online training


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