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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. www.schooldude.com/resources www.myschooldude.com. Perception Gap – What Others See. Perception Gap – The Reality.

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


Resources available to you
Resources Available to You

www.schooldude.com/resources

www.myschooldude.com


Perception gap what others see
Perception Gap –What Others See


Perception gap the reality
Perception Gap –The Reality



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




What s threatening your buildings
What’s Threatening Your Buildings?

  • Lack of Strategic Planning

  • Chronic Underfunding

  • Limits on Resources

  • Status quo


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
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
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 limits1
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
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 etc1
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
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
“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

Modernization

Routine

Backlog

Renewal


What is your process
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 list inexpensive but questionable credibility
The ListInexpensive but questionable credibility



Facility condition assessment highly credible but too expensive for some
Facility Condition AssessmentHighly credible, but too expensive for some




Life cycle modeling proven methodology highly credible and very affordable
Life Cycle ModelingProven methodology, highly credible and very affordable



The concept of life cycle 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



Key terms
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
Facility Condition Indexing (FCI)

DM (Deferred Maintenance) + CR (Capital Renewal)

__________________________

CRV (Current Replacement Value)

$290,000 + $450,000

FCI % =

$6,500,000

12%

  • 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




Life cycle modeling
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
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 modeling1
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
Translating Life Cycle Modeling to Non-Facility Folks

www.brickbits.com

Minimal info is needed to see trends and estimates


Useful information
Useful Information

  • Histograms

  • Backlog

  • Renewal Needs


Analysis
Analysis

  • 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
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 reasons1
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
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





Planningdirect
PlanningDirect

  • 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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