Public School Facilities Authority

1. Public School Facilities Authority Getting a Handle on Maintenance Costs (and Staff Performance) Bob Bittner & Calvin Steckler NMSBA Annual Convention December 8, 2007

2. Introductory Questions • Is your teaching staff well satisfied with their facilities environment? • How does your district measure occupant satisfaction and facility reliability? • Do you know how much money your district is spending on maintenance each year? • Do you know how much money your district is spending on utilities each year? • Is your district looking for opportunities to save funds?

3. Discussion Points • Importance of “Good” facility maintenance • What NM districts are spending on maintenance • Getting an handle on your district’s maintenance expenditures • Importance of Energy Management? • Getting control of your district’s utility use and cost

4. Importance of “Good” Maintenance • Reliable facilities • Fosters student and staff safety & health • Reduced breakdowns & teaching disruptions • Student Success • Improved learning (higher test scores) • Reduced absenteeism & disciplinary actions • Effective use of resources • Teachers more effective • Proactive (preventive) vs. Reactive maintenance • Prolonged equipment life (replacement cost) • Reduced utility use

5. Importance of Facilities Past studies have concluded that … • Maxwell: Physical conditions have a direct influence on teacher morale and student performance • Milwaukee: Strong relationship between facility conditions and student performance • Lighthall: Facility improvements resulted in higher test scores and improved student and teacher attendance

6. Key Facility Attributes to Learning • External physical condition • Overall appearance • Internal physical condition • Appearance, HVAC, lighting • Security & safety • Fire safety, door hardware, surveillance • Ambient environmental health • IAQ, ventilation, cleanliness • Physical classroom • Lighting, acoustics, temperature control • Psychological • Color scheme, wall & floor conditions, restrooms

7. Budgeting for Facilities • Over $200 million is being spent annually on facility maintenance at NM public schools! • Operational Budgets are tight • Salaries • Utilities • Little is left for facility maintenance! • Capital Funding is limited • State (PSCOC awards, legislative approp’s, SB-9) • District (GO bonds, HB-33, SB-9) • Good maintenance saves on both operational and capital funding needs!

8. Statewide Maintenance Expenditures

9. Maintenance Cost ($/Sq Ft)

10. Maintenance Cost ($/MEM)

11. Maintenance Cost Review • Statewide (FY2005/06) • Average $ 4.60 per sq ft • Average $ 1,363 per student (MEM) • National (per 2006 AS&U Survey) • Average $ 4.09 per sq ft • Average $ 717 per student (MEM) • What is the right amount?

12. Opportunities for Utility Savings • Statewide, over $60 million spent annually on utilities at public schools! • Very limited operational funds • Utility rates continue to rise • Many school districts have inefficient building systems • Inefficiently designed, and/or • Inefficiently operated • Lack of awareness by students and staff on effective use of utilities.

13. Statewide Utility Cost

14. Statewide Utility Cost ($/Sq Ft)

15. Statewide Utility Cost ($/MEM)

16. District Comparison of Utility Cost ($/sq ft)

17. Utility Cost Review • Statewide (FY2005/06) • Average $ 1.19 per sq ft • Average $ 360 per student (MEM) • National (per 2006 AS&U Survey) • Average $ 1.14 per sq ft • Average $ 201 per student (MEM) • What is reasonable?

18. Our Message … All district leaders should … • Be fully aware of their maintenance and utility expenditures, analyze spending, and seek cost savings! • Implement a comprehensive preventive maintenance program • Initiate an energy management program

19. #1Data Analysis • Know how funds are being spent • Receive recurring reports and analyze financial data • Compare expenditures by school • Maintenance cost per square foot & student (MEM) • Utility consumption & cost per square foot & MEM • Compare against “similar” state and national data • Conduct surveys and site visits & communicate • Seek opportunities to provide more reliable facilities, operational efficiency, continuous improvement, and cost savings

20. Overall M&O Analysis

21. #2Preventive Maintenance Recurring inspection & effective maintenance demonstrates the district commitment to provide for the key facility attributes that are most important to staff satisfaction and the learning process!

22. Preventive Maintenance (PM) • Effective PM provides for improved system reliability and extends the life of facility systems. • Minimizes breakdowns and classroom disruption. • Reduces equipment replacement cost • Reduces repair time (opportunity cost) • Effective PM improves safety and security • Effective PM reduces energy use

23. Use FIMS The state’s Facility Information Management System (FIMS) is an effective tool to assist with your district’s preventive maintenance program. It provides for: • Automatic generation of PM tasks at a prescribed frequency • Record of all facility equipment and systems • Record of all completed maintenance • Recurring reports for cost analysis • Better decision making • Time scheduling • Equipment replacement

24. #3Utility Use Management An effective district Energy Management program will ensure that an enhanced learning environment is provided without wasting valuable resources.

25. Energy Management Program Behavioral Modification & Reinforcement • Clear policies on appropriate utility use • Staff training • Provide incentives Facility Construction / Renovation • Establish and enforce building specifications that fully address energy efficiency – promote “Sustainability” • Select systems through Life Cycle Cost Analysis • Install Energy Management Systems / DDC Building Management • Reliable preventive maintenance and custodial practices • Monitor building system operations • Track utility use against established targets • Identify opportunities for reduced energy use.

26. Where to Start • Institutionalize district policy • Make the Commitment • Include an energy plan that provides for efficient building operations as the primary component • The objective is to eliminate waste while providing a comfortable and safe learning environment

27. Building Standards • Require energy efficient building systems in all construction and renovation specifications • Institute design specifications that require effective system controls • Initial cost should not be the criteria (LCCA) • Assess facility systems and operations • Building system sequence of operations • Must know how systems operate

28. Track Energy Use • Collect data on past and current use • Provides foundation for a successful energy management plan • FIMS Utility Direct is a good tool • Identify opportunities (ECM) for energy use reductions and cost savings • Set realistic goals • Track the progress of energy saving strategies (action plans - ECM)

29. Staff Development • Educate building occupants on energy efficient activities (Behaviors) • Increase energy savings and equipment life by training maintenance staff on proper equipment operations (Sequence of operation) • Create incentives and reward success

30. Utility Data • The best way to assess use is to track the energy profile over time (Real Time is best) • Establish baseline data, then compare the performance results against similar buildings. • Analyze the energy use & cost • Use ratios such as kwh/sq ft & $/sq ft • FIMS Utility Direct can be used for this

31. Analyzing Available District Data You must collect and analyzeinformation in order to make informed decisions for operational improvements. Note: Operational funds saved in facilities and utilities can be used for other needs: teacher salaries, textbooks, etc.

32. Conclusion PSFA is available to assist all New Mexico districts in improving their maintenance program and instituting an Energy Management program. Contact us when you are ready . . . Albuquerque Office – 505-843-6272 Calvin Stecklercsteckler@nmpsfa.org Bob Bittnerbbittner@nmpsfa.org You can derive operational cost savings, and improved staff performance!