Aging Services of California May 4, 2010

1. Aging Services of California May 4, 2010

2. Contacts Jeff Tinkey Senior Director Sodexo Senior Services 86 Hopmeadow Street Simsbury, CT 06089-9693 Office: 860-325-1232 Cell: (215) 990-7181 email: jeff.tinkey@sodexo.com

4. $25,000,000

6. $50,000,000

8. $75,000,000

10. $100,000,000

11. PRICELESS

12. Does Your Current Building Services Program Help You ... • Create and Drive Revenue Opportunities • Manage and Mitigate Risk • Protect and Extend the Life of Your Assets • Maximize the Return on Every Dollar Spent

13. Driving Revenue • Apartment Turnover • Provide Add-On Services • Independent Residents on Campus • Residents on Wait List • At Large Community • Market Services to Community at Large

14. Manage and Mitigate Risk • Equipment Failure • Preventive Maintenance • Minimal Deferred Maintenance • Injury from Incidents • Infrared Studies • Knowledge Base • Loss of long term employee • Computerized Maintenance Management System

15. Manage and Mitigate Risk Effectively manage and track work orders to measure responsiveness, productivity and efficiency Identify and quantify systematic repairs which may cost more than replacement Track customer feedback and increase resident satisfaction Below is a graph indicating increased productivity after a CMMS was put into place. The work order completion rate increased, and this was done with 3 less FTEs (12pp vs. 9pp). The resident satisfaction rate increased 9% over their previous survey. Computer Maintenance Management System

16. Manage and Mitigate Risk Assess Aging Infrastructure INFRARED Studies Identify area where you are either operating inefficiently, losing energy, have an increased fire risk or are out of compliance and risk fines Typical cost is $1000 to $1500 a day, and the average community takes 2-3 days Have a maintenance tech walk with the inspector so that he can take care of the quick fixes and therefore save time spent on the overall inspection

17. Manage and Mitigate Risk

18. Manage and Mitigate Risk

19. Manage and Mitigate Risk

20. Manage and Mitigate Risk

21. Protect and Extend the Value of Your Assets • Operating Systems that extend the life of capital investments • Procurement • Contracts • Infrared Studies • Electrical Panels • Building Envelopes • Infrastructure Study • Long range plan used in conjunction with your facility’s Asset Management Plan to define the path your organization will take over the next Ten years.

22. Aerial Infrared Protect and Extend the Value of your Assets Aerial Infrared inspection for early detection of insulation saturation and leaks.

23. Protect and Extend the Value of Your Assets ARMY TM 5-617 NAVY NAVFAC MO-113 AIR FORCE AFM 91-31 MARINE CORPS MCO P11014.9 FACILITIES ENGINEERING MAINTENANCE AND REPAIR OF ROOFS DEPARTMENTS OF THE ARMY, THE NAVY, THE AIR FORCE, AND THE MARINE CORPS CHAPTER 3 CAUSES OF ROOF FAILURES 3.1.1 Lack of Maintenance The failure to find and correct minor defects and deterioration in its earliest stages is probably the greatest cause of premature roof failures. This is particularly true of built-up roofing applied on relatively low sloped roofs.

24. Protect and Extend the Value of Your Assets US Army Corps of Engineers “Moisture is a roof’s biggest enemy.”

25. Protect and Extend the Value of Your Assets %Damage 2.235% 8.013% 17.760% 37.811% Repair Estimate XYZ Roofing $4,197 $ 15,050 $ 33,355 $ 280,000 Year 1995 1997 2001 Current

26. Protect and Extend the Value of Your Assets Identify structural moisture that causes mold growth, insulation issues & wasted energy Control Image Control Image Control Image Thermal Image Infrared Image Infrared Image

27. Protect and Extend the Value of Your Assets Assess Aging Infrastructure Infrastructure Studies Benefits Identify and validate usable life of physical plant and structures so that you can effectively develop strategic plan and capital budget The study assumes that all manufacturer specified PMs are in place, so any deviations from the standard range of usable life will uncover potential issues (i.e. a boiler that should last for 20 years has only been in place for 6 years and the study is recommending it be replaced in 2 years) A study could help you identify skill set needs and/or uncover both labor inefficiencies and equipment that is operating poorly

28. Protect and Extend the Value of Your Assets 1.0 PURPOSE, SCOPE, AND LIMITATIONS __ 2.0 SUMMARY __ 3.0 SITE IMPROVEMENTS __ 4.0 EXTERIOR __ 5.0 INTERIOR __ 6.0 STRUCTURE __ 7.0 HVAC SYSTEMS __ 8.0 ELECTRICAL SYSTEMS __ 9.0 PLUMBING SYSTEMS __ 10.0 ROOF __ 11.0 FIRE SUPPRESSION & SPRINKLERS __ 12.0 ELEVATORS & VERTICAL TRANSPORTATION __ 13.0 ADA __ 14.0 SPECIAL SYSTEMS AND EQUIPEMNT __ APPENDIX A - PHOTOGRAPHS APPENDIX B - RESERVE SCHEDULE APPENDIX C – BUILDING LAYOUT APPENDIX D – KITCHEN EQUIPMENT LIST APPENDIX E - QUALIFICATIONS OF LEAD ENGINEER

29. Maximize the Return on Every Dollar Spent • Labor • Skills Assessment • Proper Talent Mix • Productivity Measured • Procurement • Proper Inventory Levels • Minimize Trips to Local Hardware • Participate in Purchasing Partnerships • Energy Opportunities • Contracts • Utilize Business Partnerships

30. Maximize the Return on Every Dollar Spent Staff Development Invest in the development of technical, service and leadership skills which have a positive impact on current customers, as well as improves employee morale and retention. Enhances employee engagement, which generally leads to more satisfied employees. Results include increased productivity, less accidents and improved quality of care. This also creates a culture where all levels of the organization are committed to finding creative solutions which improve outcomes. Culture training – make sure all individuals in your organization, including applicants, understand your mission and culture. More importantly, leadership must live it every day in addition to articulating it.

31. Maximizing the Return on Every Dollar Spent • Lighting Retrofits and Relamping Program • Offer Energy Savings – the Best Value and Faster Paybacks (in most cases) • Provide a Better Quality of Light – Quieter and Longer Lasting • Reduce Maintenance and Operational Costs • Help the Environment with Lower Green House Emissions

32. Maximizing the Return on Every Dollar Spent • Maintaining a Balanced program • Routine Maintenance • Work Activities Planned within Annual Budgets to Maximize Performance of Assets • Predictive Maintenance • Routine Maintenance, Testing or Inspection Performed to Anticipate Failure • Preventive Maintenance • A Planned, Controlled Program of Periodic Inspections, Adjustments, Cleanings and Minor Repairs intended to Maximize the Performance of Your Assets • Deferred Maintenance • Dollar Amount of Existing Maintenance Repairs and Required Replacements not Accomplished when they should have been. In this Situation, Facilities and Equipment are in a Constance State of Degradation • Capital Renewal • The Process of Planning and Budgeting for known Future Cyclical Repair and Replacement Requirements that Extend the Life and Retain Usable Condition of Facilities

33. Maximizing the Return on Every Dollar Spent • Facility Condition Index (FCI) • A Benchmark Used to Indicate the Relative Physical Condition of a Facility • FCI = Deferred Maintenance + Capital Renewal / Current Replacement Value “Fair to Good Facility” - Generally Expressed as Having an FCI Less than 10% - 15%

34. Available Resources • International Facility Management Association www.ifma.org • Strategic Facility Planning; A White Paper • A Framework for Facilities Lifecycle Cost Management

35. THANK YOU !