Technologies in Capital Planning Forecasting Facility Needs and Long-Term Planning David Kornegay Senior Applications En

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

2. Resources Available to You www.schooldude.com/resources www.myschooldude.com

3. Perception Gap –What Others See

4. Perception Gap –The Reality

5. Why Capital Planning?

6. 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

7. 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

8. Facilities need a radar!

9. Why Planning Matters

10. What’s Threatening Your Buildings? • Lack of Strategic Planning • Chronic Underfunding • Limits on Resources • Status quo

11. 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.

12. 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”.

13. 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.”

14. 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.”

15. Four Step Program to Get More Money, Capital, Staff, etc. • Present your request for staff and money

16. 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

17. 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

18. “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

19. 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)

20. The ListInexpensive but questionable credibility

21. The List

22. Facility Condition AssessmentHighly credible, but too expensive for some

23. Issue, Need or Deficiency

24. Estimate, Correction or Resolution

25. Life Cycle ModelingProven methodology, highly credible and very affordable

26. Typical Systems in Modeling

27. 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

28. Sample Renewal Plan

29. 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 ?

30. 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

31. Other FCI Interpretations

32. Alaska

34. 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

35. 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

36. 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

37. Translating Life Cycle Modeling to Non-Facility Folks www.brickbits.com Minimal info is needed to see trends and estimates

38. Useful Information • Histograms • Backlog • Renewal Needs

39. Analysis • Breakout by • Systems and subsystems • Sites or Campuses • Buildings • Years Backlog Over $1 Million Source: Pacific Partners Consulting Group

40. 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

41. 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

42. 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

43. Questions?

45. Bring It All Together

46. Identify Other Needs Along With Renewals

47. 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

48. Questions?