Funding Strategies for Future Proposition S & N Maintenance and Operations Costs

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SAN DIEGO COMMUNITY COLLEGE DISTRICT

FundingStrategiesforFuturePropositionsSandNMaintenanceandOperationsCosts

November 7, 2011

PresentedtotheSDCCDCitizens’OversightCommittee

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Current Annual BudgetSalary and Benefits = $12,579,606

Supplies = $1,228,167Contracts = $787,498Capital = $304,738

Total = $14,900,009

SanDiegoCommunityCollegeDistrictCurrentStatus

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Current Square FootageBuildings = 2,276,429 Gross Square Feet (GSF)Parking = 840,606 Gross Square Feet (GSF)

Current Acres of Landscape = 116

Current Utilities Consumption Electric = $4,298,311

Gas = $391,561Water = $868,531

Total = $5,558,403

SanDiegoCommunityCollegeDistrictCurrentStatus

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Projected Square FootageAdditional Building GSF = 1,138,028Total Building GSF = 3,409,457

Additional Parking GSF = 251,264Total Parking GSF = 1,091,870

Grand Total GSF = 4,465,327

SanDiegoCommunityCollegeDistrictAbouttheDistrict

Projected Acres of LandscapeAdditional Acres of Landscape = 29Total Acres of Landscape = 145

Projected Utilities ConsumptionAdditional Utility Costs = $2,492,662Total Annual Costs = $8,051,065

SanDiegoCommunityCollegeDistrictAbouttheDistrict

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2007 Additional Budget Impact Forecast:

Salaries & Benefits: $6,836,256Supplies: $1,139,853Repairs: $725,835Utilities: $4,321,369

Total = $13,023,313

SanDiegoCommunityCollegeDistrictForecastedNeedsin2007

SanDiegoCommunityCollegeDistrictBuildEfficientBuildings

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Space EfficiencyDesign and construct  facilities with less space tomaintain and clean

Energy EfficiencyWest City 40+% more efficient than required by code

Choice of MaterialsUse long‐lasting material that wears and cleans easily and reduces ongoing maintenance costs.

Current reserve amounts set aside by the Board of Trustees

$3,596,934

SanDiegoCommunityCollegeDistrictBoardActionstoDate

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SanDiegoCommunityCollegeDistrictDoingMorewithWhatWeHave

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Lean Management Benchmarking and Restructuring

Goals for custodial productivity Benchmark: 13,000 cleanable square feet per custodian Goal: 25,000 cleanable square feet per custodian Timetable: By FY 2013Where are we now?  24,744 square feet per custodian

Goals for maintenance cost per square foot Benchmark: $3.93 Goal: $2.55 Timetable: By FY 2013Where are we now?  $3.33/SF

SanDiegoCommunityCollegeDistrictDoingMorewithWhatWeHave

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FY FY 09/10

FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16

Custodial

Custodial Forecast H/C 104.00 110.29 117.46 128.74 150.79 168.09 171.96 186.51

Cust Forecast Salary $5,810,071 $6,161,469 $6,562,029 $7,192,198 $8,424,045 $9,390,528 $9,606,729 $10,419,581

Cleanable SF 1,533,758 1,631,068 1,769,040 2,004,787 2,438,719 2,599,566 2,799,601 2,932,195

Set Ups / Shipping Receiving 3.29 3.29 3.29 3.29 3.29 3.29 3.29 3.29

SF / HC 15000 17000 20000 20000 22500 25000 25000 25000

Custodial 102.25 102.00 102.00 102.00 108.39 103.98 111.98 117.29

Custodial Adj HC 105.54 105.29 105.29 105.29 111.67 107.27 115.27 120.57

Custodial Adj Budget $5,895,857 $5,881,859 $5,881,859 $5,881,859 $6,238,703 $5,992,621 $6,439,627 $6,735,927

Delta ($85,785) $279,610 $680,169 $1,310,339 $2,185,342 $3,397,907 $3,167,102 $3,683,653 $ 14,618,336

Hold HC Flat until projection exceeds current HC

Maintenance

Maint Forecast H/C 45.00 47.82 51.00 55.74 64.55 71.46 72.95 78.54

Maint Forecast Salary $3,440,546 $3,656,153 $3,899,285 $4,261,689 $4,935,271 $5,463,586 $5,577,507 $6,004,899

Building SF 1,870,437 1,989,107 2,157,366 2,444,862 2,974,047 3,170,202 3,414,147 3,575,847

Maintenance Adj H/C 45.00 45.00 45.00 45.00 45.00 46.45 47.42 51.05

Maint Adj Salary $3,440,546 $3,440,546 $3,440,546 $3,440,546 $3,440,546 $3,551,331 $3,625,379 $3,903,184

Delta $0 $215,608 $458,739 $821,144 $1,494,726 $1,912,255 $1,952,127 $2,101,715 $ 8,956,313

Hold HC Flat until projection exceeds current HC

Opportunity $ 23,574,650

Custodial and O&M Revised Projected Growth 

SanDiegoCommunityCollegeDistrictGoingSolar!

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2.4 MW of solar power through a Power Purchase Agreement

18% kWh cost savings compared to SDG&E rates

2.5 MW future PV potential

SanDiegoCommunityCollegeDistrictRenewableEnergyandCarbonOffsetCredits

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By generating solar energy, the District is able to earn Renewable Energy Credits – one credit for every megawatt‐hour (MWh) of renewable energy delivered to the local power grid. 

Current value is estimated at approximately $60,000 annually.

SanDiegoCommunityCollegeDistrictRenewableEnergyandCarbonOffsetCredits

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By reducing generation of carbon dioxide (CO2), the District is able toearn Carbon Offset Credits – one credit for every metric ton of CO2 

reduced.

Credits can be purchased by companies unable to meet caps on the total amount of CO2 they are allowed to emit under state regulations.Monetary value to be determined via cap and trade marketplace.

SanDiegoCommunityCollegeDistrictAdditionalUtilityStrategies

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Smart MeteringA smart meter is a digital device that measureselectricity usage multiple times per day, providingtimely and meaningful information about when and where energy consumption is at its highest. 

This can help users better monitor energy usage and implement energy‐saving techniques.

smartplanet.com

SanDiegoCommunityCollegeDistrictAdditionalUtilityStrategies

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Thermal Energy Storage (TES)The use of thermal energy storage can reduce the size and initial cost of cooling systems, lower energy costs, and reduce maintenance costs. When a building requires cooling during the day, the chilled water line passes through the TES tank to chill the water and provide cooling, decreasing the chiller’s load during the day, when utility costs are typically higher.

SanDiegoCommunityCollegeDistrictAdditionalUtilityStrategies

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Solar Thermal Pool HeatingSolar thermal pool heating is a financially feasible renewable source for warm pool water.  With a solar energy system, the pool’s water is pumped through a filter and then through a solar energy collector.  The sun heats the water in the collector(s) before it returns to the pool.

SanDiegoCommunityCollegeDistrictGroundLeaseRevenuefromExcessProperty

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Skills Center Downtown

Current appraised value = $15,799,000Projected revenue stream = $1,342,920/year  

SanDiegoCommunityCollegeDistrictGroundLeaseRevenuefromExcessProperty

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Centre City Campus

Current appraised value = $12,441,000Projected revenue stream = $1,057,490/year  

SanDiegoCommunityCollegeDistrictGroundLeaseRevenuefromExcessProperty

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West City Campus

Current appraised value = $3,230,000Projected revenue stream = $290,700/year 

SanDiegoCommunityCollegeDistrictGroundLeaseRevenuefromExcessProperty

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North City Campus lease outSquare Footage and Market Lease Rate8401 Aero Drive ‐ 60,480 sq. ft. ‐ $1.15/sq. ft.$834,624 / year

Family Health Center Included in City College’s futureGeneral Purpose Classroom Building.6,740 sq. ft. @ $2.25/sq. ft.$181,980 / year 

SanDiegoCommunityCollegeDistrictRedevelopmentFunds

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Restricted to Facilities capital projectsor ongoing Facilities costs

Current annual revenue streamof $400,939

SanDiegoCommunityCollegeDistrictSummaryoftheStrategy

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Projected Additional Annual Funding Needed: $14,415,154(includes $1,391,841 for IT maintenance)• Lean Enterprise Projected Savings: $5,785,368

• Current Reserve Set Aside by Board: $3,596,394

• From Ground Lease Revenue: $2,691,110

• From Lease Revenue: $1,016,604

• From Redevelopment Funds: $400,939

• Utilities Strategies: ?

Balance of Funding Required: $924,739

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David Umstot, PEVice Chancellor, Facilities ManagementSan Diego Community College District          

dumstot@sdccd.edu(619) 388‐6456

SAN DIEGO COMMUNITY COLLEGE DISTRICT

Questions?