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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. - PowerPoint PPT Presentation
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Pennsylvania Association of School Business Officials 56th Annual Conference
Technologies in Capital Planning
Forecasting Facility Needs and Long-Term Planning
David KornegaySenior Applications Engineer
and SchoolDude “Mayor”
Pennsylvania Association of School Business Officials 56th Annual Conference
Resources Available to You
www.schooldude.com/resources www.myschooldude.com
Pennsylvania Association of School Business Officials 56th Annual Conference
Perception Gap –What Others See
Pennsylvania Association of School Business Officials 56th Annual Conference
Perception Gap –The Reality
Pennsylvania Association of School Business Officials 56th Annual Conference
Why Capital Planning?Quality School
Facilities
Strong Neighborhood
s
Economic Growth
Awareness
Thriving Community
Strong Tax Base
Pennsylvania Association of School Business Officials 56th Annual Conference
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
Pennsylvania Association of School Business Officials 56th Annual Conference
Facilities need a radar!
Why Planning Matters
Pennsylvania Association of School Business Officials 56th Annual Conference
What’s Threatening Your Buildings?• Lack of Strategic
Planning• Chronic
Underfunding
• Limits on Resources
• Status quo
Rick says stats too high.Blue start at .05, orange end at .45I modified slightly. Orange is at .45 in 2009.
For every $1 of maintenance you defer,
it takes $3-4 to fix
Deferred Maintenance
Potential
Pennsylvania Association of School Business Officials 56th Annual Conference
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”.
Pennsylvania Association of School Business Officials 56th Annual Conference
What You Face Along with Budget Limits
“Everyone blames me when things break down and decay, even though my requests have been denied.”
“My _______ does not understand what it costs to keep these facilities going.”
“I need strong support to articulate the need.”
Pennsylvania Association of School Business Officials 56th Annual Conference
What You Face Along with Budget Limits
“The available solutions out there are out of my reach or are ineffective.”
“Politics, politics, politics.”
“My _______ does not believe my list.”
“I’ve been putting band aids on things.”
Pennsylvania Association of School Business Officials 56th Annual Conference
Four Step Program to Get More Money, Capital, Staff, etc.
1.
2.
3. 4. Present your request for staff and
money
Pennsylvania Association of School Business Officials 56th Annual Conference
Four Step Program to Get More Money, Capital, Staff, etc.
1. Improve your image2. Establish a respected
methodology3. Educate the decision makers and
decision influencers4. Present your request for staff and
money
Pennsylvania Association of School Business Officials 56th Annual Conference
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
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
Modern
izatio
n
Renew
al
Routine
Backlog
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)
Pennsylvania Association of School Business Officials 56th Annual Conference
The ListInexpensive but questionable credibility
Pennsylvania Association of School Business Officials 56th Annual Conference
The List
Pennsylvania Association of School Business Officials 56th Annual Conference
Facility Condition AssessmentHighly credible, but too expensive for some
Pennsylvania Association of School Business Officials 56th Annual Conference
Issue, Need or Deficiency
Pennsylvania Association of School Business Officials 56th Annual Conference
Estimate, Correction or Resolution
Pennsylvania Association of School Business Officials 56th Annual Conference
Life Cycle ModelingProven methodology, highly credible and very affordable
Pennsylvania Association of School Business Officials 56th Annual Conference
Typical Systems in Modeling
Pennsylvania Association of School Business Officials 56th Annual Conference
The Concept of Life Cycle Modeling:
1. Building Systems have known life expectancies;
2. The remaining life of each building system can be estimated;
3. Renewal costs can be estimated.
Source: Pacific Partners Consulting Group
Pennsylvania Association of School Business Officials 56th Annual Conference
Sample Renewal Plan
Pennsylvania Association of School Business Officials 56th Annual Conference
Key Terms:
CRV (Current Replacement 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)
DM (Deferred Maintenance) + CR (Capital Renewal)
__________________________
CRV (Current Replacement Value)
FCI % =
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
$290,000 + $450,000
$6,500,00012%
Other FCI Interpretations
Pennsylvania Association of School Business Officials 56th Annual Conference
Alaska
Pennsylvania Association of School Business Officials 56th Annual Conference
Pennsylvania Association of School Business Officials 56th Annual Conference
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
*
Pennsylvania Association of School Business Officials 56th Annual Conference
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
Pennsylvania Association of School Business Officials 56th Annual Conference
Objectives of Life Cycle Modeling
Provide a sustainable planning methodology:
– profiles of each building– easy to update– inexpensive to implement
and maintain
Save money:a) minimizing condition assessmentsb) identify buildings to “consume”c) consolidating capital projects Source: Pacific Partners
Translating Life Cycle Modeling to Non-Facility Folks
www.brickbits.com
Minimal info is needed to see trends and estimates
Pennsylvania Association of School Business Officials 56th Annual Conference
Useful Information
• Histograms
• Backlog
• Renewal Needs
Analysis
Backlog Over $1 Million Source: Pacific Partners Consulting Group
Breakout by
• Systems and subsystems
• Sites or Campuses
• Buildings
• Years
Pennsylvania Association of School Business Officials 56th Annual Conference
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
Pennsylvania Association of School Business Officials 56th Annual Conference
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
Pennsylvania Association of School Business Officials 56th Annual Conference
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
Pennsylvania Association of School Business Officials 56th Annual Conference
Questions?
Pennsylvania Association of School Business Officials 56th Annual Conference
Bring It All Together
Pennsylvania Association of School Business Officials 56th Annual Conference
Identify Other Needs Along With Renewals
Pennsylvania Association of School Business Officials 56th Annual Conference
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
Pennsylvania Association of School Business Officials 56th Annual Conference
Questions?