Transcript Slide 1

Decide with Data, not Instinct
Presented by
Mike McCormick, CPE
Principal
McCormick Facilities Management
EPMA 41th Conference June 22, 2009
“You can’t understand what
you don’t measure”
How do you know how to manage
your school facilities?
• What do you know about your operation
of plant?
• How do you keep track of what is
happening in your facilities?
• Do you utilize a systematic, holistic
approach to decision making?
Does your school department run
like this?
• We do it that way because we always have!
• If it ain’t broke why fix it?
• We don’t have enough money to take care of our
facilities!
• The Board/Voters don’t understand our needs for
facilities!
• Its an old building so why do we need to put money in
to it?
• If we let it go, the State (?) will give us a new one.
Does your district choose to put
money into:
• Salaries
• Programs
• Technology
• Extra/Co-curricular
…and let the facilities take
care of themselves!
Do you know the value of your
facility portfolio?
• # of students x 125 SF/student x $200/SF
– $25 million per 1000 student
• Are the members of your facility staff
qualified to manage a portfolio of that size?
Some relevant statistics…
how do you stack up?
• Total M & O costs/student = $823.84
• Total utilities costs/student = $297.67
– should be between $1.50-2.00/SF or about 2% of TDE
• Total District Expenditures (TDE) /student =
$8,967
• Over the last 20 years M & O has steadily
declined from 12.75% of TDE to a low in
2004 of 7.43%
• M & O as a % of TDE 2007 = 9.19%
How many workers do you need?
• Each school district custodian covers
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25,173 square feet
Each maintenance worker maintains
100,720 square feet
Each grounds keeper covers
40 acres
Mean
< 1000
1000-3,499 > 3,500
Custodial
39
4
15
93
Maintenance
15
2
3
36
Score card of Maine Schools
(clients we are working with)
Our clients have more than $800,000,000
of deficiencies
And they have more than $970,000,000
of capital renewal needs over the next 20
years
Score card of Maine Schools
(all schools that have been assessed)
Statewide there is more than
$1,000,000,000 of deficiencies
And there is more than $2,000,000,000 of
capital renewal needs over the next 20
years
• Our schools are deteriorating at a rate greater than
$60,000,000 per year.
(2% of $3B of asset value)
• Currently, statewide spending for facilities, state
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and local share combined is $150,000,000 per year
At the current rate of spending, it will take 23 years
to get the current deficiencies and capital renewal
to $0
It doesn’t end after 23 years, but it becomes a
more manageable number
We should be able to “keep up” after that
But where will the money come from?????
Why are we in this position?
• Majority of school buildings were built as a result
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of the baby boom (1950 to 1975)
Most were built quickly and inexpensively, 50
year life expectancy maximum
1950/1975 plus 50 equals NOW
Previous admin., boards, voters did not have to
deal life cycle and deferred maintenance issues
as they were just beginning to occur
Declining student enrollments
Increasing costs
Declining availability of funds from fund source
How can you take control?
You need a comprehensive
facilities management program
You need Data!
Facility
Condition
Assessment
Strategic
Long Term
Master
Planning
Energy
Audits
Facilities
Management
Construction
Management
Building
Automation
Security
and
Crisis
Planning
DATA
KNOWLEDGE
PLAN
IMPLEMENT
REPEAT
DATA
• Do you have comprehensive…..
– Facilities data
– Maintenance data
– Work order data
– Utility data
– Facility usage data
– Financial data
We believe that a facility condition assessment is
the core or center of all good facility
management programs
Without it, all other data is less useful
You can spend money, clean, maintain, monitor
energy, and even talk to the buildings, but with
out a starting point and progress monitoring,
how can you have a score card of the impact of
your decision making on the long term care of
the most expensive asset you have, your
facilities!
Think of it as a check book…
You need a starting balance…
Keep track of credits and debits…
Always have a current balance…
Have an audit on some regularity
What is a Facility Condition
Assessment? COST MODELS
An FCA is an inventory of a facilities systems
and their condition
It identifies each building system
gives it a dollar value
identifies its born on date
assigns a life expectancy
determines its current condition
estimates when it will no longer be reliable
advises what the renewal cost will be
What is a Facility Condition
Assessment? DEFICIENCIES
An FCA also identifies actual issues that the
facility may have
These may be referred to as deficiencies
they are identified
a description of why it is an issue
it is categorized
it is prioritized
it has a cost estimate to correct
Facility Condition Index FCI
The results of the FCA can be used to create an
industry standard analysis of the relative
condition to the replacement value of the asset
The formula is:
Cost to Correct Deficiencies
Current Facility Replacement Value
An example:
A building with a current replacement value
of $25 million that has total needs of $5
million would have an FCI of
20 %
This calculation yields the total cost to
decision makers
In our previous example, the FCI was 20%
But if the total to cost to provide a desired
level of educational adequate space, and
that was for example $20 million, then the
FCI for this building would be
80%
Simply stated, it means that the cost to
address the identified issues equals 80% of
the cost to replace the entire building
At that ratio, a district would likely replace the
facility rather than renovate it
A guide for using the ratio might look like this:
0-30% Clearly renovate
31-60% Maybe renovate, lots of things to consider
62-100% Very likely to replace
You should include all costs
We like to include all costs required to provide
a proper learning environment:
• Deficiencies
• Code related issues
• Capital renewal, deferred and 20 years ahead
• Adequacy upgrades
• Additional space needs
Maintaining your database
Any database must be maintained to
continue to be useful. It is meant to be
dynamic, not static
As requirements are completed, they must
be removed from the database
As new issues arise, they should be entered
Maintaining your database
As deficiencies are corrected, you should:
• Archive them for historical use
• Update the building description
• Update the system model (cost model)
FCA may reveal issues that are beyond local
ability to deal with them
May have to hire outside help to fully
comprehend depth of the issues and
develop a plan to address them
After you gain a thorough knowledge of the
problem, must develop a plan!
Planning
We suggest that you develop at least
3 plans
1. A 20 year strategic vision to deliver
educational programming, and how your
“campuses” fit that vision
2. Must have a long term plan for facilities
-a “facilities master plan”
-10 year forward look (minimum, 20 is better)
3. A capital renewal plan
- minimum of five year forward look
- adequate funding sources
- capital reserve set asides
Strategic Master Planning
Do you have a campus plan that works?
Determine what your desired final outcome
might look like
• Who would/will use a plan?
• Develop guiding principals
• Develop a planning agenda
• Develop a strategic long term vision
Must have these before Master Planning
can begin
Facilities Master Planning
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Enrollments- historical, trends, projections
Funding projections
Program requirements
Space adequacy
– usage, occupancy
– size requirements
• Condition of facilities – FCA
• Economy of the area, look ahead
• Regionalization
What is included in a Master Plan
• Space analysis
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– Must be current
– Must be reviewed annually
– Include schedules
Existing/emerging plans
– Teaching and learning trends
Peer Benchmarking
– How can you do more with less
• Changes in enrollment/faculty
• Physical condition, FCA
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– Zones of legacy
– Zones of opportunity
– Institutional identity
Program flexibility
To be successful, a master plan must...
• be realistic
• be visionary, creative
• involve all parties
– Taxpayers
– Staff
– Students
• A master plan is never final
– Get to final draft, then continually update
– Review every 6 months
– Redo every 12 months
• Keep it alive and active
– Remind all players that there is a master plan,
and follow it!
“Its not a product…
…it’s a process”
Long term facilities planning
Must have a long term facilities master plan
– Minimum of a 10 year forward look
– Understand facilities needs, dollars required
– Know district finances, ability to raise and
expend funds, total budget and facilities
Incorporate district vision and growth
– Programming
Enrollment trends
– Increasing or decreasing
Staffing
– Student teacher ratios
– Space needs
– Cost to provide
Energy
– Are you efficient now
– Cost will continue to increase
Operations and maintenance
– Costs to catch up
– Costs to keep up
– Custodial coverage and cost
– Project costs steadily
increasing
All that information will reveal the
total space requirements and the
ever increasing cost to own,
maintain, and keep your facilities
Implement the plan
• Keep the stakeholders informed
– Let them know how it is working
– Keep a score card, results are your best
advocate
• Continually redevelop funding strategies
• Stick to the plan
• Update the plan regularly
Financial Data
• Regular review of expenditures to compare and
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to national and regional benchmarks
Observe operations and maintenance practices
to determine if best practices are being used;
maintenance, custodial, energy, capital renewal
Review chart of accounts and record keeping to
see if daily operations are “best fit” for proposed
annual funding
Continual professional development to learn of
new facility management practices
Energy and Utility Audits
• Every campus or system should have an energy
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information technology infrastructure
Every energy input at each building
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should be metered
measured
collected
analyzed
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electricity
fuel oil
gas
wood
water
sewer
facility usage
• Should have a detailed time of use database of
• Allows tracking and benchmarking
• Can verify unit costs, guaranteed savings
verification for ESCOs
• “The most efficient dollar saved is the one
never spent”
• Turn things off!
• Do you have an energy policy at the
Board/school level?
• Create and enforce an energy program
• Do you allow the “tri-fecta” of personal
appliances in the classrooms?
– Coffee maker, microwave, mini fridge
– $25 per year of taxpayer money
• Who turns them off during vacations?
• Re-commission HVAC systems every 10
years
What are energy conservation measures?
• Lighting and Lighting Controls
• Energy Management System
• Motor Replacement and Variable Frequency Drive
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Installation
Building Envelope Improvements
Plug load Controllers
Boiler Replacement / Heating Conversion
Renewable power
Co-generation
Technology upgrades
Water and sewer conservation
Energy Purchases
Key objectives of an energy audit
• Provide energy modeling for the building
• Define and calculate energy savings for
Energy Conservation Measures (ECMs)
• Determine Operational Savings and obtain
agreement from customer
• Determine follow-up survey and data
gathering requirements
• Develop economic (cost vs. savings) analysis
for various project scenarios
• Develop documentation for final proposal
• Determine acceptable alternate Energy
Solutions with customer input
• List sustainability measures
• Reduction of Carbon footprint
• Obtain pricing for ECMS
• Determine an acceptable Performance
Contracting per RFP
What do you get upon
Project Completion
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New technology
Energy Savings (fuel-water-electrical)
Improved learning and work environment
Guarantee
New Equipment
Life Cycle savings
Carbon Footprint Reduction
Greener
Sustainability
What is
Performance Contracting?
Performance contracting installs energy
efficient facility improvements, with no up
front costs, paid for out of guaranteed
energy savings from your existing operating
budget.
• Technical
• Financial
• Contractual
Building Automation
• Can you talk to your buildings?
• Do your buildings talk back to you?
• Do you control your facilities or do they control
you?
• What do you have for data?
– How is it collected, updated, shared?
Should have “direct digital controls”
(DDC)
– Door access control
• facility usage
• Security
• Zoned lighting controls
– coordinated with facility usage
• Zoned heating controls
– coordinated with facility usage
• Individual air handler controls
– coordinated with facility usage
• Boiler controls
– outside air temperature
– timed to facility usage and ramp up/down times
• Computerized monitoring of DDC systems
– central access control
– reports for analysis
• ONLY NON PROPRIETARY SYSTEMS
– firmware and software
– LON and BAC NET capable
Technology and Software
• What do you know about your facilities
financial condition?
• What do you know about your facilities
energy condition?
• Use technology to help stay ahead of the
curve when managing your facilities
The technology is here today to completely
computerize your building systems
Use the technology to stay on top of
operations
Use WEB (IP) based systems
Control costs with information
Decide with Data, not Instinct
Questions?
Thank you for your time today
Thank you for choosing to work in
Public Education
Credits
The following organizations provided data and materials for this
presentation:
• McCormick Facilities Management Consultants
• Trane
• Capital Planning Solutions
• School Dude
• American School and University
• National Center for Education Statistics
• U.S Department of Education