Facilities Condition Assessment And Capital Asset Management

Facilities Condition Assessment Introduction Facilities Condition Assessment Data Collection Facilities Replacement Cost Facility Condition Needs Index (FCNI) Capital Asset Management (CAM) Planning Strategies Balancing Needs against Risk Balancing Financial Resources Rev. 10/11/07

Facilities Condition Assessment ’04, ISES Corporation conducted a condition assessment for Housing ’05, Integrated Design Solution completed a condition assessment for remaining facilities and support structures ’05, SmithGroup conducted a condition assessment of Meadow Brook Hall ’07, Western Telecommunication Consulting developed an IT Network Plan and Condition Assessment Rev. 10/11/07

Facilities Condition Assessment CAMPUS SYSTEM {examples} Accessibility (AC). . . . . . . . . . . . . {Handicap Accessibility / Compatibility} Electrical (EL). . . . . . . . . . . . . . {Power, Lighting, Emergency Generators} Energy Management (EN). . . . . . . {Temperature Control and Monitoring} Exterior Structure (ES). . . . . . . . . . . . . {Brick/Masonry, Windows, Roof} Fire/Life Safety (FS). . . . . . . . . . . {Fire Alarm and Suppression Systems} Health (HE). . . . . . . . . . . . . . . . . . . . . . . . . . . . {Air Quality, Noise, etc} HVAC (HV). . . . . . . . . . . . . . . . {Heating, Ventilation and Air Conditioning} High Temperature / Hot Water (HT). . . . . . . . {Piping, Boilers, Pumps} IT Network Plan (IT). . . . . . . . . . . . {Voice, Data, & Wireless Network} Interior / Finish System (IS). . . . . . . . {Flooring, Ceiling, Walls, Cabinets} Plumbing (PL). . . . . . . . . . . . . . . {Domestic Water and Sanitary Systems} Roads, Walks, Parking Lots (RW). . . . . . {Concrete & Asphalt Surfaces} Site (SI). . . . . . . . . . . {Landscape, Grounds, Storm Water / Erosion Control} Vertical Transportation (VT). . . . . . . . {Passenger and Freight Elevators} Rev. 10/11/07

Facilities Condition Assessment Assessment includes a detailed summary for each CAM project. Details include: Unique project number Approx. 1,480 projects Project title Project description Priority coding Estimated cost Approx. $157 million Labor Material Fees - Architect / Engineering Rev. 10/11/07

Capital Asset Management (Project Classification) CAM is a systematic approach to renewing capital assets through planned: Plant Renewal Deferred Plant Renewal Plant Adaptation The University's Asset Portfolio is systematically managed through three major components: Plant Renewal Deferred Plant Renewal, and Plant Adaptation Rev. 10/11/07

Plant Renewal “…future cyclical renewal and replacement requirements that extend the (present) life and retain the usable condition of campus facilities and (building) systems…” (NACUBO) Examples: roof replacement, electrical switchgear, HVAC system replacement Rev. 10/11/07

Deferred Plant Renewal “…measures that are not carried out because of under funding … or perceived low priority…” (NACUBO) Postponed work Example: Deferring parking lot repairs because total costs exceed current budget Low priority Example: Dredge wetlands downstream of lower playfields (est. $2 million) Rev. 10/11/07

Plant Adaptation “…improvements are driven by institutional program changes …” (NACUBO) The evolving use of the institution (e.g., changes in academic disciplines, shifting expectations, supporting institutional mission, etc.), or Changing standards (e.g., campus master plans, architectural standards, etc.) Rev. 10/11/07

Facilities Condition Assessment PRIORITY 1 (160 projects @ $5.8 million) Current & Critical (immediate or current year) Immediate action required: Return a facility to normal operation Stop accelerated deterioration Correct a cited safety hazard Example: Life Safety (Hannah - Replacing emergency lights and exit signs) HVAC (SEB - Modify cold room research equipment for Eye Institute) Fire Safety (BGM – Install containment for indoor oil storage) Rev. 10/11/07

Facilities Condition Assessment PRIORITY 2 (300 projects @ $11.6 million) Potentially Critical (one year) If not corrected expeditiously, will become critical within a year: Intermittent interruptions Rapid deterioration Potential safety hazard Example: Elevator (ODH – Upgrade passenger elevators & controls) Health (DHE – Upgrade laboratory fume hoods) HVAC (NFH – Replace heat exchanger in mechanical room) Rev. 10/11/07

Facilities Condition Assessment PRIORITY 3 (510 projects @ $65.7 million) Necessary / Not Yet Critical (two – five years) Conditions requiring prompt attention: preclude predictable deterioration potential down time higher costs if deferred further Example: HTHW (Heating Plant - repair / re-tube hot water boiler) HTHW (Main Campus – Replace north loop HTHW piping) Exterior (ODH – Waterproof concrete plaza / create new plaza) Electrical (Emergency generator project) Projects identified for FY 09 through FY 12 SPECIAL “One Time Project” in FY 2011 Rev. 10/11/07

Facilities Condition Assessment PRIORITY 4 (330 projects @ $48.1 million) Recommended (six – nine years) Sensible improvement to existing conditions: Not required for the most basic function of a facility Improve overall usability, reduce long-term maintenance Example: HTHW (VAR – Replace heat exchanger) Exterior (ODH – Replace roofing) Projects in FY 2013 through 2016 Rev. 10/11/07

Facilities Condition Assessment PRIORITY 5 (180 projects @ $25.8 million) Recommended (ten years or beyond) Projects may represent an economic payback. Example: HVAC (GHC – Convert air handling equipment to VAV) HVAC (PH – Overhaul chiller and related components) HVAC (BGM - Convert propane equipment to natural gas) Projects in FY 2017 and BEYOND Rev. 10/11/07

Capital Asset Management Cost per Priority Classification Fiscal Year 2008 2009 2010 - 2013 2014 - 2017 2018 + System Description Priority 1 Priority 2 Priority 3 Priority 4 Priority 5 Sub Total Accessibility $16,234 $10,897 $637,093 $796,861 $165,105 $1,626,190 Electrical $360 $1,540,314 $3,524,578 $2,318,112 $3,006,576 $10,389,940 Energy $232,677 $25,190 $440,354 $289,429 $2,880 $990,530 Exterior Systems $650,107 $2,553,322 $4,944,107 $3,980,389 $318,722 $12,446,647 Fire / Life Safety $931,877 $508,487 $3,299,750 $2,899,713 $2,473,318 $10,113,145 Health $44,310 $403,790 $0 $15,000 $463,100 High Temp Hot Water $401,500 $379,053 $7,006,645 $4,923,323 $1,877,497 $14,588,018 HVAC $1,223,463 $1,765,057 $9,507,982 $6,973,736 $1,117,154 $20,587,392 Interior Systems $541,160 $1,568,436 $8,811,022 $11,984,835 $4,002,666 $26,908,119 Information Technology $21,000,000 Plumbing $56,197 $378,379 $1,528,839 $2,160,281 $243,817 $4,367,513 Roads / Walks / Parking Lots $658,000 $1,345,759 $1,559,530 $5,779,210 $5,384,144 $14,726,643 Site $734,735 $631,615 $2,001,896 $5,580,538 $6,612,149 $15,560,933 Elevators $298,100 $484,957 $1,461,641 $425,288 $572,721 $3,242,707 TOTALS $5,788,720 $11,595,256 $65,723,437 $48,111,715 $25,791,749 $157,010,877 Rev. 10/11/07

Capital Asset Management Facilities Management Department and Auxiliaries maintain 48 major buildings and 1,441 acres of campus Oakland University’s Facilities Department and Auxiliaries MANAGE AN ASSET PORTFOLIO with approximately 48 major buildings and 14 HUNDRED acres of campus Rev. 10/11/07

Facilities Replacement Cost (FRC) The total replacement cost for the building or structure and its contents or fixed assets. Currently estimated at $650 million FCR Central Heating Plant includes $2 Million for Building and $18 Million for boilers and related equipment Rev. 10/11/07

Facility Condition Needs Index A relative measure for comparing one building (or group of buildings) to another. Calculated by dividing the total project costs by the total facility replacement cost. The lower the number, the better the facility condition. Rev. 10/11/07

Facility Condition Needs Index FCNI Range Condition Description (APPA) 0.01 – 0.05 Excellent condition, typically new construction 0.06 – 0.15 Good condition, renovations occur on schedule 0.16 – 0.30 Fair condition, in need of normal renovation 0.31 – 0.40 Below average condition, major renovation required 0.41 – 0.59 Poor condition, gut / renovation indicated 0.60 and above Complete facility replacement indicated Rev. 10/11/07

Oakland University Conditions June 2007 Project Cost ------------------------------------- = Facility Condition Needs Index Facility Replacement Cost Project Cost Facility Replacement Cost Total FCNI Benchmark Rating $157,010,877 $650,078,111 0.242 Fair Condition Rev. 10/11/07

Capital Asset Management Integration of Capital Asset Management And Budgets Rev. 10/11/07

Capital Asset Management Projects Graphically the Capital Asset Management Projects a identify CASH NEEDS MODEL for the next ten years are shown with Plant Renewal at the base With Deferred Plant Renewal stacked next Finally Plant Adaptation is stacked on TOP Priority 1 2008 Priority 2 2009 Priority 3 2010 – 2013 Priority 4 2014 – 2017 Priority 5 2018 & Beyond $5,788,720 $11,595,256 $65,723,437 $48,111,715 $25,791,749 Rev. 10/11/07

Continue at current level ….. Spend nothing ….. Continue at current level ….. Set goals for Excellent Facilities Condition Needs Index ….. Obviously , Spending Nothing is NOT AN OPTION The following will graphically illustrate how expenditures impact the Facilities Condition NEEDS Index Rev. 10/11/07

No Increase in Current CAM Funding Levels Below Average Mid-Fair Current Funding Level Includes $1.3 million from General Fund Approx $300 Thousand from Auxiliaries Rev. 10/11/07

Ultimate Funding (FCNI = 0.15 by FY’2018) Good Mid-fair Rev. 10/11/07

Optimum Changes to CAM Funding Levels Mid-fair Mid-fair Rev. 10/11/07

Facilities Condition Assessment And Capital Asset Management