Proposed Space Utilization Strategy (DRAFT)

Mizzou E&G Campus E&G Buildings Mizzou North Research Park

Current MU E&G Funding FY15 Maintenance budget was $16.8M $16.8M budget represents 0.68% funding of current replacement value (CRV) $6.9M of the $16M.8 is used for Daily Service (light bulb replacement, electrical repairs, plumbing and HVAC repairs, etc.) Therefore, $9.9M is available for Building M&R – Capital Repairs $9.9M M&R budget represents 0.40% funding of CRV

MU E&G Maintenance Funding History Fiscal Year $/GSF % CRV $/GSF with 2% inflation Proactive Reactive 1998 $ 2.45 1.50%   $ 1.60 65% $ 0.85 35% 1999 $ 2.24 $ 2.50 $ 1.28 57% $ 0.96 43% 2000 $ 2.12 1.46% $ 2.55 $ 1.05 50% $ 1.07 2001 $ 2.03 1.32% $ 2.60 $ 0.87 $ 1.16 2002 $ 1.87 1.16% $ 2.65 $ 0.73 39% $ 1.14 61% 2003 $ 1.80 0.77% $ 2.70 $ 0.68 38% $ 1.12 62% 2004 $ 2.02 0.82% $ 2.76 $ 0.99 49% $ 1.03 51% 2005 $ 2.00 0.79% $ 2.81 $ 0.89 45% $ 1.11 56% 2006 $ 1.69 0.65% $ 2.87 $ 0.56 33% $ 1.13 67% 2007 $ 1.77 $ 2.93 $ 0.63 36% 64% 2008 $ 1.85 0.64% $ 2.99 $ 0.69 37% 63% 2009 $ 1.86 0.61% $ 3.05 $ 0.70 2010 $ 1.83 0.57% $ 3.11 $ 1.15 2011 $ 2.06 $ 3.17 $ 0.78 2012 $ 2.18 $ 3.23 $ 0.82 $ 1.36 2013 $ 2.33 0.67% $ 3.30 $ 0.91 40% $ 1.42 60% 2014 $ 2.42 0.68% $ 3.36 $ 0.94 $ 1.48 2015 $ 2.43 $ 3.42 $ 0.97 $ 1.46

Sightlines Introduction Independent benchmarking and analysis consultant Annual Stewardship = M&R Funding Daily Service = Ongoing daily M&R

Sightlines Results Sightlines Minimum Funding Results MU CRV = $2.473B 1.70% CRV, Annual Stewardship (M&R) target 0.30% CRV, Recommended Daily Service 2.00% CRV annually

Sightlines Funding Model Assuming 2% annual inflation FY15 Daily Service Funding FY15 M&R Funding Sightlines Proposed Daily Service Funding 0.30% of CRV Sightlines Proposed M&R Funding 1.70% of CRV

ISES Introduction Independent facility auditor Provides a list of specific deficiencies and associated corrective costs to determine a facility condition needs index (FCNI) The FCNI is a measure (in percentage) of the facility’s needs in relation to it’s CRV Example: .80 FCNI for McKee Hall indicates the identified needs are equal to 80% of the CRV of the facility

Major building renovation needed FCNI Guidelines MU’s Goal Major building renovation needed .00 .30 .40 1.0 Historically MU has set a .30 FCNI or lower as a goal and a .40 FCNI or higher indicates facility is in need of a major building renovation

ISES Results ISES Minimum Funding Results: ISES CRV $2.4B Current backlog is $715M Current growth rate of $35M ISES Minimum Funding Results: 2.04% of Current Replacement Value

ISES Funding Model Assuming 2% annual inflation Current M&R Funding $16.8M = .68% CRV Recommended ISES M&R Funding = 2.04% CRV

Mizzou E&G Campus E&G Buildings Mizzou North Research Park

E&G Buildings Requiring Renovation Mizzou North Research Park

FCNI Projections

Buildings Over .40 FCNI Research Park Development – EHS 10,496 Bldg GSF Curtis Hall 1.19 28,979 Noyes Hall 0.92 21,718 Waters Hall 0.82 49,184 McKee Gymnasium 0.79 30,778 Veterinary Science Building 0.76 40,350 McAlester Hall 0.74 41,435 Old Student Health Center 0.72 22,985 Allton Building 0.68 20,926 Columbia Professional Building 0.62 26,877 Parker Hall 0.59 27,378 Arvarh E. Strickland Hall 0.56 68,961 Crowder Hall 25,181 Building FCNI Bldg GSF Neff Hall - 1959 Addition 0.55 21,456 Eckles Hall 0.54 36,018 Fine Arts Annex 15,564 Mumford Hall 0.52 52,200 Neff Hall 18,866 MIZZOU NORTH 0.51 223,331 Hill Hall 0.5 45,377 Ellis Library 0.49 245,084 Laboratory Animal Center 12,886 Research Park Development – EHS 10,496 1110 S. College Avenue 0.48 22,060 Heinkel Building 41,257

Buildings Over .40 FCNI Total E&G Campus = 6,900,000 GSF Bldg GSF Stanley Hall & Stanley Hall Addition 0.48 35,406 Agriculture Lab 0.47 33,504 Read Hall 19,496 Veterinary Medicine West Building 73,497 LeFevre Hall 0.46 54,817 Lewis Hall 69,168 London Hall 20,181 Whitten Hall 0.44 26,071 Building FCNI Bldg GSF Gannett Hall 0.43 22,150 Green Building 15,453 Pickard Hall 24,601 Veterinary Diagnostics Laboratory Building 0.42 21,144 Chemistry Building 0.41 92,321 Fine Arts Building (Music & Dramatic Arts) 0.4 51,458 Loeb Hall 14,680 Middlebush Hall 71,180 Total E&G Campus = 6,900,000 GSF Total over .40 FCNI (40 Buildings) = 1,794,474 (26% of E&G Campus)

Space by College

Sightlines and ISES Summary MU Current 0.68% of CRV Sightlines 2.00% of CRV ISES 2.04% of CRV APPA, higher education facilities management organization: “Acknowledging variances for age and type of facilities, a recommended range for annual capital renewal funding is 1.5 to 3 percent of total replacement value of plant; some recommend even higher amounts.”

A concept…. Eliminate 250,000 GSF (or more) of campus building area through demolition. Every GSF reduced lessens the load on the Power Plant, allowing current capacity to be sufficient longer. A smaller campus will allow M&R service to be maintained, even after the FY17 budget cut.

M&R Funding P/GSF $7.46/GSF recommended

Reduced E&G Space Funding Analysis FY17 Current Replacement Value (CRV) - $2.491B FY17 Funding - $16,096,367 Current GSF Maintained – 6,900,000

Goals Always!! - Further the academic mission Reduce deferred maintenance and FCNI growth Improve or maintain Level of Service

State Appropriations plus Net Tuition & Fees Compared to Peers

ISES Funding Model Assuming 2% annual inflation Current M&R Funding $16.8M = .68% CRV Recommended ISES M&R Funding = 2.04% CRV

Change in General Operating Funding Sources 27% 70% 3 % TUITION STATE SUPPORT Similar to the information presented on page 1-19. Why is this shift so important to how we do business? Programs have different cost drivers creating the need to subsidies across programs.