Wayne State University Facilities Planning & Management Budget Woes March 16, 2005

Michigan Public Universities

The Challenge Improve operational efficiency with diminishing resources Productivity & Responsiveness Maintenance (buildings & grounds) Custodial

Budget Impacts Funding Reductions Increased work load General Expense Staffing Increased work load Service offerings Frequencies Increase in Utility Cost

General Fund Budget Dealing with the reduction in dollars

General Expense Reduction

Headcount Reduction

Headcount Reduction Management - 2 Supervisors - 2 Trades - 17 Custodial – 17 Grounds - 1 Administrative - 2

Budget Impacts General Fund Staffing FY2000 ($17,751,000) Decrease of $1,349,000 (Decrease of 7.5%) Staffing FY2000 (408 FTE) FY2004 (377 FTE) Decrease of 31 FTE’s (Decrease of 7.6%)

Campus Impact General Fund Building Square Footage FY2000 (6,624,594 sq. ft.) FY2005 (7,737,120 sq. ft.) Net Increase of 1,112,526 sq. ft. 17% increase

New Programs New Construction Fitness Center Law School Expansion Pharmacy Welcome Center Parking Structure #6 Bookstore North Hall South Hall The Towers

New Programs New Acquisitions 1011 E. Ferry 110 E. Warren 101 E. Alexandrine (Lease) 5057 Woodward

New Programs Other Perinatal Research Branch (Mott Center)

APPA Peer Comparison National Benchmarking Survey Conducted by APPA in 2000 165 Respondents 50 Carnegie research institutions

APPA Peer Comparison Benchmark Measurement Facilities Operating Expenditures by Gross Square Feet - 1999 Data 10th Percentile - $1.51 Wayne State University - $2.25 Carnegie Research Group Avg. - $3.33 90th Percentile - $5.79 Best Practice Recommendation $6.00 - $8.00

APPA Peer Comparison Benchmark Measurement Facilities Operating Expenditures by Gross Square Feet - 1999 Data Wayne State University - $2.25 FY04 reduced by 8% to $2.07

HOW ARE WE MAINTAINING THE UNIVERSITY?

Do More With Less Strategies Organizational Restructuring Assigned Zone Directors Engineers and Custodians Research and Medical Campus Administration, Classrooms, Auxiliary Assigned Trades Director Eliminated managers Promoted trades team leaders Redefined trades work assignments

Customer Service Initiative Division of Finance and Administration FP&M Fiscal Operations Business Operations Human Resources Objective Understand the purpose Identify roles and responsibilities Understand the need to work together Begin to recognize diversity

Process Improvements Customer Service Initiatives Maintenance Work Orders Averaged 58% of work orders complete in 14 days Increase of 138% from 2001 Backlog of 910 work orders Reduction of 34% from 2001 Preventive Maintenance Reduced service calls by 10% after 1st year Reduced HVAC repair cost by $150K after 1st year

Operating Efficiencies Energy Conservation Scott Hall Project Performance Contract - $850,000 Lighting Retrofit Steam Trap Replacements VAV conversion Energy efficient motors ECM’s Over $1.1 million in project savings annually

Energy Conservation Measures (ECM’s) Lighting Retrofits Building Automation System Night set-back scheduling Temperature set points Heating and cooling Delay cooling system start-up Chiller Replacements Steam v.s. Electric Steam system repairs Steam traps Heat exchangers Insulation

Operating Efficiencies Energy Intensity Electricity (kWh) + Gas (MCF) + Steam (Mlb) converted to KBTU Divide Total by Square Feet Measure of overall energy input annually

Operating Efficiencies

In Progress TMA System Core Management Maintenance Work Orders Preventive Maintenance Inventory efficiencies Core Management Custodial operation improvements

On The Horizon Anticipated for FY06 Higher Education budget reduction BE PREPARED

Questions

Contacts Angela Strickland Director of Business Services Phone: (313) 577-4309 E-mail: ae3294@wayne.edu Mike Simmons Director of Facilities Operations Phone: (313) 577-4311 E-mail: mikesimmons@wayne.edu