Pennsylvania Association of School Business Officials 56 th Annual Conference Technologies in Capital Planning Forecasting Facility Needs and Long- Term Planning David Kornegay Senior Applications Engineer and SchoolDude “Mayor”

Pennsylvania Association of School Business Officials 56 th Annual Conference Resources Available to You

Pennsylvania Association of School Business Officials 56 th Annual Conference Perception Gap – What Others See

Pennsylvania Association of School Business Officials 56 th Annual Conference Perception Gap – The Reality

Pennsylvania Association of School Business Officials 56 th Annual Conference Why Capital Planning? Quality School Facilities Strong Neighborhoods Economic Growth Awareness Thriving Community Strong Tax Base

Pennsylvania Association of School Business Officials 56 th Annual Conference Before students stepped foot in your doors this year, there was a $5,400 per student backlog of 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

Are You Planning? 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 56 th Annual Conference Facilities need a radar!

Why Planning Matters

Pennsylvania Association of School Business Officials 56 th 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.45 I modified slightly. Orange is at.45 in For every $1 of maintenance you defer, it takes $3-4 to fix Deferred Maintenance Potential

Pennsylvania Association of School Business Officials 56 th 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 56 th 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 56 th 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 56 th Annual Conference Four Step Program to Get More Money, Capital, Staff, etc Present your request for staff and money

Pennsylvania Association of School Business Officials 56 th Annual Conference Four Step Program to Get More Money, Capital, Staff, etc. 1.Improve your image 2.Establish a respected methodology 3.Educate the decision makers and decision influencers 4.Present your request for staff and money

Pennsylvania Association of School Business Officials 56 th 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 too emotional; shift conversations from “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 Modernization Renewal 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 56 th Annual Conference Inexpensive but questionable credibility The List Inexpensive but questionable credibility

Pennsylvania Association of School Business Officials 56 th Annual Conference The List

Pennsylvania Association of School Business Officials 56 th Annual Conference Highly credible, but too expensive for some Facility Condition Assessment Highly credible, but too expensive for some

Pennsylvania Association of School Business Officials 56 th Annual Conference Issue, Need or Deficiency

Pennsylvania Association of School Business Officials 56 th Annual Conference Estimate, Correction or Resolution

Pennsylvania Association of School Business Officials 56 th Annual Conference Proven methodology, highly credible and very affordable Life Cycle Modeling Proven methodology, highly credible and very affordable

Pennsylvania Association of School Business Officials 56 th Annual Conference Typical Systems in Modeling

Pennsylvania Association of School Business Officials 56 th 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 56 th Annual Conference Sample Renewal Plan

Pennsylvania Association of School Business Officials 56 th 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 $6,500,000 12%

Other FCI Interpretations

Pennsylvania Association of School Business Officials 56 th Annual Conference Alaska

Pennsylvania Association of School Business Officials 56 th Annual Conference

Life Cycle Modeling Approach endorsed in a joint publication by 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 56 th 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 systems need to be replaced or renovated, plus the associated costs. Source: Pacific Partners

Pennsylvania Association of School Business Officials 56 th 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 assessments b) identify buildings to “consume” c) consolidating capital projects Source: Pacific Partners

Translating Life Cycle Modeling to Non-Facility Folks Minimal info is needed to see trends and estimates

Pennsylvania Association of School Business Officials 56 th Annual Conference Traditional Executive Report on Future Facility Expenditures delete Source: Pacific Partners Consulting Group

Renewal Needs Source: Pacific Partners Consulting Group

Pennsylvania Association of School Business Officials 56 th 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 56 th 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 56 th 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 56 th Annual Conference Predictive Modeling Reinvents the Process Changing the way capital needs are planned and managed Technology is assisting predictive modeling methodology Makes assessment data accessible and affordable

Pennsylvania Association of School Business Officials 56 th 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 56 th Annual Conference Past vs. Present: How did you first begin planning facility needs for the future? What processes? How are you planning facility needs now? What goals for planning facility needs do you have now? How have you presented needs in the past vs. now?

Pennsylvania Association of School Business Officials 56 th Annual Conference Making Changes What techniques do you use to prepare info for your reports (staff requests, audits/assessments, renewal modeling)? How much estimating do you do in- house vs. have contractors provide estimates for potential work?

Pennsylvania Association of School Business Officials 56 th Annual Conference Results/Benefits Are you preparing for a bond or similar funding initiative? Are your funding recommendations seen as the result of a proven methodology? Can you show long-term accountability? What KPI’s or graphs do you use?

Pennsylvania Association of School Business Officials 56 th Annual Conference Questions?

Pennsylvania Association of School Business Officials 56 th Annual Conference SchoolDude: Using PlanningDirect for Facility Forecasting

Pennsylvania Association of School Business Officials 56 th Annual Conference Bring It All Together

Pennsylvania Association of School Business Officials 56 th Annual Conference Proven methodology, highly credible and very affordable Technology Assisted Renewal Analysis Proven methodology, highly credible and very affordable

Pennsylvania Association of School Business Officials 56 th Annual Conference SchoolDude: Software delivered via the web that simplifies the work processes performed by education support professionals everyday.

Pennsylvania Association of School Business Officials 56 th Annual Conference Bridging the Daily Workflow

Facility Management: SchoolDude software provides an integrated solution for capital planning, preventive maintenance and work order management. Receive or create and complete work online Workflow and tracking Advanced searching, graphing and reporting Dynamic, real-time capital planning Renewal and cost projections on critical systems Integrate with maintenance systems Schedule upcoming planned work Include tasks from templates Forecast supplies needed

Pennsylvania Association of School Business Officials 56 th Annual Conference Technology Assisted Renewal Assessment (TARA) Easier to manage vs. assessments or “lists” Easier to keep “live” Forecasted cost estimates are as accurate as full assessments

Pennsylvania Association of School Business Officials 56 th Annual Conference Minimal Information To Start 1. Building Name 2. Building Type 3. Gross Square Feet (GSF) 4. Floors 5. Year Built

Examples of Building Categories  Offices, classrooms, libraries (basic)  Science Buildings (complex)  Modular Buildings (modular)  Storage Structures (simple)  Buildings under 1,000 gsf (small)

Pennsylvania Association of School Business Officials 56 th Annual Conference Improving the Forecast Setting the Clock on the Systems When was the system last renovated? or What is the remaining life of the system? or Is the system past its useful life (DM or backlog)?

Pennsylvania Association of School Business Officials 56 th Annual Conference Special Consideration Factors Historic Buildings Libraries Multi-story Buildings Specialty Buildings

Pennsylvania Association of School Business Officials 56 th Annual Conference Adding TARA to PlanningDirect Faster startup Inexpensive to implement and maintain Creates a process that is quick, simple, accurate, and improves as more information is added

Pennsylvania Association of School Business Officials 56 th Annual Conference Identify Other Needs Along With Renewals

Pennsylvania Association of School Business Officials 56 th Annual Conference “Facilities assessment based on life-cycle modeling is the best investment we've made in years. It opened a lot of people's eyes to our real needs in updating equipment and processes” Anonymous quote from SchoolDude Capital Planning Survey

Pennsylvania Association of School Business Officials 56 th Annual Conference Needs Matrix (aka Threat Radar) Spike in cost of needs

Results

Pennsylvania Association of School Business Officials 56 th Annual Conference PlanningDirect  On-Demand  Profiles for each location  Detailed estimates for 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 56 th Annual Conference Questions?