1. Facilities Condition Assessment And Capital Asset Management

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. Facilities Condition Assessment
PRIORITY 1 (160 $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

11. Facilities Condition Assessment
PRIORITY 2 (300 $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

12. Facilities Condition Assessment
PRIORITY 3 (510 $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

13. Facilities Condition Assessment
PRIORITY 4 (330 $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

14. Facilities Condition Assessment
PRIORITY 5 (180 $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

15. Capital Asset Management Cost per Priority Classification
Fiscal Year
2008
2009
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

16. 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

17. 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

18. 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

19. 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

20. 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

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

22. 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

23. 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

24. 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

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

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

27. Facilities Condition Assessment And Capital Asset Management