1. Managing the Facilities Asset Portfolio Prepared for the Tuition Policy Advisory Committee by The University of Texas Physical Plant September 10, 2003 Committee Meeting #4

2. 2 A strategic plan to measure, monitor, and benchmark Facilities Asset Performance with the same rigor used in managing financial assets. Managing the Facilities Asset Portfolio

3. 3 Assess Facility Needs Condition: Physical state of buildings & major code issues Adaptation: Programmatic needs based on teaching & research requirements Establish Condition Index Goals for the Portfolio Facility Condition Index (FCI) for campus as a whole Building Condition Index (BCI) range for individual buildings Allocate Resources to Meet Goals Develop a maintenance plan for each building Prepare contingency plans Monitor Progress Toward Goals Track key metrics Analyze results, adjust plan as needed Managing the Facilities Asset Portfolio

4. 4 Assess Facility Needs VFA has assessed 12 M gross square feet E&G Current Replacement Value (CRV) of $1,859 M Identified needs of approximately $740 M FCI = $740 M / $1,859 M =.40 Maintaining the condition index will require $30 M per year

5. 5 Assess Facility Needs

6. 6 Facility Condition Index (FCI) for campus:.20 in 2020 Building Condition Index (BCI) range for individual buildings:.15 to.40 Establish Goals

7. 7 Two-Phased Plan to Achieve Goal Develop a Maintenance Plan for Each Building Prepare Contingency Plans Allocate Resources

8. 8 Assign buildings to categories that guide maintenance actions: A – Allow to Age Gracefully B – Bandage as Needed C – Can Be Saved D – Do a Capital Project (CIP) Allocate Resources

9. 9 A –Allow to Age Gracefully Newer buildings with BCI below target. Allow building to age slowly until it approaches target BCI. Maintenance will primarily be routine and preventive. Allocate Resources

10. 10 B – Bandage as Needed Buildings with BCI near target. Maintain building in its current condition. Maintenance will include system replacement as needed, as well as routine and preventive. Allocate Resources

11. 11 C – Can Be Saved Buildings with BCI well above target. Upgrading the building will move it toward the target BCI. Maintenance may include several system replacements and area renovations, as well as routine and preventive. Allocate Resources

12. 12 D – Do a Capital Project (CIP) Buildings with BCI far beyond target where cost to bring in range approaches replacement cost or where major adaptation is needed. Maintenance will be minimum required to keep building usable. Failure is imminent. Allocate Resources

13. 13 Current Space Distribution by Category and Square Feet Allocate Resources

14. 14 BCI =.02 Group A: North Office Building A Allocate Resources

15. 15 BCI =.33 Group B: College of Business Administration Allocate Resources

16. 16 BCI =.56 Group C: Peter T. Flawn Academic Center Allocate Resources

17. 17 BCI =.88 Group D: Garrison Hall Allocate Resources

18. 18 Allocate available resources within each category according to: Customer priorities Impact on BCI Focus on high priority deficiencies Minimize patching Ability to “Fix the building, not the problem” Package multiple deficiencies to create larger project Allocate Resources

19. 19 Contingency Plans are a must. Building Users: Operating Contingency Plan Where will classes be held when systems fail? Physical Plant: Facilities Contingency Plan Which systems in which buildings are most likely to fail? What will we do when systems fails? Allocate Resources “Not if failure occurs, but when failure occurs”

20. 20 Allocate Resources

21. 21 Monitor Progress Maintain Accuracy of Key Metrics 1. CRV 2. Facility Needs 3. FCI and BCI

22. 22 Monitor Progress Analyze Results Annually Compare actual FCI to prior years and to goal Identify buildings that are outside desired BCI range Develop annual spending plan to optimize available resources

23. 23 Funding Scenarios Options for FY 03/04

24. 24 Funding Scenarios $4 million per year FCI continues to rise Eminent and actual failures Primarily reactive

25. 25 Funding Scenarios $14 million per year

26. 26 Funding Scenarios $14 million per year Electrical

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29. 29 Funding Scenarios $14 million per year Electrical Mechanical

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32. 32 Funding Scenarios $14 million per year Electrical Mechanical HVAC

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35. 35 Funding Scenarios $14 million per year Electrical Mechanical HVAC Roofs

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38. 38 Funding Scenarios $14 million per year Electrical Mechanical HVAC Roofs Slowed rate of FCI growth

39. 39 Assess Facility Needs Establish Goals for the Portfolio Allocate Resources to Meet Goals Monitor Progress Toward Goals Managing the Facilities Asset Portfolio “20 in 2020”

40. 40 Assess Facility Needs Condition: Physical state of buildings & major code issues Adaptation: Programmatic needs based on teaching & research requirements Establish Condition Index Goals for the Portfolio Facility Condition Index (FCI) for campus as a whole Building Condition Index (BCI) range for individual buildings Allocate Resources to Meet Goals Develop a maintenance plan for each building Prepare contingency plans Monitor Progress Toward Goals Track key metrics Analyze results, adjust plan as needed Managing the Facilities Asset Portfolio FCI = Deficiencies / Current Replacement Value