1. Facilities Capital Planning and Management A program management overview prepared for Ferndale School Districts Facilities Planning Committee

2. Facilities Capital Planning and Management A significant portion of an average organization capital outlay is spent on facilities and related infrastructure. It is important that organizations ensure that they effectively leverage this investment to support today's operations and the needs of the future.

3. Facilities Capital Planning and Management The three major components of an optimally managed program are: Operations and Maintenance Capital Restoration Projects Strategic Capital Planning.

4. Facilities Operations and Maintenance From the perspective of Facilities Asset Preservation, the key roles of O&M are: to optimally operate the facilities to preventatively maintain to make minor repairs Bottom Line…. CONTROL THE RATE OF DETERIORATION.

5. Capital Restoration Projects Complete major component or system replacements. Complete major building upgrades. Bottom line… Prolong the useful life of a facility by restoring building components or systems that have reached their useful life.

6. Strategic Capital Planning Strategic planning determines and plans for: The current and long term facility needs Determines the annual and long term capital program costs. Promotes accountability for capital expenditures Tracks progress.

7. Strategic Capital Planning There are two key areas of focus which must be understood to effectively manage your facilities over the short and long term: The current and projected usage of your facilities over time IE number of students, demand for programs, etc…. The current and future needs of your Capital Assets. The balance of this presentation will be focused on the facilities assets and their preservation.

8. Facilities Capital Planning and Management To optimally manage a capital assets, the organization must be able to answer the following questions: – What is the physical and functional condition of our facilities? – Where is the greatest risk to the continuity of the programs. – What is the cost of the planned improvement program? – How are capital project prioritized? – Are we spending according to plan? – How are we progressing toward our goals?

9. Facilities Condition Assessments Answering these questions requires detailed information about the condition of an organizations facilities and major building systems. Facility Condition Assessments provide the baseline information for your Facilities Capital Planning.

10. Facilities Condition Assessments A condition assessment in a nut shell is the process of evaluating all of your facilities systems and components to determine the condition, deficiencies and remaining life. In addition, it establishes the capital cost to return the systems into a maintainable condition, the current value and the projected cost to preserve the asset over time are projected.

11. The Condition Assessment Process The condition assessment process typically follows this pattern. Back ground data is collected, IE floor plans, equipment data, maintenance records. A professional team of assessors inspect the buildings, grounds and all components. Any deficiency are noted and a recommendation to restore the system into a maintainable condition is provided.

12. The Condition Assessment Process The condition assessment process continued…. Each system is assigned a condition rating by system type: 4 - Good - Assembly/component free of damage; properly aligned and operational; appropriate for function/usage 3 – Fair - Assemblies worn but serviceable; components require adjustment/cleaning; preventative maintenance required. 2 - Poor - Component damage; limited system operation; substandard conditions; restoration/repairs required 1 – Unsatisfactory - Significant system damage; seriously deficient; non-functional beyond feasible repair; replacement required

13. The Condition Assessment Process The condition assessment process continued…. A Prioritization factor is assigned: 5 points – Health and Safety Issue. 4 points – Code Compliance Issues 3 points – Deteriorated 2 points – High operating cost or cost avoidance 1 point – Aesthetic / cosmetic.

14. The Condition Assessment Process The condition assessment process continued…. A criticality factor is assigned. Immediate Concern Within 12 months Future Capital Project.

15. The Condition Assessment Process The condition assessment process continued…. The remaining life of the building component is projected. The location, size and quantity is determined.

16. The Condition Assessment Process The condition assessment process continued…. At this point all of the data is entered into a data base. Cost estimates are projected to bring the facility back into a maintainable condition. Goto sample component detail sheet

17. The Condition Assessment Report The Database now becomes part of your operations and planning…. Restoration projects or tasks can be transferred to the Districts Work Order System for completion by O&M or the project management group. Project cost data, life cycle information and so on is now in the system for the use by your capital planning process.

18. Capital Planning Critical information is now available for the District to optimally manage its capital assets. You now understand…. – the physical and functional condition of your facilities – where the greatest risk to the continuity of the programs within each facility and portfolio of assets. – The cost of the planned improvement program. – You have objectively prioritized your needs. – You can create a spending plan. – You can report your progressing to your stakeholders.

19. Strategic Capital Planning Understanding the condition, the remaining life and the cost to preserve each and all of your assets over time provides basic information needed for modeling what if scenarios: – How much will it cost me to do everything I need to do this year? – How much will it cost me to own this facility over the next 15 years? – What will it cost me to defer this work two years as apposed to doing this now? Coupling this information with your growth projection provides you with the ability to make Strategic Capital Plans for your District.

20. The End