Doing More with Less: Solutions for Managing Facilities on a Limited Budget

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University of South FloridaUniversity of Southern

University of Southern MaineUniversity of St. Thomas

University of Tennessee, KnoxvilleUniversity of Texas - Austin

University of Texas at DallasUniversity of Texas Health

University of Texas Rio Grande ValleyUniversity of the Sciences in Philadelphia

University of ToledoUniversity of Vermont

University of WashingtonUniversity of West Florida

University of Wisconsin - MadisonVanderbilt University

Virginia Commonwealth UniversityWake Forest University

Washburn UniversityWashington State University

Washington State University - Tri-Cities CampusWashington State University - Vancouver

Washington University in St. LouisWayne State University

Wellesley CollegeWesleyan University

West Chester UniversityWest Virginia Health Science Center

West Virginia UniversityWestern Oregon University

Westfield State UniversityWidener University

Williams CollegeWorcester Polytechnic Institute

Worcester State UniversityXavier University

Doing More with LessSolutions for Managing Facilities on a Limited Budget

September 28, 2017

© 2017 Sightlines, LLC. All Rights Reserved.3

Setting the Context

Three Proven Practices

Questions & Discussion

Service Demonstration (for those interested)

Introduction & Agenda

Pete ZurawVP, Market Strategy &

DevelopmentSightlines

Jay PearlmanAssociate Vice President

Sightlines


Join the Conversation

Enter questions here at any point during the webinar

Presentation slides and webinar recording

will be sent to each attendee following

today’s session


Leading provider of facilities

intelligence in higher

education helping to uncover

ways to use capital more

strategically and identify

opportunities to improve

operational effectiveness.

FACILITIES BENCHMARKING

& ANALYSIS

Take control of your

facilities and make the

case for change

without the guesswork

FACILITIES ASSESSMENT &

PLANNING

Plan and execute

capital investment

plans that are inclusive,

credible, flexible,

affordable and

sustainable

SPACE UTILIZATION

Ensure your space is

working up to its full

potential

SUSTAINABILITY SOLUTIONS

Measure and improve

environmental

stewardship


Sightlines by the NumbersRobust membership includes colleges, universities, consortiums, and state systems

Sightlines has advised state systems in:

• Alaska• California• Florida• Hawaii• Maine

• Massachusetts• Minnesota• Mississippi• Missouri• Nebraska

• New Hampshire• New Jersey• Pennsylvania• Texas• Washington

43States+DC

90%Memberretention

rate

360+ROPA

Members

450Colleges &

Universities

180New members

since 20135

Canadianprovinces


Sightlines is a Gordian CompanyData, software, and expertise for all phases of The Building Lifecycle

Setting the Context

Campuses

are closing

Enrollment

Struggles

Infrastructure

is aging Financial

AidAdmin

Costs

DM


Industry Challenges

Capital

funding is

unpredictable

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

% o

f C

on

stru

cte

d S

pac

eConstructed Space 1880-2015

Sightlines Database Texas

Building age in context

Pre-War Post-War Modern Complex

Space Growth and Enrollment

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

2007 2008 2009 2010 2011 2012 2013 2014 2015

Pe

rce

nt

Ch

ange

Space and Enrollment TrendsNational Average

Space Enrollment

Facilities Backlogs Continue Rise

$81.72 $83.42 $87.19 $88.52 $90.73 $93.27 $95.31 $97.56 $100.07

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

2007 2008 2009 2010 2011 2012 2013 2014 2015

$/G

SFBacklog $/GSF

The Sightlines backlog total includes maintenance/repair, modernization and infrastructure

13

Capital Investment in Existing Space

$1.12 $1.19 $1.28 $1.21$1.60 $1.67 $1.71 $1.59 $1.73

$3.10

$3.83 $3.88$3.63 $3.09

$3.37 $3.35$2.99

$3.32

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

2007 2008 2009 2010 2011 2012 2013 2014 2015

$/G

SF

Annual Capital One-Time Capital Average

$3.98$4.26 $4.33 $4.37 $4.41 $4.44 $4.54 $4.65 $4.74

$0.25$0.26 $0.26 $0.26 $0.27 $0.29 $0.29 $0.31 $0.33

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

2007 2008 2009 2010 2011 2012 2013 2014 2015

$/G

SF

Facilities Operating Budget $/GSF

Daily Service Planned Maintenance

Modest Operating Budget Growth

Bright Spot - Energy Costs

$10.87 $11.62 $11.57 $9.95$9.22 $8.88 $8.37 $8.88 $8.45

$27.71$29.56

$29.88$29.36

$29.51$28.16

$27.67 $27.80$28.21

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

$0

$5

$10

$15

$20

$25

$30

$35

$40

2007 2008 2009 2010 2011 2012 2013 2014 2015

Pe

rce

nt

Ch

ange

$/M

MB

TU

Energy Unit Cost

Fossil Electric Percent Change

Integrated Campus Stewardship Challenge

Facilities intelligence that connects space, capital, and operating policies


Three Proven Practices


The Hidden Value in Existing Space

Cost Reduction Projects Offset Capital Investment

Reorganization to Eliminate Deferred Maintenance

Three Proven PracticesFacilities change through institutional action


The Hidden Value in Existing Space Don’t overlook the familiar resources already available

Investigate existing space

Align program and space

Renovate to optimize both

Exploit efficiency opportunities

Case Study – Seattle Pacific University http://www.sightlines.com/seattle-pacific-university-case-study/

http://www.sightlines.com/seattle-pacific-university-case-study/

Scheduling analysis

Equivalent to 15 courses Equivalent to 47 coursesImproved utilization opportunity: 62 courses

15% Increase in courses over existing+ =

$26,873,000$15,264,000$13,920,000

40-Year “Value” of included teaching spaces

• If average utilization rate from 8am-4pm is 55%; then on average $25M of the capital costs of teaching spaces is not utilized.

• Each additional point of increased utilization puts $561,000 of this asset into use.

Funding stewardship using a 5% endowment draw would require an endowment of $6,960,000

Classroom square feet – 67,183 gsf

Capital cost of construction 40 year O&M costStewardship cost

Total cost of capital for classrooms

67,183 gsf x $400/gsf =67,183 gsf x $5.68/gsf x 40 yrs =67,183 gsf x $5.18/gsf x 40 yrs =

$56,057,000


Analyze existing facilities situation

Spending strategy and policy

Prioritize capital per this strategy

Track, celebrate and emphasize resulting improvements

Case Study – Hamilton College http://www.sightlines.com/hamilton-college-case-study/

Cost Reduction Projects Offset Capital InvestmentProjects can give back, too

http://www.sightlines.com/hamilton-college-case-study/

23

Catch-Up Funding Reaching the Target

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

$18.0

$20.0

2003 2004 2005 2006 2007 2008 2009 2010

$ in

Mill

ion

s

Annual Stewardship Asset Reinvestment

Total Capital Investment vs. Target Need

24

Keep-up money replaces catch-up

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

$18.0

$20.0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

$ in

Mill

ion

s

Annual Stewardship Asset Reinvestment Equlibrium Need Target Need

450% increase in 10 years

25

Looking towards Future Needs

$0

$2

$4

$6

$8

$10

$12

$14

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Mill

ion

s

10 Year Prediction of Needs

Mechanical Envelope Space Renewal

42%

18%

40%

26

Increase PM Now to Alleviate Demands in the Future

$0

$1

$2

$3

$4

$5

$6

$7

$8

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Mill

ion

s

10 Year Prediction of Needs

Mechanical Envelope Space Renewal


Reorganization to Eliminate Deferred MaintenanceThe way into trouble isn’t always the best way back out

Facilities team for today…or yesterday?

Measure current and future performance

Great people, great structure

Disciplined focus on prioritized need

Case Study – Bowling Green State Universityhttp://www.sightlines.com/bowling-green-state-university-case-study/

http://www.sightlines.com/bowling-green-state-university-case-study/

3,600,000

3,800,000

4,000,000

4,200,000

4,400,000

4,600,000

4,800,000

5,000,000

5,200,000

0

50

100

150

200

250

300

350

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

Tota

l Cam

pu

s G

SF

Staf

f FT

ECampus Operations Staffing compared to GSF

Headcount GSF

28

Staff FTE vs. Square FootageEven with added GSF, Staff FTE is lower

29

A Case for Centralization Might Include…

Preventative maintenance schedulingCapital plans establishmentProactivity focusProcurement optimizationLiability/accountability shiftTrend identificationCustomer coordination/planning/scheduling

30

Expectation management

Policy and procedure standardization

Budgetary and expenditure consistency

Releasing former responsibilities

Potential Challenges

31

Maintenance Work OrdersIncreased work order reporting has resulted in increased PM identification

0

5,000

10,000

15,000

20,000

25,000

# o

f W

ork

Ord

ers

# of Work Orders

Daily Service PM

0%

1%

2%

3%

4%

5%

6%

7%

% o

f W

ork

Ord

ers

% of Work Orders that are PM

% PM

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Facilities department

Institutional leadership

Faculty, staff and students

Community

Other????

Communication is key

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Questions & Discussion


What did you think?Please share your feedback by answering a few quick questions after the session to helps us get to know you better and improve our webinars for the future

Service Demonstration

Make the Case Without the Guesswork

Separate fact from fiction to identify and validate core issues

Analyze campus needs and develop plans in line with institutional goals

Align institutional need with investment strategy to

improve outcomes

Understand and identify future needs and risks


Primary Benefits

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• Create alignment between space, capital, and operations needs

• Reduce risk of facilities failures

• Increase annual stewardship of aging physical assets

• Develop strategies to fund deferred maintenance

• Reduce overhead of facilities operations

• Create baseline for continuous measurement and improvement

© 2017 Sightlines, LLC. All Rights Reserved.

Sightlines collects and

assembles data on

campus to quantify, verify,

and qualify facility

performance.

Through benchmarking,

institutions can create

custom comparisons that

help them understand context and performance

Sightlines synthesizes the

institution's verified data

to provide expert insight,

perspective, and develop

strategic directions for change

Sightlines supports each campus

through our Member Portal,

thought leadership, Insights

Summit, educational webinars,

and ongoing campus consultation

Measure

BenchmarkAnalyze &Interpret

Membership

Change the Conversation with the ROPA Process


Vocabulary for Facilities Measurement, Benchmarking & Analysis

Asset Reinvestment

The accumulation of repair and modernization needs and the definition of resource capacity to correct them “Catch-Up Costs”

OperationalEffectiveness

The effectiveness of the facilities operating budget, staffing, supervision, and energy management.

Annual Stewardship

The annual investment needed to ensure buildings will properly perform and reach their useful life “Keep-Up Costs”.

Service

The measure of service process, the maintenance quality of space and systems, and the customers opinion of service delivery.

Asset Value Change Operations Success



Three Phases for Continuous Improvement

PERFORMANCE

PERFORMANCE

DISCOVERY

PREDICTION• Base data

• Trends & Benchmarking• Vocabulary

• Facility Relationship

• Track performance vs.Best-in-class institutions

• Highlight progress towardsset goals

• Predicting capital needs• Understanding facility risk• Identifying future operating

budgets

ROPA Data Collection SnapshotBuilding Information • Building construction date

• Major building renovations• Building function (resident hall, athletic, etc.)• Building gross square footage (GSF), land acres• Locations served by central systems (heating, cooling, electrical)

Deferred Maintenance • Deferred maintenance assessment (in-house or contracted)

Capital & Operating Project List • Completed projects both operating and capital funds• New construction costs

Cam

pu

s P

rofi

le

Staffing Table • Department organizational chart• Distribution of trades, custodial & grounds staff by shop (including supervisors)

Work Order Report • Total number of requested and completed• Completed work orders by shop and type (Repair, PM, Project, etc.)

Energy Profile • Monthly utility cost and consumption by fuel type (Gas, Oil, Electric)• Primary generation equipment profile Including hours of operation

Fin

ance

Institutional Financial Statement • Balance Sheet and Operating Budget

Facilities Operating Budget • Operating Budget and Actual by department and line item.

Capital Budget • Recurring Capital budget (Plant fund, R&R account) and CapitalOp

era

tio

ns


Space ProfileWhat we collect and why

• Age profile

• Functional profile

• Technical complexity

• Density analysis

We Determine…

• Square footage

• Construction dates

• Renovation history

• Functional descriptions

• Utility connections

We Collect…

• How does my age profile impact facilities risk?

• How does my space profile affect daily service operations?

• Do I have the right mix of space to fulfill my mission?

• Do I have too much/little square footage?

• Can I afford the space I have?• How do the above findings

compare to peers?

We Answer…


Space Profile


Capital ProfileWhat we collect and why

• Target investment level

• Annual funding to target

• Maintenance deferral rate

• Capital investment profile

We Determine..

• Historical project spending

• Deferred maintenance assessment

• R&R project list

• Campus master plan

• New building construction costs

We Collect…

• How much “should” I invest each year?

• Does my past investment align with needs?

• What are conditions on my campus?

• Am I gaining or losing ground with respect to backlog?

• How do the above findings compare to peers?

We Answer…


Capital Profile


Operations ProfileWhat we collect and why

• Daily service/PM costs

• Staffing profile

• Supervisor coverage

• Work order performance

• Customer service profile

• Utility cost and consumption

We Determine..

• Facilities budgets

• Staffing and org chart

• Trade distribution

• Work order reporting

• Utility invoices/history

We Collect…

• Is my facilities budget allocated appropriately?

• Is there effective planned or preventative maintenance?

• Do I have sufficient staffing?• Is my team supervised effectively?• Are there savings opportunities?• How well served does the

community feel?• How do the above findings

compare to peers?

We Answer…


Operations Profile


Predictive Analysis to Reduce Facilities Risk

• Effectively sequence investments with an understanding of future capital requirements

• Curtail the growth of critical deferred maintenance

• Develop actions plans to lower the risk of system failures

• Communicate the operating and capital impact of the addition and/or demolition of campus facilities $0

$10

$20

$30

$40

$50

$60

Tota

l Do

llars

(M

illio

ns)

Current Need Renewal Need

Modernization & Infrastructure Projected Investment

10 Year Capital Forecast


Know the Cost Before You BuildModel Budget Scenarios with Cost Forecaster

ROPADatabase Metrics

CAPITALRENEWALREQUIREMENTS

ANNUALOPERATIONSNEEDS

NEW SPACEPROFILE

BUILDING SCENARIO1

2

Enter scenario(s) and basic construction/demo information

Models impact based on YOUR data

3 Use peer and best practice data to level set

4 Export data for budgetand presentations


Measure Performance for Continuous Improvement

My Campus

Peers

Best-in-classFalling short of peers and Best-in-class institutions

Discuss future goalsAnd areas of focus

Discovery process guides which are most important to your success…• Capital Investment?• Operating Budget?• Staffing?• Energy?• Service?• Work Order?• Space Management?

Set targets to achieve goals

Identify best-in-class institutions

Track performance


What to Expect as a Sightlines Member

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52

ROPA Annual Engagement TimelineData to knowledge in 18-20 weeks

Week Week Week Week Week Week Week Week Week Week Week Week Week

1 2 3 4 5 6 7 8 9 10 11 12 13

Cam

pu

s V

isit

- P

relim

inar

y P

rese

nta

tio

n

Finalize Data/

Modify

Presentation

Cam

pu

s V

isit

- F

Inal

Pre

sen

tati

on

Based on Your

Availability

Kickoff & Previsit

Data Collection

Data Analysis & Processing

Cam

pu

s V

isit

- D

ata

Co

llect

ion

Cam

pu

s V

isit

or

Web

Mee

tin

g -

Dat

a Q

ual

ific

atio

n

Pre

sen

tati

on

Data Revision

Five years of historical data collected for trending purposes

© 2017 Sightlines, LLC. All Rights Reserved.

Member PortalGet more from your data 24/7/365

Member Support• Informed with live notification to your data

Customized Access• Create customized dashboards featuring

the metrics most important to you• Seamlessly benchmark against 360 member

institutions

Perspective and Context• My Story feature presents Sightlines key

findings as an easy to digest narrative


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Thank you for your time.

@sightlinesllc

Sightlines

Sightlines360

https://www.linkedin.com/company-beta/1369115/

https://twitter.com/SightlinesLLC

Education

Doing More with Less: Solutions for Managing Facilities on a Limited Budget