CASE STUDY:UNIVERSITY OF DENVER

University of Denver Campus Profile

University of Denver is the oldest and largest private university in the Rocky Mountain region of the 

United States.

• Founded: 1864• Located: Denver, Colorado• Number of Buildings: 120• Total GSF: 4,710,000• Number of Students:  10,408

Policies and Strategies to Manage Facility Challenges

• Increase Stewardship

• Increase Planned Maintenance

• Define the backlog of deferred projects 

• Use building portfolios to define and manage capital investments

Strategy – Identify the Backlog

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

Millions

Identified Building Need Distribution by Building Portfolio and Priority

A (1‐3 years)B (4‐7 years)C (8‐15 years)

Total Need by Portfolio

A B C

A B C Total43,894,344$ 50,771,712$ 50,847,621$ 145,513,677$

Data in FY2007 dollars

Total Need ‐ $145.5 million

Strategy – Create a Funding Plan (1 of 2)

• A 5 year funding plan was created, repairs outside the 5 year period were not considered.

• Funding for repairs is based on a building’s classification, with funding for transitional buildings only on a “as needed” basis.

• Parking structure maintenance was budgeted for in the parking office budget, outside of facilities.

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

Legacy Millennium Transitional Parking/Infrastructure/Other

Millions

Summary – The $64M Investment Plan

Total Need Funding Plan

Strategy – Create a Funding Plan (2 of 2)Core Program

Total Infrastructure Improvements*

5-Year Investment Needs 64,000,000$ 48,000,000$ 16,000,000$

Required Annual Funding Level 12,800,000$ 9,600,000$ 3,200,000$

Sources: Annual Capital Renewal Funds: Facilities Management 2,750,000 2,750,000 - Provost - Renewal & Modernization 540,000 - 540,000 Residence 250,000 150,000 100,000

Annual One-Time Funds by Source: Year End Funds 2,500,000 2,500,000 - Unit Gainsharing Funds 2,560,000 - 2,560,000

Future-Year Budget Additions to Facilities 4,200,000 4,200,000 -

Total Sources 12,800,000$ 9,600,000$ 3,200,000$

•Funding at the targeted $12.8 million level was not achieved immediately, but built up to over a period of time.

•Not all the funding was achieved through the operating budget, some funding was taken from end of year dollars and other one-time funding.

•Funding for “Program Improvements” was assumed to come from individual units through their “gainshare” funds.

Strategy – Track Performance Relative to Plan (1 of 3)

$0

$5

$10

$15

$20

$25

$30

FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

Millions

Stewardship Funding by Type

Millennium Legacy Beneficial Transition Other* Rental

Stewardship Benchmark - $12,800,000

Strategy – Track Performance Relative to Plan (2 of 3)

$0

$5

$10

$15

$20

$25

$30

FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

Millions

Stewardship by Portfolio Type

IFP Expenditures Additional Expenditures

Stewardship Benchmark - $12,800,000

New Buildings & Renovations Set Stage for Building Repairs (3 of 3)

• Capital expenditures for new construction and reinvestment have exceeded the stewardship standard for all years shown.

• The new buildings add additional square footage to the campus and their technical complexity makes them more expensive buildings to maintain than the buildings that they replaced. As these buildings age they will put increasing demands on the Facility investment needs of the University.

• In the past 13 years, the University has spent over $339 million on new construction and reinvested another $144 million in existing buildings.

• The $27 million that was reinvested into buildings in FY 12 is the highest amount in the past 13 years. This is due in large part to the $12.6 million that was spent on the Academic Commons project.

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

$90,000,000

$100,000,000

FY00FY01FY02FY03FY04FY05FY06FY07FY08FY09FY10FY11FY12

Reinvestment New Construction

Capital Investment by Fiscal Year

Stewardship benchmark $12,800,000

A Significant Shift in Campus Age Using Moderate Balance Sheet Leverage

1995 2012Total Square Footage 2,825,569 3,646,539Greater than 75 Years 178,387 189,56341-75 Years 855,701 1,192,05526-40 Years 1,217,808 415,51010-25 Years 555,387 1,056,175Less than 10 years 18,286 793,236

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Squar

e Fo

ota

ge

Thousa

nds

Campus Square Footage by Age

21% of campus under 25 years old

51% of campus under 25 years old

Results – A Legacy of Funding not Deferral (1 of 2)

 $‐

 $2,000

 $4,000

 $6,000

 $8,000

 $10,000

 $12,000

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY2016 FY2017 FY2018

Integrated Facilities Plan for Legacy/Beneficial and Millennium Buildings

Millennium Buildings: Core Sinking Fund Addition Millennium Buildings: Spending for Core Needs

Legacy/Beneficial Buildings: Spending for Core Needs Base Budget plus Year End Funding for Core Needs

Results – A Legacy of Funding not Deferral (2 of 2)

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,0002013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

2041

2042

2043

2044

2045

2046

2047

2048

2049

2050

2051

2052

2053

2054

2055

2056

2057

2058

2059

2060

Thou

sand

s

Forecasted Millennium Building Expenses

Annualized investment $3.5 Million