2011 board of education workshop physical plant … · 6/2/2011 · budget flexibility ends 2015...
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Proposition-S ICOC SubcommitteeConstruction
June 2, 2011, Exhibit 5
PHYSICAL PLANT OPERATIONS2011 Board of Education Workshop
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AGENDA� Physical Plant Operations Overview
� Supporting the Educational Environment� Maintenance Work Definitions
� Focus: Maintenance Plans� Maintenance Requirement vs. Available Funding� District Facility Condition
Cost: Independent Citizens Oversight Committee Review
June 2, 2011
� Cost: Independent Citizens Oversight Committee Review � Focus: Funding
� Types of Funding vs. Operations� Current Challenges and Proposed Approach� Maintenance Plan Vetted with Independent Citizens
Oversight Committee� Discussion
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“Researchers have repeatedly found a difference of 5-17 percentile points between achievement of students in poor buildings and students in above-standard buildings, when the socioeconomic status of students is controlled.”
FACILITIES CONTRIBUTION TO EDUCATION
June 2, 2011
– Glen I. Earthman, “School Facilities Conditions and Student Academic Achievement.” Report prepared for Williams v. State of California, UCLA 2002, pp. 8-9
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MAINTENANCE PLANNING AND REPAIR STAFF 10/11
� 14.8 Million Square Feet of Buildings
� 2,600 Acres of District Property
� $38 Million for Staff and Repair Supplies
June 2, 2011
� $38 Million for Staff and Repair Supplies
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GROUNDS MAINTENANCE
� 2,600 Developed Acres� 21 Million Square Feet
of Asphalt
June 2, 2011
Seal Coat Asphalt Overlay
Dig and Replace Trip Hazards
Storm Drains Fencing
Line Stripe Sidewalks
Grading Irrigation Systems
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BUILDING MAINTENANCE
� 1509 Permanent Buildings, 12,425,428 Square FeetAverage Age 39 Years
� 1926 Portable Buildings, 1,881,731 Square Feet
June 2, 2011
1,881,731 Square FeetAverage Age 48 Years
Paint Audio Visual Systems
Heating and Cooling Lighting & Power
Fire and Intrusion Alarms Plumbing Systems
Doors and Locks Roofing
Time & Signal systems Pest Control
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MAINTENANCE PLANNING
� Maintenance Planning� Support 285 Tradesmen� Coordinate with FPC/Prop S � Maintenance Contracts
June 2, 2011
� Maintenance Contracts
Planning Major Repair and Replacement Plan
Estimating Repair and Replacement Plan
Inspection Priority Projects
Work Reception Capital Improvement
Work Coordination/Scheduling Preventive Maintenance Planning
Williams/SARC Inspection Facility Condition Assessment
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CAPITAL WORKTERMS
Capital Improvements (CI):
Major Repair & Replacement (MRR):
DEFINITIONS
Programmatic upgrades to meet educational needs, district programs and curriculum, and significantchange of systems technology (i.e., replacement ofheating units with package air conditioning systems, andassociated new energy efficient windows and buildinginsulation, etc.).
Replacements and upgrades of systems, such as new roofsystem, building enclosures, etc. Often considered a part
June 2, 2011
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Major Repair & Replacement (MRR): system, building enclosures, etc. Often considered a partof modernization or renovation of a building, generallywith a life expectancy of 20 or more years.
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MAINTENANCE WORKTERMS
Repair & Replacement (RR):
Regular Maintenance (RM):
Preventive Maintenance (PM):
DEFINITIONS
Repair and/or replacement of items generally with a life expectancy of less than 20 years.
Minor repairs, as reported from sites, resulting fromnormal wear and tear on buildings such as toilets, locks,light switches, etc.
Maintenance such as inspections and lubrications of systems designed to prevent deterioration into disrepair.
June 2, 2011
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SCHOOL FACILITY METRICS
� Comparative Industry Funding Metrics
� 2% – 4% of Current Replacement Value (CRV)� SDUSD CRV $4.9B: $98M to $196M Annually
� Portolan Metrics
June 2, 2011
� Portolan Metrics� $4 – $5 Per Square Foot: $59.2M to $74M� $400 – $500 per Student: $54.1M to $67.6M
� State of California� 3% of General Fund allocated to Routine Restricted
Maintenance Account: $34M � Currently not required until 2015
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FACILITY CONDITION ASSESSEMENT
� Leverage extensive Williams/SARC inspections to assess facilities annually�General review focused on service life, maint. history
� Incorporate AECOM FCA’s into PPO’s CMMS�Detailed review focused on bond term
June 2, 2011
�Detailed review focused on bond term
� Leveraging trade activity with state of the art tools for assessing less obvious deficiencies�Remote cameras� Infrared technology for roofs, electrical, HVAC
Note: The above actions shift calculated deficiency values to literal values
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DISTRICT FACILITY CONDITION� To calculate the Facility Condition there is a
industry standard of a ratio of total cost of repairs needed, divided by the current replacement value (CRV) of the district.
� Here is the current district calculation:
June 2, 2011
Needed Repairs: $750MCRV: $4.9B
= 15.3%
Good Fair Poor
0% 5% 10%
4/1/2011
2018 GoalEstablished 2008
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DISTRICT FACILITY CONDITION: CURRENT
12.00%
14.00%
16.00%
18.00%Facility Condition Index
Increase in CRV
Go
od
Fai
r P
oo
r
June 2, 2011
13
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2008 Plan Actual FCI Projected
$136,682,632 Difference
Go
od
Fai
r
By delaying Prop S contribution, it costs more to achieve our FCI goal
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MAINTENANCE WORK TYPES:APPROPRIATE FUNDING FOR WORK
Capital Funds for Capital Projects:
Capital Improvements (CI):Major Repair & Replacement (MRR): Repair & Replacement (RR):
Deferred Maintenance FundProposition S Bond Fund
Routine Restricted Maintenance Account:
Regular Maintenance (RM): Preventive Maintenance (PM):Repair & Replacement (RR):
General Fund
June 2, 2011
Proposition S Bond FundRedevelopment FundState School Facilities FundDeveloper Fee FundProperty Management Fund
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THE CHALLENGE: FUNDING� Insufficient Funding for Regular & Preventive
Maintenance in General Fund� Long Term Funding of PPO
� Budget Flexibility Ends 2015� Resume 3% General Fund Contribution to Routine Restricted
Maintenance Account (RRMA) � Approximately $34M
June 2, 2011
Approximately $34M� State School Facilities Fund Depleted
� Prop S $50M Annual Contribution to MRR Has Been Delayed until FY 13/14� Yet buildings will not slow down deterioration and original
FCI goal less likely to be obtained� In FY 13/14 SSFF Funds Depleted� Other One-time Funds Also Depleted
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2008 MAINTENANCE PLAN VS. 2011 EXECUTION
14%
16%
42%
7%
2011 Execution (38.0M)
16% Capital
Improvements
15% Routine
Maintenance
9% Preventative
Maintenance
2008 Plan (91.2M)
June 2, 2011
16
21%
42%
Work Category 2008 Plan 2011 Execution
Capital Improvements 14.3 5.5
Major Repair & Replacement 35.8 6.0
Repair & Replacement 19.0 8.0
Routine Maintenance 14.1 16.0
Preventative Maintenance 8.0 2.5
Total: 91.2 38.0
39% Major Repair
& Replacement21% Repair &
Replacement
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PPO BUDGET & EXPENSE TRANSFER PLANFISCAL YEAR 2011/12
$30
$35
$40
$45
$50 GF Restr Maint $12M
SSFF $25M
Prop S $3M
Prop Mgmt $3M
General Fund
June 2, 2011
$0
$5
$10
$15
$20
$25
As Budgeted As Funded
Prop Mgmt $3M
Dev Fees $2M
CCDC $1.4M
Othr Misc $1.2M
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General Fund
Work Order Expense Transfer
State School Facilities Fund
Prop S
Property MgmtDeveloper Fees
Total - $47.6 Million
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PPO MAINTENANCE EXPENDITURE HISTORY
$40
$50
$60
$70 Restricted Maint GFSecure our SchoolLiability InsuranceMesa College ConstrRedevelopment AgencyAdult EdState PreschoolCopley Fund
June 2, 2011
18
$0
$10
$20
$30
$40
2005 2006 2007 2008 2009 2010 2011
Copley FundChild DevelopmentProp ManagementProp InsuranceCafeteria FundProp SProp MMDeveloper FeesDeferred MaintenanceState School Facil Fund
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PPO BUDGET PROJECTIONSFISCAL YEARS 2012 - 2014
$35
$40
$45
$50 GF Restr Maint
SSFF
Prop S
June 2, 2011
19
$0
$5
$10
$15
$20
$25
$30
2011/12 2012/13 2013/14
Prop Mgmt
Dev Fees
CCDC
Othr Misc
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STATE SCHOOL FACILITIES FUND
200
250
300
350
400
MRR/RR Reserve
SSFF Fund W/O Reserve
PPO Expenditures
Non-PPO Expenditures
June 2, 2011
20
2.821.4
27
28.9
26.4
10 12.75
2025
32.25
00
50
100
150
FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15
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STATE SCHOOL FACILITIES FUND
25
20
25
32.25
15
20
25
30
35
June 2, 2011
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�MRR/RR Funding Plan is Budgeted for 25M Annually FY10 through FY13�MRR/RR Work Plan will allow extension of these funds until FY14 �Work originally planned (needed) in FY10 through FY13 will be completed in FY14
0
10
12.75
00
5
10
15
FY 10 FY 11 FY 12 FY 13 FY 14 FY 15
PPO MRR/RR Funding Plan as Budgeted
PPO MRR/RR Work Forecast as Planned
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FACILITIES CONTRIBUTION TO EDUCATION
“Researchers have repeatedly found a difference of 5-17 percentile points between achievement of students in poor buildings and students in above-standard buildings, when the socioeconomic status of students is controlled.”
June 2, 2011
is controlled.”
– Glen I. Earthman, “School Facilities Conditions and Student Academic Achievement.” Report prepared for Williams v. State of California, UCLA 2002, pp. 8-9
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RECOMMENDATIONS:
� Approve the SSFF MRR reserve fund� Support the 2011/2012 Maintenance Budget
as presented� Support 2015 Maintenance Funding at 3% of
June 2, 2011
� Support 2015 Maintenance Funding at 3% of the General Fund for the Routine Restricted Maintenance Account, $34M
� Fund Annual Maintenance Plan per 2008 recommendations, $91.2M
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