physical plant - university of manitoba plant currently has 375 staff of which physical plant...

October 2006 1

Physical PlantPhysical PlantAnticipating the Anticipating the

Next DecadeNext Decade

October 2006 2

Physical Plant Physical Plant Staff DemographicsStaff Demographics

Physical Plant currently has 375 staff of which Physical Plant currently has 375 staff of which 25 are Assistant Managers or Managers and 25 are Assistant Managers or Managers and including the Director and Assist. Directorincluding the Director and Assist. Director

Staff DemographicsStaff Demographics

October 2006 3


35

22

33

70

79

68

62

26

7

0

10

20

30

40

50

60

70

80

24 and under 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65 and over

ALL STAFFALL STAFF

October 2006 4


57%

43%

ALL STAFFALL STAFF50 and Over50 and Over

50 and Over50 and Over(163)(163)

49 and Under49 and Under(212)(212)

October 2006 5


35%

65%

ALL STAFFALL STAFF45 and Over45 and Over

45 and over45 and over(242)(242)

44 and under44 and under(133)(133)

October 2006 6


40%

60%

SUPERVISORY STAFFSUPERVISORY STAFF50 and Over50 and Over



October 2006 7


32%

68%

SUPERVISORY STAFFSUPERVISORY STAFF45 and Over45 and Over



October 2006 8

Physical Plant Physical Plant Environmental Issues and RegulationsEnvironmental Issues and Regulations

Environmental IssuesEnvironmental Issuesand Regulationsand Regulations

Sustainable CampusSustainable CampusReRe--thinking our waysthinking our ways

October 2006 9


Green BuildingGreen BuildingProvProv. Of Manitoba. Of Manitoba’’s green building policy s green building policy ––LEED silverLEED silver

Construction materialsConstruction materialsDemolition wasteDemolition wasteDesign for water and energy conservationDesign for water and energy conservationTransportation and parkingTransportation and parkingGrounds managementGrounds managementCaretaking services Caretaking services

October 2006 10


Energy/Climate ChangeEnergy/Climate Change

Increase efficiency and maximize conservationIncrease efficiency and maximize conservation

Displace fossil fuels with renewable, alternative Displace fossil fuels with renewable, alternative energy and/or carbon offsetsenergy and/or carbon offsets

October 2006 11


Water Water –– Quality/QuantityQuality/Quantity

Water conserving fixturesWater conserving fixturesStorm water managementStorm water managementGrey water managementGrey water management

Managing water for pollution and Managing water for pollution and conservationconservation

October 2006 12


University VehiclesUniversity Vehicles

Hybrid vehicles (regenerative braking)Hybrid vehicles (regenerative braking)PlugPlug--in hybrid electric vehicles (PHEV)in hybrid electric vehicles (PHEV)Flex fuel vehicles (E85)Flex fuel vehicles (E85)Ultra low Ultra low SulphurSulphur diesel (ULSD)diesel (ULSD)

Alternative fuel vehiclesAlternative fuel vehicles

October 2006 13


WasteWaste PreventionPrevention

More than recycling cardboard, office paper and More than recycling cardboard, office paper and beverage containers.beverage containers.Two areas of increasing interest:Two areas of increasing interest:

Organic waste (food and yard waste) and electronic Organic waste (food and yard waste) and electronic waste (ewaste (e--waste).waste).EE--waste regulations are expected in the next couple waste regulations are expected in the next couple

of years.of years.Construction/demolition waste also a growing Construction/demolition waste also a growing concern.concern.

October 2006 14


Grounds ManagementGrounds Management

Growing concern over cosmetic use of Growing concern over cosmetic use of pesticides.pesticides.

Banned in Brandon, Halifax, Toronto.Banned in Brandon, Halifax, Toronto.Trend towards naturalized landscaping.Trend towards naturalized landscaping.

Drought tolerant.Drought tolerant.Native prairie plants.Native prairie plants.Organic fertilizers.Organic fertilizers.

Integrated pest management planningIntegrated pest management planning

October 2006 15


Planning/ReportingPlanning/Reporting

Increasing trend towards integrating sustainability into Increasing trend towards integrating sustainability into decisiondecision--making and campus planningmaking and campus planningState of the campus environment reporting to establishState of the campus environment reporting to establishSustainability base line Sustainability base line

Evaluation and monitoring tool for continual progressEvaluation and monitoring tool for continual progress

Sustainable campus planningSustainable campus planning

October 2006 16


Additional IssuesAdditional Issuesand Regulationsand Regulations

Safety Safety ““Bill CBill C--4545””TrainingTrainingAsbestos Asbestos MouldMouldGovGov’’tt regulationsregulations

FireFire--safetysafetyBackflow preventionBackflow prevention

October 2006 17

Physical Plant Physical Plant Deferred Maintenance and Renewal ForecastDeferred Maintenance and Renewal Forecast

Deferred Deferred Maintenance and Maintenance and Renewal ForecastRenewal Forecast

October 2006 18


0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

1911

1914

1917

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1926

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1932

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1944

1947

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1995

1998

2001

2004

(Sq.

Ft.)

New Building Area by YearNew Building Area by Year

October 2006 19


1956 – 19723.3 million sq. ft55% of Campus

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

1911

1914

1917

1920

1923

1926

1929

1932

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1971

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(Sq.

Ft.)


October 2006 20




0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

1911

1914

1917

1920

1923

1926

1929

1932

1935

1938

1941

1944

1947

1950

1953

1956

1959

1962

1965

1968

1971

1974

1977

1980

1983

1986

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2004

(Sq.

Ft.)


October 2006 21


Renewal ForecastRenewal Forecast

Over 72% of campus is over 35 years oldOver 72% of campus is over 35 years oldThe average lifecycle of a buildings components is The average lifecycle of a buildings components is about 30 yearsabout 30 yearsSignificantly, 55% of campus has reached a period Significantly, 55% of campus has reached a period of extensive/expensive building component of extensive/expensive building component renewal requirementsrenewal requirements

October 2006 22


Deferred MaintenanceDeferred Maintenance

Keeping up with maintenance, upgrading , and Keeping up with maintenance, upgrading , and repair is going to be a major challengerepair is going to be a major challengeLimited funds allocated to meet current and Limited funds allocated to meet current and future requirements will result in maintenance future requirements will result in maintenance and repair work being deferred and the backlog and repair work being deferred and the backlog of deferred maintenance buildsof deferred maintenance builds

October 2006 23


The University of Manitoba has an estimated The University of Manitoba has an estimated Deferred Maintenance Backlog of $125.7 million Deferred Maintenance Backlog of $125.7 million in buildings and $186 million when including in buildings and $186 million when including Campus infrastructure.Campus infrastructure.

October 2006 24


Facilities Asset ManagementFacilities Asset Management

In 1980 a methodology was developed at Stanford In 1980 a methodology was developed at Stanford University for predicting facilities renewal and replacement University for predicting facilities renewal and replacement requirements based on liferequirements based on life--cycles and costs of building cycles and costs of building subsub--systems.systems.The predictive models from this study were reviewed in The predictive models from this study were reviewed in 1997 and found to be within 2% of actual.1997 and found to be within 2% of actual.In most cases differences of ten to twenty percent are to In most cases differences of ten to twenty percent are to be expected with a reasonable effort.be expected with a reasonable effort.The similarity of the predictions and actual outcomes The similarity of the predictions and actual outcomes support the reasonableness and viability of cost modeling support the reasonableness and viability of cost modeling as a forecasting tool.as a forecasting tool.

October 2006 25


VFA was founded in 1998 as a spinVFA was founded in 1998 as a spin--off of off of VanderweilVanderweilEngineers, a BostonEngineers, a Boston--based construction and based construction and engineering firm. The company initially offered facility engineering firm. The company initially offered facility assessment services to organizations with large real assessment services to organizations with large real estate portfolios.estate portfolios.To date, VFA has performed assessments of more than To date, VFA has performed assessments of more than 100,000 properties, totaling over more than two billion 100,000 properties, totaling over more than two billion square feet of space. square feet of space. VFAVFA’’ss flagship software, flagship software, VFA.VFA.facilityfacility, is used to manage these real estate assets. , is used to manage these real estate assets.

October 2006 26


During the summer of 2005 a Facilities During the summer of 2005 a Facilities Condition Assessment was performed on the Condition Assessment was performed on the University of Manitoba by VFA Inc. . It University of Manitoba by VFA Inc. . It consisted of a physical survey of buildings by consisted of a physical survey of buildings by qualified team of engineers and architects.qualified team of engineers and architects.

October 2006 27


Determined the current effective age of each Determined the current effective age of each buildings components and systemsbuildings components and systems

Constructed cost models for each buildingConstructed cost models for each building

Identified deferred maintenance backlogIdentified deferred maintenance backlog

October 2006 28


Data entered into Facilities Asset Management Data entered into Facilities Asset Management software (software (VFAVFA.facility.facility).).Capable of forecasting current and future Capable of forecasting current and future financial requirements.financial requirements.Maintenance Backlog, Building Replacement Maintenance Backlog, Building Replacement Value, Cost Models, and System Conditions can Value, Cost Models, and System Conditions can be examined from different perspectives to gain be examined from different perspectives to gain understanding of facilities capital requirements.understanding of facilities capital requirements.

October 2006 29


One of many data points generated by Facilities One of many data points generated by Facilities Asset Management software is the Facilities Asset Management software is the Facilities Condition Index (FCI) .Condition Index (FCI) .FCI is a quantitative measure useful in FCI is a quantitative measure useful in benchmarking.benchmarking.FCI is an internationally recognized measure of the FCI is an internationally recognized measure of the amount of deferred maintenance.amount of deferred maintenance.This metric is used by numerous institutions across This metric is used by numerous institutions across North America as part of their capital planning North America as part of their capital planning process.process.

October 2006 30


Facilities Condition IndexFacilities Condition Index( FCI )( FCI )

Calculated by dividing the sum of the Deferred Calculated by dividing the sum of the Deferred Maintenance by the current replacement value Maintenance by the current replacement value (CRV) of the facility.(CRV) of the facility.

October 2006 31


Deferred MaintenanceDeferred Maintenance

Current Replacement ValueCurrent Replacement ValueFCI =FCI =

October 2006 32


FCI =FCI =$ 125.7 million *$ 125.7 million *

$ 909.0 million$ 909.0 million

* Deferred Maintenance for buildings only, * Deferred Maintenance for buildings only, $ 186 million when including infrastructure.$ 186 million when including infrastructure.

October 2006 33


FCI =FCI = 0.140.14

October 2006 34


While property owners/managers can establish While property owners/managers can establish independent standards, the following reference independent standards, the following reference is generally accepted and promoted by APPA, is generally accepted and promoted by APPA, NACUBO, IFMA, and NASFA. NACUBO, IFMA, and NASFA.

October 2006 35


October 2006 36


University of ManitobaUniversity of ManitobaFacilities Condition IndexFacilities Condition Index

0.14 or 14%0.14 or 14%

October 2006 37


FCIFCI # of# of RatingRating (Sq. Ft.)(Sq. Ft.)

RangeRange BuildingsBuildings

.00 < .05.00 < .05 3232 Good Good (1.40 mil)(1.40 mil)

.05 < .10.05 < .10 1111 Fair Fair (0.38 mil)(0.38 mil)

.10 < .15.10 < .15 2020

.15 < .20.15 < .20 16 16 (63 or 53%)(63 or 53%) Poor Poor (3.78 mil)(3.78 mil)

.20 < .25.20 < .25 1515

.25 < .30.25 < .30 1212

.30 +.30 + 1313 (11%)(11%) Critical Critical (0.34 mil)(0.34 mil)

119119

October 2006 38


ANNUAL RENEWAL FORECASTANNUAL RENEWAL FORECAST

$0

$20

$40

$60

$80

$100

$120

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Mill

ions

October 2006 39


0

1

2

3

4

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6

7

8

9

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20260

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Fund

ing

in m

illion

s

FCI

CURRENT FUNDING AT 0.34%CURRENT FUNDING AT 0.34%(3 MILLION IN 2006)(3 MILLION IN 2006)

October 2006 40


0

10

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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Mill

ions

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

Fund

ing

in m

illion

s

FCI

FUNDING AT 3%FUNDING AT 3%

October 2006 41


0

20

40

60

80

100

120

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20260

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

0.18

0.2

FUNDING TO MAINTAINFUNDING TO MAINTAIN

Fund

ing

in m

illion

s

FCI

October 2006 42


FUNDING TO TARGETFUNDING TO TARGET5% FCI in 10 years5% FCI in 10 years

0

20

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80

100

120

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20260

0.02

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0.06

0.08

0.1

0.12

0.14

0.16

0.18

0.2

Fund

ing

in m

illion

s

FCI

October 2006 43


Starting Net Present Value Ending

Funding Option Backlog FCI Applied Funding Ending Backlog Total Funding Deferred FCI

Requirement Maintenance

Penalty

Pay as you go 158,505,269 0.1744 665,894,848 0 665,894,848 0 0.0000

Funding to reduce FCI to 158,505,269 0.1744 651,116,928 45,427,683 696,544,611 30,649,763 0.0500

5% in 10 years

Funding to maintain 158, 505,269 0.1744 570,791,744 158,505,269 729,297,013 63,402,165 0.1744

constant FCI

3% of the Current 158,505,269 0.1744 545,406,656 271,389,655 816,796,311 150,901,463 0.2986

Replacement Value

0.34% of the Current 158,505,269 0.1744 61,812,736 785,848,176 847,660,912 181,766,064 0.8645

Replacement Value

FUNDING COMPARISON

20 Years

October 2006 44

Physical Plant Physical Plant Anticipating the Next DecadeAnticipating the Next Decade

ConclusionConclusion

QuestionsQuestions

physical plant - university of manitoba plant currently has 375 staff of which physical plant...

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