1

Summary of Trends

The aging campus is driven by the need to renovate or replace 1960s and 70s

buildings, many of which were poorly constructed

To add to the problem, campuses have added new square footage to address

increasing enrollment that has now leveled off or is even in decline

The demand for both “catch up” on aging buildings and “keep up” of newer buildings

is much higher than the availability of capital funding

Therefore, backlogs continue to grow even though capital funding is finally back to

pre-recession levels

Flat operating budgets have not provided relief to the backlog problem

After some gains, energy consumption has leveled off; emissions have improved due

to fuel switching

In the face of these “bad news” trends, why have we not seen more building

failures and major facility problems on campuses?

Why the Roof Hasn’t Caved In

3

What are Campuses Doing to Manage Risk?

To keep the roof from caving in and building systems from failing

Better data to identify and manage the most critical

repair risks for campus.

Systems tend to outperform their statistical target.

Lower cost repairs to systems rather than full system

replacements have bought extra service time.

Because campuses are a collection of buildings –

the risk is diversified over the portfolio.

The functional obsolescence of space drives

investments that brings outside resources, especially

to space.

4

We Need to Make the Problem Smaller

Not all buildings are created equal, therefore they

should not be treated that way.

Use building portfolios – for operations and capital - to

make the problem smaller

Subdivide capital projects by issues of reliability,

safety/code, program, and asset preservation.

Create “balance” and “diversity” in all facility

investments to lower risks.

5

Time is On Our Side

Yes it is

What we’ve learned over the past 30 years …

fixing components rather than replacing entire systems,

that life cycle estimates are inherently conservative,

coordinating campus needs and projects can lower capital costs, and

functional obsolescence of space can bring capital resources to allocate for repairs

There is no reason to believe that these factors will change in the next 15 to 20 years. Therefore although we will need to act, we have time to manage the investments.

6

Make the Case for Resources

By controlling the things you can control

The old approach of defining needs in a way that makes the DM

problem bigger and then requesting money will not work.

Problem is too big to address in total – must break it down in size

and priority

Opportunities exist to… Lower Demands - Space Management

Make the Problem “Smaller” – Use Building Portfolio

Management

Sustain Impact of Finite Funding - Create Multi Year Plans

Mitigate Risk - Target Capital to Reliability, Safety/Code, and Critical

Asset Preservation Issues

Apply these actions to make the case for additional

funding and use savings to self-fund stewardship

Conclusion

8

Changing the Conversation

Strategies for success

Understand and communicate that not all buildings are created equal

Use building portfolios

Invest over time

Reallocate savings

9

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