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Capital Dollar Stewardship at NMSU
Transcript of Capital Dollar Stewardship at NMSU
We wanted to prepare a short series of briefings on stewardship of the scarce capital renewal dollars.
In particular, we want to discuss the new Building Repair and Renewal (BRR) process that was implemented this year.
To assess the campus facilities needs, we use the Facilities Condition Index as well as a number of engineering studies that provide hard data and benchmarks.
We have shown the Facilities Condition Index (FCI) before, and this information has been integrated into our facility management system.
The NMSU Strategy
Step 1: Technical Assessment
Integrate operational perspective
Step 2: Create building portfolios
Segment the backlog and tie projects to mission
Capital Renewal funding
Building Repair and Renewal Funds (BRR) are $5.27 million dollars per year
General Obligation Bonds average about $21-22 million every two years, or approximately $11 million per year
That means that approximately $16 million is available annually
The NMSU Strategy
Step 3: Develop Multi-Year plan
Create outcome based strategies by portfolio or by college
Step 4: Projects
Select projects that support Vision 2020, operations, and fiscal capacity
savings by project consolidation
Detailed reports by engineering specialists allows for -
Good data leads to good decisions; NMSU has completed a number of studies to identify and prioritize critical needs. This allows for additional expertise to be employed, heightens objectivity, and provides for better estimates of actual costs.
A multi-year BRR plan was developed using the studies and operational experience as a basis.
This was a different methodology than past practice; the new process was approved by the President, Provost, and Sr. Vice President for Administration and Finance, and then subsequently discussed with the President's Academic Council (PAC).
Zero Based 3 Year BRR Budget
Facilities Condition data as well as these studies were used to build a prioritized BRR plan. It also allowed for these priorities to be consolidated and aligned with our Capital Outlay plan.
When $11 million annual GOB and $5.2 million BRR can be combined effectively and strategically - funding approaches the $18.9 stewardship target
What can be done to stretch the dollars?
We have thoughts on this, of course; supplemental BRR was provided in 2006 as a way to "buy down" some of the infrastructure deferred maintenance. NMSU made good use of these funds by commissioning the Water System Master Plan and completing a number of projects.
Also, many states fund a percentage of capital renewal when the initial funding is approved in order to protect their investment. Montana does this.
New Mexico divides it's General Obligation Bonds across many entities. This next slide illustrates the impact on the $140 million bond issuance.
What else can be done to stretch the dollars?
Those aforementioned items are somewhat outside the scope of our control, but we believe that there is opportunity for a reduction in space. And, since the target for capital renewal stewardship funding is based on replacement value and thus correlates with space, lowering the gross square footage will correspondingly lower the asset renewal burden.
That leads to the question, "How much space does NMSU really need?" This presentation is meant to be an overview, so consequently we will present some of the data and issues that we hope will further the discussion.
This data from the APPA FPI is a few years old, but you can see that NMSU was about average in most space categories.
From this, you can see that NMSU had 224 GSF per FTE in 2011 - a little better than average for this group.
This is the 10 year average (the data from the previous slides is from 2011, the difference is in reporting definitions).
Best practices offer real solutions
Continuing to implement "best practices" offers real solutions
NMSU's approach of renovating existing space and removing space from service will have an immediate impact in reduced operating, maintenance, and stewardship costs.
graphic courtesy of Sightlines booklet
2014 Benchmarks, Best Practices, and Trends
There are a couple of discussion items with this topic.
First, the new active learning classrooms require more space.
The other big question is - does NMSU really have that much unused space?
We showed some 2011 APPA data, let's look at the most current data.
This slide shows the overall average for all institutions who reported to APPA, as well as the regional averages. I highlighted the Central and Rocky Mountain regions, those who are "most like us". Note that NMSU fares well.
As a cross check, we sorted by Carnegie Classification.
Even at the current enrollment and square footage, NMSU compares pretty well.
The data indicates that NMSU is not excessively overbuilt when compared to other institutions.
Doctoral / Research and Very High Research institutions both have more square feet per student than NMSU.
Our motto is, "in God we trust, all other need to bring data".
Data tells the story. While we must continue to pursue space efficiencies, NMSU is currently about average nationwide in space per student.
Future discussions will include Ad Astra data.
Everything we do ties back to this !
We also wanted to share what we think was a very good article -
This is a view from EC1 roof -
...maybe move that truck?
Pins / dowels
Order of magnitude
estimate for repairs
approximately $3 million
NMSU is all about Discovery!
the road to Discovery !
Landfill remediation $700k
91 elevators @ 1 mod / yr
= 91 year elevator cycle
Thank you !