facilities management & planning - lane community college · lane community college, 2/28/2013...

FacilitiesManagementandPlanningOrganizationalReview

PhaseIReportLaneCommunityCollegeMarch4,2013

ContentsExecutiveSummary........................................................................................................................1OrganizationalReviewBackgroundandPurpose...........................................................................3TopicI:DepartmentOverview.......................................................................................................4

I.A.:Values..............................................................................................................................4

I.B.:StrategicAlignment.........................................................................................................4

I.C.:StakeholdersandRelationships.......................................................................................5

I.D.:StructureandStaffing......................................................................................................5TopicII:FinancialStructure............................................................................................................8

II.A.:Resources........................................................................................................................8

II.B:FundBalances................................................................................................................10

II.C.:Expenditures.................................................................................................................11TopicIII:PlanningProcesses.........................................................................................................16TopicIV:Trends&OperatingEnvironment..................................................................................17TopicV:KeyPerformanceIndicators...........................................................................................21TopicVI:CurrentYearOperations&Budget................................................................................22AppendixA:OrganizationChart...................................................................................................28

AppendixB:MandatoryExpenditureAllocations........................................................................29

AppendixC:SpecializedSupportServicesCrewAnalysis.............................................................31

BaseYearNote:You’llfindfiscalyear2008usedasabaseyearthroughoutthetablesandschedules.Thisyearwasselectedinordertobeabletoanalyzefivecompletedyearsoffinancialdata,notbecause2008wasnecessarilyanexemplaryyeartobenchmark.Theteampulledindatafrom2005,2006,and2007,andfoundthatusinganyofthesepresentedvirtuallyidenticaltrendinformation.

LaneCommunityCollege,2/28/2013 1

ExecutiveSummary

Consultant’sNote:

Overthecourseofmyworkwiththeorganizationalreviewteamoverthepasttwomonths,IhavedeepenedmyunderstandingofthescopeandcomplexityoftheworkofFacilitiesManagementandPlanningandtherealchallengespresentedbythedynamicenvironmentinwhichtheyoperate.Iappreciatethecommitmentandeffortofreviewteammembersinobjectivelyandsystematicallypresentingtheissuesandopportunitiesbeforeus.

~JenniferSteele,BusinessAnalyst

TheobjectiveofPhaseIofthereviewprocessisto“reviewcurrentyearbudgets,expendituresandoperatingandprojectplansforkeyorganizationalunitsinFacilitiesManagementandPlanning”.WefocusedourscopeofworkonGeneralFundFMPOperationsandFundIVPlanning,MaintenanceandCapitalImprovement,andwilladdressBondandotherFundIVworkinPhaseII.

ItbecameclearearlyonthatwecouldnotmeaningfullyunderstandFMP’sfinancialsituationwithoutdevelopingacommonunderstandingofitsstructures,systemsandoperatingenvironment.Asyou’llseeinthefollowingPhaseIreport,theteamhasbeenbuildingthisframeworkinparallelwithourfinancialanalysis.WearewellpositionedforPhaseIIofourwork,wherewewillputthesepiecestogethertodevelopandrecommendstructuresandsystemstooptimallysupportthedivisionintothefuture.

Theinformationandnarrativeinthisinterimreportreflectthereviewteam’scurrentdataandunderstanding,whichgrowsanddeepensonadailybasis.ThePhaseIIreportwillreflecttheevolutionofourknowledge.

CurrentYearBudgetStatus

Aspresentedonpages25&27,FMPispositionedandpreparedtostaywithinitsGeneralFundandFundIVPlanning,MaintenanceandCapitalImprovementbudgetsforFY2013.

Itisimportanttonotethatthisisnotanindicationthatcurrentresourceallocationstructuresarerationallyoptimized,aspresentedintheissuesboxonpage9;itisratherareflectionofFMPleadership’scommitmenttoworkingwithinexistingresourceconstraintsasthereviewteamdevelopslonger-term,strategicresourcestructurerecommendations.

TrendsandOperatingEnvironment

FMPisoperatinginanincreasinglydynamicandchallengingenvironment.AsthereviewteamembarksonPhaseII,theissues,opportunities,andconstraintspresentedonpages17-20willfactorheavilyintoouranalysisandrecommendations.


EmergingThemes

Theteamhaspresentedemergingissuesandopportunities(framedasPhaseIIactionitems),highlightedrespectivelyingoldandbluethroughoutthereport.Thesecanbesummarizedintothefollowinginterrelatedthemes:

• HistoricalresourceandorganizationalstructuresareincreasinglydisconnectedfromFMP’scurrentoperatingstructure.

• Expendituresinsomeareasandexpenditurecategoriesareincreasingatratesthatareunsustainablewithincurrentresourcelevels.

• Reporting,trackingandmanagementtoolsareinsufficientforthecomplexityanddynamicnatureofFMPwork.

• Planninganddecision-makingprocessesandtoolsaren’tclearlyintegratedacrossthespectrumofFMPwork.

NextSteps

DuringPhaseII,thereviewteamwillfocusontheactionitemspresentedinthisreport,inadditiontoexpandingourscopeofreviewtoincludeBondandFundIVrestrictedfunds.OurinitialtimelinewastosubmitaninterimPhaseIIreportonMarch29,2013andafinal,comprehensivereviewreportonApril30,2013.Werequestthesedeadlinesbeextendedtoallowustimeforproperconsideration,developmentandengagementwithstakeholdersasfollows:

April19,2013:PhaseIIInterimReport

May31,2013:FinalReport


OrganizationalReviewBackgroundandPurpose

InJanuary2013,PresidentSpildecommissionedanorganizationalreviewofthecollege’sFacilitiesManagementandPlanning(FMP)department.Thisreviewispartofanongoingefforttobuildstrategicplanningcapacityatthedivisionlevelandtodevelopsystemsandstructuresthatsupportevidence-informeddecisionmaking,productivity,andoptimalresourceusagewithinexistingfundinglevels.Duringthefour-monthreviewprocess,consultantsKayMalmbergandJenniferSteelewillbringtheirrespectivefinancialandorganizationaldevelopmentexpertisetosupportFMPadministratorsandstaffindevelopingstrategiesandapproachesforsustainablyoptimizingadministrativestructures,systemsandoperations.PrimaryObjectives:PhaseI:• Reviewcurrentyearbudgets,expenditures,andoperatingandprojectplansforkeyorganizationalunits

PhaseII:• DevelopcommonunderstandingofFMPplanning,operatingandfinancialstructures• Developeffectivetrackingandcommunicationsystemsandprocesses• Ensurefinancialstructuresandcontrolsaresound,sustainableandalignedwithplanningefforts• DeveloprecommendedstrategiesforcontinuousoptimizationofdepartmentresourcesApproach:Thereviewteamistakingasystemsthinkingapproachtothiswork,responsivelyaddressingimmediateneedsandconcerns,whileinvestingoureffortsandbestthinkingingeneratinglasting,structuralsolutions.StartingwithaconveningmeetingJanuary8,2013,consultantsaremeetingweeklywithprojectparticipantsandotherstakeholdersasappropriate,drawingupontheknowledge,expertiseandworkexperienceofFMPstaffandsubjectmatterexperts,inadditiontohistoricalplanningandreviewdocuments.Reports,keyfindingsandrecommendationswillevolvethroughaniterativeprocessofinquiryandanalysisandpresentedtoPresidentSpildeinaPhaseIReport,PhaseIIInterimReport,andFinalReport.ReviewTeam:KayMalmberg,BudgetAnalyst;JenniferSteele,BusinessAnalyst;DaveWillis,Director,FacilitiesManagement&Planning;RussPierson,ProjectCoordinator,FacilitiesManagement&Planning;RoseEllis,BudgetManager;DennisCarr,ExecutiveDirector,HumanResources;GregMorgan,ChiefFinanceOfficer


TopicI:DepartmentOverviewFacilitiesManagementandPlanningisoneofthelargestandmostcomplexdivisionsatthecollege.Eightdepartments—FMPOfficeandAdministrative,BondandCapitalConstruction,Sustainability,MaintenanceTrades,Grounds,ParkingandTransportation,CustodialServices,andGeneralServices—providearangeofservicesthatinclude:• Campusmasterplanning• Capitalconstruction• Carpentryservices• Controlsystemsmanagement• Custodialservices• Electricalsystemsserviceandmaintenance• HVACservices• Indoorenvironmentalquality• LTDbuspassprogramadministration

• Paintingandwayfindingservices• Landscapingandgroundsmaintenance• Motorpoolandvehiclemaintenanceandservices

• Planning,designandconstruction• Plumbingmaintenance• Wastewatertreatmentoperationsandmaintenance

• UtilitiesandenergymanagementThedivisionemploysa54.8full-time,14.6part-time,and5.6studentfull-time-equivalentFTE,supporting1.4millionsquarefeetofbuildingsandstructuresatthemaincampus,downtowncampus,CottageGroveandFlorencecampuses,andEugeneairport.FMP’sannualGeneralFundoperatingbudgetis$7.7million.ItsCapitalProjectsFundbudgetof$47.4millionincludes$44.3millioninbondfunding.I.A.Values

FacilitiesManagementandPlanningstaffpromoteanorganizationalworkethicthatcreatesaclimateofcaring,buildsacollaborativeorganization,developsinspiredleadership,focusesoncontinuouslearning,andpromotescommonvalues:• Sustainhighexpectationsforwell-maintainedfacilities,buildingsystems,andcampusgrounds;• Conductbusinessethicallyandwiththehighestlevelofintegritywhileshowingduerespectforthosewithwhomwework,partner,andcontract;

• Spendresourceswiselyandresponsiblywhilestrivingforthebestvaluepossible;• Adheretoallapplicablecodes,regulationsandstatutesinourdailyworkandprovideasafe,secure,andhealthyworkingenvironmentforall;

• Beagoodneighborinthecommunityandsetgoodexamples;• Maintainhighquality,sustainablefacilitiesthatsupportthemission,corevalues,andstrategicdirectivesofLaneCommunityCollege;

• Encourageandimplementhighstandardsinenvironmentalstewardship;• Promotelong-termfinancialsustainabilityandviabilityregardingthemaintenance,operations,andcareofthephysicalplantandassociatedcollegeassets.

I.B.StrategicAlignmentBycreatingandmaintainingefficient,safe,andaccessiblelearningandoperatingenvironments,FMPservicesareintegraltofulfillmentofthecollege’smission.FMPworkexemplifiesLane’scorevaluesoflearning,diversity,innovation,collaborationandpartnership,integrity,accessibilityandsustainabilityanddirectlysupportsthecollege’sstrategicdirectionsasdescribedbelow.• ALiberalEducationApproachforStudentLearningFMPprovidesstudentvolunteer,internship,employment,andco-curricularopportunitiesthatareintentionallydesignedtoprovidestudentswithcommunication,criticalthinkingandproblem-solvingskills;civic,environmentalandpersonalresponsibility;andinvaluablevocationaltrainingandworkexperiences.


• ASustainableLearningandWorkingEnvironmentFMPhasprovidedextraordinaryleadershipanddedicationtobuildinganationally-acclaimedsustainabilityprogramatLane,buildingbothenvironmentalandfiscalsustainabilityintoallFMPprojectsandinitiatives.

• ADiverseandInclusiveLearningandWorkingEnvironmentFMPsupportsLane’sdiversityeffortsbycontinuouslyimprovingaccessibilityofourbuildingsandspaces.Additionally,FMP’spartnershipwithSpecializedSupportServicestoprovidevocationaltrainingopportunitiesforadultswithdevelopmentaldisabilitiesisapowerfulillustrationofinclusionandopportunity.

• ASafeLearningandWorkingEnvironmentSafetyistheoverarchingprinciplethatguidesFMPwork,fromprioritizingsafety-relatedworkordersandmaintenanceprojectstoparticipatinginthecollege’sSafetyCommittee,toproactivelyprovidingstafftraininganddevelopmentopportunities,toleadingsafetyinitiativesandinnovations.

I.C.Stakeholders&RelationshipsThissectionisastandardcomponentofLane’sProgramReviewformatthatwilldescribeFMP’srelationshipswithinternalandexternalconstituencies.ItwillbewrittenduringPhaseII.

I.D.Structure&Staffing

FMPfallsunderthesupervisionoftheExecutiveDirectorofHumanResources.TheFMPDirector,DaveWillis,isresponsiblefortheentiredivision,withmanagementsupportfromHeathPierce,CustodialServicesManager,andBobMentionandToddSmith,BondProjectManagers.Chart1showsthebasicorganizationalstructure.PleaseseeAppendixAforacompleteorganizationchart.Chart1:FMPOrganizationStructure


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2008 2009 2010 2011 2012 2013Proj.

FMPGeneralFundFTEFY2008-FY2013(projected)

Contracted Total PartTime S3StudentWorker

AsshowninTable1andChart2abelow,FMPGeneralFundcontracted(orfull-time)staffinglevelshavedeclined4.9%since2008,attributabletopermanentreductionsof3.8FTEcustodialservicespositions.Thefluctuationinnon-custodialcontractedpositionsisrelatedtotemporaryreassignmentofcertainadministrativepositionstoBondwork.Increasingutilizationofpart-timeandstudentemployeeshasresultedinanoverallFTEincreaseof44%1.ThisevolutionisillustratedinCharts2band2conpage7.

Table1:GeneralFundFTE

FY2008 FY2009 FY2010 FY2011 FY2012FY2013(proj.)

%ΔFY2008-FY2012

ContractedEmployees(non-custodialservices)

24.1 26.8 27.7 25.5 26.5 25.5 5.8%

ContractedEmployees-Custodialservices 24.8 23.5 23.0 23.0 23.85 21.0 -15.3%

ContractedEmployeesTotal 48.9 50.3 50.7 48.5 50.3 46.5 -4.9%

Part-TimeEmployees .6 7.6 7.7 10.9 13.3 14.6 >1000%

Subtotal:Management&ClassifiedStaff

49.5 57.9 58.4 59.4 63.6 61.2 23.5%

S3StudentWorkers - - 1.0 5.6 5.6 5.6 >1000%

Total 49.5 57.9 59.4 65.0 69.2 71.4 44.2%

Source:BudgetOffice,THORPositionList,Bannerdownload2.8.13

1FTEfiguresincludeallGeneralFundemployeesandGeneralFundemployeesmiscodedtoFundIV.

Chart2a


Issues

Part-timeandstudentemploymentFTEandexpendituresareincreasingatanunsustainableraterelativetocurrentresourceallocations.Misclassificationofpart-timeemployeesintoFundIVhasobscuredtheissueoverthepastfewyears.

Certainapprovedincreasesinpart-timeexpenditureshavenotbeenmatchedwithadditionalbudgetauthority,forexampleforthenewDowntownCampus.

WhenconsideringFTEandlaborresourcetrends,thereisacollege-widetendencytofocusoncontractedstaffinglevels;part-timeFTEandexpendituresarenotconsistentlyaddedintothelaborresourcepicture.S3studentworkerFTEandexpendituresareevenfurtherremovedfromstaffinganalyses.

PhaseIIWork

DuringPhaseII,thereviewteamwillanalyzeFTEtrendsandfactors,toincludescopeofwork(squarefootage,servicelevels,etc.),schedulingpractices,assignableworkhours,productivity,andcomparator/benchmarkdataanddevelopacomprehensivepersonnelplanrecommendationforFY2014implementation.Note:FMPhastakenimmediateactiontocurtailpart-timecustodialservicesexpendituresbychangingoncallprocedures.Allcurrentpart-timeemployeeshavebeencorrectlyclassifiedintoFundIV,effectiveMarch1,2013.

99%

1%

FY2008LaborDistribu\on

Contracted

Part-Time70%

22%

8%

FY2013LaborDistribu\on

Contracted

Part-Time

S3StudentWorkers

Chart2b Chart2c


TopicII:FinancialStructure

II.A.Resources

GeneralFund

Table2presentstheGeneralFundbudgetallocatedtoFacilitiesManagementandPlanningoperationsfromFY2008toFY2013.WhiletheFMPbudgethasincreased26%overthistimeperiod,thecollegebudgethasincreased40%,resultinginarelativeallocationdeclineof10%.Thecollege’soperatingbudgetgrowthisdirectlyrelatedtoenrollmentincreasesandresultantincreasesinpart-timefaculty.

Notes:

• AlthoughthereviewteamhasadditionalanalysisworktodoinvettingcomparatordataratiosonGeneralFundinvestmentinplantoperationsandmaintenancefromtheOregonDepartmentofCommunityCollegesandWorkforceDevelopment(CCWD)andfromAPPA:TheAssociationofHigherEducationFacilitiesOfficersconsistentlyaverageinthe9.5-10%range,ascomparedtoLane’scurrentratioof7.6%.ItisimportanttonotethatexternalcomparatorsarelimitedintheirutilityasLanehasbeenconsistentlyonthelowerendofratioscalesandbecausecolleges’complexanduniqueorganizationandfinancialstructuremaketrue“applestoapples”comparisonsvirtuallyimpossible.

• IncreasesinmandatoryexpendituresaspresentedinTable3belowareoneofthekeydriversofFMPbudgetescalation.AdetailedlistofmandatoryallocationsispresentedinAppendixB.

• FY2013budgetdoesnotinclude$101,338inbudgetauthorityapprovedintheDowntownCampusStaffingPlanforpart-timecustodiansandstudentworkers.

• FY2013budgethasnotyetbeenadjustedformovingsustainabilityadministrationfunctionsintothenewInstituteforSustainablePracticesinFundIX.TheadjustedbudgetwillbepresentedinPhaseIIofthereview.

Table3:MandatoryFMPExpenditureAllocations

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

MaterialsandSupplies2 - - - - - 200,000OutsideServiceContracts 107,500 172,500 185,500 98,124 152,000 201,203Rents&Leases,Misc.Other 99,880 103,000 103,000 95,000 144,000 144,000S3StudentWorkers - - 35,854 138,336 174,003 214,035Utilities 1,667,140 1,569,500 1,574,500 1,528,250 1,708,648 1,831,320TotalAll 1,874,520 1,845,000 1,898,854 1,859,710 2,178,651 2,590,558Source:BudgetOffice,February2013.

2CustodialSuppliesContract.IncludesmaterialspurchasedforS3studentworkers.

Table2:LaneCommunityCollegeAdoptedGeneralFundBudgetin$1,000s.Excludestransfers,contingencyandfundbalance.

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 %Δ

FMPOperations 5,436 5,663 5,882 5,899 6,490 6,857 26%

CollegeOperatingBudget 64,555 67,171 73,166 78,678 84,187 90,436 40%

%FMP:Total 8.4% 8.4% 8.0% 7.5% 7.7% 7.6% -10%

Source:BudgetOffice,Bannerdownload2.8.13


PhaseIIWorkDuringPhaseII,thereviewteamwillprovidecontextandadditionalanalysistothecollege’sfacilitiesresourceallocationpictureby:

1) CompilingandvalidatingcomparatorfundingdatafromtheOregonDepartmentofCommunityCollegesandWorkforceDevelopment,APPA:TheAssociationofHigherEducationFacilitiesOfficersandtheSocietyforCollegeandUniversityPlanning(SCUP);

2) AnalyzingmandatoryexpenditurebudgetsandexpendituretrendsacrossallFMPactivities;

3) Developingrecommendationsforimprovingcollegechargebackprocessesandprocedures;

4) Developingminimumoperationalservicelevelandmajormaintenance/capitalinvestmentrequirementsforLane;

5) DevelopingreportingtoolsthatenableFMPstafftoregularlyreviewbudgetstoplanstoactualsandtoprovidemeaningfulinputtothebudgetdevelopmentprocess;

6) RecommendingresourcestructureandbenchmarksforFY14forward.

Issues

Somehistoricalresourceallocationstructuresnolongeralignwithcurrentpractice,suchasaseparatesubfundfordeferredmaintenance.

Thedepartmentchargeback/ICOprocessisincrediblyinefficient,creatingsignificantbudgetavailabilityissuesforFMP,especiallyastheyearprogresses.

FundIVbudgetsarechronicallyunderfundedrelativetoplanandsubjecttosignificantvolatility,creatinganever-increasingmaintenancebacklogandsignificantchallengesinplanningandsequencingmajorprojectwork.

FMPdoesnothavereportingtoolsthatreadilyallowformeaningfulconnectionbetweenprojectplansandbudgetsorregularreviewofbudgettoplanstoactuals.

FundIV

In2003,theBoardofEducationapprovedaneight-yearphasedCapitalAssetReplacementandMajorMaintenanceFundingPlanthatwouldresultinfullfundingof$2,375,000byFY2010.Thisplanhasbeenonlypartiallyimplementedduetocollegeresourceconstraintsand$8,000,000inGoOregongrantfundingreceivedinFY2010.Table4showsthefullfundingtargetbycategoryandactualallocationsfromFY2008tothecurrentyear,FY2013.

Table4 FundIVAllocation(Actual) FullFundingTarget

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

CapitalImprovement $484,785 $255,000 $255,000 $255,000 $472,000 $475,000 $605,000

MajorMaintenance

$1,110,000 $1,110,000 $765,257 $840,000 $2,225,000 $625,000 $1,650,000

DeferredMaintenance $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000

CapitalImprovement&MaintenanceTotal

$1,704,785 $1,485,000 $1,140,257 $985,000 $2,817,000 $1,220,000 $2,375,000

Source:BudgetOffice,CapitalAssetandMaintenanceFundingPlan,Bannerdownload2.8.13


II.B.FundBalances

Table5presentstheFY2013beginningfundbalancesforallFundIVsubfunds.FundswithinthescopeofPhaseIreviewarehighlightedinyellow.

Table5:FY2013BeginningFundIVFundBalances

Fund FundTitle Amount

411000 FacilitiesPlanningFund 10,293

412000 SpecialProjects-LASR 445,336

413000 ConstructionReserves-Ashlane 475,175

414000 DeferredMaintenance -

415400 CapitalImprovements 371,114

415500 CapitalOutlayReserves 1,870,000

415600 GroupPassParking 163,692

416000 HealthClinic -

417000 LongHouseProject (1,130,593)

418000 MajorMaintenance (178,429)

451000 BondProject -

452000 CapitalRepair/Improvement 92,575

453000 Health&Wellness (1,280,204)

458000 StateDeferredMaintenance -

460000 BondProject2009 538,627

460200 BondEquipment 1,712,256

TotalFundIV 3,089,842

Source:BudgetOffice,2/7/13.


II.C.Expenditures

1) GeneralOperations(GeneralFund)

Generaladministrativeandoperatingexpendituresareexpensedoutofthecollege’sGeneralFundandareclassifiedintothefollowingorganizationalfunctions:

CustodialServices(previouslyHousekeeping)includescleaningandcustodialservicesworkinclassrooms,commonuseareas,restroomstocking,sanitizing,deepcleaning,garbageremovalandbloodbornepathogensmanagement.FacilitiesAdministrationincludesoffice,administrativeandplanningstaffnotassignedtospecificprojectsortradesandofficeandadministrativematerials,servicesandsupplies.GeneralServicesincludeseventsetup,unlockservices,equipmentmoves,andgeneralphysicalplantandmaterialssupportforallstudentsandstaff.Groundsincludeslandscaping,irrigation,parkinglotsupport,snowremovalandde-icing,garbagepickup,movingandfieldmaintenance.HazardousMaterialsincludesallworkrelatedtothehandlingandstorageofhazardousmaterials,includingpermits,inventoriesrequiredbyregulatoryagencies,anddisposal,withtheexceptionofIndoorEnvironmentalQuality(IEQ)projects,whicharetypicallycategorizedasmajormaintenance.Maintenanceincludesroutinginfrastructuresystemsandstructuresmaintenance,includingcoreworkbyelectricians,carpenters,painters,specialmaintenance(e.g.campuslocksmith),plumbing,mechanicalmaintenance,heating,ventilationandairconditioning(HVAC),andvehiclemaintenance.SustainabilityAdministrationincludesworktosupportthecollege’scorevalueofsustainabilityatafacilities-widelevel.Componentsincludeenergymanagement,recyclingandsurplusproperty,andcommissioning.AsofMarch1,2013,allsustainabilityfunctionswillbecontainedwithinthenewInstituteforSustainabilityPracticesdivisionandfundandwillnolongerbeadministeredbyFMP.Utilitiesincludeselectricity,water,naturalgas,dieselandgarbageservices.Wastewaterincludesmaintenance,serviceandsupportforthecollege’swastewatertreatmentplant.


Table6belowpresentsafiveyearhistoryofGeneralFundfacilitiesexpendituresbyexpensefunctionalongwithpercentagechangeoverthefiveyearperiod.3

Theprimarydriversforexpenditureescalationarepersonnel,generalmaterialsandservices,andmaintenancecontractsasillustratedinTable7onthefollowingpage.

3FiguresincludeallGeneralFundexpendituresandGeneralFundpersonnelmiscodedtoFundIV.

Table6:GeneralFundFacilitiesExpendituresbyOrganizationalFunction,FY2008-FY2012

2008 2009 2010 2011 2012%Δ

FY2008-FY2012

CustodialServices 1,134,887 1,235,365 1,468,131 1,598,161 1,944,980 71%FacilitiesAdministration 760,151 817,640 837,927 935,275 923,469 21%GeneralServices 333,171 300,138 170,345 169,075 187,921 -44%Grounds 238,250 252,548 275,875 302,991 301,289 26%HazardousMaterial 46,978* 14,997 30,413 20,987 16,518 -65%Maintenance 831,852 1,211,842 1,128,743 1,229,144 1,318,800 59%SustainabilityAdministration 328,580 313,554 291,766 334,084 388,664 18%Utilities 1,468,129 1,452,744 1,507,767 1,554,542 1,491,766 2%Wastewater 41,425 39,366 51,112 44,965 68,758 66%GrandTotal 5,183,422 5,638,193 5,762,078 6,189,223 6,642,165 28%*$27,147hazardousmaterialexpenditureinFY2008forarchivesfloodingwouldusuallybeexpensedasamajormaintenanceFundIVproject.Source:BudgetOffice,Bannerdownload2.8.13


PhaseIIWork

DuringPhaseII,thereviewteamwillanalyzetrenddatadetailforeachorganizationalfunctionandexpenditurecategoryto:

1) Developunderstandingofthecausesofsignificantshifts;2) Identifyissues,inefficienciesandopportunitiesforimprovement;3) EstablishbenchmarksandtargetsforFY14forward;4) DevelopreportingtoolsthatenableFMPstafftoactivelymanagetobudgetsandbenchmarks;5) Recommendchangesinprocesses,structuresandoperationstoimproveefficienciesand/orreduce

costs.

Issues

FinancialandmanagementreportingcurrentlyavailabletoFMPstaffrequiressignificantmanualmanipulationandcompilationanddoesnothavethecapabilitytosummarize,groupandsortdataaspresentedinTables6and7.

Expendituresinsomefunctionsandcategoriesareincreasingatratesthatareunsustainablewithincurrentresourcelevels.AsanincreasingamountofsmallmaintenanceprojectsareexpensedoutofFundIV,ageneralfundanalysisonlypresentsapartialviewofexpenditurecategorytrends.

Table7presentsafiveyearhistoryofGeneralFundfacilitiesexpendituresbyexpenditurecategory,alongwithprojectionsforFY2013.4

Table7:GeneralFundFacilitiesExpendituresbyExpenditureCategory,FY2008-FY2013

2008 2009 2010 2011 2012 2013Proj.

%ΔFY2008-FY2013

M&S

Fees&Dues 14,846 22,991 18,757 18,344 15,504 28,045 89%

M&S-General 253,403 355,956 312,475 320,246 387,580 454,322 79%

Rents&Leases 117,001 111,210 115,311 95,884 117,564 101,519 -13%

Utilities 1,504,453 1,472,969 1,546,514 1,594,843 1,530,884 1,700,497 13%

Computers&Equipment 10,154 137,800 19,465 31,953 168,400 70,775 597%

OutsideServices 264,952 242,546 280,609 257,258 302,273 230,432 -13%

Maintenance&Repair 132,503 109,831 94,845 107,790 151,914 186,580 41%

M&STotal 2,297,313 2,453,303 2,387,976 2,426,318 2,674,118 2,772,170 21%

Personnel

ContractedStaff 1,835,588 1,947,357 1,997,335 2,181,171 2,206,448 2,385,944 30%

OPE 1,030,995 1,040,994 1,171,933 1,296,697 1,417,984 1,638,611 59%

Overtime 6,086 24,167 25,486 32,458 31,403 40,420 564%

PTStaff 13,441 172,352 179,348 252,579 312,212 366,002 >1000%

PersonnelTotal 2,886,109 3,184,870 3,374,102 3,762,905 3,622,576 4,430,977 54%

GrandTotal 5,183,422 5,638,173 5,762,078 6,189,223 6,642,165 7,203,147 39%


44FiguresincludeallGeneralFundexpendituresandGeneralFundpersonnelmiscodedtoFundIV.


2) MajorMaintenanceandCapitalProjectsNon-recurringmaintenanceandcapitalimprovementprojectsareexpensedoutoftheCapitalProjectsFundIVandareorganizedintothefollowingcategories.

MajorMaintenanceProjectsinexcessof$10Kthathaveasignificantimpactonthecollege’sabilitytoachieveitsmissionaredefinedasmajormaintenance.Therearethreetypesofmajormaintenanceprojects:• Planned,scheduledprojectsthathavebeenthroughestablishedprioritizationanddecision-makingprocesses.

• Unplannedprojectsthatfollowemergencyprocedures.• Operationsprojectsthatunexpectedlyexpandinscopetomeetmajormaintenancecriteria.

MajormaintenanceprojectsarefundedthroughthemajormaintenancefundingallocationpresentedinTable4onpage9.SmallMaintenanceProjectsNon-recurring,non-routinemaintenanceprojectswithscopeof$10Karedefinedassmallmaintenanceprojects.Examplesincludeone-timeelectricalimprovements,plumbingrepairs,andHVACimprovementsandrepairs.Historically,FMPhasusedtheannualDeferredMaintenanceallocationtofundsmallmaintenanceprojects.CapitalImprovementProjectsinexcessof$10Kthatareattachedtoabuilding/structureandaddnewvaluearedefinedascapitalimprovement.Capitalimprovementprojectscanbeusedtorenovatestructuresforenhancedorchangeofuse,butnotforrepairorrenewaloforiginalvalue/existinguse.CapitalimprovementprojectsarefundedthroughthecapitalassetreplacementfundingallocationpresentedinTable4onpage9.


Issues

ThemajorityofFundIVexpenditures(anestimated64%)aregoingtosmallmaintenanceprojects,emergencies,andotherworknotincludedinannualplanning,prioritizationandauthorizationprocesses.

Thereisnotanestablishedprocessforidentifyingandreclassifyinggeneraloperations(FundI)workthatgrowsinscopetomeetmajormaintenance(FundIV)projectcriteria.

PhaseIIWork

DuringPhaseII,thereviewteamwillprovidecontextandadditionalanalysistoFundIVexpenditureprocessesandcontrolsby:

1) Clarifyingsmallmaintenancedefinitionsandclassificationcriteria;

2) Developingprocessesandsystemsforgeneraloperationsworkthatgrowsinscopetobecomemajormaintenance;

3) DevelopreportingtoolsthatenableFMPstafftoactivelymanagetoplans,budgetsandbenchmarks.

Table8presentsafiveyearhistoryofFundIVmaintenanceandcapitalimprovementexpenditures,alongwithprojectionsforFY2013.

5Funds411000,414000,4180006Fund415400

Table8:MaintenanceandCapitalProjectsExpenditures,FY2008throughFY2013Projected

FY2008 FY2009 FY2010 FY2011 FY2012

FY2013Proj.*

Maintenance5 591,172 1,090,671 957,444 988,213 1,978,628 1,479,477CapitalImprovement6 474,009 620,056 259,296 53,395 533,707 3,988Total 1,065,181 1,710,727 1,216,740 1,041,608 2,512,335 1,483,465

*FY2013projectionincludesyeartodateexpendituresplusencumbrances,committed/scheduledworkandestimatedminimumsmallmaintenanceand/oremergencyprojects.AdditionalBuilding4IEQworkisNOTincludedinprojections.



Issues

Thereisalackofplanningcontinuityfromyeartoyear,exacerbatedbyanever-growingbacklogofdeferredprojects.

Majorprojectsarepresentedonmyriadschedulesandworksheets,makingitdifficulttostrategicallyprioritize,allocateresourcesandtrackexpendituresacrossthespectrumofmajorprojectwork.

Plansarenotsystematicallyadjustedatanaggregate/comprehensivelevelthroughouttheyeartoreflectchangingconditionstoincludeemergencies,unplannedwork,scopechanges,reprioritization,and/orcostoverruns.

Thereisalackofclarityandunderstandingamongstcollegeadministratorsaboutprioritizationcriteriaforbothworkordersandmajorprojectwork.

Asmentionedpreviously,managementandfinancialreportingtoolscurrentlyavailabletoFMPstaffareinsufficientforthecomplexityanddynamicnatureofthework.

Projectsandworkorderplanscurrentlydonotprovideareasonablespreadacrossthefiscalyear.

PhaseIIWork

DuringPhaseII,thereviewteamwill:

1) Review,documentandflowchartFMPplanningprocesses;

2) Reviewanddocumentprioritizationcriteria;

3) Reviewemergencydeclarationdefinitionsandprocesses;

4) Documentbacklogofdeferredprojectsbybuildingandbuildingcomponents,thensegmentintoportfoliosofwork(similartohowFMPhasorganizedtheHighRiskInfrastructurePlan);

5) DeveloprecommendationsforbetterconnectingdepartmentplanningwithFMPplanningandcommunicationsefforts;

6) Developprojectlistplanningandtrackingstandards;

7) Developmanagementandfinancialreportingtoolsforvariousaudiencestoincludecollegeexecutives;

8) Developstructureforestimatinglifecyclecostsandbuildingongoingoperatingandsystemscostsintoplansandbudgets;

9) Reviewcontingencyallocationsbyprojectandfund;

10) Recommendchangesinprocesses,structuresandoperationstoimprovetransparencyandeffectiveness.

TopicIII:PlanningProcessesPlanningprocessesandsystemswillbeaprimaryareaoffocusduringPhaseIIofthereview.AlthoughplanninghasbeenonlybeenbrieflytoucheduponduringPhaseI,theteamhasidentifiedseveralissuesandopportunities,presentedbelow.


TopicIV:Trends&OperatingEnvironmentFMPisoperatinginanincreasinglydynamicandchallengingenvironment.AsthereviewteamembarksonPhaseIIofitswork,theissues,opportunities,andconstraintspresentedbyouroperatingenvironmentwillfactorheavilyintotheteam’sanalysisandrecommendations.AgingPhysicalPlant

Facilitiesrarelyfailintheirentirety;itistheirsystems,components,orpartsthatfail.Continueduseoffunctionalfacilitiesrequirescontinuedmaintenanceandupkeepofthesesameelements.Thisisadauntingtaskforanyorganization,largeorsmall.Whatisgainedinthesophisticationofalargerownerisoftenovercomebysheervolume,datamanagementchallenges,andcomplexityofthe

inventory.Regardless,facilitiesmanagementprofessionalswageaconstantbattleagainsttheaging,wearingout,degradation,andobsolescenceofthefacilitiestheymanage.7

LaneCommunityCollegewasfoundedin1964;itscorecampusbuildingswereconstructedinthebrutaliststyleofarchitecture(aphraseadoptedfromtheFrenchwordbrut,or"rawconcrete"),withconstructioncompletedandclassesofferedforthefirsttimeinthenewfacilitiesinthefallof1968.TheFlorenceCenteropenedin1976,followedbyCottageGroveandtheDowntownCenterin1977.Variousotherbuildingshavebeenaddedand/orconstructedinsubsequentyears,andthefruitsofthemostrecentBondmeasureandrelatedfundingcampaignshaveincludedtheNativeAmericanLonghouseandtheHealthandWellnessBuildingonMainCampus,alongwiththejust-completedDowntownCampus.Withthecampuscorenowmorethan45yearsold,obsolescenceisbecominganincreasinglyalarmingissue,duetothe“perfectstorm”representedbythefourfactorsofobsolescence8infacilitiesmanagement:

1. Technologicalchangesinfluencethescopeorlevelsofservicesinfrastructureistoprovide.Forexample,ourcommitmenttosustainabilityasacorevalue,coupledwithourdesiretorealizesavingsinenergymanagement,isseverelychallengedby45-yearoldHVAC-systemcomponentsthatareconnectedandmanagedbyamodernBuildingAutomationSystemonlywithgreatdifficulty.

2. Regulatorychangesimposenewrequirementsoninfrastructure.Forexample,Facilitiesrecentlywona$780,000granttoupgradeBuilding11forseismiccompliancewiththecurrentcodeaspartoftheirupcomingrenovationwork.Thishighlightsboththeneedandthecostforeventualimprovementscampus-wide.

3. Economicorsocialchangesinthemarketswithinaregioncansubstantiallyalterthedemandsplacedoninfrastructure.Forexample,theincrediblegrowthoftheautomobileasthepreferredmodeoftransportationattheexpenseofotherformsofpublictransportationplacesanincreasingburdenoncampusroadwaysandparkinglots.

4. Changesinvaluesorbehaviorofthepeoplewhousetheinfrastructure.Forexample,onefocusofthe1995Bondwasconstructionofeightcommunitylearningcentersathighschoolsthroughoutthearea;theseCLCsarenolongerfunctional.

Atthesametime,Lanehasnotbeenimmunetowindsofchangeonthebudgetfront;enrollmentwaxesandwanes,asdoesStateandlocalsupportfortheCollege.Deferringregularmaintenanceandrenewalprogramsexacerbatestheproblemoverthelong-term,andnowapproachingthehalf-centurymark,wefindourselveswithaginginfrastructureinneedofattention—perhapsearlierthanwemighthavehoped—duetothediminishingreturnsofdeferredmaintenancethatresultsbothinreachinglessthanoptimumperformancemorequicklyandreducingoverallservicelife:

7RodRose,Buildings--theGiftsthatKeeponTaking:AFrameworkforIntegratedDecisionMaking(APPACFaRCenterforFacilitiesResearch,2007).58.8SuggestedbyAndrewCLemer,"Infrastructureobsolescenceanddesignservicelife,"JournalofInfrastructureSystems2,no.4(1996):154.


Collegeleadershipclearlyrecognizesthedangerofdeferredmaintenanceandourrecentcommitmenttoaddressinghigh-riskinfrastructurechallenges,seededbythecurrentBond,isanindicationthatweareontheroadtofindingourwaybacktoappropriate,long-terminvestments—notonlyinconstruction,butincontinualmaintenanceofthepublic’sinvestmentinourfacilities.Aneffectiveassetinvestmentstrategyincludesthreefactors:9• abusinesscaseanalysis,• afinancialandbudgetanalysis,and• aneconomicortotalcostofownershipanalysis.AsthereviewteamcontinuesourworkintoPhase2,weareconfidentthesefactorswillsupportarenewedcommitmenttobotheffectivemanagementandappropriatefundingofmaintenanceandoperations.GrowingSquareFootageAsillustratedinTable9below,thebuildingandstructuresquarefootageFMPisresponsibleforsupportinghasincreased60%since1996and23%since2008.Asnewbuildingsandstructurescomeonline,FMPtakesonrecurringadditionaloperationalexpensesandobligationstoincludesystemsadministration,maintenance,andcustodialservices.Inshort,eachnewbuilding,eachnewsquarefootofinventoryaddsadditionalscope,moreworkorders,morepartsandpiecesthatarerequiredtomaintaincurrentlevelsofservice,andtypically,initialcostsmakeuponlyaboutathirdoftotalownershipcosts.10Table9:SupportedSquareFootage 1996 2008 2013MainCampus 721,467 963,634 1,052,325BranchCampusesandSites 125,106 170,279 342,741Total 846,573 1,133,913 1,395,066Source:FacilitiesManagementandPlanning,February2013

Moreover,institutionsofhighereducationshareaparticulartraitwhenitcomestotheirsquarefootage:

Incollegesanduniversities,inparticular,manyfacilitiesarecustom-designedorbuilttosuitspecializeduses,whicharedeterminedbycurrentusersorstake-holderswhomayormaynothaveaperspectiveonlong-termfutureneeds—acircumstancethattendstominimizerather

thanoptimizelong-termflexibilityintheuseandfunctionofspaces.11

Inotherwords,inthehighereducationsetting,theemphasisonprogrammingandspecializedusescanbeahindranceintermsofbothspaceandstaffutilization.Facilitiesstaffhavetounderstandhowtomaintainandoperateagym,amedicalfacility,atrack,alaboratory—andmore.

9Rose,Buildings--theGiftsthatKeeponTaking:AFrameworkforIntegratedDecisionMaking:28.10Ibid.,39.11Ibid.,6.


SustainabilityandEnvironmentalStewardshipCommitmentsAsanearlyandstrongproponentofsustainability,Lane’scommitmenthasmaturedwellbeyondbasicrecyclingandenergymanagementprojectsand“throwingLEEDpoints”atnewconstructionprojects.AsthecollegemeetsitsambitiousClimateActionPlancommitments,continuestodevelopgreenstandardsandconsciouslyadoptgreentechnologiesthatwillservethecampusforgenerationstocome,FMPstaffandplannersplayanintegralroleinensuringfacilityinvestmentsarebothenvironmentallyandfiscallysustainable.DesignAspartofLane’scommitmenttosustainabilityandtoexcellenceinfacilitiesmanagement,newconstructionandrenovationprojectsareincreasinglybenefitingfromintegrateddesign.Infact,integratedbuildingdesignisthepracticeofdesigningsustainably.12Asweintegrateconstructionpractices,maintenanceandoperationpoliciesandprocedures,programming,design,andlifecycleanalysis;andasweleveragetheexpertiseofourInstituteforSustainablePractices,wearestrategicallydesigningforthefutureaswellasforthepresent.Thisshifttowardintegrateddesignrequiresadditionalupfrontinvestmenttorealizelong-termlivabilityandoptimizedtotalcostofownership.IndoorEnvironmentalQualityConcernsAsillustratedinTable10,theFMPbudgetshavebeenseverelytaxedbyextraordinaryIEQissuesoverthepastthreeyears,includingchronicproblemsinBuilding4.Duetotheagingcampuscore,ourcommitmenttosustainabilityandtherequirementtocommissionournewconstructionandrenovationprojects,FMPexpectsrecurringIEQexpendituresofatleast$50,000annually,inadditiontobuilding-orissue-specificIEQprojects.Table11presentsbuilding-specificIEQcostsforBuilding4,whichaccountfor67%ofIEQexpendituresfromFY2008throughFY2012.Table10:IEQExpenditures

FY2008 FY2009 FY2010 FY2011 FY2012

FY2013YTD*

GeneralFund 29,394 16,092 22,183 16,092 16,518 9,380

MajorMaintenance - 26,153 15,531 26,153 693,502 76,136

Bond/StateFunding - 289,222 335,735 130,452 - -

TotalIEQ 29,394 331,467 373,449 172,697 710,020 85,516*SignificantadditionalexpendituresareanticipatedinFY2013forBuilding4IEQwork.Source:FacilitiesManagementandPlanning,BudgetOffice.

Table11:Building4IEQExpenditures

FY2008 FY2009 FY2010 FY2011 FY2012

FY2013YTD*

MajorMaintenance - 11,832 9,237 11,832 625,453 46,397

GoOregon - - 12,481 - - -

Bond - 289,222 64,562 130,452 - -

TotalIEQ - 301,054 86,280 142,284 625,453 46,397*SignificantadditionalexpendituresareanticipatedinFY2013forBuilding4IEQwork.Source:FacilitiesManagementandPlanning,BudgetOffice.

12MarianKeelerandBillBurke,Fundamentalsofintegrateddesignforsustainablebuilding(Wiley,2009).1.


BudgetaryPressuresAsthecollegefacesincreasingbudgetarypressures,recentlyexacerbatedbydecliningenrollment,FMPfacesuncertaintyaboutitsGeneralFundandFundIVfundingallocationswhichmakeitdifficulttoplanbothoperationalandprojectwork.Salaryandbenefitescalationandmaterialsandservicesinflation–toincludeutilitiesandmaintenancecontracts-createadditionalstrain.BondandCapitalConstructionProjectsBondandcapitalconstructionprojects,invariablyresultinsignificant“hangover”workforFMP:workthatisrequiredaftertheprojecthasclosedandthereforemustbeassumedintoFMP’sexistingmaintenanceandcapitalbudgets.FMPstaffareintheprocessofanalyzingthecausesandtruecostsofthisworkandwillincluderecommendationsforhandlingthisduringPhaseIIofthereview.SystemsandTechnologyThecollegeisstrategicallyinvestinginincreasinglysophisticatedsystemsandtechnologythatimprovetheefficiencyandsafetyofourbuildingsandinfrastructure.Implementationoftenspansmultipleyearsandrequiressignificant,specializedresources.Thisinvestmentisreflectedingrowingoutsideservices/consultantsexpendituresandincreasesinmandatoryannualexpendituresforongoingservicecontractsandmaintenance.Part-TimeLaborFMPhasbeenincreasingitsuseofpart-timelabortoaugmentleancontractedstaffinglevels,particularlyincustodialservicesandforsummerprojectwork.Part-timelaborprovidesbenefitsthroughflexibilityinscalingtheFMPworkforceupanddowntoadapttochangingneedsandresources,andthroughlowersalaryandbenefitcosts.Itdoescreateadditionalrecruitmentandtrainingcosts,however.StudentEmployeesFMPhasexpandeditspartnershipwiththecollege’sSpecializedSupportServices(S3)divisiontoprovidevocationaltrainingopportunitiesinrecyclingandcustodialservicesforstudentswithdevelopmentaldisabilities.S3studentsnowprovideFMPwiththeequivalentlaborofsixfull-time-equivalentemployees.AppendixCpresentsananalysisofthedepartmentandcollegecostandbenefitfromutilizationofS3workcrews.


PhaseIIWork

DuringPhaseII,thereviewteamwillcompileandanalyzeperformanceindicatordataforLane,overfiveyearsaspossible,andwillidentify,vetandpresentrelevantcomparatordatafromotherOregoncommunitycolleges,APPA:TheAssociationofHigherEducationFacilitiesOfficers,andtheSocietyforCollegeandUniversityPlanning(SCUP).

TopicV:KeyPerformanceIndicatorsThefollowingkeyperformanceindicatorswillenableFMPstafftobenchmarkandassessefficiencyandeffectiveness,bothlongitudinallyandagainstcomparableinstitutions.

GeneralOperations• OperationsandMaintenanceExpenditures/GrossSquareFeet

Maintenance• MaintenanceCost(GeneralFunded)/GrossSquareFeet• Maintenance,MajorMaintenanceandCapitalImprovementCost/GrossSquareFeet• GrossSquareFeetMaintained/Maintenance(trades)FTE

WorkOrders• AverageAgeofRoutineWorkOrders(hours)• WorkOrderBacklogas%YearsEfforts

CustodialServices• CustodialCost/GrossSquareFeetCleaned• CustodialCost/StudentFTE• GrossSquareFeetCleaned/CustodialFTE

Grounds• GroundsCost/Acre• GroundsCost/StudentFTE• Acres/GroundsFTE

Safety• Thereviewteamiscurrentlyintheprocessofdevelopingperformanceindicatorsforsafety,whichwill

encompasssecurityandenvironmentalsafety.

Planning• ProjectCosts/Budget• Post-ProjectCosts

CapitalInvestment• CapitalExpenditureforExistingSpace/CapitalReplacementValue


TopicVI:CurrentYearOperationsandBudget

Inspringandsummer2012,FMPdevelopedtenperformancegoalsforthedivisiontobeaccomplishedinFY2013.AspresentedinTable12,theFMPteamhasmadegreatprogressinachievingthem.

Table12:FMPFY2013PerformanceGoalsGoal Status,February20131) CompletetheDowntownCampusresidenceand

instructionbuildingsonscheduleandwithinbudget.TheDowntownCampusprojecthasreachedsubstantialcompletionasscheduled,andFMPexpectstorealizeprojectsavingsthatwillbedirectedtotheCenterBuildingproject.

2) Completethedesignworkofthecentralplantandremainingbondprojects.- CompleteallseismicgrantworkinBuilding11during

thesummerof2013.

FMPplanstoawardthecentralplantdesignworkattheMarchBoardmeeting,andiscurrentlyinthedesignphaseforBuilding11,ontrackforconstructioninsummer2013.

3) Completepastbondandotherfundedcapitalprojects- Building2DataCentercoolingsystemsequenceof

operation- SolarStationcontrolsystemdataintegration- SolarThermalSystem(Building30)panel

replacement,improvements,commissioning- Multi-BuildingSolarThermalSystemsequenceof

operation,commissioning- Sub-Meteringmetercommissioning- Building10punchlists- ImplementCapitalReinvestmentInfrastructure

Strategy

Building2iscomplete,withanyremainingissuesexpectedtoberesolvedinthecentralplantproject.

TheSolarStationprojectiscomplete.

TheSolarThermalSystemistiedintotheMulti-BuildingSolarThermalproject.Allcomponentshavebeenreplaced,andFMPiscontinuingcommissioning.

Sub-meteringcommissioningislikewiseongoing.

Building10iscomplete.

FMPhasawardedworkonearlycomponentsaspartoftheCapitalReinvestmentInfrastructureStrategy,includingelectrical,thewastewatertreatmentplantandtheBuilding15roof.

4) CompleteCMMSMegamationImplementationOn:- WorkOrderModule- MotorPoolPMModule- KeyModule- HVACSystemsPMModule

FMPhasfullyimplementedtheWorkOrdermodulethisyearformaximumefficiency,makingscoresofchangestobetterfittheflowofworkatLane.Staffhavebegunenteringthedatarequiredtoimplementtheremainingmodules.

5) Organizehardandsoftcopiesofhistoricalprojectfilesandcontractdocuments.

Phase1iscomplete,withover190boxesofpaperworkpreparedforpermanentstorage.TheFMPdigitaldatabasenowcontains9,700plansand375gigabytesofstorage.Aprocessforretrievalisalreadyinuse.

6) Generateandimplementprocedures:- ProjectAdministrationprocedure.- RequestforProposal“RFP”Procedure.- MotorPoolCOPPSprocedure

WorkhasbegunonboththeProjectAdministrationandRFPprocedures(andmaywellbeinfluencedbythisreview).MotorPoolCOPPSprocedurehasbeenupdated.

7) PerformfiscalresponsibilityregardingallFY2012budgets.

Thisworkisongoingandwillbeanimportantandwelcomeoutcomeoftheoperationalreviewprocess.

8) CompletephaseIIoftheBASsystemsintegrationtoR25.

ThisworkhasbeendeferredtoFY14duetobudgetconstraints.

9) TrainingProgramDevelopment:- Custodialservicesqualificationlevels- Boileroperatortraining- Megamation- Civil&RespectfulRelationship/DiversityTraining

Completed.TrainingwillcontinueonanongoingbasisaspartofFMP’scommitmenttosafety,serviceandcivility.

10) CompleteaStateoftheFacilitiesSurveyforAllCollegeBuildings

FMPhastakenfirststepsbyidentifyingcriticalhigh-riskinfrastructureneedsandverifyingourcampussquarefootagefigureswithon-siteassessment.


Chart3

WorkOrderCountbyType ACCESSAUTOBONDCABINETRYDOITNOWELECGROUNDSGSHARDWAREHOUSEKEEPINGHVACCAPIMPRKEYSLOCKHDWREOFFICEPAINTINGPLUMBINGPREVMAINTPMINSPECTREGULATORYREPAIRSAFETY

In2012-2013,FMPimplementedMegamationCMMStoimproveefficiencyreceiving,trackingandschedulingworkorders.AsillustratedinTable13,theFMPteamhasconsistentlyincreasedthenumberofworkorderscompletedeachyear,helpedbytheimpactofGoOregonandBondprojectworkandtheabilitytoutilizepart-timelabor.Theaverageworkordercompletiontimehasbeenimprovedfrom11monthsinFY2009to2.5monthsinFY2013.Chart3illustratesthewiderangeofworkordersprocessedinFY2013,providingasenseofthecomplexityofschedulingandlaborinvolved.

Table13:WorkOrdersCompletedbyFiscalYear

FiscalYear WorkOrdersCompleted

2004 1,430

2005 268

2006 2,051

2007 556

2008 2,223*

2009 2,739*

2010 3,367*

2011 4,109*

2012 2.933*

2013YeartoDate 1,640*

*GoOregonandBondFY2009fundingusedtoworkthroughbacklog.

Source:FacilitiesManagementandPlanning


FMPhasalsoTable14presentsthestatusofapprovedFundIVMajorMaintenance/CapitalImprovementProjectsasofMarch1,2013.

Table14:FY2013ApprovedMajorMaintenance/CapitalImprovementProjectStatus

ID ProjectName Status FYSched.%

CompleteTier/

Priority ProjectNotesCompleted

002 Building6RoofReplacement Complete FY2012-

FY2013 100% 1/1 Coderequirement,addedsmokeventreplacement

007 WildishBuildingRoofRepairs Complete FY2012-

FY2013 100% 1/1

012 AccessSystemImprovements Ongoing FY2012-

FY2013 100% 1/1Includescameras,doors,firecontrollers,servicecontract

Inprocess

016 IEQImprovements Ongoing FY2012-FY2013 115% 1/1

013 LightingImprovements FY2012-

FY2013 90% 1/1 $31,000AllocatedtoFLO

014 MegamationImplementation FY2012-

FY2013 50% 1/1

011 MinorADAimprovements

Onhold;onlycontinueessentialwork. FY2013 20% 1/1

015 CustodialClosetImprovement Onhold. FY2012-

FY2013 17% 1/1

009ImprovementstotheWWTPandStoragePonds

DesignonlyinFY2013.Bidapproved.EstimatedimplementationinFY14,

$150K

FY2013 0% 1/1

NEW BeamRepairs Approved2/25/13 FY2013 0% 1/1 Deferred

001 TransformerReplacement Designonly.Onhold. FY2012-FY16 0% 1/1 DesignpaidinFY2012

(Bond):$22,760

008 BASPhase2:R25Integration

DependentonsummerFY14

FY2012-FY2013 0% 1/1

TotalEstimatedCost:$642,000YTDExpenditures+Encumbrances:$578,783


FundIBudgetStatusTable15showsthecurrent,FY2013accountedGeneralFundbudgetalongsideyeartodateexpendituresthroughFebruary28,2013.

Table15:FY2013GeneralFundBudgetStatus

Category AccountedBudget

YTDActual Encumbrances $Remaining %Remaining

Materials&Services 3,041,082 1,670,598 294,205 1,076,280 35%

Personnel 3,793,429 2,549,630 - 1,243,799 33%

Total 6,834,511 4,220,228 294,205 2,320,078 34%

Source:BudgetOffice,Bannerdownload.

Asmentionedpreviously,certaingeneraloperatingexpenditureshavebeenincorrectlyclassifiedintoFundIVoverthepastfewfiscalyears.Table16presentscurrentFY2013expendituresinFundIVthatshouldhavebeenexpensedoutofFundIV.

Table17presentstheprojectedFMPFY2013generalfundbudgetbalancebothwithandwithoutfactoringinmisclassifiedexpenditures.Withoutreclassification,andwithcontinuingvigilancemanagingexpenditures,FMPisontracktostaywithinbudgetthisyearatcurrentservicelevels.

Table17:ProjectedFY2013GeneralFundBudgetBalance

CategoryFY2013Acct.Budget

2013Projectionwith

Reclassification13

ReclassifiedBudgetBalance

2013Projectionwithout

Reclassification

Non-ReclassifiedBudgetBalance

Materials&Services 3,041,082 2,772,170 268,912 2,544,925 496,157

Personnel 3,793,429 4,430,976 (637,547) 4,292,476 (499,047)

Total 6,834,511 7,203,146 (368,635) 6,837,401 (2,890)

13ProjectiondetailpresentedinTable7onpage13.

Table16:FY2013GeneralOperatingExpendituresExpensedtoFundIV

Category AccountedBudget

Materials&Services 227,245

Personnel 138,500

Total 365,745

Source:Reviewteamworksheet,Bannerdownloads2/8/13,3/1/13.


Issue

IfexpenditurespresentedinTable16abovearecorrectedthroughthejournalentryprocessandmovedintotheGeneralFund,FMPisprojectedtoexceedtheirGeneralFundbudgetbyapproximatelythereclassificationtotal.

FMPhastakenimmediateactiontopreventfuturemisclassificationfortheremainderoftheyear,andaspartofthereviewteam’sworkwewillimplementcontrolsforongoingclassificationintegrity.

Recommendation:Becauseclassificationshavebeenmuddledforseveralyears,thisissueisdirectlyrelatedtoresourceallocation,planningandcontrolissuesthatwillbeaddressedinPhaseIIofthereviewprocess,andreclassificationwillcauseasignificantgeneralfundshortfall,thereviewteamrecommendsnotreclassifyingtheFY2013expenditures.


FundIVBudgetStatusTable18showsthecurrent,FY2013accountedFundIVbudgetforplanning,maintenanceandcapitalimprovementalongsideyeartodateexpendituresthroughFebruary28,2013.

Table19presentstheprojectedFY2013FundIVbudgetbalance.ProjectedFY2013figuresreflectYTDactualexpenditures,plusencumbrances,essentialprojectcommitmentsandanallowanceforemergency/unplannedwork.

Notes:

• Projectionsassumeoperatingexpenditureswillnotbereclassifiedasdiscussedintheprevioussection.• ProjectionsdonotincludeadditionalBuilding4majormaintenanceasitisexpectedthatworkwillbefundedthroughcontingency/reserves.

Table19:ProjectedFY2013FundIVBudgetBalance

CategoryFY2013Acct.Budget

FY2013Projection

ProjectedBudgetBalance

Maintenance 1,210,293 1,382,409 (172,116)

CapitalImprovement 176,114 3,998 172,116

Total 1,386,407 1,386,407 0

14Funds411000,414000,41800015Fund41540016Includes$688,427NWC.$225,000transferredtomajormaintenance.

Table18:FY2013FundIVPlanning,Maintenance&CapitalImprovementBudgetStatus

FY2013Acct.Budget YTDActual Encumbrances $Remaining

%Remaining

Maintenance14 1,210,293 1,001,320 117,157 91,816 8%CapitalImprovement15 176,11416 3,988 - 172,116 98%Total 1,386,407 1,005,308 117,157 263,932 19%Source:BudgetOffice,Bannerdownload3.2.13.

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