M24 Looking Ahead: Capital Planning for Non-Profit Housing Societies November 18 th, 2013

Transcription

1 M24 Looking Ahead: Capital Planning for Non-Profit Housing Societies November 18 th, 2013 Presentation by Mary McWilliam, BCNPHA Director, Asset Management Jennifer Sanguinetti, BC Housing Director of Smart Buildings and Energy Management Martin Austin, BC Housing Manager of Capital Planning

2 Workshop Overview Joint Capital Planning Initiative 10 minutes Capital Planning Processes 20 minutes Activity #1 20 minutes Activity #2-25 minutes Closing and Q&A 10 minutes 2

3 Joint Capital Planning Initiative BCNPHA BC Housing partnership Objectives Coordinate activities Support housing providers Understand provincial funding needs 3

4 Goals Provide resources needed to capital plan: Building condition data Training Tools Understand capital needs: Develop funding requests Develop solutions 4

5 Stakeholders & Activities Education and training New member support programs Assistance with capital planning Non Profits Data use and updates Capital planning Procurement of condition assessments for unfunded sites BCNPHA BC Housing Software management and support to BCNPHA + BC Housing Data validation Ameresco Condition assessments Data collection and validation Provincial funding requests 5

6 Progress Building condition assessments In progress negotiations on discounted rate for non-profit procurement NEXT STEPS: Call for interest in non-profit procured BCA s BC Housing to prioritize funding for BCA s 6

7 Progress Training and Education NPPM s trained on process and activities BCNPHA capital planning introductory webinar NEXT STEPS: BCNPHA in-depth webinars BCNPHA working groups 7

8 Progress Resources BCNPHA and BC Housing team UPCOMING: Sample Excel capital plan template Capital planning checklists, best practices, etc. Capital planning case studies 8

9 Progress Ameresco s Asset Planner Software NP access to all reports and data NEXT STEPS: software training coordination of society user accounts evaluate demand to procure new software modules 9

10 Progress Capital Planning in Action Many societies engaged in some stage of capital planning process BC Housing support with quality control and data updates UPCOMING: BCNPHA assistance creating capital plans 10

11 Outcomes Year 1 General understanding of processes Creation of strong capital plans Year 2 Greater depth of knowledge and implementation of capital planning strategies Development of plan capitalization solutions Year 3 Implementation of capitalization solutions 11

12 Roles And Responsibilities 12

13 Today s Issues Aging infrastructure: on-going building deterioration Declining Asset value (real and perceived) Escalating costs (operating & capital) Shrinking capital renewal allowances Growing operating needs (utilities, etc.) Desire for extended building life 13

14 Capital Planning A long-term plan for physical and financial needs: Major repairs and replacements Typically a 25 to 30-year span Provides a firm understanding of budget needed to fund capital requirements and what those capital projects are. 14

15 How Can We Help? Building Condition Assessments (iauditor) External roster of 4 Prime Consultants Determine capital renewal liabilities and FCI on a current to 30 year timeline Assist HP with creation of Capital Plans 15

16 BCA Scheduling and Progress 22,416 units to date with information in AP 15,559 NP units (600 Sites) 6,857 DM units This Year s Schedule = 384 Sites (Approx.) NP: 271 DM: 35 GH: 78 16

17 BCA Schedule & Milestones 17

18 Asset Planner Establish initial model of your Portfolio Conduct on-site validation audits to confirm condition of components Establish a capital planning process to keep data current and use system 18

19 Basic Asset Details Required Facility Name Facility Age Facility Size Number of Floors Facility Type: Apartments: High-rise, Mid-rise, Low-rise Townhouses / Walkups Single Family Administration Parking Structures Other Facilities 19

20 Component Inventory Mechanical Heating Systems Ventilation Systems Air Conditioning Plumbing / Drainage Building Controls Fire Prevention Architectural / Structural Roofing, Windows, Exterior Doors Foundation & Exterior Walls Flooring & Ceilings Interior Walls / Doors / Millwork Painting & Window Coverings Accessories & Equipment Electrical Power & Distribution Interior Lighting Exterior Lighting Emergency Power Fire Alarm System Comm / IT Systems Security Systems Clock Systems Property / Site Roadways / Driveways Paving & Walkways Retaining Walls Landscaping Fencing Underground Utilities 20

21 How does it work? Buildings formed by components Components have life cycles Components have actions (capital needs) based on life cycles and validation Actions are prioritized 21

22 Asset Planner user interface 22

23 Asset Planner Summary Model and validate your Portfolio Establish baseline Facility Condition Index (FCI) Strategic Options Analysis Establish Long Term Capital Plans Real-time capital liability information at your fingertips 23

24 End Result Capital liabilities known Facility Condition Index (FCI) known Information available at the asset, development and portfolio level Information can also be sorted by asset type, location, construction year 24

25 Facility Condition Index (FCI) Industry Standard Used to Track Condition Performance of Facilities / Portfolios: FCI = Total building repair and replacement needs ($) Current replacement value of building components ($) FCI Target GOOD Range: FCI (0% - 5%) FAIR Range: FCI (5% - 10%) POOR Range: FCI (10%-30%) CRITICAL Range: FCI (> 30%) FCI Target 25

26 BCA Report 26

27 Need Report 27

28 Life Cycle Report Component Component : Replacement Value Last Major Action Year Component : Brief Description Overall Condition Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 A10 Foundations $ 5, The foundation walls appear to Good A20 Basement Construction $ 48, Poured concrete basement floor. Good B2010 Exterior Walls $ 20, Aluminum siding. Good B2020 Exterior Windows $ 9, Windows and caulking. Good $ 9,800 B2030 Exterior Doors $ 20, The majority of doors were Good B30 Roofing $ 2, Asphalt shingle roof. Good C1020 Interior Doors $ 23, Doors. Poor $ 23,774 C1030 Fittings $ 15, Kitchen. Good C3010 Wall Finishes $ 19, Wall finishes. Good $ 3,400 $ 3,400 $ 3,400 C3020 Floor Finishes $ 9, Hardwood flooring. Good C3020 Floor Finishes $ 9, Ceramic tile. Good C3020 Floor Finishes $ 9, Carpet. Good $ 245 C3030 Ceiling Finishes $ 13, Paint on plaster ceilings. Good $ 1,720 $ 1,720 $ 1,720 D2010 Plumbing Fixtures $ 44, Plumbing fixtures. Good D2020 Domestic Water Distribution $ 24, Water supply piping. Good D2030 Sanitary Waste $ 22, Sanitary Waste Piping Fair $ 22,968 D2040 Rain Water Drainage $ 2, Eaves troughs, downspouts, soffit, and fascia. Poor $ 1,560 D2095 Domestic Water Heaters $ 2, Gas fired water tank. Fair D3023 Furnaces $ 2, Forced air gas furnace. Good $ 12,400 D3045 Exhaust Ventilation Systems $ 2, Exhaust fans. Good $ 900 D5010 Electrical Service And Distribution $ 11, Electricity is distributed to all Good D5021 Branch Wiring $ 44, Good D5022 Lighting Equipment $ 9, Lighting fixtures. Good D5037 Fire Alarm System $ 2, Smoke detectors and pull stations. Good D5091 Exit & Emergency Light Systems $ 1, Emergency lighting. Poor $ 2,550 D5098 Electric Baseboard Heat 1902 Good E1041 Residential Appliances $ 8, Refrigerators, freezers, and Poor $ 1,200 E1042 Laundry Room Equipment $ 10, Washers and dryers. Good $ 600 G2010 Roadways $ 1, Driveway. Poor $ 1,200 G2020 Parking Lots $ 9, Parking Lot. Poor $ 9,500 G2030 Pedestrian Paving $ 1, Concrete pad. Good G2040 Site Development $ 1, Fencing. Good G2050 Landscaping $ 1, Plantings and landscaping. The Good $ 1,200 G3030 Storm Sewer $ 3, Surface drainage. The property is Good G4020 Site Lighting $ 1, Site Lighting Good $ 29,084 $ 10,700 $ 22,968 $ 0 $ 6,865 $ 5,120 $ 28,520 Cumulative Renewal Requirement = $ 29,384 $ 39,785 $ 62,753 $ 62,753 $ 69,618 $ 74,738 $ 103,258 Funding : Cumulative = $ 3,025 $ 6,050 $ 9,074 $ 12,099 $ 15,124 $ 18,149 $ 21,174 Unfunded Liability = $ 26,359 $ 33,735 $ 53,679 $ 50,654 $ 54,494 $ 56,589 $ 82,085 (Benchmark Cost based on Template) FCI = 7.91% 14.65% 20.74% 21.98% 23.82% 25.37% 30.24% FCI without Funding 8.77% 16.38% 23.32% 25.43% 28.13% 30.54% 36.27% 28

29 Your Next Steps for Capital Planning Need more information on the process? Want to know more about how to create a longterm capital plan? Want to independently procure a BCA? BCNPHA will connect you with the best resources and assistance to take your next steps; call us! 29

30 BCNPHA Support and Services BCNPHA Asset Management Energy Management Capital Planning Energy Audits + Project Assistance Navigation through incentive programs Education + Assistance with Capital Plans 30

31 Education and Support Activities Web-based training Regional training sessions Capital Planning resources General information FAQ Best practices Templates & software solutions One on one support 31

32 Questions + Discussion Period 32

33 Strategy for Stretching Capital Dollars Energy Retrofits in Non-Profit Housing Portfolio 200 societies High efficiency retrofits to lighting systems Utility incentive programs = $2.7 Million in avoided capital dollars! BC Housing Energy Efficiency Retrofit Program = over $1.5 Million in avoided capital dollars Utility cost impact = savings of $500,000/year 33

34 Activity #1 Solutions to Implement Capital Plans Create a brainstorm list 8 minutes 1. Strategies to stretch the value of each capital dollar 2. Strategies to help you capitalize a plan 34

35 Activity #1 Solutions to Implement Capital Plans Rank top 3 strategies - 2 minutes 35

36 Activity #1 Solutions to Implement Capital Plans Present top 3 strategies to room - 10 minutes 36

37 Activity #2 Lessons Learned Create a brainstorm list 10 minutes Lessons learned Resources Needed 37

38 Activity #2 Capital Planning Lessons Learned Rank top 3 lessons - 1 minute Rank top 3 resources needed 1 minute 38

39 Activity #2 Capital Planning Lessons Learned Present to room - 10 minutes top 3 lessons top 3 resources 39

40 Workshop Follow-up We will be compiling into our upcoming best practices publications your strategies and experiences on: 1. Maximizing the value of each capital dollar 2. Strategies to help capitalize a plan 3. Lessons learned 40

41 Have more questions? Contact BCNPHA for further assistance creating your capital plan. Mary McWilliam Director, Asset Management Tel ext. 226 Toll-Free Contact BC Housing for further assistance procuring a BCA. Martin Austin Manager, Capital Planning Tel maustin@bchousing.org Jennifer Sanguinetti Director, Smart Buildings and Energy Management Tel jsanguinetti@bchousing.org 41