Facilities Services: The Next Generation. November 8, 2017

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1 Facilities Services: The Next Generation November 8, 2017

2 THANK YOU!!! WE MADE IT HAPPEN!

3 Square Footage (millions) Square Footage Dip in 2016 was mostly due To Strong Hall demolition Fiscal Year

4 Pre Acres Enhanced Grounds: total acres maintained have increased 30% while acres receiving enhanced care have gown more than 1,100 percent Fiscal Year

5 Actual Spend (millions) Costs per square foot Costs per Square Foot Flat While Growth Continues Master Plan Campus transformation Costs Per Sq Ft Fiscal Year Spend Inflation Adjusted Costs per Sq Ft

6 JLL Proposal Things to consider. Not a fixed price contract Savings are not guaranteed Proposal is only an estimate based on 2017 actual spend Cost-plus contract Campus is charged for all services Based on reinvestments budgets have fluctuated over past six years, making it difficult to get a true baseline. Extra charges incurred when baseline volumes with JLL are exceeded (e.g., work orders, special events, or items not in scope) Negative impact on local ($6M) and State economy JLL has no Tier 1 higher education or Power 5 athletics experience Loss of flexibility

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8 Vendor Proposal Year 1 E&G Auxiliaries Total Proposed savings year one 3,645,366 1,619,194 5,264,560 Adjustments Contract Management 1-742, , ,450 JLL Incentive 2-364, , ,456 Contingencies 3-275, , ,000 Annual leave payments 4-1,800, ,000-2,450,000 Total adjustments -3,182,037-1,175,869-4,357,906 Revised savings year one 463, , ,654 NOTES: 1) JLL Estimate Savings $5,264,560 is NOT a BID- it is based on their Experience 2) Adjustments shown are conservative estimates and do not include all Contract Costs. 3) FS Cost Saving Plan Based on ACTUAL CONSERVATIVE PROPOSALS.

9 Millions Campus Efficiencies and Savings For FY18, $2.4 million was reallocated from energy savings to the academic mission $2.5 Million (Annual leave payout) $3.7 Million Energy $1.1 Million (Auxiliary) JLL projected base proposal savings $3.3M 1.0 $2.2 Million (E&G) Facilities Management Outsourcing Decision FS Initial Saving Estimate based on CONSERVATIVE ACTUAL PLANS

10 FACILITIES SERVICES: THE NEXT GENERATION

11 UT Can t Reach our Top 25 and Masterplan Goals without our Facilities Group being Top 25. Chancellor Jimmy Cheek Facilities is integral to the Core Mission. Chancellor Beverly Davenport

12 Regular E&G FTE FS Dept E&G Regular FTE-Filled Positions /30/ /30/ /30/ /30/ /30/ /30/ /30/ /30/2017 FTE Fiscal Year End FTE FY18 Facilities Services E&G Budgeted Positions- 637 an increase of 130 positions FY18 Facilities Services Total Budget Positions- 718 From FY10 to FY18 Positions in Facilities Services INCREASED OVER 25%

13 FS Department Base Budget $35,000,000 FS Dpt E&G Budget $30,000,000 $28,379,542 $29,036,152 $29,787,879 $26,342,802 $25,000,000 $20,000,000 $19,524,742 $19,620,632 $21,186,273 $22,085,998 $23,405,979 $15,000,000 $10,000,000 $5,000,000 $ Fiscal Year FS Dpt Budget Linear (FS Dpt Budget) From FY2010 to FY2018 Facilities Services E&G M&O Budget alone increased over $10,263,000. BUDGET INCREASED OVER 53% These Increases do NOT include MAJOR increases in Deferred Maintenance, Renovation, Project and Capital Funds

14 Millions Campus Efficiencies and Savings For FY18, $2.4 million was reallocated from energy savings to the academic mission $2.5 Million (Annual leave payout) $3.7 Million Energy $1.1 Million (Auxiliary) JLL projected base proposal savings $3.3M 1.0 $2.2 Million (E&G) Facilities Management Outsourcing Decision FS Initial Saving Estimate based on CONSERVATIVE ACTUAL PLANS

15 Facilities Services:Next Generation Cost Savings Plan Item FY17 FY18 FY19 FY20 FY21 FY22 Contract Saving $ 238,500 $ 303,500 $ 303,500 $ 303,500 $ 303,500 $ 303,500 Energy Conservation $1,615,000 $1,405,000 $2,355,000 $2,950,000 $3,395,000 $3,690,000 FS Operations Savings $ 193,000 $1,205,000 $1,257,000 $1,302,000 $1,347,000 OPERATIONS SAVINGS $1,853,500 $1,901,500 $3,863,000 $4,510,500 $5,000,500 $5,340,000 Vacant Unfilled Positions $ 416,600 $ 416,600 $ 416,600 $ 416,600 $ 416,600 $ 416,600 Position Funding Reallocated $ 518,400 $ 518,400 $ 518,400 $ 518,400 $ 518,400 $ 518,400 LABOR SAVINGS $ 935,000 $ 935,000 $ 935,000 $ 935,000 $ 935,000 $ 935,000 TOTAL SAVINGS 2,788,500 $2,836,500 3,771,000 $5, $5,935,500 $6,275,500 NOTES: 1) JLL Estimate Savings $5,264,560- but is NOT a BID. 2) FS Cost Saving Plan Based on ACTUAL CONSERVATIVE PROPOSALS. 3) Plan assumes not filling 16.5 CURRENTLY VACANT positions- out of 126 currently Vacant.

16 FACILITIES SERVICES GOALS Serve the University of Tennessee Campus Community by Providing and MAINTAINING Top Facilities Support the VolVision, Long range Masterplan and Top 25 Goals

17 FACILITIES SERVICES/REORGANIZATION PRINCIPLES Increase Campus Maintenance Increase Consultant, Contractor & Projects Oversight CUSTOMER FOCUSED, PROACTIVE LEADERS Re-orient our Team to New Roles & New Challenges Distribute Authority and Responsibility Deepen Our Bench

18 Facilities Services: Next Generation Opportunities Increased Enrollment, Faculty and Staff Significantly Increased Research Increased On Campus Housing and Student Life New Academic, Research and Student Life Masterplans New Recreation, Transportation, Residence Hall Masterplans New Capital, Landscape and Facilities Renewal Masterplans Maintain Additional Net 1,627,000+ SF of Extensive Landscape Maintain Additional 25 Acres and Buildings at Concord Maintain Additional Net 2,400,000+ SF of Buildings Program/Plan Extensive Capital & Landscape Improvements Manage $1B+ New Construction Manage $50M+ in Classroom/Lab Renovations Manage $25M in Exterior/Landscape Upgrades Manage $50M+ in Facility Renewal INCREASED DEMAND FOR CUSTOMER SERVICE

19 Facilities Services: Next Generation Opportunities Restore Our Service to Our Standards Increase Efficiencies with an Initial Budget and Position Reduction Manage by Data, Benchmarks and Matrices Continual Reporting and Monitoring to Demonstrate Our Efficiencies and Effectiveness Update/Expand Use of Archibus including Project Management and other Modules Increase Mobile Devices thruout FS Implement New Tools and Cutting Edge Practices like BIM Continue/Expand Procurement Cost Savings and Efficiences Streamline Administrative Processes and Procedures Improve Energy Conservation/Implement ECMs Increase Building Recommissioning/Balancing Increase FS Fleet Efficiency/Green our Fleet Partner with Other Institutions and Teams CONTINUE TO BE THE FLAGSHIP LEADING BEST PRACTICES

20 Facilities Services: Next Generation Opportunities Replace Key People and Experience Lost During the Outsourcing Discussion Plan for Those Key Team Members who will Eventually Leave our Team THE NEXT GENERATION Implement Career Paths and Opportunities Work on Market Salaries Increase Training and Development Increase use of APPA and other National Resources Provide Opportunities for In House Team members to Advance Expand Mentoring, Shadowing Management Training- for Future AND Current Managers BECOME A TOP 25 FACILITIES TEAM

21 BIG ORANGE BIG IDEAS BIG TEAM BIG PLANS

22 WE made it happen this time! And we will again!

23 Energy Conservation Measure Savings Item FY17 FY18 FY19 FY20 FY21 FY22 1 Revolving Fund $165,000 $165,000 $275,000 $330,000 $385,000 $440,000 2 Previous Maintenance $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 3 Steam Plant $1,200,000 $900,000 $900,000 $900,000 $900,000 $900,000 4 Maintenance LED $90,000 $180,000 $270,000 $360,000 $450,000 5 Garages LED $300,000 $300,000 $300,000 $300,000 6 Retro Commissioning (net) $150,000 $300,000 $450,000 $450,000 7 Energy Manager (net) $300,000 $600,000 $750,000 $900,000 Total $1,615,000 $1,405,000 $2,355,000 $2,950,000 $3,395,000 $3,690,000 Contract Savings (E&G) Item FY17 FY18 FY19 FY20 FY21 FY22 1 Elevator Contract $173,500 $173,500 $173,500 $173,500 $173,500 $173,500 2 UT Market Place $65,000 $130,000 $130,000 $130,000 $130,000 $130,000 Total $238,500 $303,500 $303,500 $303,500 $303,500 $303,500 Facilities Operation Savings Item FY17 FY18 FY19 FY20 FY21 FY22 1 Hand Dryers-Costs $0 -$570,000 $0 $0 $0 $0 2 Hand Dryers -Savings $0 $0 $283,120 $283,120 $283,120 $283,120 3 Hand Dryers - Plumbing $0 $0 $44,928 $44,928 $44,928 $44,928 4 E&G Improvements $0 $504,233 $504,233 $504,233 $504,233 $504,233 5 Painting FTE Savings $0 $165,900 $165,900 $165,900 $165,900 $165,900 6 BIM $0 $0 $75,000 $100,000 $125,000 $150,000 7 Recycling FTE $0 $8,160 $12,060 $15,960 $15,960 $15,960 8 Recycling diversion $0 $20,000 $40,000 $60,000 $80,000 $100,000 9 UT Warehouse Lighting $0 $67,432 $67,432 $67,432 $67,432 $67, Vendor Misers $0 -$3,436 $12,649 $16,084 $16,084 $16,084 Total $0 $192,289 $1,205,322 $1,257,657 $1,302,657 $1,347,657