APPA Standards and Codes Council Activities Report to the APPA Board of Directors February 2016

Transcription

1 APPA Standards and Codes Council Activities Report to the APPA Board of Directors February 2016 Chair: Brooks Baker, III Staff Liaisons: John Bernhards, Associate Vice President Sam Waymire, Council Administrator The APPA Standards and Codes Council (ASCC) continues to advance its mission (attached as Addendum A to this report) on behalf of APPA members. The following is an update on key activities of the ASCC that have occurred since the previous APPA Board meeting held in August 2015: Update on Total Cost of Ownership Standards Activity As reported in August, the ASCC approved a draft framework document and scope of work for purposes of establishing a Total Cost of Ownership (TCO) ANSI Standards Work Group. This framework was presented as part of a conveners forum and briefing, as well as an APPA 2015 conference session occurring the following day, at the Sheraton Hotel and Towers in Chicago, Illinois. Together, both events attracted well over 100 participants. The sessions encouraged all subject matter experts and stakeholders with a material interest in a TCO standards program to offer initial comments and suggestions on the framework document. Following the forum and briefing, an ANSI Project Initiation Notification or PIN for the first of several TCO standards to be developed was sent to ANSI for public review and approval. The first standard is identified as APPA 1000, Total Cost of Ownership (TCO) for Facilities Asset Management. The approval was received from ANSI and with no public objections in November The PIN is attached as Addendum B to this report. In accordance with its ANSI-approved standards development operating procedures, the ASCC took steps to publicly announce to audiences -- both internal and external to APPA -- the creation of the TCO Standards Work Group, via press releases, the APPA web site, and an article published in the November-December issue of Facilities Manager Magazine (see alcostofownershipseptoct2015.pdf The effort was also announced to the Federal Facilities Council at the National Academy of Sciences in November. The presentation slide deck is attached as Addendum C. Relevant comments and input from the conveners forum and TCO conference session were incorporated within an expanded draft document developed by the TCO Steering Committee Chairs (Doug Christensen, Ana Thiemer and Deke Smith). Concurrent with the development of the draft framework document, APPA has received interest from more than 70 subject matter experts and stakeholders to serve on the TCO Committee. It should be noted that the interest in creating a TCO Standard has expanded beyond the education sector, as participation in the 1

2 APPA/ANSI TCO Committee is sought by a variety of public companies and organizations not normally associated with the educational facilities sector. The ASCC will announce the TCO Committee members in late February and will convene the committee in March to review and ultimately approve the draft framework document before beginning work on APPA NFPA Fire Sprinkler Code Workshop At NFPA s invitation, APPA represented the education facilities sector in a two-day Sprinkler System Workshop held December in Orlando, Florida. Over 70 subject matter experts, NFPA 13 committee leaders and other stakeholders were in attendance for the event to offer observations and recommendations for improvement to the current 2016 edition of NFPA 13 and NFPA 13R. The findings of the Workshop will be published by NFPA in early summer A key focus of the workshop is current controversy regarding NFPA 13R, Standard for the Installation of Sprinkler Systems in Low-rise Residential Occupancies. Questions about the effectiveness of the NFPA 13R standard have been raised as a result of recent high-profile fire incidents, to include the Tivoli Apartments three-alarm fire On July 12, The Tivoli Apartment development is a privately-owned off-campus residential complex adjacent to the University of Central Florida. Among the oldest of NFPA standards (the first version was written in 1896), NFPA 13 is a fire sprinkler system standard designed to accommodate all buildings, and to provide both life safety and protection to the facility and its assets to include unoccupied spaces (attics, closets, etc.). In contrast, NFPA 13R provides a high but not absolute level of life safety to building occupants in residential properties that are four stories or less in height, yet a lesser degree of property protection than NFPA 13. NFPA 13R was first developed in 1989 and in response to stakeholders seeking a more cost-effective solution that was specific to low-rise residences, in contrast to NFPA 13 compliant sprinkler systems. The key distinctions between NFPA 13 and NFPA 13R are: NFPA 13R commonly allows for the elimination of fire protection in attics, closets, porches, balconies, and certain bathrooms NFPA 13R allows for a lesser water discharge demand from the sprinkler system, leading to smaller pipe sizes NFPA 13R allows for a shorter duration of water supply than NFPA 13. In situations where water storage tanks supply the sprinkler system, a smaller tank can be used. An APPA member survey conducted by the ASCC in advance of the Workshop suggests that few institutions are presently using NFPA 13R as the code of choice for on campus residence halls under four stories in height. 2

3 Observations from the Workshop In general, most participants in the NFPA Workshop view NFPA 13R as a standard that meets its primary objective of life safety. However, there was agreement that opportunities exist to further improve the standard. Additionally, it was agreed that there needs to be greater awareness among stakeholders most notably owners and tenants of the goals as well as the limitations of differing fire sprinkler systems, so that prudent installation decisions can be made and expectations best served. At least one insurance industry representative present indicated that his company will not insure buildings using NFPA 13R approved systems. Also observed was that the increasing use of manufactured synthetic materials found in construction, furniture and household items poses the risk of spreading fires more rapidly. The increasing popularity of wood framing in low rise residences, and whether the intent and goals of NFPA 13R can be realized as envisioned as when the standard was first introduced prior to increased use of wood framing, were raised as additional concerns. The ASCC will notify the APPA membership upon publication of the Workshop findings, and the APPA NFPA Work Group will monitor proposed changes and report to the membership, as the current version of the standard undergoes review this calendar year. APPA Informatics Work Group The Informatics Work Group conducted its inaugural meeting on October 15 in Chicago, Illinois, with 16 persons from 14 institutions present, plus two APPA staff members (Sam Waymire and John Bernhards). The Workgroup is co-chaired by Chris Smeds (University of Virginia) and Markus Hogue (University of Texas at Austin). As defined by the Work Group, Facilities Informatics (FI) as the intersection of facilities, IM/IT and management practices to support better facilities. It involves the application of information technology to facilitate the creation and use of facilities related data, information and knowledge. It draws on expert knowledge from a variety of fields to include computer science, information management, cognitive science, communications, facilities management and management sciences. The ASCC has tasked the Work Group to establish an APPA standard that identifies needed Informatics terms and definitions, as well as other documentation that would support facilities informatics applications. Examples of facilities informatics applications include the design, development, implementation, maintenance and evaluation of: Communication protocols for the secure transmission of facilities data Electronic facilities record systems (regionally, provincially, territorially or nationally) Evidence-based decision support systems Classification systems using standardized terminology and coding Work management systems Facilities monitoring systems (e.g., computer controlled BAS systems) 3

4 Digital imaging and image processing systems Geospatial systems Telework and mobile technologies to facilitate and support remote diagnosis and treatment Internet technology for engaging customers Methodologies and applications for data analysis, management and mining Facilities information data warehouses and reporting systems Business, financial, support and logistics systems In its October meeting, the Informatics WG identified the following four key delivery areas and established four sub groups to further concentrate and refine the overall WG activities and deliverables: 1. The Data Sub group will explore creation of a delivery system whereby institutional facilities data, to include specific building data, can be aggregated across different institutions in real time and deposited into a common, searchable database maintained by APPA. It is anticipated that a beta test of a proposed system will be established by the sub group at some juncture among volunteer institutions participating in the WG, and perhaps others external to the WG. 2. The Living Labs Sub group is exploring opportunities to expand understanding of and engagement within Facilities Informatics among university and college students. Among the discussions held to date are (1) possible development of an interactive app developed by students and (2) a Facilities Informatics/Living Labs contest whereby higher ed students can share and exhibit FI projects they have led on behalf of their campus. 3. The Informatics Maturity Sub group is creating a maturity index that a college campus can use to assess its adoption of Facilities Informatics and use of FI in business processes and decision making. It has been noted by the WG that the health care sector has advanced the concept of c a health informatics maturity index and the view of the WG is that a similar approach would be of great value to education sector. 4. The Business Case Sub group will evaluate ways to enhance visibility and adoption of Facilities Informatics, using business case studies among other vehicles, among higher education administrators and business officers, and regents. APPA NFPA Work Group In September 2015, the ASCC approved the formation and scope of work for the APPA NFPA Work Group (NFPA WG). A convener s meeting announcing the formation of the NFPA WG was held on November 13 via web conference, with the first WG occurring on December 10. The WG is chaired by Brooks Baker, who serves as the ASCC Chair. The NFPA WG is tasked with the following responsibilities on behalf of APPA: 1. Track and monitor the revision cycle for all NFPA standards and codes relevant to APPA member institutions, to include the NFPA 70, the National Electric Code (NEC). 2. Using the ASCC Work Group Operating Procedures prepare proposed changes during the public comment periods as supported by APPA membership. 4

5 3. Review, propose changes and, where necessary, solicit, collect, and analyze input received from APPA members prior to an established deadline on proposed changes to the NFPA standards and codes 4. Make recommendations to the Council on any changes recommended for formal proposal to the NFPA. 5. Publish information through APPA to raise awareness of current requirements and pending changes found within the NFPA standards and codes. 6. Provide representation and oral comments, where needed, on NFPA standards committees, public hearings, task forces and workshops. 7. Prepare and submit formal proposals for any recommended changes to NFPA standards and codes for review and approval by the ASCC. 8. Report unsatisfactory outcomes to the ASCC for further direction. 9. Work in collaboration with the Center for Campus Fire Safety s standards program, to develop joint positions where possible. In its first meeting, the Work Group identified 22 key or Most Critical NFPA standards impacting the education sector and its facilities and infrastructure: 1. NFPA 1: Fire Code 2. NFPA 13: Standard for the Installation of Sprinkler Systems 3. NFPA 4: Standard for Integrated Fire Protection and Life Safety System Testing 4. NFPA 45: Standard on Fire Protection for Laboratories Using Chemicals 5. NFPA 70: National Electrical Code 6. NFPA 72: National Fire Alarm and Signaling Code 7. NFPA 101: Life Safety Code 8. NFPA 150: Standard on Fire and Life Safety in Animal Housing Facilities 9. NFPA 1600: Standard on Disaster/Emergency Management and Business Continuity Programs 10. NFPA 1616: Standard for Mass Evacuation and Sheltering 11. NFPA 5000: Building Construction and Safety Code 12. NFPA 3 Recommended Practice for Commissioning of Fire Protection and Life Safety Systems 13. NFPA 20 Standard for the Installation of Stationary Pumps for Fire Protection 14. NFPA 24 Standard for the Installation of Private Fire Service Mains and Their Appurtenances 15. NFPA 25 Standard for the Inspection, Testing, and Maintenance of Water-Based Fire Protection Systems 16. NFPA 30 Flammable and Combustible Liquids Code 17. NFPA 80 Standard for Fire doors and Other Opening Protectives 18. NFPA 90A Standard for the Installation of Air-Conditioning and Ventilating Systems 19. NFPA 96 Standard for Ventilation Control and Fire Protection of Commercial Cooking Operations 20. NFPA 99 Health Care Facilities Code 21. NFPA 110 Standard for Emergency and Standby Power Systems 22. NFPA 211 Standard for Chimneys, Fireplaces, Vents, and Solid Fuel-Burning Appliances 5

6 Existing Work Group members as well as other Subject Matter Experts from the membership are now being invited to participate as leads for each of the 22 standards and to coordinate information and action recommendations back to the Work Group members. Memorandum of Understanding Established with Center for Campus Fire Safety In APPA s ongoing efforts to expand collaboration with external organizations, the ASCC opened an opportunity to establish a Memorandum of Understanding between APPA and the Center for Campus Fire Safety (CCFS), a US-based member organization of fire and life safety professionals in higher education. The signed MoU calls for collaborative efforts on several fronts, to include alignment of contributions and proposed code changes to the International Fire Code (IFC) and to the NFPA standards development process. For APPA and CCFS to join forces on codes and standards issues will help establish congruency in recommendations to the NFPA and ICC, on behalf of the education sector. To kick off the MoU, APPA offered a presentation on School Security at the CCFS Conference General Session held in November The session was well received and presented by Alan Sactor (ASCC member and CCFS Board Member) and John Bernhards (APPA Associate Vice President). ASIS/NFPA Active Shooter Stakeholder Meeting The ASCC sent Sam Waymire to represent APPA at the ASIS/NFPA Active Shooter Stakeholder Meeting, held on January 19 th, 2016 in Arlington, VA. ASIS is an international association of security professionals and, like APPA, an ANSI standards developer. This meeting served as a follow up to the December 2014 NFPA School Security Workshop held at the University of Maryland. The Arlington meeting brought together representatives of more than fifty industry groups, standards development organizations, and members of the law enforcement, fire, EMS, government, and academic communities, for the purpose of considering what and where are the existing resources to address active shooters, and to examine the crossover between security and fire safety discipline intersections. It was noted that the meeting was not held to endorse or select a specific technology or program as a one-size-fits-all solution, but to examine gaps in exchange knowledge and to lean on the expertise of the individuals in attendance to determine a more viable path forward. The meeting opened with a discussion of the definition of an active shooter, along with a review of pertinent statistics collected by the FBI. It was noted that, with the average active shooter situation lasting under fifteen minutes, policies related to preparedness for such occurrences are mostly centered on buying time before law enforcement and EMS can arrive. Additionally, it was revealed that over the last several years, the number of active shooter incidents and the number of casualties related to these incidents have been trending upward. Following the introduction, three breakout groups were formed which held open discussions on the following topics: 6

7 The budgetary constraints of implementing policies relating to active shooter preparedness and awareness The role of management and leadership in the aforementioned programs The role of technology solutions Key players and different roles of the public and private sectors Among participants, there was clear consensus that the momentum gained during this meeting be maintained. Many agreed that one viable next step might be to compile a road map of existing documented procedures and policies, in order to deliver a suite of best practices in a unified format. Participants also agreed that any solutions developed as a part of this activity represent a unified approach between the public and private sectors, and avoid informational silos if at all possible. Finally, there was clear consensus that the work started at this gathering be continued by way of future virtual meetings. ICC B Codes Changes and Recommendations Members of the ICC I-Codes Work Group that participated during the Group A cycle of codes were contacted in October 2015 and asked if they were interested in resuming activity within the group during the Group B cycle, which consists of the International Energy Conservation Code (IECC) and the International Fire Code (IFC). Once returning members were identified, the I- Codes Work Group established an online Code Change Submission Portal, through which the APPA membership could submit ideas for potential code changes for the review of the work group. The next step for the I-Codes Work Group will be to review the proposals submitted to ICC on behalf of other organizations that are pertinent to the interests of the educational facilities sector, which are expected to be made available in March. The work group will collaborate with APPA s standards and codes consultant, Koffel & Associates, to identify and prioritize which proposals demand additional scrutiny. Finally, the work group will offer recommendations to the ASCC regarding the proposals they have deemed eligible for comment, support, or opposition. ASHRAE 2016 Winter Meeting The 2016 ASHRAE Winter Conference was held from January 23 rd - 27 th in Orlando, FL. David Handwork, a member of the ASCC and participant within the Mechanical Subcommittee (MSC) of the Standing Standard Project Committee (SSPC) for ASHRAE 90.1 (Energy standard for Buildings Except Low-Rise Residential Buildings) was in attendance and offered a report of his findings and observations to the ASCC. Mr. Handwork also offered observations related to the newly formed ASHRAE (Standard for the Design of Higher-Performance Green Building) committee. 7

8 Up for review within the MSC meeting was an addenda that would modify requirements for chiller plant metering/ energy measurement for water cooled chillers greater than 1500 tons in northern climate zones, and 1000 tons in all other climate zones. The addenda also imposed requirements on air cooled chillers greater than 860 tons in northern climate zones, and 570 tons in all other climate zones. Mr. Handwork noted no objections to the addenda, but elevated it to the ASCC for further consideration with regard to its impact on the full APPA membership. During the meeting of the full 90.1 SSPC, another addenda to the standard was reviewed, which, if approved, would simplify and reduce the prescribed lighting power densities (LPDs) for schools and office buildings. The basis for this proposed addenda is LED lighting technology, which has been proven to provide attractive savings and a quick ROI (fewer than three years) on certain campuses. However, it was noted that this may not be the experience of all APPA member campuses, and for this reason it is possible that the addenda may not be supported by 100% of the APPA constituency. Should the addenda be approved, the earliest it could appear would be in , which will not be adopted in most jurisdictions until Additionally, the addenda could potentially appear in the 2021 cycle of the IECC, as it missed the deadline for the 2018 cycle. During the meetings, it was noted that this committee had a higher concentration of organizations and associations in attendance than were present at the meetings for 90.1, which were more biased towards manufacturers. As a new committee, the early discussions for related to whether or not the standard produced by the committee should be prescriptive or performance based. A mild consensus in favor of a performance based approach emerged, yet there was disagreement on the scope of what performance could entail, and as well as what metrics might be used to enforce this performance. ISO Facilities Management Technical Committee (ISO TC 267) The International Standardization Organization ISO) TC 267 committee is awaiting approval by ISO on its first two ISO standards, presently in final draft form: Facilities Management Part I: Terms and Definitions and Facilities Management Part 2: Guidance on Strategic Sourcing and the Development of Agreements. It is anticipated that both standards will be approved by ISO sometime in A framework document for a third proposed standard, to be entitled Facilities Management Integrated Management System Requirements (with Guidance for Use), was approved by TC 267 in June Ted Weidner, CEFP (Purdue University and ASCC member) was first endorsed by APPA and then by the ANSI US delegation to ISO TC 267, to serve as the work group chair that will develop the systems standard. His endorsement was unanimously approved by the TC 267 delegates during the TC 267 fall meeting in Denver, Colorado. Participating on the newly established Work Group are Ted Weidner (ASCC member), Brooks Baker (ASCC Chair) and APPA AVP John Bernhards. As reported previously, the System Management standard is of particular interest to the ASCC, because the standard will address facilities management leadership, performance metrics and 8

9 evaluation, and other areas in which APPA s own programs and services are widely known for and used (e.g., Facilities Performance Indicators, Facilities Management Evaluation Program, etc.). The ASCC believes it is important to monitor and participate where possible in the development of the Management System standard as part of future Work Group delegations and as active participants on the US TAG. This will ensure that the educational facilities practice developed by members and embodied in APPA s programs are consistent with internationally recognized practices, and enable APPA to demonstrate leadership in facility practices globally. Additional information on the activity can be found in the November/December edition of Facilities Manager (see Ted Weidner s article, ISO International Standards for Facility Management, ) APPA Standards and Codes Council Members Brooks Baker III, Chair Richard J. Davis, P.E., J.D., The Evergreen State College David Handwork, Arkansas State University Clint Lord, Arizona State University Dana Peterson, University of New Hampshire Alan Sactor, University of Maryland at College Park Theodore Weidner, Purdue University John Bernhards, APPA Associate Vice President (Staff Liaison) Sam Waymire, APPA Council Administrator (Staff Liaison) 9

10 Addendum A APPA Standards and Codes Council Mission Statement 1. To promote Codes and standards AWARENESS and EDUCATION among member institutions. The Council seeks to make APPA members aware of the codes and standards that impact the institutional mission. This is accomplished by conducting online webinars; presentations before APPA members at international and regional conferences; presentations to members at events and conferences external to APPA; and articles and contributions to magazines and newsletters serving the education sector. 2. Determine the IMPACT of existing and proposed standards and codes on educational institutions. The Council regularly evaluates emerging and existing standards and codes produced by national and international standards bodies, as well as government and regulatory agencies, in order to assess their relevance and support to the educational facilities environment, as well as evaluating the resource and financial impacts of compliance. Additionally, the Council seeks to serve as a watchdog for purposes of ensuring that the needs of APPA member institutions are not negatively impacted as a result of unfair or inappropriate standards development practices. 3. INFLUENCE standards and code development process and outcomes. To accomplish this objective, the Council actively engages in the standards development and review process among the following: a. Standards Development Organizations (SDOs) b. Agency/government level standards setting organizations c. Where it is practical and logical to do so, establish standards and codes on behalf of APPA and the educational facilities profession. 4. Set parameters and display APPA s LEADERSHIP on standards and codes, and seek pragmatic solutions to the standards needs and requirements of educational institutions. 10

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12 9/29/2015 ANSI WEB PINS FORM << PREVIOUS REQUEST PRINT REQUEST BACK TO FORM NEXT REQUEST >> NOTE: A record of this submittal must be retained as documentation subject to ANSI Audit. ANSI WEB PINS FORM : STANDARDS ACTION PUBLIC REVIEW REQUEST *NOTE: Adoptions of ISO or IEC standards require compliance with ANSI's Sales & Exploitation Policy. Accredited Standards Developer Information First Name Last Name Organization Developer Acronym John Bernhards APPA Leadership in Educational Facilities APPA Address City State Zip 1643 Prince Street Alexandria Virginia E Mail Phone Fax john@appa.org PINS Standard Action Request Form Complete the form below for each Standards Action Request. Hit ADD REQUEST to add each additional standard to your submittal Designation of Proposed Standard APPA 1000 Project Intent Create new ANS Title of Standard Total Cost of Ownership (TCO) for Facilities Asset Management Supersedes or Affects Project Need Establish a common framework for owners of facilities assets to identify and more effectively track and manage costs of a facility, building or supporting infrastructure or assets over the full life cycle, utilizing Total Cost of Ownership (TCO) principles. The common framework would forecast investment needs, and simplify data decision requirements by creating and utilizing a standard data set, for purposes of maintaining a financially sustainable future for all asset investments. Identify Stakeholders Owners of buildings, facilities, infrastructure, general site, and property. Other stakeholders within the following asset management disciplines: architecture, building design and planning, construction, building/facilities management, operations and maintenance, energy management, users of assets, and capital needs planners. Scope summary Identify ISO or IEC standard to be adopted Includes text from ISO or IEC standard? This standard defines and describes the framework and principles required to successfully manage a facility capital asset or assets. It provides a common framework for owners of facilities assets to track and monitor TCO and to effectively manage a facility (building or infrastructure) throughout its full life cycle, utilizing data based decision making. Areas of application for this standard include project delivery (planning, design, construction and commissioning); maintenance and operations; and recapitalization. The standard can be applied to all types of facilities assets. Consumer Product Unit of Measure no Both no 1/2 Yes Revises a previous PINS submittal?

13 9/29/2015 ANSI WEB PINS FORM Notes Request an Announcement in Standards Action to Solicit New Consensus Body Members Yes 2/2

14 2/1/2016 What Is APPA? Total Cost of Ownership (TCO) For Facilities Asset Management Membership organization of over 15,000 educational facilities professionals from more than 1,300 educational institutions, mostly Higher Ed, within North America. John F. Bernhards Associate Vice President Copyright 2015 APPA Leadership in Educational Facilities. All Rights Reserved. Copyright 2015 APPA Leadership in Educational Facilities. All Rights Reserved. What Is APPA? The Talk On Campus Best Practices, Thought Leadership, Research Regulation Technology Deferred Maintenance KPIs Space Management Affordability Public/Private Partnerships Data Driven Decision making Copyright 2015 APPA Leadership in Educational Facilities. All Rights Reserved. "Lander College Old Main Building" by Bill Fitzpatrick Own work. Licensed under CC BY SA 3.0 via Commons

15 2/1/2016 About APPA Standards and Codes Activities How We Got Here Fire and Life Safety APPA NFPA Work Group I Codes APPA ICC Group A and Group B Work Groups Facilities Informatics APPA Informatics Work Group ISO 267 Facilities Management, Work Groups 1, 2, and 3 Participation on ANSI U.S. Technical Advisory Group (TAG) to ISO 267 In April 2015, APPA became an ANSI-Accredited Standards Developer Now launching work on first APPA/ANSI Standard: APPA 1000: Total Cost of Ownership (TCO) for Facilities Asset Management Copyright 2015 APPA Leadership in Educational Facilities. All Rights Reserved. Copyright 2015 APPA Leadership in Educational Facilities. All Rights Reserved. The APPA 1000/ ANSI TCO Standard Agenda 1. Goal Achieve sustainable Assets Management A choice needs to be made. 2. In order to achieve sustainability we must have a true life cycle view of costs 3. The approach is Total Cost of Ownership (TCO) Provide a standardized business process among all practitioners in planning, design, construction, operations, maintenance and owners that is understandable. The Choice A. Continue on present course with tight budgets B. Look to a more sustainable approach The choice is about culture change and the leadership required to make it happen. Copyright 2015 APPA Leadership in Educational Facilities. All Rights Reserved. Copyright 2015 APPA Leadership in Educational Facilities. All Rights Reserved.

16 2/1/2016 Productivity of the Construction Industry It s About Creating A Team But What Kind? All other non farm industries Construction industry Paul Teicholz Image used with permission Industrial Age Information Age Michael Phelps, a swimmer on a swim team is far different than Blair Brown a right side hitter on a volleyball team. Facilities Industry needs to work as a high performance team amongst the silos TCO Involves all Phases of the Project Life Cycle TCO A Real Life Example Copyright 2015 APPA Leadership in Educational Facilities. All Rights Reserved.

17 2/1/2016 Total Cost of Ownership for Home Total Cost of Ownership for Home Purchase Price *Built 2010, 2500 GSF, 4% int., 0 down, 30 yr *Original cost $450k, 2015 Market value $270k Monthly Cost Annual Cost 50 Yr Cost $ 1,500 $ 18,000 $ 540,000 Purchase Price *Built 2010, 2500 GSF, 4% int., 0 down, 30 yr *Original cost $450k, 2015 Market value $270k Monthly Cost Annual Cost 50 Yr Cost $ 1,500 $ 18,000 $ 540,000 Last Yr Life Remain Repl. Monthly Annual Age Installed Cycle Life Cost Cost Cost Home Assets 50 Yr Cost Roof $ 25,000 $ $ 500 $ 25,000 A/C $ 3,200 $ $ 160 $ 8,000 Flooring $ 10,000 $ $ 1,000 $ 50,000 Fence $ 8,500 $ $ 425 $ 21,250 Appliances $ 10,000 $ $ 1,000 $ 50,000 Lifestyle Upgrades $ 20,000 $ $ 2,000 $ 100,000 Total $ 76,700 $ $ 5,085 $ 254,250 Total Cost of Ownership for Home Monthly Annual Utilities/Operating Cost Cost 50 Yr Cost Electricity $ 350 $ 4,200 $ 210,000 Water/Trash $ 150 $ 1,800 $ 90,000 Telephone/Internet $ 150 $ 1,800 $ 90,000 Home Owners Insurance $ 50 $ 600 $ 30,000 Lawn $ 50 $ 600 $ 30,000 Property Taxes $ 500 $ 6,000 $ 300,000 Total $ 1,250 $ 15,000 $ 750,000 Purchase Price *Built 2010, 2500 GSF, 4% int., 0 down, 30 yr *Original cost $450k, 2015 Market value $270k Total Cost of Ownership for Home Monthly Cost Annual Cost 50 Yr Cost $ 1,500 $ 18,000 $ 540,000 Last Yr Life Remain Repl. Monthly Annual Age Installed Cycle Life Cost Cost Cost Home Assets 50 Yr Cost Roof $ 25,000 $ $ 500 $ 25,000 A/C $ 3,200 $ $ 160 $ 8,000 Flooring $ 10,000 $ $ 1,000 $ 50,000 Fence $ 8,500 $ $ 425 $ 21,250 Appliances $ 10,000 $ $ 1,000 $ 50,000 Lifestyle Upgrades $ 20,000 $ $ 2,000 $ 100,000 Total $ 76,700 $ $ 5,085 $ 254,250 Monthly Annual Utilities/Operating Cost Cost 50 Yr Cost Electricity $ 350 $ 4,200 $ 210,000 Water/Trash $ 150 $ 1,800 $ 90,000 Telephone/Internet $ 150 $ 1,800 $ 90,000 Home Owners Insurance $ 50 $ 600 $ 30,000 Lawn $ 50 $ 600 $ 30,000 Property Taxes $ 500 $ 6,000 $ 300,000 Total $ 1,250 $ 15,000 $ 750,000 Monthly Cost Annual Cost 50 Yr Cost 1,500 $ 18,000 $ 540,000 $ First Cost Versus Total Cost $ 3,174 $ 38,085 $ 1,544,250 Total Cost of Ownership for Home $ 3,174 $ 38,085 $ 1,544,250

18 2/1/2016 A Sustainable View of Facilities Total Cost of Ownership TCO = C a + C c + C o + C m + C p + C d +C f Where: C a =Cost of Acquisition (Design, Construction, Install) C c =Cost of Commissioning (laser scanning Performance) C o =Cost of Operation (Energy, Custodial & Grounds) C m =Cost of Maintenance (Repairs, Breakdowns, & Retrofits) C p =Cost of Production (Monitoring Actual Measuring) C d =Removal and Disposal cost minus any reclamation value C f = Knowledge from previous projects (Feedback) Opportunities Provided by APPA 1000 A Total Cost of Ownership standard will create a common language develop understanding across the cradle to grave life cycle create repeatable business processes provide a basis for goal setting be the basis for collecting common metrics support change management root cause analysis support feedback loops support constant improvement help in achieving consensus ultimately become the standard of care provide a tool you can use to support current and future capital expenditures ANSI TCO Standard APPA 1000 Phase 1: A Framework Identify and Define All Costs Associated with: Project Delivery M&O Recapitalization Establish a common framework for owners of facilities assets to identify and more effectively track and manage costs of a facility, building or supporting infrastructure or assets over the full life cycle, utilizing Total Cost of Ownership (TCO) principles.

19 2/1/2016 Phase 2 Certainty of Delivery, Inventory Certainty of JIT Decision Making Certainty of Best Performance and Learning Certainty of Best Design Certainty of Delivery & Inventory Certainty of JIT Decisions Seeking Stakeholders: Getting Involved Owners of buildings facilities, infrastructure, general site, and property. Also, stakeholders within the following asset management disciplines: Architecture Building Design and Planning Construction Facilities Management Operations and Maintenance Energy Management Capital Needs Planners 21 Copyright 2015 APPA Leadership in Educational Facilities. All Rights Reserved. THANK YOU APPA 1000 Total Cost of Ownership (TCO) For Facilities Asset Management John F. Bernhards Associate Vice President jbernhards@appa.org Copyright 2015 APPA Leadership in Educational Facilities. All Rights Reserved.