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Facilities Master Plan PresentationBOULDER FACILITIES MASTER PLAN2021 1 CITY BUILDINGS TOTAL SCOPE •75 Buildings •1,870,326 SF •$577,000,000 Current Replacement Value (CRV) 2 CITY BUILDINGS DECENTRALIZED Recreation Centers Libraries Fire Stations Parking Structures Leased Buildings Maintenance shops Radio Shelters 3 CITY BUILDINGS DISPERSED, NOT BY DESIGN Administrative Office Buildings Maintenance Buildings Service Centers Public Safety Building 4 CITY BUILDINGS Provide a wide array of services to our community. Share common principles, elements and goals that make them one system. 5 Under One Roof Bringing numerous discrete building needs, goals and objectives “under one roof” to view our building portfolio collectively as a system, putting individual needs in context to achieve city-wide goals. 6 Foundational Work •2016 City Facilities Vision Plan •Brenton Building Renovation •OSMP Hub Renovation •Energy Case Studies: Municipal Building, Municipal Service Center, East Boulder Community Center •Pavilion Reuse Analysis •MSC Max Capacity Analysis •Workplace Transformation INFORMED BY… 7 ENGAGEMENT ENGAGEMENT ACTIVITIES Facilities Directed: City Facilities Vision Planning Development of Core Values Consolidation Opportunities Workplace Transformation and COVID Response Department Master Planning Engagement: Informed by completed and on-going Department Master Plans On-going and annual outreach with Departments in developing specific projects 8 The Framework Guides •Replacement of aging facilities •Adaptation to a changing environment •Transformation in buildings to meet Department and City-wide Goals. Purpose of FMP To provide a data-driven strategic investment and implementation framework for city buildings ensuring 9 Key Indicators used to assess Environmental Sustainability •MEP Backlog •Energy Use Intensity •Carbon Footprint •Flood, Fire Vulnerability •Disaster Readiness •Community Shelter •Essential Building 10 Key Indicators used to assess Financial Stewardship •Capital Needs •Operating Costs •Facility Condition •Operability •Adaptability •Security 11 Key Indicators used to assess Social Responsibility •Experience for community •Experience for staff •Inclusivity Features •ADA Compliance •Multi-modal access •Access in and around building 12 WHERE WE ARE TODAY 13 HOW WE ASSESS BUILDINGS Asset N a m e Asset D e p a r t m e n t x Letter z Finan c i a l Sustai n a b l e Resilie n t Acces s i b l e Functi o n a l Experi e n t i a l Brent o n B u i l d i n g Offic e s A B A D B C B 11th & S p r u c e Parki n g B D A E C E D BMO C A Lease d B B A E C E C East B o u l d e r C o m m u n i t y C e n t e r Rec C e n t e r B D E B C D B Fire St a t i o n 8 Emer g e n c y S e r v i c e s B A B C D E D Fire T r a i n i n g C e n t e r Emer g e n c y S e r v i c e s B A E C D E D Main L i b r a r y Librar i e s B D B D B C D North B o u l d e r B r a n c h L i b r a r y Librar i e s B B B E D C D North B o u l d e r R e c C e n t e r Rec C e n t e r B C E B B D C OSM P H u b Offic e s B B B E B C B 10th & W a l n u t Parki n g C D A E C E D 1500 P e a r l Parkin g C D B E C E D Bould e r R e s e r v o i r V i s i t o r C e n t e r Parks & R e c r e a t i o n C E C D C C B Broad w a y P a r k i n g S t r u c u t r e Parki n g C D A E C E D Chaut a u q u a D i n i n g H a l l Lease d C C E E D E C Child, Y o u t h a n d F a m i l y S e r v i c e s Offic e s C A D E D D D Fire St a t i o n 1 Emer g e n c y S e r v i c e s C A E C D E E Fire S t a t i o n 2 Emer g e n c y S e r v i c e s C C C C E E E Fire S t a t i o n 4 Emer g e n c y S e r v i c e s C B D C E E E Fire St a t i o n 5 Emer g e n c y S e r v i c e s C B D D E E E Fire S t a t i o n 7 Emer g e n c y S e r v i c e s C A D D D E E Fleet S e r v i c e s Supp o r t S e r v i c e s C A E C E E E Iris Ce n t e r Offic e s C A C E D D E Mead o w s L i b r a r y Librar i e s C B B E D C D OSMP - C h e r r y v a l e S o u t h Offic e s C B B D E E E OSMP O f f i c e A n n e x Office s C B A E E E D OSM P S h o p Suppo r t S e r v i c e s C B A D E E D Park O p s / F o r e s t r y Parks & R e c r e a t i o n C B D D E E D Pleas a n t V i e w R e s t r o o m s Parks & R e c r e a t i o n C D B E E E D Rand o l f C e n t e r P a r k i n g Parki n g C D A E C E D Reyno l d s L i b r a r y Librar i e s C B A D D E E RTD P a r k i n g S t r u c t u r e Parkin g C D A E C E D Scott C a r p e n t e r A t h l e t i c C e n t e r Parks & R e c r e a t i o n C E B E B E D Scott C a r p e r n t e r B a t h h o u s e Parks & R e c r e a t i o n C E C E B D B Stazio B a l l f i e l d s B u i l d i n g s Parks & R e c r e a t i o n C B D E E E C Valm o n t P a r k Parks & R e c r e a t i o n C B B E E E C 63rd S t W T P Wate r T r e a t m e n t D E E C E E D 75th W T P P Wate r T r e a t m e n t D D E C E E D Age W e l l W e s t Offic e s D E E E D D E Atriu m Offic e s D D D E E C E Carne g i e L i b r a r y Librar i e s D E D E E E D CV 15 0 0 P e a r l Offic e s D B D E D E E Dairy C e n t e r Lease d D D E E C E D FAM & P & R B l d g Suppo r t S e r v i c e s D D B D D E E Fire St a t i o n 3 Emer g e n c y S e r v i c e s D D D D E E E Fire St a t i o n 6 Emer g e n c y S e r v i c e s D D E C E E E Harbe c k - B e r g h e i m H o u s e Lease d D B B E E E E Maple t o n B a l l f i e l d s B u i l d i n g Parks & R e c r e a t i o n D E B E E E E MSC A B l g Suppo r t S e r v i c e s D B E C E E E Muni c i p a l B u i l d i n g Offic e s D E D D D E E OSMP - C h e r r y v a l e N o r t h Offic e s D B C D E E E Pearl S t M a l l P u b l i c R e s t r o o m s Parks & R e c r e a t i o n D C B E D E E Pearl S t r e e t M a l l V i s i t o r s K i o s k Parks & R e c r e a t i o n D D B E D E E Potte r y L a b Lease d D E C E E E E Radio T o w e r E q u i p m e n t S h e l t e r s Suppo r t S e r v i c e s D E B C E E D Reso u r c e C e n t e r ( 6 4 0 0 A r a p a h o e ) Lease d D D C E E E D South B o u l d e r R e c C e n t e r Rec C e n t e r D E E C E E D Spruc e P o o l B a t h h o u s e Parks & R e c r e a t i o n D D D E E E D Tea H o u s e Lease d D E B E D E D The E d g e ( 1 3 0 1 A r a p a h o e ) Offic e s D D C E E E E Betas s o W T P Wate r T r e a t m e n t E E E D E E E Boul d e r R e s e r v o i r B o a t H o u s e Parks & R e c r e a t i o n E E B E E E E Bould e r R e s e r v o i r M a i n t e n a n c e Parks & R e c r e a t i o n E E B E E E E Cente r G r e e n Offic e s E E E E E E E Fire T r u c k S t o r a g e B l d g Supp o r t S e r v i c e s E E B D E E E Flatir o n G o l f P r o S h o p Supp o r t S e r v i c e s E E C E E E E Footh i l l s M a i n t e n a c e S h o p Suppo r t S e r v i c e s E E E D E E E Justic e C e n t e r Offic e s E E E E C E D MSC B B l g Supp o r t S e r v i c e s E E E D E E E Must a r d s L a s t S t a n d Lease d E E E E D E E New B r i t a i n Offic e s E D E E E E E Park C e n t r a l Office s E E E E E E E Pleas a n t V i e w M a i n t e n a n c e S h o p Parks & R e c r e a t i o n E E E E E E D Public S a f e t y C e n t e r Emer g e n c y S e r v i c e s E E E D E D E Road w a y B u i l d i n g Suppo r t S e r v i c e s E E E E E E E Salbe r g Parks & R e c r e a t i o n E E B E E E E Tantr a P a r k M a i n t e n a c e S h o p Supp o r t S e r v i c e s E E E D E E E Tom W a t s o n Parks & R e c r e a t i o n E E B E E E E Valm o n t B u t t e Suppo r t S e r v i c e s E E E E E E E Scori n g - All Co r e Value s Sum m a r y - L e t t e r G r a d e s Tierin g M a t r i x Data driven asset analysis, capital planning study, KPI scoring of building portfolio 14 57 Buildings 2600 MTCO2e 19 Buildings 6600 MTCO2e Building Portfolio Emissions 75% of emissions comes from 25% of our building portfolio. 2,581 79 83 86 126 129 167 175 181 186 187 212 289 356 357 404 455 710 1,167 1,263 - 500 1,000 1,500 2,000 2,500 3,000 Remaining Portfolio Iris Center Fire Station 1 Atrium Brenton Building New Britain Fleet Services Center OSMP Hub Fire Training Center West Age Well Center Municipal Building Park Central 1500 Pearl Dairy Center MSC "A" Building Center Green South Boulder Rec Center Public Safety Center East Boulder Community Center North Boulder Rec Center Metric Tons of CO2e (2019) Half of the 19 worst offenders are part of consolidation initiative CARBON 15 MEETING CLIMATE GOALS Electrify our buildings to reduce carbon footprint. Reduce energy consumption and loads in buildings. 1 Invest in renewable energy to close the gap. 2 3 We achieve these actions through Deep Energy Retrofits in existing buildings OR construction of New High-Performing buildings. 16 RESULTS 14,440 2008 8,700 2016 40% 9,200 2019 37% Where we are today 5,000 2030 Goal Master Consolidation 2,800 Deep Retrofits Strategy for tomorrow Baseline Target 80% 65% 80% 60% 40% 20% MT CO2e % Reduction Driving to 100% Renewable Generation 17 FINANCIAL ANALYSIS FOCUS ON •Forecasted Capital Needs across building portfolio. •Facility Condition trajectory at current funding levels. •Unfunded Liability and risk tolerance •Total Cost of Ownership 20% Initial Development 80% Operations and Maintenance “the hidden true cost of buildings” 30-year Building Total Costs of Ownership 18 FORECASTED CAPITAL NEEDS Priority 19 FACILITY CONDITION INDEX (FCI) Deferred Maintenance Costs Current Replacement Value of Asset 20 FCI of Building Portfolio FACILITY CONDITION INDEX (FCI) Deferred Maintenance Costs Current Replacement Value of Asset 21 Current annual funding of $2.3M critical by 2033 FACILITY CONDITION INDEX (FCI) Deferred Maintenance Costs Current Replacement Value of Asset 22 FCI target of 10% Industry Standard Annual funding need = $10.5m WHAT FCI LOOKS LIKE 23New Mechanical EquipmentStructural Failure Mechanical Systems Decline Critical Condition Good Condition UNFUNDED LIABILITY Cumulative Unfunded Liability for Portfolio 10% FCI Target Cumulative Total Liability of $175M by 2030 Funding Gap = $95M Year 2030 $175M –Cumulative Total Liability “the cost of doing nothing” Less current funding allocation ($2.3M annually x 10 years = $23M) Target Unfunded Liability = $57M (maintaining 10% FCI) Funding Gap = $95M 24 TOTAL COST OF OWNERSHIP Maintaining current practices in buildings we’ll experience escalating: •O&M costs (already 2x industry benchmarks) •Infrastructure replacement needs •Gap between funding provided and need •Risk of system failures We are headed up this curve if we don’t change course. $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 1974 1981 1988 1995 2002 2009 2016 2023 2030 2037 2044 2051 2058 2065$ MillionsConstruction Renewal O&M Custodial Utilities Inflection Point Average age of buildings is 47 years old 25 SERVING OUR COMMUNITY Our buildings are not accessible, equitable, nor do they provide a good experience 26 CURRENT STATUS IN SUMMARY Our buildings are not meeting our core values… yet are increasingly expensive to own •Will not meet climate goals •Inconsistent in resiliency •Expensive to operate and maintain •Increasing poor condition leading to larger funding needs and greater risk •Not accessible, nor equitable •Mixed customer experience 27 CHARTING A NEW COURSE 2 key initiatives •Maintain Well •Consolidate Services 28 KEY INITIATIVE Maintain Well “taking care of what we have” Cost Comparison of Maintenance Measures (MM) Preventative MM costs $550 (alignment) Predictive MM = $2120 (repair and alignment) Reactive MM = $15,345 (adjustment, repair component, repair collateral damage, downtime, OT, expediting parts and alignment)29 GOAL: Model good governance and operational excellence in our buildings by transitioning from highly reactive operations and maintenance to a proactive approach achieving: •Lower risk of system and building failure, •Provide for reliable, planned capital renewal •Extend systems and buildings life expectancy •Lower Total Cost of Ownership STAYING AHEAD OF FAILURE COST ($) Time Inflection Point Getting ahead of rising costs associated with an assets eventual decline. 30 Optimal time to invest in new equipment –capital replacement cost Existing mechanical unit overdue for replacement, commonly failing New Variable Refrigerant Flow Units Reduced maintenance cost with new equipment EXTENDING EQUIPMENT LIFE COST ($) Life Cycle Gain Time 31 With proactive maintenance we can extend equipment life and delay renewal needs while keeping maintenance costs low. KEY INITIATIVE Maintain Well RECOMMENDATION OF FMP Following significant capital investments (new buildings and deep retrofits): -Maintain a 10% Facility Condition Score -Annually fund of 2% of assets Current Replacement Value for future renewal Phase in funding through annual budgeting process. Now –Buildings either built or significantly renovated within the last fifteen years. Four buildings fall into this category: Fire Station 8, Reservoir Building, Scott Carpenter Pool, Brenton Building. The combined increased funding request would be ~$370,000 annually. Moving forward -following construction of any new or deeply retrofitted buildings on-going O&M funding request would be made within the budget process “taking care of what we have” 32 KEY INITIATIVE Maintain Well “taking care of what we have” COUNCIL QUESTION: Does council agree with the draft recommendation to prioritize the Maintain Well strategic initiative? Funding requests in support of Maintain Well would then be brought forward as part of the annual budget process. 33 KEY INITIATIVE Consolidate Services Consolidation of Services currently scattered across 20+ buildings to two key sites can: •Make significant progress towards climate and resiliency goals. •Greatly reduce financial risk across portfolio. •Allow for other Master Plan goals to be advanced. •Better serve our community. 34 CurrentWest CampusEast Campus Hybrid Work SPACE 420,000 GSF 320,000 GSF Current Renewables? 3,400 metric tons (CO2 equivalent) ~0 1,870 MTCO2e Current GSA Benchmark $4,481,000 OpEx (~$11/sf) $1,580,000 (GSA Study: $5.33/SF) EFFICIENCY THROUGH CONSOLIDATION CARBON MONEY West Campus East Campus West Campus East Campus 35 $175M TOTAL Cumulative Unfunded Liability by 2030 “the cost of doing nothing” UNFUNDED LIABILITY (UL) 36 $152M Cumulative Unfunded Liability with current funding UL with CURRENT FUNDING 37 Western City Campus at A-B Constructed <$145M Cumulative Unfunded Liability with Western City Campus on-line UL REDUCTION with WEST CAMPUS *Potential financial benefits of selling properties not included ~6 buildings removed and replaced with one high- performing building. 38 Western City Campus at A-B Constructed Operational Expense (OpEx) Savings from Western Campus <$115M Cumulative Unfunded Liability with Western City Campus on-line West Campus 40% reduction UL REDUCTION with WEST CAMPUS 39 ~$110M Cumulative Unfunded Liability with Eastern City Campus on-line Eastern City Campus Constructed UL REDUCTION with EAST CAMPUS ~15 buildings removed and replaced with one high- performing campus. West Campus 40% reduction *Potential financial benefits of selling properties not included40 ~$75M Cumulative Unfunded Liability with Eastern City Campus on-line Operational Expense (OpEx) Savings from Western Campus East Campus 60% reduction West Campus 40% reductionEastern City Campus Constructed UL REDUCTION with EAST CAMPUS 41 BENEFITS OF CONSOLIDATION Stabilize Unfunded Liabilities well into future Stabilize risk East Campus 60% reduction West Campus 40% reduction *Potential financial benefits of selling properties not included42 10% FCI TargetUL Gap <$20M Consolidating ~20 buildings, 25% of portfolio, cuts Unfunded Liability across entire portfolio by 60%. ACHIEVING GOALS DAY ONE Meet Climate Goals and reduce carbon footprint Cut Unfunded Liability in half across whole portfolio Stabilize future funding needs Reduce O&M Expenses from ~$11/sf to ~$6/sf Improve Experience, Access, Equity and Health for EVERY city department – the community they serve and the staff doing the work! Improve resiliency across EVERY city department 43 RECOMENDATION Pursue Consolidation of Services currently scattered across 20+ buildings Divest in current buildings that will go towards consolidation. Seize real estate opportunities that support approach (strategic and timely acquisition or disposal) Create high-performing buildings and sites to achieve the building values and city goals. COUNCIL QUESTION: Does council agree with the draft recommendation to prioritize the Consolidate Services strategic initiative? 44 CURRENT TOTAL COST OF OWNERSHIP Maintaining Status Quo in Buildings 0.0 250.0 500.0 750.0 1000.0 1250.0 1500.0 1750.0 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060 2065 2070 2075 2080 2085 2090$ MillionsDesign & Construction Renewal OpEx Status Quo $500M $1250M Increasing O&M Expense 45 2021 ACT NOW OR PROLONG Act Now Approach Prolonged Approach 0.0 250.0 500.0 750.0 1000.0 1250.0 1500.0 1750.0 $ MillionsDesign & Construction Renewal OpEx TCO Status Quo 0.0 250.0 500.0 750.0 1000.0 1250.0 1500.0 1750.0 $ MillionsDesign & Construction Renewal OpEx TCO Status Quo $500M $500M $1250M $1250MROI ~2060 (within 30 yrs) ROI ~2085 (>55 yrs) West Campus East Campus Impact of construction escalation East West Potential building failure 46 TWO FUNDING APPROACHES 47 Act Now and Consolidate by 2030 Meets 2030 climate goals Achieve social and environmental values quickly Direct Savings Towards Consolidation An ROI within 30 years creates more funding options and choices Get ahead of escalation Reduce risk in current assets Capitalize on O&M efficiencies Prolonged Consolidation Approach Does NOT meet climate goals by 2030 Delay meeting social and environmental values Risk Additional Costs Construction escalation Maintaining current assets while also pursuing consolidation results in spending money twice Increasing operating and maintenance costs 48 COUNCIL QUESTIONS 1.Does council agree with the draft recommendation to prioritize the Consolidate Services strategic initiative? This would advance consolidation planning work on the Eastern City Campus (Municipal Services Center) in addition to the consolidation work that is already happening at the Western City Campus (Alpine-Balsam). 2.Does council support an action item to further explore a financial strategy to achieve the Consolidation Initiative? This would occur after master plan adoption. Staff would explore a variety of funding options to consolidate services between both Eastern and Western City Campuses by 2030 and contrast that with costs to stagger consolidation out over a longer timeframe. Thank You 49 FORECASTED CAPITAL NEEDS (2) $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 Ranked by Deferred Maintenance Ranking the top 20 buildings by deferred maintenance; just 25% of the buildings represent ~78% of deferred maintenance for the entire portfolio 55