President Wolfe recently issued a revision to Executive Order 28 (EO28), Section 110.015 of the University of Missouri Collected Rules and Regulations, entitled Facilities Needs Funding and Reporting. This revision modifies the methodology the university currently uses for Facilities Needs Funding. A copy of the revision can be found here.
EO28 originated in 1994 when former UM System President Russell established a goal for each campus to spend 1.5% of building replacement value for maintenance and repair needs. This goal was the industry’s best practice and was supported by studies relating the decay of building components and the cost of building maintenance. EO28 recognized the need for the University of Missouri to renew its facilities; more specifically, it addressed deferred maintenance and ensured the modernization of campus facilities.
Moreover, the revised policy will also adhere to industry best practices by establishing facilities renewal goals, thus, enabling campus facilities to meet the standards of a world-class university. The campuses, using information management tools unavailable in the 1990’s, can track both facility replacement value and the cost to repair and renovate each building through periodic facility condition audits. This allows each campus to tailor its facilities renewal programs to the actual condition and age of its buildings. With this information, the campus can determine the unique Facilities Needs Condition Index (FCNI) of each building and the overall campus. FCNI is the cost to repair or renovate a building divided by the building replacement value. The current industry best practice is to achieve an FCNI of 0.30 or less.
Lastly, the facility condition audit technology used by the university allows each campus to budget towards a unique campus FCNI goal and to predict the long-term impact of campus spending on its FCNI. The latest report on EO28 can be found here.
The revised Executive Order 28 was formulated and recommended by a system-wide task force. The task force members included David Sheahen, James Krueger, Robert Simmons, James Packard, Gary Ward, Larry Eisenberg, Vickie Moore, Jeffery Brown, Gregory Watts, Cuba Plain, Karla Dowd, and Brenda Hogenkamp.