Agency: Administrative Services

Line Item: DFCM Administration

Function

The Division of Facilities Construction and Management (DFCM) is the building manager for all state owned facilities. The division is responsible for all aspects of construction for state buildings and assists the Building Board in developing recommendations for capital development projects and in allocating capital improvement funds.

Statute UCA 63A-5-104 defines 'capital developments' as any of the following:

• Remodeling, site, or utility projects with a total cost of $2,500,000 or more
• New facilities with total construction cost of $500,000 or more, regardless of funding source
• Purchase of real property where an appropriation is requested

Statute defines 'capital improvement' as any of the following:

• Remodeling, alteration, replacement, repair, site, or utility improvement costing less than $2,500,000
• New facilities with total construction cost less than $500,000

As the State Building Manager, the Director of DFCM oversees the following activities:

• Construction of state buildings
• Space utilization studies
• Establishment of statewide space standards
• Agency and institution master planning
• Staff support for the State Building Board
• Lease administration

Statutory Authority

As described in UCA 63A-5, DFCM, under the general powers of the director, has the following broad responsibilities:

• Exercise direct supervision over the design and construction of all new facilities and all alterations, repairs, and improvements to existing facilities if the total project construction cost exceeds $100,000 regardless of funding source. Exceptions: Capitol Preservation Board, research parks at the University of Utah and Utah State University, This is the Place State Park, other agencies to whom the Building Board may delegate such control on a project by project basis, and donated buildings on donated land for higher education whose maintenance will not require state funds
• Lease, in the name of the division, all real property space to be occupied by an agency
• Evaluate each lease under the division's control to determine whether the lease is cost effective, sufficiently flexible, and competitive. Exception: The Board of Regents must establish its own written lease policies which must be followed by higher education institutions
• Recommend rules to the executive director for use and management of facilities and grounds owned or occupied by the state for use of its departments and agencies
• Supervise and control the allocation of space, in accordance with legislative directive, to the various state agencies. Exceptions are made for Capitol Hill facilities, legislative areas, judicial areas, and public and higher education systems. In allocating space, the division must conduct studies to determine the actual needs of each agency
• Acquire and hold title to, in the name of the division, all real property, buildings, fixtures, or appurtenances owned by the state. The division does not need legislative approval for acquisitions that cost less than $250,000. However, the following agencies may hold title to any real property possessed by them: Office of Trust Administrator, Department of Transportation, Division of Forestry, Fire and State Lands, Department of Natural Resources, Utah National Guard, any vocational center or other State Board of Education institution, any institution of higher learning, USTAR Governing Authority, and School and Institutional Trust Lands Administration
• Implement the State Building Energy Efficiency Program
• Collect and maintain all deeds, abstracts of title, and all other documents showing title to or interest in property belonging to the state, except higher education institutions and SITLA
• Direct or delegate maintenance and operations, preventive maintenance, and facility inspection programs for any agency except the Capitol Preservation Board and institutions of higher education
• Enter into contracts for any work or professional services which the division or the State Building Board may require
• Ensure that state-owned facilities, except Capitol Preservation Board facilities, achieve the lowest cost of owning and operating a facility over a 25-year period
• Submit cost summary data for capital development and improvement projects to the Office of the Legislative Fiscal Analyst.
• Notify local governments before constructing student housing on property owned by the state
• Supervise the expenditure of funds in providing plans, engineering specifications, sites, and construction of buildings as authorized by the Legislature
• Hold contingency and reserve funds set aside from construction projects
• Use one percent of the amount appropriated for construction of any new building for the Utah Percent-for-Art program
• Upon legislative approval, transfer $100,000 annually from project reserves to the General Fund to pay for personal service expenses associated with the management of construction projects

Intent Language

Under Section 63J-1-603 of the Utah Code the Legislature intends that appropriations provided for the Department of Administrative Services - DFCM Administration in Item 34 of Chapter 396 Laws of Utah 2009 not lapse at the close of Fiscal Year 2010. The use of any nonlapsing funds is limited to the following: DFCM Program Administration Operations; Governor's Mansion Maintenance and Upkeep; and Energy Program Operations.

The Legislature intends that the Division of Facilities Construction and Management and the Department of Public Safety cooperate with Salt Lake City to advance preliminary discussions for the programming, design, and costing of a joint Emergency Operations Center, and provide the results of that planning to the Legislative Fiscal Analyst and the Governor's Office of Planning and Budget, with the intent of reporting their recommendations and analysis regarding the cost effectiveness and potential operational efficiencies of such a facility to an appropriate legislative committee by June 30, 2010.

Performance

The Project Reserve Fund and Contingency Reserve Fund are used to ensure projects are completed successfully. Year-end balances are an indication of DFCM's accuracy in estimating and managing project costs. Excess balances have been used to fund all or part of projects and administrative costs in past years.

Measure: Fiscal year-end balances in the Project Reserve Fund and Contingency Reserve Fund.

Goal: Maintain a positive balance sufficient to ensure successful completion of projects, without accruing excessive balances which may indicate overestimation of project costs.

Methodology: Displays fiscal year end closing balances.

Measure: Outcome.

Funding Detail

In addition to a little more thank $2 million in General Funds, other funding sources include:

• The Project Reserve Fund which receives state funds resulting from construction bids coming in under the amount budgeted for construction. This fund also receives any residual funds left over in the project. This reserve may only be used by DFCM to award construction bids that exceed the amount budgeted. However, the Legislature retains the right to make appropriations from the fund for other building needs, including the cost of administration.
• The Contingency Reserve Fund which receives state funds budgeted for contingencies. The amount budgeted is based on a statutory sliding scale percentage of the construction cost which ranges from 4.5 percent to 6.5 percent for new construction, and from 6 percent to 9.5 percent for remodeling projects, depending on the size and complexity of the project. The Contingency Reserve is used to fund all unforeseen project costs, except the award of construction bids that exceed the construction budget. The primary use of this reserve is to fund construction change orders. Other uses include covering actual costs which exceed amounts budgeted for design, testing services, soils investigations, surveys, and construction insurance. The Legislature may re-appropriate these funds to other building needs, including administrative costs, in any amount that is determined to be in excess of the reserve required to meet future contingency needs (see UCA 63A-5-209).

In FY 2006 the division consolidated the Preventative Maintenance, the DFCM HazMat, and the Roofing and Paving programs into the DFCM Administration program.

Program: DFCM Administration

Function

This program carries out all of the following functions:

• General administrative support for the division
• Development of state-owned facilities for all state entities from the initial request through completion of construction and resolution of warranty items. This includes management of capital development and improvement projects for all state entities including higher education and state-level entities within public education. This program contracts with private architects, engineers, and contractors to accomplish its work. Funding for capital projects is provided separately.
• All real property transactions for most state entities except those exempted by statute. This includes leasing, acquisitions, and dispositions.
• Ensure that all state owned facilities are on a preventive maintenance schedule, which includes those functions that prolong the life cycle of mechanical equipment, electrical systems, roofs, floors, and other safety systems
• Facility Condition Assessments (FCA), which provide information on repair and improvement of state facilities and calls for all significant state-owned buildings to be reassessed on a five-year cycle. Approximately eighty percent of capital improvement funding is driven by the FCA program.
• Facility Audits measure progress on routine maintenance issues and help agencies prolong the life of their buildings. If audits reveal failing marks, DFCM has a responsibility to assume control of the building's maintenance.
• Hazardous material abatement in conjunction with agencies
• Administer the roofing and paving program as a means to improve the life cycle of state facilities. In addition to inspections, repairs, and maintenance, the program is responsible for identifying, specifying, and managing all roofing and paving projects. Utah Correctional Industries provides much of the labor.
• Computer-Aided Drafting and Design (CADD), formerly part of DFCM's Internal Service Fund, is funded with Capital Improvement Funds

Funding Detail

The Legislature eliminated all General Funds from this program in FY 2002, but then restored $1.1M in FY 2006 and another $1.1M in FY 2007.

In FY 2006 the division consolidated the Preventative Maintenance, the DFCM HazMat, and the Roofing and Paving programs into the DFCM Administration program.

Program: Governor's Residence

Function

This program funds security and other costs associated with maintaining the official ceremonial functions of the Governor's Mansion. Normal costs of maintaining the residence are funded through a separate budget.

Funding Detail

In FY 2006 the Legislature added $20,000 to this program to cover increased costs associated with the governor's family using the residence more often than before. There are no personal services costs in this program, though some contract personnel may be used.

Program: Energy Program

Function

The Energy Program began in FY 2006 to find and implement opportunities for improved energy efficiency in state buildings. During the 2006 General Session the Legislature transferred responsibility over the State Building Energy Efficiency Program (SBEEP) to DFCM. At the same time the Governor's Office hired an energy director who recommends statewide energy policy and provides direction to this program.

Efforts are not simply limited to implementing energy efficiency projects in existing buildings. DAS and DFCM are also focusing on programs and policies intended to change employee behavior, improve building operation, and increase efficiency in new construction.

Functions of this program include:

• SBEEP, which has overall responsibility for energy efficiency in state buildings, promotes energy saving programs, provides technical assistance, monitors utility bills for opportunities for savings, and reports to the Governor and Legislature
• High Performance Building Initiative, which includes development of a high performance building standard for new state-owned buildings similar to the nationally recognized LEED™ program. It also promotes integrated design to maximize building performance and provide better air quality, lighting, and acoustics. The goal is to invest in energy efficiency to save 20% of utility costs
• Building Recommissioning, which finds opportunities to: modify and tune-up building equipment and controls, improve system operation, reduce maintenance and repair costs, extend equipment life, and improve occupant comfort and productivity
• Energy Savings Performance Contracts, which provide for the design and construction of energy efficiency measures with the costs repaid from energy savings. Work is done by an Energy Savings Company (ESCO) that guarantees the savings

Funding Detail

Funding initially came from the Governor's Office in the form of dedicated credits that the federal government collected from oil companies for violations of petroleum pricing regulations from 1973 to 1981 (known as PVE funds). In the 2008 General Session the Legislature replaced these PVE funds with General Fund.