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 included in the Capital Budget.

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 with a few exceptions
• 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
• 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 based on need
• Acquire and hold title to all real property, buildings, fixtures, or appurtenances owned by the state
• 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
• Direct or delegate maintenance and operations, preventive maintenance, and facility inspection programs for state agencies
• Enter into contracts for any work or professional services which the division or the State Building Board may require
• Ensure that state-owned 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 DFCM Administration in Item 15 of Chapter 3 Laws of Utah 2011 not lapse at the close of Fiscal Year 2012. The use of any nonlapsing funds is limited to the following: information technology projects and Governor's Mansion maintenance - $300,000; Energy Program operations - $425,000.

The Legislature intends that the DFCM may add one additional vehicle to their fleet for a Maintenance Auditor position.

Performance

The Legislature established a contingency reserve in the capital budget and requires the division to allocate a portion of capital project funding to the reserve to provide for unforeseen construction expenses. DFCM should manage and budget projects such that contingency funds are adequate to ensure project completion without accruing an excessive balance or requiring additional funding.

The Legislature annually appropriates funding to capital improvement projects to repair and improve existing buildings. DFCM manages these statewide projects and ensures completion in a timely manner (usually within the fiscal year of funding).

Funding Detail

As the division's main duties concern construction of buildings the Legislature appropriates some funding from the Capital Project Fund, the Project Reserve Fund, and the Contingency Reserve Fund. These funds account for expenditures related to the capital development of buildings (see UCA 63A-5-209).

In FY 2012, the Legislature appropriated $1,845,800 ongoing General Fund to cover increased operation and maintenance costs on new buildings authorized by the Legislature. The Legislature then backed these funds out of the budget one-time in FY 2012 because the funds will not be needed until the buildings are completed. These funds are usually appropriated to the line item of the agency or institution that will maintain the building, but last minute funding decisions during the 2011 General Session, necessitated appropriation of these funds to DFCM. The Legislature will re-allocate these funds to the appropriate line items in FY 2013.

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.

The large increase in General Fund in FY 2012 is attributable to $1,845,800 for the operation and maintenance of new buildings put in this line item as a placeholder until FY 2013, when the Legislature will re-allocate the funds to the correct line items.

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 2011, the Division reallocated funds from the Administration 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 was created in FY 2006 and tasked 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.

The Energy program implements energy efficiency projects in state buildings as well as administers programs and policies intended to change employee energy 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.

In FY 2011, the Energy Program received $158,300 from American Recovery and Reinvestment Act federal funds, which it spent on personnel. However, in recording this transaction, the program did not account for the receipt of ARRA funds as revenue, but instead booked them as negative current expenses. The amounts in the table below for FY 2011 reflect what actually occurred, but will not tie to Finance's end-of-year reporting.