Date: 01/13/2009

FY 2009-10 Controlled Maintenance Requests


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08:15 AM -- FY 2009-10 Controlled Maintenance Requests

Mr. Larry Friedberg, State Architect, Mr. Rod Vanderwall, Manager of Energy Programs, and Mr. Mike Karbach, Manager of Real Estate Programs, all of the Department of Personnel and Administration, presented the Office of the State Architect's annual report to the committee. Committee members received a copy of the Office of the State Architect's annual report (on file with Legislative Council Staff). The executive summary is appended as Attachment E. Mr. Friedberg briefly explained the statutory responsibilities of his office. Mr. Friedberg gave an overview of the lay-out of the annual report. He then reviewed the current replacement value of the inventory of state-owned General-Funded buildings, the total gross square feet of all state-owned building, the number and age of buildings, and the facility condition index scores of state-owned General-Funded buildings. The facility condition index (FCI) is a numerical score from 0 to 100 that reflects the current overall condition of a building. In response to a question about the FCI of state buildings, Mr. Friedberg clarified that the target score is 85, but many state facilities are not at this level. He explained that a building's score decreases, on average, 1 to 2 points per year. Mr. Friedberg responded to a question about an average FCI score for all state facilities and said that an average does not exist for all facilities, but there is an average for each state agency and higher education institution.

08:25 AM

Discussion continued about the FCI score of the state's inventory of General-Funded buildings. Mr. Friedberg said that the committee has adequately addressed life-safety concerns in past years through the funding of controlled maintenance projects. He added that the goal is to fund 1 percent of the current replacement value of all state-owned General-Funded buildings for controlled maintenance needs. Mr. Friedberg explained the table and graph on page 3 of the executive summary (see Attachment E).

08:34 AM

Mr. Friedberg continued his explanation of the table and graph on page 3 of the executive summary. He addressed a question about whether past state funds have been spent on buildings with a poor FCI rating. Mr. Friedberg summarized the controlled maintenance recommendations and funding over the past 13 years and reiterated his belief that the most critical life-safety controlled maintenance projects have been funded.

08:40 AM

Mr. Friedberg summarized the FY 2009-10 controlled maintenance funding recommendation of $81.9 million for 135 projects, including 35 Level I projects, 61 Level II projects, and 39 Level III projects. He said the five-year estimate of need for controlled maintenance funding is $525.4 million.

08:44 AM

Mr. Vanderwall addressed a question about how energy needs are considered during the prioritization of controlled maintenance projects. He explained that energy performance contracts are an alternate funding source that can be used to finance controlled maintenance projects that increase the energy efficiency of buildings. To date, about $18 million has been funded for energy performance contracts, including 15 controlled maintenance projects.

08:48 AM

Mr. Karbach reviewed the number of acquisitions and dispositions of real property during FY 2007-08. He also gave an overview of the number of lease agreements in effect between state agencies or higher education institutions and third parties. He spoke briefly about market changes leading to reduced rental rates and possible cost-savings that can be realized by the state when entering into new leases. He also referenced the Capitol Complex Master Plan, which will help the state identify possible cost savings through the co-locating of state agencies. Mr. Friedberg responded to a question about the Judicial Complex and the realization of possible lease-cost savings in the future. He said the state won't realize any savings until 2015 when construction of the new building is complete. Mr. Vanderwall responded to a question about whether roofs can be included in energy performance contracts and said that energy performance contracts do not include structural work but may include ancillary needs related to energy, such as insulation.

08:55 AM

The committee adjourned.