GENERAL SERVICES BUDGET REVIEW

SEPTEMBER 25, 2013 2014 BUDGET

General Services Strategic Overview

Citywide Vision: We will deliver a world-class city where everyone matters

Mission: General Services facilitates Denvers success by efficiently managing over 6 million square feet in 124 City buildings, over $230 million in City procurement spend; over $28 million in annual utility costs; and through the advancement of City-wide sustainability, records management and energy efficiency programs, as well as business support services.

Goal1: Create an engaged workforce by investing in human capital

Goal2: Increase customer satisfaction

Goal3: Improve productivity through organizational realignment and business process improvement

Strategy: Ensure professional development and training of all employees and reflect same in PEPs

Strategy: Develop and implement General Services communications plan

Strategy: Analyze 3-5 business processes for improved efficiencies in each division

Strategy: Continue to enhance employee recognition program

Strategy: Determine customer satisfaction measures, tracking and analysis

Strategy: Complete organizational analysis and realignment as appropriate in each division

Strategy: Establish benchmarks and increase utilization of M/WBEs and SBEs

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General Services Mission Level Metrics

Priority Metrics 2011 2012 2013 YTD 2014

Purchasing: Increase cost Savings

$3,600,000

$5,308,458

$2,767,163 ($4,200,000) projected year -end 5.7%**

$4,200,000

Utilities: Reduce Total Energy Use Facilities: Address Deferred Maintenance

0.0% Baseline 5

6.0%*

7.5%***

28

14 (7 CIP projects)

10

Notes:
*EPA adjusted for weatherization **Not yet adjusted for weatherization ***To meet 2020 goals, an annual reduction of 2.5% is needed
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GS Org. Chart

Administration 1.0 Management Analyst II 1.0 Contract Compliance Technician 1.0 Safety & Hygiene Professional II

Department of General Services Administration 1.0 Executive Manager

Central Services 1.0 Administrator II 1.0 Utility Worker 1.0 ASA IV 1.0 Staff Assistant 1.0 ASA II

Strategic Initiatives Division, Department of General Services 1.0 Manager I

Facilities Management Division, Department of General Services 1.0 Manager II

Purchasing Division, Department of General Services 1.0 Director

Energy Management 1.0 Administrator III 1.0 Management Analyst II 1.0 Associate Accountant

Sustainability Administration 1.0 Administrator II

Records Manager 1.0 Administrator I

Administration 1.0 Exec. Assistant II

Maintenance Services 5.0 Facility Superintendent 5.0 Multiple Trades Supervisor 4.0 ASA IV 17.0 HVAC Mechanic 2.0 Electrician 5.0 Maintenance Technician 2.0 Painter 4.0 Plumber 1.0 Electric Systems Tech 1.0 Facility Maintenance Tech 1.0 Multiple Trades Worker 1.0 Electric Maint. Worker

Project Management 1.0 Project Manager

Procurement Operations 1.0 Manager I 1.0 Stock Keeper 2.0 Staff Buyers 5.0 Associate Buyers 5.0 Senior Buyers 1.0 Surplus Administrator 2.0 Buyer Supervisors 1.0 Purchasing Tech

Programs and Projects 1.0 Administrator 2.0 Management Analyst I 2.0 Management Analyst III 1.0 ASA III

Operations Services 1.0 Operations Supervisor 4.0 Custodial Supervisors 1.0 Utility Crew Supervisor 34.0 Custodians 4.0 Utility Crew Workers

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General Services Base Budget Overview

Expenditures General Fund Special Revenue Fund Central Services - ISF TOTAL Revenue 2011 Actual $46,233,882 $0 $3,019,102 $49,252,984 2011 Actual 2012 Actual $44,448,948 $0 $0 $44,448,948 2012 Actual 2013 Revised $46,216,018 $0 $0 $46,216,018 2013 Revised $5,060,100 2014 Proposed Base $49,131,100 $0 $0 $49,131,100 2014 Proposed Base $5,740,000 Variance $2,915,082 $0 $0 $2,915,082 Variance

General Fund Key Drivers:

$6,569,097

$4,830,903

$679,900

The primary drivers of the $2.9M base increase in expenditures includes $2.03M worth of utility increases and $431K worth of facility increases. The primary sources of revenue includes purchasing, $3.7M and facilities, $1.7M.
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General Services - General Fund CSA Personnel Overview

Career Service Authority (CSA) Employees 2011 Actual 2012 Actual 2013 Revised Budget $9,931,645 $0 $30,000 144 $0 0 2014

Total Personnel Budget Comp Time Overtime Total FTE On-Call Budget On-Call FTE

$8,572,934 $180 $108,419 158 $12,675 0

$9,244,414 $71 $120,158 139 $0 0

$10,459,971 $0 $42,000 144 $0 0

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2014 Budget Highlights for General Services

Key Expansion Proposal(s)
Title: Mandated Utility Rate Increases Description:
Commodity Percent Change Increased Cost Electric 5.00% $339,985 Natural Gas 2.00% $32,699 Steam 15.96% $284,732 Street Lights 4.00% $558,148 Chilled Water 5.00% $66,338 Water 6.50% $25,509 Sewer 12.50% $64,624 Storm Drainage 5.00% $36,098

Financial Impact: $1,408,134 Title: New Facilities Description: Utilities for three new facilities scheduled to start operations in 2014 (1330 Fox Street, Lowry Fire Station #18, and Westside Library). Financial Impact: $94,400 Title: Cost of Expanded Hours for Libraries Description: Utilities for all libraries to support an approximate 36% increase in total operating hours. The increase in hours was implemented at all the libraries on April 1, 2013. Financial Impact: $531,489
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2014 Budget Highlights for General Services

Key Expansion Proposal
Title: Maintenance Responsibilities for New Facilities Description: Newly acquired: 1245 Champa (May 2013) 2855 Tremont (November 2013) Denver Police Department Sex Offenders Registration Office (May 2014) Retail Space: Justice Center Garage (June 2014). We anticipate additional deferred maintenance projects with the maintenance responsibilities. Financial Impact: $50,000 Performance Metrics:
2011 Actual Workload Metric: Improve # PMs on time Reduce # days to complete service Reduce # days to complete repair 2012 Actual 2013 Estimated 2014 Projected (First 6 months) 94% 10 days 15 days 2014 Projected (End of Year) 93% 12 days 16 days

NA NA NA

99% NA NA

97% 7 days 10 days

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2014 Budget Highlights for General Services

Key Expansion Proposal
Title: Reestablish Operating Budget Supplies and Services FM Description: In 2012, we had sufficient supplies and equipment in our inventory which allowed us to decrease our budget for supplies and services by 15%. Those items have been depleted due to normal work usage over the past year. FM annually receives approximately $8.85 million for services and supplies, Security services are $3.1million and janitorial services are $2.1 million of that amount, which only leaves $3.6 million for service and supplies. FM maintains 5,687,080 square feet (not including Fire) averaging about $0.63 per square foot. The industry standard for supplies and services in the Downtown Denver area is approximately $4.00 per square foot. Financial Impact: $265,000 Performance Metrics:
2011 Actual Workload Metric: Improve # PMs on time Reduce # days to complete service Reduce # days to complete repair 2012 Actual 2013 Estimated 2014 Projected (First 6 months) 94% 10 days 15 days 2014 Projected (End of Year) 93% 12 days 16 days

NA NA NA

99% NA NA

97% 7 days 10 days

Risks and Considerations: Buildings deteriorate at a more rapid rate by neglecting PM, service and repair work. Frequency of emergencies increase over time and more costly to repair.
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2014 Budget Highlights for General Services

Key Expansion Proposal(s)
Title: Restoration of Funds for the Justice/Cultural Center Garages Financial Impact: $92,000

Title: Weekend Security at the Lindsey-Flanigan Courthouse Reimbursement Description: Funding for security services at the Detention Center was reduced from the FM operating budget for 2013. Early in 2013, after meeting with court officials at CCB, where they presented a court order stating security services were required to be provided during court proceedings. A decision was made to continue security services through 2013 and beyond. Financial Impact: $24,000 Performance Metrics:
2011 Actual Workload Metric: Improve # PMs on time Reduce # days to complete service Reduce # days to complete repair 2012 Actual 2013 Estimated 2014 Projected (First 6 months) 94% 10 days 15 days 2014 Projected (End of Year) 93% 12 days 16 days

NA NA NA

99% NA NA

97% 7 days 10 days

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2014 Budget Highlights for General Services

Key Reduction Proposal
Title: Purchasing - Fleet Heavy Equipment Auction Description: Public Works has planned a heavy equipment auction for 2014. 15 heavy equipment vehicles at an average of $10,000 each for an estimated: $150,000.00. 20 light trucks at an average of $2000 each for an estimated: $40,0000. 2 Pavers at an average of $10,000 each for an estimated: $20,000. 1 Front Loader at an average of $20,000 each for an estimated: $20,000. Financial Impact: ($230,000)

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Accomplishments from 2013

The Facilities Management Division is continuing to maximize its usage of the INFOR EAM system, our enterprise asset management solution, to move closer to a comprehensive preventative and predictive maintenance strategy. Currently, we are utilizing 70% of INFOR functionality compared to only 10% in 2011. Facilities Management has completed 14 deferred maintenance projects in 2013 and 7 capital improvement projects so far in 2013. In 2012, the Strategic Initiatives Division has completed 21optimization projects in 2013, so far, that are projected to save $76,000 annually. General Services secured $400,789 in Xcel Energy rebates for 2012 and the projected rebate for 2013 is estimated to be $500,000. In 2013, the Sustainability Fund issued funding for $294,000 in projects with projected savings of $58,000 annually. The Division of Purchasing has achieved $2,767,163 in cost savings on competed solicitations as of September 15, 2013. The savings are achieved through awards below the budgeted amount of the previous bid and awards that mitigate increases in the cost of a commodity. Purchasing negotiated a Citywide Procurement Card/Travel Card contract with CitiBank in 2012. This contract increased the Citys rebate rate from 1.0% to 1.45%. The total amount of rebates from 2012 was $114,000. As of August 31, the total amount of rebates for 2013 is $183,000. In March 2013, we initiated a Central Services site on DOT to make information regarding printing, mail and copier services more readily available for our clients. An improved Facilities Management site also went live in June that includes on line repair requests and tenant handbooks for several of our larger facilities. A site for the Strategic Initiatives Division is in the works.
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