Administrative Services Proposed Rate Changes Fiscal Year 2020 - - PowerPoint PPT Presentation

▶
administrative services
SMART_READER_LITE
LIVE PREVIEW

Administrative Services Proposed Rate Changes Fiscal Year 2020 - - PowerPoint PPT Presentation

Apr 27, 2023 363 likes •1.22k views

Administrative Services Proposed Rate Changes Fiscal Year 2020 Presented to the DAS Rate Committee September 12, 2018 DAS AS IS ISF Re Resp sponsi nsibil biliti ities es Utah Code Section 63A-1-114 (2018) A DAS division that operates

slide-1
SLIDE 1

Administrative Services

Proposed Rate Changes

Fiscal Year 2020

Presented to the DAS Rate Committee September 12, 2018

slide-2
SLIDE 2

DAS AS IS ISF Re Resp sponsi nsibil biliti ities es

  • A DAS division that operates as an internal service fund (ISF) shall

submit to the DAS rate committee a proposed rate and fee schedule for services rendered to an executive branch entity or an entity that subscribes to services rendered.

  • DAS provides staff services to the committee.

Utah Code Section 63A-1-114 (2018)

slide-3
SLIDE 3

DAS AS Ra Rate te Com Commi mittee ttee Re Resp sponsibili

  • nsibilities

ties

  • Conduct meetings in accordance with OPMA;
  • Meet at least once each calendar year to:
  • discuss service performance;
  • review the proposed rate and fee schedules;
  • approve, increase, or decrease the rate and fee schedules; and
  • discuss any prior or potential adjustments to the service level received by

state agencies that pay rates to an Internal Service Fund (ISF);

  • Recommend ISF rates to GOMB and the Legislature, and
  • Review and approve interim rates.

Utah Code Section 63A-1-114 (2018)

slide-4
SLIDE 4

DAS AS Mi Miss ssion ion

Deliver support services of the highest quality and best value to government agencies and the public

slide-5
SLIDE 5

DAS AS Vis Visio ion

Be the preferred and most trusted provider of products, services, and innovative solutions to meet customer needs

slide-6
SLIDE 6

DAS Programs

Not Under DAS Supervision:

  • Office of the Inspector General of Medicaid Services
  • Independent Executive Branch Ethics Commission
  • Political Subdivision Ethics Review Commission

Administrative Rules Facilities Construction & Management

Building Official Construction Management Energy Efficiency Program Facilities Management Real Estate Transactions Team

Fleet Operations

Motor Pool Fuel Network State Travel

Purchasing & General Services

Purchasing Mail & Distribution Services Print Services

Risk Management

Administration Claims Loss Control

Finance

Accounting Operations Financial Information Systems Financial Reporting Office of State Debt Collection Payroll Finance Mandated Administration Archives Research Center Processing Preservation Records Analysis Records Center

Archives & Records Service

Department of Administrative Services

State Building Board

Surplus Property Information Systems Purchasing Card

slide-7
SLIDE 7

Ri Risk sk Ma Management nagement

Lia iabili bility ty Prop

  • per

erty ty Au Auto Worker kers s Co Comp mpen ensation sation Learni arning ng Managem ement ent Sy System tem

Finance Facilities Construction and Management Fleet Operations Purchasing and General Services

slide-8
SLIDE 8

Ris isk k Man anageme agement nt

Risk Management | Overview

Utah Code Title 63A, Chapter 4, “Risk Management”

Requires economically and actuarially sound management and adequate reserves for the payment of reported, unpaid, and unreported claims Mandates the appointment of a Risk Manager and establishes the Risk Management Fund

slide-9
SLIDE 9

In Insu surance rance

Risk Management | Overview

Risk Management has some advantages over traditional insurance providers

Pool members share the impact of rate increases Broader coverage for less money

slide-10
SLIDE 10

Ra Rates tes Ca Can n Ch Change ange

Risk Management | Overview

When claims roll off an agency’s 5-year history Increased claims costs from the past year Insurance market changes

slide-11
SLIDE 11

Li Liabil ability ity Pr Progr gram am

Risk Management | Overview

slide-12
SLIDE 12

Li Liab abili ility ty Re Reta tained ined Earni arning ngs s (H (Histor istorical) ical)

Risk Management | Liability Insurance | Retained Earnings

  • $7M
  • $5M
  • $3M
  • $1M

$1M $3M $5M $7M $9M FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018* preliminary Net Income Retained Earnings 60 Days Operating Capital

slide-13
SLIDE 13

Lo Loss sses an es and Pr d Premi emiums ums

Risk Management | Liability Insurance

School l Distr trict* ict* Liab iabilit ility y – per Pupil il Count Higher er Educa catio tion Liab iabilit ility y – per Pupil il Count Oth ther er Agenc encies ies Liab iabili ility ty – per 1K in Popula latio ion UDOT T Liability ability – per 100 Lan ane Miles es

*School Districts include Charter Schools.

slide-14
SLIDE 14

Li Liabil ability ity Re Reser serve ve Sta Statu tus

Risk Management | Liability Insurance

Actuarial Projection

$54,407,000

$(5,126,517) Balance

$49,280,483

slide-15
SLIDE 15

Ho How W w We Go e Got Her t Here

Risk Management | Liability Insurance

  • Unprecedented increase in liability claims
  • Lag time between actuarial projections and loss experience
  • Conservative projections to keep rates low and stable to

minimize retained earnings

slide-16
SLIDE 16

Li Liabil ability ity Ra Rate In te Incr crease/ ease/Allo Allocatio cation

Risk Management | Liability Insurance

Liability premiums will increase by $6,895,101 in FY2020 Individual entities will have increases or decreases based on loss history and risk exposure

slide-17
SLIDE 17
  • $14M
  • $12M
  • $10M
  • $8M
  • $6M
  • $4M
  • $2M

$M $2M $4M $6M FY2015 FY2016 FY2017 FY2018 preliminary FY2019 projected FY2020 projected FY2021 projected Net Income Retained Earnings 60 Days Operating Capital

Li Liabil ability ity Re Reta tain ined ed Ea Earnin rnings gs

Risk Management | Liability Insurance | Retained Earnings

slide-18
SLIDE 18

Li Liability ability Premiums emiums by Ris y Risk k Poo

  • ol

Re Re-cap capturin uring g Hist storic rical l Loss sses

Risk Management | Liability Insurance | Rate Changes

Premium Projections

(Numbers in Thousands)

Premiu miums ms Change ange Risk k Pool FY2019 FY2020 T

  • tal

al Per erce cent nt

School Districts & Charter Schools $7,824 $11,216 $3,392 43.4% Department of Transportation $2,557 $3,494 $937 36.6% Higher Education $3,103 $4,755 $1,652 53.2% Other Agencies $5,700 $6,613 $914 16.0% T

  • tal

al $19,18 184 $26,078 078 $6,895 95 35.9%

Rate Recommendation

slide-19
SLIDE 19

Pr Prope perty ty Pr Prem emiu iums ms

Risk Management | Property Insurance

Valuation, square footage, and CPI changes will affect the amount of premium collected for all agencies with property coverage Property premiums will increase by $961,400 in FY2020

slide-20
SLIDE 20
  • $3M
  • $2M
  • $1M

$M $1M $2M $3M $4M $5M $6M FY2015 FY2016 FY2017 FY2018 preliminary FY2019 projected FY2020 projected FY2021 projected Net Income Retained Earnings 60 Days Operating Capital

Pr Prope perty ty Re Reta tain ined ed Ea Earnin rnings gs

Risk Management | Property Insurance | Retained Earnings

slide-21
SLIDE 21

Pr Prope perty ty Pr Premi emiums by ums by Ri Risk sk Pool

Risk Management | Liability Insurance | Rate Changes

Premium Projections

(Numbers in Thousands)

Premiu miums ms Change ange Risk k Pool FY2019 FY2020 T

  • tal

al Per erce cent nt

School Districts & Charter Schools $8,448 $8,393 $(55) (0.7)% Higher Education $5,307 $6,276 $969 18.3% Other State Agencies $3,540 $3,588 $48 1.4% T

  • tal

al $17,29 295 $18,25 257 $962 962 5.6%

Rate Recommendation

slide-22
SLIDE 22

Au Auto to Pr Premi emiums ums

Risk Management | Automobile Insurance

Individual entities will have increases or decreases based on loss history and risk exposure Auto premiums will increase slightly in FY2020. Rates will now be calculated by an actuary.

slide-23
SLIDE 23

Aut Auto Phy

  • Physi

sical cal Da Dama mage ge Ra Rate te Ch Chan ange ges

Risk Management | Automobile Insurance

Curr rrent nt Schema ema Risk k Pool Value e < $35,000 Value e > $35,000 00

(per $100 0 of value) e)

School

  • ol Bus

Other r Vehicl cles es or Relate ted d Equi uipm pment nt

Public Safety $175 $0.80 $200 $75 Higher Education $125 $0.80 $200 $75 Other State Agencies $150 $0.80 $200 $75 Charter / School Districts $50 $0.80 $200 $75

Proposed

  • posed Schema

ma Car / T Truck ck Bus Sem emi-Truc ruck Trac actor tor

Weight: 1.0 1.5 5.0 1.0 FY2020 Rate: $116.25 $174.37 $581.25 $116.25

slide-24
SLIDE 24
  • $600K
  • $400K
  • $200K

$K $200K $400K $600K FY2015 FY2016 FY2017 FY2018 preliminary FY2019 projected FY2020 projected FY2021 projected Net Income Retained Earnings 60 Days Operating Capital

Au Auto to Re Reta tain ined ed Ea Earning rnings

Risk Management | Automobile Insurance | Retained Earnings

slide-25
SLIDE 25

Au Auto to Ph Physical ical Damage age Pr Premiums miums by Ri Risk k Poo

  • ol

Risk Management | Automobile Insurance | Rate Changes

Premium Projections

(Numbers in Thousands)

Premiu miums ms Change ange Risk k Pool FY2019 FY2020 T

  • tal

al Per erce cent nt

School Districts & Charter Schools $916 $1,008 $93 10.0% Higher Education $299 $328 $24 9.7% Other State Agencies $935 $1,078 $105 15.3% T

  • tal

al $2,150 50 $2,414 14 $222 222 12.3%

Rate Recommendation

slide-26
SLIDE 26
  • $2M

$M $2M $4M $6M FY2015 FY2016 FY2017 FY2018* preliminary FY2019 projected FY2020 projected FY2021 projected

Net Income Retained Earnings 60 Days Operating Capital

Wor

  • rker

kers s Co Compensation mpensation Ret etained ained Ea Earnings nings

Risk Management | Workers Compensation | Retained Earnings

*$2.5 million was transferred to Liability ($2.4 million) and Auto ($100,000) to help reduce the impact of premium increases.

slide-27
SLIDE 27

Wor

  • rke

kers s Co Compen pensation sation Pr Premiums miums by by Ri Risk k Poo

  • ol

Risk Management | Workers Compensation | Rate Changes

Premium Projections

(Numbers in Thousands)

Premiu miums ms Change ange Risk k Pool FY2019 FY2020 T

  • tal

al Per erce cent nt

UDOT Worker $1,139 $1,139 $0 0.0% Other/State Agencies $7,040 $5,845 $(1,195) (17.0)% Aviation $7 $7 $0 0.0% Total al $8,186 86 $6,991 91 $( $(1,1 ,195 95) ) (14.6)% 6)%

Rate Recommendation

slide-28
SLIDE 28

Le Learnin arning g Ma Mana nagemen gement t Sy System stem (L (LMS) MS)

Risk Management | Learning Management System (LMS)

The Utah Learning Portal is a statewide Learning Management System. A Risk Management employee provides assistance to other departments with implementation and system issues.

slide-29
SLIDE 29

Le Learnin arning g Ma Mana nagemen gement t Sy System stem (L (LMS) MS)

Risk Management | Learning Management System (LMS) | Rate Recommendation

Rate Recommendation

FY2020 Request Rate Change ange Progr

  • gram

am FY2019 FY2020 T

  • tal

Learning Management System – Enterprise Rate

$55/hour

$55/hour (minimum of 50 hours)

$2,750 per participating entity

slide-30
SLIDE 30

Ris isk k Ma Mana nage gement ment Rate e Com

  • mmittee

ittee Action ion

Risk Management | Rate Committee Actions

DAS Recommended Actions

Actio ion Slide e Number ber or Reference ence Change ge Approve liability premium increases 18 $6,895,101 Approve property premium increases 21 $961,400 Approve automobile premium increases 25 $221,600 Approve workers compensation premium decrease for “Other State Agencies” 27 ($1,195,200) Approve LMS rate impact 29 $30,250 Approve all other existing rates H.B. 8 (2018) Lines 2149-2301

slide-31
SLIDE 31

Risk Management

Fi Finance nance

Purcha hasing sing Ca Card

Finance Facilities Construction and Management Fleet Operations Purchasing and General Services

slide-32
SLIDE 32

Pu Purchasin chasing g Ca Card

Finance | Purchasing Card

The purchasing card provides an efficient, cost- effective method of purchasing and payment T

  • tal purchasing card usage

was $31.77 million in CY2017 (17.67% increase) The planned net rebate to State agencies and local governments is $344,802 and will be processed in August 2018 (16.8% increase)

slide-33
SLIDE 33

$K $100K $200K $300K $400K $500K $600K FY2015 FY2016 FY2017 FY2018* Early FY19* State Agencies Local Governments Federal Government

Reb ebates ates to to State tate Ag Agencies encies

(Net t of Progr

  • gram

am Co Costs) sts)

Finance | Purchasing Card

*Fiscal Year 2018 rebate will be distributed in early Fiscal Year 2019.

slide-34
SLIDE 34

Pu Purchasing chasing Ca Card d Re Reta tained ined Earnings arnings

Finance | Purchasing Card | Retained Earnings

  • $700K
  • $500K
  • $300K
  • $100K

$100K $300K $500K $700K FY2015 FY2016 FY2017 FY2018* preliminary FY2019* projected FY2020 projected FY2021 projected Net Income Retained Earnings 60 Days Operating Capital

*Net Income and Retained Earnings are higher due to delayed distribution of rebate.

slide-35
SLIDE 35

Pu Purchasin chasing g Ca Card d Ra Rates tes

Finance | Purchasing Card | Rate Recommendation

Rate Recommendation

No change to current rate structure

slide-36
SLIDE 36

Fin inanc nce Rate e Com

  • mmittee

ittee Action ion

Finance | Purchasing Card | Rate Committee Action

DAS Recommended Actions

Actio ion Slide e Number ber or Reference ence Change ge Approve existing rate H.B. 8 (2018) Lines 2010-2012

slide-37
SLIDE 37

Risk Management Finance

Fac acilit ilities ies Con Construction struction an and Manag d Management ement

Facilities ilities Manag agem emen ent

Fleet Operations Purchasing and General Services

slide-38
SLIDE 38

Pr Program gram Ef Effi fici ciencies encies

DFCM | Facilities Management Provided maintenance and management services to

  • ver 200 state-owned and

leased buildings $35 million FY2019 adjusted revenue 160 Authorized FTEs 143.5 Current FTEs Manage over 7.5 million square feet of space

The Division of Facilities Construction and Management (DFCM) provides building management service to state agency subscribers. Service includes preventative and corrective maintenance, grounds care, energy management, contract management and accounting services.

slide-39
SLIDE 39

Pr Program gram Ef Effi fici ciencies encies

DFCM | Facilities Management

DFCM is focused on efficient building operation

Statewide service through regionalized management groups Diverse portfolio including

  • ffice space, courthouses,

laboratories, retail, warehouse, and veterans assisted living Combination of internal staff and private sector resources to provide cost-effective services Average operations and maintenance costs: 36% below local average 52% below national average

slide-40
SLIDE 40

Co Cost P st Per S er Squ quar are e Fo Foot

DFCM | Facilities Management

Based on BUILDING OWNERS AND MANAGERS ASSOCIATION (BOMA) Data Calendar Year 2017 Information

$9.80 .80 $11.4 .49 $7.34 .34 $4.67 $4.82

$0 $2 $4 $6 $8 $10 $12 $14 U S Private U S Government SLC Private DFCM FY2018, projected DFCM FY2020, projected

slide-41
SLIDE 41

Facilities cilities Management anagement Ret etained ained Ea Earnings nings

DFCM | Facilities Management | Retained Earnings

  • $1M

$M $1M $2M $3M $4M $5M $6M FY2015 FY2016 FY2017 FY2018 preliminary FY2019 projected FY2020 projected FY2021 projected Net Income Retained Earnings 60 Days Operating Capital

slide-42
SLIDE 42

10 20 30 40 50 60 70 FY 2015 FY 2016 FY 2017 FY 2018 preliminary FY 2019 projected FY 2020 projected FY 2021 projected Actual Retained Earnings (in days) Allowed Days of Retained Earnings

Fac acilities ilities Man anagement agement Re Reta tained ined Ea Earnings rnings (Days ays)

DFCM | Facilities Management | Retained Earnings

slide-43
SLIDE 43

Rate adjustments for the following 7 programs:

Progra ram Amount of Increas ase (Decr creas ase) e) Reaso son 1310 Richfield DNR $30,000 Deficit Reduction 1333 St. George Court $50,000 Deficit Reduction 1357 Orem Court $30,000 Deficit Reduction 1374 Price DPS $25,000 Deficit Reduction 1383 Payson VA $20,000 Deficit Reduction 1562 West Valley Court $30,000 Deficit Reduction 1569 ABC Complex $120,000 Deficit Reduction Total $305,000

Fac acili ilitie ties Ma s Managem nagement ent Ra Rates tes

DFCM | Facilities Management | Rate Changes

Rate Recommendation

slide-44
SLIDE 44

FY2019 Authorized – New programs or scope changes:

Progra ram Amount of Increas ease (Decreas ease) e) Reaso son 1465 ABC Store - Herriman $52,020.00 New store February, 2019 1706 ABC Store - Syracuse $45,900.00 New store October, 2018 1347 Provo Juvenile Court $(131,656.92) Will only house Juvenile Work Crew after 1/1/2019 1354 Provo Court $(124,750.00) Transfer building to Mountainland T echnical College 2/1/2019 1380 New Provo Courts/T errace $1,320,997.88 Court/T errace 310,492 square feet Occupancy date 2/1/2019 1609 New DEQ Building $62,788.63 21,139 square feet Occupancy date Spring 2019

T

  • tals

ls

$1,225,299.59

Fac acili ilitie ties Ma s Managem nagement ent Ra Rates tes

DFCM | Facilities Management | Rate Changes

Rate Recommendation

NOTE: These facilities have been funded through another process.

Updated 9/11/2018

slide-45
SLIDE 45

Fac acilities ilities Man anagement agement La Labo bor r (Garage) arage) Ra Rate tes

DFCM | Facilities Management | Rate Changes FY2020 Request – Garage rate adjustments

Rate Recommendation

Labor

  • r

FY2019 FY2020 Increase se (Decrease se) Apprentice Maintenance

$42 $45 7%

Electronics Resource Group

$46 $48 4%

Facilities Manager / Coordinator II

$58 $65 12%

Grounds Manager

$40 $43 8%

Grounds Supervisor

$38 $40 5%

Groundskeeper

$36 $41 14%

Journey Boiler Operator

$55 $58 5%

Journey Carpenter

$50 $52 4%

Journey Electrician

$53 $56 6%

Journey HVAC

$51 $55 8%

Journey Maintenance

$47 $50 6%

Journey Plumber

$51 $54 6%

Maintenance Supervisor

$50 $51 2%

Mechanics

$40 $42 5%

Office T echnician

$38 $40 5%

T emp Groundskeeper

$21 $26 24%

slide-46
SLIDE 46

Facilit cilities ies Con

  • nstructi

struction

  • n and

nd Ma Mana nageme gement nt Rate e Com

  • mmittee

ittee Action ion

DFCM | Facilities Management | Rate Committee Action

DAS Recommended Actions

Actio ion Slide e Number ber or Reference ence Change ge Approve rate adjustments for seven programs 43 $305,000 Approve six new programs or scope changes 44 $1,225,300 Approve Labor (garage) rate adjustments 45 varies Approve all other existing rates H.B. 8 (2018) Lines 1874-2005

  • Updated 9/11/2018
slide-47
SLIDE 47

Risk Management Finance Facilities Construction and Management

Fl Fleet eet Op Operations erations

Motor r Pool Fu Fuel l Ne Network

  • rk

St State te Trav avel el Tran ansactio sactions ns T eam

Purchasing and General Services

slide-48
SLIDE 48

Fleet Operations | Motor Pool

Moto tor r Pool

4,621 Fleet Operations vehicles 7,817 total vehicles in the State fleet 367 private sector vendors T elematics pilot KeyValet key kiosk pilot

Numbers current as of June 30, 2018

slide-49
SLIDE 49

$37.9M $41.6M $33.3M $31.4M $27.6M $21.8M $20.1M $M $10M $20M $30M $40M $50M FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 preliminary FY2019 projected Debt to General Fund

Fleet Operations | Motor Pool

Moto tor r Pool Debt l Debt to G to Gen enera eral Fund l Fund

slide-50
SLIDE 50

Fleet Operations | Motor Pool Contrac ract Price 2013 model year contract price for class Salvag vage Valu lue Light trucks Select sedans Select SUVs All others 21% 18% 21% 17% Lifecyc cycle le Current lifecycle (in months) based on actual mileage Fees Admin fee and Management Information System (MIS) Alternative Fuel Vehicle (AFV) fees

Monthly Lease Rate 2013 Contract Price – Salvage Lifecycle Fees

Salvage vage Valu lue e (estimate imated at 25% of contract act price) e)

Pr Previousl viously y Ap Appr proved

  • ved

Mot

  • tor
  • r Poo
  • ol Mon
  • nth

thly ly Le Lease e Ra Rate te

slide-51
SLIDE 51

Fleet Operations | Motor Pool

Moto tor r Pool Mo l Monthl nthly y Lea Lease R se Rat ate

Contrac ract Price 2013 model year contract price for class Salvag vage Valu lue Light trucks Select sedans Select SUVs All others 21% 18% 21% 17% Lifecyc cycle le Current lifecycle (in months) based on actual mileage Fees Admin fee and Management Information System (MIS) Alternative Fuel Vehicle (AFV) fees

Monthly Lease Rate 2013 Contract Price – Salvage Lifecycle Fees

Salvage Value (estimated at 25% of contract price) applie ied retroact

  • active

ively ly to all existi ting ng vehic icles es

slide-52
SLIDE 52
  • $10M

$M $10M $20M $30M $40M FY2015 FY2016 FY2017 FY2018 preliminary FY2019 projected FY2020 projected FY2021 projected Net Income Retained Earnings 60 Days Operating Capital Debt to General Fund

Fleet Operations | Motor Pool | Retained Earnings

Moto tor r Pool Reta l Retain ined ed Ea Earnin rnings gs

slide-53
SLIDE 53

Fleet Operations | Motor Pool | Rate Changes

Moto tor r Pool Rat l Rates es

Rate Recommendation

FY2020 Request

Fee Fee FY201 019 FY202 020 Increas ease e (Decrease) ease) Monthly Lease Rate Contract Price – Salvage / Years + Fees Bring all vehicles less than 25% salvage up to 25%

  • 5.82%
slide-54
SLIDE 54

Fleet Operations | Fuel Network

Fu Fuel el Net Netwo work rk

18,270,211.42 million gallons dispensed 37,511 vehicles participate 450 tanks state-wide 130 sites with card readers 6 CNG fuel sites

Numbers current as of June 30, 2018

slide-55
SLIDE 55
  • $2000K
  • $1000K

$K $1000K $2000K $3000K $4000K $5000K $6000K FY2015 FY2016 FY2017 FY2018 preliminary FY2019 projected FY2020 projected FY2021 projected Net Income Retained Earnings 60 Days Operating Capital

Fleet Operations | Fuel Network| Retained Earnings

Fu Fuel el Net Netwo work rk Re Reta tain ined ed Ea Earnings rnings

slide-56
SLIDE 56

Fleet Operations | Fuel Network| Rate Changes

Fu Fuel el Net Netwo work rk Ra Rates tes

Rate Recommendation

No change to current rate structure

slide-57
SLIDE 57

Fleet Operations | State Travel Office

St Stat ate e Tra rave vel Off l Office ice

Booked 7,205 car reservations Made 11,571 hotel reservations Issued 19,870 airline tickets

Numbers current as of June 30, 2018

slide-58
SLIDE 58
  • $20K

$K $20K $40K $60K $80K $100K $120K $140K $160K FY2015 FY2016 FY2017 FY2018 preliminary FY2019 projected FY2020 projected FY2021 projected Net Income Retained Earnings 60 Days Operating Capital

Fleet Operations | State Travel Office | Retained Earnings

St Stat ate e Tra ravel el Off ffice ice Re Reta tained ined Earni arning ngs

slide-59
SLIDE 59

Fleet Operations | State Travel Office | Rate Changes

St Stat ate e Tra rave vel Off l Office ice Ra Rates tes

Rate Recommendation

No change to current rate structure

slide-60
SLIDE 60

Fleet Operations | Transactions Team

Tra ransact nsaction ions s T ea eam

13 Customers 9 Employees 116,975 Processed Transactions

Numbers current as of June 30, 2018

slide-61
SLIDE 61
  • $100K
  • $50K

$K $50K $100K $150K $200K $250K $300K FY2015 FY2016 FY2017 FY2018 preliminary FY2019 projected FY2020 projected FY2021 projected Net Income Retained Earnings 60 Days Operating Capital

Fleet Operations | Transactions Team| Retained Earnings

Tra rans nsacti action

  • ns

s T eam am Re Reta tained ined Earn arnin ings gs

slide-62
SLIDE 62

Fleet Operations | Transactions Team| Rate Changes

Tra ransact nsaction ions s T ea eam Ra m Rates tes

Rate Recommendation

No change to current rate structure

slide-63
SLIDE 63

Fleet Operations | Rate Committee Actions

Fleet leet Op Opera erations tions Rate e Com

  • mmittee

ittee Action ion

DAS Recommended Actions

Actio ion Slide e Number ber or Reference ence Change ge Approve Lease rate modifications 53 ($807,900) Approve all other existing rates H.B. 8 (2018), Lines 2007-2009, 2013-2072

slide-64
SLIDE 64

Risk Management Finance Facilities Construction and Management Fleet Operations

Pu Purchasi chasing ng an and General d General Se Servi vices ces

Co Coop

  • perative

erative Co Contrac tracts ts St State/Federal te/Federal Su Surplu plus s Proper erty ty Prin int t Se Services vices Ma Mail il and Di Distribu tributio tion Se Services vices

slide-65
SLIDE 65

Purchasing and General Services | Cooperative Contracts| Overview

Pu Purchasin chasing

Division of Purchasing Agency Contracts Executive Branch Agencies 1773 Requisitions Courtesy Posting Solicitations 137 Solicitations Cooperative Contracts 1080 State Cooperative Contracts

slide-66
SLIDE 66

Purchasing and General Services | Cooperative Contracts| Overview

St Stat ate e Co Coop

  • per

erative ative Co Contr ntract act Pr Prog

  • gra

ram

Better contractual terms for public entities Save public entities time in procurement

  • f goods and

services Compliant with the Utah Procurement Code Some of the best pricing in the nation Save public entities administrative costs in managing contracts

Benefits of State Cooperative Contracts

slide-67
SLIDE 67

Purchasing and General Services | Cooperative Contracts| FY2017 Total Spend

Co Coop

  • perative

erative Co Cont ntracts racts T

  • ta
  • tal

l Sp Spend end

State Purchasing Cooperative Contracts $568.2M total spend

Cities $83.6M spend (voluntary use) State te Agencie cies $166.7M .7M spend nd (requi quired ed use) Service Districts & Non-profits $47.5M spend (voluntary use) Higher Ed $98.1M spend (voluntary use) School Districts $129.8M spend (voluntary use) Counties $42.3M spend (voluntary use)

slide-68
SLIDE 68

450 486 547

100 200 300 400 500 600 FY2016 FY2017 FY2018

Purchasing and General Services | Cooperative Contracts| Total Number of Users

Public Entities Using State Purchasing’s Co Coop

  • perative

rative Co Cont ntracts acts

slide-69
SLIDE 69

Purchasing and General Services | Cooperative Contracts| Current Rates

Co Coop

  • pera

erative tive Co Contr ntracts acts Ap Appr proved

  • ved Ra

Rate te

Maximum approved fee Average administrative fee

FY2018 Rate Structure

.35% 1%

Note: National average for cooperative

  • rganizations, like State Purchasing, is a

1.63% administrative fee.

slide-70
SLIDE 70

Purchasing and General Services | Cooperative Contracts | Retained Earnings

Co Coop

  • perative

erative Co Cont ntracts racts Ret etained ained Ea Earnings nings

  • $2M
  • $1M

$M $1M $2M $3M $4M $5M $6M $7M FY2015 FY2016 FY2017 FY2018* preliminary FY2019 projected FY2020 projected FY2021 projected Net Income Retained Earnings 60 Days Operating Capital

* $1 million was transferred to State Mail and Print Services to help lower debt.

slide-71
SLIDE 71

Purchasing and General Services | Cooperative Contracts| Retained Earnings

Co Coop

  • perative

erative Co Cont ntracts racts Ret etained ained Ea Earnings nings

A higher-than-normal retained earnings balance is needed to keep the cooperative contracting program functioning in the event of an economic

  • downturn. Because so many state and non-state

public entities are reliant on the use of state contracts, sufficient reserves must be maintained.

slide-72
SLIDE 72

Purchasing and General Services | Cooperative Contracts| Rate Recommendation

Co Cooperat perative Co ive Contract ntracts Ra s Rates tes

Rate Recommendation

No change to current rate structure

slide-73
SLIDE 73

Purchasing and General Services | State/Federal Surplus Property

St State/Federal te/Federal Su Surplus rplus Pr Prop

  • per

erty ty Pr Prog

  • grams

rams

$536,000 Saved Utah law enforcement agencies through the 1033 program $785,650 Saved Utah governmental agencies through the Federal Donation Program $6,076,517 Returned to agencies through the state surplus program FY 2018

slide-74
SLIDE 74
  • $200K
  • $100K

$K $100K $200K $300K $400K $500K $600K FY2015 FY2016 FY2017 FY2018 preliminary FY2019 projected FY2020 projected FY2021 projected Net Income Retained Earnings 60 Days Operating Capital

Purchasing and General Services | State/Federal Surplus Property | Retained Earnings

St State te Su Surplus rplus Pr Prop

  • per

erty ty Ret etained ained Ea Earnings nings

slide-75
SLIDE 75
  • $60K
  • $40K
  • $20K

$K $20K $40K $60K $80K $100K FY2015 FY2016 FY2017 FY2018 preliminary FY2019 projected FY2020 projected FY2021 projected Net Income Retained Earnings 360 Days Operating Capital

Purchasing and General Services | State/Federal Surplus Property | Retained Earnings

Fe Federal eral Su Surplus rplus Pr Prop

  • per

erty ty Ret etained ained Ea Earnings nings

slide-76
SLIDE 76

Purchasing and General Services | State/Federal Surplus Property | Future Considerations

Fu Futu ture e Co Consi nsiderat deration ions

State Surplus will need to relocate from its Draper facility in the next few years as the land by the State Prison is developed. Currently, the Draper facility is on a 10 acre plot

  • f land with a 25,000 square foot building to

store surplus items. Vehicles and heavy equipment are stored outside of the building The revenue bond on the Draper facility will finish in FY2019.

slide-77
SLIDE 77

Purchasing and General Services | State/Federal Surplus Property | Rate Recommendation

St Stat ate/Federal e/Federal Sur Surpl plus us Pr Prop

  • per

erty ty Ra Rate tes

Rate Recommendation

No change to current rate structure

slide-78
SLIDE 78

Purchasing and General Services | Print Services

Pr Prin int t Se Servi vices Pr ces Program gram

Sta tate te Copy y Center enter

(Xerox x Contract) tract)

Digital tal Pr Print nt Ser ervices vices

(Copier

  • pier Le

Lease se Prog

  • gra

ram)

5,571,188 impressions 59,337,848 impressions 100% accuracy 100% on-time delivery 1,222 copiers in the program 1,267 print jobs Average lifecycle is 2 years longer than national average FY 2018

slide-79
SLIDE 79
  • $200K
  • $100K

$K $100K $200K $300K $400K $500K $600K $700K $800K $900K FY2015 FY2016 FY2017 FY2018 preliminary FY2019 projected FY2020 projected FY2021 projected Net Income Retained Earnings 60 Days Operating Capital

Purchasing and General Services | Print Services | Retained Earnings

Pr Prin int t Se Servi vices Ret ces Retai ained ned Ea Earnin rnings gs

slide-80
SLIDE 80

Purchasing and General Services | Print Services | Rate Recommendation

Pr Prin int t Se Servi vices Ra ces Rates tes

Rate Recommendation

No change to current rate structure

slide-81
SLIDE 81

Purchasing and General Services | Mail and Production Services

Ma Mail il an and Di d Dist stri ributio bution n Se Services ices Pr Prog

  • gram

ram

21,742,737 Pieces of mail processed $1,323,626 Cost Avoidance by State Mail for processing mail for USPS 68,386,506 Billable Production T asks Completed 99% of Production T asks are completed on time FY 2018

slide-82
SLIDE 82
  • $1.M
  • $.5M

$.M $.5M $1.M $1.5M $2.M $2.5M FY2015 FY2016 FY2017 FY2018 preliminary FY2019 projected FY2020 projected FY2021 projected Net Income Retained Earnings 60 Days Operating Capital

Purchasing and General Services | Mail and Production Services | Retained Earnings

St Stat ate e Mai ail Reta l Retain ined ed Ea Earnin rnings gs

slide-83
SLIDE 83

Purchasing and General Services | Mail and Production Services | Rate Recommendation

Mai ail l an and Di d Dist stri ribut bution ion Rat ates es

Rate Recommendation

No change to current rate structure

slide-84
SLIDE 84

Purchasi chasing ng and General neral Ser ervices vices Rate e Com

  • mmittee

ittee Action ion

Purchasing | Rate Committee Action

DAS Recommended Actions

Actio ion Slide e Number ber or Reference ence Change ge Approve all existing rates H.B. 8 (2018) Lines 2073-2148

slide-85
SLIDE 85

Thank You