DAS Organization: Programs

DAS Organization: Programs

Administrative Services Proposed Rate Changes Fiscal Year 2018 Overview Facilities Fleet Operations Purchasing Risk Management Finance Our Mission Deliver support services of the highest quality and best value to government agencies and the public Overview Facilities Fleet Operations Purchasing Risk Management Finance Our Vision Be the preferred and most trusted provider of products, services, and innovative solutions to meet customer needs Overview Facilities Fleet Operations Purchasing Risk Management Finance Our Values Integrity Honesty Transparency Accountability Reliability Leadership Quality Flexibility Collaboration

Teamwork Our Goals Overview Facilities Fleet Operations 1. Improve the efficiency and effectiveness of DAS Operations 2. Develop a quality, high-performing workforce 3. Improve customer relations and communications 4. Institutionalize cyber-security and emergency preparedness Purchasing Risk Management Finance DAS Organization: Programs Overview Department of Administrative Services Facilities Fleet Operations Administrative Rules Archives & Records Service Facilities Construction & Management Purchasing

Risk Management Finance State Building Board Fleet Operations Finance Administration Building Official Consolidated Budget & Accounting Archives Research Center Construction Management Finance Mandated Processing Purchasing & General Services Risk Management Motor Pool Purchasing Administration Accounting Operations Fuel State Mail Claims Energy Efficiency

Program Financial Information Systems State Travel General Services Loss Control Preservation Facilities Management Financial Reporting Records Analysis Real Estate Office of State Debt Collection Records Center Payroll Facilities Construction and Management Program Efficiencies Overview Facilities Facilities Management Fleet Operations Purchasing Risk Management 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. Finance

Provided maintenance and management services to over 180 state-owned and leased buildings $30 million FY2017 adjusted revenue 134 Authorized FTEs 112 Current FTEs Manage over 7 million square feet of space Program Efficiencies Overview Facilities Facilities Management Fleet Operations DFCMs focus is on efficient building operation Purchasing Risk Management Finance Average operations and maintenance costs: 25% below local average 48% below national average Statewide service through regionalized management groups Diverse portfolio including office space, courthouses, laboratories, retail, warehouse, and veterans assisted living Combination of

internal staff and private sector resources to provide cost-effective services Cost Per Square Foot Overview $10.00 Facilities Facilities Management $8.00 Fleet Operations Purchasing $6.00 Risk Management Finance $9.12 $8.72 $4.00 $6.37 $4.74 $2.00 $0.00 Based on BOMA calendar year 2015 information $4.85 Facilities Management Rates Overview Facilities FY2018 Request Rate adjustments for the following 15 programs: Program Increase (Decrease) Reason 1331 Dixie Drivers License

$ 12,628 Deficit reduction 1336 Cedar City AP&P $ 5,040 Fleet Operations Deficit reduction 1355 DWS Provo $ 17,290 Deficit reduction Purchasing 1374 DPS Price $ 27,217 Risk Management Deficit reduction 1413 Unified Lab $ 94,031 Deficit reduction 1451 West Jordan Courts $ 70,039 Deficit reduction 1459 DPS/Drivers License $ 31,513 Deficit reduction

1462 UCAT Administration $ 15,002 Deficit reduction 1594 DHS Vernal $ 13,892 Deficit reduction 1617 Fairpark DLD $ 18,134 Deficit reduction Facilities Management Rate Changes Finance Facilities Management Rates Overview FY2017 Authorized New programs or scope changes: Facilities Program Facilities Management Rate Changes Fleet Operations Purchasing Risk Management Finance Increase (Decrease) Reason 1303 Vernal Regional Center ($

28,821) 1315 Richfield Court $ 2,381 1337 Cedar City DNR $ 62,790 New location 1338 Ivins VA Nursing Home $ 83,064 New location 1344 Wasatch Courts ($ 5,028) MOU change 1378 Spanish Fork Vet Lab $ 35,716 New location 1383 Payson VA Nursing Home $ 79,106 New location 1412 Unified Lab Module #2 $ 432,918 New location 1568 ICAP Building

DPS moved out Scope change ($ 14,517) Courts moved out 1588 Vernal Drivers License $ 18,250 New location 1610 Tax Commission $ 42,000 Scope change 1727 Clearfield Warehouse C7 $ 20,677 Scope change 1731 Ogden VA Nursing Home $ 52,945 New location Total $ 781,481 Facilities Management Labor (Garage) Rates Overview Facilities Facilities Management Rate Changes Fleet Operations

Purchasing Risk Management Finance FY2018 Request Garage rate adjustments Increase (Decrease) Labor Administrative Staff FY2017 $41.21 FY2018 $47.43 Electronics Resource Group $41.85 $43.57 4.11% Facilities Manager $51.72 $53.61 3.65% Maintenance Supervisor $46.83 $47.54 1.52% Office Technician $35.45 $36.84 3.92% Apprentice Maintenance $38.29 $40.29

5.22% Journey Maintenance $43.16 $45.09 4.47% Journey Electrician $49.15 $50.11 1.95% Journey HVAC $46.44 $48.25 3.90% Grounds Manager $37.51 $37.76 0.67% Grounds Supervisor $34.03 $36.24 6.49% Mechanics $37.58 $38.01 1.14% Groundskeeper $31.38 $32.07

2.20% Temp Groundskeeper $18.17 $18.20 0.17% 15.09% Facilities Maintenance Retained Earnings Overview Facilities Facilities Management $6,000,000 $5,000,000 Rate Changes $4,000,000 Retained Earnings $3,000,000 Fleet Operations $2,000,000 Purchasing $1,000,000 Risk Management Finance $0 -$1,000,000 -$2,000,000 13 0 2 FY 14 0 2 FY

Net Income 15 0 2 FY Retained Earnings 16 0 2 FY d te c e oj pr pr 7 8 01 01 2 2 FY FY 60 Days Operating Capital d te c e oj Facilities Maintenance Retained Earnings (Days) Overview Facilities Facilities Management Rate Changes Retained Earnings Fleet Operations 70 60 50

40 Purchasing Risk Management Finance 30 20 10 0 FY2013 FY2014 FY2015 Actual Days of Retained Earnings FY2016 FY2017 projected Allowed Days of Retained Earnings FY2018 projected Facilities Construction and Management Rate Committee Action Overview Facilities Facilities Management Rate Committee Action Fleet Operations Purchasing Risk Management Finance Requested Actions Action Slide Number Amount Rate adjustments for 15 programs 11

$883,052 Thirteen new programs or scope changes 12 $781,481 Labor (garage) rate adjustments 13 Varying Approve all other existing rates Fleet Operations Fleet Operations Overview Facilities Fleet Operations Purchasing Risk Management Finance Motor Pool Fuel Netwo rk State Travel Office Motor Pool Overview Facilities Fleet Operations 7,864 total vehicles in the State fleet Motor Pool Purchasing Risk Management

Finance 340 private sector vendors 4,750 Fleet Operations vehicles On-demand motor pool partnership with Enterprise eBike pilot Motor Pool Monthly Lease Rate Overview Facilities Fleet Operations Monthly Lease Rate Motor Pool 2013 Contract Price Salvage Lifecycle Fees Rate Changes Purchasing Contract Price 2013 model year contract price for class Risk Management Salvage Value Light trucks Select sedans Select SUVs All others Lifecycle Current lifecycle (in months) based on actual mileage Fees

Admin fee, Management Information System (MIS), and Alternative Fuel Vehicle (AFV) fees. Finance 21% 18% 21% 17% Motor Pool Overview Rate Recommendation Facilities Fleet Operations Motor Pool Rate Changes FY2018 Request Remove fees Purchasing Fee 2017 2018 Increase (Decrease) Risk Management Monthly lease rate Class rate Actual contract Finance AFV fee $3.63 per month $00.00 (100%) Premium fuel use fee $0.20 per gallon

$00.00 (100%) Operator incentive alternative fuel use $0.20 per gallon $00.00 (100%) 00.62% Motor Pool Debt to General Fund Overview Facilities Fleet Operations $45,000,000 $40,000,000 $35,000,000 Motor Pool Rate Changes $30,000,000 Purchasing $25,000,000 Risk Management $20,000,000 Finance $15,000,000 $10,000,000 $5,000,000 $12 0 2 FY 13 0 2 FY 14

0 2 FY 15 0 2 FY Debt to General Fund 16 0 2 FY 17 0 2 FY pr d te c e oj 18 0 2 FY pr d te c e oj Motor Pool Retained Earnings Overview Facilities $14,000,000 Fleet Operations $12,000,000 Motor Pool Rate Changes Retained Earnings

Purchasing Risk Management Finance $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $$(2,000,000) $(4,000,000) FY2012 FY2013 FY2014 FY2015 Net Income Retained Earnings FY2016 FY2017 projected FY2018 projected 60 Days Operating Capital Updated 9/2/2016 Fuel Network Overview Facilities Fleet Operations Motor Pool Fuel Network Purchasing Risk Management Finance 40,000 vehicles participate 18 million gallons dispensed 450 tanks state-wide 130 sites with card readers 7 CNG fuel sites

Federal and State compliant Fuel Network Rates Overview Rate Recommendation Facilities Fleet Operations Return the Per gallon charge at State sites less than 60,000 gallons per year to $0.105 per gallon Motor Pool Fuel Network Rate Changes Purchasing Risk Management Finance FY2018 Request Gasoline/diesel fees adjustment: Fee 2017 2018 Increase (Decrease) High Volume (60,000 gallons plus per year) per gallon charge at State sites $0.065 per gallon $0.065 per gallon Low Volume (Less than 60,000 gallons per year) per gallon charge at State sites $0.065 per gallon $0.105 per gallon Per transaction fee at State sites 3% per

transaction 3% per transaction 00.00% Per gallon charge at CNG sites $1.150 per gallon $1.150 per gallon 00.00% 00.00% 61.90% Fuel Network Retained Earnings Overview Facilities Fleet Operations $8,000,000 $6,000,000 Motor Pool Fuel Network $4,000,000 Rate Changes Retained Earnings Purchasing Risk Management $2,000,000 $- $(2,000,000) Finance $(4,000,000) 12 0 2 FY

13 0 2 FY Net Income 14 0 2 FY 15 0 2 FY Retained Earnings 16 0 2 FY d te c e oj pr pr 7 8 01 01 2 2 FY FY 60 Days Operating Capital d te c e oj State Travel Office Overview Facilities Fleet Operations Motor Pool Fuel Network State Travel

Office Purchasing Risk Management Finance Booked 5,642 car reservations Made 7,675 hotel reservations Issued 19,225 airline tickets State Travel Office Rate Recommendation Rate Recommendation Overview Facilities Fleet Operations Motor Pool Fuel Network State Travel Office Rate Changes Purchasing Risk Management Finance Increase travel agency service fee by $1.00 in each category and decrease the rental car admin fee FY2018 Request Travel agency service fee request Travel Agency Service Fee 2017 2018 Increase (Decrease) Online $15.00 $16.00 6.66%

School/higher ed agents $15.00 $16.00 6.66% State agents $20.00 $21.00 5.00% Agent group (46+ people) $17.50 $18.50 5.71% Agent group (26 45 people) $20.00 $21.00 5.00% Agent group (16 25 people) $22.50 $23.50 4.44% Agent $25.00 $26.00 4.00% Rental car admin fee 3.5% 1.0% (71.43%)

State Travel Office Retained Earnings Overview Facilities Fleet Operations Motor Pool Fuel Network State Travel Office $100,000 $80,000 $60,000 $40,000 Rate Changes Retained Earnings Purchasing Risk Management Finance $20,000 $$(20,000) 12 0 2 FY 13 0 2 FY Net Income 14 0 2 FY 15 0 2 FY Retained Earnings 16 0 2 FY

d te c e oj pr pr 7 8 01 01 2 2 FY FY 60 Days Operating Capital d te c e oj Fleet Operations Rate Committee Action Overview Facilities Fleet Operations Requested Actions Motor Pool Action Fuel Network Charge approved lease rate 21 Remove fees 21 Increase low volume per gallon fee by $0.04 25 Increase travel fees by $1.00 each 28 Reduce rental car admin fee to 1.0%

28 State Travel Office Rate Committee Action Purchasing Risk Management Finance Approve all other existing rates Slide Number Purchasing and General Services Purchasing and General Services Overview Facilities Fleet Operations Purchasing Risk Management Cooperati ve Contracts State/ Federal Surplus Property Print Services State Mail Finance Cooperative Contracts Overview Facilities Fleet Operations Counties $106M usage (voluntary use) Cities

$285M usage (voluntary use) State Agencies $989M usage (required use) Purchasing Cooperative Contracts State Purchasing 750 cooperative contracts $1.9B total usage Risk Management Finance School Districts $144M usage (voluntary use) Higher Ed $258M usage (voluntary use) Service Districts & Non-profits $46M usage (voluntary use) Cooperative Contracts Rates Overview Facilities Fleet Operations Current Rate Structure Purchasing Cooperative Contracts Rate Changes Risk Management Finance Vendor-funded administrative fees State agencies pay nothing Maximum fee

Current average fee Administrative fees are being lowered on contracts as each contract is rebid Utah Belongs to a National Purchasing Cooperative Overview Facilities Fleet Operations Purchasing Cooperative Contracts Rate Changes Risk Management Finance NASPO ValuePoint brings together the purchasing power of all 50 states Volume discount pricing Improved contract terms and conditions Better service and maintenance agreements 5 of State Purchasings 750 cooperative contracts are through the NASPO ValuePoint cooperative purchasing Legislative Audit of NASPO ValuePoint Overview Facilities Findings Fleet Operations Purchasing Cooperative Contracts Rate Changes Risk Management

Finance NASPO ValuePoint contracts have lower prices and fees than other purchasing cooperatives 3 X Administrative fees on NASPO ValuePoint contracts are 3 times lower than other purchasing contracts State Purchasing saves money by using NASPO ValuePoint contracts Cooperative Contracts Retained Earnings Overview Facilities Fleet Operations Purchasing Cooperative Contracts Rate Changes Retained Earnings $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- Risk Management $(1,000,000) Finance $(2,000,000) 12 0 2 FY 13 0 2

FY Net Income 14 0 2 FY 15 0 2 FY Retained Earnings 16 0 2 FY o pr je ed t c 17 18 0 0 2 2 FY FY 60 Days Operating Capital o pr je ed t c Cooperative Contracts Retained Earnings Overview Facilities Fleet Operations Purchasing Cooperative

Contracts Rate Changes Retained Earnings Risk Management Finance 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. State/Federal Surplus Overview Facilities Fleet Operations Purchasing Cooperative Contracts State/Federal Surplus Risk Management Finance Saved Utah law enforcement agencies $95,950 through the 1033 program Saved Utah Implemented governmental disposal of nonagencies vehicle items $1,870,099 through required by SB 122 the Federal (2015 G.S.) Donation Program Average price of vehicle sales using NADA Outside vendor: 94% Surplus: 115%

State/Federal FY2016 Authorized Rates Overview Rate Recommendation Facilities No change to current rate structure Fleet Operations Purchasing Cooperative Contracts State/Federal Surplus Risk Management Finance State Property Rates General Rates Miscellaneous Property Pickup/Process Fee Handheld Devices (PDSs and Wireless Phones) Less Than 1 Year Old 1 Year Old Unique Property Processing Fee Financial Card Fee (per Purchase Amount) Electronic/Hazardous Waste Recycling Fees Vehicles and Heavy Equipment Defaulted Auctions Bids Service Rates Labor (per hour, half hour minimum) Copy Rates Semi Truck and Trailer Service Two-ton Flat Bed Service Forklift Service (4 6,000 lb) Processing Rates On-site sale away from USASP yard Storage Rates Storage building Storage fenced lot Additional Management Fees Late Fees Past 30-days Late Fee (accounts receivable) Past 60-days Late Fee (accounts receivable) Federal Property Rates Federal Shipping and Handling Charges

Total sales proceeds (less prorated rebate of retained earnings) 75% of actual cost 50% of cost, $ 30.00 minimum Negotiated percent of sales price 3% of purchase amount Actual cost $ 100.00 plus 6.5% of net sales price 10% of sales price $ $ $ $ $ 26.00/hour 0.10/copy 1.08/mile 0.61/mile 23.00/hour 7% of net sale price maximum negotiable $ 0.43/cu/month $ 0.23/sq/month 5% balance 10% balance Generally 20% of federal acquisition cost plus freight/shipping charges State Surplus Retained Earnings Overview $700,000 Facilities $600,000 Fleet Operations $500,000 Purchasing $400,000 $300,000 Cooperative Contracts $200,000 State/Federal

Surplus $100,000 Rate Changes Retained Earnings Risk Management Finance $$(100,000) $(200,000) $(300,000) 12 0 2 FY 13 0 2 FY 14 0 2 FY 15 0 2 FY 16 0 2 FY 17 0 2 FY Net Income Retained Earnings pr d te c e oj

60 Days Operating Capital 18 0 2 FY pr d te c e oj Federal Surplus Retained Earnings Overview $60,000 Facilities Fleet Operations $40,000 Purchasing $20,000 Cooperative Contracts State/Federal Surplus Rate Changes Retained Earnings Risk Management Finance $$(20,000) $(40,000) $(60,000) 12 0 2 FY 13 0 2 FY 14

0 2 FY 15 0 2 FY 16 0 2 FY 17 0 2 FY Net Income Retained Earnings o pr je ed t c 60 Days Operating Capital 18 0 2 FY o pr je ed t c Print Services State Copy Center Overview Facilities Fleet Operations Purchasing Cooperative

Contracts State/Federal Surplus Print Services Risk Management 1,369 print jobs for the year 4,110,745 impression s 99.9% accuracy Digital Print Services Finance 1,051 walk-up copiers 55.656,482 impressions 99.9% ontime delivery Print Services Overview Facilities Fleet Operations Purchasing Cooperative Contracts State/Federal Surplus Print Services Risk Management Finance To support Governor Herberts goal of reducing recidivism in our prisons, all print jobs not containing personal or sensitive data are being sent to the Utah Correctional Industries (UCI) for printing. Copy Center Impressions 12,000,000 10,000,000

8,000,000 1,596,659 2,686,863 6,000,000 4,000,000 7,647,505 7,527,069 2,000,000 - FY13 FY14 BW Color 1,174,938 663,036 3,425,388 3,447,513 FY15 FY16 Print Services Rates Overview Rate Recommendation Facilities No change to current rate structure Fleet Operations Purchasing Cooperative Contracts State/Federal Surplus Print Services Rate Changes Risk Management

Finance Program & Service FY2017 FY2018 Increase (Decrease) Cost plus 25% Cost plus 25% 00.00% $0.004 $0.004 00.00% $0.005 $0.005 00.00% Copier Service Paper Administrative Fee (per impression) State Copy Center Contract Management Fee (per impression) Print Services Retained Earnings Overview Facilities $600,000 Fleet Operations $400,000 Purchasing $200,000 Cooperative Contracts

State/Federal Surplus Print Services $$(200,000) Rate Changes Retained Earnings Risk Management Finance $(400,000) $(600,000) 12 0 2 FY 13 0 2 FY Net Income 14 0 2 FY 15 0 2 FY Retained Earnings 16 0 2 FY o pr je ed t c 17 18

0 0 2 2 FY FY 60 Days Operating Capital o pr je ed t c State Mail and Distribution Services 12,000,000 10,000,000 FY12 FY13 SORTING Linear (SORTING) FY14 FY15 METERING FY16 INSERTING 18,063,577 17,890,711 18,727,930 17,139,156 22,606,166 14,000,000 17,254,375 Finance

16,000,000 18,328,795 Risk Management 18,000,000 21,820,452 State Mail 20,000,000 22,340,594 Print Services 22,000,000 20,732,077 State/Federal Surplus 24,000,000 21,202,319 Cooperative Contracts 24,117,313 Purchasing 19,973,503 Fleet Operations 20,430,024 Facilities Mail volumes have been declining. The three services which contribute the most income have seen a decline in volumes from 2% to 10%. 26,000,000 23,262,304 Overview State Mail Retained Earnings Overview

FY2016 had a net income loss of ($734,378) Facilities Fleet Operations $2,500,000 Purchasing $2,000,000 Cooperative Contracts $1,500,000 State/Federal Surplus $1,000,000 Print Services State Mail Rate Changes Retained Earnings Risk Management Finance $500,000 $$(500,000) $(1,000,000) $(1,500,000) 12 0 2 FY 13 0 2 FY Net Income 14 0 2 FY 15

0 2 FY Retained Earnings 16 0 2 FY o pr je ed t c 17 18 0 0 2 2 FY FY 60 Days Operating Capital o pr je ed t c How Were Solving the Problem Overview Facilities Fleet Operations Purchasing Cooperative Contracts State/Federal Surplus Print Services State Mail Rate Changes Retained Earnings Independen

t Auditor The current rate system does not reflect the true costs of the services being provided. Changes Risk Management Finance State Mail is working to adjust its current work model, cost structure, rate fees and Costs and Rates will be separated into two structures Overview Facilities Fleet Operations Purchasing Cooperative Contracts State/Federal Surplus Print Services State Mail Rate Changes Retained Earnings Changes Risk Management Finance Courier Productio Courier Routes Overview Facilities Fleet Operations Purchasing Cooperative Contracts State/Federal Surplus Print Services State Mail

Rate Changes Retained Earnings Changes Courier Rates Risk Management Finance 1 70 Routes Unprofitable The current rate structure doesnt contain a courier rate. Costs are covered by attaching fees to production rates. The new system has a separate courier rate. Customer Survey Results Overview Facilities Fleet Operations ;; 12.79% Purchasing More than 1 time per day is essential; 5.23% ;; 2.33% Cooperative Contracts State/Federal Surplus Print Services State Mail Rate Changes Retained Earnings Changes Courier Rates Risk Management Finance 20.35% Combine current ; 59.30% Route Reduction Savings Overview Facilities

Fleet Operations Purchasing Cooperative Contracts State/Federal Surplus Print Services State Mail Rate Changes Retained Earnings Current Routes Future Routes 1 1 Changes Courier Rates Risk Management Finance Reducing stops will allow us to reduce our routes and the number of vans used to deliver the mail $302,40 New Courier Rate Structure Overview 12 Facilities Fleet Operations Zones Purchasing Cooperative Contracts State/Federal Surplus Print Services Mileage Rate

State Mail Rate Changes Retained Earnings Changes Courier Rates Risk Management Finance Leasing Costs Fuel, Maintenance and Insurance Average distance between State Mail and a stop within a zone. Minute Rate Mileage Rate + Minute Rate = Zone Rate per Stop Courier Wage and Benefits Admin & Overhead Costs Average time it takes to go from State Mail to a stop within a zone. New Courier Rate Structure Overview ZONE RANGE Facilities # IN MILES Fleet Operations 1

0.0 - 2.9 $ 0.60 $ 1.66 $ 2.26 2 3.0 - 5.9 $ 1.60 $ 3.88 $ 5.48 Purchasing 3 6.0 - 10.9 $ 3.20 $ 4.84 $ 8.04 Cooperative Contracts 4 11.0 - 15.9 $ 5.20 $ 4.50

$ 9.70 State/Federal Surplus 5 16.0 - 20.9 $ 7.20 $ 7.15 $ 14.35 6 21.0 - 25.9 $ 9.20 $ 8.59 $ 17.79 7 26.0 - 30.9 $ 11.20 $ 10.53 $ 21.73 Rate Changes 8 31.0 - 35.9 $ 13.20 $ 13.22

$ 26.42 Retained Earnings 9 36.0 - 40.9 $ 15.20 $ 13.29 $ 28.49 10 41.0 - 45.9 $ 17.20 $ 16.02 $ 33.22 11 46.0 - 50.9 $ 19.20 $ 16.82 $ 36.02 12 51.0 - 55.9 $ 21.20 $ 18.67 $ 39.87

Print Services State Mail Changes Courier Rates Risk Management Finance COST MILES Cost Per Mile: $ 0.40 Cost Per Minute: $ 0.35 PER STOP MINUTES RATE New Courier Rate Structure Overview Need to recapture $630,000 annually Facilities Fleet Operations Purchasing Cooperative Contracts State/Federal Surplus Print Services State Mail Rate Changes Retained Earnings Changes Courier Rates Risk Management Finance ZONE 3 DEPT ADDRESS PER STOP

5272 College $ A.G. Office Dr 8.04 5272 College $ A.G. Office Dr 8.04 5272 College $ A.G. Office Dr 8.04 5272 College $ A.G. Office Dr 8.04 5272 College $ A.G. Office Dr 8.04 5272 College $ A.G. Office Dr 8.04 $ 48.24 SHARED 2ND STOP $ $ 1.34 $ $ 1.34 $ $ 1.34 2.68 $ $ 1.34 $ $ 1.34 2.68 $ $ 1.34 2.68 $ $ 8.04 8.04 Updated 9/1/2016 New Production Rate Structure

Overview Facilities Fleet Operations Purchasing Cooperative Contracts State/Federal Surplus Print Services State Mail Rate Changes Retained Earnings Changes We propose that we eliminate the two courier-associated fees that are tacked on to production Mail Distribution $0.065 Task Distribution Rate $0.012 Courier Rates Production Rates Risk Management Finance These rates generated $1,689,343 in FY2016 New Production Rate Structure Overview TASK ID DESCRIPTION 11 Business Reply 21 Special Handling 31

Auto Fold Cooperative Contracts 39 Label Generate State/Federal Surplus 40 Label Apply 45 Auto Tab 100 Meter/Seal 17,890,711 $ 0.017 $ 304,142 102 OCR 18,422,217 $ 0.017 $ 313,178 Courier Rates 104 Accountable Mail 263,284 $ 0.180 $

47,391 Production Rates 107 Additional Inserts 4,753,549 $ 0.004 $ 19,014 108 Inserting 13,310,028 $ 0.025 $ 332,751 110 Incoming OCR Sort Facilities Fleet Operations Purchasing Print Services State Mail Rate Changes Retained Earnings FY16 VOLUME CURRENT REVENUE 305,713 $ 0.090 $

27,514 2,538 $ 50.000 $ 126,888 13,926,128 $ 0.010 $ 139,261 1,260,807 $ 0.022 $ 27,738 292,667 $ 0.019 $ 5,561 $ 15,404 962,722 $ 0.016 Changes Risk Management Finance 1,064,993 $ 0.017 $ 18,105 $ 1,376,946 PROPOSE D

$ 0.540 $ 85.000 $ 0.021 $ 0.155 $ 0.150 $ 0.350 $ 0.024 $ 0.024 $ 1.450 $ 0.010 $ 0.030 $ 0.103 DIFFEREN % CE $ $ 500% 165,085 137,571 $ $ 215,709 70% 88,821 $ $ 292,449 110% 153,187 $ $ 195,425 605% 167,687 $ $ 43,900 689% 38,339 $ $ 2,088% 336,953 321,549 $

$ 429,377 41% 125,235 $ $ 442,133 41% 128,956 $ $ 381,762 706% 334,371 $ $ 47,535 150% 28,521 $ $ 399,301 20% 66,550 $ $ 506% 109,694 91,589 $ $ Updated 8/31/2016 3,059,323 1,682,377 REVENUE New Production Rate Structure Overview DISCONTINUED RATES Facilities Fleet Operations Purchasing Cooperative Contracts State/Federal Surplus Print Services State Mail Rate Changes 103 Mail Distribution 13,0328,627 $0.065

$ 866,361 105 Task Distribution 70,506,842 $0.012 $ 846,082 Revenue Needed to Make-Up for Discontinued Rates $ 1,712,443 Anticipated Annual Net Loss $ New Courier Rate Schedule Revenue 500,000 $ (630,000) Revenue Needed to Breakeven for Production Services $ 1,582,443 Revenue Needed to Breakeven for Production Services $ 1,582,443 New Rate Structure Revenue $ 1,682,377 Retained Earnings Changes Courier Rates Production Rates Risk Management Finance Net Income: $ 99,935

Updated 8/31/2016 New Production Rate Structure Overview Facilities Fleet Operations Purchasing Cooperative Contracts State/Federal Surplus Print Services State Mail Rate Changes Retained Earnings Changes Courier Rates Production Rates Risk Management Finance Agency Mail Processing State Mail Processing 1 oz. or 2 oz. - #10 Envelope Task Description Fold Insert Meter/Seal OCR/Sort Mail Distribution Task Distribution Task Distribution Task Distribution Task Distribution Additional Postage USPS Postage TOTAL COST Current Proposed $ $ $

$ $ $ $ $ $ 0.010 0.025 0.017 0.017 0.065 0.012 0.012 0.012 0.012 $ $ $ $ $ $ $ $ $ 0.021 0.030 0.024 0.024 - $ $ $ 0.015 0.376 0.573 $ $ $ 0.376 0.475 Savings over current fees $0.098 1 oz. - #10 Envelope 2 oz. - #10 Envelope

Full-price Mail Full-price Mail Does not include costs agency would still need to pay their employees to fold, insert, and apply postage. $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 0.470 0.680 $ $ Updated 8/31/2016 0.470 0.680 Purchasing and General Services Rate Committee Action Overview Facilities Fleet Operations Purchasing Cooperative Contracts State/Federal Surplus Print Services State Mail Rate Committee Action Risk Management Finance Requsted Actions Action Restructure State Mail rates Approve all other existing rates Slide Number

55 & 59 Risk Management Risk Management Coverages Overview Facilities Fleet Operations Purchasing Liability Property Risk Managemen t Finance Auto Workers Compensati on Insurance Overview Facilities Fleet Operations Purchasing Traditional insurance providers and Risk Management are similar in some ways Risk Managemen t Overview Finance Charge premiums for property, auto and liability Ask questions about whats being insured General liability exclusions

from coverage Actuary determines how much youll pay Insurance Overview Facilities Fleet Operations Purchasing Risk Management has some advantages over traditional insurance providers Risk Managemen t Overview Finance Broader coverage for less money Pool members share the impact of rate increases Rates Can Change Overview Facilities Fleet Operations Purchasing Risk Managemen t Overview Finance Increased claims costs from the past year Taking on losses of other members When claims roll off an agencys 5year history

Insurance market changes Excess Insurance Overview 1 Billion Facilities Fleet Operations Purchasing Risk Managemen t Overview Finance 10,000,000 9,000,000 10 Million 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 - 1 Million Property Risk Management 2 Million Liability Excess Insurance Provider Liability Premiums Overview Facilities Fleet Operations Purchasing Risk Managemen t Overview Liability Finance

Liability premiums will increase by $75,000 in total in FY2018 Individual entities will have increases or decreases based on loss history and risk exposure Charter school rate will be increased from $8.00 to $9.00 per student Liability Premiums Overview Facilities Fleet Operations Purchasing Risk Managemen t Overview Liability Finance FY2018 Request Charter school fee increase Fee 2017 2018 Charter School Fee $8.00 $9.00 Increase (Decrease) 12.50% Liability Retained Earnings Overview Facilities $4,000,000 Fleet Operations

$3,000,000 Purchasing $2,000,000 Risk Managemen t Overview $1,000,000 $- Liability Retained Earnings Finance $(1,000,000) $(2,000,000) $(3,000,000) 12 0 2 FY 13 0 2 FY Net Income 14 0 2 FY 15 0 2 FY Retained Earnings 16 0 2 FY o pr ed

t c je 17 18 0 0 2 2 FY FY 60 Days Operating Capital o pr ed t c je Property Insurance Overview Facilities Fleet Operations Purchasing Risk Managemen t Overview Liability Property Finance The fund insures over $34 Billion of State assets FLATIRON Risk Advisors Review Overview Facilities Asset Name Value Fleet Operations Fund Premiu m

Market Premiu m Variance % to Market Purchasing Wasatch HS $29,952 $65,792 -55% Risk Managemen t $82,240,0 00 Union Middle School $31,760,2 32 $19,729 $31,760 -38% Davis Campus Bld. $23,965,5 91 $8,139 $23,966 -64% Univ. Guest House $18,800,2 36

$1,831 $18,800 -90% Armory W. Jordan $17,900,0 00 $4,803 $17,900 -73% Whittier Elementary $17,000,0 00 $2,421 $17,000 -85% $461,999 $153 $924 -83% Overview Liability Property Finance Bear Lake Rest Property Rate Changes Overview Facilities Fleet Operations Purchasing Rate Recommendation No rate increase, but overall premiums will go up by $123,000

Risk Managemen t Overview Liability Property Rate Changes Finance Valuation, square footage, and CPI changes will affect the amount of premium collected for all agencies with property Increase in total valuation is due to attribute reporting from insured entities and new construction Property Retained Earnings Overview Facilities Fleet Operations Purchasing Risk Managemen t Overview $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- Liability Property Rate Changes Retained Earnings Finance $(1,000,000) $(2,000,000) $(3,000,000) 12 0 2 FY

13 0 2 FY Net Income 14 0 2 FY 15 0 2 FY Retained Earnings 16 0 2 FY d te c e oj pr pr 7 8 01 01 2 2 FY FY 60 Days Operating Capital d te c e oj FLATIRON Review of Auto Rates Overview Facilities Fleet Operations Purchasing Risk Managemen

t Overview Liability Property Auto Finance Vehicle Current Rate Public Safety Vehicle (less than $35,000) $175 per vehicle per year Higher Education (less than $35,000) $125 per vehicle per year Other State Agency (less than $35,000) $150 per vehicle per year School Bus $200 per vehicle per year School District (less than $35,000) Vehicle Valued Above $35,000 Other Vehicles: State and Higher $50 per vehicle per year .80 per $100/value per year $75 per vehicle per Auto Accidents Overview 1,200 Facilities Fleet Operations 999

1,000 909 Purchasing Overview Liability Property Auto 835 825 Number of Claims Risk Managemen t 970 800 717 639 600 400 Finance 200 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Vehicle Premiums Overview Facilities Fleet Operations Purchasing Rate Recommendation No rate changes

Risk Managemen t Overview Liability Property Auto Rate Changes Finance $1,50 0 $750 Authorized rate Risk charges Auto Retained Earnings Overview $600,000 Facilities Fleet Operations $400,000 Purchasing $200,000 Risk Managemen t Overview Liability $- $(200,000) Property Auto $(400,000) Rate Changes Retained Earnings Finance

$(600,000) 2 01 2 FY 3 01 2 FY Net Income 4 01 2 FY 5 01 2 FY Retained Earnings 6 01 2 FY d te c e oj pr pr 7 8 01 01 2 2 FY FY 60 Days Operating Capital d te c e oj Workers Compensation Overview

Rate Recommendation Facilities Fleet Operations No rate changes Purchasing Risk Managemen t Workers compensation rates Rate 2017 2018 UDOT worker $1.25 per $100 $1.25 per $100 00.00% Other State agencies $0.70 per $100 $0.70 per $100 00.00% Aviation pilot $2,200 per pilot 00.00% Overview Liability Property Auto Workers Compensation Rate Changes Finance $2,200 per pilot

Increase (Decrease) Workers Compensation Retained Earnings Overview $5,000,000 Facilities $4,000,000 Fleet Operations $3,000,000 Purchasing $2,000,000 Risk Managemen t Overview Liability $1,000,000 $$(1,000,000) Property Auto $(2,000,000) Workers Compensation $(3,000,000) Rate Changes Retained Earnings Finance 12 0 2 FY 13 0 2 FY

Net Income 14 0 2 FY 15 0 2 FY Retained Earnings 16 0 2 FY d te c e oj pr pr 7 8 01 01 2 2 FY FY 60 Days Operating Capital d te c e oj Risk Management Rate Committee Action Overview Facilities Fleet Operations Requested Actions Purchasing Action

Risk Managemen t Liability premium changes 69 Charter school rate increase 70 Overview Liability Property Auto Workers Compensation Risk Committee Action Finance Approve all other existing rates Slide Number Finance Finance Overview Facilities Fleet Operations Purchasing Risk Management Finance Consolidat ed Budget and Accounting Purchasing Card Consolidated Budget and Accounting (CBA) Overview Facilities Fleet Operations Purchasing Risk Management Finance

CBA ISF since 2013 Operated as an internal service fund since FY2013 Personnel services represent 95% of the total CBA budget CBA Rates Overview Rate Recommendation Facilities No change to current rate structure Fleet Operations Purchasing Risk Management Service 2017 2018 Finance Basic accounting and transactions $36 per hour $36 per hour 00.00% Financial management $65 per hour $65 per hour 00.00% CBA

Rate Changes Increase (Decrease) CBA Retained Earnings Overview Facilities $300,000 Fleet Operations $250,000 Purchasing $200,000 Risk Management $150,000 Finance $100,000 CBA Rate Changes Retained Earnings $50,000 $FY FY FY $(50,000) FY ... 7 01 2 FY $(100,000) Net Income Retained Earnings

60 Days Operating Capital ... 8 01 2 FY Purchasing Card Overview Facilities Fleet Operations Purchasing Risk Management Finance CBA Purchasing Card The purchasing card provides an efficient, cost-effective method of purchasing and payment Total purchasing card usage was $26.8 million in FY2016 (0.75% increase) The net rebate to State agencies and local governments was $373,159 in FY2016 (20.4% increase) Rebates to State Agencies (Net of Program Costs) Overview Facilities 600,000 Fleet Operations 500,000 Purchasing 400,000 Risk Management

300,000 Finance CBA 200,000 Purchasing Card 100,000 0 FY2012 FY2013 Fed Govt FY2014 Local Govts FY2015 FY2016 State Agencies Note: The FY2013 federal government share is higher because the FY2012 amount was not paid until FY2013. Purchasing Card Retained Earnings Overview $150,000 Facilities Fleet Operations $100,000 Purchasing $50,000 Risk Management Finance CBA $- $(50,000) Purchasing Card Retained Earnings

$(100,000) 12 0 2 FY 13 0 2 FY Net Income 14 0 2 FY 15 0 2 FY Retained Earnings 16 0 2 FY pr d te c e oj 17 18 0 0 2 2 FY FY 60 Days Operating Capital pr d te c e oj

Note: FY2012 net income was very low because the FY2011 rebate was not paid until FY2012. FY2015 net income was low because we paid more out in rebate in order to bring down our retained earnings. Finance Rate Committee Actions Overview Facilities Fleet Operations Requested Actions Purchasing Action Risk Management Approve all existing rates Finance CBA Purchasing Card Rate Committee Actions Slide Number 86 Administrative Services Proposed Rate Changes Fiscal Year 2018

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