Program Budget Request – Activity A: Required Questions Form

Agency: Department of Transportation (DOT01)

This form should be completed online at the Budget Portal.

https://obm.sp.ohio.gov/sites/budget_center/

Please refer to Page 17 of the Operating

Budget Guidance for instructions on completing this form.

Program Number (ex. 1234A)
& Program Name: / 4991B / Land and Buildings
FY2010
Actual / FY2011
Estimate / FY2012
Request / FY2013
Request
Total Program
Expenditures / $21,200,878 / $24,048,293 / $17,449,618 / $22,000,000
FTE
Expenditures / $0 / $0 / $0 / $0
Funded FTEs / 0 / 0 / 0 / 0

1.  What is the purpose of the program? What existing problem, interest, or need does this program address?

Facilities
The purpose of the building capital improvements program is to produce a revolving systematic and predictable replacement process for ODOT’s operational facilities to keep all buildings operating within their anticipated life expectancy.
ODOT currently operates 1 Central Office headquarters complex, 12 District headquarters complexes, 88 County Garages and 122 Outposts. The funding provided typically is only enough to replace one or two county garages per year. Funding for headquarters, outposts and other capital assets are nonexistent. The problem is this, at this rate of replacement ODOT cannot sufficiently reach the goal of systematic building replacement within the anticipated life expectancy of its physical building assets.
Environmental
The purpose of the Environmental Waste Management and Tank Program is to reach and maintain regulatory compliance for several regulatory programs. These programs include BUSTR’s underground storage tank program, U.S.EPA’s above ground tank storage program, spill prevent control and counter measures program (SPCC), and the Ohio EPA’s Hazardous Waste, Solid Waste and Air programs. The program ensures ODOT regulatory compliance and reduces or prevents the need to conduct site remediation.

a.  Who are the beneficiaries of this program?

The beneficiaries of the program are the employees operating out of these facilities, employees maintaining these facilities, and the traveling public. Currently, for environmental lands and buildings there are 10 ODOT facilities that the Office of Environmental Services actively works on BUSTR and/or OEPA related investigations and/or remediation.

b.  Are expenditures of this program limited to specific geographic areas and/or population groups? If so, please discuss the specific areas and/or population groups served.

The expenditures of this program are not limited to specific geographic areas and/or population groups; but instead, include the entire state of Ohio, covering ODOT’s 12 District Offices and multiple facilities in all 88 counties.

c.  If this is a regulatory program, describe the regulated community and how this program impacts the community.

Facilities
This is currently not a regulatory program.
Environmental
This applies more to OEPA, BUSTR or Dept of Health regulatory programs. However, ODOT is part of the regulated community.

2.  Describe the services or activities provided.

a.  Briefly describe the nature of the services provided.

Facilities
Capital funds are used to build new facilities in hopes of eliminating excessive maintenance repair costs and provide physically adequate structures for equipment storage maintenance and repair. Additionally, it provides modern office space for better and more efficient business operations.
Facilities are maintained so that deterioration is minimized and the department can manage their facilities in an efficient and cost effective manner.
Environmental compliance is provided for facilities owned and operated by the Department.
Environmental
The Services or activities provided include the Office of Environmental Services’ technical support, environmental investigation, regulatory interpretation and remedial activities to ODOT facilities in all 88 counties. OES also actively works on BUSTR and OEPA related investigations and/or remediation and assists in the inspection and repair of fuel tanks located at any other ODOT facility that may need technical support. The above services are provided with the assistance of Consultant Task Order Contracts.

b.  Provide estimates of the volume of services that will be provided at this funding level: number of people served, amount of assistance provided, number of awards that will be made, dollar amount of awards, etc.

Facilities
ODOT County Garages: For Fiscal Years 2012 & 2013 ODOT will receive $8M each year to construct two county garage facilities each year. Each garage typically houses 30-40 people. Each garage construction project provides work for designers, schedulers, contractors (general, mechanical, electrical, plumbing, fire protection, etc.), material suppliers, and more.
Additional ODOT Physical Assets: These consist of headquarters, outposts, salt storage buildings, equipment storage buildings, radio towers, and water quality systems (water wells and on site sanitary).
Environmental
There are currently 8 sites undergoing BUSTR directed investigations or remediation and 2 sites that are undergoing RCRA investigations or remediation. Of these 10 sites, 3 have investigations to determine the extent of the release. The other 6 have remediation planned and are either currently in contractor or is being prepared for bid.

c.  Are there any service benchmarks established by the state, federal government or private industry?

Facilities
The building construction industry has a variety of organizations that benchmark buildings and building costs; for example: Means, Whitehouse, and others. For our pre-engineered metal sided county garage buildings they estimate a lifespan of 30-40 years. At which time the building skin will need replaced and other repairs may be required. What we have seen with our masonry buildings over the years are structural problems due to block bearing walls cracking, foundations sinking, lintels sagging, etc. this is either due to poor soils conditions, improperly constructed foundations or structural inadequacies in the building design/construction.
Environmental
Each site that requires investigation and/or remediation will be given either a “No Further Action” letter from BUSTR, or a Covenant Not to Sue or Closure Plan Certification from OEPA.

3. If applicable, describe activities or services that cannot be maintained or will be eliminated at this funding level. Please address service volume impacts, potential waiting lists, etc, as compared to FY2011.

Facilities
Highway operations, including snow and ice operations, road repair, guard rail repair, etc. may all begin to suffer due to inadequate facilities to operate out of. This is related to the insufficient capacities to store salt, repair and maintain equipment at proper operating levels.
Environmental
The funding sought is for sites with known issues that require investigation and/or remediation under BUSTR or OEPA regulations. In the event there are additional ODOT sites requiring investigation and/or remediation work, ODOT will need to find additional funding to finance the activities or we will not be in compliance with regulatory agencies.

4. Discuss any variances in funded FTEs from FY 2011 through FY 2013 and what has necessitated these changes.

a.  Describe how variances affect currently provided services and activities.

Not applicable.

b.  Describe how variances affect planned services and activities.

Not applicable.

5. Are there any other state programs or projects that duplicate or overlap with the work of this program? Identify them and describe how efficiencies and service delivery could be improved by the creation of multiagency service agreements, insourcing, back office sharing, or consolidation of the activity into a single agency.

ODOT believes this is asking for any program overlap on the part of OEPA, BUSTR and/or the Dept of Health. However, ODOT is part of the regulated community.

6. In the last several years, what internal or external factors have contributed to the cost of this program? Describe any demographic trends, caseload trends, technology trends, changes in federal funding or regulations, customer requirements that are impacting the cost of this program.

Facilities
Fuel costs and construction inflation in excess of 40% have diminished the purchasing power of the dollar for building replacements under this program. Security issues and higher utility costs are also higher.
Environmental
The Office of Environmental Services has placed a greater emphasis to ensure environmental compliance from the OEPA and BUSTR, all resulting in increased facility inspections. In addition, past management and disposal practices have contaminated ODOT properties which later result in the site’s remediation under BUSTR and OEPA’s Resource Conservation and Recovery Act (RCRA) and Voluntary Action Program (VAP). Currently there are 7 District Headquarters which require investigation and/or remediation under these programs. In addition, there are a number of current and former county garages and outposts which may require investigation and/or remediation.

7. Please identify ORC, temp law, OBM policies, logistical or operational challenges that have limited or challenged this program’s effectiveness and/or efficiency. Indicate whether any budget language is necessary to help implement this program.

Facilities
DAS is currently attempting some construction reform with the ORC. The main issue is the inefficiency in using multiple prime contractors for building construction projects that are managed by the state, typically the State Architects Office and Universities. Additional support for the elimination of the use of Multiple Prime Contractors would be helpful.

8. Please describe how the effectiveness and efficiency of this program is gauged? In your response, please include how often evaluations take place, if and how data are published, and if this budget request reflects the outcome of those evaluations.

Facilities
Building assessments were conducted a number of years ago to establish the baseline from which to gauge our buildings. Facilities Maintenance Managers are required to develop annual work plans for building improvements within their districts. Periodically buildings are reassessed to determine their level of quality within the overall system of buildings. Over the past 20 years ODOT has replaced approximately half of their county garage buildings. However, with still half of the inventory of buildings to be rehabbed and/or replaced, not including the other physical assets ODOT owns, the program needs to continue; and may always have to continue due to the estimated life span of buildings.
Environmental
The Office of Environmental Services conducts QARs on all of ODOT’s Districts over a 2 year period. As part of the QAR, ODOT’s District Headquarters, garages and outposts are inspected for regulatory compliance and implementation of ODOT policies. This encourages a reduction in releases and quicker action if a release occurs. This is evident in the reduced number of sites where releases are being reported and in the reduced extent of releases in comparison to those that have occurred in the past. In addition, ODOT’s policies and procedures have been modified to promote the use of non-toxic green products and reduce or recycle other items to reduce the likelihood of a release at an ODOT facility.

9. Describe cost-saving measures and operational efficiencies that have been implemented to contain or reduce program costs in the current biennium and further measures that will be undertaken in the 2012-2013 biennium.

a.  Describe the savings that have been realized as a result of those changes.

Facilities
Facilities Management has developed the Annual Building Assessment Program to analyze, plan and program capital replacement and repair projects. Further measures include implementing a better routine and preventive maintenance program to ensure a higher quality of sustainability of facility conditions.
Environmental
The Office of Environmental Services conducts QARs at ODOT facilities, has developed and given various training classes, changed internal policies, and promoted pollution prevention practices to reduce hazardous waste. Encourage the recycling of materials rather than disposal and share the best management practices. Utilizing ODOT forces for simple BUSTR remediation projects in order to remediate a site more quickly and allow this money to be used at more complicated sites. This office will continue to work with all facilities to reduce waste disposal costs, promote best practices and proper management of materials.
ODOT’s budget submittal incorporates very nominal increases to its operating budget and continues to dedicate as much funding as possible to its capital programs. The payroll budgets submitted are in line with OBM budget submittal guidance, while there is a minimal 2% growth in non-payroll operating costs. ODOT had previously reduced its operating budget by 5% annually, or $40M, each year for fiscal years 2009 – 2011.

b.  Describe the cost-saving measures and operational efficiencies that will be undertaken in the 2012-2013 biennium to contain or reduce program costs and the savings that are expected as a result of those changes.

Facilities
We will begin looking at reducing construction costs. We are planning on studying the costs of an alternative method of improving our existing facilities. In lieu of simply replacing and tearing down the older facilities we will investigate the possibility of adaptive reuse of the existing buildings on site. This may eliminate the costs of purchasing new property, running utilities to sites where none exists, demolition costs of the existing building, and reducing some construction costs. The existing buildings, if not in poor physical condition are simply too small for the road maintenance equipment (i.e. dump trucks and snow plowing trucks) that is purchased today. If the building is in good physical condition it can be used for additional office space, small equipment storage, break rooms, etc. Other design issues are being thought of and developed as well.
Environmental
The Office of Environmental Services has implemented the following cost-savings measures and operational efficiencies and will continue with these efforts in the 2012-2013 biennium:
1)  Regular Quality Assurance Reviews (QARs)
2)  Developed and conducted training
3)  Reviewed and changed internal policies
4)  Promoted pollution prevention practices to reduce hazardous waste
5)  Promote recycling program
6)  Developed “Best Management Practices”
7)  Utilize ODOT forces as much as possible for simple BUSTR remediation projects
Cost savings expected are:
OES will continue to work with all facilities to reduce waste disposal costs, promote best practices and proper management of materials which reduces or eliminates the need for site remediation. These changes have already reduced our cost of doing business, the number of releases that are reported and the reduced size of the reported releases making them much easier to clean up and get the regulators sign off on them.

10. Fully describe the various sources of funds that will support this program and the method used for distribution.

This program is funded through the Ohio Motor Fuel Tax revenue and other Non-GRF state revenue (Fund 7002). The funding is covered in the ALI 779-491 (Administration).

Include the following as appropriate: