2006 Session

Budget Amendments - SB30 (Committee Approved)

Deferred Maintenance Pilot Program

Item C-325.10 #1s

Item C-325.10 #1s

First Year - FY2007 Second Year - FY2008
Central Appropriations
Central Capital Outlay FY2007 $10,105,960 FY2008 $24,630,000 GF

Page 472, following line 34, insert:
A.1. There is hereby created upon the books of the Comptroller a special non-reverting, trust fund to be known as the Deferred Maintenance Pilot Trust Fund for each of the agencies listed in this item.  No portion of the Trust Fund shall be used for a purpose other than as provided herein.  Funds remaining in the Deferred Maintenance Pilot Trust Fund at the end of each fiscal year shall not revert to the general fund but shall remain in the Trust Fund, to be used for the purposes provided herein.  Deposits shall consist of:
1. General funds as appropriated in this Item,  
2. All interest, dividends and appreciation that may accrue to the Deferred Maintenance Trust Fund, and
3. Any other such funds as may be transferred, allocated, or appropriated for this purpose.
4. Participating agencies may transfer any portion or all of their maintenance reserve funding from Item C-325 to this Trust Fund to supplement any qualifying project, however, such transfers shall not effect their allocations of funding within the Trust Fund.
Agency Name Project Code FY 2007 FY 2008
Department for the Blind and Vision Impaired $390,000 $160,022
Department of Corrections $12,600,000 $5,169,919
Department of General Services $3,960,000 $1,624,832
George Mason University $900,000 $369,279
Old Dominion University $5,280,000 $2,166,442
University of Mary Washington $1,500,000 $615,466

$24,630,000 $10,105,960
Participating agencies may use the Trust Fund on general fund deferred maintenance projects.  General fund deferred maintenance projects include requirements for general fund supported buildings set out in the Commonwealth’s Facility Inventory and Condition Assessment System (FICAS).  Funding may only be used on buildings with a Requirements Index (RI) less than 0.60.
Participating agencies and institutions may transfer their maintenance reserve appropriation in Part 2 of this act to the Deferred Maintenance Pilot Trust Fund to supplement the deferred maintenance funding provided above subject to the approval of the Director, Department of Planning and Budget, in consultation with the Director, Department of General Services.  Once transferred, these funds will not be subject to the guidelines surrounding the maintenance reserve program and may be used to carry out requirements for general fund supported buildings set out in the Commonwealth’s FICAS.
2. The Deferred Maintenance Pilot Trust Fund shall be the responsibility of each agency or institution and shall be maintained and administered separately from any other program or fund of the agency or institution.
3. On or before July 1, 2006, the agency heads of participating agencies shall prepare a written strategic plan for execution of the deferred maintenance funding over the biennium.  The strategic plan shall include a narrative that addresses the general condition of its facilities, how the agency will use the deferred maintenance funding, and what impact the agency expects for the planned strategy to have on overall agency facility conditions.  The strategic plan should identify measurable results such as addressing facility condition index (FCI) metrics to show the condition of facilities before and after implementation of deferred maintenance funding.  The metrics could be at the building, location, or agency level.  Projects should include requirements in FICAS for general fund supported facilities with an emphasis on priority one and two requirements. However, agencies are not restricted to priority one and two requirements to enable each agency to have latitude to make decisions that will result in identifiable work accomplishments.  The six pilot agencies shall submit all projects proposed for use under the deferred maintenance program to the Department of Planning and Budget for approval.
4. Participating agencies shall complete detailed facility condition assessments on all of their facilities and enter accurate requirements data into FICAS by October 15, 2006.  These agencies may each use a maximum of $100,000 of their allocation of the deferred maintenance funding to perform the assessments.  A detailed facility condition assessment must be performed within the past 24 months on all facilities that receive deferred maintenance funding.
5. On or before September 1, 2007, each pilot agency head shall prepare a written report that addresses actual progress on projects and facility condition improvements against the expectations set out in the initial strategic plan.  The report should justify any deviations from the original strategic plan, and if the agency did not achieve the expected outcome, the report must explain why this occurred.  No later than October 1, 2007, the six pilot agencies shall report to the Governor and the Chairmen of the House Appropriations and Senate Finance Committees on the results of the pilot project.
6. Participating agencies must perform a complete life cycle study of any building with an RI equal to or greater than 0.60 to determine whether it is more cost effective to repair and renovate the current building or to demolish and construct a new building.  Consideration should be given to the building’s use, whether the building can meet the current programmatic needs, the future maintenance costs, and any historical significance of the building.  Only if it is determined that repair and renovation are the cost effective solution, the pilot agencies and institutions may use deferred maintenance funding on the building subject to approval by the Director, Department of Planning and Budget, in consultation with the Director, Department of General Services.
B. A Pilot Working Group consisting of representatives from the Department for the Blind and Vision Impaired, Department of Corrections, Department of General Services, George Mason University, Old Dominion University, University of Mary Washington, Department of Planning and Budget, and the Auditor of Public Accounts shall work together during implementation of the pilot deferred maintenance program to develop recommendations on how to implement the deferred maintenance program statewide.  These recommendations shall address funding options, funding allocation methods, and policies surrounding a statewide program to reduce deferred maintenance and improve the condition of Commonwealth-owned facilities.  The Pilot Working Group shall report these recommendations to the Governor and the Chairmen of the House Appropriations and Senate Finance Committees no later than October 1, 2007."

"C-325.10 Deferred Maintenance Trust Fund
Fund Sources: General

(This amendment provides $24.6 million GF the first year and $10.1 million GF the second year for a deferred maintenance pilot program.)