ARCHITECT OF THE CAPITOL VISION STATEMENT We will be an innovative and efficient team dedicated to service excellence and to preserving, maintaining, and enhancing the national treasures entrusted to our care. Service Excellence CORE VALUES Creativity Stewardship Professionalism Respect and Diversity It states that "We will be an innovative and efficient team, dedicated to service excellence, to preserving, maintaining, and enhancing the national treasures entrusted to our care." We also have a set of core values that go along with this, service excellence, stewardship, integrity, professionalism, creativity, loyalty, respect and diversity, and teamwork. Mr. Chairman, change is necessary to ensure that this agency makes these values and this vision part of our corporate culture, so that all staff members truly make them the foundation of how we work, the basis for how we do business. This agency is undergoing an intensive review of its operations, with the goal of continuously refining and improving the quality of our services to Congress and to our visitors. As part of this review we are investigating how to keep costs down, and most efficiently deliver our services in fulfillment of our fiduciary responsibilities to the American taxpayer. If any of these initiatives involve staffing reductions, it is our recommendation that this agency be authorized to implement early-out and buyout programs for affected employees. As you are aware, this was a successful program that we used with the Senate restaurants this year, and we should actually be in the black by $200,000 this year and $600,000 next year, instead of a consistent loss. FISCAL YEAR 1999 OPERATING AND CAPITAL BUDGET I would like to turn now, if I can, specifically to our budget for fiscal year 1999. Our first board shows the operating and capital budgets by categories, on the left side, the capital budget of $87.5 million, which we will talk about in a little while. I would like to start off with the operating budget of $153.8 million. This is basically a 5.8-percent increase over last year. It would basically be 5 percent, if we did not have an election move cycle included in the costs right now, and about two-thirds of the costs here, the increase, is due to COLA's, mandated pay, and benefits increases. We also have some 6 percent in there for an agencywide uniform program. I am not sure if we have any of our staff in here with our uniforms. It has been a very successful program, and we are hoping to extend that throughout the campus to instill a sense of pride, organization, and quality service from all of our people, and recognition of who is providing those services. On our next chart, let us talk a little bit about our FTE employee budget. Architect of the Capitol full-time equivalent employment budget This indicates that there has been a 16.4-percent reduction in FTE count from 1992, to date, a very significant decrease, and 46-108 99-8 many very positive reengineering efforts have been achieved to continue providing quality service to the House and the Senate in a responsible manner, shop consolidations to reduce supervisors, crosstraining, so that air-conditioning system people on the second and third shifts can also do electrical and plumbing work, and not have overtime for lots of other people as well. This chart represents a maximum number of FTE's for fiscal year 1999. If we can, let us go to our next chart. ARCHITECT OF THE CAPITOL FISCAL YEAR 1999 OPERATING AND CAPITAL BUDGET This chart basically deals with our operating and capital budget, and shows that operations costs have been relatively level over the past 6 years. Most of the inflationary costs, utility increases, COLA's, et cetera, have been absorbed through decrease in work level forces. The more significant changes have occurred in the capital side of the budget. In fiscal year 1999, a major component of the increase is shown for some $25 million in security-related projects. Let us take a look at the breakdown on the capital side requests. It is broken down into two basic areas. On the left side we see new facilities, some 18 projects, representing $26.9 million. A part of this, of course, is the proposed Capitol square perimeter security project, accounting for some $20 million of these costs. I, as a member of the Capitol Police Board, would like to thank you, Mr. Chairman and Senator Dorgan, for your support of this project in the supplemental bill. The larger portion of the pie chart represents some 142 reinvestment projects, worth some $60.4 million, from which also we can subtract the $7.5 million for the Capitol dome, which, again, is part of the supplemental now. All of these areas are broken down by ADA, life safety, capital projects, cyclical maintenance projects, technology and management, and we can review each one of them with you relative to its merits, and they have been structured this way so that we can take a look at priorities. The requested increase in the capital projects portion of the budget is very significant, but the magnitude of the total for reinvestment cyclical maintenance projects is very much in line, Mr. Chairman, with the benchmark analysis we discussed last year with you. That analysis indicated that a campus-like complex of this age, monumental quality and magnitude, could expect to conservatively expend approximately 1.7 percent of the replacement value of the buildings and infrastructure. This is the same chart we talked about last year, and at that time, Mr. Chairman, you asked us to verify that relative to other major Federal projects. Architect of the Capitol benchmark data [Fiscal year 1999 funding levels] Current Facility Replacement Value $3,600,000,000 AOC Benchmark (Based on Universities of Illinois, Michi- National Research Council of the Academy of Sciences: Low Range High Range Fiscal year 1999 Capital Request (Request $60,478,000 Less $27,000,000 Security and Additional Facilities) Annual renewal percentage 1.7 1.75 2.0 2.5 1.5 3.0 1.7 REINVESTMENT BENCHMARK We, in fact, checked out the Ronald Reagan International Trade Center, and if we would have used the type of benchmarks for cost of data approved for their project, this cost would be, rather than $3.6 billion for the appraised value, more like $4 billion. We also took a look at GSA standards and measured them relative to the different quality of spaces they use for their courthouses, et cetera, and that cost would be in the range of $3.1 billion. So we are very comfortable with the concept of $3.6 billion as a base number, and the 1.7 percent basically, as we discussed last year, we also feel very comfortable with that number. The next chart basically updates last year's presentation, and plots the 1.7 percent reinvestment benchmark against actual reinvestment, from 1993 to 1998, and it adds in the 1999 request for cyclical maintenance. |