RARY OPENING STATEMENT Mr. HANTMAN. Thank you, Mr. Chairman. Of course I a pleased to appear here. This is the third time I have appeared b fore this committee and I certainly look forward to continuing work with you and with Senator Feinstein. I think the links b tween the Rules Committee and this committee are very importan and I look forward to working with you in making sure that have that tie-in. As you mentioned, Mr. Chairman, the body of our written stat ment pretty well focuses on the fiscal year 2000 appropriation quest and we certainly intend to talk about that today. But the are also several appendices to the statement that really deal wi issues that are fundamental to how we are restructuring this age cy. A lot of changes have occurred. I have been here 2 years now as of last month and a lot of ne criteria, Congressional responsibilities, have been placed upon th agency that did not exist before the Congressional Accountabili Act, the AOC Human Resources Act. All of these things-the a vent of unionization on the Hill, the issues of life safety, of securit are things that really have come to the fore much more so tha they had in the past. All of these things are touched upon in sp cific appendices related to the financial analysis. But what I would like to do is give you kind of an overview o some of these issues, talk about them, and then come back to som of the clear, fundamental building blocks we need to address-obv ously, Y2K, the FMS system, and several of the other issues. BOTANIC GARDEN RECONSTRUCTION First, on the Capitol side, you joined us, Mr. Chairman, to cele brate the groundbreaking for the Botanic Garden Conservator some months ago. I would like to report that that project wa awarded under budget. At this point in time we have Clark Con struction out there, as you know. We met some of their officers a the groundbreaking. They are proceeding very well. Our goal is to have the construction completed by September o the year 2000. Concurrently with that, the National Fund for the U.S. Botanic Garden, which is a $10 million privately raised com ponent of funding, to complete that block area, to have outdoor fa cilities such as interpretive learning centers and a first ladies gar den and butterfly gardens, and things that work contiguously with the Botanic Garden. That is scheduled to be constructed and com pleted concurrently with the Botanic Garden. In fact, the new chairman, Theresa Heinz, we just met earlier this week on that and she is very excited about this and hopefully raising some addi tional private funding, which we would have to change the legisla tion to be able to accept more funding from the private sector for educational programs and things of this nature. PREPARED STATEMENT So we are excited about that. We think that project is moving forward well. [The statement follows:] 23 PREPARED STATEMENT OF ALAN M. HANTMAN GENERAL INTRODUCTION AND EXECUTIVE SUMMARY Mr. Chairman, I am pleased to appear before this Subcommittee to present the budget for the Architect of the Capitol. I look forward to continuing to work closely with this Subcommittee under your leadership in an open, professional and constructive manner. The body of this written statement focuses, of course, on this Agency's fiscal year 2000 appropriation request. Some things, however, are not quantifiable even at a budget hearing, but they are important to know. This is so because the framework of our request, the foundation it is built upon, is fundamentally influenced by the new direction this Agency is taking in response to Congress' mandate to provide cost effective quality service in support of its day to day activities. We have, therefore, provided appendices to this statement that address issues that are basic to how we are now doing business, and form part of the rationale for various aspects of our operating costs and the capital budget. These appendices also report on how the Agency is working to accomplish the legislative imperatives that the Congress has directed us to conform to, including: The AOC Human Resources Act, approved in 1994 which directs the Agency to establish and maintain a personnel management system incorporating fundamental principles found in modern personnel systems. The Congressional Accountability Act which created the Office of Compliance and the Compliance Board. The Accountability Act, among other initiatives, permitted Capitol Hill employees to unionize for the first time and placed the AOC under obligations to meet occupational safety and health standards. (a) Labor Management Relations (b) Occupational Safety and Health (Life Safety) (c) Civil Rights Laws Security issues have continued to be a high priority. Funding has been provided to this agency and the Capitol Police Board for a wide range of security initiatives. These appendices therefore discuss these issues as well as providing overviews of the issues of life safety, security, Agency re-engineering efforts, etc. as follows: Appendix A-Life Safety Appendix B-Security Appendix C-AOC Human Resources Act Appendix D-Congressional Accountability Act Appendix E-Labor Relations Appendix F-Re-engineering.-The first year of a three year buy out program approved in the Fiscal Year 1999 Legislative Branch Appropriations Act to facilitate our re-engineering efforts has been defined in detail. Approval to proceed has been received from the Senate and we are withholding implementation pending Committee on House Administration action, in accordance with the legislation. Appendix G-Capital Projects Appendix H-Year 2000 System Status Appendix I-Financial Management System All of the initiatives above are supported by our Vision Statement and Core Values developed through our strategic planning process: 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. Core Values.-Service Excellence; Stewardship; Integrity; Professionalism; Creativity; Loyalty; Respect and Diversity; and Teamwork. The detailed actions described in the appendices are focused on rebuilding this Agency into a unified, yet flexible, responsive and quality oriented instrument of the Congress. A brief summary of actions to date includes: Capital Projects.-Initiating the planning, drawings, contracts and construction for work on the $148.8 million of capital projects funded in fiscal year 1999 such as: -Renovation of Dirksen Senate Office Building. -Replacement of East Plant Chillers. -Rayburn Building Telecommunications and Fire Sprinklers. -Replacement of Roof, Longworth House Office Building 6th and 7th Floors. -Capitol Visitors Center-Note: We are defining the scope for the first increment of planning and validation work, as required by legislation, so that the authorization of funds can be sought from the committees having overview authority. Also, a contract for renovation of the U.S. Botanic Garden Conservatory has b awarded within budget and is now under construction. The contiguous privat funded National Garden will follow shortly. Another significant project is the re bilitation of the U.S. Capitol Dome. Initial portions of the study for necessary r ovations of the Dome have been completed and a contract has been awarded with the emergency appropriations budget allocation to perform the complex task of moving lead-based paint in the interstitial space between the inner and ou domes, and, after study, repainting the metal. This will permit the necessary tailed inspection of all cast iron elements to clearly define the scope of work for su sequent phases. Actual work on the site is anticipated to commence in March, up approval to close the Rotunda for two to three weeks to erect the protective netti Operations, Personnel Policies and Procedures.-On the operations side we ha initiated programs to: -Install the computer aided facility management system (CAFM) selected track, coordinate, record and evaluate work management cost and staffing da throughout the campus, as well as to provide enhanced space management pabilities. -Improve communications between the agency and our oversight entities, our c ents, and other instrumentalities of Congress. -Upgrade internal administrative systems to achieve a Year 2000 fix for our pr curement, financial and inventory operations while working with the GAO ar other Legislative branch agencies to procure and implement a modern financi management system. -Continue to evaluate and make recommendations on necessary steps to provi business continuity for Congressional operations in regards to internal and e ternal items possibly affected by the year 2000 problem. -Initiate an agency wide strategic planning process and implement the first se -Reorganize Central Staff to better support the work of all of our jurisdiction -Develop standardized policies and procedures for use by all AOC jurisdiction -Provide management training programs for managers at all levels, as well a developing training opportunities to further enhance skills of our employees. Vision and Goals I believe, Mr. Chairman, that it is important for the Congress to know the philo sophical underpinnings of these efforts, the foundation we are building upon, be cause there is no "quick fix" solution to what is required to rebuild and re-enginee business practices in this agency. Through our strategic planning process, we are building an organization that will be able not only to support the day to day work ings of both houses of the Congress in an equitable and professional manner, bu one that will be fully capable of performing its duties long after all of us have left Capitol Hill. It is important for us to build not only for today but also for the fu ture not only in our capital and maintenance projects, but also to build the proper team to perform the necessary day to day functions and services of this agency. This effort requires flexibility, including developing the proper mix of in-house staff, contractors, (both private and public sector), and temporary employees to be called upon as work load necessitates. Congressionally Mandated Changes Change is necessary to assure that this agency makes its values and its vision part of our "corporate culture" so that all staff members truly make them the foundation of our work, the basis for how we do business. Many issues were identified and mandated for change in the Architect of the Capitol Human Resources Act, and in the Congressional Accountability Act. These include the requirement to develop human resources management programs consistent with the practices common among other federal and private sector organizations. In response, this agency has begun initiatives to: more clearly define job descriptions and job expectations so that everyone will know the requirements to successfully perform their jobs; create a viable job performance and evaluation system so that constructive feedback can be given to improve performance where necessary, and to recognize and acknowledge those who provide quality service and work towards the achievement of our vision and goals; assure that uniform and fair standards are developed, implemented and used throughout the Agency to the greatest extent possible with respect to working 25 conditions, job postings, upward mobility, etc.; create a viable equal employment and conciliatory programs function that can fairly and efficiently address employee concerns in line with the Congressional Accountability Act; provide training opportunities to further enhance the trade and professional skills of our employees, including helping supervisors better communicate with, and monitor the work of, those who report to them. These initiatives are all in process and are part of the foundation upon which this Agency is being rebuilt. The Congressional Accountability Act created the Office of Compliance with the powers to monitor compliance with the Act, and granted the employees of this agency, among others on Capitol Hill, the right to form unions. As you are aware, AFSCME Local 26 has been designated to represent over 600 of our custodial and labor employees, and we are in the process of working with the union on a range of issues. Also, at this time, our Botanic Garden employees and a group of our temporary plumbers have formed collective bargaining units and are now represented by unions. Review and Evaluation Methodology In order to address these realities and comply with these laws, this Agency has been undergoing an intensive review of all of its operations with the goal of continuously refining and improving the quality of our services to Congress and our visitors to Capitol Hill, while at the same time responding to the requirements of the laws addressed to our employees. As part of this review we are investigating how to minimize costs and maximize the efficient delivery of our services in fulfillment of our fiduciary responsibilities to the American Taxpayer. This is in line with recommendations regarding future restructuring of the Office of the Architect of the Capitol, which included investigating sensible ways to streamline the Architect's operation and logical areas in which to involve the private sector. Specifically, consideration of the private sector was suggested for routine maintenance and remedial work, in addition to the major AOC projects which are generally competitively awarded to private sector firms. Our on-going investigation therefore includes in-depth evaluations of: Logical areas in which to involve the private sector; Internal opportunities to re-engineer and consolidate existing staff and Opportunities to eliminate duplication of services with other instrumentalities of the House and Senate. To carry out this re-engineering process, this Agency has been authorized, subject to approval by our oversight committees, to implement early out and buy out pro grams. Fiscal Year 2000 Budget Overview I would like to briefly address our fiscal year 2000 budget request. The Operating Budget requested for fiscal year 2000, $168,366,000, represents a 10.7 percent increase in operating costs. Thirty eight percent is due to mandated pay and benefits costs, thirty three percent is related to utility increases (mainly related to a 40 percent water and sewer increase), and 17 percent is related to information resources management. It is hoped that future operating budget cost savings will be achieved through a three (3) year re-engineering effort starting in fiscal year 1999 and continuing in fiscal years 2000 and 2001. Savings will be reflected in subsequent budgets. As stated earlier, House approval to implement the first year of the program is currently pending. The request in the Capital Projects portion of the budget is significant, $118,907,000. The magnitude of the fiscal year 2000 total for cyclical maintenance projects is very much in line with what we had projected in the benchmark analysis discussed in my last year's budget presentations. That analysis indicated that a "campus-like" complex of this age, monumental quality and magnitude could expect to expend an annual average of approximately 1.7 percent of the replacement value of the buildings and infrastructure. Based upon an estimated replacement value of $3.6 billion, 1.7 percent would equate to an average target reinvestment level of $61.0 million. Because of under investments in past years, we are now faced with an _above__average balloon payment of $102.6 million for cyclical maintenance projects. Each project must of course stand on its own, and we stand ready to discuss the validity of each of the 139 fiscal year 2000 projects at your convenience. They have been categorized and prioritized into Life Safety, Security, etc., for the purpose of analysis and decision making. Significant project costs included in this request are the Renovation of the Dirksen Building, and on the House side, the Cannon Garage renovation and the House Chamber Sound System. As I stated at last year's hearing, the ongoing study of the necessary repairs and repainting of the Capitol Dome would most likely lead to identification of increased complexity, and scope of the project, and therefore, cost. This project accounts for $28 million of the fiscal year 2000 budget request. T overall budget request is discussed in detail below. Several graphs follow which pr vide summary information on the budget request. The "Fiscal Year 2000 Operati and Capital Budget by Categories" breaks out the operating and capital request significant categories. The "Fiscal Year 2000 Operating and Capital Budget" reflec the history of the Architect of the Capitol's budget since fiscal year 1993. The "Fisc Year 2000 Capital Requests by Category" reflects the capital project categories an number of projects and funding requested in each. ARCHITECT OF THE CAPITOL FY 2000 OPERATING & CAPITAL BUDGET BY CATEGORIES |