By Steve Stancil
The core mission of the Georgia Building Authority (GBA) is to provide a clean, comfortable and safe environment on Capitol Hill. Much like former Indianapolis Mayor Stephen Goldsmith suggests in his “Yellow Pages test,” the authority recognized several years ago that some services are not part of that core mission of essential services: The state and taxpayers would be better and more efficiently served by third-party private enterprise or specialty agencies.
Today, of 18 services under GBA auspices, only three are wholly implemented by the GBA. Six services are provided by a blend of GBA and contracted services and nine are entirely contracted out. Additionally, police protection, construction project management on bond-funded projects, van pool services and child-care services have been transferred to the Department of Public Safety, Georgia State Financing and Investment Commission, Georgia Regional Transit Authority and Georgia State University, respectively.
By eliminating non-essential services, transferring or outsourcing non-core services and streamlining operations (reduction in workforce through attrition), the GBA was able to reduce its budgeted staff by 66 percent, from 631 in Fiscal Year 1998 to 212 this year.
Initiatives the GBA has tackled include:
■ Food service operations. These were competitively bid out in 2007, and the contract went to Eurest Dining Services. Eurest improved food services and variety on Capitol Hill by offering Starbucks, Chick-fil-A, Quiznos, Willy’s Mexicana Grill and Sonny’s BBQ. The outsourcing did not provide a significant net savings to the agency, but enabled the GBA to reduce its operating budget by $4 million while customer service ratings have improved from a 58 percent favorable rating in FY 2007 to 81 percent in FY 2010.
■ Parking. Providing affordable and accessible parking to state employees is part of the GBA’s core mission; selling daily parking and special event parking is not. In the past two years, the authority has identified opportunities to outsource non-core parking operations and expects to increase revenue by nearly $650,000 annually.
The first parking lot to be privatized was the Department of Driver Services Lot near Turner Field. In the first year, revenue from this Braves Lot went from $55,000 to $120,000. And Polk Plaza, next to the Freight Depot, recently was converted to daily parking then privatized. Revenues are projected to increase by $90,000 annually. Additional benefits were a reduction in GBA administrative and personnel costs.
■ Utilities. Utilities are the second highest budgeted cost for the GBA. They were at $8.2 million for FY 2011, up from $7.8 million in FY 2010, primarily due to a 12.5 percent water rate increase by the city of Atlanta and an estimated 9.3 percent rate increase in electricity rates. Fortunately, utility conservation efforts that began more than five years ago have positioned the agency to manage the increased rates without significant increases to the bottom line.
Following a technical energy audit of 16 buildings in 2007, the authority launched two energy conservation measures focusing on lighting controls and water conservation. The GBA spent approximately $1.1 million of its capital reserves for the first phase of energy service company (ESCO) projects.
In FY 2009, the authority was allocated $5.4 million of General Obligation Bonds to complete further ESCO projects identified in the audit. They included replacement or modification of lighting fixtures, installation of occupancy sensors and upgrading heating and air conditioning equipment. The result is a decrease of more than 26 percent in electricity consumption since 2007. The GBA is one of just four state agencies that has achieved the Governor’s energy reduction goal of 15 percent by 2020.
With 2010 federal stimulus funds of $4.4 million allocated to the GBA via the Georgia Environmental Financing Authority, more conservation projects are under way.
Ongoing conservation efforts thus far have saved taxpayers nearly $5 million. Operating under today’s economic challenges, the agency continues to seek innovative ways to do more with less so that it is ready for tomorrow.
Steve Stancil, the State Property Officer for Georgia, wrote this commentary for the Georgia Public Policy Foundation. The Foundation is an independent think tank that proposes practical, market-oriented approaches to public policy to improve the lives of Georgians. Nothing written here is to be construed as necessarily reflecting the views of the Foundation or as an attempt to aid or hinder the passage of any bill before the U.S. Congress or the Georgia Legislature.
© Georgia Public Policy Foundation (April 1, 2011). Permission to reprint in whole or in part is hereby granted, provided the author and his affiliations are cited.
By Steve Stancil
The core mission of the Georgia Building Authority (GBA) is to provide a clean, comfortable and safe environment on Capitol Hill. Much like former Indianapolis Mayor Stephen Goldsmith suggests in his “Yellow Pages test,” the authority recognized several years ago that some services are not part of that core mission of essential services: The state and taxpayers would be better and more efficiently served by third-party private enterprise or specialty agencies.
Today, of 18 services under GBA auspices, only three are wholly implemented by the GBA. Six services are provided by a blend of GBA and contracted services and nine are entirely contracted out. Additionally, police protection, construction project management on bond-funded projects, van pool services and child-care services have been transferred to the Department of Public Safety, Georgia State Financing and Investment Commission, Georgia Regional Transit Authority and Georgia State University, respectively.
By eliminating non-essential services, transferring or outsourcing non-core services and streamlining operations (reduction in workforce through attrition), the GBA was able to reduce its budgeted staff by 66 percent, from 631 in Fiscal Year 1998 to 212 this year.
Initiatives the GBA has tackled include:
■ Food service operations. These were competitively bid out in 2007, and the contract went to Eurest Dining Services. Eurest improved food services and variety on Capitol Hill by offering Starbucks, Chick-fil-A, Quiznos, Willy’s Mexicana Grill and Sonny’s BBQ. The outsourcing did not provide a significant net savings to the agency, but enabled the GBA to reduce its operating budget by $4 million while customer service ratings have improved from a 58 percent favorable rating in FY 2007 to 81 percent in FY 2010.
■ Parking. Providing affordable and accessible parking to state employees is part of the GBA’s core mission; selling daily parking and special event parking is not. In the past two years, the authority has identified opportunities to outsource non-core parking operations and expects to increase revenue by nearly $650,000 annually.
The first parking lot to be privatized was the Department of Driver Services Lot near Turner Field. In the first year, revenue from this Braves Lot went from $55,000 to $120,000. And Polk Plaza, next to the Freight Depot, recently was converted to daily parking then privatized. Revenues are projected to increase by $90,000 annually. Additional benefits were a reduction in GBA administrative and personnel costs.
■ Utilities. Utilities are the second highest budgeted cost for the GBA. They were at $8.2 million for FY 2011, up from $7.8 million in FY 2010, primarily due to a 12.5 percent water rate increase by the city of Atlanta and an estimated 9.3 percent rate increase in electricity rates. Fortunately, utility conservation efforts that began more than five years ago have positioned the agency to manage the increased rates without significant increases to the bottom line.
Following a technical energy audit of 16 buildings in 2007, the authority launched two energy conservation measures focusing on lighting controls and water conservation. The GBA spent approximately $1.1 million of its capital reserves for the first phase of energy service company (ESCO) projects.
In FY 2009, the authority was allocated $5.4 million of General Obligation Bonds to complete further ESCO projects identified in the audit. They included replacement or modification of lighting fixtures, installation of occupancy sensors and upgrading heating and air conditioning equipment. The result is a decrease of more than 26 percent in electricity consumption since 2007. The GBA is one of just four state agencies that has achieved the Governor’s energy reduction goal of 15 percent by 2020.
With 2010 federal stimulus funds of $4.4 million allocated to the GBA via the Georgia Environmental Financing Authority, more conservation projects are under way.
Ongoing conservation efforts thus far have saved taxpayers nearly $5 million. Operating under today’s economic challenges, the agency continues to seek innovative ways to do more with less so that it is ready for tomorrow.
Steve Stancil, the State Property Officer for Georgia, wrote this commentary for the Georgia Public Policy Foundation. The Foundation is an independent think tank that proposes practical, market-oriented approaches to public policy to improve the lives of Georgians. Nothing written here is to be construed as necessarily reflecting the views of the Foundation or as an attempt to aid or hinder the passage of any bill before the U.S. Congress or the Georgia Legislature.
© Georgia Public Policy Foundation (April 1, 2011). Permission to reprint in whole or in part is hereby granted, provided the author and his affiliations are cited.
