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THE COUNCIL OF THE CITY OF NEW YORKHon. Corey JohnsonSpeaker of the CouncilHon. Daniel DrommChair, Finance CommitteeHon. Fernando CabreraChair, Governmental Operations CommitteeReport to the Committee on Finance and the Committee on Governmental Operationson the Fiscal 2021 Executive Budget for theDepartment of Citywide Administrative ServicesMay 20, 2020Finance DivisionSebastian Palacio Bacchi, Senior Financial AnalystJohn Russell, Unit HeadLatonia McKinney, DirectorPaul Scimone, Deputy DirectorRegina Poreda Ryan, Deputy DirectorNathan Toth, Deputy Director
Finance Division Briefing PaperDepartment of Citywide Administrative ServicesDepartment of Citywide Administrative Services OverviewThis report presents a review of the Department of Citywide Administrative Services’ (DCAS)Fiscal 2021 Executive Budget. The section below presents an overview of the Department’sbudget and how it has changed during the course of Fiscal 2020, followed by a review of thesignificant budget actions introduced in the Fiscal 2021 Executive Budget. Major issues relatedto the Department’s budget are then discussed. Analysis and highlights of DCAS’ Capital Strategyand Fiscal 2020 - 2024 Plan follows the discussion of the expense budget. Appendix 1 reports thechanges made to the Fiscal 2020 and Fiscal 2021 Budgets since Adoption of the Fiscal 2020Budget. For additional information on the Department’s budget and its various programs, /uploads/sites/54/2020/04/856-DCAS.pdfBelow is a summary of key funding changes by program area and source when comparing DCAS’Fiscal 2021 Executive Budget to its Fiscal 2020 Adopted Budget.Department of Citywide Administrative Services Financial SummaryFY18FY19FY20Executive PlanDollars in ThousandsActualActualAdopted20202021Personal Services 195,636 207,367 211,139 218,030 225,089Other Than Personal 441TOTAL 1,245,107 1,280,022 1,281,936 2,742,802 1,279,451Budget by Program AreaAdministration and Security 38,062 43,493 54,006 50,336 30,892Asset Management-Public rd of Standards and Appeals2,5262,7883,1872,9833,055Citywide Fleet Services58,14457,47326,52347,54931,353Energy cutive and Operations Support31,97736,30237,97337,77033,884External Publications and RetailOperations2,7333,2183,3733,3973,435Human Capital36,82733,38535,10936,67136,142Office of Citywide Purchasing41,06441,75638,04144,91539,666Real Estate Services03,40114,29215,09911,456TOTAL 1,245,107 1,280,0221,281,936 2,742,802 1,279,451FundingCity Funds 363,699 374,288 366,775Other Categorical86,16185,54682,108Capital- IFA1,3581,3581,373State59,69063,45861,880Federal - Community Development2261,3420Federal - Other2,1471,448,1472,147Intra City768,656768,663765,168TOTAL 1,245,107 1,280,022 1,281,936 2,742,802 1,279,451HeadcountFull-Time ,5722,5732,554*The difference of Fiscal 2020 Adopted Budget compared to Fiscal 2021 Executive Budget.**Difference2020-2021 13,950(16,355)( 2,485)( 6)( 2,485) 3,076(4,053)152,190(226)0(3,489)( 2,485)(18)(18)The Department of Citywide Administrative Services’ Fiscal 2021 Executive Budget totals 1.27billion, including 225.1 million in Personal Services (PS) funding to support 2,554 full-timepositions. Of DCAS’ total 1.3 billion Fiscal 2021 budget, 713.5 million is allocated to CitywideHeat, Light and Power expenditures. DCAS pays these expenses for other City agencies and is1
Finance Division Briefing PaperDepartment of Citywide Administrative Servicesdiscussed in more detail in the “Citywide Heat, Light and Power” section of this report. DCAS’Fiscal 2021 Executive Budget is 2.5 million less than its Fiscal 2020 Adopted Budget of 1.28billion. This decrease is primarily associated with the Department’s savings plan, discussed in the“Citywide Savings Program” section of this report. Approximately 59.8 percent ( 765.2 million)of DCAS’ Fiscal 2021 budget is funded through intra-city transfers for goods and services thatagencies purchase from DCAS. Approximately 28.6 percent of DCAS’ Fiscal 2021 budget is Citytax-levy funding, with the majority of the remaining funding coming from State and OtherCategorical sources. DCAS’ budget is subdivided into 20 Units of Appropriation (U/As), whichinclude Personal Services (PS) and Other than Personal Services (OTPS) U/As for each of theDepartment’s 10 program areas. 1DCAS’ current year budget totals 2.7 billion, which is 1.4 billion more than the Department’sFiscal 2021 Executive Budget. This increase is almost entirely due to an increase in federalfunding, as the Federal Emergency Management Agency (FEMA) and the Center for DiseaseControl (CDC) have allocated funding to the City to Purchase Personal Protective equipment(PPE), such as surgical masks, surgical gowns, among other essential items to combat thecoronavirus (COVID-19) pandemic in the City. The Department also had numerous budgetaryactions during Fiscal 2020 and Fiscal 2021, which are discussed in the “Other Adjustments”section of this report. For additional information regarding financial plan actions, please refer toAppendix A.Below is a summary of key funding sources by program area and source, comparing DCAS’Executive Budget to its Fiscal 2020 Adopted Budget.Changes by Funding Source City Tax-Levy Funding. The Fiscal 2021 Executive Budget increases DCAS’ City funding by 3.1 million when compared to its Fiscal 2020 Adopted Budget, primarily due tonumerous collective bargaining adjustments across the agency, which will be discussed inthe “other adjustments” section of this report. Federal Funding. The Fiscal 2020 Executive Budget increases DCAS’ federal funding by 1.4 billion, as FEMA and the CDC have allocated funding to the City to purchase PPE suchas surgical masks, surgical gowns, among other essential items to combat the COVID-19pandemic in the City.New in the Executive BudgetNew NeedsThe Department of Citywide Administrative Services’ Fiscal 2021 Executive Budget introducesnew needs of 834,000 in Fiscal 2021.1 WEX Gas. An additional 35,000 was added to DCAS’ Fiscal 2021 budget for the WEX Gascard program, which City agencies use to fill up City vehicles with gasoline. Campaign Finance Board Intra-City. 796,000 was added to DCAS’ intra-city budget inFiscal 2021 for intra-city expenses associated with the Campaign Finance Board.Units of Appropriation are subdivisions of the City Expense Budget that the City Council votes upon.2
Finance Division Briefing PaperDepartment of Citywide Administrative ServicesOther AdjustmentsThe Fiscal 2021 Executive Budget includes other adjustments of 1.4 billion in Fiscal 2020 and adecrease of 14.2 million in Fiscal 2021, which include the following. Federal Funding. The Fiscal 2021 Executive Budget increases DCAS’ federal funding by 1.4 billion, of which 1.3 billion comes from the Federal Emergency Management Agency(FEMA), and 30 million comes from the Center for Disease Control (CDC), which arefunds that are being used to combat the COVID-19 pandemic. As of April 27, 2020, DCAShas committed to spend approximately 799.1 million in COVID-19 related expenses. Thethree largest categories include 788.2 million for the purchase of ventilators, surgicalequipment, such as face masks, face shields, gowns, and other forms of PPE, 8.9 millionfor cleaning services and cleaning supplies, and 1.8 million for the procurement of othergeneral supplies and materials needed to combat COVID-19. DCAS also provides supportservices to City agencies during the COVID-19 pandemic since DCAS manages 55 of theCity’s public buildings. According to DCAS, when an agency informs the DCAS FacilitiesManagement Team of an employee testing positive for COVID-19, custodians areimmediately mobilized to address these high-risk areas through enhanced cleaningprotocols. Following all Department of Health and Mental Hygiene (DOHMH) guidelines,custodians thoroughly clean and sanitize all surfaces and floors in the vicinity of theworksite, including common areas. Collective Bargaining. The Fiscal 2021 Executive Budget includes 2.8 million in Fiscal2020, 3.4 million in Fiscal 2021, and baselined 3.6 million beginning in Fiscal 2022 forcollective bargaining purposes at DCAS. This funding has been allocated to settlecollective bargaining issues with bricklayers, electricians, maintenance workers, amongothers at Communications-Workers America (CWA) 1180, the International Union ofOperating Engineers (Local 15 and Local 30). Silver Stars. The Fiscal 2021 Executive Budget includes a baselined decrease of 199,000beginning in Fiscal 2021 through the Silver Stars program. The program, formerly knownas Redeploy, will allow employees eligible for retirement to shift from full-time to parttime status at the discretion of their agency, while officially filing for retirement. Thisinitiative follows Section 212 of the New York State Retirement and Social Security Law(RSSL), which caps earnings at 35,000 for individuals under 65 who return to publicemployment. While the employee benefits by earning their pension while collectingpartial wages, the agency benefits by addressing inefficiencies in having full-timeemployees used for work that is either seasonal or does not span a full work week becausepart-time positions for the same work are too difficult to fill. According to the Office ofManagement and Budget (OMB), this program will be managed by the Department forthe Aging (DFTA). Lease Adjustment. The Fiscal 2021 Executive Budget includes a decrease of 20,000 inFiscal 2020, an increase of 12.8 million in Fiscal 2021, 12.1 million in Fiscal 2022, and abaselined increase of 10.3 million beginning in Fiscal 2023 for increased leaseexpenditures across the City. These include increased lease expenses for a BOE facility onMetropolitan Avenue, increased lease expenditures for Community Boards, and leaseexpenses related to a new location at 59 Maiden Lane for the Department of Finance(DOF).3
Finance Division Briefing PaperDepartment of Citywide Administrative Services Lease Auditing. The Fiscal 2021 Executive Budget includes an increase of 1.5 million inFiscal 2020 and a decrease of 1.5 million in Fiscal 2021. This is part of a citywide savingsinitiative, in which DCAS’ Real Estate Services (RES) would conduct lease audits whichwould determine whether agencies were paying a higher amount for their leases, uponwhich action is taken that will result in recoupments. According to OMB, this adjustmentreflects that the City will realize these savings in Fiscal 2021, rather than in Fiscal 2020. Enhanced Space Management. The Fiscal 2021 Executive Budget includes a decrease of 1.5 million in Fiscal 2021 for enhanced space management. This is part of the SpaceManagement Program citywide savings initiative, in which DCAS’ Division of AssetManagement would establish a more thorough review process of all City agencies’present and future space requests, with the aim of using the spaces the City owns andrents in a more efficient and less costly manner. According to OMB, this initiative willgenerate citywide budgetary savings of 1.5 million in Fiscal 2021. Enhanced Bidding. The Fiscal 2021 Executive Budget includes projected savings of 2.5million in Fiscal 2021 for enhanced bidding. According to OMB, the City is attempting toconduct a real-time bidding module, in which companies that bid for a contract will beable to see their individual rankings. However, this initiative is being reviewed by the LawDepartment, and has yet to be fully approved. Energy Load Management. The Fiscal 2021 Executive Budget includes a decrease of 1million in Fiscal 2020, a decrease of 3.2 million in Fiscal 2021, and a baselined decreaseof 1.9 million beginning in Fiscal 2022 for the energy load management citywide savingsinitiative. This initiative is managed by DCAS’ Energy Load Management Division, in whichthey are working with 24 City buildings to review energy signatures, and working withbuilding managers to conserve energy. Although these savings have been identified, theyare offset by a baselined increase of 2.3 million beginning in Fiscal 2020 for costsassociated with managing the citywide savings initiative.Citywide SavingsIn the Fiscal 2021 Executive Budget, DCAS will generate Citywide Savings of 16.2 million in Fiscal2020 and 6.6 million in Fiscal 2021, which include the following. Vacancy Reductions. DCAS will generate budgetary savings of 55,000 in Fiscal 2020 andbaselined savings of 73,000 beginning in Fiscal 2021 through the permanent reductionof five vacant positions at the Board of Standards and Appeals (BSA). Auto Auction Proceeds. DCAS will generate one-time revenue of 515,000 in Fiscal 2020through additional revenue from the auctioning of City-owned vehicles. Civil Service Exam Revenue. DCAS will generate one-time revenue of 2.5 million in Fiscal2021 through additional revenue from filings for the Sanitation Worker Exam. Accordingto DCAS, the Department of Sanitation (DSNY) open competitive examination was lastadministered in Fiscal 2015. As such, the exam is expected to generate 3.1 million infees, which is offset by 600,000 in overtime expenditures that are projected to beincurred during the administration of the exam.4
Finance Division Briefing PaperDepartment of Citywide Administrative Services Contract Re-Estimate. DCAS will generate savings of 1.1 million in Fiscal 2020 and 469,000 in Fiscal 2021, primarily due to delays in an energy storage contract in whichDCAS is still working on an agreement with the vendor. Expense to Capital Swap. DCAS will generate one-time budgetary savings of 3.5 million inFiscal 2021 through projects to increase efficiency in existing building equipment andsystems that will now be covered by capital funds. Information Technology (IT) Re-Estimate. DCAS will generate savings of 350,000 inFiscal 2020 and 30,000 in Fiscal 2021 as the agency has moved over to use more opensource software, resulting in a decreased need to use paid software licenses. Operations and Maintenance. DCAS will generate one-time budgetary savings of 676,000 in Fiscal 2020 through lower than estimated costs with operations andmaintenance projects. OTPS Re-Estimate. DCAS will generate one-time budgetary savings of 4.9 million in Fiscal2020 through delays in implementing energy efficiency projects, which include delays insolar feasibility studies, pre-scoping projects, among others. Personnel and Training. DCAS will generate budgetary savings of 334,000 in Fiscal 2020and 75,000 in Fiscal 2021 through savings achieved through delays in filling vacantpositions and training cost re-estimates. Security Re-Estimate. DCAS will generate one-time budgetary savings of 5.8 million inFiscal 2020 due to lower than estimated security guard service costs for the Non-PublicSchool Security Reimbursement Program due to the closure of schools in the City duringthe COVID-19 pandemic. Space Measurement Re-Estimate. DCAS will generate one-time budgetary savings of 400,000 in Fiscal 2020 as the State’s Stay at Home order has prevented vendors fromcontinuing to survey buildings. Please refer to the description regarding Enhanced SpaceManagement, in the “Other Adjustments” section of this report for additionalinformation. UDC Excess Revenue. DCAS will generate one-time budgetary savings of 1.9 million inFiscal 2020 through additional revenue from a rental agreement with the UrbanDevelopment Corporation (UDC).In addition to the agency’s savings program, the Citywide Savings Program includes “CitywideSavings Initiatives”, which are managed by DCAS. Although the savings do not directly impactDCAS’ budget, DCAS coordinates savings in these areas across multiple agencies. Below is the listof these savings initiatives. Fleet Approval Process. The City will generate one-time budgetary savings of 2.8 millionin Fiscal 2020 as DCAS and the Office of Management and Budget (OMB) will review allon-road vehicle purchase requests to ensure optimal usage of agency fleets. Heat, Light and Power. The City will generate savings of 58.9 million in Fiscal 2020, 51.1million in Fiscal 2021, 16.9 million in Fiscal 2022, 2.6 million in Fiscal 2023 and 5.2million in Fiscal 2024 through energy savings from milder temperatures, favorable oil5
Finance Division Briefing PaperDepartment of Citywide Administrative Servicesprices, and reduced energy usage due to the closure of numerous City offices because ofthe COVID-19 pandemic.Not Included in the Executive PlanThe Fiscal 2021 Executive Plan does not include certain budgetary items that pertains to DCAS,that the Council will address in this section. Non-Public School Security Guard Reimbursement Program. Local Law 2 of 2016stipulates that up to 19.8 million be allocated annually to finance the Non-Public SchoolSecurity Guard Reimbursement Program. The Fiscal 2020 budget includes 19.8 millionfor private school security reimbursements, which is the maximum amount that can belegally spent on this program. As of the release of the Fiscal 2021 Executive Budget, theAdministration has not yet allocated any funding for the program for Fiscal 2021. TheCouncil understands that schools have closed due to the COVID-19 pandemic, andaccording to New York State Governor Andrew Cuomo, schools will remain closed until atleast May 15, 2020. However, funding must be included in Fiscal 2021 to ensure that nonpublic schools are able to take full advantage of the program, assuming that schools willlikely open in the Fall of 2020.Citywide Heat, Light and PowerBudgeted at 713.5 million for Fiscal 2021, the Citywide Heat, Light and Power (HLP) Budgetmakes up approximately 55.7 percent of DCAS’ Fiscal 2021 Executive Budget. HLP expendituresrepresent all City agencies (and some non-City agencies) spending on electricity, natural gasheating, and steam heating. DCAS pays the collective City HLP bill, and is compensated primarilythrough intra-city transfers from those agencies. DCAS also pays for the Health and Hospitals(H H) Corporation’s HLP expenses, although these transfers from H H are considered othercategorical funds, as H H is technically not a City agency. City funding of the HLP bill primarilyrepresents DCAS’ paying of its own HLP expenses. Since the Fiscal 2021 Preliminary Plan, theCitywide Heat, Light and Power budget has decreased by 38.7 million in Fiscal 2020 and 23.6million in Fiscal 2021. The decrease is primarily associated with lower energy usage due to theclosure of numerous City offices because of the COVID-19 pandemic, milder temperatures andfavorable commodity prices in the current year, as well as savings measures to be implementedby DCAS in Fiscal 2021 and in the outyears.6
Finance Division Briefing PaperDepartment of Citywide Administrative ServicesCitywide Heat, Light and Power 745,368 730,154 734,459 713,540 715,042 715,042 698,436 682,961 9ActualFY20 Exec FY21 Exec FY22 Exec FY23 ExecMiscellaneous RevenueDCAS’ projected miscellaneous revenue streams for Fiscal 2020 total 73.1 million and 62.1million for Fiscal 2021. When compared to the projected miscellaneous revenue streams set forthin DCAS’ Fiscal 2020 Adopted Budget totaling 65.4 million, projected commercial rent revenuefor Fiscal 2020 increased by 5.5 million as DCAS will generate additional revenue in variouscommercial rent agreements. Additionally, projected revenue for civil service exam feesincreased by 3 million in Fiscal 2021 as DCAS will generate additional revenue from theSanitation Worker civil service exam. Lastly, projected revenue for Board of Standards andAppeals (BSA) filing fees decreased by 796,000 in Fi
others at Communications-Workers America (CWA) 1180, the International Union of Operating Engineers (Local 15 and Local 30). Silver Stars. The Fiscal 2021 Executive Budget includes a baselined decrease of 199,000 beginning in Fiscal 2021 thro
