The division of public works shall have the power and duty to allocate all space, owned or leased in the city of Boise in the name of the state, except as provided by section 67-5707, Idaho Code, for the occupancy of the various state departments, agencies and institutions. Allocations of space will be made on the basis of functional need and statutory requirements and in conformity with standards and criteria adopted by the permanent building fund advisory council. In approving the allocations of space, the division shall first consult with and consider the recommendations and advice of the directors or executive heads of the various departments, agencies or institutions.