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HomeMy WebLinkAboutMINUTES - 08122014 - D.10RECOMMENDATION(S): APPROVE response to Civil Grand Jury Report No. 1407, entitled "Deferred Maintenance" and DIRECT the Clerk of the Board to forward the response to the Superior Court no later than August 29, 2014. FISCAL IMPACT: There is no fiscal impact. This is an informational report. BACKGROUND: On May 30, 2014, the County received 2013-2014 Civil Grand Jury Report No. 1407 entitled, "Deferred Maintenance". The report was received by the Board of Supervisors and subsequently referred to the County Administrator on the June 24, 2014 Board of Supervisors agenda (Item No. C.109), who prepared the attached response that specifies: Whether the respondent agrees or disagrees wholly or partially with each finding; If the respondent disagrees with a finding, a statement explaining the portion of the finding that is disputed and the reasons for the disagreement; Whether each recommendation has been implemented, has not been implemented, or requires further analysis; and APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 08/12/2014 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Lisa Driscoll, County Finance Director (925) 335-1023 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: August 12, 2014 David Twa, County Administrator and Clerk of the Board of Supervisors By: Stephanie L. Mello, Deputy cc: Brian Balbas, Deputy Public Works Director D.10 To:Board of Supervisors From:David Twa, County Administrator Date:August 12, 2014 Contra Costa County Subject:RESPONSE TO CIVIL GRAND JURY REPORT NO. 1407, ENTITLED "DEFERRED MAINTENANCE" BACKGROUND: (CONT'D) If the recommendation requires further analysis, a statement explaining the scope and parameters of the analysis or study, and a time frame, not to exceed six months, for the matter to be prepared for discussion. CONSEQUENCE OF NEGATIVE ACTION: In order to comply with statutory requirements, the Board of Supervisors must provide a response to the Superior Court no later than August 29, 2014 (90 days after receipt). The Board must take action no later than the August 12, 2014 meeting in order to comply with the statutory deadline. ATTACHMENTS Grand Jury Report No. 1407, "Deferred Maintenance" Response to Grand Jury Report No. 1407 BOARD OF SUPERVISORS RESPONSE TO CONTRA COSTA COUNTY GRAND JURY REPORT 1407  Deferred Maintenance   Fix it Now or Pay More Later  Findings  1. The FLIP report has not been updated, and is not on schedule to be updated as originally planned.  Response:  The respondent partially disagrees with the finding.  The original FLIP report was completed in  2007.  The objective of the report was to deliver facilities condition assessment of county‐owned buildings to  provide a framework for developing a comprehensive deferred maintenance correction plan. Since that time:  • the Board of Supervisors reaffirmed the Board’s plan to fund facility maintenance to end the deferred  maintenance cycle and included a future maintenance objective.  The future objective was to evaluate the  feasibility of developing an Internal Services Fund for facilities maintenance to improve planning and  paying for deferred maintenance and capital renewal of buildings. The Board adopted the addition of a  factor to the occupancy costs paid by various departments to occupy County‐owned buildings. The  revenue raised from this occupancy cost factor will be used to fund future maintenance of real estate  assets.  The work done as part of the FLIP report will be used to refine the Internal Services Fund factor;  • the County Administer developed and implemented an Administrative Bulletin implementing Real Estate  Asset Management Plan (RAMP) principles for the use and management of County‐owned and leased  assets, and to establish a centralized program to manage the space needs of County departments  [Administrative Bulletin 526.0 (AB 526.0) became effective on April 9, 2013]; and  • the Board of Supervisors has engaged ISES to complete a new assessment of FLIP properties that is  anticipated to be completed in September 2014.  The FLIP report will be updated after the updated  assessment of properties has been concluded.    2. The FLIP report prioritizes deferred maintenance needs and costs, but includes less than half of the total  facilities owned and maintained by the County.    Response:  The respondent agrees with the finding.   Due to funding constraints and the need to address Finding  number 4 below we are unable to assess all County owned and operated facilities. However, as part of the 2014  assessments we are focusing on buildings that were not included in the original 2007 FLIP report. We are also  including the more critical buildings that were scored in the poorest conditions in the 2007 FLIP Report. This  approach will allow the County to get new data on some facilities not included in the original report also reaffirm  conditions of facilities that should be closely monitored because of their critical nature.    3. Funding allocations have not been adequate to meet the FLIP target goals that seek to tackle the backlog of  deferred maintenance on county‐owned facilities.  Response:  The respondent partially agrees with the finding.  As has been noted, an important aspect of deferred  maintenance is to determine the condition and use of various buildings to determine the need to maintain,  replace, or abandon (sell) the facility.  Even if it were economically feasible, it would be unwise to simply allocate  funds for all county‐owned facilities including those that are surplus.  A strategic, well thought out and vetted plan  for tackling deferred maintenance needs must be part of an overall master facilities plan.    4. The Public Works Department does not have a database that integrates all existing information about county‐ owned facilities, which would more efficiently track and manage maintenance efforts.  Response:  The respondent agrees with the finding.    Recommendations  1. The Board of Supervisors should annually update the FLIP report, starting with FY 2014‐2015, until the backlog  of deferred maintenance and repairs have been completed.  Response:  The recommendation will not be implemented because it is not reasonable.   Updating the report  every year would require more staff time and funding than is available.  The County intends to update the  Facilities Life‐cycle Investment Program (FLIP) report every 5 years. However, the County will continue to update  the FLIP database annually based on work that is done on County facilities and monitor facility conditions.  2. The Board of Supervisors should expand the FLIP report to include all county‐owned facilities.    Response:  The recommendation has not yet been implemented but will be implemented in the future.  The  County has contracted with a company called ISES to complete a new assessment of FLIP properties that is  anticipated to be completed by September 2014.  The list was revised to include buildings not assessed in 2007,  remove buildings no longer in the County inventory due to sale, and closely monitor those buildings most in need  of attention due to their condition or critical nature.    3. The Public Works Department should identify funds to expedite integrating all existing databases related to  county‐owned facilities for coordinated tracking and reporting of all deferred maintenance needs, priorities,  and completed tasks.  Response:  The recommendation has been implemented.  The County allocated $167,000 in Venture Capital  Funds to the Public Works Department in fiscal year 2013‐14 to purchase and implement a comprehensive Asset  Management software package.  While this endeavor has proven to be more complex and difficult than initially  thought the Public Works Department has engaged a consultant and identified an aggressive schedule to address  many of the database issues facing the County.  RECOMMENDATION(S): APPROVE response to Civil Grand Jury Report No. 1407, entitled "Deferred Maintenance" and DIRECT the Clerk of the Board to forward the response to the Superior Court no later than August 29, 2014. FISCAL IMPACT: There is no fiscal impact. This is an informational report. BACKGROUND: On May 30, 2014, the County received 2013-2014 Civil Grand Jury Report No. 1407 entitled, "Deferred Maintenance". The report was received by the Board of Supervisors and subsequently referred to the County Administrator on the June 24, 2014 Board of Supervisors agenda (Item No. C.109), who prepared the attached response that specifies: Whether the respondent agrees or disagrees wholly or partially with each finding; If the respondent disagrees with a finding, a statement explaining the portion of the finding that is disputed and the reasons for the disagreement; Whether each recommendation has been implemented, has not been implemented, or requires further analysis; and APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 08/12/2014 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYES 5 NOES ____ ABSENT ____ ABSTAIN ____ RECUSE ____ Contact: Lisa Driscoll, County Finance Director (925) 335-1023 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: August 12, 2014 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: Stephanie L. Mello, Deputy cc: Brian Balbas, Deputy Public Works Director D.10 To:Board of Supervisors From:David Twa, County Administrator Date:August 12, 2014 Contra Costa County Subject:RESPONSE TO CIVIL GRAND JURY REPORT NO. 1407, ENTITLED "DEFERRED MAINTENANCE" BACKGROUND: (CONT'D) If the recommendation requires further analysis, a statement explaining the scope and parameters of the analysis or study, and a time frame, not to exceed six months, for the matter to be prepared for discussion. CONSEQUENCE OF NEGATIVE ACTION: In order to comply with statutory requirements, the Board of Supervisors must provide a response to the Superior Court no later than August 29, 2014 (90 days after receipt). The Board must take action no later than the August 12, 2014 meeting in order to comply with the statutory deadline. ATTACHMENTS Grand Jury Report No. 1407, "Deferred Maintenance" Response to Grand Jury Report No. 1407 BOARD OF SUPERVISORS RESPONSE TO CONTRA COSTA COUNTY GRAND JURY REPORT 1407  Deferred Maintenance   Fix it Now or Pay More Later  Findings  1. The FLIP report has not been updated, and is not on schedule to be updated as originally planned.  Response:  The respondent partially disagrees with the finding.  The original FLIP report was completed in  2007.  The objective of the report was to deliver facilities condition assessment of county‐owned buildings to  provide a framework for developing a comprehensive deferred maintenance correction plan. Since that time:  • the Board of Supervisors reaffirmed the Board’s plan to fund facility maintenance to end the deferred  maintenance cycle and included a future maintenance objective.  The future objective was to evaluate the  feasibility of developing an Internal Services Fund for facilities maintenance to improve planning and  paying for deferred maintenance and capital renewal of buildings. The Board adopted the addition of a  factor to the occupancy costs paid by various departments to occupy County‐owned buildings. The  revenue raised from this occupancy cost factor will be used to fund future maintenance of real estate  assets.  The work done as part of the FLIP report will be used to refine the Internal Services Fund factor;  • the County Administer developed and implemented an Administrative Bulletin implementing Real Estate  Asset Management Plan (RAMP) principles for the use and management of County‐owned and leased  assets, and to establish a centralized program to manage the space needs of County departments  [Administrative Bulletin 526.0 (AB 526.0) became effective on April 9, 2013]; and  • the Board of Supervisors has engaged ISES to complete a new assessment of FLIP properties that is  anticipated to be completed in September 2014.  The FLIP report will be updated after the updated  assessment of properties has been concluded.    2. The FLIP report prioritizes deferred maintenance needs and costs, but includes less than half of the total  facilities owned and maintained by the County.    Response:  The respondent agrees with the finding.   Due to funding constraints and the need to address Finding  number 4 below we are unable to assess all County owned and operated facilities. However, as part of the 2014  assessments we are focusing on buildings that were not included in the original 2007 FLIP report. We are also  including the more critical buildings that were scored in the poorest conditions in the 2007 FLIP Report. This  approach will allow the County to get new data on some facilities not included in the original report also reaffirm  conditions of facilities that should be closely monitored because of their critical nature.    3. Funding allocations have not been adequate to meet the FLIP target goals that seek to tackle the backlog of  deferred maintenance on county‐owned facilities.  Response:  The respondent partially agrees with the finding.  As has been noted, an important aspect of deferred  maintenance is to determine the condition and use of various buildings to determine the need to maintain,  replace, or abandon (sell) the facility.  Even if it were economically feasible, it would be unwise to simply allocate  funds for all county‐owned facilities including those that are surplus.  A strategic, well thought out and vetted plan  for tackling deferred maintenance needs must be part of an overall master facilities plan.    4. The Public Works Department does not have a database that integrates all existing information about county‐ owned facilities, which would more efficiently track and manage maintenance efforts.  Response:  The respondent agrees with the finding.    Recommendations  1. The Board of Supervisors should annually update the FLIP report, starting with FY 2014‐2015, until the backlog  of deferred maintenance and repairs have been completed.  Response:  The recommendation will not be implemented because it is not reasonable.   Updating the report  every year would require more staff time and funding than is available.  The County intends to update the  Facilities Life‐cycle Investment Program (FLIP) report every 5 years. However, the County will continue to update  the FLIP database annually based on work that is done on County facilities and monitor facility conditions.  2. The Board of Supervisors should expand the FLIP report to include all county‐owned facilities.    Response:  The recommendation has not yet been implemented but will be implemented in the future.  The  County has contracted with a company called ISES to complete a new assessment of FLIP properties that is  anticipated to be completed by September 2014.  The list was revised to include buildings not assessed in 2007,  remove buildings no longer in the County inventory due to sale, and closely monitor those buildings most in need  of attention due to their condition or critical nature.    3. The Public Works Department should identify funds to expedite integrating all existing databases related to  county‐owned facilities for coordinated tracking and reporting of all deferred maintenance needs, priorities,  and completed tasks.  Response:  The recommendation has been implemented.  The County allocated $167,000 in Venture Capital  Funds to the Public Works Department in fiscal year 2013‐14 to purchase and implement a comprehensive Asset  Management software package.  While this endeavor has proven to be more complex and difficult than initially  thought the Public Works Department has engaged a consultant and identified an aggressive schedule to address  many of the database issues facing the County.