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HomeMy WebLinkAboutMINUTES - 06111991 - EP.1 TO: BOARD OF SUPERVISORS FROM: Economic Progress Committee Supervisor Tom Powers ..�� �•••.. C ntl a Supervisor Robert Schroder ; DATE: June 11, 1991 ; �. �. �`` Courcy a cuii r^ N SUBJECT: Asset Management SPECIFIC REQUEST(S) OR RECOMMENDATIONS (S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS Approve .County "Asset Management Policy Guidelines" and "Roles and Responsibilities for the County Office of Asset Management. " FISCAL IMPACT The goal of the County's Asset Management Program is to develop new revenue resources for the County. BACKGROUND/REASONS FOR RECOMMENDATIONS On March 13 , 1990, the Board of Supervisors, on the recommendation of the Economic Progress Committee, directed the Community Development Department be charged with the task of establishing an organizational structure (an asset management structure) for carrying out the County's enhancement policies. Staff has developed, and the Economic Progress Committee, is recommending approval of "Asset Management Policy Guidelines" and an organizational structure to implement said guidelines included in the "Roles and Responsibilities for the County Office of Asset Management. " The Redevelopment and Economic Development Division (currently in the • Community Development Department) would be the County's Office of Asset Management. The policy guidelines have been developed in conjunction with staff and the County Administrator's office, Public Works Department, General Services Department, Community Development Department and the Growth Management and Economic Development Agency. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER e� SIGNATURE(S) : Tom Powerse I. Schroder ACTION OF BOARD ON June 11, 1991 APP OVED AS RECOMMENDED x OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A X UNANIMOUS (ABSENT II ) TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. cc: Community Development County Administrator ATTESTED // 1991 County Counsel PUL BATCHELOR, CLERK OF Growth Management & THE BOARD OF SUPERVISORS Economic Development Agency -D AND C NTY ADMI ISTRATOR Public Works Department BY �- ,C. , DEPUTY General Services Department Redevelopment Agency SRA16/jb/asetmgmt.bos CONTRA COSTA COUNTY ASSET MANAGEMENT POLICY GUIDELINES It is the mission of the County's Economic Development Programs to improve the quality of life in Contra Costa County by developing, in partnership with other public and private sector partners, new resources to assist the County in providing adequate services and facilities to its communities. It can do so by effectively planning and designing programs that can generate new resources for the County and provide employment opportunities for its residents. An Asset Management Program is an important component of the County's economic development strategy. The following policies are designed to provide guidance with respect to management of County real estate assets: 1. Contra Costa County's real estate portfolio is an asset to be used to maximize long term public benefit. This will be accomplished by: - the development and implementation of public policy - implementation of approved plans and programs - earning a reasonable financial return for the County - delivering high quality service to the Public - supporting efficient operations 2 . The Control of property over time is often necessary to maximize public benefit. Accordingly, the County should ultimately own important portfolio assets. 3 . The County's real estate portfolio represents a major investment and resource for future operations. It's financial value should be preserved and increased over time. 4 . The asset portfolio may be used as a source of direct revenue for the County. As long as the value of the portfolio is preserved, prudent financial risk is appropriate. 5. All asset transactions should be consistent with and implement the public objectives communicated through the General Plan, Area Plans, and policies. 6. Acquisition of real- estate is warranted by a specific current use, a requirement to control the site for future use, or by significant financial advantage to the public. 7 . County assets may be considered for disposition when there are no immediate uses for the property, and when long term control of the site does not increase the public benefit or financial return to the County. 8. To maximize financial return, the disposition price of public assets should be at or above market value, unless long term social benefit will be demonstrably increased by a subsidized ("below market") transaction. This benefit shall be in conformance with applicable law and will generally be documented by an existingpolicy or a project proposal approved by the Board of Supervisors. 9. Investment in the asset portfolio may be done in conjunction with the private sector and may be structured as leases, limited partnerships, swaps, sale-lease-back options, and other arrangements approved by County Counsel and the Board of Supervisors. 10. Properties used to support the operations of the County should be procured and maintained on a prudent, economic basis. 11. Investments in County-used facilities should complement and implement facility guidelines, building and zoning codes. Handicapped access for employees as well as users are to be provided in accordance with legal requirements. 12 . The County shall handle transactions on its portfolio properties in accordance with applicable laws and shall structure. a process that may include, but is not limited to, direct negotiation, a broker representative, a bidding process, or a Request For Proposal procedure. 13 . Any County exercise of its governmental powers (land use regulation, condemnation, etc. ) concerning this policy's property assets shall only be done in an appropriate manner to serve the public. good and protect their value. 14 . Liability, both actual and potential, should be minimized. sra13/jb/aset mgpo.g1 Contra Costa County - Roles & Responsibilities for Asset Management 1. This establishes the Office of Asset Management and sets forth its responsibilities and functions. 2 . The Office of Asset Management shall be a unit of the Redevelopment/Economic Development Department. It is hereby designated the lead agency in directing initiatives designed to realize economic return from real estate assets (and such other assets as the Board of Supervisors may direct) held in the name of the County of Contra Costa or other agencies governed by the Board of Supervisors in their various capacities. 3 . The purpose of the Office is to manage the County's real estate portfolio in order to maximize social and financial benefit to the community. The overall goals and objectives shall include: - Enhancing the financial condition of the County, particularly the General Fund - Enhanced tax base and economic development - Implementation of County General Plan - Sensitive physical development and redevelopment - Accessible, diverse, and well maintained housing stock - Comprehensive park system and recreational assets - Efficient public infrastructure system - Enhancement of neighborhoods - Efficient public structures and service delivery "Management" in ,,the context of the duties of the Office of Asset Management shall mean determining: (1) the suitability of-the County's real estate portfolio for economic development or resource enhancement purposes; (2) the level and type of financial investment, (3) appropriate property uses, and (4) structure and type of rights and interests the County shall hold in the property. Actual project development, including design, bidding and construction remains the responsibility and authority of the Department of Public Works, and the Department of General Services. Also, day to day care, operation and maintenance of the facilities are the responsibility of the Department of General Services, and shall not be included in the responsibilities of the Office of Asset Management. In coordination with the Office of Asset Management, the execution of property acquisition/disposition activities shall be undertaken by the Public Works Department —Real Property Division, and the execution of property leases shall be undertaken by the General Services Department - Lease Management Division. The County Administrator's Office shall continue to oversee and direct the County's Long Range planning and financing for capital facilities. Coordination with the Office of Asset Management shall occur as appropriate. � - Specific goals for the real estate portfolio shall be: - Increased revenue generation - Better service to the public - Reduced costs - Improved operating efficiency - Upgraded County facilities - Higher utilization of assets - Implementation of County plans and goals. 4 . As lead agency for the County's real estate activities, Asset Management shall: Provide broad policy guidance to County agencies on real estate matters. Establish and maintain a perpetual inventory data base and a complete set of files on County real estate assets determined to have economic development or resource enhancement capabilities. Said files shall include documentation as to funding sources and any resultant limitation. Undertake and coordinate, in cooperation with the user agencies and other appropriate County departments, for assets determined to have economic development and resource enhancement capabilities, including leases, acquisitions, dispositions, relocations, exchanges, dedications, easements, and any other transactions which impacts the composition or value of the County's real estate portfolio. This includes general fund, internal service fund, and enterprise fund organizations as well _ as independent agencies under the Board of Supervisors. Determine the most appropriate use for County-owned real estate in cooperation with the user agencies and other appropriate County departments. Work with the Board of Supervisors and its Economic Progress Committee, and other appropriate County departments to establish and implement a comprehensive asset management policy to guide decisions regarding real estate assets. Review financial and project feasibility analysis and approve all investments which impact the value of the County's real estate portfolio. Review the development and planning on all County property reuse and development projects, including any competitive processes which are involved in the planning stages. 2 . i; Procure or conduct financial, marketing or master plan studies as needed to provide strategic guidelines for real estate portfolio management. Review with appropriate County departments any real property proposed to be taken as collateral or consideration by the County. In coordination with other appropriate County departments develop, maintain and implement strategic plans for the major real estate assets of the County. Develop, in conjunction with the Department of General _ Services and the County Administrator, a program to manage all real property determined to have economic development or resource enhancement capabilities so as to maintain and realize expected returns. Coordinate, as necessary, with the County Administrator or General Services Department and Public Works Department to review the. activities of other real estate management entities impacting the County's portfolio. Procure environmental site assessments and determine appropriate action to protect the County in conjunction with real estate transactions. 5. Intra-County Coordination Asset Management's role is to integrate agency program needs, budgetary and financial goals, master plans, and policy guidelines, and to manage the execution of transactions determined to have economic development or resource enhancement capabilities, in coordination with appropriate County departments. Accordingly, coordination with other agencies shall be extensive. Specifically included are: Economic Development/Redevelopment Department: The County's real estate portfolio should be viewed as an important means to accomplishing economic development goals. Accordingly, proposals involving the use of County real estate assets_ determined to have economic development capabilities will be subject to review for program consistency and development opportunity. 3. Community Development Department: Determinations relative to the economic development or resource enhancement value of County real estate assets shall be made after consultation with the Community Development Department for consistency with environmental and neighborhood concerns, zoning considerations, the General Plan and other master plans, including park and recreation plans, Community Development programs, and general land uses issues. County Counsel• County Counsel will advise and handle the documentation for Asset Management. If outside assistance is procured, it will be at the request and under direction of County Counsel. Building Inspection: Building Inspection will be consulted with respect to use of the Land Information System (LIS) as a tool for managing information on County real estate holdings. Public Works• Real Property Division in particular will be consulted in the development or acquisition and disposition of real estate assets, and will be responsible for executing said action: Engineering Services, Flood Control, Road Engineering and the Airport Divisions, Project-Design and other divisions will have standard approval authority on property issues. General Services: General Services will be consulted on structures and properties under their management. County Administrator: All projects are subject to the approval of the County Administrator for ` Consistency with financial plans and resources, capital facilities plans and other needs of the County. Risk Management will be consulted on insurance matters. 4. Board of Supervisors: Policy and implementation guidance with respect to the development and implementation of the Asset Management Program will be provided by the Board of Supervisors and its Economic Progress Committee. Coordination with Board of Supervisors members on contemplated projects and transactions in their districts will be a standard procedure for early identification of neighborhood concerns and issues. Asset Management Coordinating Committee: In order to realize the coordinated implementation, the County's Asset Management Program, an inter-departmental coordinating committee consisting of staff representing the involved departments shall be established. Meetings of this committee shall be scheduled as frequently as necessary to achieve the desired coordination. 6. Project Notification and Request Procedure • Any agency or department shall notify Asset Management in writing at the outset of any project it believes may have some economic development or resource enhancement value to the County. Such activities may be discussed on a preliminary basis with the Office of Asset Management or, if necessary, in order to clarify whether formal notification should be required. • Said notification should include a brief description of the project, and an agency contact person. • Asset Management, as the County's coordinator for actual - and appropriate uses for each County-owned real estate asset determined to have economic development or resource enhancement capabilities, will review each proposal for enhancement to the real estate portfolio, as well as other financial, planning and social goals of the county. • Asset -Managembrit, when appropriate and in coordination with the appropriate County departments, shall prepare market or site studies, identify site alternatives, prepare development or reuse programs, analyze financial impact and viability, appraise value, contact private sector lessors, developers or tenants, prepare RFQ's and RFP's and manage the competitions for asset management type studies on value, reuse, feasibility, financing, etc. , and provide any necessary technical advice or policy . review for *the project, as necessary. Brokers, developers, or consultants will be used as required, from time to time, as part of this process. 5. • The County Administrator has the final authority with respect to decisions and/or recommendations to the Board of Supervisors on Asset Management activities. sn 13/jb/asctmgmt.ccc 6.