CITY'S REAL ESTATE MANAGEMENT FUNCTIONS

Motion - Following months of deliberations and discussions by the City's policymakers regarding the management of City real estate assets, the City Controller commissioned an audit of this function to determine its effectiveness and make recommendations for improvements. On July 15, 2004, the City Controller related the results of that audit in her report entitled "A Vision and Strategy for the City's Real Estate." In it, the City Controller reviews the current operations and provides a comprehensive set of recommendations to focus the City's real estate efforts in a manner that will maximize the public benefits from the City?s real estate portfolio. The key recommendations in the Controller's audit focused on two areas: establishment of a long-range plan for asset management, and investment in the City's current assets. The Controller recommends that City staff develop and present a five-year capital plan and an annual real estate plan based on guidelines and policy directives established by the City's policymakers. The Controller notes that key to development of this plan is the completion of a comprehensive database of specific information on ALL City properties, including those owned by the proprietary and semi-independent departments and bureaus. On multiple occasions, the City Council has encouraged the completion of this database and the Controller's findings support that effort. Now that the City Controller has provided the framework for improvements in the City's real estate asset management system, the time has come for the City Council and the Mayor to work cooperatively to actively implement actions consistent with that framework. With billions in City assets involved in this process, it is critical that the City learns from past successes and focus its efforts to build a quality infrastructure to benefit future generations. THEREFORE MOVE that the City Council INSTRUCT the General Services Department, with the assistance of City Administrative Officer (CAO) and the Chief Legislative Analyst (CLA) and with the cooperation of all City and proprietary departments, prepare a detailed set of recommendations consistent with the findings of the City Controller's latest audit of the City's real estate management functions, including but not limited to the following: - development of a five-year capital plan and an annual real estate plan; - expedited completion of a comprehensive database on all City real estate assets; - summary information and recommendations for implementing an effective deferred maintenance program for all City assets; - recommendations for operational and/or administrative changes that will effectuate improvements in the management of City assets; - policy recommendations to guide the future development and management of City assets. FURTHER MOVE that the General Services Department report to a joint meeting of the Audits and Governmental Efficiency Committee and the Information Technology and General Services Committee within 60 days with a status report on its efforts, and any preliminary recommendations that will move this streamlining effort forward. REFER TO COUNCIL FILE 03-2644