Recommendation(s):*

R1

The County should determine a way to measure progress of the implementation of the RAMP directives and use that measure annually as a quantitative way of advising the citizens of the progress achieved. Response: This recommendation has been implemented. An annual report to the Finance Committee and Board of Supervisors has been prepared with a status of the key objectives of the RAMP program. Measurements of progress is reported as 1) the square footage of County owned vacant office space filled during the year, 2) the square footage of County owned office space vacated during the year, 3) dollars saved through leasing activities during the year, 4) the percent of County owned office space that is vacant (vacancy rate), 5) the cost of deferred maintenance completed, and 6) an estimated cost of deferred maintenance that remains to be done. The information on leased office space will be available in the near future with the completion of the real estate inventory. Each year's numbers will be compared to prior years to show how much progress has been made. The real estate inventory is estimated to be completed at the end of the year, so the first annual report that can include the full information on leased and vacant office space described above would be in January 2013. The first report exclusive of the real estate inventory will be presented at the next meeting of the Finance Committee.

R2

The County should consider acknowledging the growing magnitude of the deferred maintenance issue, review the RAMP objectives and actions, and develop a realistic approach. Response: The recommendation has been implemented. The County has acknowledged the magnitude of deferred maintenance and has budgeted $5 million this year, FY 2012-13, to complete much needed repairs and improvements. See recommendation three below for more detailed information on deferred maintenance. The County intends to budget funding each year to reduce the backlog of deferred maintenance projects. In addition, to prevent future deferred maintenance items, the County is looking at establishing an increase in the occupancy costs for County owned buildings that would be set aside to pay for building maintenance as the need arises. This fund will be established by the end of this year and will be implemented in early 2013 when occupancy rates are adjusted each year with the annual budget process. The RAMP objectives and actions have been reviewed and revised to include a more realistic approach to solving this long-term problem. This review of ramp objectives will be reported to the Finance Committee at its next meeting. As a result of this review, modification to some RAMP objectives will be recommended to the Finance Committee.

R3

Beginning with the FY 2012-13 Budget Summary, the County should consider providing citizens a complete and accurate update of its progress in addressing deferred maintenance and include disclosure of near-term plans, especially with respect to the critical and highest priority needs. Response: The recommendation has been implemented. It should be noted that the Budget Summary for FY 2012-13 had already been presented to the public and adopted by the Board prior to issuance of the Grand Jury's report. • In the FY 2011-2012, Budget Message the County stated that it had accrued substantial deferred maintenance. The County stated that facility maintenance analysis, completed in FY 2007-08, included comprehensive building condition assessments of 93 facilities and a total of 2.9 million square feet of building space, and identified a total of $251.2 million in deferred facilities maintenance needs and capital renewal requirements. The County further stated that due to significant fiscal constraints, the FY 2009-10, FY 2010-11, and FY 2011-12 Recommended Budgets included no appropriations for deferred maintenance or capital improvements/expenditures. • In the FY 2012-2013, Budget Message the County provided its citizens an update when it stated that it had accrued substantial deferred maintenance and capital renewal needs totaling $265.4 million and that due to significant fiscal constraints, the FY 2008-09 through 2011-12 fiscal years budgets included no appropriations for deferred facilities maintenance and capital renewal from the general fund. The Message further provided a complete and accurate update of its progress in addressing deferred maintenance when it stated emergency funds were spent as critical equipment failed and needed to be replaced. Further, that in 2009, $1.0 million was appropriated from the Criminal Justice Construction Fund and allocated for Criminal Justice Facilities only; and in FY 2011-12 Land Development funds were used for a large $12 million dollar renovation of 30 and 40 Muir Road in Martinez; and approximately $5.5 million of identified deferred maintenance were completed during this renovation. The Message went on to disclose near term plans when it stated that for FY 2012-13, $5,000,000 was recommended for appropriation for deferred facilities maintenance and capital renewal and that a new Capital Fund would be established for the administration of the County's Infrastructure and Facilities Maintenance Program. The Message stated that the objective is to begin to strategically fund deferred facilities maintenance and capital renewal on a yearly basis. Projects identified to be completed for FY 2012-13 were listed and it further stated that there will be an emphasis on priority 1 projects. • With the proposed revisions to the policy described above, which will be presented to Finance this summer, the County will be able to track and provide more detail than has been provided in the past and will include these statistics in the Budget Message as well as the annual RAMP report. CONSEQUENCE OF NEGATIVE ACTION: None. CHILDREN'S IMPACT STATEMENT: None.