Fiscal Year 2007
Annual Report
Georgia State Properties Commission Gena L. Abraham, Executive Director

Georgia State Properties Commission ..................
Message From the Executive Director

There is a quote from noted author, Joseph Edward Murphy that simply states, "We go where our vision is." Not too long ago, Governor Sonny Perdue gave us our vision and in essence, set the course for where the State Property Office should be going. His vision was to have a consolidated real estate office for the state of Georgia. In the Governor's vision, this office would have four main focal points: real estate acquisition and disposition, leasing, building and construction, and maintenance.

As State Property Officer, my job is to make sure that everything we do on a daily basis gets us that much closer to the destination of this vision. I knew that involved creating a system where all three government entities under my purview: The Georgia State Financing and Investment Commission (GSFIC), Georgia Building Authority (GBA) and Georgia State Properties Commission (GSPC) could maintain their uniqueness and still be a part of one team. To some this task may seem like trying to eat an elephant. And how do you eat an elephant? One bite at a time.
Ray Kroc founder of the McDonald's Corporation once stated that, "The quality of a leader is reflected in the standards they set for themselves." Setting standards was what I considered as one of the most vital parts related to tackling the proverbial elephant. In doing so, I not only have set high standards for myself but I have encouraged staff to set high standards for themselves both personally and professionally.

This process of following the vision and setting standards is being implemented at all three agencies: GBA, GSFIC and GSPC. We realize that while we represent what can be considered as the "State Property Office", we also represent a much larger entity, Team Georgia made up of 130,000 State employees. We must be ready to serve and that service must be faster, friendlier and easier. This mandate goes along with the Governor's vision.
I hope as you read through this annual report, you're as proud as I am of the work we've done and will continue to do at GSPC. I am extremely excited that we've begun setting new standards at GSPC, charting a new course for how we do business while improving the quality of services that we provide.
My door is always open,
Gena L. Abraham, PhD.

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FY 2007 Annual Report

Georgia State Properties Commission ..................

Introduction

The Georgia State Properties Commission provides services in the area of information, property acquisition and disposition, and leasing primarily to State entities.

The Georgia State Properties Commission (GSPC) is responsible for the acquisition and disposition of all State-owned real property and all real property interests. The GSPC provides leasing assistance to State entities in the location of space in Stateowned or commercially-owned facilities. This service includes the layout of administrative space, lease negotiations with landlords and lease renewals.
Services consist of real property inventory information for all of the State's facilities and property, owned and leased. This compilation of 1,700 leases, 15,000 buildings and 1.1 million acres is readily accessible

on the BLLIP database at www.realpropertiesgeorgia.org. Users are able to query by a number of factors, including location, State entity, square footage and use, among others. Individual deeds and plats can also be downloaded and printed.
The Georgia State Properties Commission assists county and local governments when they have questions concerning the ownership, custody or location of State property in their jurisdictions. The ability to research this information in a timely manner is greatly enhanced by BLLIP, which is available to any user.

Vision, Mission, and Values

Vision
To maximize the value and use of Georgia's real estate portfolio.
Mission
To be the leader in real estate portfolio management.
Core Values
Stewardship Accountability Integrity Leadership

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FY 2007 Annual Report

Georgia State Properties Commission ..................
Table of Contents
Customer Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 FY 2007 Accomplishments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 FY 2007 Financial Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 FY 2008 Initiatives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 FY 2008 Organizational Chart. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 FY 2008 Contact Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 FY 2008 Governing Board. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
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Georgia State Properties Commission ..................
Customer Service
As defined by the Governor's Initiative, customer service is the provision of service to customers before, during and after a purchase or inquiry. We strive to deliver professional customer service in real estate portfolio management by providing consistent, timely service, hosting annual educational meetings for our customers and reviewing and implementing feedback from our Customer Service Surveys.
Greet customers promptly and courteously. Listen and verify our understanding of the customer's needs. Help customers with our answers and actions. Honor our commitments in a timely manner.
Customer Survey Results
Average ranking of General Performance Indicators: Treating customers in a friendly way . . . . . . . . . . . . . . . . . . . . . 94% Being attentive. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92% Responding to inquiries in a prompt
and responsive manner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92% Being knowledgeable and informed
about customer issues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92% Providing useful information. . . . . . . . . . . . . . . . . . . . . . . . . . . . 90% Being accessible. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90%
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Georgia State Properties Commission ..................

FY 2007 Accomplishments

Fiscal year 2007 marked a successful year for the Georgia State Properties Commission (GSPC). Key achievements included the development and roll-out of the BLLIP application, which also was recognized by the National Association of State Facility Administrators for the 2007 Innovation Award; the redesign and expansion of the GSPC Web site; and the completion of the Statewide Needs Assessment for real property capital assets.

BLLIP (Building, Land and Lease Inventory of Property)
This consolidated database is the vision of Governor Sonny Perdue and is the result of recommendations from the Commission for a New Georgia through its Space Management and Capital Construction Task Forces as well as directives from an Executive Order restructuring capital asset management in the State of Georgia.
BLLIP (www.realpropertiesgeorgia.org) is an interactive web-based geographical information system designed to enable registered users to query, search and generate reports using real time information about

State-owned and leased properties and buildings. The Georgia State Financing and Investment Commission, the State Properties Commission, and the Georgia Building Authority have compiled this consolidated inventory in collaboration with State entities and the Information Technology Outreach Services (ITOS) of the Carl Vinson Institute of Government, University of Georgia.
BLLIP was completed on January 31, 2007 with the roll-out of the property data base. This was preceded by the building data base roll-out in September 2006 and the leasing data base roll-out in May of 2006.

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Georgia State Properties Commission ..................

NASFA 2007 Innovations Award
In June 2007, BLLIP was recognized as the winner of the 2007 Innovations Award by the National Association of State Facilities Administrators (NASFA) for outstanding achievement by a state facility organization in establishing an innovative new program or improving an existing program. The program is intended to enhance efficiency and effectiveness in state government.

GSPC Web site
GSPC unveiled its newly designed and expanded website in March 2007. The site (www.gspc.georgia.gov) now includes information about all of GSPC's services, proposed sales of real property, all pertinent forms and publications and contact information. Additional revisions and additions are ongoing and we are continually seeking ways to improve the usefulness of the GSPC website.

Statewide Needs Assessment
As part of Governor Perdue's Executive Order on Capital Asset Management (January 2005), the State Property Officer was directed to conduct a statewide needs assessment for a unified and fully integrated capital asset portfolio management data system. The goal was to consolidate the management of all real property assets (land, buildings and leases) in order to bring comprehensive and consistent statewide standards, practices and a strategic business approach to managing the State's largest capital investment.

GSFIC issued a RFP for Real Property Asset Management and Control and selected Equis Corporation to provide this assessment. The project, completed in February 2007, delivered services through five phases of work (data collection, current conditions analysis, interviews, workshops, deliverable development) in seven real property business areas (portfolio management, space management, lease administration, project management, maintenance management and building automation systems). These master functions served as the organizing principle for the five phases of work.

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Georgia State Properties Commission ..................

Demand Management and Lease Administration (Phase i)
Based on the recommendations from the statewide needs assessment, GSFIC entered into a Phase I contract with Equis to begin the development of a statewide portfolio management approach for Georgia. Noting that the current status of real
The greatest benefit to the state
and the most opportunity for
success is through incremental
transformation.
property management must transform from a disparate collection of organizations to an integrated portfolio-focused system, Equis recommended organizational development to move the State toward an integrated and standardized system with policy at a central level. In addition, there should be consolidated reporting and centralized service and technology delivery.
Since organizational change (people and processes) proceeds at a different rate than technological change (software and systems), the greatest benefit to the State and the most opportunity for success is through incremental transformation. This phase consisted of three primary areas of focus: demand management (documenting the need for space), total cost of occupancy (for budgeting and cost analysis information and to build data requirements for technology application) and a leasing practices survey (legislative environment, lease delivery method and lease contract management).

Real Property Transformation (phase ii)
Building on the work accomplished from the statewide needs assessment and the Phase I (Demand Management and Lease Administration), Equis identified gaps that currently exist in the way GSPC manages the State's real estate assets. During the course of Phase I, it became evident that the State's organizational structure, business practices, processes, and performance management of its real property assets required a restructuring in order to implement leading industry practices.
To achieve this, GSPC extended the contract with Equis to review, evaluate and recommend improvements to the State's management practices. The overall objective is to implement a comprehensive portfolio management structure that will include:
Portfolio Management - including Strategic and Tactical Planning
Asset Management - including evaluations, financial analyses, leased and owned property evaluations and Total Cost Of Occupancy determinations
Transaction Management - including Acquisitions, Dispositions, Leasing and Lease Administration
Space Management - including Demand and Supply management, Space Utilization analyses, technology applications and inventory management
Organizational Development - Performance Management, Service Level Definitions and Customer Satisfaction Evaluations
The execution of all of these ele-
ments of portfolio management
will position GSPC for effective
management of the State's real
property assets.

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Georgia State Properties Commission ..................

FY 2007 Financial Summary

The Commission is charged with the responsibility of managing certain State of Georgia properties along with preparing lease and sale proposals for submission to the Georgia General Assembly. Additionally, GSPC collects lease and sale proceeds on behalf of the State for State-owned properties. These amounts are remitted to the State Treasury and for FY 2007 totaled $11,513,783.

2007 Quarterly Income SPC 2007 Quarterly Income
$2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000

$0 1st Quarter Total 2nd Quarter Total

3rd Quarter Total

4th Quarter Total

Leases Ease/RLA Misc. Sales

2007 Income SPC 2007 Income

$2,375,741

$1,352,896

$7,785,146

Leases Ease/RLA Sales

FY 2007 Budget

Expenses
Personal Services Regular Operating Expenses Motor Vehicle Expense Supplies and Materials Repairs and Maintenance Freight, Express and Storage Publications, Printing and Rapid Copy Other Operating Expenses Total Regular Operating Expenses Other Operating Expenses Employee Travel Equipment >$5000 Rents-Real Estate Per Diem and Fees Contractual Expenses Computer Charges Computer Software Telecommunications GTA Total Other Operating Expenses TOTAL EXPENSES
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$ 868,722.00
1,000.00 35,500.00 2,300.00 1,700.00 5,200.00 30,500.00 76,200.00
13,000.00 9,000.00 55,506.00 135,000.00 1,000.00 4,000.00
500.00 7,600.00 229,306.00 $ 1,174,228.00

Georgia State Properties Commission ..................
FY 2008 Initiatives

GSPC Strategic Plan
During FY 2007, the Georgia State Properties Commission was engaged, for the first time, in an extensive strategic planning effort. Working with a consultant, the GSPC staff developed a Strategic Plan that will be closely followed in FY 2008 and beyond. This will provide a road map that will be followed for the next 4-5 years.
Reorganization
Using the recommendations from the Needs Assessment and ensuing work, GSPC is in the process of restructuring to provide comprehensive portfolio management services to the State of Georgia. This process, begun in early August, will result in an organization that will provide Asset Management, Space Management and Transaction Management services to the State's client agencies. Job descriptions have been developed, positions have been advertised and GSPC anticipates that a real estate Portfolio Management organization will be in place by the end of the calendar year. During this process, service level definitions will be developed, data collection templates will be implemented and policies and procedures will be finalized.
BLLIP
State Property Register
Building upon the successful implementation of the statewide inventory of real property, GSPC is in the process of adding additional information to the database that will better meet the needs of State agencies. In late spring 2007, under the direction of the State Property Officer, GSPC met with the leadership of the Department of Administrative Services (DOAS) to see how we could include the DOAS State Property Register in BLLIP. This suggestion was made by members of the former Space Management and Capital Asset Task Force (now the Real Estate

Management Advisory Team (REMAT) who requested that they only go to one database to input vital State information. With the cooperation of the Risk Management Services Division of DOAS, GSPC has been working to include all "other assets" inventory in the BLLIP database.
Risk Management is responsible for insuring all assets for the State of Georgia. Using the information currently in BLLIP, we hope to add to the accuracy of the State's information, streamline the process for data input on the part of the agencies' risk managers and provide a more efficient and cost effective process for ensuring that the State's assets real estate and general assets are properly insured. This new version of the State Property Register will be fully implemented in time for the State to go out to its underwriters in Spring 2008.
BLLIP Version 2
GSPC continues to develop and revise the BLLIP application. During this process of revision (version 2) the Leasing database will become editable, allowing the Transaction Management staff to input all lease information directly into BLLIP. This will ensure up-to-date information for public review and state officials alike.
New fields will be added to assist GSPC in becoming the State's Portfolio Manager for all real estate properties. Attributes that pertain to Space Management (usable square footage, rentable square footage, occupancy and utilization) will be available for facility managers and leasing coordinators. With the addition of this information, GSPC will be in a better position to advise State agencies as to where space is available, to negotiate better lease terms, to identify surplus or under utilized property and to provide better resource allocation for the taxpayers of Georgia.
GSPC also envisions adding new fields in FY 2008 to capture Total Cost of Occupancy (TCO) data for State agencies' use.

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Georgia State Properties Commission ..................
FY 2008 Organizational Chart

State Property Officer
Gena L. Abraham

Administrative Coordinator
Heather Pope

Deputy Executive Director
Rod Bowlden
Assistant Director
Frank Smith

Executive Assistant
Vacant

Space Management
Debra L. Elovich, Director
Space Planning Space Design Inventory Analysis

Asset Management
Michael Roy, Director
Financial Analysis Asset Analysis Special Projects

Transaction Management
Vacant, Director
Acquisitions & Dispositions Leasing Lease Administration

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Georgia State Properties Commission ..................
FY 2008 Contact Information
State Property Officer Gena Abraham, 404-463-5600 Deputy Executive Director Rod Bowlden, 404-656-5602
Assistant Director Frank Smith, 404-656-5602 Chief Financial Officer JoAnn Chance, 404-463-1470 State Property Officer Procurement Services
Shared Services Richard Sawyer, Director, 404-463-8825
Information Technology Paul Johnson, Director, 404-463-6501 Human Resources John Jurkiewicz, Director, 404-463-5600 Legal Services Cindy Presto, Director, 404-463-5672 Communications Ericka Davis, Director, 404-463-8564
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Georgia State Properties Commission ..................
FY 2008 Governing Board
Governor Sonny Perdue
Board Chairman
Lynn H. Vellinga, CPA
State Accounting Officer Board Vice-chairman
Karen Handel
Secretary of State Board Secretary
W. Daniel Ebersole
Director, Office of Treasury and Fiscal Services Board Member
Kent Alexander
Citizen Member appointed by Governor
James B. Talley, Jr.
Citizen Member appointed by Speaker of the House
Dr. George Snelling, III
Citizen Member appointed by Lieutenant Governor
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Georgia State Properties Commission 1 Martin Luther King, Jr. Drive, Atlanta, Georgia 30334
404-656-5602 Fax 404-651-8084 w w w. g s p c . g e o r g i a . g o v October 2007