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HomeMy WebLinkAboutMINUTES - 07281992 - FC.1 4 . Z Contra TO: BOARD OF SUPERVISORS Costa FROM: Supervisor Tom Torlakson .. CQu / Supervisor Tom Powers ST C �N Finance Committee DATE: July 28, 1992 SUBJECT: Survey Results -Organizational Efficiencies Feasible for Community-Based Organizations SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS 1. ACCEPT the report of the Finance Committee in the survey of community-based agencies on organizational efficiencies and other suggestions discussed at the Finance Committee meeting. 2. DIRECT Contra Costa Health Plan representatives to meet with the contractors to present information on the cost of health plan participation. 3. DIRECT the Social Service Department to meet with agencies interested in extending their personnel resources through the use of General Assistance recipients. 4. DIRECT Risk Management and County Counsel to explore the feasibility of community-based organizations joining the County's risk pool for worker's compensation, liability insurance and state unemployment insurance. 5. DIRECT the County Administrator to work with federal and state governments to explore the possibility of reducing reporting requirements on community-based agencies that divert resources away from direct service. 6. DIRECT the County Administrator to explore the feasibility of legislation to reduce liability exposure of community-based agencies. CONTINUED ON ATTACHMENT: YES SIGNATURE: _RECOMMENDATION OF COUNTY ADMINISTRATOR _RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON July 28,- 1992 APPR T ED AS RECO DED x OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A X UNANIMOUS (ABSENT ) 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. ATTESTED July 28, 1992 PHIL BATCHELOR, CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR cc: CAO CCHP /Health Services Social Services BY , DEPUTY Risk Management Finance Committee BACKGROUND/REASONS FOR RECOMMENDATIONS At its July 20, 1992 meeting, the Board of Supervisors requested that the Finance Committee look at organizational efficiencies which could enable Social Service Department-funded community- based agencies (plus Rape Crisis Center and Battered Women's Alternatives) affected by the Phase I budget reductions to either raise revenues or reduce expenditures. Staff met with agencies on Wednesday, July 22, 1992 to discuss the Board's referral and to request their ideas and response on the feasibility of a variety of efficiency measures. Nine agencies responded to the survey: Rubicon, Battered Women's Alternative, Crisis and Suicide Intervention, Family and Community Services of Contra Costa, Contra Costa Child Care Council, Rape Crisis Center, Family Stress Center, Community Food Bank and the Child Abuse Prevention Council. The Contra Costa Association of Retarded Citizens did not fill out the survey, but stated that since 1986 they had "implemented every measure possible to reduce expenses to the absolute minimum," and that administrative expenses are less than 9% of direct service costs. On Monday, July 27, 1992, the Finance Committee reviewed the survey results and discussed alternatives with agency representatives. All agreed that the agencies have already taken many measures to increase organizational efficiency. Some of the efficiency suggestions are applicable to only a few agencies and/or require action on the part of those agencies. For example, the Battered Women's Alternative is currently investigating the cost-effectiveness of using the Crisis and Suicide Prevention 24-hour phone answering services. Other suggestions require further investigation including CC Health Plan, use of General Assistance recipients, agency participation in the County's risk pool, relief on federal and state reporting requirements and legislation to limit liability exposure of the community-based agencies. Attached please find a summary of the survey results. ORGANIZATIONAL EFFICIENCIES SURVEY OF COMMUNITY-BASED AGENCIES SUMMARY AFFIRMATIVE NEGATIVE ALREADY AGENCY QUESTION RESPONSES RESPONSES DOING RECOMMENDATION 1A. 1 5 3 Drop-not enough interest. Consolidate Fundraisin 1B. 2 6 1 Drop - not enough interest Consolidate Purchasing 1C. 0 8 Drop-not enough interest. Consolidate Personnel 1D. 0 8 1 Drop-not enough interest. Consolidate Records 1E. 4 4 - 1 Drop-many contractors have Consolidate confidentiality issues. Database However, interested Management agencies to explore the formation of a data-base user's group for nonprofits. 2. Share 4 2 3 Some interested in Facilities ex lorin sharedspace. ace. 3. Consider 7 2 Q Strong interest in exploring using Health Plan benefits and CC Health costs. Plan 4. Use GA 2 5 2 Social Service will need to clients meet with interested agencies. 5. 2 6 1 Drop-most cite uniqueness Consolidate of services. Services 6. Other 4 4 Q Most common idea: join ideas County pool for workers' comp. , liability insurance, state unemployment insurance. Crisis & Suicide Intervention could provide 24-hour phone answering services. COMMENTS AND SUGGESTIONS What potential do you see for consolidating administration with other non-profit organizations in the following areas: .IA. Fundraising ► I can't see how this could be consolidated given the wide-ranging diversity of programs and fundraising needs. I think the ability to raise corporate and private contributions would be seriously compromised by consolidation as shown by movement toward donor option with United Way, etc. People want to make choices about where their money goes. (Rape Crisis Center) ► We do this already. We apply for and receive FEMA funds and foundation grants for 25 food pantries & soup kitchens. We distribute proceeds from the SF Chronicle's "Season of Sharing" fund and holiday gift certificates from Safeway Stores to local feeding programs. (Contra Costa Food Bank(CCFB)) ► We already do some of this and are exploring options to do more. However, special event fundraising is not very lucrative. Two other areas which might prove fruitful for collaborative effort might be doing research and sharing mailing lists. (Contra Costa Child Care Council) ► As an umbrella organization, we already consolidate fundraising among our several programs. One idea would be to have a fundraiser paid for by several agencies who could organize joint fund raisers. Staffs presently don't have capacity to do more. (Family & Community Services of Contra Costa(FCS)) ► The Child Abuse Prevention Council (CAPC) plans its fundraisers one year (or more) in advance. In future years, we would be happy to explore the possibility of doing joint fundraising events with other contractors. ► If the donor, Board member or volunteer does not believe in the work of the agency, they will not freely give of their time and money. This is the main reason why consolidation will not be cost effective. Professional fund raisers stress that private individuals and groups do not donate to a superagency which has no identity. Research has shown that donors give to causes the donor believes in and to people who have an association with their cause. A special event with mass appeal to the general public would be a possible way to raise money. Possibilities are a concert with a major celebrity or a sporting event. We would need a contact with a personal relationship to these individuals or groups to convince them of the worthiness of our cause. If any of the FSC constituents had such a contact, we would have exercised it many times over! ! ! (Family Stress Center (FSC)) ► Battered Women's Alternatives (BWA) donors are intensely loyal and are committed to the issue of family violence. Merging fund raising efforts might dilute the message and result in fewer dollars raised. ► Rubicon is a United Way Member Agency- we closely coordinate our fundraising activities through United Way. ► Give a county tax break for donations to county contract nonprofits (Crisis & Suicide Intervention, CSI) 2 1B. Purchasing ► This might be a possibility with some items if the County could provide less expensive paper costs, etc. Much equipment is donated so I'm not sure if the impact of consolidation would be measurable. (Rape Crisis Center) ► We do this already. We operate a food purchasing program, pooling resources from dozens of local charities in order to qualify for larger discount rates. We would be interested in exploring any avenues that might reduce our costs for office and warehouse supplies. (CCFB) ► 1 think the coordination of cooperative purchasing would eat up any savings. Currently we receive non-profit discounts from suppliers and use the United Way's Non-Profit Services Clearinghouse. (Child Care Council) ► Willing to look at supplies costs through county. Perhaps a list of most ordered items and their cost could be developed and shared for comparison. (FCS) ► The only items currently purchased are consumable office supplies (which are obtained at a non-profit discount rate) . All other office furniture & equipment is donated or "loaned" until a donation is secured. (CAPC) ► Our primary credo'at Family Stress Center is to get the item we wish donated. ► We would be interested in exploring economical ways to purchase office supplies but are unable to buy in bulk due to a lack of storage space. (BWA) ► Our vendors already sell many products to us "at cost" because they support our efforts. The various joint purchasing options put together by non-profits, though cheaper than County costs, can't compare with "at cost". (Rubicon) ► We hustle for purchasing breaks. :My experience is County pays more. (CSI) . 1 C. Personnel ► Personnel needs are so specific, consolidation does not seem possible. (Rape Crisis Center) ► We are providing personnel coverage for food providers in Contra Costa County. Since our inception we have delivered food to all emergency food pantries and soup kitchens--a service no other food bank in the country offers. This has saved these agencies the expense of drivers and vehicle operation, making it possible for many of them to stay in business while pantries and soup kitchens in other counties close down. (CCFB) ► Personnel policies are established by Boards of Directors and vary agency to agency (sometimes dramatically) . I don't see much consolidation potential here. (Child Care Council) ► A help would be access to training and advice from county on laws and regulations. (FCS) ► The Council currently employs two staff people: an Executive Director and an Office Manager. Were we to merge with another agency we would still need to maintain this level of staffing to sustain the integrity and autonomy of our mission. (CAPC) 3 ► About 8 years ago, the United Way funded a Collaborative Administrative Unit (CAU) to provide fiscal and fund raising services to three agencies: the FSC, Child Care Council and Child and Family Therapy Center. After three years, the CAU was dismantled as the requirements of the three agencies were so diverse, the CAU could not meet the requirements. (FSC) ► It seems unlikely that the personnel function could be more economical (BWA) No. Because of confidentiality issues, sharing personnel information has limitations. A very strong information hiring network does exist through "Opportunity Knocks", The Management Centers' non-profit clearinghouse. (Rubicon) ► Keep mailing list of laid off people by classification and help nonprofits when they are recruiting. (CSI) 1D. Records ► Rape Crisis Center is required to maintain confidentiality in record-keeping which mandates certain types of information-gathering and prohibits consolidation. ► We do this already. As the central clearinghouse for food donations, we maintain detailed food collection and distribution records. We also give agencies record- keeping forms and compile data from them on the number of people each serves. (CCFB) ► Our records are confidential. (Child Care Council) ► No ideas except requirements for least amount of paperwork lets everyone concentrate on service. (FCS) P. Our records are maintained by volunteers, under the supervision of our Executive Director. (CAPC) ► At the FSC our record keeping procedures are driven by the requirements of the funders. The Head Start delegate agencies are waiting for the Community Services Department to select a computerized registration and database programs and all the delegates plan to use the same computer program. (FSC) ► No consolidation of record-keeping functions is possible due to confidentiality issues with clients. (BWA) ► Rubicon and Hawkins have arranged for exchange of services that includes bookkeeping functions for Hawkins being handled by Rubicon. Arrangements whereby a small agency such as Hawkins can take advantage of a large agency's accounting/bookkeeping capabilities can save significant resources. (Rubicon) 1E. Data Base Management ► This might be worth exploring-at least in terms of database systems. (Rape Crisis Center) ► Much of the information we collect from agencies is maintained on a computer database. PacTel has shown some interest in providing funds and technical assistance to us so that we can set up a system linking all emergency food pantries. Pantries would be able to share data on clients that could be accessed by social workers and other referral sources as well. (CCFB) 4 ► Our database is confidential and governed by individual contracts. (Child Care Council) ► Could the County provide access to your training classes so our staff skills could be upgraded and perhaps be able to use the same software for coordination and simplification and less duplication? (FCS) ► Our Database has been developed, is managed and routinely upgraded by volunteers under the supervision of our Office Manager. (CAPC) ► Form and coordinate a data base users group for nonprofits. (CSI) 2. Is there a possibility of sharing facilities to achieve savings in building costs? ► This might save a great deal of money for non-profits in rent and possibly shared reception, phones, etc. The Rape Crisis Center would need locations in West, Central, and East Contra Costa. ► The whole idea behind a food bank is that we store large donations of food so that smaller charities don't have to. Our warehouse is 15,000 square feet -- much bigger than the facilities of other non-profits-- and is full of expensive equipment (forklifts, floor scales, and large walk-in cold boxes, not to mention our fleet of trucks) no other charity needs. (CCFB) ► At this point we do not have space to offer another organization and have leases for all the space we occupy. However, we do lease county space at a cost of$12,696 per year plus another $4,800 per year 'in janitorial costs. If the County could waive all or any of these costs, that would certainly help. (Child Care Council) ► Family and Community Services has just cut office space from 8,000 square feet to 5,000 square feet. Programs presently share space with other Family and Community Services Programs. We also share our meeting room with other non-profits at no cost to them. We could sublease one or two rooms part-time to other agencies who need administration space in any area of the county. ► Our landlord, the Casey Family Program, is a charitable foundation which for 3 years has offered us a generous discount of 55%of the current rental market rate, and has committed to extend this favorable rate through at least 1995. If we could obtain a lower rate on space that would meet our needs, we would enthusiastically consider a merger. (CAPC) ► The FSC would welcome free space. We share our space with other non-profits whenever possible. (FSC) ► We currently have shared space for support groups and our legal program. We would be interested in obtaining :free, shared space in South County, as well as moving into free counseling space in East and West County when our leases expire (BWA) ► We own our building and have no Excess space and need no additional space (CSI) . 3. Would you consider exploring possible savings in benefits, for example, obtaining a better group rate through enrollment in Contra Costa Health Plan? ► We explore all options that might save money. The last time we checked, however, the CCHP group rate was considerably higher than our current health plan. (CCFB) 5 ► Presently we are in United Way Benefit program which is very cost-effective. However, we would consider CCHP if rates were less. Please share information on costs. ► We examined the costs and benefits of the CCHP again this year and have opted for a different carrier which meets our needs at a lower rate. As is our practice, we will survey other options each year to ensure cost-effectiveness. (CAPC) ► We would consider discontinuing Kaiser and enrolling our employees in CCHP. When it was offered before, only four of our employees chose the County plan, far less than the,required number of enrollees. (FSC) ► We would consider - would let group representative present to staff. (CSI) . 4. Could you use General Assistance clients to perform services under your supervision? ► FCS has participated in former GA (GAIN) programs and uses Title V, Older Americans Act presently. We would be glad to use the program. Supervision is difficult and costly because we do not have this level of employee who doesn't do direct service and must fit in supervision. (FCS) ► The Council currently has a non-financial GAIN/PREP contract with the Social Service Department which is under-utilized. However, we continue to make tremendous use of D.A. Diversion Program volunteers. We also have a non-financial contract with the Center for Adaptive Learning for placement of their clients and on- going relationships with the George Miller Centers and the Girl Scouts, for joint, mutually beneficial projects. (CAPC) ► Yes the Family Stress Center would like free labor from General Assistance recipients. ► Usually no need for volunteers - need for supervision. (CSI) 5. Could you consolidate the provision of services with other non-profit organizations which provide similar services? ► Requirements for rape crisis services are strictly standardized by the State. Combining with another agency would not be cost effective. RCC has already consolidated services with three other Rape Crisis Services in Contra Costa and all of Marin County. (Rape Crisis Center) ► No other local non-profit provides a similar service. The food bank is unique. (CCFB) ► The most logical move for the Child Care Council in terms of consolidation would be for us to assume responsibility for some or all of the parent choice subsidy programs currently managed by the Department of Social Service (Alternative Payment, Title IV-A, GAIN Exempt Child Care, Transitional Child Care, Federal Block Grant and Non-GAIN Employment and Training) . ► Family and Community Services is an umbrella agency and would consolidate with other organizations; however, no other non-profit provides Meals on Wheels. (FCS) ► We are the only agency in Contra Costa County dedicated solely to child abuse prevention. Part of our mission and purpose is to coordinate related agencies that provide services to a similar clientele. In order to maximize efficiency and cost- effectiveness, we have for many years been consolidating provision of services. (CAPC) 6 ► BWA is the only agency in the COULnty providing services to victims of domestic , violence. We currently contract with Crisis and Suicide for hotline services and are always looking for methods to provide effective and cost-efficient services. ► Yes, if they existed. (CSI). 6. Please share any other ideas you have for consolidating administration, providing services jointly or achieving econon jes of scale with other non-profit service organizations. ► Possibility of economies of scale or lesser costs by participating in County plans for Workers' Compensation, SUI, Liability Insurance and D&O liability. (Rape Crisis Center) ► Perhaps the County can play a lead role in establishing a nonprofit center where local charities that operate similarly can rent offices and share common space, clerical support, and equipment. (CCFB) ► Did not complete form because Contra Costa Association for Retarded Citizens has already implemented every measure possible to reduce expenses to the absolute minimum. Our administrative expenses are less than 9% of direct service costs. (CCARC) ► The Child Care Council is the result of a consolidation (merger) of two agencies five years ago - the Children's Council and the Child Care Alliance. Most of us affiliated with the agency, both then and now, agree that this consolidation created an organization which is stronger than either of its predecessors. Consolidations take a lot of time and work. The Council and Alliance Boards negotiated for over four months before making the decision to merge. Then staff and the Board worked for another nine months to actually implement the consolidation. A variety of legal and compliance issues must be considered. When we merged we needed approval of the Concord City Council to assign the Concord contract to the new Child Care Council, and at one point, the State Department of Education threatened to pull all of our state contracts because we were no longer the Children's Council. It took years to dissolve the Child Care Alliance corporation. ► Since we are an umbrella agency already, we could take in other smaller programs and could adjust space accordingly. The concept of shared administration and economy of scale is why we use an umbrella concept providing eight senior programs and a variety of counseling and therapy programs already. (FCS) ► As a very small non-profit with an almost overwhelmingly vast mission, we have been forced to be maximally efficient in order to keep our doors open for the past 16 years. Throughout that time we have conscientiously brain-stormed and thoroughly evaluated and/or implemented every cost-saving measure suggested. We have struggled to keep up with the demand for our services by expanding in areas which are at no cost to the County (such as "volunteer" recruitment and training of volunteers) . We honestly feel that we are currently as cost-effective as we can possibly be in order to maintain a base level of child abuse prevention services to those in greatest need of our help. We consider this a part of our strength as a non- profit, public service agency. We hope we have provided a better understanding of our situation and welcome any ideas or assistance you may be able to provide. (CAPC) ► One of BWA's major expenses is liability insurance: Directors/Officers' and Professional, as well as State Disability, State Unemployment, and Workers' Compensation. Is there any way of reducing these costs through County efforts or joint applications? 7 ► If the County took agencies into the County risk pool, the amount the county now pays contractors to buy workers' compensation insurance could be saved. (Rubicon) ► We can provide 24-hour phone answering services some nonprofits are presently paying for. (CSI). 7 8