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HomeMy WebLinkAboutMINUTES - 10091984 - 2.4 TO: BOARD OF SUPERVISORS • Contra FROM: Phil Batchelor, County Administrator Costa DATE: October 4, 1984 County SUBJECT: Establishment of a Centralized Billing and Collection Function for the County to be known as the Office of Revenue Collection SPECIFIC REQUESTS) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION It is recommended that the Board of Supervisors implement a centralized billing and collection function in order to maximize the efficient realita- tion of revenues due the County. In order to establish this function, it is recommended that the Board: 1. Approve establishment of a centralized billing and -/ collection function as a division of the Office of the County Administrator, to be known as the Office of Revenue Collection. 2. Approve the transfer of 11 permanent positions and their related budgets and functions from the Public Defense Cost Recovery Unit and the accounting group (which are both in the Probation Department) to the Office of the County Administrator to comprise the initial staffing of the Office of Revenue Collection. This transfer has the concurrence of the County Probation Officer and has been discussed with the affected employees and their representatives. (The existing six temporary employees will also be reappointed in the new department with no break in employment. ) 3. Establish the classification and allocate one position of Director of Revenue Collection with a five step salary range of $3305-$4018 per month in the Office of Revenue Collection, and establish additional positions as follows: 1 Management Analyst III ($2469-$3001) 1 Secretary - Journey Level ($1257-$1912) 1 Collection Services Assistant 1 ($1278-1553) 4. Introduce ordinance (amending the Ordinance Code) exempting the classification of Director of Revenue Collection from the County Merit System; waive reading, and fix October 16, 1984 for adoption. CONTINUED ON ATTACHMENT: XX YES SIGNATURE: &eltl-46 � j -G}L RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION BOARD COMMITTEE XX_APPROVE OTHER SIGNATURE(S) ACTION OF BOARD ON October 9, 1984 APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS X UNANIMOUS (ABSENT IV ) I HEREBY CERTIFY THAT THIS IS A TRUE AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. CC: All Department Heads ATTESTED 7/P_ /f,?4-/ County Administrator PHIL BATCHELOR, Clerk of the Board of Supervisors and County Administrator 1 M382/7-e3 BY DEPUTY A 2 . 5. Approve appropriation adjustments which reflect the following transfers to establish the initial budget of the Office of Revenue Collection: $226 , 098 from Probation for the accounting group 149, 280 from the Public Defense Cost Recovery Unit 24 , 325 from Miscellaneous Properties for space costs already budgeted 265, 000 from County funds no longer requried to replace Special District Augmentation Fund financing for the cost of the new positions, _ additional office expense, and start-up cost for the automated system (see detail on Page 3) . $664 , 703 REASONS FOR THE RECOMMENDATION Currently, 19 County departments perform billing and/or collection activities and in nearly all cases there is no formalized program for enforcing the collection of delinquencies. This is resulting in duplicate efforts by several departments, duplicate contacts with some debtors, and lost revenues where civil remedies are not being pursued. Centralizing the existing efforts will: oAllow better use of automated billing and collection which will reduce duplicate effort and increase revenue. ePromote the development of greater collections expertise in an organization with a single focus. eImprove access to collection tools for which individual departments are not staffed or equipped. Finally, the County has an obligation to recover revenues properly owed, and to maximize the County' s financial ability to meet the needs of County residents. BACKGROUND The new Office of Revenue Collection will be a division of the Office of the County Administrator. Staffing will include the transfer of 11 permanent positions and 6 temporary employees from the Probation Department, plus the following 4 new positions: Director of Revenue Collection - This position will be responsible for formulating and implementing a comprehensive program of servicing and collecting both receivable and delinquent accounts of County departments, plus managing all activities of the centralized revenue collection agency. This position is recommended for exemption from the Merit System as a key management position responsible for a specialized function. Management Analyst III - This position will be responsible for conducting complex studies regarding the transfer of virtually every category of collectible revenue in the County from the various line departments to the Office of Revenue Collection. Those analyses will include evaluation of practices that will maximize County revenues . Secretary-Journey Level - This position will prepare reports, and correspondence, and provide other secretarial support to the Director and Analyst, plus assist with preparation of collection letters and legal documents such as court filings and wage attachments. 00154 r 3. Collection Services Assistant I - This position is being added to begin intensifying pursuit of civil remedies in the enforcement of delinquent collections. The new workload will include representing the County in obtaining small claims court judgments, and obtaining the information necessary to prepare property liens, wage attachments, and other civil actions. In summary, the initial staffing for the Office of Revenue Collection will be as follows: Existing Positions - Permanent 2 Collection Services Assistant II 1 Supervising Account Clerk 1 Account Clerk III 5 Account Clerk II 1 Account Clerk II P. I. 1 Clerk - Experienced Level 11 Existing Staff - Temporary 1 Collection Services Assistant I 3 Account Clerk I 1 Clerk - Experienced Level 1 Clerk - Beginning Level 6 New Positions - Permanent 1 Director of Revenue Collection 1 Management Analyst III 1 Secretary-Journey Level 1 Collection Services Assistant I 4 Total Staffing: 15 permanent positions and 6 temporary employees . Funding in the new Budget Unit 0026, Office of Revenue Collection, will be comprised as follows: $226 , 098 Transferred from the Probation Department, Budget Unit 0308, for the accounting staff who were transferred. * 149, 280 Transferred from the Probation Department, Budget Unit 0249 , for the Public Defense Cost Recovery Unit staff who were transferred. 24, 325 Transferred from Miscellaneous Properties, Budget Unit 0077, for the cost of space to be occupied by the new division in a County-owned building, the cost of which had been previously budgeted. 265, 000 Transferred County funds no longer required to replace Special District Augmentation Fund financing. This amount will finance new expenses for this function as follows: $110, 932 - New positions (salaries and benefits) . 129, 730 - Expenses to replace the current manual billing and collection system. 17, 000 - Remodeling of space necessary to combine the new function and staff all in one location. 7, 338 - Other forms, moving, equipment and operational expenses . $664, 703 2651000 00��5 4. The initial goals of the Office of Revenue Collection will be to acquire an automated billing and collection system, convert 11, 000 existing manual accounts to that system by individually entering information on each one, and to install procedures for obtaining court judgments and using other civil collection remedies. By May 30, 1985 staff will have prepared for the increased collection responsibilities which will be added immediately following the conversion of the 11, 000 existing accounts . Collectibles which will be handled immediately by the Office of Revenue Collection are as follows: ' Budgeted 1983-1984 1984-1985 Work Program User Fees --- $42, 230 Adult Diversion Fee $27,500 30, 000 Restitution Fee 7, 000 81000 Installment Fine Fee 55, 000 57, 000 Bad Check Fee 800 1, 000 Superior Court Fines - Adult 29, 000 30, 000 Superior Court Fines - Juvenile 40 ,000 42, 000 Public Defense Repayments 138, 000 155, 000 Municipal Court Fines 1, 192, 380 1, 255, 000 Subtotal to General Fund $1, 489 , 680 $1, 590, 230 Restitution to Crime Victims $252, 232 $270 , 000 Penalty Assessments Paid to State and Local Court Construction Funds 261, 669 581, 488 TOTAL $2, 003,581 $2, 441, 718 Following establishment of the Office of Revenue Collection, we will examine transferring collection of all or most County collectibles to the new office as soon as possible. A partial list of such collectibles includes: *Hospital bills . *Welfare overpayments and loans. *Fees for the cost of incarceration. *Mental health bills. *Bail bonds. *Parental obligation for juvenile public defense reimbursement. *Adult diversion program administrative fees. *Family court services. *Damage to County property. *Checks returned due to insufficient funds . *Overdue library books. As noted above, in all or most of these areas a formalized program for enforcing the collection of delinquencies is needed. Revenues will not be maximized during 1984-1985, the first year of the new Office of Revenue Collection, since the bulk of the remaining nine months will be spent developing systems and procedures, hiring and training staff, and spending several months manually entering the current information on the existing 11, 000 accounts. A mid-year progress report will be prepared to advise the Board of Supervisors of the status of efforts undertaken by this new function as well as revised revenue projections . During the 1985-1986 fiscal year it is expected that several thousand additional accounts will be transferred to the Office of Revenue Collection with resulting increases in revenues due to the application of intensified and more expert collection methods. The specific types of collectibles to be added and the order in which they are added will depend on the results of future analysis to be performed this year by the analyst position added for this purpose. 00lu6 5 . Other counties, including Alameda, Santa Clara, San Mateo, Sacramento, San Diego, and Fresno, have been very successful at recovering substantial additional revenues using the practices and techniques planned for the new Office of Revenue Collection. Those practices generally include: c0btaining signed reimbursement agreements wherein individuals promise to repay amounts due to the County, including interest charges and collection costs for delinquent bills . *Obtaining court judgments on amounts due which then provide the basis for wage attachments, filing liens against persons and property, and an interception of State income tax refunds . •More collection of court fines by civil measure which will reduce the level of County expenditures for the issuance and serving of bench warrants, making arrests, and processing defendants through the County' s detention facilities . In addition, we will continue to explore the possibility of further recover- ing County program costs in various ways including the installation of allowable fees and charges for services. 0 0 IL 5, 1 a � POSITION ADJUSTMENT REQUEST . " No. / 3 Date: 9/5/84 Dept. No./ Copers Department County Administrator Budget Unit No. 0026 Org. No. 0026 Agency No. Action Requested: Transfer persons and positions of Probation Dept. 0249 & 0308 to Count Administrator Dept. 0026/002 as listed: Collections Services Asst. II pos. #30-507 (40/40) & f37--5U87-32/40); Clerk-Ex . Level #30-254 (40/40— ; 5 Account Clerk II 's (40/40) #30-497 498 , 06; Account Clerk II P.I . 30-253; Account Proposed Effective Date: 10/1/84 er 0/40 #30-OOS and Supervising Account Clerk (40/40) 30-004. Explain why adjustment is needed: Classification Questionnaire attached: Yes No ' Estimated cost of adjustment: $ Cost is within department 's budget: Yes No [] If not within budget, use reverse side to explain how costs are to be funded. Department must initiate necessary appropriation adjustment. Use additional sheets for further explanations or comments. for Departmen e d Personnel Department Recommendation Date: September 5, 1984 Transfer persons and positions of Probation Dept. (0249 & 0308) to Office of the County Administrator (0026/0026) as listed: 2 Collections Services Assistant II Pos.#30-507 (40/40) & #30-508 (32/40), salary level C5 1138 (1418-1723); 1 Clerk-Experienced Level #30-254 (40/40), salary level C5 0964 (1191-1448); 6 Account Clerk II 's #30-497, 4989 007, 008, 006 (40/40) and 30-253 (P.I.), salary level C5 1080 (1338-1626); 1 Account Clerk III #30-005 (40/40), salary level C5 1175 (1471-1788); and 1 Supervising Account Clerk #30-004 (40/40), salary level C5 1267 (1613-1960) . Amend Resolution 71/17 establishing positions and resolutions allocating classes to the Basic/Exempt Salary Schedule, as described above. Effective: p day following Board action. 10/1/84 Date for Director Per onnel County Admini rator Recommendation Date: /G, pprove Recommendation of Director of Personnel D Disapprove Recommendation of Director of Personnel 00 15 13 Other: 71 7 or County Administra or Board of Supervisors Action ,t 1k Adjustment APPROVED on ^'--- "'--k Date: _�rT. 9 /f a'y By: ri APPROVAL OF THIS ADJUSTMENT CONSTITUTES A PERSONNEL/SALARY RESOLUTION AMENDMENT. M3a7 AM dl POSITION ADJUSTMENT REQUEST No. 3 RECEIVED Date: 9/11/84 PERSONNEL 0EPA9if4.4T Dept. No./ Copers. , Department County Administrator Budget Unit No. Z 0 Isin Agency No. Action Requested: Add (1) position of Collection Services Assistant I, (1) position of Secretary Dee class) , an osition of —Agit _".g_-4VA —Proped-Effective Date: _ 10/i/s4 Explain why adjustment is needed New positions needed for the Office of Revenue Collection. Classification Questionnaire attached: Yes No Estimated cost of adjustment: $ Cost is within department's budget: Yes 1D No If not within budget, use reverse side to explain how costs are to be funded. Department must initiate necessary appropriation adjustment. Use additional sheets for further explanations or comments. or) artmeAt Head Personne l"Department Recommendation Date: September 25, 1984 Classify 1 (40/40) Collection Services Assistant I position, salary level C5 1034 (1278-1553); 1 (40/40) Secretary-Journey Level , salary level T8 0943 (1257-1912) ; and 1 (40/40) Management Analyst IIT, :sal'ary level ,C5 1693 (2469-30.01): Amend Resolution 71/17 establishing positions and resolutions allocating classes to the Basic/Exempt Salary Schedule, as described above. Effective: p day following Board action. 10/1/84 Date for Director of r nnel County Ad"min" Recommendation Date: /0 • � '��/ Eff Approve Recommendation of Director of Personnel [3 Disapprove Recommendation of Director of Personnel ' 0 Other: ®� `''/111,;, `. -------------- for County Administrator xkz� f`L` , Board of Supervisors Action < ,,,,� AdjustmentAPPROVED/ n 0-&� y /y ry Date: ��c 1�.� 9r 19�f� By: r APPROVAL OF THIS ADJUSTMENT CONSTITUTES A PERSONNEL/SALARY RESOLUTION AMENDMENT. M347 6/82