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HomeMy WebLinkAboutMINUTES - 11041986 - 2.1 �2I p TO BOARD OF SUPERVISORS n �,+ FRCMY=. ,-All Batchelor, Contra I ra County Administrator Costa DATE: October 28, 1986 Coifty ti SUBJECT:FIRST QUARTER BUDGET REPORT FOR FISCAL YEAR 1986-87 SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION• 1. Accept this report and direct the County Administrator to continue to monitor the budget and implement corrective plans where merited. 2. Approve and authorize funding from the Productivity Investment Fund for the following three programs: Superior and Municipal Court Jury Management - $68,431 Contra Costa Health Plan Utilization Monitoring - $16,000 Personal Computer Based Timekeeping System (Data Processing) - $35, 000 BACKGROUND: For each of the past eight quarters, the County Administrator' s Office has prepared a report which analyzes the status of the budget and highlights the budget units which deviate from the budget plan in terms of expendi- tures and revenues. Actions which are necessary to ensure a healthy budget by the end of the fiscal year are recommended as part of the quarterly reporting process. Other items which have major fiscal impacts are also reviewed as part of this periodic report. The aim of the first quarter report is to identify potential financial problems and initiate actions to correct these problems. Thus, to a large extent, this report sets the budget monitoring agenda for the remainder of the fiscal year. In contrast, subsequent quarter reports will define the magnitude of the problems and discuss the progress in problem resolution. Departments or budget units which have been identified as requiring close scrutiny during the second quarter are the Health Services Department and the General Assistance Budget Unit of the Social Services Department. Attachment A contains a discussion of those budgets which deviated in expenditures or revenues more than a given percentage from a straight line projection. Many of the deviations from the budget plan were caused by delays in transferring revenues or charging expenditures among the Depart- ments and between the County and State and Federal government. These items are noted in the attachment but are not expected to materially affect the budget. CONTINUED ON ATTACHMENT; -Z YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OV BOARD COMMITTEE , APPROVE OTHER SIGNATUREISI: ACTION OF BOARD ON November 4, 1986 APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS (ABSENT AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. CC: County Administrator ATTESTED _ �fJ l9ff4 PHIL BATCHELOR, CLERK OF THE BOARD OF SUUPER. ADMINIS VISORS AND COUNTY TRATOR BY � M38217-83 L��lJ DEPUTY Over al.1, this first review indicates a "tight" budget, since many budget units are very close to the budgeted amounts. Health Services At the Budget Hearings in August, the Health Services Department predicted a budget deficit of between $1. 5 million to $4 million by the end of the 1986-1987 fiscal year, unless corrective action was taken. As a result, the Board took the following two actions: 1. Appropriated an additional $1. 6 million, most of which was to be held in a reserve account to cover potential deficits; and 2. Approved a Health Services Department budget plan of revenue enhancements and expenditure reductions to minimize the risk of a deficit. The first quarter review by the department projects a year-end deficit of $622,000 . Contained within this anticipated deficit are the following major assumptions: Detention Facility contract savings 'of $150,000 will not materialize during the 1986-1987 fiscal period. State Hospital charges will exceed budget by $80,000. Enterprise Fund I capital expenditures will exceed budget by $95,000 . Medically Indigent Adult funding of $500,000 will be restored effective January 1987 . Health Plan open enrollment will generate $150,000 in net revenue. Medi-Cal contract negotiations will generate $100,000 in new revenue. Details concerning these assumptions are contained in the enclosed report. During the second quarter, staffs from the Administrator' s Office and the Health Services Department will be reviewing alternative actions which may be taken to resolve the projected deficit. The objective of these efforts will be to resolve the deficit while avoiding detrimental impacts on the provision of medical care. Productivity Investment Fund Last fiscal year, your Board approved the concept of the Productivity Invest Fund (PIF) and allocated $100,000 to finance productivity projects. The PIF was established to stimulate County managers to explore ways to improve the efficiency and effectiveness of their operations. The board' s recent emphasis on the County' s commitment to improve productivity reflects the current financial crises facing most California counties. County departments are being asked to do more with the same or fewer resources. The PIF is an important new addition to the County' s productivity program. It permits managers to pursue innovative productivity improvement projects which might otherwise not be funded. These projects should result in benefits that managers can use in operating their budgets. The Productivity Investment fund acts as a revolving account. Funds are withdrawn from the account for productivity programs and repaid according to a payback schedule as dollar benefits are realized. At your Board' s direction, a committee was established to design and implement the PIF. This committee is called the Productivity Investment Board and consists of the following five members, selected by the County Administrator, and one staff member: -2- �. productivity Investment Board Tony Enea, Chair CAO George Roemer CAO Lorna Bastian Health Services Gerald Mitosinka Sheriff Elena Hopkins Social Services Julie DiMaggio, Staff CAO Starting in April, the Productivity Investment Board (PIB) met on five occasions. This Board developed procedures and established criteria to be used in evaluating department proposals. Information packets including a request for proposals were sent to departments on July 10. By August 29, six proposals were received. The PIB reviewed the proposals and conducted half-hour interviews with each of the applicants. Proposals were evaluated according to criteria established at the beginning of the process and funding is recommended for three projects that are consistent with the mission of the PIF. The allocation of $100, 000 was not sufficient to fund all three proposals to the extent requested. Therefore, it is recommended by the Productivity Investment Board that $19,431 of additional funds requested for the Super- ior Court Jury Management System be provided from the payback of that particular proposal. Copies of the three proposals for which funding is recommended are included as Attachment B. Department representatives have been invited to the Board meeting to comment on their proposals. -3- i ATTACHMENT A 1986-87 FIRST QUARTER BUDGET STATUS REPORT General Fund * Budget Unit 0001 - Board of Supervisors EXPENDITURES: Budgeted: $929,464 Percent Expended: 37% Expenditures are high because of a very large one time expendi- ture for the Board' s memberships at the beginning of the fiscal year. Also, expenditures for Professional and Specialized Services are not expected to continue at the present rate. REVENUES: Budgeted: $3 , 500 Percent Received: 9% Historically, revenues do not materialize uniformly in this budget unit. The budgeted amount is expected by the end of this fiscal year. * Budget Unit 0003 - County Administrator REVENUES: Budgeted: $1,927, 663 Percent Received: . 2% The low amount of revenue received to date is due to the fact that charges have not been made to departments and agencies for services provided by the office. Charges for services provided by the office are made on a quarterly basis. Accordingly, revenues lag behind by one quarter. It is anticipated that the budgeted revenues will be realized by the end of the year. * Budget Unit 0005 - Revenue - General County REVENUES: Budgeted: $163, 328,445 Percent Received: 55% Revenues appear high because nearly all of the expected property tax revenues are credited by the Auditor in the first quarter, even though the revenue is not received until the second and third quarters. * Budget Unit 0015 - Treasurer-Tax Collector REVENUES: Budgeted: $392,756 Percent Received: 3% Revenues are low because credits have not yet been made for commission for tax and assessment collections. In addition, the department has recently established a charging system for making special investments. Revenues from the) first quarter charges have not yet been realized. -4- ATTACHMENT A „ 1986-87 FIRST QUARTER BUDGET STATUS REPORT * Budget Unit 0016 - Assessor REVENUES: Budgeted: $57,650 Percent Received: 14% Although revenues appear to be low, they are actually being realized very close to the level expected for the first quarter. Revenues of approximately $15, 000 are anticipated during the third quarter from the sale of maps to two large real estate firms. The department is expected to realize all budgeted revenues by the end of the year. * Budget Unit 0020 - Purchasing REVENUES: Budgeted: $129,520 Percent Received: 20% Charges to other departments are one month behind at this time. Budgeted revenue should be received by the end of the fiscal year. * Budget Unit 0025 - Management Information Systems EXPENDITURES: Budgeted: $958, 501 Percent Expended: 6% Expenditures from this budget appear to be low because charges for the recently purchased MIS equipment have not yet been made. In addition, monies from the Productivity Investment Fund, contained in this budget unit, have not been distributed pending action by the Board of Supervisors. * Budget Unit 0026 - Office of Revenue Collection REVENUES: Budgeted: $344,131 Percent Received: 21% Revenues were budgeted assuming the automated system would be operational by August 1. However, the system is just becoming .operational. It is possible that the unrealized revenue may be made up as accounts get converted into the system. * Budget Unit 0030 - County Counsel REVENUES: Budgeted: $434,806 Percent Received: 19% The slightly low realization rate is due primarily to a predic- table revenue pattern. Revenues are typically behind the budgeted amount until the fourth quarter, when a budgeted lump of revenues are transferred in from the fire districts. It is• usually during the fourth quarter that revenues for this depart- ment "catch up" to the budgeted amount. -5- ATTACHMENT A 1986-87 FIRST QUARTER BUDGET STATUS REPORT * Budget Unit 0035 - Personnel REVENUES: Budgeted: $1,257,759 Percent Received: 38% Additional revenue .has been generated by activity of four staff members working in the Workers' Compensation area, which was not budgeted. Their time is charged to an outside fund. * Budget Unit 0043 - Elections REVENUES: Budgeted: $236, 595 Percent Received: 7% Revenue receipts are well under budget because service fees collected from candidates and the cities for the November election will not be received until the second quarter of this fiscal year. * Budget Unit 0060 - Communications REVENUES: Budgeted: $317 ,940 Percent Received: 20% Financial reports do not show late billings for services to cities. Receipt of those charges should bring this budget unit in line with budgeted amounts. * Budget Unit 0062 - Fleet Management EXPENDITURES: Budgeted: $14,168 Percent Expended: -28% Expenditure transfers are overstated at this time which distort the net cost. Future adjustments will correct this. Gross expenditures are in line with expectations. REVENUES: Budgeted: $2,600 Percent Received: 66% Revenue is being received earlier and in greater amounts than anticipated. * Budget Unit 0063 - Fleet Operations EXPENDITURES: Budgeted: $982,043 Percent Expended: 48% Expenditures are indicated as running ahead of a straight line projection. This is due to understated expenditure transfers, as well as half of the fixed asset account being expended for the purchase of replacement vehicles. REVENUES: Budgeted: $181,500 Percent Received: 9% Revenue receipts are lagging due to an unclaimed State grant. Receipt of these funds will allow this budget unit to more closely match the budgeted amount. -6- ATTACHMENT A 1986-87 FIRST QUARTER BUDGET STATUS REPORT * Budget Unit 0077 - Miscellaneous Property REVENUES: Budgeted: $701,440 Percent Received: 18% Revenues are low due to certain uncharged occupancy costs. Also, budgeted revenue from the S.P. Right of Way account is not claimed until the end of the fiscal year. * Budget Unit 0079 - Building Maintenance EXPENDITURES: Budgeted: $3 ,319,112 Percent Expended: 48% This overexpenditure results from the necessity of paying rents one month in advance. Also, twice yearly bond payments were made in this quarter. REVENUES: Budgeted: $3, 267, 910 Percent Received: 23% Both uncharged labor costs, and a lower level of work for Enter- prise Fund departments account for this underrealization. Budgeted revenue should materialize by the end of the fiscal year. * Budget Unit 0111 - Plant Acquisition EXPENDITURES: Budgeted: $24,035,571 Percent Expended: 3% Expenditures are dependent upon project activity. Many projects are not yet in the construction phase so total expenditures are low. Activity is expected to pick up as the year progresses. REVENUES: Budgeted: $298,508 Percent Received: 2% Revenues are also dependent upon project activity. * Budget Unit 0135 - Economic Development EXPENDITURES: Budgeted: $76,000 Percent Expended: 0 No funds have been expended this fiscal year pending a long-term agreement currently being considered by the Concord Convention and Visitors Bureau. It is anticipated that all budgeted funds will be expended this fiscal year. * Budget Unit 0145 - Employee Benefits EXPENDITURES: Budgeted: $179,730 Percent Expended: 0 This budget unit contains funds to pick up the no-employee-share provision of the County' s Health Plan, and funds for additional uniforms and equipment necessary for the Marshal' s Office. Charges will be made to this budget unit once actual costs for these items are known. -7- ATTACHMENT A 1986-87 FIRST QUARTER BUDGET STATUS REPORT * Budget Unit 0146 - Retiree Health Benefits REVENUES: Budgeted: $12, 000 Percent Received: 15% Revenues in this budget consist of retirees ' share of premiums. The amount of revenues realized is lower than expected at this time but is expected to increase to the budgeted level by the end of the fiscal year. * Budget Unit 0147 - Data Processing Services EXPENDITURES: Budgeted: $323, 600 Percent Expended: 52% Expenditures appear to be high because they include one-time expenses occurring in the first quarter only and several fourth month payments on equipment leases. In addition, charges for activity during the first quarter have not yet been fully recovered. It is anticipated that activity which is charged out to user departments will be within budgeted amounts by the end of the fiscal year. REVENUES: Budgeted: $296,698 Percent Received: 16 . 2% Revenues appear to be low because most of the first quarter activity was directed to general fund departments which are charged through expenditure transfers. * Budget Unit 0148 - Central Service/Microfilm EXPENDITURES: Budgeted: $254,014 Percent Expended: 37% Payment of yearly maintenance contracts and a large purchase of microfilm are one-time costs which have driven expenditures beyond a straight line projection. REVENUES: Budgeted: $81, 321 Percent Received: 38% Greater than anticipated volume as well as a large sale of paper to the City of Concord have increased revenue beyond budget expectations. * Budget Unit 0150 - Insurance EXPENDITURES: Budgeted: $4, 214,863 Percent Expended: 9% Funds budgeted in this account will be transferred to the Liability Trust Fund during the year except for expenses charged to the insurance program. These transfers have not yet occurred for 1986-1987 . -8- ATTACHMENT A 1986-87 FIRST QUARTER BUDGET STATUS REPORT * Budget Unit 0161 - Survey Monument Preservation EXPENDITURES: Budgeted: $46,476 Percent Expended: 0 Funds in this budget unit are used to maintain major historical land division lines. Expenditure levels depend on amount of survey work. Given the emphasis by Public Works on road main- tenance and operation, no labor has been expended for this function. * Budget Unit 0211 - Bay Municipal Court EXPENDITURES: Budgeted: $2,737, 066 Percent Expended: 26% The court' s temporary salary and travel accounts are overspent because the cost of using assigned judges during the long absence of a regular judge exceeded the budget. These expenditures will end when a new permanent judge selected. * Budget Unit 0214 - Walnut Creek - Danville Municipal Court REVENUES: Budgeted: $1, 536, 860 Percent Received: 24% The department' s total revenue receipts are slightly under budget because vehicle code fines and night court assessments are lower than expected. These revenues should be fully realized by year end. * Budget Unit 0215 - Delta Municipal Court REVENUES: Budgeted: $636,350 Percent Received: 23% The department' s total revenue receipts are slightly under budget primarily because Failure-to-Appear fines are lower than expected. This revenue should be fully realized by the end of the fiscal year. * Budget Unit 0231 - Change of Venue Trials in County EXPENDITURES: Budgeted: $20,000 Percent Expended: 97% The cost of the change of venue case is exceeding expectations because the trial is taking longer than originally anticipated. An appropriation adjustment has been approved to cover the increased cost, which will totally be charged out to the origin- ating county. REVENUES: Budgeted: $20,000 Percent Received: 0 Costs have not yet been billed to Solano County for the change of venue case. Solano County will be billed after the trial ends, probably within a month. Revenue is expected to be realized by the end of the fiscal year. -9- ATTACHMENT A 1986-87 FIRST QUARTER BUDGET STATUS REPORT * Budget Unit 0235 - Law & Justice Systems Development EXPENDITURES: Budgeted: $496, 224 Percent Expended: 13% Expenditures are understated because data processing development planned for the District Attorney is not yet underway. Equipment budgeted for the District Attorney and the municipal courts will be purchased later in the fiscal year. * Budget Unit 0238 - Grand Jury EXPENDITURES: Budgeted: $71,700 Percent Expended: 390 Expenditures are overstated because the Grand Jury pays a large portion of the County audit expenses early in the fiscal year. * Budget Unit 0242 - District Attorney REVENUES: Budgeted: $1,129,831 Percent Received: 170 Revenues are understated because of the lag time in reimbursement from two State grants. Also, reimbursement from State Subvention Program funds are credited quarterly. These revenues are expected to be fully realized by year end. * Budget Unit 0243 - Public Defender REVENUES: Budgeted: $84,978 Percent Received: 3% Revenue is understated because the quarterly reimbursement from State Subvention Program funds has not yet been credited. It is expected that all revenue from this source will be fully realized by year end. * Budget Unit 0245 - DA - Family Support Program REVENUES: Budgeted: $4,157 ,850 Percent Received: 5% Revenue from partial Federal reimbursement of administrative costs has not been applied yet. Incentive fund revenues, reported monthly, are received from the State after a variable lag time. These revenues are reflected in subsequent quarters budget statement. * Budget Unit 0248 - Conflict Defense Services EXPENDITURES: Budgeted: $1, 320,000 Percent Expended: 28% Expenditures are slightly overstated since advances to the Bar Association are included. Actual expenditures for the first quarter are somewhat less. -10- ATTACHMENT A 1986-87 FIRST QUARTER BUDGET STATUS REPORT * Budget Unit 0255 - Sheriff REVENUES: Budgeted: $6,925,040 Percent Received: 13% Revenue is understated since many major accounts are received after expenditures are made and claimed. Budgeted revenue is expected to be realized. * Budget Unit 0257 - Delta Regional Communications Center REVENUES: Budgeted: $887 ,965 Percent Received: 0 Participating cities and fire districts are billed quarterly. First quarter expenditures will be reimbursed and credited as revenue in the second quarter. All budgeted revenue is expected to be realized by the close of the fiscal year. * Budget Unit 0266 - Marshal - Municipal Courts EXPENDITURES: Budgeted: $2,138,830 Percent Expended: 26% The services and supplies account is slightly overspent after the first quarter due to a major purchase of yearly office supplies. The department expects these expenditures to be within the budget during the rest of the fiscal year. REVENUES: Budgeted: $334,520 Percent Received: 21% The department' s revenue receipts from civil process fees are below expectations because some of the field deputies served as vacation relief bailiffs. This temporary duty during the Summer months reduced the number of hours the deputies spent in the field serving process papers. Even with a low first quarter, the Marshal expects to collect all budgeted revenue by the end of the year. * Budget Unit 0301 - Health Services Detention Inmates REVENUES: Budgeted: $151, 643 Percent Received: 0 Budgeted revenues are from State Aid for Justice Systems (AB 90) which will be distributed in the second quarter. It is antici- pated that the budgeted revenues amount will be realized by the end of the fiscal year. * Budget Unit 0308 - Probation REVENUES: Budgeted: $2,016,712 Percent Received: 18% The department' s total revenue receipts are understated because quarterly reimbursements from State subvention funds have not been credited. It is expected that all revenue from this source will be fully realized. -11- ATTACHMENT A 1986-87 FIRST QUARTER BUDGET STATUS REPORT * Budget Unit 0325 - Justice System Programs EXPENDITURES: Budgeted: $185,160 Percent Expended: 9% This budget unit consists of three contracts which are paid through demands. This causes delays in entering expenditures into the finance system. Expenditures are being made in a relatively straight line manner, which will result in the alloca- tion being fully utilized. REVENUES: Budgeted: $147 ,650 Percent Received: 0 This consists entirely of State AB 90 funds which are not credited until expenditures are made. State payments are made quarterly, however, in advance, and held in trust by the County Auditor-Controller. Revenues are, thus, understated but will be fully realized by June 30, 1987 . * Budget Unit 0330 - Flood Control EXPENDITURES: Budgeted: $435,636 Percent Expended: 41% Part of this budget unit' s expenditures are for the cost of service contracts and construction related to the maintenance and repair of flood control facilities. Due to the severity of last Winter' s storms, several major projects were started to correct flood control problems. It is fully anticipated that expendi- tures will be in line with the budgeted amount by mid-year. * Budget Unit 0335 - Agriculture - Weights and Measures REVENUES: Budgeted: $698, 012 Percent Received: 20% Most of the department' s revenue comes from State reimbursements. The reimbursement schedule for the State contracts vary. For example, the State reimburses on a monthly basis for one major contract. However, there is an approximately 60 day reimburse- ment lag. In two other major contracts, lump sum reimbursements are received in May of each year. Therefore, revenues will continue to appear understated for a majority of the fiscal year. * Budget Unit 0347 - Land Information System REVENUES: Budgeted: $19, 200 Percent Received: 0 Revenue is received from several cities connected to the Land Information System. The cities are charged quarterly by Data Processing. Therefore, reporting of revenues are a quarter behind. These budgeted revenues will be realized during the year as these cities' contract payments are made. -12- ATTACHMENT A 1986-87 FIRST QUARTER BUDGET STATUS REPORT * Budget Unit 0356 - Local Agency Formation Commission EXPENDITURES: Budgeted: $176, 091 Percent Expended: 3% The bulk of the expenses for this budget unit are charged from various County departments. To date County departments have not made charges to the Local Agency Formation Commission for services provided. It is anticipated that charges from County departments will equal the budgeted amount by the end of the fiscal year. REVENUES: Budgeted: $25,450 Percent Received: 57% Revenues for this department come from filing fees for applica- tions to create new governmental entities or modify the boundaries of existing agencies. Application fees for the first quarter of the year have exceeded expectations. Revenues materialize in a highly unpredictable manner, however, they will probably exceed the budgeted amount. * Budget Unit 0357 - Community Development REVENUES: Budgeted: $1,771,970 Percent Received: 35% Overexpenditure for the first quarter is due to charges to other departments not yet reflected in overall budget. Charges for services provided on behalf of other departments or agencies will be brought into line as the year progresses. * Budget Unit 0358 - Planning Projects EXPENDITURES: Budgeted: $250, 000 Percent Expended: 10% Revenues for this budget unit are dictated by the volume of environmental impact reports prepared. The number of EIR' s are slightly less than expected but given projected developer' s needs, revenues will increase to the budgeted level by mid year. REVENUES: Budgeted: $705,077 Percent Received: 12% Budget unit included funds for preparation of environmental impact reports. To date, lower expenditures reflect small volume of completed EIR' s. Completion of outstanding EIR' s will cause expenditures to increase to budgeted levels. * Budget Unit 0359 - Coroner REVENUES: Budgeted: $10, 000 Percent Received: 15% Autopsy fees are dependent upon activity which is not regular throughout the year. -13- ATTACHMENT A 1986-87 FIRST QUARTER BUDGET STATUS REPORT * Budget Unit 0360 - Crossing Guards EXPENDITURES: Budgeted: $67,095 Percent Expended: 45% This budget unit provides for the cost of crossing guards at four busy intersections in the County. Contracts have been esta- blished with four school districts. Reimbursement to the dis- tricts for the program are made at the end of the year. However, due to the school district lag in processing their demands to the County, prior year carryovers have caused expenditure levels to be higher than anticipated. * Budget Unit 0361 - Franchise/Energy Administration REVENUES: Budgeted: $50,432 Percent Received: 0 Revenues are grants from outside agencies. The revenue amounts for this quarter have not yet been transferred in, however, it is anticipated that the budgeted amount will be realized by the end of the fiscal year. * Budget Unit 0362 - Emergency Services EXPENDITURES: Budgeted $584,834 Percent Expended: 31% Expenditures are running ahead of a straight line projection primarily because of a large one-time transfer to another depart- ment for communications services. This, combined with some salary savings due to a vacant position, means that this budget unit should come in line with the budgeted amount by the end of the year. REVENUES: Budgeted: $241, 257 Percent Received: 1% Revenues have not materialized in a timely manner. Federal funds are expected shortly as well as reimbursements for services to contract cities. * Budget Unit 0364 - Public Administrator REVENUES: Budgeted: $23,263 Percent Received: 46% Revenue is high because some large estates were settled early in the fiscal year. -14- ATTACHMENT A 1986-87 FIRST QUARTER BUDGET STATUS REPORT * Budget Unit 0367 - Game Protection EXPENDITURES: Budgeted: $30,682 Percent Expended: . 3% The use of this fund is restricted to the propagation and conser- vation of fish and game in the County and for educational and youth activities in relation to fish and game. An amount of $5, 000 will be donated to the Alexander Lindsay Junior Museum for its wildlife rescue program and some or all of the remaining funds will support the Sheriff ' s Marine Patrol in the enforcement of fish and game laws. * Budget Unit 0450 - Health Services - Public Health REVENUES: Budgeted: $4, 320,962 Percent Received: 10 . 6% Revenues for this budget unit cannot be projected on a monthly straight line method since a large portion of revenues are attributable to State revenues, the majority of which are received on a quarterly basis. * Budget Unit 0452 - Health Services - Environmental Health EXPENDITURES: Budgeted: $1,845,641 Percent Expended: 27 . 4% This budget is slightly over-expended in the area of services and supplies. However, these expenditures are almost completely offset due to salary savings resulting from unanticipated vacancies. REVENUES: Budgeted: $924,000 Percent Received: 9. 4% Revenues for this budget unit cannot be projected on a straight line basis since over 85% of the revenues are from permits and licenses, due in March and April. It is anticipated that the budgeted revenues will be realized by the end of the fiscal year. * Budget Unit 0453 - Toxic Waste Spill Cleanup EXPENDITURES: Budgeted: 0 Percent Expended: 100+% Since it is not feasible to predetermine the amount of funds required for toxic waste spill cleanup, no specific 1986-1987 appropriation was approved. The funds expended represent the County costs incurred to date for toxic waste spill cleanup. Identified parties responsible for the toxic waste spills are required to reimburse the County for incurred costs. However, there is a lag time between the cleanup, identification of responsible parties, invoicing and actual receipt of reimbursement. In the event no responsible party is identified, the cleanup remains a County cost. -15- ATTACHMENT A 1986-87 FIRST QUARTER BUDGET STATUS REPORT * Budget Unit 0460 - Health Services - California Children Services REVENUES: Budgeted: $1, 670,377 Percent Received: . 2% Revenues for this budget unit cannot be projected on a straight line basis since over 95% of the revenues are attributable to State reimbursement submitted to the State on a quarterly basis. It is anticipated that first quarter claims will be invoiced this month. * Budget Unit 0470 - Health Services - State Hospital EXPENDITURES: Budgeted: $750, 000 Percent Expended: 0 Expenditures for the current fiscal year are not yet reflected in this budget unit. The Health Services Department does anticipate a possible deficit caused by increased State expenditures for which the County is liable for 15% share. * Budget Unit 0473 - Solid Waste Management EXPENDITURES: Budgeted: $176,624 Percent Expended: 16% This budget unit provides for the cost of staff time devoted to Solid Waste Management and related programs such as waste-to- energy and recycling. The low expenditure level reflects charges not being made as devoted to the above issue. This situation will change during the year as accumulated staff costs are charged to this budget unit. * Budget Unit 0500 - Social Service REVENUES: Budgeted: $25,363 ,752 Percent Received: 7% Revenues for this budget unit are below the budget plan because the State and Federal governments have been slow in processing and releasing funds. This lag period is normally three to six months. * Budget Unit 0515 - Categorical Aid Programs EXPENDITURES: Budgeted: $84,635,935 Percent Expended: 32% Expenditures in this budget unit are case driven and the number of persons requesting aid has exceeded department estimates. For example, AFDC caseload is 131 above budgeted levels. Approxi- mately 4% of the cost of this budget unit is borne by the County. * Budget Unit 0532 - General Assistance - General Fund EXPENDITURES: Budgeted: $4,662,000 Percent Expended: 34% Expenditures are exceeding budget plans because the caseload is averaging 200 persons over the caseload which was budgeted. -16- ATTACHMENT A 1986-87 FIRST QUARTER BUDGET STATUS REPORT * Budget Unit 0583 - Private Industry Council EXPENDITURES: Budgeted: $4,773 ,237 Percent Expended: 31% Expenditures in this budget unit do not occur on a straight line basis throughout the year. Although the department has expended 31% of its budget, expenditures are actually below the level estimated by the department. It is anticipated that expenditures will be in line with the budget allocation by the end of the fiscal year. REVENUES: Budgeted: $4,758, 201 Percent Received: 22% Revenues are based on reimbursement from the State after expenses are incurred and submitted. Consequently, the department operates with a built in lag time between expenditures and the receipt of revenues. * Budget Unit 0588 - Community Services REVENUES: Budgeted: $2,284,381 Percent Received: 21% Although the revenues are lower than the straight line projection level, revenues received to data are consistent with expenditure levels. It is anticipated that revenues will increase as expen- diture levels increase. * Budget Unit 0590 - Community Development EXPENDITURES: Budgeted: $406,176 Percent Expended: 90. 5% Revenue is consist of federal funds which are drawn down against a federal letter of credit. A substantial encumbrance exists for administrative charges for Community Development Block Grants. The administrative costs are cost applied to the federal credit and will diminish on a month-to-month basis. REVENUES: Budgeted: $406, 176 Percent Received: 7% This budget unit consists entirely of federal funds received from the U.S. Department of Housing and Urban Development for adminis- trative costs related to community development and housing assistance activities. Prior year committed funds from HUD have yet to be released. * Budget Unit 0591 - Housing Rehabilitation EXPENDITURES: Budgeted: $855,200 Percent Expended: 7% This budget unit provides for the Housing Rehabilitation Program administered by the Building Inspection Department and is financed with Community Development Block Grant Funds. Activity levels in this unit are running below anticipated levels. However, by mid year the demand for services should have increased to projected levels. -17- ATTACHMENT A 1986-87 FIRST QUARTER BUDGET STATUS REPORT * Budget Unit 0696 - Pleasant Hill - BART Transit Planning EXPENDITURES: Budgeted: $300,000 Percent Expended: 20 Expenditures are dependent upon project activity. There has been a temporary delay in planning activities for this project but expenditures are expected to increase by the end of the year. * Budget Unit 0701 - Parks Administration EXPENDITURES: Budgeted: $108,496 Percent Expended: 0 This budget unit serves to accumulate funds until sufficient funds are available to build a playground park. Expenses usually not exceeding $500 per year may be incurred for services provided by the Community Development Department. REVENUES: Budgeted: $10,500 Percent Received: 59% This budget unit is funded with dedicated revenue from off- highway vehicle registration fees. Revenues are collected twice each year in July and January. There has been an upward trend in receipt of these revenues over the past several years. * Budget Unit 0712 - Small Parks EXPENDITURES: Budgeted: $5,000 Percent Expended: 0 Expenditures for this budget unit are for any additional minor reconstruction items for an Oakley area park. As projects are identified, further expenditures may be made. NON-GENERAL * Budget Unit 0007 - Federal Revenue Sharing REVENUES: Budgeted: $775,000 Percent Received: 95.7% In early October, the County received its final revenue sharing payment, which was slightly less than the amount budgeted. No further revenues are expected due to the termination of this program. -18- ATTACHMENT A 1986-87 FIRST QUARTER BUDGET STATUS REPORT * Budget Unit 0008 - Revenue County Library Taxes REVENUES: Budgeted: $6, 379 , 653 Percent Received: 64% The receipt of revenues for this budget unit appears to be ahead of expectations. However, the amount received to date reflects the fact that the largest single element of property tax revenues has been credited to the Library. The other elements of the property tax revenues will be credited throughout the County as they are realized. Property tax revenues are not subject to straight line projections. It is anticipated that the budgeted revenues will be realized by the end of the year. * Budget Unit 0113 - Plant Acquisition - Library Fund EXPENDITURES: Budgeted: $35, 202 Percent Expended: 3% Expenditures are dependent upon project activity. As yet, there are charges only for planning and design. Expenditures will reach the appropriation level as the project proceeds. * Budget Unit 0119 - Criminal Justice Facility Construction EXPENDITURES: Budgeted: $1,954,232 Percent Expended: 8% Expenditures are dependent upon jail planning and design activity which will increase later in the fiscal year. * Budget Unit 0120 - Plant Acquisition - San Crainte Drainage Fund EXPENDITURES: Budgeted: $54,308 Percent Expended: 0 Expenditures are dependent upon project activity. This project has not been started yet but is expected to be fully expended by the end of the year. REVENUES: Budgeted: $7 ,000 Percent Received: 85% Revenues are derived from drainage acreage fees charged to developers and from interest earnings on the fund balance. Revenues, therefore, are partially dependent upon construction activity, which has been high thus far. * Budget Unit 0122 - Courthouse Construction EXPENDITURES: Budgeted: $1, 269,401 Percent Expended: 14% Expenditures are dependent upon project activity for the Superior Court Annex. Since the project is still in the early construc- tion stage, less than a straight line expenditure is normal for this time of year. -19- ATTACHMENT A 1986-87 FIRST QUARTER BUDGET STATUS REPORT * Budget Unit 0122 - Courthouse Construction (Continued) REVENUES: Budgeted: $600,000 Percent Received: 17% Revenues are less than expected. Revenues are derived from a surcharge on court fines, which are less than estimates used in planning the 1986-1987 budget. The funds are restricted for courthouse construction only. * Budget Unit 0124 - East County Airport Capital Project EXPENDITURES: Budgeted: $7 ,000 Percent Expended: 0 Funds budgeted in this account are to be used to install a wind monitor at the adopted airport site. Funds will be expended when the project is completed. REVENUES: Budgeted: $7,000 Percent Received: 0 Revenue will be realized upon completion of the project and costs are claimed. • * Budget Unit 0125 - Buchanan Airport Improvement Project EXPENDITURES: Budgeted: $2,142,200 Percent Expended: 13 Expenditures are dependent upon project activity. Since the airport projects are still in the development stages, it is normal to have low expenditures during the early part of the year. REVENUES: Budgeted: $2,142,200 Percent Received: 0 Revenue will be realized after the projects are completed and the costs can be claimed. * Budget Unit 0236 - Court Records Automation EXPENDITURES: Budgeted: $45,049 Percent Expended: 0 This budget unit was created from an additional $1 civil filing fee authorized by the Board for collection January 1, 1984. Funds have been accumulating since that time for an automated civil system in the municipal courts. Expenditures may be made later in the fiscal year. * Budget Unit 0237 - Clerk Records Automation EXPENDITURES: Budgeted: $39,222 Percent Expended: 44% Expenditures are high because a prior year encumbrance for some equipment was paid out first quarter. -20- ATTACHMENT A 1986-87 FIRST QUARTER BUDGET STATUS REPORT * Budget Unit 0256 - Controlled Substance Analysis EXPENDITURES: Budgeted: $16,617 Percent Expended: 0 This program is supported entirely by fines from Health and Safety Code Section 11372. 5 convictions ( substance abuse) . Monies may only be used for training of criminalists and equip- ment in the Crime Laboratory. Expenditures are not regular throughout the year, but the allocation is expected to be utilized. REVENUES: Budgeted: $9, 500 Percent Received: 21% Revenue varies due to fines collected. Expenditures are con- trolled to prevent from exceeding the revenue. * Budget Unit 0353 - Recorder Micrographics/Modernization EXPENDITURES: Budgeted: $686,902 Percent Expended: 36% The budget statement used for this quarterly report is misleading since it includes a large expenditure of encumbered 1985-1986 funds for enhancements to the County Clerk' s computer system. All expenditures of current year funds are within budget. REVENUES: Budgeted: $516,500 Percent Received: 43% Revenue from the Recorder' s service fees are exceeding budget expectations due to the current high level of activity in home sales and refinancing of home mortgages. The County Recorder collects a fee for processing the required legal documents on these transactions. * Budget Unit 0585 - Domestic Violence Assistance EXPENDITURES: Budgeted: $80,750 Percent Expended: 29% Expenditures appear high because payments for four months of service have already been paid to Battered Women' s Alternatives under contract with the District Attorney' s Office. * Budget Unit 0620 - County Library - Library Fund REVENUES: Budgeted: $572,053 Percent Received: 14% The variance in revenues is due primarily to a lag in grant receipts. The Library revenues are very predictable and reli- able. It is anticipated that the budgeted revenues will be realized by the 'end of the year. -21- ATTACHMENT A 1986-87 FIRST QUARTER BUDGET STATUS REPORT * Budget Unit 0662 - Road Construction - Road Fund REVENUES: Budgeted: $6, 620,859 Percent Received: 0 Claims for construction projects made against federal and state grants are the source of funds for this budget unit. Due to the delay of funds being released, no monies have been deposited. It is fully expected that this source of revenue will increase as the year progresses. * Budget Unit 0673 - Delta Ferry Subsidy - Road Fund EXPENDITURES: Budgeted: $100,000 Percent Expended: 0 For the 1986-1987 fiscal year no payments have been made to the contractor operating the Delta Ferry service. Additionally, negotiations are taking place on the County contribution to this operation which may require an adjustment in this budget unit' s expenditure level. REVENUES: Budgeted: $43 ,500 Percent Received: 0 Revenues for this budget unit consists of County property taxes collected within the M-7 Service Area. Such tax revenues are not credited to this budget unit later during the fiscal year. * Budget Unit 0674 - Miscellaneous Property - Road Fund EXPENDITURES: Budgeted: $205,000 Percent Expended: 3% This budget unit provides for the funding of planning and design projects for the County' s central corporation yard. At this time, projects are being redefined, therefore, there has been minimal activity. It is expected that the rate of expenditures will increase significantly during the year. * Budget Unit 0843 - Airport - Fixed Assets EXPENDITURES: Budgeted: $165, 000 Percent Expended: 2% This budget unit. provides for the purchase of fixed assets and capital improvements required at Buchanan Field Airport. There are several major improvement projects scheduled for this year, however, construction has been delayed pending clarification of FAA expectations. REVENUES: Budgeted: $165,000 Percent Received: 0 This budget unit is funded via the transfer of money from Budget Unit 0841 - Buchanan Field Airport. Monies from the Airport Enterprise Fund are used as revenue for this unit. -22- ATTACHMENT A 1986-87 FIRST QUARTER BUDGET STATUS REPORT * Budget Unit 0860 - Contra Costa Health Plan REVENUES: Budgeted: $21,121,451 Percent Received: 23% Revenues are slightly below the budget plan because Medi-Cal and other state premiums have not been posted to the finance system. This delay is normal and is reconciled at the close of the final year. -23- - ----- - ATTACHMENT--B OFFICE OF SUPERIOR COURT ADMINISTRATOR - JURY COMMISSIONER-- - _ CONTRA COSTA COUNTY - Room 124 - Courthouse, Martinez DATE: August 19, 1986 TO: Tony. Enea, ..Productivity Investment Board Chairman FROM: Len LeTellieei perior Court Administrator/Jury Commissioner SUBJECT: -PRODUCTIVITY INVESTMENT FUND PROPOSAL The attached proposal is submitted with the support of the Municipal Courts, for consideration of funding from the Productivity Investment Fund. The benefits of this proposal are several: 1) It streamlines _ what is now a labor-intensive qualification _ process; 2) It permits the Municipal Courts to actively manage their jurors; 3 ) It will improve public relations by substantially eliminating juror confusion and anxiety regarding their service; and 4) It is cost effective, resulting in County savings of nearly $30,000 per year. Please let me know as soon as possible whether or not - this proposal will be funded, either entirely or partially. The Superior and Municipal Courts are committed to this proposal and if denied, will attempt to find funding from other sources so that the project can be operational_ by the first of the year. If you need additional information or require an oral presentation, please let me know. LL:cb - cc: Roy Chiesa, Walnut Creek-Danville Municipal Court Crnii.ia Cosa Counill A U 2 1 1986 G ice Courity .4=c!rninis into; - - - _ ._-COUNTY-OF CONTRA COSTA - PRODUCTIVITY OSTA -PRODUCTIVITY INVESTMENT FUND PROPOSAL - - PIF T .D. NUMBER- - DATE RECEIVED y COMPLETE INCO PL8TE 1. DEPARTMENT: JURY COMMISSIONER 1A. - BUDGET/ORG-. UNIT 2000 2. PREPARED BY: ESTHER LUTERMAN MARGOLIS 2A. DATE AUGUST 19 , 1986 3 . CONTACT: LEN LeTELLIER 3A. PHONE 372-2356 4 . PRODUCTIVITY INDICATOR: NUMBER OF AFFIDAVITS MAILED PER YEAR. 5. PROJECT ANALYSIS: BASE YEAR YEAR PERIOD ONE TWO a. ANNUAL NET COST OF CURRENT OPERATION PROCESS (Attach cost analysis to include: staff, equipment, supplies and revenues) $95,633 $95 , 633 0 b. ANNUAL NET COST OF OPERATING WITH PROPOSED IMPROVEMENT 95,633 $67 ,122 $67 , 122 c. DOLLAR BENEFIT (Subtract b from a) 0 $28 , 511 $28 ,511 SAVINGS AND STAFF 0 0 0 REVENUE EQUIPMENT 0 0 0 BREAKDOWN SUPPLIES 0 $67 , 122 $67 , 122 OTHER 0 0 0 d. TOTAL FUNDS NEEDED TO IMPLEMENT IMPROVEMENT 0 $68 , 431 0 e. INVESTMENT FUNDS REQUESTED FROM PIF 0 1 $68 , 431 0 6. MONTHS TO FULLY -IMPLEMENT PROJECT: 4 MONTHS 7 . MONTHS TO FULLY PAYBACK PIF: 28 MONTHS (Attach detailed proposed payback schedule) 8 . DEPARTMENT HEAD SIGNATURE� � DATE ****************FOR PRODUCTIVITY INVESTMENT BOARD USE ONLY******************* BENEFIT/COST RATIO: PAYBACK PERIOD TRANSFERABILITY:- 1 2 3 4 - 5 GENERAL FUND: YES NO RECOMMENDATION: APPROVED - NOT APPROVED SIGNATURE:— CHAIRMAN, PRODUCTIVITY INVESTMENT BOARD OTHER I . ACTION PLAN — - -- - 1. Objective The purpose of this proposal is twofold. First, to cut by 50% the steps involved in summonsing jurors for both the Superior and Municipal Courts. Second, to reduce by 100% the amount of duplication of labor involved in summonsing jurors. 2. Approach The approach for accomplishing this objective will include the following: I a. The purchase of computer terminals and printers to place the Municipal Courts on-line with the Superior Court' s mini-computer, and facilitate the development of the other elements of this project. b. The implementation of a one-step summons , ,procedure for all jurors used in the Superior and Municipal Courts. c. The redistribution of workload regarding deferral and payment of jurors who are summoned to u the Municipal Courts. 3 . Background Currently, the Jury Commissioner' s office mails 62 , 500 affidavits to prospective jurors twice a year to qualify jurors for use in the Superior and Municipal Courts. Once jurors are qualified, a summons is mailed to them indicating when they are to report for jury duty. Pre-qualifying jurors is an extremely labor-intensive process. As affidavits are returned, they must be removed from their envelopes, sorted into various categories, counted, and key-punched. All of these processes must be done by hand. Temporary help must be hired to help jury staff in the processing of the affidavits. Once the jurors are qualified, they are sent a summons to appear for jury duty approximately three weeks prior to the appearance date. Jurors then have two weeks to request an excusal from jury duty or a deferment to a later. date. In the case of the Superior Court, the deferral date or excuse is entered into the computer .by jury personnel at the time the request is made. In the case of -the Municipal Courts, deferral; excusal and payroll information is- noted on a computer printout and sent to the Superior Court for entry into the Superior Court' s mini-computer.. -- The proposed plan will eliminate the need to - pre-qualify jurors by combining the affidavit with the summons, thus saving the cost of mailing 125,000 affidavits and the cost of temporary help. Additionally, by placing the Municipal Courts on-line with the Superior Court' s mini-computer; the Municipal Courts will be able to enter their deferral, excusal and payroll information directly. into the computer. This will eliminate a duplicative process and will also reduce the chance of errors occurring in the Municipal Court' s data base. In addition, the Municipal Courts will be able to exercise greater control over the time, lag involved in the deferral of their jurors. Lastly, the new procedure will result in less confusion to the general public as people frequently mistake affidavits for summonses and call the Jury Commissioner's Office to determine when they need to report for jury duty. - 1 _ 4. Budget Detail ONE-TIME START-UP COSTS TO PLACE THE MUNICIPAL COURTS ON-LINE WITH THE SUPERIOR COURT' S JURY MANAGEMENT SYSTEM No. Item Cost 1 2MD Memory Board $ 9,000 .00 1 600 Line Printer 9,322.00 5 DG-215 Terminals 5,000. 00 4 DG 4434-X Printers i with cables 3 ,900. 00 4 AGS Software and Training 24,000. 00 8 Modems 11,600. 00 4 Telephone Line Installation Charges 1 , 432. 00 $64,254 .00 Tax 4,177 . 00 Total $68,431. 00 I - JURY SYSTEM ANNUAL COSTS: -- TWO-STEP VS. ONE-STEP - Annual Annual Annual One- + - Two-Step -Costs Step Cost Increase/Decrease Superior Court: Affidavits 125 ,000 @ $ . 37 - $46,250 -0- -$46 , 250 Summons 32,240 @ 42,986 @ . 40 $12,896 .40 $17, 194 + 41298 Data Processing 24,833 $21, 833 - 3 ,000 Sub-Total $83 ,979 $39,027 -$44 , 952 0 Municipal Courts: Summonses Bay 15; 000 @ . 27 20,000 @ $4,212 .40 $8,000 +$ 3,788 Walnut Creek 61240 @ .27 8 , 320 @ $1,685 $3 , 328. + 1,643 Mt. Diablo 12,000 @ . 27 16, 640 @ $3 , 370 $6,656; + 3 , 286 Delta 81840 @ . 27 11,787; @ $2 , 387 $4,715 + 2 , 328 i Telephone Charges Bay -0- $1,685 +$ 11685 Walnut Creek -0- 1,057 + 1, 057 Mt. Diablo -0- 931 + 931 Delta -0- 1,723 + 1,723 Sub-Total $11,654 $28,095 +$16 , 441 Total $95,633 $67 ,122 -$28 , 511 II .- CONTROL -PLAN — - - . The control plan will carefully monitor the number of people who fail to appear for: jury duty to determine if they represent a larger percentage of jurors than under the two-step method. I I i :o- III . IMPLEMENTATION SCHEDULE Implementation of the proposed program i'9 dependant upon the design and. printing of a new summons, the acquisition of computer equipment and the training of personnel. Implementation of the program can be expected to take place approximately five months. from the date of funding. The following is an estimate of the time required to implement the project. Project First Second Third Fourth Tasks Quarter Quarter _ Quarter Quarter J A S O N D J F M A M J 1. Design and print new summons format X X X X X 2. Purchase equipment X 3 . Install equipment X 4. Train personnel X X X 5 . Full project implementation X X X X X X i PROPOSED_PAYBACK SCHEDULE First Second - Third Fourth Quarter Quarter Quarter Quarter Project Cost $68,431 Project Savings $14 ,256 $14 , 256 Payback Schedule $14, 256 $14,256 $14, 256 $14 ,256 The project savings is a direct cost avoidance of $28 , 511 in postage and forms that will no longer be required. The cost avoidance will be $14, 252 by the end of the nine-month period of the project year. Full implementation of the project will yield $28, 511 over 12 months and if postage is increased, an ; additional savings will accrue. I - i V. IMPACT ON OTHER DEPARTMENTS --- _— There are no negative impacts on any &apartment as. the result of the implementation of this project. We do anticipate a more efficient use of existing staff and better cooperation between Superior Court and Municipal Court personnel.' The project is being developed jointly with the four Municipal Courts, since they are direct participants. The Municipal Courts strongly endorse the proposal as presented and in the event the Productivity Investment Fund is unable to fund the entire project amount, the Municipal Courts can supplement the funding from other existing data processing allocations. is6 i OFFICE OF.THE CLERK - ADMINISTRATOR - A UG 2 1986 WALNUT CREEK - DANVILLE MUNICIPAL-COURT 640 Ygnocio Valley Road, Walnut Creek, California I To: Tony Enea, Chairman Date: August 22 , 1986 Productivity Investment Board From: Roy L. Chiesa, Superior Court Administratc Clerk-Administrator Subject: Application for Funding Jur System Enhancement This memo is to convey to the Productivity Investment Board the unqualified support of the municipal courts for the proposal to enhance the automated countywide jury system. We urge an affirmative action on Mr. LeTellier ' s application. It appears from our review of your program criteria that the jury system project is uncannily tailored to fit this new county program:- `"It ' s an assured success both financially and production wise. You could not make a better choice with which to inaugurate your high visibility county program. i . CC: Len Le Tellier Marilyn Eck Nancy Rampani Bob Gordon CONTRA COSTA COUNTY HEALTH SERVICES DEPARTMENT- To: Productivity Investment Board Date: August 27, .1986 Attn: Julie DiMaggiio. From: Mark Finucane; '� Subject: Productivity Projects Health Services Director The Health Services Department is pleased to submit two productivity projects for your consideration. The Sick Leave Incentive Program can be easily implemented and readily repli- cated in other County departments. The Delta Diablo Sanitation District is currently operating this program. The Board Order and an opinion from County Counsel on the legality of this program are appended to the application for your information. The second project would enhance the Contra Costa Health Plan' s management information system. Additional disk space and memory, together with the latest contractor software, would allow us to track utilization of health services by CCHP members and to use this information in utilization control . Experience in other health plans has demonstrated that when given feedback, physicians will modify their practice patterns and reduce utilization. Although we feel both projects are worthy of funding, the Department ' s priority is the Sick Leave Incentive Program. MF :LB:bgg attachments - X-LB-PRODUC A-41 3181 r I Y COUNTY OF CONTRA COSTA PRODUCTIVITY INVESTMENT FUND PROPOSAL PIF I .D. NUMBER �-ds DATE RECEIVED. P COMPLETE r/ IN OM ETE 1. DEPARTMENT: Health Services Dept. lA.BUDGET/ORG. UNIT 2 . PREPARED BY: Bobbi Baron 2A. BATE:' ' August 11, 1986 3 . CONTACT: Bill Cristy 3A. PHONE: 415372-4359 4 . PRODUCTIVITY INDICATOR: Utilization reduction by CCHP members using:. . health services. 5 . PROJECT ANALYSIS: BASE YEAR YEAR t PERIOD ONE TWO a. ANNUAL NET COST OF CURRENT OPERATION PROCESS (Attach cost analysis to $18.,5m. $18.5m. $19m. include: staff, equipment, supplies, and revenues) b. ANNUAL NET COST OF OPERATING WITH $18.5m. $18.475m $18.905m. PROPOSED IMPROVEMENT c. DOLLAR BENEFIT $25,000 $95,000 (Subtract b from a) STAFF SAVINGS AND REVENUE EQUIPMENT BREAKDOWN SUPPLIES OTHER - utilization $25,000 $95,000 reduction j. d. TOTAL FUNDS NEEDED TO $19,000 IMPLEMENT IMPROVEMENT e. INVESTMENT FUNDS REQUESTED $18;000 PI D1 FROM PIF 6 . MONTHS TO FULLY IMPLEMENT PROJECT: 4 months I ACTION PLAN 1. Objectives Reduce -utilization of health services by CCHP members by tracking utilization. Plan management and doctors .. will be able to see clearly how Health Plan members are utilizing services. Decisions can then be made to eliminate non-productive practices and encourage cost-effective practices. Expected savings are $25,000 in year one and $95,000 in year two. 2. Approach Background - In March 1982, Contra Costa County entered into a Lease Agreement with Bank of America to acquire a computer system, to be installed at 816 Main Street, Martinez, for the management of the Contra Costa Health Plan. The initial configuration of the computer included only a 300 megabyte disk storage unit which was sufficient for a membership at the then 5,000 member level. However, when the county created the Basic Adult Care program for the former MIA-Medi-Cal populations Health Plan membership increased to over 10,000 members. At this time it became apparent that two things had to be done: 1) a method had to be devised to automatically move service utilization data from the Health Services ccmputer to the Health Plan computer, and 2) additional memory must be acquired to handle this greatly increased data flow. In anticipation of these two requirements being fulfilled, all service utilization data since July 1, 1985, for Health Plan members has been placed on mag tape and held for future processing. page 2 `'' ,. Present Situation _ Currently, the Health Plan has thirteen (13) months of Health Services Department utilization data stored on mag tapes- waiting to be used as input to the Health Plan's computer system; a "Utilization Interface" program has been created and tested and can be used to process this retained data and then will become a daily update routine. ..However, the hardware enhancements required have not been funded so that this essential process cannot begin. Request- The Health Services Department requests that funding for these requirements be approved so that the Prime 750 computer system can provide the information required for management of the delivery of services to members. Our specific request is as follows 1 - Current COMIEC HMO software package - $5,000 1 - Prime Model 4472 - 300 MB Removable Disk Drive - $5,000 1 - MMW4-MB Intraleaved Meimry Board - $6,000 TOTAL REQUEST -$161000 II CONTROL PLAN Plan management and physicians will develop utilization goals. Plan management will be given monthly reports tracking utilization patterns of members. Management will compare actual utilization with utilization goals.Over utilization will be pinpointed and reported to Plan physicians who will investigate and take necessary corrective action.. - Reports will be generated from utilization interface. I III IMPL MU4TATION SCHEDULE PROJECT TIME PERIOD PROJECT TASKS lst Quarter 2nd Quarter 3rd Quarter 4th QuartE 1 2 3 . 1 2 3 1 2 3 1 2 3 1. Purchase Hardware X 2. Test.Program Against Hardware (run test reports) X X ; 3. Run Actual Reports - Full .Project XXX XXX XXX . 7 A oaae 3 IV PROPOSED PAYBACK SCHEDULE YEAR ME 1st QUARTER 2nd QUARTER 3rd QUARTER 4th QUARTER TOT) Project Cost $16,000 -Project Savings' $10,000 $15,000 $25,0 Payback Schedule e� $ 5 ,000 YEAR T7nU Project Cost Project Savings $15,000 $25,000 $25,000 $30,000 $95,( Payback Schedule $11,000 V _1MP-ACT ON OTHER DEPARTM12TOS None. BB:smp _l. "06. ] n b >_ • m J m to a �� N i [C9 O O m d 0 lY ._ _•d A — b O ',% M. 04 O H v Y m z z - d H H H H H N t7 rob' d Y-ro b M C b b TJ _ • b m' O . 7l s S M X O tD b N O w Z 7 5 b x n n n A H0__ -- y H rn -♦ H N N W •1 H `A }l < C r O Z a n o z H H H M 3 — H r H • -` 3 r b M M H tr r ro C r-'n t7 M —.0 0 ro, N M r b < O b If c M)bb '< z H 2 X M G] h 'a1 N r m m N r 'l. H til H Z N d M - < m N .b H K •• H a S C C M M z C O C '0 lD O Z m •• Z t. 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OBJECTIVE: To allow user departments to input payroll hours : for their salaried and hourly employees into Personal Computers (P .C. ) . Since this will allow validation as the data is entered it will result in fewer errors , less processing time and reduce peak periods during . the normal payroll procedure: It will also allow the user departments to have access to hours worked data for further use on their P.C. if they so desire . 2 . APPROACH : At the conclusion of a payroll cycle, computer operations will create a file for each department and either transmit the data directly to their P.C. or create diskettes to be given to the department. These files will then be used to update the next payroll cycles information at the user department via P.C.s. 3 . BACKGROUND: The current method for this procedure is for computer operations to create -a punched card which is then ' duplicated, printed and sent to the user. department. This card is then used for reporting hours worked to the Payroll Department. AnAnfegral part of this procedure is the machine required to punch and print the cards . It is old aiid difficult to find parts and repair. They are no longer manufactured so impossible to replace. The proposed system would eliminate the need for this machine. 4 . STAFFING: Existing staff would be trained to input transactions on the P.C. . Since we would be automating a hand driven system, the validation routines would result in fewer errors at this level . Training of new clerks would he easier as turnover occurs . 5 . FACILITIES : A reduction in space utilized in the computer room would result since the card punch/print machine would be removed . 6 . .FOUIPMENT.: This system would run on IBM P.C. 's and those that are compatible: Fcr departments without P.C. ' s , " they could either purchase one or arrange for the use of one with a department nearby. The need for the card punch/print machine would ,be eliminated . 7. SUPPLIES : The new method would eliminate the need for punch cards . Current usage is approximately 15 ,000 per month . They would be replaced with diskettes at a significant reduction in costs . II. CONTROL PLAN: Existing controls of the payrorl system would -be - maintained. Timeframes are already in place for each department to report payroll information to the Payroll Department and no deviation from these will .take place . III . IMPLEMENTATION SCHEDULE: If ,-funding. is approved, specifications would he finalized and presented to the Auditor-Controller for approval to proceed. Preliminary discussions have taken place between Data Services and representatives of the Auditor-Controller. If approved by the Auditor- Controller implementation would be as follows : NUMBER OF WEEKS O1 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 1 . Fi-nalize Specs xxxxx_ - 2 . Write and test xxxxxxxxxxxxxxxxxxxxrxxxxxxxxxxxxxxxxxxxx programs - 17 18 19 20 21 22 23 24 - - 3 , Parallel Testing xxxxxxxxxxx 4 . Implement and xxxxxxxxxxx train users. IV. PROPOSED PAYBACK SCHEDiTLE First Second Third Fourth (quarter Quarter Quarter Quarter Total Protect Cost 2 ,500 19 , 500 13 ,000 35 ,000 Project Savings 12 ,900 1.2 , 900 25 , 800 Payback Schedule 12,900 12 ,900 25 , 800 Project savings will result in elimination of maintenance costs of the card punch/print machine, reduction in computer usage to process payroll. , reduction in keypunch responsibilities in computer operations , elimination of cost of punch cards . Savings in clerical effort at the user department on an ongoing basis .' Savings and Payback Schedule estimates are based on a savings of 4 ,300 per month after implementation. Projected savings are 51 ,600 per year. COST ANALYSIS BREAKDOWN FOR TIME REPORTING PRODUCTION COSTS BUDGETED FOR 86-87 81, 000 Estimate 1% reduction in production costs due to less payroll. runs. - 8 , 100 STAFF ESTIMATES Currently 70 payroll clerks 420 ,000 spending 30% oftheir time on payroll at 20K per year (salary includes benefits) . . New procedures will save 10% 42 ,000 of their time . SUPPLIES Eliminate 150 ,000 punch cards 1 ,500 currently used anually. ESTIMATEC`YEARLY SAVINGS 51 , 600