HomeMy WebLinkAboutBOARD STANDING COMMITTEES - 07282014 - Finance Cte Agenda Pkt
FINANCE COMMITTEE
July 28, 2014
10:30 A.M.
651 Pine Street, Room 101, Martinez
Supervisor Mary N. Piepho, Chair
Supervisor Federal D. Glover, Vice Chair
Agenda
Items:
Items may be taken out of order based on the business of the day and preference
of the Committee
1.Introductions
2.
Public comment on any item under the jurisdiction of the Committee and not on this
agenda (speakers may be limited to three minutes).
3. CONSIDER approving the Record of Action for the May 29, 2014 Finance Committee
meeting (Lisa Driscoll, County Finance Director)
4. CONSIDER Proposal for the Replacement of the STARR 2 Sheriff's Helicopter (Mark
Williams, Assistant Sheriff)
5. CONSIDER Report on Visa Credit Card Service Fees (Brice Bins, Chief Deputy
Treasurer-Tax Collector)
6.The next meeting is currently scheduled for August 25, 2014.
7.Adjourn
The Finance Committee will provide reasonable accommodations for persons with disabilities
planning to attend Finance Committee meetings. Contact the staff person listed below at least 72
hours before the meeting.
Any disclosable public records related to an open session item on a regular meeting agenda and
distributed by the County to a majority of members of the Finance Committee less than 96 hours
prior to that meeting are available for public inspection at 651 Pine Street, 10th floor, during
normal business hours.
Public comment may be submitted via electronic mail on agenda items at least one full work day
prior to the published meeting time.
For Additional Information Contact:
Lisa Driscoll, Committee Staff
Phone (925) 335-1023, Fax (925) 646-1353
lisa.driscoll@cao.cccounty.us
FINANCE COMMITTEE 3.
Meeting Date:07/28/2014
Subject:Record of Action for May 29, 2014 Finance Committe Meeting
Submitted For: David Twa, County Administrator
Department:County Administrator
Referral No.: N/A
Referral Name: Record of Action
Presenter: Lisa Driscoll, County
Finance Director
Contact: Lisa Driscoll, County Finance Director
(925) 335-1023
Referral History:
County Ordinance requires that each County body keep a record of its meetings. Though the
record need not be verbatim, it must accurately reflect the agenda and the discussions made in the
meeting.
Referral Update:
Attached for the Committee's consideration is the Record of Action for its May 29, 2014 meeting.
Recommendation(s)/Next Step(s):
Staff recommends approval of the Record of Action for the May 29, 2014 meeting.
Fiscal Impact (if any):
None.
Attachments
Finance Committee Record of Action May 29, 2014
FINANCE COMMITTEE 4.
Meeting Date:07/28/2014
Subject:Sheriff's Helicopter Procurement
Submitted For: David O. Livingston, Sheriff-Coroner
Department:Office of the Sheriff
Referral No.: N/A
Referral Name: Sheriff's Helicopter Procurement
Presenter: Mark Williams, Assistant Sheriff Contact: William Duke (925) 335-1500
Referral History:
The County Administrator requested that the Sheriff-Coroner present his proposal for the
procurement of a replacement helicopter to the Finance Committee before presentation to the full
Board of Supervisors.
Referral Update:
Attached for the Committee's consideration is a proposal from the Office of the Sheriff to replace
STARR 2, which is reaching the end of its service life.
Recommendation(s)/Next Step(s):
Discuss and consider the proposal to replace the Sheriff's Helicopter STARR 2.
Fiscal Impact (if any):
Dependent upon model and trade in (see attached report), approximately $4.8 million. Of this
amount, $3.9 million are general fund dollars and $850,000 is the estimated trade in value of the
Bell 206 Jet Ranger (STARR 2).
Attachments
Sheriff's Helicopter Procurement Report
HONOR COURAGE COMMITMENT LEADERSHIP TEAMWORK
OFFICE OF THE SHERIFF
Contra Costa County
Field Operations Bureau
Special Operations Division
1980 Muir Road
Martinez, CA 94553
925-313-2511
Date: July 28, 2014
To: Finance Committee
From: Mark Williams, Assistant Sheriff, Field Operations Bureau
By: William Duke, Captain, Special Operations Division
Subject: Sheriff’s Helicopter Procurement
The Office of the Sheriff recently concluded a formal Request For Proposal (RFP) process for a public
safety helicopter to replace Sheriff’s Helicopter STARR 2. The need exists to replace STARR 2 due to
it reaching its end of service life. This has negatively impacted the Air Support Unit’s ability to most
efficiently fulfill its missions.
The RFP focused on an aircraft capable of accomplishing a variety of challenging public safety
missions and equivalent to Sheriff’s Helicopter STARR 1. A total of three new aircraft proposals were
accepted. This report provides the results of a comprehensive analysis of the accepted proposals.
BACKGROUND
The Contra Costa County Office of the Sheriff is responsible for providing public safety in a county
that spans 750 square miles with over 240 linear miles of shoreline. Dedicated to providing innovative
and professional law enforcement services, the Office of the Sheriff established the Sheriff’s Tactical
Airborne Reconnaissance and Rescue (STARR) program in 1997 as a means to better serve the
public by reducing crime and increasing boater safety on the Bay and Delta waterways.
The mission of the Air Support Unit is to enhance community safety by patrolling our many critical
infrastructures, supporting search and rescue operations, assisting vessels in distress, locating
missing persons, and assisting ground units in the detection and arrest of law vi olators. Additionally,
the aircrew works closely with the Office of the Sheriff Infrastructure Protection Team and the United
States Coast Guard to locate vessels violating federal security zones established around several
critical facilities.
The Air Support Unit currently operates two STARR helicopters on an alternating basis, four days a
week. STARR 1 is a Bell 407, five passenger, light turbine utility helicopter capable of speeds in
excess of 150 MPH. STARR 2 is a Bell 206 Jet Ranger, three passenger, light turbine helicopter
capable of speeds in excess of 120 MPH. Both aircraft are equipped with avionics including GPS
DAVID O. LIVINGSTON
Sheriff-Coroner
Michael V. Casten
Undersheriff
HONOR COURAGE COMMITMENT LEADERSHIP TEAMWORK
mapping systems, microwave downlinks, high zoom video cameras, thermal imaging devices, and 50
million candle power “Night Sun” spotlights.
The equipment is operated by a Sheriff’s Tactical Flight Officer trained to manage a variety of
incidents to include vehicle pursuits, search and rescue operations, suspect searches, marine
incidents, and homeland security missions. The Sheriff’s he licopters have the ability to perform the
same level of observation as 12 Patrol Deputy Sheriffs, improving response times and increasing the
number of missing persons and suspects located.
The inoperable equipment in helicopter STARR 2 prompted a comprehensive review of the
capabilities of both helicopters in an effort to meet the current and future mission requirements of the
Air Support Unit with the most efficient expenditure of available resources. The review id entified the
need to replace helicopter STARR 2 with a new aircraft equivalent to helicopter STARR 1. STARR 1
is a utility based platform that maintains the type of payload requirements needed to meet the mission
profile of the STARR program.
A formal RFP process for a new helicopter capab le of accomplishing the myriad public safety
missions currently performed by helicopter STARR 1 was conducted. Three proposals meeting the
requirements contained in the Bid Specifications were accepted.
RFP RESULTS
Each of the accepted bid proposals we re reviewed using a selection criteria that included purchase
price, hourly direct operating cost (DOC), mission capability, customer support, and overall reliability.
Customer support and overall reliability ratings were obtained from 2013 survey results published by
Aviation International News, recognized nationally in the aviation industry for their annual aircraft
owner surveys.
HELICOPTER PRICE + 8.5% Tax D.O.C. MISSION
CAPABILITY
CUSTOMER
SUPPORT
OVERALL
RELIABILITY
BELL 407GX $3,470,915.00 $741.00 10 7.1 8.1
AIRBUS AS350B3
$3,443,121.60 $775.00 9 5.5 7.1
AUGUSTA 119Kx $4,068,802.00 $997.00 9 6.5 7.1
Additionally, flight safety was addressed with an emphasis on the structural design of each of the
proposed aircraft. An in-depth analysis of the three helicopter proposals indicated the Bell 407GX
helicopter is the safest, most cost-effective, and best suited aircraft for the public safety mission.
HONOR COURAGE COMMITMENT LEADERSHIP TEAMWORK
FINAL COMPLETION
The Bell 407GX helicopter requires the addition and customization of many systems, to include
exterior mission specific hardware, pilot avionics, and law enforcement cameras and mapping
solutions. There are many products that can meet our specifications, with varied pricing and
installation requirements. The total cost of the helicopter with mission-essential factory options and
law enforcement components includes:
Bell Standard 407GX Helicopter: $3,470,915.00
Factory options, including avionics: $433,500.00
Wescam MX-10 IR Camera System: $431,040.00
Aero Computer Moving Map/Overlay System: $127,395.00
Airborne Displays: $32,380.00
Avalex Digital Video Recorder: $12,410.00
Spectrolab Nights XP Searchlight: $68,916.00
Becker Avionics Radio Selector: $33,023.00
Installation to include parts: $145,000.00
Complete Pricing Estimate*: $4,754,579.00
*8.5% tax included (excludes labor)
FUNDING SOURCE
The Office of the Sheriff will seek authorization from the County Administrator’s Office to expend :
$2,000,000 from the County General Fund
$1,904,579 from Fiscal Year 13/14 Sheriff’s Office budget surplus
$850,0001 from the sale of the Bell 206 Jet Ranger (STARR 2)
1 Market value ranges anywhere from $800,000 - $972,590
FINANCE COMMITTEE 5.
Meeting Date:07/28/2014
Subject:Visa Credit Card Service Fees
Submitted For: Russell Watts, Treasurer-Tax Collector
Department:Treasurer-Tax Collector
Referral No.: 2/25/14 C.84
Referral Name: Review of Visa Credit Card Service Fees
Presenter: Brice Bins, Chief Deputy Treasurer-Tax
Collector
Contact: Brice Bins (925)
957-2848
Referral History:
On February 25, 2014, the County Administrator requested that the Board of Supervisors, refer a
review of Visa Credit Card Service Fees to the Finance Committee.
Referral Update:
A report from the Treasurer-Tax Collector's Office on Visa Credit Card Service Fees is attached.
Also attached is a PowerPoint document, which will be presented at the meeting.
Recommendation(s)/Next Step(s):
Discuss and consider supporting the Treasurer-Tax Collector’s proposal that the Board of
Supervisors adopt a resolution superseding and replacing Board Order “Credit Card Use” (item
C.109), as approved by the Board of Supervisors on February 18, 1997, to align the Board’s
position on customer credit card payment services fees with the Visa Government and Higher
Education Program.
Fiscal Impact (if any):
A change in policy would generate additional County revenue. An analysis of credit card
transactions (excluding Tax-Collector) conducted between April 2012 and March 2013 resulted in
60,678 transactions generating $9,568,000 in revenue. Although actual fees vary depending on the
type of card used, the fees absorbed by the departments were approximately $167,000 during this
period.
Attachments
Visa Credit Card Service Fee Report
Review of Credit Card Service Fees
Date: 7/23/2014
To: Contra Costa County Finance Committee
From: Russell V. Watts, Treasurer-Tax Collector
By: Brice Bins, Chief Deputy Treasurer-Tax Collector
Subject: Visa Credit Card Service Fees
Traditionally, cash and checks have been the primary source of payment for goods and
services provided by County departments – including property tax payments. However,
the use of credit and debit cards as well as electronic fund transfers (ACH) has
proliferated throughout society and has become more the norm than the exception over
the past decade.
The Contra Costa County Board of Supervisors authorized County departments to
accept credit cards for the payment of fines and fees in 1997 and consistent with then
current Visa Operating Regulations, specifying that no fee shall be imposed upon the
public for credit card transactions. Recent changes to Visa Operating Regulation allow
fees to be collected by the third-party processor thereby eliminating a significant
departmental expense for the convenience of using credit/debit card and ACH
transactions for the payment of goods and services. The following information is
intended to encourage the Finance Committee to support the Treasurer-Tax Collector’s
proposal that the Board of Supervisors adopt a resolution superseding and replacing
Board Order “Credit Card Use” (item C.109), as approved by the Board of Supervisors
on February 18, 1997, to align the Board’s position on customer credit card payment
services fees with the Visa Government and Higher Education Program.
County departments including Health Services, Building Inspection and Animal Services
have accepted credit card payments for many years and many other departments have
begun accepting credit card payments in more recent years. There are currently ten
County departments and four voluntary pool participants that absorb the credit card fee
as a departmental expense. An analysis of credit card transactions (excluding Tax-
Collector) conducted between April 2012 and March 2013 resulted in 60,678
transactions generating $9,568,000 in revenue. Although actual fees vary depending on
the type of card used, the fees absorbed by the departments were approximately
$167,000 during this period.
Treasurer’s Office
625 Court Street
Finance Building, Room 102
Martinez, California 94553-1231
(925) 957-2850
(925) 957-2899 FAX
CCoonnttrraa
CCoossttaa
CCoouunnttyy
Russell V. Watts
Treasurer-Tax Collector
Brice E. Bins
Chief Deputy
Treasurer-Tax Collector
Belinda Zhu
Assistant County Treasurer
In 2008, Visa implemented the Visa Tax Payment Program. Prior to the implementation
of this Program, county tax collectors were responsible for credit card services fees
resulting from a taxpayer’s payment of property taxes by credit card. The Program
changed the payment structure by permitting third-party service providers to charge and
collect a service fee from the taxpayer separate from the payment of property taxes.
The Visa Tax Payment Program in 2008 did not change the requirement for non-taxing
government agencies. Under the Visa Standard Fee Program, these agencies were still
required to absorb the service fee. However, the Tax-Collector has been processing
credit cards under the Visa Tax Payment Program since 2009. In calendar year 2012,
credit card transactions alone generated $37,596,000 in property tax revenue with
another $182,992,000 in revenue from debit card and ACH transactions. Without the
Visa Tax Payment Program the Tax Collector’s expense for fees would have amounted
to about $739,000.
Likely due in part to the success of the Visa Tax Payment Program, Visa expanded the
program in 2012 to include higher education and non-taxing government agencies –
more precisely, Miscellaneous Government Services. In accordance with the Visa
Government and Higher Education Program, the Treasurer-Tax Collector’s office,
with the support of the County Administrator, requests the Finance Committee review
the proposal and support adopting the resolution to replace the 1997 Board Order which
will authorize non-tax County departments to pass payment service fees on to the
public/customer.
REVIEW OF CREDIT CARD SERVICE FEESTAXING AGENCIESNON-TAXING AGENCIESCONTRA COSTA COUNTYFINANCE COMMITTEEJULY 28, 2014
BACKGROUND•February 25, 1997•Authorization for County Departments to accept credit card payments for payment of various fines and fees•Direct County Departments to treat credit card fees as a departmental expense.•“No additional fee on the public shall be imposed.”•“Bank card company fees shall be treated as a departmental expense rather than a reduction in revenue. Credit card payments shall be allowed for County revenues only. Credit cards will not be allowed for use with any pass-through revenues to other entities. This policy specifically excludes the use of credit card payments for property taxes.”
NON-TAX MERCHANT ACCOUNTSSTANDARD FEE PROGRAM•Required to be a flat-fee fixed amount.•Card payments are processed as single transactions inclusive of payment and fee.•Merchant must provide a true “convenience” in the form of an alternative payment channel outside merchant’s customary face-to-face payment channel.•Fee cannot be charged on recurring payments.
NON-TAX MERCHANT ACCOUNTS•Animal Services•Contra Costa County Health Service Department (2003)•Central Contra Costa Sanitary District (2000)•Sheriff Department (2001)•Health Services•Contra Costa County Library•Contra Costa Fire Protection District•Building Inspection•Public Health –Vital Registration•Crockett Community Pool and Recreation Center•Contra Costa County EHSD•Contra Costa County Probation Department•Alamo- Lafayette Cemetery District•Byron Brentwood-Knightsen Union Cemetery (2002)
VISA TAX PAYMENT PROGRAM (2008)•Allows participating merchants to assess cardholder fees on approved tax types.•Eligible Tax Types:•Federal Personal Income Taxes•State Personal Income Taxes•Property Taxes•Federal and State Business Income Taxes
VISA TAX PAYMENT PROGRAM (2008)•Pricing Rules•Percentage based fee allowed for consumer and commercial credit card payments•Restricted to tax payment merchants•Two-transaction processing required•Fee separate from tax payment•Accept Visa in every channel payments are accepted•Online, Phone (IVR), Point of Sale (POS)
VISA GOVERNMENT AND HIGHER EDUCATION PAYMENT PROGRAM (2012)•Eligible Payments•Government Merchants•Tax•Fines•Court Costs•Miscellaneous Government Services•Higher Education•College Tuition•Business•Trade Schools
PROPOSAL•Consider adopting Resolution to supersede and replace Board Order as approved by the Board of Supervisors on February 18, 1997. •Align the Board’s position on customer credit card payment services fees with the Visa Government and Higher Education Program.•Change responsibility for the payment of credit card fees from County departments to the credit card holder.
THIRD-PARTY VENDOR•KUBRA America West, Incorporated•Fixed Flat fee based on average price of goods and/or services •Variable fee of 2.25%•Absorbed Pricing•Interchange Pass-through•Transaction Rate of $0.145/per transaction•Electronic Check (ACH) $0.08/per transaction
QUESTIONS?CONTRA COSTA COUNTYFINANCE COMMITTEEJULY 28, 2014