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HomeMy WebLinkAboutMINUTES - 01172006 - C.71 TO: BOARD OF SUPERVISORS '�.• Contra FROM: INTERNAL OPERATIONS COMMITTEE g Costa DATE: DECEMBER 19,2005 Cj o u n t �o. y '4 COUNT SUBJECT: COUNTY ADMINISTRATOR'S 2006 MANAGEMENT OVERSIGHT PLAN C � ' SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: 1. ACCEPT status report on the management oversight activities of the County Administrator's Office for 2005. 2. RECOGNIZE the 2006 is expected to be a year of significant transition for the County Administrator's Office due to the appointment of a new County Administrator effective March 2 and the retirement of the Chief Assistant County Administrator effective March 30, 2006. 3. APPROVE the tentative program of management audits and policy reviews proposed by the County Administrator for 2006. CONTINUED ON ATTACHMENT: YES SIGNATU i _RECOMMENDATION OF COUNTY ADMINISTRATOR _,,-RECOMMEN AT ON OF BOARD COMMITTEE �/ PROVE OTHER \ (ABSENT) SIGNATURE( . G LE B.UI_ Chair MARK DeSAULNIER ACTION OF BOARD ON APPROVE AS RECOMMENDED O R VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN UNANIMOUS(ABSENT AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE AYES: NOES: SHOWN. ABSENT: ABSTAIN: ATTESTED: JANUARY 17,2006 CONTACT: JULIE ENEA(925)335-1077 JOHN SWEETEN,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR CC: INTERNAL OPERATIONS COMMITTEE STAFF COUNTY ADMINISTRATOR y e�� PUTY County Administrator's 2006 Management Audit Program December 19,2005 Internal Operations Committee Page 2 BACKGROUND: On June 27, 2000,the Board of Supervisors reviewed the County's audit program and directed that each December, the County Administrator and Auditor-Controller report to the Internal Operations Committee on the proposed schedule of internal financial and management audits for the following year, including those studies requested by the Board of Supervisors. In previous years, the Board of Supervisors agreed to suspend the program of regular management audits to allow the County Administrator's Office to focus its resources on the more pressing matters of budget and public safety. These matters continue to require significant commitments of staff time and energy. Budget reductions over the past four years have reduced professional staff resources in the County Administrator's Office by about 40%,requiring the department to eliminate some functions and assign additional work to remaining staff to maintain critical services. Despite severe staff reductions, the County Administrator's Office was able to complete most of the tasks scheduled for 2005: ■ Pension Reform Study—The County Administrator undertook an analysis of the reasons for the increase in the County's share of unfunded accrued actuarial liability(UAAL) in the retirement system. That analysis led to the, creation of a pension reform task force by the California State Association of Counties (CSA ). The task force, comprised of county administrators from around the state, was chaired by the Contra Costa County Administrator. The task force produced a series of recommendations that were;intended to accomplish the following primary objectives: ❑ Reduce the cost of retirement benefits ❑ Reduce the volatility i f those costs ❑ Eliminate the perception of impropriety in the design and administration of public pension systems. The recommendations of the task force were adopted by the CSAC Board of Directors. They have been incorporated into ACA 23 (Richman), a significant pension reform measure pending in the State Legislature. That measure also contains a variety of other provisions that are not consistent with the adopted CSAC recommendations. ■ Retiree Health Benefits Study—The County Administrator, with the assistance of an actuarial consultant, undertook a review of the County's retiree health benefit—its current and long-term costs. The consultant provided preliminary data which informed the Administrator regarding preliminary cost assessment. A committee was commissioned by the Administrator to review proposals by actuarial firms to undertake the formal analysis of the County's unfunded retiree health obligation in compliance with GASB 43 and 45. That work will commence shortly. The Administrator has been asked+by CSAC to head up a committee of county administrators to identify strategies to deal with the significant challenges posed by the future cost of retiree health benefits. County Administrator's 2006 Management Audit Program December 19,2005 Internal Operations Committee Page 3 ■ Community Services Department Management Audit—The Board of Supervisors requested the County Administrator to build on the state and federal audit findings related to program issues at Head Start sites and identify appropriate corrective action. Outside consultant Human Resource Practitioners conducted the audit. Under the oversight of the Family&Human Services Committee, County Administrator, and new Community Services Director, the corrective action plan has been implemented. ■ Human Resources Department Organizational Review—In light of the significant period of transition in senior level personnel, the County Administrator conducted a study of how existing staff can be deployed in the most effective manner. Outside consultant CPS Human Resource Services (Sacramento, CA) assisted with the study. ■ Review of Protocols for Reporting Public Safety Hazards on County Roadways— In response to an apparent failure by the County to correct a possible traffic hazard in an area where two accidents occurred,the County Administrator's Office directed its Risk Management Division to review internal risk assessment protocols, and develop the necessary lines of internal communication to ensure rapid response and mitigation of public safety hazards. ■ East Contra Costa Fire Protection District Master Plan—With the assistance of consultant Citygate (Sacramento, CA), the County Administrator developed a comprehensive long-range master plan for the new district. ■ Procurement Card Policy— In response to charges that were appropriate for County business but not authorized under the County's procurement card program, the County is in the process of contracting for a new procurement card that has a variety of new product features. A committee of departmental representatives has begun updating policies and procedures to ensure that the new card meets the business needs of the County while maintaining accountability and management controls. ■ Sick Leave Usage—In response to inconsistencies in the application of the County's sick leave policy among departments and offices, the County Administrator's Office convened a committee of departmental representatives that identified issues regarding sick leave, resulting in a report with findings, conclusions and recommendations addressing the issues of sick leave usage levels, sick leave policy, management toolIs,training and education, data on sick leave usage and sick leave incentives. A training course was developed for supervisors and managers based on the recommendations made by the Sick Leave Committee. The training included tracking sick leave usage through KRONOS,the County's timekeeping system, and use of a hyper-find query in the KRONOS system to help managers more easily review sick leave usage of their employees. ■ Advisory Body Review — Board Resolution No. 2002/377 requires that the Board of Supervisors review, at three-year intervals(beginning in 2002, each advisory body whose existence is not mandated by State or federal law or regulation for justification of its continuation. The County Administrator's Office reviewed the 96 advisory boards, committees, and commissions currently in the "Maddy Book." The revieI resulted in deletion of three advisory bodies from the Maddy Book web page that had been dissolved, abolishment of four advisory bodies that are no longer meeting County Administrator's 2006 Management Audit Program December 19,2005 Internal Operations Committee Page 4 or whose mission has become obsolete, consolidation of two advisory bodies whose functions were redundant, and the remainder to remain in place without change. • Cell Phone Usage—,In response to the County's increase utilization of and reliance on cellular telephones (cell phones), the County Administrator's Office convened a committee of departmental representatives to examine policy,practices, and costs associated with County employee cell phones. The committee developed a comprehensive survey on these issues, which identified a wide variance in policy, practices, and costs. Release of a final report is pending a test by the Department of Information Technology to determine if the County's new WINCALL/WINBILL system can be utilized to track cell phone use and costs. ■ Structural Analysis of Budget—In preparation for the 2005/06 County budget, the County Administrator's Office analyzed historic and near-term revenues compared to costs, identifying a structural imbalance in the County budget due to a combination of factors: Iower year-end fund balances, retirement costs, health insurance costs for both current and retired employees, and continuing increased charges by the Workers Compensation Trust Fund. The evaluation resulted in identification of key areas of action necessary to align spending with revenues and was utilized by the Board during budget deliberations. ■ Municipal Advisory Council(MAC) Fiscal Procedures—The County Administrator worked with the Auditor-Controller to update the County's policy on fiscal procedures and accountability for County MACS. The Board of Supervisors adopted the updated policy and procedures on November 1, 2005. ■ Emergency Call Center—The County Administrator conducted an assessment of the County's ability to communicate during an emergency with the public and media, and identified the need for an emergency call center, which would provide instructions to callers in the event of a local emergency. The Sheriff's Department is working on the development of an emergency call center. With the recent appointment of a newt County Administrator and the impending retirement of the Chief Assistant County Administrator, 2006 is expected to be a year of significant transition. The County Administrator's Office proposes to continue its practice of conducting studies and policy reviews to address concerns identified by the Board of Supervisors and which have broad impact on all County departments; and to conduct targeted management audits to address specific problems or issues as the need arises. The most prominent issue that will require the attention of the County Administrator is containment of costs for retiree health benefits. The County Administrator's Office plans to continue those studies currently in progress and, in addition, undertake a study to develop a comprehensive public communications program. The Internal Operations Committee, with Supervisor DeSaulnier absent, approved the report and plan of the County Administrator.