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HomeMy WebLinkAboutMINUTES - 01092007 - C.106 TO: BOARD OF SUPERVISORS - Contra FROM: SUPERVISOR GAYLE B. UILKEMA c e�u �,,=&. Costa DATE: DECEMBER 18, 2006 °os-------x- County SUBJECT: RECAP OF COUNTY ADMINISTRATOR'S 2006 MANAGEMENT OVER GHT ACTIVITIES AND 2007 AUDIT PLAN l O SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: 1. ACCEPT report on the management oversight activities of the County Administrator's Office during 2006. 2. CONCUR that management audit resources must be targeted as needed to address perceived or alleged problems in the operational practices or management of a department or program. 3. APPROVE the program of management audits and policy reviews proposed by the County Administrator for 2007. BACKGROUND: On June 27, 2000,the Board of Supervisors 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. Due to Supervisor DeSaulnier's recent departure from the Board of CONTINUED ON ATTACHMENT: YES SIGNATURE: - -------------------------------- ---------------------------------------------------- RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOAR ON APPROVE AS RECOMMENDED. OTHER 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 9,2007 CONTACT: JULIE ENEA(925)335-1077 JOHN CULLEN,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR CC: INTERNAL OPERATIONS COMMITTEE STAFF COUNTY ADMINISTRATOR BY PUTY County Administrator's 2006 Management Oversight Activities and 2007 Plan December 18,2006 Supervisor Gayle B.Uilkema Page 2 Supervisors, the Internal Operations Committee(IOC)did not have a quorum at its regularly scheduled meeting on December 18. In the interest of continuing the normal course of committee business, I have reviewed the background materials normally provided to the IOC and am forwarding to the Board my recommendations. What follows is a discussion of the tools available to provide oversight and control of departmental activities, how those tools were employed by the County Administrator in 2006, and the plan for management oversight for 2007. Management Tools. The County Administrator's Office has a number of management tools and processes at its disposal to provide guidance on and control of the many diverse departmental activities that make up County services. These tools include policies and procedures as documented in County Administrative Bulletins, quarterly budget monitoring and forecasting, financial audits, ongoing program and strategic planning, daily problem solving, and the management audit. Judicious use of these tools can ensure appropriate levels of oversight and support to departmental operations, at the same time maintaining departmental focus on providing services. The Management Audit is designed to address perceived or alleged problems in the operational practice or management of a unit/division/department. As such,management audits are targeted as needed and not conducted on a routine or predetermined time schedule. A management audit may be initiated by a Board of Supervisors member,the County Administrator, or a Department Head. The proposal should include a clear statement on the perceived or alleged problem and the facts or circumstances surrounding the issue. Management Audit proposals initiated by Board members are normally referred to the Internal Operations Committee for its review and recommendation to the Board of Supervisors. Management Audit proposals from a department head or County Administrator are customarily initiated after consultation between the County Administrator and the Chair of the Board of Supervisors. Evaluation of management audit proposals generally consider such factors as the appropriateness of the management audit tool in addressing the particular issue;the severity and/or urgency of the issue; and the workload of the County Administrator's Office and relative priority of the proposed audit, as compared to other activities. Unless otherwise specified by the Board of Supervisors, the scope and method of conduct of any management audit is defined by the County Administrator,recognizing that the scope may require adjustment during the course of the audit. The County Administrator will designate a management audit team to conduct the audit, consisting of members of his office and, as appropriate,representatives of departments and/or outside experts in the subject matter of the audit. The Management Audit Team presents its initial findings and recommendations to the County Administrator, who is responsible for appropriate follow-up. 2006 Management Oversight Activities. The following management oversight activities were conducted by the County Administrator's Office in 2006: ■ Retiree Health Benefits Study—The County Administrator,with the assistance of a financial advisor, the Auditor-Controller, and Treasurer-Tax Collector issued two RFPs and chose a firm to provide analytical and potential underwriting services to help the County to develop an appropriate OPEB funding plan; and an actuarial firm to provide actuarial analysis of the County's unfunded County Administrator's 2006 Management Oversight Activities and 2007 Plan December 18,2006 Supervisor Gayle B.Uilkema Page 3 retiree health obligation and potential savings relating to changes in benefits and/or administration of those benefits. A new OPEB task force was formed to address the County's OPEB liability. ■ General Fund Reserve Policy—In response to a downgrade from Moody's Investors Services,the County Administrator recommended a General Fund Reserve Policy to the Finance Committee, who forwarded the policy to the Board of Supervisors for adoption. The policy set goals to achieve a minimum unreserved General Fund balance of 5%of budgeted General Fund revenues and a minimum total General Fund balance of 10%of budgeted General Fund revenues. The adopted policy addressed: use of one-time resources for ongoing expenses; allocation of a set portion to a reserve for economic uncertainty; allocation of a set portion to one-time projects/expenses; and allocation of a set portion for capital projects. ■ Debt Management Policy- In response to Standard&Poor's recently issued Financial Management Assessment Criteria,the County Administrator recommended a County Debt Management Policy to the Finance Committee,who forwarded the policy to the Board of Supervisors for adoption. The policy establishes a Debt Affordability Advisory Committee and addresses comprehensive capital planning; planning and structure of County indebtedness;method of sale; refinancing of outstanding debt; credit ratings; and other debt management practices. ■ Facilities Life Cycle Investment Program/Deferred Maintenance Policy—In response to a request from the Finance Committee,the County Administrator recommended a Facilities Life Cycle Investment Program. The program will include a comprehensive database that catalogs current deferred maintenance and future capital renewal costs for County buildings. The database will describe and assess the condition of building systems(roof, mechanical, electrical,plumbing, structural, etc.), facility deficiencies,recommended corrective action, estimated cost to correct deficiencies, and priorities of the recommended corrective actions. This information will enable staff to: a. establish credible information for qualified decision-making and budgeting; b. prioritize short-term maintenance plans and identify long-term strategies; c. identify and estimate the cost of current deferred maintenance backlog; d. define equity and parity issues to guide equitable funding decisions; and e. forecast future expenditures. ■ Budget Policy—In response to Standard&Poor's announcement of new Financial Management Assessment Criteria, including grades for formal fiscal policy,the County Administrator recommended a formal Budget Policy to the Finance Committee,who forwarded the policy to the Board of Supervisors for adoption. The policy,which the Board adopted in November 2006, includes multi-year projections, limited use of one-time revenue, fund balance sharing, and other key financial rules. ■ Budget Cabinet—The County Administrator established this cabinet in January to assist him in developing budget strategies. The cabinet meets monthly and comprises the Community Development Director,Auditor-Controller, Treasurer-Tax Collector, County Administrator, Senior Deputy for Finance,Health Services Chief Financial Officer, and the Sheriff. The cabinet's motto is: "This year's solution shouldn't be next year's problem." County Administrator's 2006 Management Oversight Activities and 2007 Plan December 18,2006 Supervisor Gayle B.Uilkema Page 4 ■ Information Technology Cabinet—The County Administrator established this cabinet to identify, promote, and plan for the use of technology that will improve efficiency and effectiveness in delivering services. The cabinet comprises 10 department heads from functional areas and is currently focused on timekeeping systems, imaging systems,e-mail systems,payment system,and electronic forms. ■ Streamlining Business Practices at County Airports— At the direction of the Board of Supervisors, the County Administrator's Office undertook a review of business practices at the County Airports. Working with County departments that provide support services to the Airports,the CAO developed recommendations for streamlining business practices and expediting the review of economic development proposals. These recommendations were accepted by the Board of Supervisors. ■ Municipal Services Review—In 2006,the County Administrator's Office began a management review of the delivery of municipal services by the departments of Building Inspection, Community Development and Public Works. The review focuses on interdepartmental coordination in providing services to the public and improving customer service. ■ Community Services Department/Employment and Human Services Department Merger — The County Administrator identified opportunities for economies in administration and service delivery through the merger of the Community Services and Employment&Human Services departments, which, combined, serve many of the same populations. The merger of the two departments permitted the elimination of one department head position. Consolidations will continue to occur within the new merged organization to achieve additional economies and efficiencies in administrative services. ■ Reorganization of County Administrator's Office— Upon assuming his new position,the County Administrator initiated a process with his senior management team to identify all CAO activities,the amount of time devoted to each activity,the relative priority of each activity,how assignments could be better organized to create subject matter experts, and how work might be more evenly distributed to better respond to the needs of the Board of Supervisors and County departments. The resulting organizational structure groups activities by function and provides adequate staff to meet the ongoing needs of the office. ■ 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. As a result of this review, Public Works developed a new protocol employing its customer complaint database to log in,track and respond to customer complaints including immediate health and safety hazards. Employees were also instructed to fill out"Field Observation Reports" to record observed hazards that do not pose an immediate hazard so they will be taken care of in a timely manner. ■ Review of Protocols for Obtaining Approval for Capital Projects—Following up on a Grand Jury finding, the Capital Facilities Committee recently directed the County Administrator's Office to develop a standardized reporting format for presenting proposed capital projects. This format will County Administrator's 2006 Management Oversight Activities and 2007 Plan December 18,2006 Supervisor Gayle B.Uilkema Page 5 ensure consistency in the type of information presented to the Committee and the Board of Supervisors in justification of new projects. ■ Detention Facilities Needs Assessment Study—The County Administrator authorized the Sheriff to issue a Request for Proposals (RFP)for a needs assessment study for the County's detention facilities. The study will analyze local trends and characteristics that influence planning assumptions about future corrections,population projections, staffing levels, and the job classification system. Additionally,the County Administrator's Office worked with the Office of the Sheriff to identify immediate Detention Facility maintenance issues and is in the process of developing a financing plan to address those issues. • Electronic Business Outreach—Transition to E-Outreach from the County's existing system brought to light issues regarding roles and responsibilities for implementation,resulted in duplication of effort, and revealed that otherwise qualified SBEs were not being recognized by the program. The County Administrator's Office reviewed and resolved the following associated issues: a. Duplicative databases of certified BEs b. Qualified BEs not.County-certified (Board recommendation pending) c. Assigning responsibility and content of reports to Internal Operations Committee d. Departmental reporting responsibilities for purchasing transactions e. Oversight role of the County Administrator's Office(in conjunction with CAO reorganization) ■ 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. The CAO continues to facilitate and provide fiscal analyses for discussions with East County leaders, firefighters, and the community to reach consensus or compromise on a fire service model for the future. ■ 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 number of issues. Release of a final report is pending a test by AT&T and the Department of Information Technology to determine if the over 300 separate bills can be consolidated electronically,to permit the utilization of the County's new WINCALL/WINBILL system. 2007 Management Oversight Plan. The County Administrator's Office plans 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 Office plans to continue those studies currently in progress and, in addition, undertake a study to develop a comprehensive public communications program.