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HomeMy WebLinkAboutMinutes - 20070607APPROVED 9!6!2007 MINUTES ORANGE COUNTY BOARD OF COMMISSIONERS BUDGET WORK SESSION June 7, 2007 (re-convened from June 5, 2007) 7:00 p.m. The Orange County Board of Commissioners re-convened the Budget Work Session on Thursday, June 7, 2007 at 7:00 p.m. at the Link Government Services Center in Hillsborough, North Carolina. COUNTY COMMISSIONERS PRESENT: Chair Moses Carey, Jr., and Commissioners Valerie P. Foushee, Alice M. Gordon, Barry Jacobs, and Mike Nelson COUNTY COMMISSIONERS ABSENT: COUNTY ATTORNEYS PRESENT: Geof Gledhill and Brian Ferrell COUNTY STAFF PRESENT: County Manager Laura Blackmon, Assistant County Managers Willie Best and Gwen Harvey, and Deputy Clerk to the Board David Hunt (All other staff members will be identified appropriately below) NOTE: ALL DOCUMENTS REFERRED TO IN THESE MINUTES ARE IN THE PERMANENT AGENDA FILE IN THE CLERK'S OFFICE. 1. Opening Comments A motion was made by Commissioner Jacobs, seconded by Commissioner Nelson to go into closed session at 7:07 pm far the purpose of: "to discuss matters relating to the location ar expansion of industries or other businesses in Orange County, " G.S. 143-318.11 (a} (4}. VOTE: UNANIMOUS RE-CONVENE INTO REGULAR SESSION A motion was made by Commissioner Foushee, seconded by Commissioner Jacobs to re-convene into regular session at 7:47 p.m. VOTE: UNANIMOUS 2. Employee Pay and Benefits Rod Visser said that this year's budget for Employee Pay and Benefits is a departure from the way it has been budgeted in the past. Employee Pay and Benefits June 7, 2007 Budget Wark Session Pay Elements in Manager's Recommended Budget - Permanent Salaries Budgeted at 96% - Cast of Living Increase - In-Range Salary Increase - Classification, Pay, and Benefits Study - Employee Health Insurance - 401 (k} Contribution Increase - Living Wage Adjustment Cost of Living Increase - Manager recommends 3.0% adjustment, with effective date of July 1, 2007 - Recommended budget includes funding of approximately $1.14 million - Far all permanent employees - Not related to performance -addresses increases in price of general living expenses such as food, housing, and transportation - Gasoline costs have risen from $1.78 per gallon in January 2005 to more than $3.00 per gallon in June 2007 In-Range Salary Increase - Increases of 1 or 2% associated with work planning and performance review (1NPPR) process - Recommended budget includes funding of about $250,000 - For work performance that is proficient (1 °lo) or higher (2%) based on annual evaluation - Provides a tool to address, to some degree, problems that have re-emerged with salary compression - Links performance and rewards - Promotes proficiency and productivity Commissioner Gordon asked about the salary ranges of Orange County employees and Rod Visser said that 82% of current permanent employees are making salaries below the midpoint of the salary range they are in. The in-range increases would be effective on the anniversary dates. 3. Classification. Pay and Benefits Study Classification, Pay, and Benefits Study - Condrey & Associates study commissioned June 2001 - Condrey study recommendations were implemented in 3 phases during FY 2002-03 and FY 2003-04 - A competitive and well-managed class and pay plan needs regular review and updating every 5 years - Recommended funding of up to $100,000 to engage consultant in Summer 2007 - Target implementation of results for FY 2008-09 Rod Visser said that the Budget Department and Personnel are receiving an increasing number of proposals from departments to restudy positions to see whether they should be reclassified. He believes that a good portion of these reflect some frustration that there are no current mechanisms in place for people to move up in the salary range. He thinks it is really important to try and implement the recommendations for the study. Chair Carey asked how much the County paid for the 2001 Classification, Pay, and Benefits Study and Rod Visser said that it was in the law $70,000 range. Employee Health Insurance Funds to cover up to a projected 15% health insurance increase effective January 1, 2008 - Manager's recommended budget includes $127,000, plus $285,000 to be rolled over from 2006-07 health savings earmarked by BOCC for employee pay and benefits The actual amount will be based on County's claims experience and be determined in Fall 2007 through the annual review process with the NCACC Trust Commissioner Nelson asked if the health insurance gives parity of coverage for mental health and substance abuse. Rod Visser said that he would have to go back and look at this, but there is substantial coverage far mental health and substance abuse. 401 {k}Adjustment - Would increase County contribution from $25 to $30 per pay period for permanent employees other than sworn law enforcement officers - Estimated cost of increase for 2007-08 would be $93,000 - Element of pay plan that is of significant interest to many applicants for employment Living Wage - Increase from $9.67 to $10.12 an hour effective July 1, 2007 - Consistent with Board's policy - Affects about 130 temporary employees in 13 departments - All permanent employees earn mare than the living wage - 2007-08 budget impact of $11,000 Laura Blackmon said that budgeting at 96% would achieve some savings. The staff is looking for ways to budget efficiently. She thought that the 96°~ would be easier administratively than the 120-day waiting period that is currently being used. She said that the in-range salary increase would be an effort to work on salary compression to a certain extent. There is also a morale issue. Regarding a pay and classification study, she said that these type of studies should be done every five years. There are compression issues, and she is not sure if Orange County is in the market range on some positions. There have been several requests from staff for some equity adjustments. She said that some of the vacant positions are vacant because they cannot find people to hire at that particular salary range. Regarding the employee health insurance, there has been at least one inquiry from a non-profit agency about being put on the County's health care plan. It is very difficult for non- profits to get insurance plans for the small amount of emplayees. So far, the County's record far claims and hospitalizations is higher than the rest of the state. She is reluctant to recommend putting any other agencies on the County's health insurance. Commissioner Nelson asked about the pasitions that are hard to fill and Laura Blackmon said mainly it is the telecommunicators. There are some programs to promote telecommunicators to a higher place in the salary range. The staff is also researching some different recruiting mechanisms and their new facility will offer better working conditions. She said that it is not necessarily just the pay issue. Rod Visser said that one of the challenges with the paramedic program is that, because there is the Initial Response Vehicle program, it puts a lot mare responsibility on the individual paramedic. The paramedics have to really like the extra responsibility. Telecommunicators have been a traditional problem. There is same increasing promise with the community college program and the new satellite campus of Durham Tech. Commissioner Nelson said that he would support working with non-profits on health insurance, but he would defer to the Manager's judgment. He would like to spend the next six or eight months looking at options for helping the non-profits to band together. Chair Carey said that the last time the County looked at this it was far ABC employees and the County Commissioners decided against it. He said that the North Carolina Center for Non-Profits provides a plan for non- profits to buy into. Commissioner Nelson said that he thinks that the non-profits are looking for stability. He thinks that it would help to have the County facilitate the conversation between the non-profits. Commissioner Jacobs asked about the history of COLA and in-range salary increases over the last few years. Rod Visser said that there is a chart that goes back to 2000-2001. Commissioner Jacobs asked to see this chart. Commissioner Jacobs reminded the County Commissioners that one reason the meritorious pay was dropped was because there was one department with fewer than ten employees where everyone was meritorious and one department with over 100 employees where one was meritorious. Before he ever votes to reinstate this, he would like the Manager to develop some criteria. Laura Blackmon said that she has plans to evaluate the performance evaluation plan. Also, the supervisors need to be trained on how to do evaluations. Commissioner Jacobs said that he would like to know what the County's neighbors are doing. He would also like to see the executive summary of the Condrey report to refresh his memory about what was recommended. There were also some issues with the health insurance and employee dissatisfaction about how medication was paid for. He would like some input from the Employee Consortium on whether there are any problems with the health insurance. Laura Blackmon said that she has not heard any complaints. She would like to do an employee satisfaction survey on various benefits as a precursor to the pay and benefits study. Commissioner Jacobs agreed with Commissioner Nelson's idea of bringing all of the non-profits together to help them. Since the County gives most of the non-profits money, there may be some leverage. He would like to talk about whether the County can have expectations, or whether it is just a conveyor of funds. Commissioner Gordon agreed with Commissioner Jacobs about getting charts on previous COLAs and information on what our neighbors are doing. She would also be interested in the backup information on how employees get rated outstanding, exceptional, proficient, needs improvement, etc. 4. Vacant Positions Laura Blackmon went through the yellow sheet of Orange County Vacancies as of June 1, 2007. She said that she likes to look at vacant positions and find out why there might be difficulty in hiring the position. She will be looking at assisting departments and why they cannot fill the positions. Regarding Cooperative Extension, there have been some changes in the arrangement with the State and perhaps the FTE is not necessary. Commissioner Gordon asked clarifying questions about the 96% budget for payroll. Laura Blackmon explained the justification far this. She said that there is a lot of time spent processing paperwork regarding the 120-day waiting period. She is recommending budgeting 96% in lieu of the 120-day waiting period. Donna Coffey said that the savings of budgeting 100% and 96°lo is $1.3 million. The budgeted savings from the 120-day waiting period is $1.2 million. Chair Carey said that the savings is not that much after the labor when tracking, etc. is factored in. Commissioner Jacobs said that it is approximately a financial wash to budget 96°~. Laura Blackmon said that the $1.3 million savings is what she is recommending to finance the 3% COLA and the 1 % and 2% on in-range salary adjustments. Chair Carey asked why some of the positions were still listed when they have not been filled in a really long time. Laura Blackmon said that she wants to look at this. She said that she is not fond of having FTEs on the books if they are not intended to be filled. Chair Carey wants to establish a policy of taking these positions off if they are no longer useful. Donna Coffey said that there is no policy in place, but last year during the budget process, the County Commissioners eliminated various FTEs because they had not been filled. The Board indicated their intent to remove some unfilled positions, including the Cooperative Extension position and others. Laura Blackmon said that when the pay and classification study is done, she would like to look at the temporary title that is used. She said that some of the temporary positions are part-time and some are seasonal. Some of the positions are truly temporary. She said that using the temporary category as acatch-all phrase for these types of positions is misleading to a certain extent. She does not think it is fair to some of the employees who have part-time, permanent positions. She would like to look at these positions and redefine the use of the temporary positions. Commissioner Faushee asked far information on the number of temporary employees in each department. She has been asking for this information for two years. Laura Blackmon said that some of that is a snap-shot. She wants to keep a true accounting of this temporary work force. Commissioner Jacobs said that there need to be standards and definitions for temporary employees. Regarding overtime, Laura Blackmon said that this is being revamped to follow the federal guidelines. There are overtime issues in some departments. Commissioner Jacobs made reference to the $1.3 million savings for budgeting 96°~ payroll. He said that he heard $1.2 million and also $1.5 million and administrative costs. He would like specific numbers on what the 96°~ is going to save versus what 120 days is going to save. Chair Carey said that if there are specific changes that the Board wants the staff to incorporate, then it should be clear at each work session. Problems and issues should be raised at each meeting and not all at the end. Laura Blackmon said that she would like to have budgeting policies for positions. ~. Workers Compensation Rod Visser said that this is a follow-up from the discussion at the work session on May 17t". In recent years, Orange County has experienced a pattern of substantial increases in annual premiums for Workers Compensation insurance. As recently as 2001-02, the County's premiums were around $250,000 a year. The recommended budget for 2007-08 is over $1 million for this. The County's insurer has urged the County staff to look at the current policies and practices related to administering this program to see if there are measures that could be taken to reduce some costs. The basic requirements of the State of North Carolina's Industrial Commission are that employers have to insure that employees injured an the job receive medical treatment without cost to the employee, employees are paid 2/3 of their salary for all time lost beyond seven days, treating providers have to follow the direction of the plan's manager, and employers will not retaliate against employees who file workers compensation claims. Orange County's practices over the years have evolved so that it is much more generous in some areas than the minimums from the State. Orange County pays people who go on workers comp 100°~ of salary as opposed to 2I3. He understands that Orange County is the only county in the State that does this. All of the benefits continue to accrue while someone is out on workers comp. There is a provision for providing light duty, but it is very difficult in many departments to find something that is light duty. The insurers have said that the County has to demonstrate before the end of the fiscal year that it is trying to take active steps to change the practices and rein in the costs. The staff will try and prepare an agenda item before the June 26th agenda to ask the County Commissioners to provide the staff with same direct policy guidance on these issues. Chair Carey said that he did not know Orange County was paying 100%. He said that this is no incentive for employees to get well. Rod Visser said that if changes were made, it would not affect anyone who is currently on workers comp. He said that Orange County needs an effective return to work program. Purchasing and Central Services Director Pam Jones said that workers comp claims across the State have increased considerably, but Orange County is the only one that gives such liberal benefits. She clarified that light duty could be done in any place in the County and it does not have to be done in the same department. Laura Blackman said that there has been some educating of department heads, and there will be a safety and an educational program. 6. New Staff Attorney Laura Blackmon made reference to the vacant Communications Specialist position in the County Commissioners' Office and said that her understanding was that this was a position that the Board wanted to keep for the possibility of filling at a future time, but the practice has been not to fill this. She has been in discussions with Clerk to the Board Donna Baker about utilizing this position. There have been discussions about the possibility of moving this FTE to the Manager's Office for either a Staff Attorney ar a Public Information Officer. Laura Blackman said that she has met with Geof Gledhill several times to talk about the types of duties the staff attorney would perform, particularly in light of his pending but undetermined retirement. Since it is an existing FTE, it was not on the list of recommended positions, but she would like to discuss this. She asked far Board direction. Donna Coffey said that there is $100,000 set aside in the Manager's Recommended Budget for this function of staff attorney. This was the estimate in 2004 for salary and equipping the person for work (office supplies, etc.). Commissioner Foushee said that she would like to see the responsibilities that the Manager and the County Attorney have discussed. She said that, knowing that there has to be a smooth transition when Geof Gledhill retires, it is imperative to move towards filling that position. Chair Carey said that the Board was supposed to have a discussion about what is meant by staff attorney and whether the Board would hire it or the Manager would hire it. Commissioner Foushee said that she thought that this was a Manager's position. Laura Blackmon said that the information that she had was that she would do the evaluation and the position would grow into the position of a county attorney. Commissioner Gordon said that this position should be worked out in the fall. She suggested taking one of the FTEs that is not currently filled and assigning the reserve to it. Commissioner Jacobs said that he thinks this has already been worked out, because he has a recollection of it. Commissioner Nelson suggested working this out after the summer break with the job description, etc. Commissioner Gordan would also like to work out the water resources position ar positions, because there is also a reserve set aside for this function. 7. New Staff Proposals Laura Blackman referred to the light pink handout {Appendix E-2} of new staff proposals and the hat pink handout of new staff not recommended far this year. Information Technology -Systems Analyst (increase in FTE from 0.6 to 0.7): Laura Blackman said that this person has been working the additional hours, and this would make it official. Commissioner Gordon asked why there is no increased cost and CIO Todd Jones said that this has been funded on a year-by-year basis. This is a request to make the permanent change rather than a temporary change year-by-year. It has been budgeted in the IT budget each year. Health -Environmental Health Specialist (Food and Lodging) Environmental Health Specialist (Well Construction Program) Environmental Health Technician (Well Program and Indoor Air Quality) Commissioner Nelson made reference to the well construction position and said that he had some involvement in this statewide program coming into existence. He asked some clarifying questions, which were answered by Health Director Rosemary Summers. Commissioner Nelson said that the six or seven visits given in the job description is going way beyond what was asked for. He wonders if the NCACC has voiced concerns about how expensive and complicated the rules have gotten. Rosemary Summers said that the rules would be approved by the Commission for Health Services. There will be a public comment process. Commissioner Nelson asked for a copy of the draft rules. He said that he is not sure about having to create a new position just for a set of rules that goes way beyond what is expected or requested. Rosemary Summers said that she is also concerned with the parameters that the State is requiring for the water testing and that they are quite extensive. This will mean more elevated results in some areas. Commissioner Jacobs verified that there are one and a half positions for this initiative. Rosemary Summers said that the other half of the position, which is the Environmental Health Technician, is one of the temporary positions that the department is requesting to make permanent. Commissioner Jacobs asked why the position is being funded for a full year if it would not start before January 1St. Rosemary Summers said that recruitment typically takes between six and nine months. If an intern is hired, there is a 12-1$ month authorization process and training before they are qualified to work in the field. Because of the well program going in around the State, it is anticipated that there will be a severe shortage of Environmental Health Specialists across the State. She is anticipating hiring an intern and going through the qualifying process. Commissioner Jacobs made reference to the food and lodging position and asked about the penalties for not following the State mandates. Rosemary Summers said that the penalty would be that Orange County would not meet the program standard for accreditation. It is a legislative mandate to have the accreditation process. It is not good public health to not have the restaurants be 100% inspected an time. Commissioner Jacobs painted out that only 3.6 of the 9.1 positions are taxpayer-funded positions. The others are mandated or are being funded from outside sources. He thinks that this is a miscommunication to the taxpayers. He would like to be more specific. Commissioner Gordan said that she needs more information on these Health Department positions, including the date the positions are being implemented by the State. Commissioner Jacobs would like to know what is involved in the timing and if there are penalties if the positions are not started by a certain time. Rosemary Summers said that there has been a shortage of positions in the past. The result will be not getting to citizens in a timely manner. At this time, there is a waiting period of two to three weeks. The rules will go into effect and permits will not be issued unless the rules are followed. The consequences are that the delay in service may be 6, 8, or 10 weeks. The last time this happened, the County Commissioners were hearing directly from the public about the delay. Senior Public Health Educator Laura Blackmon said that this was one of the positions that she did not recommend. There is a federal grant far this program, but it ended last September. The County was funding $24,000 for the position. Medical Office Assistant (1.0 FTE), Primary Care Clinician Team (3.0) These positions were not recommended. They are being filled by temporary employees at this time. Recreation and Parks -Athletics Program Supervisor Park Conservation Specialist (Turfgrass Manager) Park Conservation Technician II These positions are associated with the opening of the West Ten Soccer Complex and Northern Park. The positions are phased throughout the year. Originally, Recreation and Parks Director Lori Taft had asked for three positions for each facility for a total of six. The Manager's recommendation is less. Commissioner Jacobs asked which two Lori Taft would pick if the County Commissioners only funded two. Lori Taft said the first two. Commissioner Gordon asked when the facilities were scheduled to be open. Lori Taft answered that the West Ten Soccer Complex should be open in August 2008, but the grass part will be going in this August. Northern Park should be open in late winter or spring 2008. Social Services -Economic Services -Income Maintenance Caseworker II Social Worker II (School Social Worker at Gravelly Hill) Chair Carey asked about the difference in offsetting revenue and Social Services Director Nancy Coston said that the arrangement with OCS is that the County sees the children and any of the children identified for the Medicaid At Risk program are billed to Medicaid and OCS is billed the difference. It is always a zero cost to the County, but it can vary. Housing and Community Development -HOME Program Coordinator There were no questions about this position. Commissioner Jacobs made reference to the agenda for the June 18th work session and Non-Profit Agencies including request for additional funding from KidsCope. He said that Club Nova came to the public hearing and asked far additional funding. Laura Blackmon said that so far there is nothing in writing from Club Nova. She will check on this. Commissioner Nelson said that, in the future, he thinks that there should be versions of the budget -one with a zero tax increase and one with the Manager's recommendations, starting in December or January. Commissioner Gordon asked that the agenda materials for the upcoming meetings be given to the Commissioners at least two days before the meeting. Commissioner Jacobs said that it helps him to see what the Manager's priorities are before fully funding what was discussed in January. He wants to know what the Manager would cut in priority order. He said that the school systems are forced to go through the process, and he thinks the County should go through the same process. Laura Blackmon said that this budget is a continuation of last year and what the Board approved as priorities. She plans to start prioritizing programs. Commissioner Nelson said that all of the upcoming meetings are already filled with "stuff" and there is very little time left for the Board to talk as a group and make some decisions. He is frustrated with the number of meetings that have been crammed into a month. Cammissianer Gordon agreed that the Board needs a meeting to work and talk. Laura Blackmon suggested maybe changing the schedule. She does not think that staff functions well in this method. Commissioner Jacobs said that if some of the stress is relieved in the way in which the County works with the schools, he thinks the whole process will change. For example, the public hearings are right in the middle of the budget deliberations, and this adds stress. Chair Carey said that in past years the Board has asked the Manager to present what the Manager would recommend based on cutting the Manager's recommendation by one or two cents. He would like to look at least at a one-cent cut by the next meeting. 8. Adjournment A motion was made by Commissioner Nelson, seconded by Commissioner Jacobs to adjourn the meeting at 10:10 PM. VOTE: UNANIMOUS Moses Carey, Jr., Chair David Hunt Deputy Clerk to the Board