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HomeMy WebLinkAbout04-08-1996 Meeting I I I FINANCE & APPROPRIATIONS COMMITTEE COMMITTEE ROOM - April 8, 1996 2:00 P. M. PRESENT: Hons. J. Brigham, Chairman; Handy, Vice- Chairman; Bridges and Beard, members; A. B. McKie, Jr., Interim Comptroller; Charles Dillard, Interim Urban Services Administrator; Linda Beazley, Interim Suburban Services Administrator; Glenn Greenway and David Collins of the Finance Department; Lena Bonner, Clerk of Commission-Council and Nancy Morawski, Deputy Clerk of Commission-Council. ABSENT: Hon. Larry E. Sconyers, Mayor. Also Present: Wayne Partridge and Sylvia Cooper of the Augusta Chronicle, George Eskola of WJBF Television and Gale Mino of WBBQ Radio. Communication from the Richmond County Board of Tax Assessors requesting approval of a recommendation for a refund of taxes in the amount of $179.88 for Harold V. Woodward, was read. Mr. Handy: I move it be approved. Mr. Bridges: Second. Motion adopted unanimously. Communication from Georgia Bank & Trust Company of Augusta requesting the waiver of a penalty in the amount of $257.73 regarding the late payment of real estate taxes on property located at 3133 Washington Road formerly owned by Georgia Federal Savings, was read. Mr. Chairman: The tax bill was directed to the wrong address. Mr. Handy: I so move. Mr. Bridges: Second. Motion adopted unanimously. The Committee next discussed the first quarter financial reports. Mr. McKie: We are in fairly good shape. at or slightly above what we had predicted and in most areas are running two to three percent level that we normally expect. We will have a report on Tuesday. Revenues are expenditures below the 25% more detailed Mr. Bridges: I move we receive it as information. Mr. Handy: Second. I Motion adopted unanimously. Communication from the Interim Comptroller stating with the substantial amount of capital improvements arising out of consolidation and the Special 1% Sales Tax Program it is prudent for the new government to have a strict policy for change orders and their approval process. This policy should not only include contracts from outside vendors, but embrace all projects to include those done in-house by departments such as Central Services and County Forces. Attached is a generic Change Order request form. This form must accompany any cover letter being placed on the agenda so that all parties involved have a clear understanding as to the nature and financial impact of the change order. As most change orders involve an increase in funding requirements, even if it is from contingency on the project, the Finance Department should review and endorse the change order before it goes on the agenda. Once the Commission- Council adopts this policy all departments will be sent a copy of the Change Order form with instructions for its use, was read. After a short discussion, Mr. Handy: I move it be approved. Mr. Bridges: Second. Motion adopted unanimously. I Communication from the Financial Analyst stating after reviewing the Consolidated Banking Request for Proposals received March 20, 1996, I would recommend that Allied Bank of Georgia be selected as the consolidated banking account for Augusta- Richmond County. The concept of a consolidated banking program is to save money on bank charges while earning more interest on available balances contained in these accounts. All checks would be written from four sub-accounts - Urban Vendor, Suburban Vendor, Urban Payroll and Suburban Payroll. Deposits would be made into a zero balance account maintained for the Urban and Suburban Service Districts. These two zero balance accounts would fund each district's vendor and payroll sub-accounts. Each night the zero balance accounts would be emptied into a main concentration account that would be swept into overnight investments. The interest earnings would be allocated to each district's zero balance account based on daily balances in each account. The investments plus interest earnings would be placed back into the concentration account each morning and used to fund checks that clear the sub-accounts. Allied's proposal calls for no services charges or minimum balance requirements on any of the accounts maintained. The only charges associated with this arrangement would be outgoing wires. This would mean I that all daily balances would be invested with absolutely no money used to fund the accounts sitting idle - not earning interest. This would also correct the anticipated summer I I I shortfall of funds in the Urban Service District. Money that normally would be invested by the Suburban Service District would instead be used to fund the Urban Service District. The Urban Service District would be charged an interest cost based on the interest forgone by the Suburban Service District. This would substantially reduce the interest and transaction cost associated with external borrowing of the Urban Service District, and also reduce the wiring cost associated with funding this account at another bank. I have attached all the bids received and also a conceptual illustration on the flow of funds, was read. Mr. Bridges: I move that we approve the structure as given. Mr. Handy: Second. Motion adopted unanimously. Mr. Collins: I would recommend the bid of Allied Bank and suggest a two-year contract with an option to renew for one additional year. Mr. Handy: I move that we accept the recommendation. Mr. Beard: Second. Motion adopted with Mr. Bridges abstaining. Communication from the Interim Comptroller stating the Accounting Department is receiving a number of invoices presented for payment for which no purchase orders have been issued. Richmond County has a policy of requiring that purchase orders be obtained for contractual agreements as well as the normal purchase of consumable goods (see attachment). This practice insures budgetary control and assures expenditures are subsequently charged to the proper accounts. With the consolidation of the City of Augusta and Richmond County it is recommended that the Commission-Council reaffirm this policy to all departments, agencies and elected officials of the new government. All department heads are to submit pertinent information to the Purchasing Department to obtain a Purchase Order for the total amount of the contract approved by the Commission-Council and normal purchase of consumable goods prior to the actual purchase. Since it is ultimately the Accounting Department that bears the brunt of the blame when an outside auditor's management letter cites "improper payment of invoices without authorization" this policy must be strictly enforced. Accounting will present all invoices without proper Purchase Order authorization to the Comptroller on a case-by-case basis and an explanation will be sought from the responsible department, was read. Mr. McKie: We are requesting that we follow the Suburban Service District policy requiring a department to get a purchase order before any commitment is made to purchase and without the purchase orders, the County would not process anything for I payment. We previously required vendors to call in and see if funds were available for a purchase but with our much larger government and twice as many people attempting to make purchases, we recommend that a purchase order be obtained first before any purchases are made. Mr. Bridges: I make a motion the policy be accepted. Mr. Handy: Second. Motion adopted unanimously. Mr. Chairman: There is one item to add to the agenda. This is the leasing of the 800 series radios for public safety and the financing thereof. Mr. Handy: I move that we add this to the agenda. Mr. Beard: Second. Motion adopted unanimously. Mr. McKie: The focus regarding consolidation in public safety has been on vehicles and radios since we have different radio systems. We have budgeted these items but did not budget specifically for lease or purchase. However, after reviewing the lease rates that Motorola was offering us, we found them to be almost as low as if we had gone out on the bond market. This is very reasonable so we would prefer to lease in the four to five year range in order to conserve our capital budget this year for any contingencies that come up. It gives us a little more flexibility. The total will be about $1,042,000. I Mr. Bridges: I make a motion we accept the recommendation of the Comptroller and lease these as opposed to an outright purchase. Mr. Handy: Second. Motion adopted unanimously. ADJOURNMENT: There being no further business, the meeting was adjourned. Lena J. Bonner Clerk of Commission-Council NWM I