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HomeMy WebLinkAbout05-13-1996 Meeting I I I FINANCE & APPROPRIATIONS COMMITTEE COMMITTEE ROOM - May 13, 1996 2:00 P. M. PRESENT: Hons. J. Brigham, Chairman; Handy, Vice- Chairman; Bridges and Beard, members; Charles Dillard, Interim Administrator for Operations; Linda Beazley, Interim Administrator for Administration; A. B. McKie, Interim Comptroller; Jerry Saul, Tax Commissioner; Glenn Greenway of the Finance Department; Jim Wall, Interim Attorney; Lena Bonner, Clerk of Commission-Council and Nancy Morawski, Deputy Clerk of Commission-Council. ABSENT: Hon. Larry E. Sconyers, Mayor. Also Present: Wayne Partridge of The Augusta Chronicle, Gale Mino of WBBQ Radio and Hon. Moses Todd, Commissioner. Mr. Chairman: We have one addition from the Board of Tax Assessors regarding some refund recommendations. Would you like to add this to the agenda? Mr. Bridges: I so move. Mr. Beard: Second. Motion adopted unanimously. Communication from the Budget Analyst stating Banc One Kentucky Leasing Corporation has agreed to finance $2,028,182.65 for new police vehicles. We have used this firm in the past as their service has been excellent. The unique aspect of this financing is the terms are a little different in that the payback dates are annual deferred, for one year. In other words, we accept delivery now, pay the dealer now, do not make our first payment until May 1997. There will be two subsequent payments in May, 1998 and 1999. This arrangement is favorable in that our revenues will pick up significantly in 1997. We recommend approval, was read. Mr. McKie: We will need about 89 public safety vehicles for this year. We have two proposals for financing their purchase. Banc One Leasing out of Louisville has done all of our fire equipment at very favorable rates and G. E. Capital came in with a proposal today that is somewhat cheaper. The advantage of G. E. over Banc One is that they do not have the debt limitation that Banc One had wanted to talk about and we were going to have to meet with Mr. Wall on. G. E. Capital isn't concerned about this. We'd like to get permission to work with Mr. Wall on these contractual arrangements and accept the best financing proposal to bring to the full Commission. At this point it looks like it would be G. E. Capital. Mr. Bridges: I so move. Mr. Beard: Second. Motion adopted unanimously. I Mr. McKie: The G. E. rate was 5.75%. Communication from the Interim Comptroller recommending that we use Robinson-Humphrey as the sole investment manager for all pension plans. They currently handle the City 1949 Plan, which is by far the largest at $45 million. They have consistently demonstrated above market returns and are well versed with our investment parameters. Currently, the County Pension Plan's assets are split into three areas and must be consolidated for both efficiency and control, was read. Mr. McKie: Robinson Humphrey has performed consistently well with a 15% income since 1988 with the City's plan and we would like to transfer all of the assets of the County pension plans over to them so that we will have one manager for all the plans. Mr. Bridges: I so move. Mr. Beard: Second. Mr. Handy: Could we go out for an RFP rather than just give it to someone? I know that is going to come up. I Mr. Chairman: I don't have a problem with that but that is a good rate of return. Motion adopted with Mr. Handy voting "No". Communication from the Interim Comptroller stating in my duties as Contract Liaison with MLS, I frequently meet with MLS personnel to review operations and opportunities for cost reduction or improvement in efficiency. Over the past months and especially since inclusion of City vehicles, there are areas of concerns that have become readily apparent. First, there are significant vehicle abuse by operations which is costing many thousands of dollars per year. Second, we have many duplicate pieces of equipment in highly territorial departments, and third, when equipment is replaced it is not turned in but kept as spares thereby costing many thousands of dollars in extra maintenance expense. Addressing the first item, there are existing policies that require operators to inspect for fluids, etc. Supervisors are not enforcing current policies; nor are employees following policies. There are untold horror stories about driving without oil, overloading, and other forms of abuse. In partnership with Risk Management and MLS we will immediately begin to identify problem areas including employees, I supervisors and department directors who are responsible in addition to the cost involved. We recommend that these departments must report in person and in writing to the I I I Administrator. Also, we recommend that administration of fines be put into the policy as recommended by the Safety Review Board or other acceptable methods. Our second area of concern is the absolute territoriality of departments regarding equipment. We have too much equipment overall. Some departments are desperately in need of items while others have a surplus that is hardly ever used. We must pool equipment, schedule work and assign equipment as needed. Conflicts can be settled by the Administrator. Also, smaller items such as lawn mowers can be moved on utility trailers such as those being used by private contractors. These can be self contained units with equipment, tool racks, fuel and lubrication permanently attached to the trailer. Heavier equipment can be moved on low-boys as needed. The third item is the policy of turning surplus equipment when it is needed. Our adopted policy is that when an item is replaced the old one is to be turned in for surplus equipment. This is not being done. MLS is being asked to repair old items as spares. This policy must be enforced and the Administrator given both the authority and the power to enforce this. In summary, we must move to a level of cooperation and enforcement to deal with existing waste and inefficiency, was read. Mr. Bridges: I move we accept all three points as discussed in the letter. Mr. Beard: I second it to receive it as information. I think we should wait for any action until the structure of the government is established. Mr. Chairman: I'll second Ulmer's motion. I understand your concern but I think this is something we need to do. After further discussion by the Administrators and Committee members, Mr. McKie: Some of this could be implemented fairly quickly and some of it needs to be worked on in a little more detailed manner. Mr. Chairman: Ulmer, perhaps we just need to receive this as information right now and work on it a little more thoroughly. Mr. Bridges: I'll withdraw my motion. Mr. Beard: I'll move we receive it as information. Mr. Bridges: Second. Motion adopted unanimously. Communication from the Interim Comptroller requesting discussion regarding the Indigent Care Medical expenses, was read. Mr. McKie: We received a February bill from University Hospital of $431,000 which is roughly double what we normally get. Mr. Wall: Back in January the Commission voted to hold them to a cap of $2.5 million dollars for the calendar year. They understand that we're not going to pay any more than $2.5 million and we're keeping all the certification processes intact. Mr. Handy: I move we receive this as information. Mr. Beard: Second. Motion adopted unanimously. Communication from the Interim Attorney requesting approval of a Resolution designating certain properties as being exempt from transfer of tax execution and providing for a public hearing thereon, was read. Mr. Beard: I move it be approved. Mr. Handy: Second. Motion adopted unanimously. Communication from the Richmond County Board of Tax Assessors requesting approval of the following refund recommendations: Patrick A. Barnwell and Jill Wagner Hair, Inc., was read. Mr. Chairman: One is for a homestead exemption and the other is for removal of leasehold improvements owned by real estate owner. Mr. Beard: I move they be approved. 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 I I