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HomeMy WebLinkAbout2009-08-24-Meeting Agendawww.augustaga.gov Finance Committee Meeting Committee Room- 8/24/2009- 1:20 PM FINANCE 1. Consider a request from the David Dupree Steering Committee for city sponsorship through the purchase of tickets for the David Dupree Tribute Gala. Attachments 2. Approve costs for 2009 Christmas Light-Up Spectacular. Attachments 3. Consider a request from the Garden City Rescue Mission regarding an abatement of 2009 property taxes. Attachments 4. Consider a request from Ms. Lucia T. Rivera regarding a veteran widow exemption for the 2009 tax year. Attachments 5. Receive 2008 Audited Financial Statements from Cherry, Bekaert and Holland. Attachments 6. Approve renewal and/or Request for Proposal for Health Services Agreement for Inmates. Attachments 7. Approve resolution authorizing the settlement of all Claims in a Personal Injury, Wrongful, Death and Survivorship Claim for Dr. Ji Cheng, Decedent. Attachments 8. Consider a request from Mr. Robert Baker regarding an appeal for the relief/reduction of the school tax portion of his 2009 property tax bill. Attachments Finance Committee Meeting 8/24/2009 1:20 PM David Dupree Steering Committee Department:Clerk of Commission Caption:Consider a request from the David Dupree Steering Committee for city sponsorship through the purchase of tickets for the David Dupree Tribute Gala. Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Clerk of Commission Cover Memo Attachment number 1Page 1 of 2 Attachment number 1Page 2 of 2 Finance Committee Meeting 8/24/2009 1:20 PM Downtown Development Authority - Christmas Lights Department:Clerk of Commission Caption:Approve costs for 2009 Christmas Light-Up Spectacular. Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Clerk of Commission Cover Memo Attachment number 1Page 1 of 1 Finance Committee Meeting 8/24/2009 1:20 PM Garden City Rescue Mission Department:Clerk of Commission Caption:Consider a request from the Garden City Rescue Mission regarding an abatement of 2009 property taxes. Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Clerk of Commission Cover Memo Attachment number 1Page 1 of 2 Attachment number 1Page 2 of 2 Finance Committee Meeting 8/24/2009 1:20 PM Lucia Rivera Department:Clerk of Commission Caption:Consider a request from Ms. Lucia T. Rivera regarding a veteran widow exemption for the 2009 tax year. Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Clerk of Commission Cover Memo Attachment number 1Page 1 of 3 Attachment number 1Page 2 of 3 Attachment number 1Page 3 of 3 Attachment number 2Page 1 of 7 Attachment number 2Page 2 of 7 Attachment number 2Page 3 of 7 Attachment number 2Page 4 of 7 Attachment number 2Page 5 of 7 Attachment number 2Page 6 of 7 Attachment number 2Page 7 of 7 Finance Committee Meeting 8/24/2009 1:20 PM Presentation of 2008 Financial Audit Report Department:Finance Caption:Receive 2008 Audited Financial Statements from Cherry, Bekaert and Holland. Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Finance Committee Meeting 8/24/2009 1:20 PM Renewal and/or Request for Proposal for Health Services Agreement for Inmates Department:Finance Caption:Approve renewal and/or Request for Proposal for Health Services Agreement for Inmates. Background:Augusta, Georgia currently contracts with Correctional Medical Services, Inc. (CMS) to provide comprehensive medical care to the inmates at the Charles B. Webster Detention Facility, the Augusta- RichmondCountyLawEnforcementCenter (Richmond County Jail), and the Augusta-Richmond County Correctional Institution. This contract was dated December 3, 2002 and went into effect January 1, 2003. The original term of the contract was for one year. The contract provided that it would be renewed annually for one year terms unless either party provided written notice of non-renewal to the other party at least ninety days prior to the expiration of the then existing term. The contract has been extended for one year terms for the calendar years 2004, 2005, 2006, 2007, 2008 and 2009. Last year, there was consideration to terminate the contract and to place the contract out for bid again. However, CMS offered a deal if Augusta would renew the contract for an additional year. The original contract provides for annual increases based upon change in the United States Department of Labor consumer price index plus an additional 2% and an increase in the per diem rate for each inmate in excess of the inmate population referenced in the contract. (1,275 inmates). Last year, CMS offered to extend the contract for an additional year at no additional price increase. In other words, they would perform the same services in 2009 for the same price Augusta paid in 2008. The Commission decided to accept CMS’s offer and an amendment was entered into extending the contract through the calendar year 2009 at the same price as paid in 2008. A copy of the original contract and the amendment is attached hereto. Pursuant to correspondence dated July 21, 2009, CMS has again offered to extend the contract for an additional year and they would again forego any increases in the contract. In other words, they would perform the services required under the contract for the same costs as in 2008 and 2009. A copy of that correspondence is also attached. Analysis:As noted above, CMS has offered to perform the services under the Health ervices Agreement for the same price as previously done in 2009. This would mean that Augusta would be paying the same amount for inmate medical services for the calendar year 2010 as it did in 2009 and 2008, in other words no increase in three years. According to correspondence from CMS, this is an approximate savings of $222,338. On previous occasions when the Health Services Agreement was put out for bid, all the bids were substantially higher than paid under the previous annual contract. For example, the contract with Physicians Health Services effective January 1, Cover Memo 2001 was for a base price of $2.058 million per year. When the contract was put out for bid for a contract effective January 1, 2003, the winning bid was for a base price of $3.17 million. It is therefore possible, if not probable, that the winning bid for this contract if put out for bid this year would involve a substantial increase over the contract price currently offered by CMS for an additional one year renewal. However there is no way to know this definitively. Another consideration is the construction of the new pods at the Phinizy Road facility. These new pods are expected to be completed in November of 2010. These new pods will increase our maximum inmate capacity in the amount of 478 inmates. The Request for Proposals, as well as the Health Services Agreements are based upon the number of inmates combined in the three facilities. Based upon past experience, when the new pods are opened for inmate occupancy, our overall population will quickly increase to its maximum. Therefore, it is possible, if not likely, that the proposals will be based on the increased number of inmates in November of 2010. This may well mean that Augusta will be paying for health services for inmates (in excess of 400) for the first 10 months of 2010 who are not yet incarcerated. Under the current contract, if we exceed the inmate population provided in the contract, we pay an additional per diem per inmate for every inmate over the designated population. It would seem more economically feasible to renew the CMS contract for one more year, pay the extra per diem for the last month or two of 2010, and then re-bid the contract for the year 2011 when we have a consistent maximum population to place in the Request for Proposal and on which proposed contracts will be based. However it is possible that an RFP and proposed contracts can be drafted to somewhat minimize this concern. Financial Impact:Same as above Alternatives:See two options below Recommendation:There are two options: (1) Agree to the offer by CMS to renew the contract for one additional calendar year at same price with a termination date of December 31, 2010. Some time around the middle of 2010, issue Request for Proposals for a new contract with an effective date of January 1, 2011; or (2) Put the contract out for bid and hope that all the bids do not involve a substantially higher costs than currently offered by the existing contactor and make all efforts to draft RFP and contracts to minimize wasteful spending of taxpayer dollars due to increased populations from the opening of the new pods. Funds are Available in the Following Accounts: N/A REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Cover Memo 1 AGENDA ITEM TO: COMMISSION FROM: JAMES W. ELLISON, COUNSEL FOR SHERIFF STRENGTH DATE: July 31, 2009 SUBJECT: Renewal and/or Request for Proposal for Health Services Agreement for Inmates BACKGROUND: Augusta, Georgia currently contracts with Correctional Medical Services, Inc. (CMS) to provide comprehensive medical care to the inmates at the Charles B. Webster Detention Facility, the Augusta-Richmond County Law Enforcement Center (Richmond County Jail), and the Augusta-Richmond County Correctional Institution. This contract was dated December 3, 2002 and went into effect January 1, 2003. The original term of the contract was for one year. The contract provided that it would be renewed annually for one year terms unless either party provided written notice of non-renewal to the other party at least ninety days prior to the expiration of the then existing term. The contract has been extended for one year terms for the calendar years 2004, 2005, 2006, 2007, 2008 and 2009. Last year, there was consideration to terminate the contract and to place the contract out for bid again. However, CMS offered a deal if Augusta would renew the contract for an additional year. The original contract provides for annual increases based upon change in the United States Department of Labor consumer price index plus an additional 2% and an increase in the per diem rate for each inmate in excess of the inmate population referenced in the contract. (1,275 inmates). Last year, CMS offered to extend the contract for an additional year at no additional price increase. In other words, they would perform the same services in 2009 for the VDPHSULFH$XJXVWDSDLGLQ7KH&RPPLVVLRQGHFLGHGWR DFFHSW&06¶VRIIHUDQGDQ amendment was entered into extending the contract through the calendar year 2009 at the same price as paid in 2008. A copy of the original contract and the amendment is attached hereto. Pursuant to correspondence dated July 21, 2009, CMS has again offered to extend the contract for an additional year and they would again forego any increases in the contract. In other words, they would perform the services required under the contract for the same costs as in 2008 and 2009. A copy of that correspondence is also attached. ANALYSIS and FINANCIAL IMPACT: As noted above, CMS has offered to perform the services under the Health Services Agreement for the same price as previously done in 2009. This would mean that Augusta would be paying the same amount for inmate medical services for the calendar year 2010 as it did in 2009 and 2008, in other words no increase in three years. According to correspondence from CMS, this is an approximate savings of $222,338. On previous occasions when the Health Services Agreement was put out for bid, all the bids were substantially higher than paid under the previous annual contract. For example, the contract with Physicians Health Services effective January 1, 2001 was for a base price of $2.058 Attachment number 1Page 1 of 2 2 million per year. When the contract was put out for bid for a contract effective January 1, 2003, the winning bid was for a base price of $3.17 million. It is therefore possible, if not probable, that the winning bid for this contract if put out for bid this year would involve a substantial increase over the contract price currently offered by CMS for an additional one year renewal. However there is no way to know this definitively. Another consideration is the construction of the new pods at the Phinizy Road facility. These new pods are expected to be completed in November of 2010. These new pods will increase our maximum inmate capacity in the amount of 478 inmates. The Request for Proposals, as well as the Health Services Agreements are based upon the number of inmates combined in the three facilities. Based upon past experience, when the new pods are opened for inmate occupancy, our overall population will quickly increase to its maximum. Therefore, it is possible, if not likely, that the proposals will be based on the increased number of inmates in November of 2010. This may well mean that Augusta will be paying for health services for inmates (in excess of 400) for the first 10 months of 2010 who are not yet incarcerated. Under the current contract, if we exceed the inmate population provided in the contract, we pay an additional per diem per inmate for every inmate over the designated population. It would seem more economically feasible to renew the CMS contract for one more year, pay the extra per diem for the last month or two of 2010, and then re-bid the contract for the year 2011 when we have a consistent maximum population to place in the Request for Proposal and on which proposed contracts will be based. However it is possible that an RFP and proposed contracts can be drafted to somewhat minimize this concern. RECOMMENDATION/ OPTIONS: There are two options: (1) Agree to the offer by CMS to renew the contract for one additional calendar year at same price with a termination date of December 31, 2010. Some time around the middle of 2010, issue Request for Proposals for a new contract with an effective date of January 1, 2011; or (2) Put the contract out for bid and hope that all the bids do not involve a substantially higher costs than currently offered by the existing contactor and make all efforts to draft RFP and contracts to minimize wasteful spending of taxpayer dollars due to increased populations from the opening of the new pods. James W. Ellison Counsel for Sheriff Strength Attachment number 1Page 2 of 2 Attachment number 2Page 1 of 13 Attachment number 2Page 2 of 13 Attachment number 2Page 3 of 13 Attachment number 2Page 4 of 13 Attachment number 2Page 5 of 13 Attachment number 2Page 6 of 13 Attachment number 2Page 7 of 13 Attachment number 2Page 8 of 13 Attachment number 2Page 9 of 13 Attachment number 2Page 10 of 13 Attachment number 2Page 11 of 13 Attachment number 2Page 12 of 13 Attachment number 2Page 13 of 13 Attachment number 3Page 1 of 2 Attachment number 3Page 2 of 2 Attachment number 4Page 1 of 2 Attachment number 4Page 2 of 2 Finance Committee Meeting 8/24/2009 1:20 PM Resolution Authorizing the Settlement of Dr. Ji Cheng, Decedent Department:Finance Caption:Approve resolution authorizing the settlement of all Claims in a Personal Injury, Wrongful, Death and Survivorship Claim for Dr. Ji Cheng, Decedent. Background:See attached Resolution. Analysis:General Counsel considers it to be in the best interests of Augusta- Richmond County to resolve this matter and recommends that it pay the claimant to settle all claims of Claimant against Augusta-Richmond County arising out of the alleged facts. Financial Impact:The County Administrator is authorized to pay a total sum of Four Hundred and Ten Thousand Dollars to Mr. Chaohui Wu, individually, and as Administrator of the Estate of Dr. Ji Cheng and his legal representative at the direction of the General Counsel. Alternatives:Deny Resolution Recommendation:Approve Resolution Funds are Available in the Following Accounts: to be appropriated from Reserve for Extraordinary Losses - dbw REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Finance Committee Meeting 8/24/2009 1:20 PM Robert Baker Department:Clerk of Commission Caption:Consider a request from Mr. Robert Baker regarding an appeal for the relief/reduction of the school tax portion of his 2009 property tax bill. Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Clerk of Commission Cover Memo Attachment number 1Page 1 of 1 Attachment number 2Page 1 of 5 Attachment number 2Page 2 of 5 Attachment number 2Page 3 of 5 Attachment number 2Page 4 of 5 Attachment number 2Page 5 of 5