Okaloosa County BOCC — February 11, 2013 — February 12 Strategic Plan Workshop — reading text

February 12, 2013 Strategic Plan Workshop A Strategic Plan Workshop was called to order at 1:00 p.m. in the Crestview Courthouse. Members present were Don Amunds, Chairman; Dave Parisot, Vice Chairman; Wayne Harris; Nathan Boyles; and Kelly Windes. Also present were Gary Stanford, Finance Officer, Clerk’s Office; and Jim Curry, County Administrator. Mr. Curry stated the Board began the process of adopting a Strategic Plan several years ago. The first item on the agenda is Synopsis Report of Board Department Reduction Impacts (FY 2008-2012). The report outlines the budget and staffing reductions, by department, over the past five years. He pointed out this report focuses on county departments and does not include information on the Constitutional Officers. Mr. Curry reiterated the report details the significant changes in staffing, services, and equipment. He noted that all department heads are here today. Upon inquiry by Mr. Parisot, Mr. Curry stated cuts in the 4-H Program are because of county reductions not the University of Florida. Mr. Parisot asked Chief Corrections Officer Paul Lawson what type of money is needed to take care of essential needs for the Corrections Department. Chief Lawson replied the grand total is $872,000. He explained the jail population continues to climb and it may be necessary to come to the Board before the end of the fiscal year to ask for five more people. Chief Lawson said he is really looking at eight positions for an estimated total of $440,000. He advised that it may be necessary to re-open the upstairs area of the facility and to beef-up security. Continuing, he stated the current transport van has more than 96,000 miles on it and a new van would cost $25,000. The cost to replace four convection ovens is $12,000; replacement of sliding doors is $14,000; and cost to replace the control panel and electrical control equipment would be $395,000. Upon inquiry by Mr. Parisot, Human Resources Director Kay Godwin stated the Classification and Compensation Study is a two- pronged analysis. She said the classification aspect for the county positions is in pretty good shape. The compensation portion deals with the market value of similar positions in a geographic region. Mrs. Godwin stated that as the economy picks February 12, 2013 -1- Minute Book 68, Page Okaloosa County Board of County Commissioners up, the county could lose employees and it is important to keep on top of that information. She reported the last time the full study was conducted was 2005 and the cost for it was $64,350. Mrs. Godwin noted that the compensation portion of the study was updated in 2007 at a cost of $7,000. She stated staff did some internal analyses but was unable to continue because of recent downsizing. Mr. Parisot said he hopes the county does not start losing employees. Mr. Curry stated that he sees the exit interviews for all employees and in the last few years the reasons given for leaving have consistently been for pay increases and upward mobility. He pointed out that if you do not stay in touch with the market, you can get very far behind. Mr. Curry stated he would like to do a full study every three to four years but we have not been able to do so. He advised the State is talking about pay increases for its employees this year. Mr. Parisot asked Public Safety Director Dino Villani to come forward to address the effects of cutting back on ambulance services (from two ambulances to one) in the Destin area. Mr. Villani stated savings were realized in staff cuts when one ambulance was shut down. However, he said that he has not done an analysis comparing the costs for operation of two ambulances versus costs for one ambulance plus overtime, etc. Mr. Villani spoke about diminishing returns and maintaining a core level of service. He reported EMS shifted 650 calls to other crews and ambulances during a six-month period. When asked by Mr. Parisot if calls in Destin have decreased, Mr. Villani replied, “No, we are slammed” and need an ambulance in place. Mr. Amunds referred to a former practice of refurbishing ambulances and asked for a comparison of refurbish versus purchasing new units. Mr. Villani explained EMS went to a medium-duty chassis and there are unreliable results with remounts, saying the remounts can be done once, maybe twice. He observed that investing more money into a new unit has shown that it lasts longer. Upon inquiry by Mr. Parisot, Mr. Stanford replied that it is too early to have projections on BlueCross BlueShield insurance costs. Mr. Parisot asked Water & Sewer Director Jeff Littrell to explain what happened to the bonding rating for Water & Sewer. Mr. Littrell explained that in 2006 OCWS did a $65 Million bond February 12, 2013 -2- Minute Book 68, Page Okaloosa County Board of County Commissioners issue to build the new Arbennie Pritchett WRF and four projects related to that new facility. Bond insurance was purchased and did not require a debt service reserve. However, in 2008 one of the bond rating agencies downgraded the status from AAA to AA. Mr. Littrell said the bond counsel told them if a second agency downgrades, it would be necessary to establish a $6 Million Reserve. That second downgrade came in 2010 but staff was not made aware of it until one and half years later. He explained that it was not necessary to establish the entire amount at once. The initial payment was $3.2 Million, a second reserve payment was $1.9 Million and then a biannual payment of $652,000 was made. Mr. Curry stated the payments went into a reserve account and there is a potential for the rating to increase someday. Mr. Littrell said it is still Water & Sewer Department cash but it is restricted. The purpose of the reserve is to provide confidence for the bond holders. Mr. Boyles posed a number of questions. Mr. Littrell said he does not believe it is a breach of the bond insurance policy to lose that rating. Mr. Curry noted bond counsel was involved in this event. Mr. Littrell also answered the bond insurance is still in effect and the reserve must be maintained for the life of the bond issue which is 30 years. Major J. D. Peacock, Sheriff’s Office, reported the Sheriff’s Office shares the same concerns of losing deputies because of lack of raises and competition from other entities. He pointed to a 17% cut in the Sheriff’s budget over the past few years. Major Peacock stated the Sheriff’s primary objective is providing security for the children in the schools. He explained plans to expand the use of the Sherriff’s Posse (volunteers) and recruitment to build that program. Major Peacock stated the budget cannot continue to be cut, saying the cost for services has increased by 30% and the population of Okaloosa County has increased for the last several years. He said the overall crime rate has increased by 14% and violent crime is up 38% since 2008. Major Peacock stated the Sheriff and his staff will work with the Board on the budget process to be a good partner. Mr. Amunds asked Major Peacock to discuss possible cost savings if the Investigation Unit is moved into the unfinished courtroom at the new Courthouse Annex Extension on Lewis Turner Boulevard. February 12, 2013 -3- Minute Book 68, Page Okaloosa County Board of County Commissioners Major Peacock replied consideration must be given to customer service and having multiple contact points for citizens. He asked the Chairman if that is part of the county’s long-term planning. Mr. Parisot did not favor this possibility as a long- term option because that courtroom may be needed for judicial proceedings. Mr. Amunds commented the taxpayers are paying for the room to be heated and cooled but citizens are running all over town to conduct their business and he felt this would be a move to have more things under one roof. Upon inquiry by Mr. Parisot about having one or two courtrooms at the Shalimar Annex, Mr. Curry replied plans are still underway. He added that Major Peacock is part of the task force. Mr. Curry reported the District Court of Appeals upheld the lower court’s decision on the reverter clause. He said the county does have the right to go forward with its renovation plans. One option is to move the Sheriff’s operations out of the Shalimar Annex and possibly to the Courthouse Annex Extension. Mr. Curry said it could be years before that unfinished courtroom space is needed for another judge. Mr. Curry said he wants to clarify that the information from the Sheriff’s Office is very important. However, this Strategic Plan Workshop is for county departments and there are no other Constitutional Officers represented today. Mr. Amunds responded that all workshops are open to the Constitutional Officers. Mr. Parisot said there appears to be concerns about training and individuals maintaining their certifications. Mr. Curry replied travel for training is an easy target when cutting the budget. He assured the Board they do not want any existing certificates to lapse, saying more and more training is being conducted in- house. Mr. Curry stressed the emphasis on training has not lessened, there is only a shift in the approach. Mr. Curry stated Item #1 on the agenda is more of a look back. Item #2 is more about looking ahead. Key areas of operations have been identified: Fleet Operations (vehicles and equipment used by staff), Human Resources (terms of compensation), IS (computers), and Public Works (infrastructure needs). The emphasis on the following presentations will be on what is needed to rebuild the various systems and to identify immediate needs versus long-term needs. February 12, 2013 -4- Minute Book 68, Page Okaloosa County Board of County Commissioners Fleet Operations Mr. John Vaughn, Fleet Manager, reported the county has a busy fleet. There are 361 vehicles and the average miles traveled per day by this fleet are 11,500 miles. He advised there are 78 vehicles with more than 150,000 miles on them. In the past five years, there have been only 14 new replacement vehicles purchased. Prior to 2008, the county replaced vehicles every 100,000 miles. Mr. Vaughn said the average fleet vehicle is a 2003 model with 115,000 miles. He stated that in 2012 the 78 worn out vehicles consumed 35% of the vehicle repair budget. Mr. Vaughn also pointed out that 13 of the county’s 19 ambulances have more than 150,000 miles. Mr. Vaughn said a similar situation exists regarding fleet equipment. He informed the Board that many of the heavy and light trucks are approaching 300,000 miles. Mr. Vaughn stated there are 14 pieces of heavy equipment which should be replaced. He said the cost to replace 78 vehicles and 14 pieces of heavy equipment is $6,320,000. Mr. Vaughn proposed a ten-year plan to replace vehicles and equipment, expending $2.5 Million each year. He stated this will allow the Fleet Department to cycle out bad vehicles which are currently in the county’s fleet. Mr. Vaughn reported the department is spending more to repair vehicles than what they are worth. Human Resources Mrs. Kay Godwin, Human Resources Director, stated the last across-the-board pay adjustment was October 2008. She advised that each additional 1% increase for the Board and the Constitutional Officers would be $635,000. Mrs. Godwin said the only other pay adjustment to employees was made in July 2011 when a 3% FRS contribution was passed along to the employees. The Board did approve a 3% increase for employees to compensate for this state law. Mrs. Godwin pointed out county employees continue to fall behind. Mrs. Godwin said HR has provided information on furloughs. She stated it is a temporary measure. Since 2008, Mrs. Godwin said 137 positions have been eliminated from the