Okaloosa County BOCC — February 12, 2013 (meeting #1122) — reading text

been replaced at the rate required to maintain efficient operations. The Department has an established five year vehicle replacement plan; a combination of restricted rate modeling and a moratorium on new vehicle purchases throughout the County has prevented annual execution of this plan. This has resulted in an increased number of service orders. Packet Pg. 14  2.a BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: February 12, 2013 TO: Honorable Chairman and Members of the Board FROM: James D. Curry SUBJECT: Look Ahead on Staffing, Projects and Infrastructure Needs DEPARTMENT: County Administrator BCC DISTRICT: ALL In preparation for discussion and approval of the FY 2013-2014 Okaloosa County Strategic Plan, an examination of the priorities for future projects and operating expenses provides a forward- looking picture of Board of County Commissioners’ Departments. The attached report captures the needed expenses necessary to sustain existing staff, infrastructure, and resources; as well as the additional expenditures required to prevent deterioration of resources or potential disruptions of services. Recognition of the County's future expenses provides support for revenue sourcing. Staff recommends the board review the report. RECOMMENDED BY: APPROVED BY: James D. Curry, County Administrator Packet Pg. 15  2.a.A LOOK-AHEAD ON BOARD STAFFING, PROJECTS, AND INFRASTRUCTURE This report provides a snapshot of significant actions needed in the areas of Attachment: 2013-2014 Look Ahead (1361 : Look Ahead on Staffing, Projects and Infrastructure Needs) staffing and compensation, infrastructure improvements, and fleet status, along with significant planned projects Fleet Vehicles The Okaloosa County Board of County Commissioners has a very busy fleet of 361 vehicles. The average miles traveled per day by the BCC fleet is 11,500 miles. That is 350,000 miles per month. Even with a very conservative goal of replacing vehicles when they reach 150,000 miles the BCC departments are wearing out 2 to 3 vehicles per month. Or in other words, the BCC fleet needs around 30 replacement vehicles per year. In the past five years there have been a total of only 14 new replacement vehicles bought. Prior to 2008 the county was replacing vehicles every 100,000 miles. Therefore county fleet was in good condition in terms of miles and age when the years of cutbacks began. Fleet Operations also used reassignment of low usage turn-ins to offset lack of replacements purchased. Those factors have enabled the departments to continue vehicle operations, albeit with a steady decline in quality, for the past six years. Now all buffers are gone and the fleet is in very poor condition. There are 203 of 361 vehicles with odometer reading in excess of 100,000 miles. Class Units in Fleet Over 150K Miles Over 175K Miles Over 200K Miles Ambulance 19 13 10 7 Sedan 12 1 1 0 SUV 38 3 1 0 Passenger Van 20 4 0 0 Work Truck & Van 209 32 21 8 Heavy Truck 63 25 19 16 361 78 52 31 The average vehicle in the BCC fleet is a 2003 model with 115,000. With a 150,000 mile replacement goal the average vehicle should be a 2007 model with 75,000 miles. In 2012 these 78 worn out vehicles consumed 35% of the vehicle repair budget. Packet Pg. 16  2.a.A Fleet Equipment The County’s construction and maintenance fleet has 363 units. These consist of 188 motorized units, 18 batwing mowers, 128 trailers, and 29 miscellaneous units. Attachment: 2013-2014 Look Ahead (1361 : Look Ahead on Staffing, Projects and Infrastructure Needs) The BCC’s equipment fleet allows the departments to perform a very wide range of tasks. Equipment sizes and costs vary over a very broad spectrum of functions and purposes. Motorized units include dozers, excavators, loaders, graders, chippers, hay blowers, compressors, tub grinders, trenchers and pumps just to name a few. Trailers in the fleet include semi tankers, lowboys, and dumps along with 117 medium and small equipment hauling units. In the past five years there have been only 16 replacement units bought. Replacements in the Road Department have included eight graders, a paver, two tractors and three batwing mowers. Water and Sewer replaced one excavator and Parks replaced one Dingo utility unit. Several key pieces in the Road Department are worn out. Eleven pieces of motorized equipment and four batwing mowers need replacing. These are units that are mission critical that have become unreliable and very costly to repair. The motorized equipment needed includes: Class Over 5000 Hours Over 7500K Hours Over 10000 Hours Loader 2 2 1 Grader 3 1 0 Crane 1 1 1 Excavator 2 0 0 Pump 1 0 0 Tractor 1 0 0 Boom Axe 1 0 0 11 5 2 The average piece of motorized equipment in the BCC fleet is a 2002 model with 2200 hours. The equipment fleet is at an acceptable level in terms of age, hours, and condition except for these few key pieces of equipment. In 2012 these 11 motorized pieces and the four batwing mowers consumed 20% of the equipment maintenance budget. Human Resources/Risk Management Packet Pg. 17  2.a.A Compensation In 2005, the Board approved a new Pay and Classification Plan that included employee merit compensation of 1% to 3% annually. The Board voted to discontinue merit increases beginning Fiscal Year 2009 through present. The last Attachment: 2013-2014 Look Ahead (1361 : Look Ahead on Staffing, Projects and Infrastructure Needs) market adjustment was awarded in Fiscal Year 2009 in the amount of a 2% increase. For discussion purposes, $634,314 ($219,081 – General Fund, $148,279 – Enterprise Fund and $266,954 – Constitutional Officers) is required for each additional 1% increase for either merit or market adjustment for employees of the Board and Constitutional Officers. Beginning on July 1, 2011, the Florida Retirement System (FRS) became contributory. All employees, excluding DROP participants and rehired retirees ineligible for reenrollment in the FRS, were required to contribute 3% of their earnings toward their retirement. On July 5, 2011, the Board approved a 3% pay increase for employees affected by the new FRS requirement, effective the fourth quarter of Fiscal Year 2011 and the entire Fiscal Year 2012, which has remained in place. In March 2012, a Leon County circuit judge blocked the 2011 legislation requiring public employees to contribute 3% toward their retirement. The judge ruled the state should repay workers for the value of their contributions, plus interest, and also blocked provisions limiting cost-of-living adjustments for employees who were part of the Florida Retirement System before July 1. However, on January 17, 2013, the Florida Supreme Court, in a 4-3 decision, ruled against state workers and allowed the state to retain the 3% levy on worker salaries. Furloughs As the Board looked for alternatives to layoffs during these tough economic times, there was another option to cut costs that has been considered, but not implemented - furloughs. In the context of budget cuts, the “save money” furlough is a planned event by an agency which is designed to absorb reductions necessitated by downsizing, reduced funding or any other event which requires an agency to save money. However, programs like these are generally implemented to resolve immediate, short-term funding shortages and unless implemented year after year until funding returns, do not fully address the shortfall. During Fiscal Year 2013 budget discussions, it was estimated that a one – eight hour furlough could save the General Fund $72,955. The entire furlough white paper completed in March 2012 can be obtained from the Human Resources Department. Packet Pg. 18  2.a.A Staffing Since Fiscal Year 2008, a total of 137 positions have been eliminated from Board staff. These reductions have been as a result of attrition, layoffs, countywide reorganization as well as three (3) Voluntary Separation Incentive Programs Attachment: 2013-2014 Look Ahead (1361 : Look Ahead on Staffing, Projects and Infrastructure Needs) (VISP) offered in Fiscal Years 2008, 2010 and 2012. BCC Total Employees 920 900 880 860 840 820 800 780 760 740 Through the countywide reorganization in Fiscal Year 2012, the Corrections Director position was eliminated along with the entire Administrative Services department budget including the positions of Assistant County Administrator and Executive Assistant II saving approximately $347,300 annually. Departments formerly reporting to the Assistant County Administrator were redistributed among the Public Works, Public Safety and Human Resources Directors. Positions affected by the reorganization were reviewed by The Mercer Group, Inc., an external consulting group. The Mercer Group’s final recommendation indicated pay increases were appropriate for some of the positions affected by the reorganization. However, due to the County’s budget challenges, no pay considerations were included in the Fiscal Year 2013 budget; but were deferred to Fiscal Year 2014 budget discussions. In 2008 the Board offered its first Voluntary Separation Incentive Program (VSIP). Full-time employees receiving contributions through the Florida Retirement System (FRS) not scheduled to terminate DROP in calendar year 2008 were eligible to take advantage of the program provided they met certain age Packet Pg. 19  2.a.A and/or service requirements. The program