COMMITTEE ON BUDGET AND APPROPRIATIONS

MINUTES

JULY 1, 1996

ATTENDANCE:

B & A MEMBERS: Swanson, Wishnie, LaMotte, Delfino, Abinanti

OTHERS: Law Dept.: Marilyn J. Slaatten, Denise D’Ambrosio; C.E.’s Office: Gina Angiulo; WCMC: Ed Stolzenberg, Fred Miller, Barbara DeCesare, Lois Allen; Health Dept.: Karen Kelly, Patsy Yang-Lewis; Amy Paulin; Budget Dept.: Joe Phelan, Tom Coleman; CBAC: Barbara Strauss, George Hosey; Legislator Carsky; BOL: Robert J. Boland, Don Sandford, Glenn Guzi, Dan Rodriguez, Tina Seckerson

Co-Chairs Swanson and Wishnie called the meeting to order at 3:15 p.m.

DISCUSSION: (There is a cassette tape on file for more detailed information):

Minutes: On motion of Legislator LaMotte, seconded by Legislator Swanson, the motion to approve the Minutes of June 26, 1996, as amended, (typo) was carried by a vote of 4-0. (Legislator Abinanti out for vote)

5.* COUNTY ATTORNEY: Proposed Act authorizing the County Attorney to institute legal proceedings to recover amounts due for hospital services. (6/17/96) (Also referred to

• The county Attorney stated that if the Committee wanted particular names she would give them in Executive Session.
• The amounts due range from $11,550. - $61,971. The County Attorney ran down a list of where the patients are from - most are not from Westchester County.
• All pre-suit efforts to collect the amounts due have been exhausted.

On motion of Legislator LaMotte, seconded by Legislator Swanson, the motion to approve this item was carried by a vote of 4-0. (Legislator Abinanti out for vote)

6.* COUNTY ATTORNEY: Proposed Act authorizing the County Attorney to settle the lawsuit of Arturo Santana, an infant by his father and natural guardian , Angel Santana and Angel Santana, individually, against Westchester County Medical Center, et al. (6/17/96)

• The County Attorney stated that the information in the legislation is public but would like to go into Executive Session to give the Committee more details.

On motion of Legislator Swanson, seconded by Legislator Delfino, the motion to go into Executive Session to discuss pending litigation at 3:20 p.m. was carried by a vote of 4-0. (Legislator Abinanti out for vote)

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On motion of Legislator Abinanti, seconded by Legislator Swanson, the motion to come out of Executive Session was carried by a vote of 5-0.

• Mr. Abinanti asked the County Attorney if, in general terms, there is conflict for a legislator to vote on a settlement of a lawsuit involving a medical professional/employee from whom the Legislator has previously received medical advice and/or benefit of a political contribution to a political campaign supporting him/her. He also asked if a it would be a conflict of interest for a Legislator to vote to initiate a lawsuit/settlement for collection of money on behalf of the County against an individual whose identity is unknown to the Legislator and who is known only by initials. Ms. Slaatten asked that this request be put in writing and she would be happy to look into it.
• The Committee asked that it be noted that there is no indication as to who the people in Item # 5 are and no one asked for their names.

On motion of Legislator Swanson, seconded by Legislator LaMotte, the motion to approve this item was carried by a vote of 5-0.

30. COUNTY EXECUTIVE: Proposed Act amending the 1996 County Current Operating Budget (+$1,404,138 - WCMC) (3/25/96)

• Breakdown: $16.50 Raw Space

1.75 Buildout Cost

1.00 Electricity

2.00 Operating Costs

.82 Administrative Charge

• Commissioner Stolzenberg stated that everyone will be charged the same amount. He stated that the $1.75 was the figure consistently used throughout the discussion on the Bradhurst lease. The $16.50 figure is inclusive of real estate taxes and exclusive of any of the building operating costs. $2.00 was added on for all maintenance, housekeeping, and operating costs of the building, which brought it to $18.50. On top of that $1.75 was added for build-out costs. Mr. Abinanti stated that that was not what he understood was going to be the cost of the building at the time he voted for the Pepe lease. Mr. Abinanti said that he understood that the lease that had been negotiated, until Studley looked at it, was going to be $18.50 per square foot. When the BOL did not like it, it was rearranged to be $16.50 per square foot. Mr. Abinanti stated it was his understanding that the difference between the $16.50 and $18.50 was $2.00 that represented the maintenance, which we were going to assume rather than the landlord. Mr. Abinanti said that he was under the impression that the reason we wanted to assume the maintenance was that we could do better than the $2.00 per square foot and do it for $1.75. Commissioner Stolzenberg stated that the $18.50 had real estate taxes built into it. He reminded the Committee that Studley stated that it was in a volatile real estate market and that was the thing most subject to increasing. Then the real estate taxes were added into the base rent at $16.50. There was concern among the BOL that if maintenance was left to the landlord we would be subject to whatever he wanted to do so the Medical center agreed to take over the maintenance at a fixed amount of $2.00 (inclusive of landscaping, snow removal, general maintenance of the building, and housekeeping). He mentioned that Studley criticized the maintenance fee as being too low.

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• Mrs. Swanson stated that it was her recollection that the $1.75 buildout charge was for medical office space only. The Commissioner stated that if the theory is that the building is worth, on a lease basis, $16.50 per square foot - raw space - then the $1.75 is the worth of the space at the built out level.
• Mr. Abinanti expressed his concern that it would be too expensive for the Health Department to remain in the building and that the 12 positions the BOL put back in the Budget for the Health Department will be used to pay the rent. Mr. Phelan stated that in his mind the two are not related. He further stated that the filling of the 12 positions is related to the state budget. Mr. Abinanti expressed his concern that the money saved from not filling these 12 vacant spots will be used to pay the rent. According to Mr. Phelan although the rent money will come from savings within the department they would not negatively impact the workings of the department. Mr. Abinanti questioned the fact that the BOL gave a directive for these positions to be filled in the Health Department and they have not yet been filled. Mr. Delfino stated that according to Mr. Giambruno it is the County Executive’s prerogative to fill those jobs, the budget is just a guide for the County Executive to use.
• Mr. Abinanti asked if the BOL can transfer the money from these 12 vacant positions to an escrow account or a special account to insure that it is not used to pay the rent. Mr. Phelan stated that such a transfer would have to be initiated by the County Executive. Mr. Phelan cautioned that an extraordinary transfer of that size, midyear, in any operating budget would not be looked at favorably by the bond rating agencies.
• Mr. Abinanti asked if the state reimburses at 40% why haven’t we hired at least 7 people? Mr. Phelan stated that the state is talking about lowering the reimbursement rate to 30%.
• Mr. Abinanti stated that he is not prepared to make a budget transfer until the 12 positions in the Health Department are filled or the money transferred to another account. Commissioner Stolzenberg asked if the BOL does not make the transfer does it guarantee the Health Department the right to fill the positions. He asked how does hurting the Medical Center on the rental side help the issue? Mr. Wishnie stated that Mr. Abinanti is looking for a way to deliver a promise that the BOL made to their constituents to make the Health Department whole by adding 12 positions. Right now it appears that the positions will not be filled, particularly if the state budget cuts the reimbursement rate. Mr. Phelan stated that if those positions where filled now in the face of the state budget, which could be a substantial problem for us, we would be looked at as not acting correctly.
• Mr. Abinanti stated that if those 12 spots need to be held so that the Health Department doesn’t lose other people, then by implication, Mr. Phelan is saying that without those 12 spots the department is underfunded. Mr. Phelan disagreed stating that we had a continuum of state aid that we could count on for years for the Health Department, although it has been dwindling, now we have a catastrophic break from any prior year without precedent.
• Mr. Abinanti asked how we can get 6 or 7 people hired immediately in the Health Department. Mr. Phelan stated that he met with the County Executive last week and it was his opinion not to hire these staff members until knowing the status of the state budget.
• Mr. Wishnie stated that the problem facing us now is to find $1.4 million for the WCMC budget to pay the rental costs. He stated that there are going to be significant problems if we don’t make the transfer. The issue of filling the 12 positions is a secondary issue. He is of the opinion that the two cannot be tied together. The BOL has to deal with the County Executive directly with regard to filling the 12 positions.

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• Mr. Phelan cautioned that if the transfer is not made on a timely basis it will interfere with other monies. Mr. Wishnie stated that the Committee recognizes that responsibility and will act on this in some fashion on July 22nd.
• Mrs. Swanson stated that she is disappointed that creative bookkeeping is being used to charge $1.75 for something that is already built out. She stated that she can understand charging $1.75 for each of the doctors build out for their own office space, but she is very disappointed that this has come down to a charge of $1.75 extra for the Departments of Health and General services. Commissioner Stolzenberg stated that for the record, this was made very clear to the Board that this charge was part of the business plan for the building; there was no deceit, no deception. He again reiterated that it is fundamentally the basic real estate principal that you don’t pay the same amount for shell space as for built out space. He stated that they have commitments for the entire building as well as real estate offers for people to come in and rent space at considerably higher rates than the amount being charged.
• Mrs. LaMotte stated that it would be a good idea for the Administration to look at alternate space for the county departments occupying the Bradhurst building. If this is a business decision and there is as high a demand for the Bradhurst building space at a higher rate as stated by Commissioner Stolzenberg, then it would make sense for the county departments to find less expensive rental space. She stated it would be a good idea for the Committee to review the Minutes of the Committee of the Whole meeting.
• Mr. Phelan stated that the Administration is currently seeking new rental space for the health Department. Mr. Abinanti stated that he would like to have a written statement from the County Executive to the Committee saying that there is a serious search going on for other rental space and that we will not see $1.2 million in their budget for rental space next year, it might be a way to resolve this issue.

Mr. Wishnie asked as to the status of bond information requested by the Committee of Mr. Phelan. Mr. Phelan stated that he is compiling the list and will have it for the Committee early next week.

There being no further items for discussion, on motion of Legislator Abinanti, seconded by Legislator Swanson, the meeting was adjourned at 4:25 p.m.