B & A MEMBERS: Wishnie, Carsky, Kaplowitz, LaMotte, Mosiello

Stewart-Cousins, Swanson, Young

• Commissioner Pucillo using the letter sized 1999 Cash Flow Spreadsheet covering the term January 1, 1999 to March 31, 1999 (on file) informed the Committee that the County was $5,055,544 Million behind their projected amount according to the year-to-date Column of the spreadsheet. Mr. Pucillo pointed out that the 1^st quarter is the hardest to make projections for because projections are based on the previous year and not everything that happened last year necessarily happens on the same month in the year. Even though we are behind our projections by five million dollars, we are still ahead 37 Million Dollars that is with the TAN bonds. Commissioner Pucillo pointed out that we borrowed $25 Million dollars less than last year. Chairman Wishnie clarified for the Committee that the Department of Finance‘s original projections were 41 Million dollars and what we actually received was 36.6 Million for 1^st quarter projections.

• Chairman Wishnie asked the Commissioner to highlight some of the notable issues in regards to cash flow. The Commissioner responded by pointing out :
• We are ahead in Federal & State Aid Social Services but that is purely timing
• In Other Income we are behind 14 Million. Commissioner Pucillo stated that he is sure that we will get caught up. Part of the reason is the way we do our projections, which are based on what came in last year. Some of the departmental revenues did not get billed as of yet. We will get caught up once these departments are billed.

• Legislator Mosiello asked about the 3 ½ Million dollars that we are behind in Public Benefit Corp. Commissioner Pucillo responded by saying that $1 ½ Million of that amount is Information Technology. Billing from Last year and ¼ Million of the money is from this year, which leaves 1.8 Million which comprised of some odd and ends

• Sales Tax is behind 1.5 Million. Legislator LaMotte asked if we are still dropping in sales tax. Budget Director Katie Tooher responded by stating that we have just received the April settlement check and we are up slightly through the month of April. She added that this is the second month where we were ahead. Ms. Tooher added that $4 ½ Million is the absolute floor.

Legislator Kaplowitz asked the Commissioner if we would have to borrow funds from our special districts. The Commissioner said, "we are not expecting to have to borrow from our special district funds.

On motion of Legislator Swanson, seconded by Legislator Young, the minutes of May 10, 1999 with the amended changes were approved by a vote of 8-0

• Amendments to minutes: Ms. Carsky amended the fifth bullet on the top of the second page to read, The County will have a one-time opportunity to cancel the lease effective August 31, 2003, so the decision must be made final by August 2002 in order to meet the one year notice requirement. The Heading on the top of the third page should read 1^st Quarter Projections. The first bullet on the third page under the heading 1^st Quarter Projections should read, As of the 1^st quarter of 1999 we are projecting a minimum surplus of $4,199,622 for the year 1999.

Transfer within the Fire Services budget in the amount of $50,000 to extend the consulting contract of Campbell Associates in regards to the operation of the fire-training center throughout the balance of the year. (5/10/99)

• Legislator Mosiello noted that this started out as a contract for $20,000. Legislator Mosiello also wanted to know if Mr. Campbell was a retired county employee and the answer was yes. Mr. Campbell is a retired Fire Chief from the City of Mt. Vernon.

• Legislator Young asked if the total contract is for $76,000 or $96,000. Katie Tooher stated that there was a short form contract for $20,000 in addition to a resolution before A&C that was put over last week pending this transfer. The balances of the funds are coming from a saving in contractual services due to the rejection of the maintenance component for the CAD system.

• Legislator Mosiello asked if Mr. Campbell’s work would be done by the end of the year. Bill Randolph responded by saying that he could not say with any degree of certainty that Mr. Campbell would be done. Chairman Wishnie said the cost of 60 control would continue whether Campbell is there or some other mechanism was in place.

• Bob Boland noted that we paid for the system but we are not paying for the maintenance

On motion by Legislator Young, seconded by Swanson, the motion to approve this item was carried by a vote 8-0

Proposed Resolution regarding a transfer of funds of $2,557,000 for the legal services of indigent defendants.

• Ms. Tooher stated that this is the final transfer based on recommendations by Bennett Kielson. They made a determination that there needs to be more money placed in indigent defendants. There is a problem with billing by the attorneys who are assigned by the courts.

• The second transfer in an increase in the Statutory Charges Account in the miscellaneous budget. In this Account we pay for court ordered settlements that are not part and parcel of the County 6N Fund or 6J fund. The case that is being settled for which the funds are needed goes back to 1995. County Attorney Alan Scheinkman noted that this is not a settlement, the case has been litigated and resolved. In 1995 the County Board voted a budget and as part of an austerity plan, the prior County Executive discharged people who had budgeted positions in the middle of the year. In the 1996 County Budget, those positions were eliminated. The courts held, however, under the doctrine of legislative equivalency that where the legislature has put into the budget, positions the County Executive can not then discharge the people. The proper way to have done it would have been to go back to the board to abolish those positions, which was not done until the ensuing budget year. So the County was held responsible to approximately 300 individuals for the difference of what they got paid – they got paid up until the point of discharge but we owe them from the point of discharge to the end of 1995. Of the 270 individuals involved 230 were from medical center. The other individuals were in DPW and Corrections. The argument then became whether or not this should have been a class action suit. The court did not accept this argument. On that decision it was appealed in the appellate court. The Appellate court 2^nd department agreed with the lower court's decision and permission to go before the court of appeals was denied. The only remaining issue after that was the determination of the interest rate. The plaintiffs argued for a 9% interest rate; the County argued for a lower or no interest rate and the judge ruled on a 6% interest rate.

• Chairman Wishnie noted that $295,000 dollars was coming out of Invest In Kids and asked Ms. Tooher for an explanation. Ms. Bennett responded by saying that Invest In Kids is covered through the year and when budget closes their books those contracts begin to roll into 1999, but the money is still in there. $273,000 of contracts that rolled into 1999. The contracts roll but the appropriations don’t.

• Bob Boland requested a meeting with the Auditors

• Legislator Kaplowitz asked if there are going to be any more discharges in Statutory Charges. Legislator Kaplowitz also asked if there was any willful or gross negligence involved in order to gain some reparations for these actions. Mr. Scheinkman pointed out that the Courts said that the previous county executive did not act in bad faith.

• Bob Boland asked the question why isn’t this in annual regular and Katie Tooher responded by saying that this is truly a payment towards the settlement of the case

• Katie Tooher commented that food services workers at the jail went through the same thing but these people did not sue. Chairman Wishnie noted that these workers filed a civil rights suit. Alan Scheinkman stated that this case was settled by the medical center that paid approximately 1Million dollars.

• Ursula noted that ½ a million is coming from Residents Tuition. Ms. Tooher responded by stating that the budget Department went through the miscellaneous budget with a fine tooth comb to locate funds to make this a committee transfer instead of going before the whole board.

• Motion to approve the committee transfer was made by Legislator Young and seconded by Legislator Swanson.

• The Committee reviewed the April 29^th A&C Calendar
• Mr. Boland informed the Committee that items 1 and 2 on this weeks agenda were held over pending the budget transfers that were approved during this meeting of the Committee on Budget and Appropriations.
• (24) Authority to enter into an agreement with Segal Advisors, Inc. for consulting services for RPF’s to be issued by the County for the selection of an administrative agency and financial organization for the Deferred Compensation Plan. Legislator Carsky noted that there is 200 Million dollars in the deferred compensation plan. Katie Tooher said that if the Deferred Compensation Board did not meet by the date of A&C they will have to pull it off the agenda.

• Legislator Carsky asked who was on the Deferred Compensation Board. Ms. Tooher responded by saying Chairman of BOL, County Executive (The Deputy County Executive stands in for him), County Attorney, Commissioner of Finance, Budget Director, Personnel Officer and 2 Citizen Members ( Morales and a vacant position)

• Chairman Wishnie wondered if we could nominate Legislator Kaplowitz to sit on the Deferred Compensation Board.

Legislator LaMotte asked if we could increase the number of citizens that sit on this board. Chairman Wishnie requested a copy of the Plan. Ms.Tooher suggested that we ask the administration to send someone to give the BOL an overview of the plan. Legislator LaMotte made a formal request that bill Randolph arrange for someone to come in and give the board an overview.

An IMA allowing the County of Westchester to Join into an IMA with Rockland County. It would allow us to participate in a five year, no cost agreement to allow ambulate services in Rockland County to assist Westchester County when it is necessary and vice-versa.

• Legislator Swanson requested a copy of the plan before the BOL actually votes at their next meeting on Tuesday May 25.
• Legislator Carsky asked if all IMAs came to the Committee on Budget and Appropriations. Katie was not certain which prompted Legislator Carsky to request further investigation into the matter.

Motion to approve this item was carried by a vote of 8-0

Resolution concerning the July convention vote distribution.

• The NACO conference is scheduled to take place July 12^th – 19^th

• 14 votes for the County Executive; 15 votes for the BOL. Legislator Katherine Carsky will distribute the votes. If the County executive can not attend, the 14 votes for the County Executive will revert to the BOL.

On motion of Legislator Swanson, seconded by Legislator Kaplowitz, the motion to approve this item was carried by a vote 8-0.

(10) Authority to enter into a service agreement with Metrodesign for the development of an elementary school transit education program in an amount not to exceed $35,905

• Legislator Carsky requested a review of the CDBG Program as it pertains to affordable Housing by either Norma Drummond or Larry Salley from the Department of Planning.

The committee was handed a vacancy report dated May 11, 1999 and a short form contract report covering the months of March and April.

There being no further items for discussion, on motion of Legislator LaMotte, seconded by Legislator Mosiello, the meeting was adjourned and 11:45