MINUTES
OTHERS: Budget Dept.: Kate Carrano, Diane Nolan, Leslie Bennett, Robert Kopenhaver, Arthur Vietro, Fran Piskorowski; C.E.’s Office: Bill Randolph; BKS: Les Storch, Nick DeSantis, Scott Oling; Actuary: Jim Stergio; D.A.’s Office: Jeanine Pirro, Clem Patty, Pat D’Imperio; CBAC: George Hosey, Barbara Strauss; Labs & Research: Millard Hyland, Tom McGimpsey; Consumer Protection: Elaine Price, Richard Linkowski; Legal Aid Society: Stephen J. Pittari; County Attorney’s Office: Alan Scheinkman; BOL: Tara Bernard, Rafael Vega, Robert Boland, Chris Chang, Tina Seckerson
Chairman Wishnie called the meeting to order at 9:18 a.m.
DISCUSSION:
2001 PROPOSED BUDGET: DISTRICT ATTORNEY’S OFFICE:
· Crime is down about 15% in Westchester County. Prosecuting more crimes than ever before. Conviction rate is impressive.
· Personnel: Additional 2 positions & 5 in grants: This year they received a position that was previously in DSS; the second position is for a senior records clerk. The Archives center requested they add this position to help in retrieval of records. Grants: 2 are from existing grants (unemployment & motor vehicle grants) received 3 additional grants that allowed them to bring in 3 more people.
· Potential for a capital case: used to put in $300,000 in prosecution line item. This year they project the cost of prosecuting a capital case would be between $325,000 and $350,000. There is a minimum of S300,000 in escrow in case they have to prosecute one of these cases.
· Equipment Services & Rental: Increase due to copier contracts
· T-707: Aid to Prosecution: In the last 7-8 years funding has stayed at $1,403,503. Anticipate that it will stay the same
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· Advance to Grants (4912): This line shows the difference between the funding received and the actual costs of the programs.
· T-218: Unemployment Insurance Fraud: Previously received $75,000. This year they were able to secure $150,000 in funding from NYS and with additional funding they were able to hire an investigator.
· Data Processing Charges have dramatically increased. Mr. D’Imperio noted that Interdepartmental Charges (5260) went from $231,153 to $608,000. He explained that this is a charge that they have no control over, it is determined by IT. He noted that the D.A.’s Office has always disagreed with this number.
· Economic Crimes Bureau: They are in constant communication with the County’s Office of Consumer Protection with regard to consumer complaints.
AGENDA ITEM:
A10: Release from Damages: Proposed Act authorizing the County to release
the State from all legal damages related to the taking by the State of the parcels of County-owned property. (11/13/00)
· This act authorizes the release of NYS from all legal damages related to the taking in fee of 10 parcels of County-owned property in exchange for compensation totaling $26,100.
· The County Attorney explained that the State has done the appraisal. They already have the property. There was no negotiation, they filed the papers and took the property. The State exercised its rights under its power of eminent domain. There is no chance that it will ever be county property again unless the state chooses to release it.
· The properties are located off of various roadways running through the County and range in size from a couple of hundred square feet to under a half-acre and as such would not be by the County for other purposes.
· Most of the parcels are small and on the NYS Thruway
· Mr. Scheinkman stressed that the only choice the County has is whether or not to accept the money or dispute the amount. He further stated that the costs that would be associated with such an action would be much more than the $26,100. Each parcel would be a separate litigation. No control over what they do with it.
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· Committee members stressed their concern over the State’s intention for this property. There was concern with regard to the potential for building cell towers on any of these parcels. The Committee was concerned about the policy that could be inferred from accepting this money for these parcels and felt it was inappropriate to act on this legislation at this time. It was noted that there will be a meeting with the State Delegation in the next few weeks and that this matter should be discussed then. There was discussion as to introducing home rule in where cell towers are sited.
· Committee did not act on this matter at this time.
LEGAL AID SOCIETY:
· Mr. Scheinkman explained that the firm of Bennett Kielson Storch DeSantis & Company (BKS) was engaged to conduct a review. The County is currently meeting with the Legal Aid Society to negotiate a contract.
· Mr. Storch stated that his firm reviewed the financial and operational status of the Legal Aid Society. He informed the Committee that the most significant aspect was that it is impossible to quantify the operational efficiency of the organization due to the fact that there are no time sheets being prepared by the individual lawyers. The key recommendation is that time sheets should be prepared to monitor the efficiency of organization.
· 84% of expenditures are devoted to labor & benefits while 16% goes to rent, utilities, etc. With some exceptions the functional expenses categories have been relatively consistent since 1994.
· A pension program was put into place requiring a 13% contribution while these is no contribution by employees for health benefits.
· For the past 4 years the Legal Aid society has been expending at a rate that has consumed a $2 million fund balance. BKS projects a deficiency of $150,000 if this pattern continues.
· The County Attorney explained that all of the parties (Administration, Law Department, Legal Aid Society, etc.) meet this past Wednesday and were able to come up with a satisfactory resolution over funding issues for this current year (2000) and the year going forward (2001). The Legal Aid Society requested $66,000 for an upgrade of their computers. The county agreed but as part of the terms of the agreement Legal Aid will use the County’s IT department to review and establish an appropriate computer operation. Legal Aid also agreed to install an appropriate time management system.
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· During this current year there has been a temporary agreement in place whereby they are receiving funds on a monthly basis at the C.E.’s rate proposed in 2000 budget, and not including the additional $700,000 that the Board of Legislators added. The newly agreed upon contract will be a two year contract retroactive to January, 2000. The major components of the contract are: Legal Aid will receive the base amount proposed by the C.E. for 2000 & 2001, along with an immediate $700,000 payment to Legal Aid representing the unspent Board allocation for 2000 and an additional $300,000 in funding for 2001 that the Board is being requested to add to the Budget. This $300,000 will enable Legal Aid to conduct their operations and provide services on a satisfactory level.
· They are exploring the possibility of opening a satellite office as well as the 18-B program.
· Mr. Pittari stated that the Legal Aid Society is satisfied with the new contract terms and noted that the BKS Report did not take into account meeting that was held yesterday, it was a fact finding report.
2001 PROPOSED BUDGET: BKS ORAL REPORT:
· BKS gave a preliminary report with regard to the County’s revenue sources.
· The sales tax receipts, year to date, are almost 12% higher than last year. Showing $21 million more year to date than in prior year. BKS projection is $255.9 million while the County’s projection is $253.5 million. They ran a host of scenarios regarding sales tax, which is somewhat cyclical. Under the different scenarios adding $1.3 million would be conservation, $2.5 million would be moderate and $4.5 million would be aggressive. Westchester’s receipts are consistent with what other counties are doing. BKS recommend increasing the sales tax projections by $2.5 million.
· They further recommended increasing Hotel tax projections by $118,000 and Auto use tax by $128,000. These projections are based upon projection in 2000 and applying administrative growth rates.
· BKS noted that the County Clerk’s Office seems to have revenues growing at a net of $200,000. Projecting trade licensing will come in about $300,000 below budgeted levels. They informed the Committee that a substantial number of licenses are renewed in November and December and could have a profound effect on the final numbers. According to statistical growth they could come in half million higher on trade licensing. Will know better on Monday.
· Interest on investments: still in process of reviewing.
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· BKS will meet with the Committee again on Monday before additions are made.
AGENDA ITEM:
A5: Rockland IMA’s: Proposed legislation authorizing the County to enter into
IMA’s with the County of Rockland to engage the services of the Westchester Department of Laboratories for a period of two years, commencing January 1, 2000 through December 31, 2001. (10/30/00)
· Rockland County uses our lab department and the prior IMA expired.
· This is a two year agreement whereby the contract for $125,000 although they expect the actual number to be approximately $100,000. This is additional revenue for the Department of Labs & Research.
On motion of Legislator Kaplowitz, seconded by Legislator Young, the motion to approve this item was carried by a vote of 9-0.
2001 PROPOSED BUDGET: LABS & RESEARCH:
· The Committee questioned the decrease in revenues. Mr. McGimpsey explained that when the projections were done the Department had some large contracts with the DEC and DEP. At the time the contracts were agreed upon they anticipated the new building would be completed. Since the building is not yet complete, they lost the contracts. They are doing some work with both agencies but considerably less than anticipated.
· Change in utilities cost is due to the fact that the department used to purchase their steam from the Medical College. It is now supplied by DPW.
· Services by personnel (5147): This number is based on utilization of drug testing program rather than a flat rate as it was previously.
· Water (3180): In the summer of 1999 they had a spike in water use (possibility for air conditioning) during construction of the new building
· There was a discussion as to the running of the department and how it should be run more like a business with a business plan and a business manager. Dr. Hyland stated that they do plan to hire a business individual with a labs background and are working with Personnel on a title for this position.
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· The Committee stressed that the department has to look at ways to maximize their revenues and market their services. Both Dr. Hyland and Mr. McGimpsey stressed that completion of the new building plays a big part in this.
· There was a discussion with regard to competitive pricing for services provided by the department. Dr. Hyland stated that the department’s prices are at the maximum level. The Committee stressed its concern that in order for the lab to run as a business it needs to be competitive in pricing. Dr. Hyland stated that they must not appear to be in competition with a private lab. Mrs. Carrano reminded the Committee that there is a tax payment to the municipality if business is run on county property. It was questioned whether the lab could be run as a not-for-profit as they should be able to break even to offset tax levy.
· Although the department is a 109 person organization, only 40 employees work in the lab that brings in money. The department traditionally does not charge municipal police departments. There will always been a tax levy associated with this department.
· The Committee noted that there is a line in the Miscellaneous Budget for a County marketing program and suggested some of those funds be used to market this department. Mrs. Carrano stated that the web pages are really marketing the departments as well.
2001 PROPOSED BUDGET: JIM STERGIO (ACTUARY):
· Mr. Stergio informed the Committee that this is the first year he has been asked to review the County’s health care insurance. He stated that as an actuary he traditionally looks at losses. He looked at 15 years of loss experience for the County on paid claims in hospital, major medical and drugs. Actuaries look at patterns and come up with assumptions based on the loss experiences.
· Mr. Stergio stated that although there seems to be an 8% smooth curve inflation factor the numbers don’t seem to support a steady 8% inflation factor. The losses seem to be going up by 8 percent a year.
· He disagreed with Pomco’s estimates last year. His numbers were 20% higher on hospital numbers
· Mr. Stergio was asked whether we should just add 8% to last year’s number. Mrs. Carrano stated that the County has yet to get the right number in this area. Mr. Stergio explained that this line has been underfunded every year and we need to get it to the right number first and then go up 8% per year.
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· Committee requested actuary’s bottom line data for the last 15 years.
· It was stated that the number in the budget ($76 million) is the actuary’s number.
2001 PROPOSED BUDGET: CONSUMER PROTECTION:
· Projected increased of $95,000 for revenues due to recent amendments to home improvement law which doubled the maximum penalty from $500 to $1,000.
· Overtime (1400): almost double of 1999 expended. Ms. Price explained that for 6 most they lost of the office staff (they only have 4 people and 2 were out due to accidents)
· Reimbursement from NYS Petroleum Quality Testing Program : last year put in $7,000 , 2000 estimated is $5,000
· Telephone (4160): increase in telephones and billing for telephones – due to confusion of where charge was going to reside
· There was a discussion as to what role Consumer Protection would play if the Neighbor Notification law is approved. Ms. Price stated that the enforcement responsibility will be in the Health Department, not Consumer Protection.
ADJOURNMENT:
There being no further items for discussion, on motion of Legislator Kaplowitz, seconded by Legislator Carsky, the meeting was adjourned at 12:00 p.m.