YUMA COUNTY BOARD OF SUPERVISORS Also sitting as all SPECIAL TAXING DISTRICTS where noted WORK SESSION RETREAT: February 11, 2015 Page 1 of 7
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1 WORK SESSION RETREAT: February 11, 2015 Page 1 of 7 The Yuma County Board of Supervisors met in a Special Work Session Retreat on February 11, The meeting was held at 2951 S. 21 st Drive, Yuma, Arizona. CALL TO ORDER: At 8:32 a.m. the Chairman convened the Yuma County Board of Supervisors in open session, also sitting as the board of directors of all special taxing districts where noted. Supervisors present were: Russell McCloud, Russell T. (Russ) Clark, Lenore Loroña Stuart, Gregory S. (Greg) Ferguson, and Marco A. (Tony) Reyes. Others present were: County Administrator Robert L. Pickels, Jr.; Trial Court Administrator Kathy Schaben; Public Fiduciary Candy Wheeler-Ruby; Finance Director Scott Holt; County Attorney Jon Smith; Deputy County Administrator Paul Melcher; Library District Director Susan Evans; Assistant Library Director Lisa Mendez; Budget Director Jim Flory; Elections Director Sue Reynolds; Treasurer Angela Moreno; Recorder Robyn Pouquette; Chief Deputy Recorder Norma Vasquez; Clerk of Superior Court Lynn Fazz; Juvenile Justice Center Director Tim Hardy; Public Defender Michael Breeze; Administrative Services Director Shannon Gunderman; Human Resources Director Felicia Frausto; Deputy Human Resources Director Adam Rodriguez; Aaron Polkoski, Consultant/Segal Company; Stephanie Calandro, Actuary/Segal Company; General Services Director Hugh Hendren; Public Works Deputy Director Jason Phipps; Public Works Director Bill Beck; Assessor Joe Wehrle; Chief Probation Officer Sandi Hoppough; Deputy Chief Probation Officer Karen Hoffman; Court Administrator Margaret Guidero; Housing Director Gloria Mallek; Planning Director Monty Stansbury; Senior Civil Engineer Craig Sellers; Chief Information Officer Ed Jin; Deputy Finance Director Gil Villegas; Deputy Director/Director of Nursing Maria Nunez; Health District Director Diana Gomez; Assistant Legal Defender Levi Gunderson; Patrol Bureau Captain Eben Bratcher; Detention Bureau Captain Mark Martinez; Lieutenant Joseph Lackie; Emergency Management Director Tony Badilla; Budget Manager Imelda Figueroa; County Engineer Roger Patterson; Senior Management Analyst Vanessa Valenzuela; Management Analyst Lucia Gomez; Executive Assistant/Deputy Clerk Christy Isbell; Communications Technician Cindy Joslin; Administrative Assistant Dunia Federico; and Executive Assistant/Deputy Clerk Desarae Doten. Judge Nelson led the Pledge of Allegiance. Mr. Pickels welcomed everyone and reviewed the agenda and meeting schedule. 1) Fiscal Year Financial Forecast
2 WORK SESSION RETREAT: February 11, 2015 Page 2 of 7 Mr. Pickels thanked everyone who helped him gather information for the slides in his upcoming power point presentation. He began the discussion by mentioning the road to recovery, noting that what is happening in one area of the country and/or state may not be the same across the board. Forecast highlights: President Obama recently announced a proposal to reduce the FHA mortgage insurance rate by 0.5% making it easier to purchase a loan. Mr. Pickels mentioned the high construction rates in Yuma during where not all applicants were particularly qualified, which caused problems. The unemployment rate in Arizona was reported at 6.7% as of December 2014; however it has dropped closer to 6% since then. The following information was provided at the Arizona County Managers Association Conference held last week: In Arizona 72% of pre-recession jobs have been recovered and only 8% of construction jobs. This means new types of jobs have been added but they are not the job types which drove the economy for so many years. Full job recovery is expected by mid Reviewed Fiscal Cliff document which provides information about the great recession, state funding and cost shifts, and the burdens which fall on local governments and taxpayers. Compared sales taxes collected today versus the numbers pre-recession in Fiscal Year Restaurants, bars, and retail revenues were discussed. Building permits activity was reviewed. General fund expenditures have increased by at least $250,000. A graph was displayed showing the highest areas which are in benefits and salaries, and wages. Foreclosure trends show that debts have been purged and people are in homes they can afford. Slight increase in bankruptcies. Hotel/Motel and RV Park Occupancy projections were reviewed. Retirement plan rates and costs were reviewed.
3 WORK SESSION RETREAT: February 11, 2015 Page 3 of 7 Property values are showing slight increase in assessed value for the first time in five years. Mr. Pickels mentioned the employee turnover rates which show that employees are satisfied. A chart was provided by Human Resources showing the average rate as 10-11%, which includes the Sheriff s Office and Detention staff. Discussion ensued concerning liabilities such as retirement increases, health premium rate increases, increased program costs (state program shifts, Title 36, personnel requests), and pay for performance increases or other possible incentives. Supervisor Ferguson discussed the importance of Deferred Compensation for those employees who were hired after September of 2013, noting they will only receive the rate they retire at with no increases. 2) Yuma County Employee Benefits Financial Forecast Mr. Segal began the presentation by reviewing medical and prescription drug trends. Supervisor Stuart questioned whether opposition is received from doctors concerning generic drugs. Mr. Segal confirmed and noted that depending on the patients needs Yuma County s plan has authorization forms for these individuals. Ms. Calandro provided the projection assumptions for projections for July 1, 2015 to June 30, She noted there are no proposed benefit changes for the plan year. Supervisor Reyes mentioned the method to reduce costs, and discussed personal scenarios using medical services in Mexico versus the United States. He offered the suggestion that employees may not be receiving enough education on the availability of the SSA Mexico plan. Ms. Frausto reported that Human Resources continually provides information to employees and an increase in enrollment has been noted. She reported that, per requirements of the Affordable Care Act, some services must be provided within the boundaries of the United States. Further discussion ensued between the Board and staff concerning SSA Mexico. Mr. Segal reviewed several proposed contribution worksheets, and closed the discussion by mentioning federal changes regarding reporting requirements under the Affordable Care Act The Chairman recessed the special work session at 10:00 a.m., then reconvened the meeting at 10:12 a.m.
4 WORK SESSION RETREAT: February 11, 2015 Page 4 of 7 3) Internal Service Survey Results Ms. Valenzuela reported that surveys were conducted by an outside vendor during the months of September and October in She reviewed the departments and service areas surveyed along with the results. An award was presented to the County Administration - Office of Management and Budget for most improved. Mr. Flory was present to accept the award. A second award was presented to Finance Payroll Department for receiving the top positive rating service area score. Mr. Holt was present to accept the award. 4) Enterprise Risk Management Project Summary Mr. Pickels stated this program is a tool for departments to work together more efficiently to identify risks. Mr. Gunderman provided a brief overview of the Enterprise Risk Management (ERM) Program, which is widely practiced in the private sector and came about as a result of the economic meltdown. He noted that traditional risk management focuses on the negativity of risk and the treatment is to transfer the risk via insurance. Mr. Gunderman reported how the ERM process has began to work well for several departments, and reviewed the JCAD Core Website where the data is entered. He offered to establish accounts for Board members so they have the ability to view real time information. Mr. Melcher briefly noted the reporting structure and committee, noting a presentation will be made to the Board each year reviewing the progress. Mr. Pickels congratulated Mr. Melcher and Mr. Gunderman for getting the project started, and thanked department heads for their participation. 5) Update of the long term financial plan development and consideration of options to fund long term capital projects. Mr. Pickels mentioned that a Work Session was held several months ago where the Board agreed to move forward with this idea. He explained that staff did not have enough time to proceed and put the plan together in advance of the current budget process. Mr. Pickels noted that staff prepared a survey to help Identify what the needs and desires are. Ms. Valenzuela reviewed the survey which asks the following questions:
5 WORK SESSION RETREAT: February 11, 2015 Page 5 of 7 1) Please list your department's critical mandated services and the statute/regulation that mandates it; and 2) Please list your department's most critical non-mandated services. Departments will also be asked to provide one or two of the countywide goals that they fall under. Mr. Pickels discussed the need to ask residents what they require under the mandated services (mission critical services). He hopes to have feedback by July 1, 2015 so that staff can begin with workshops/focus groups. He also explained that Board members will be asked to be on the committees to be involved with the dialogue. Mr. Pickels noted that Mr. Melcher has been working with the Communications Division to target and reach out to community members. A slide highlighting Long Term Capital Improvement (CIP) Projects which need to be considered in the plan was reviewed and discussed. Mr. Pickels proposed the possibility of a County Capital Projects Tax (ARS ), noting this is something to be considered; however he is unsure whether the community will be supportive, and asked the Board for feedback. Supervisor Stuart expressed her belief that it would be positive to try and work with the City of Yuma on items such as a parking structure. She noted the key is to talk about it with the public and give them the opportunity to understand. Supervisor Clark expressed interest and encouraged Mr. Pickels to bring additional information forward. Supervisor Reyes noted it would be irresponsible to not involve the public and make a decision. Supervisor Ferguson stated there are a lot of things to be considered, but he does not mind further discussion. Chairman McCloud noted his support for further discussion. Judge Nelson noted the facilities Yuma County would not have if this had not been the plan in years past (i.e. Courthouse). From a local standpoint, if approached as it was last time, he feels it would be successful. Mr. Hendren discussed a facilities assessment where specialists reviewed repairs and future work which will be required on current buildings, such as cooling towers and boilers. He explained that there is money to make smaller repairs in the operating budget; however he is hopeful that a long term approach will be established to address these issues.
6 WORK SESSION RETREAT: February 11, 2015 Page 6 of 7 6) Discussion and direction to staff regarding the possible update and modification of the development plan for the property surrounding the County Public Works facility to include the construction of a columbarium. Mr. Pickels reported that staff initially looked at land on a Bureau of Land Management (BLM) site; however since February of 2013 there has been much more success with the cremation only policy which allows the extension of the current space. Mr. Sellers gave a power point presentation titled Avenue 6E Plan of Development Update, which provided a history of agreements. He reviewed the original development plan and current application, noting that as of last fall BLM has issued a notice of noncompliance concerning the development plan. Mr. Sellers reviewed the recommended development plan (which is to consider constructing memorial walls) and he displayed example photos. He explained the county must have a development plan for use of the remaining land, or BLM will withdraw the land patent. The Board and staff discussed the different styles and options available for a columbarium. Ms. Candy Wheeler-Ruby reported that since the cremation only policy was implemented there has not been one burial request (for religious reasons). Mr. Pickels informed the Board he was looking for direction to work with BLM for design construction. MOTION (REYES/STUART): Direct staff to work with the Bureau of Land Management on a redesigned use plan for the patented property located at Avenue 6E. VOICE VOTE: The motion carried ) Discussion regarding legislative priorities strategy for upcoming National Association of Counties Legislative Conference. Mr. Pickels noted several talking points which will be discussed: Payment in Lieu of Taxes (PILT); San Luis Port of Entry I and II; Water Resources; and Immigration Reform. Supervisor Stuart stated she agreed with the issues and suggested that the group determine how to split up to attend the meetings with the legislators. She also noted the possibility of trying to work with the City of Yuma who will also be in attendance. Mr. Pickels informed the Board that he reached out to the Mayor to try to work on a unified list, however he has not heard back yet.
7 WORK SESSION RETREAT: February 11, 2015 Page 7 of 7 Supervisor Clark noted the issues for Yuma County will be around finance, roads and road use tax. Chairman McCloud mentioned the Clean Water Act regarding the waters of the United States which is before congress now. Mr. Pickels expressed the need to identify the impact(s) upon local and statewide water use. Supervisor Reyes noted topics such as immigration enforcement and federal land patents and leases. He agreed with splitting up to attend meetings, but recommended having the same position papers to leave with staff. In closing, he mentioned the need to devise a way to follow up on some of these positions. Mr. Pickels suggested establishing teams, and then whoever is available can make crossovers. Judge Nelson mentioned that Federal Tax Intercept is still an issue, and stated that intercepting the federal tax incomes would be a significant increase to the general fund. He informed Mr. Pickels that his staff would provide information on this following today s meeting. 8) Discussion and possible action on the Board of Supervisors Fiscal Year Priorities and Initiatives. Supervisor Stuart thanked Mr. Pickels and staff for putting together today s agenda items. There being no further business to come before the Board, the Chairman adjourned the meeting at 11:48 a.m. YUMA COUNTY BOARD OF SUPERVISORS Adopted this 16 th day of March, Agenda Item No. C(3)(a)?. ATTEST: RUSSELL MCCLOUD, Chairman Robert L. Pickels, Jr. County Administrator/Clerk of the Board RLP/dd/gh/cpi P:\Motions\2015\ Retreat Motions #5_gh.doc
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