MINUTES OF THE INFORMAL MEETING OF THE JOHNSON COUNTY BOARD OF SUPERVISORS:
MAY 20, 2009
Chairperson Neuzil called the Johnson County Board of Supervisors to order in the Johnson County Administration Building at 9:01 a.m. Members present were: Pat Harney, Larry Meyers, Terrence Neuzil, Sally Stutsman, and Rod Sullivan.
Neuzil said the Board identified four major initiatives for the strategic planning process. The initiatives were the Justice Center, green initiatives, metro-transportation plan, and rural economic development. He said after the budget crisis, the initiatives were put on the back burner to focus on budget strategies. He said the only strategy implemented was a freeze on County operational expenses for FY10. The question now is what other budget strategies can be used. A list was put together, and a priority from the list is employees. He said most departments are currently at 85% or higher use of their entire budgets. Operational expenses can only be frozen for so long until other alternatives need to be explored. Stutsman asked if the Strategic Plan is going to be redone. Neuzil said the last plan was done in December of 2007. Stutsman said the Strategic Plan should be redone, because it has been almost two years. She views strategic planning as an evolving process. Neuzil said it is, but most of the plan has been put on hold. He said it is more difficult to change things when there is less money. He said the list of strategies should be reviewed and discussed.
Human Resources Administrator Lora Shramek said wages and benefits are $31,216,927 and represent 37% of the County budget of $84,077,426. Harney asked how many employees the figure included. Shramek responded 500. Harney clarified 523. Meyers said 513 or 517. Shramek said they always say 500, but it could be a little higher. It is important to evaluate the necessity of any action as they look at the options. The County has a history of being very pro-employee, and personnel should be cut as a last resort. She said it is important to look at the impact, severity, savings and end result of each option. High impact affects several employees and low impact affects few employees. A drastic affect is high severity while low severity will have a minimal effect. There are three levels of savings, including significant, moderate, and modest. An immediate result is one seen immediately to a year from now. A future result would be seen after a year's time.
Shramek said Medicare Carveout could be phased out. Stutsman asked why Carveout increased. Shramek said there was one individual who had a lot of bills. The County contributed $91,574 in FY09 for Medicare Carveout and $33,877 in FY08. She said the County broke even in FY07. There are 27 individuals on the plan. Stutsman asked how the County contributed. Shramek replied money came out of tax incomes. She said it is a retiree benefit not required by law. She said the Board started this plan in 1994. Stutsman asked why the plan was started and if it is common for organizations to provide Medicare Carveouts. Shramek said it is very uncommon. She said it was a retiree benefit the Board decided to implement, because times were probably good.
Shramek said Medicare Carveout creates a Government Accounting Standards Board (GASB) 45 liability, which is new and significant. She said one year’s notice is required to phase out the program. Another option is to discontinue offering the plan without discontinuing service to individuals currently enrolled. If that option is taken, there would be a continued need to increase the Medicare Carveout health premiums until they equal the employee funding rate. Sullivan clarified the suggestions offered include stopping the program entirely with a year’s notice or eliminating new enrollment while increasing premiums for those currently enrolled. Shramek said yes. Stutsman asked what other options are available to individuals if the plan is stopped. Shramek said individuals would have to select services on the open market, and she would want to give them a year’s notice.
County Recorder Kim Painter asked if the plan is supplemental. Shramek said it is called Medicare Carveout, because Medicare is primary. She said the individuals on the plan are 65 or older. They include former retirees and their spouses. They are single plans, not family plans. Stutsman asked if spouses are covered on a single plan. Shramek responded spouses are covered under two single plans. Stutsman asked if this benefit is more cost effective for retirees when they pay the full amount. Stutsman said it is cost effective for people with heavy usage, primarily in the area of prescription drugs. She said Medicare does not have the best coverage for prescription drugs. Harney asked if the Board is bound in any way to keep the benefit. Shramek said no. Stutsman asked if the benefit is common in other governmental organizations. Shramek said no, very few organizations offer anything similar. She said the option of stopping the benefit would have a low impact. It would only affect the 27 individuals currently on the plan. However, it would have high severity for the individuals, because they would have to find other coverage. It would possibly result in significant savings after at least a year.
Harney asked if the 27 individuals include spouses. Shramek said yes. Stutsman clarified this benefit is elective for people. She asked if former employees and spouses are eligible for the service until death. Shramek said yes. Harney clarified there is no union negotiation on the plan. Shramek said correct. She said benefits could be reduced both by cost and the level provided. She said family contributions for health and dental could be increased. The County could start contributing for single coverage. Currently, single coverage is at no cost, with the exception of American Federation of State, County, and Municipal Employees (AFSCME). AFSCME pays $5 a month for single coverage. The plan design could be changed, which could include increasing deductibles and out of pocket maximums. She said a prescription drug card and copay could be implemented based on flat dollar amounts or percentages. An emergency room (ER) copay of $50 could be implemented, which is very common. An office visit copay of $10-$15 could also be implemented. The above mentioned options would have collective bargaining implications.
Shramek said any reduction in benefits would have a high impact, because nearly all employees would be affected. It would have low to high severity depending upon what was reduced. There would be modest to significant savings depending on the changes. Results for reducing benefits would be seen in the future, because a year’s notice is needed for collective bargaining. Stutsman asked if there is an opportunity for lower premiums from Blue Cross Blue Shield if ER and office visit copays were implemented. Shramek responded absolutely. Neuzil said there is a community expectation that benefits for employees resemble the current financial status of the County. It is hard to tell taxpayers that County employees pay $5 a month for insurance when a lot of other people are paying $200 or more per month out of pocket. Stutsman agreed and is concerned about abuse of ER and office visits. She said a cost would discourage needless visits. Shramek said it is a problem involving low out of pocket maximums. Once employees meet the out of pocket maximum, they receive 100% coverage for expenses. Sullivan said these options could be implemented any given year.
Shramek said effective January 1, 2010, the County will have an increase in deductibles and out of pocket maximums. Deductibles will increase from $500 to $750, and out of pocket maximums will go from $1,000 to $1,500. Neuzil said it would be helpful to learn what other communities are doing. Shramek said even with the changes, the County has the richest plan in the comparability group. Neuzil said the Board has to let the reality set in that cuts are going to have to be made. Stutsman asked Shramek if there is likely to be a request for a pay increase through collective bargaining to cover the cut in services. Shramek said it can be a concern. She said in 2007, they had 3% settlements, but additions such as vision were also implemented. Stutsman said it may be more beneficial in the long run to keep the current benefits than to negotiate pay increases. Neuzil said even if the County's finances are stronger than those of other governments, there is a need to be frugal.
Shramek said a tobacco surcharge could be implemented on health coverage rates. She said 18.7% of Iowans smoke and less than 2% use smokeless tobacco. Currently County employees pay $30 per month for family coverage. She said if a 25% tobacco surcharge was added, the cost would increase to $37.50. Single coverage is $0 or $5 per month for AFSCME units. If a 25% surcharge was implemented, the cost would increase to $6.25 for single tobacco users. The tobacco charge would have a low impact. The change would also have low severity with modest direct savings with significant indirect savings. Stutsman asked how. Shramek said there would be fewer long-term illnesses and less use of sick leave, which would result in better attendance if a person quit smoking. Neuzil said this is another negotiable issue, and he is surprised a fee such as this has not already been implemented. He asked if there is an option to implement this option without bargaining. Shramek said it would be easier to bargain. Stutsman asked if the mentioned increases were per month. Shramek said yes. Stutsman asked how smoking would be monitored. Shramek said it would be a signed contract with the employee. She said as an example if an employee or family member was caught smoking, the employee would be at risk of losing his/her job. Sullivan said it would be considered similar to lying on a job application. Neuzil said some life insurance policies monitor for smokers.
Sullivan said the smoking charge is interesting. He said the people causing problems ought to be charged, but there is also an addiction factor and it seems a shame to punish for that reason. Neuzil said there are cessation programs available. Shramek said correct. Stutsman said it seems the people who can quit have quit, and she feels conflicted about the issue. However, $1.25 per month is not a great expense compared to the cost for a pack of cigarettes. Sullivan said the increases in tobacco taxes have been proven to cause people to quit. Stutsman asked if a charge could be implemented for alcohol use. She said it would be hard to monitor, but alcohol abuse also causes long term health consequences. Shramek said she is not familiar with alcohol related surcharges. There was also a suggestion for an obesity surcharge. She is not familiar with that charge either.
Shramek said annual accrual sick leave could be reduced. She said employees currently receive 27, eight hour days. She said Ambulance could be reduced to 22 days per year, which has been tried unsuccessfully in the past. Non-bargaining employee's sick days could be reduced to 15 days per year from 18. She said bargaining could be done with the Sheriff's Office, but it has also been unsuccessful in the past. She said the reduction in sick days would have a high impact, low severity, modest savings, and future results. Stutsman clarified the first two attempts with the Sheriff and Ambulance Departments were unsuccessful. Shramek said yes in the past. Shramek said the key to implementing this policy would be to first pass the non-bargaining agreements. She said it would affect many people, but it would give an advantage. Neuzil said people are starting to pay closer attention to County government and expect changes to be made. Stutsman said that is why she was supportive of paying for parking.
Shramek said sick leave pay out could be suspended or eliminated at termination or retirement. This benefit was recently added and goes into effect July 1, 2009. The costs are very high. The cost was $26,000 in 2007 and $32,000 in 2008. Sullivan said he likes sick leave pay out, because it is a reward for showing up to work. He does not like vacation pay out. Harney and Stutsman agreed. Harney said sick leave has a tendency to be abused. Shramek said she likes all of the current benefits and would not like to change any of them. However, vacation is covered by law while sick leave is not. Legally, earned vacation has to be paid out. Sullivan said the Board can make limits on how much vacation can be carried forward from year to year. Shramek said yes. Stutsman asked if there is a maximum for accrued sick leave. Shramek said there is a limit of 30 days. It is 25% or up to 30 days, because employees can have 120 days on the books. Sullivan said he likes rewarding a person who does not use sick leave.
Neuzil clarified maximums can be changed. Shramek said yes. She said instead of 25% of 120 days, which is 30 days sick leave, the pay out could be 15 days maximum. She said there is no holds bar as far as what can be done. Neuzil said it would be interesting to see what Iowa City and Linn County have done. Stutsman asked if sick days are paid out based on today's amount, or based on when they were accrued. Shramek said sick leave pay out is not universal. She said vacation payouts could be changed to be based on the wage at time earned versus the wage at termination. It would increase the administration costs. It would have a low impact, high severity, modest savings and future results. Neuzil asked if it would be worth the savings. Shramek said it probably will not be that much, but it depends on how long a person has been an employee. Shramek said people do like to save their time as a golden parachute.
Shramek said Employee Assistance Program (EAP) services could be changed. She said the County currently has an all inclusive contract, which could be switched to a fee for service contract. She has not explored this option, but there could be potential savings. The change would have a low impact, low severity, modest savings, and immediate results. Sullivan asked how much is paid annually for the all inclusive contract. Shramek said it is $24 per person and a total of about $8,000 to $10,000 annually. Sullivan said there would not be much savings. Shramek said no. She said the wellness benefit could be eliminated, including the financial wellness benefits. Currently, paid time is offered for employees to participate in wellness programs. The wellness division also has a couple of employees associated with the program. She said the change would have a high impact, because it potentially affects all employees and high severity for the individuals directly affected. High savings would be seen immediately.
Stutsman thinks the County has some responsibility to offer a wellness program. Sullivan thought the County was receiving a deal from Wellmark for offering wellness programs. Shramek said the wellness program does not affect insurance rates. However, the program affects rates indirectly, because employees should be healthier. Sullivan said he thought there was a direct correlation. Shramek said no. Wellmark sells wellness plans. Stutsman wondered if the program could be cut down to one employee. She said for many years one employee did handle the program with assistance from nursing students. Shramek said yes. Stutsman said maybe the wellness program could be contracted. Shramek said wellness was just added into Human Resources departments and is more of a luxury to have. She would like to retain the benefit, but overall reductions could be made. Meyers asked if financial wellness was just added not too long ago. Shramek said yes. Stutsman asked if people are paid to administer the wellness programs. Shramek said the County pays up to three hours every year. Stutsman clarified employees are paid three hours every year. Shramek said the presentation is done for free. Neuzil asked if Public Health has two employees or only one. Shramek said Public Health has two, a coordinator and a clerk. Neuzil asked if those positions handle only the County employee wellness program. Shramek said the two employees also do community work. Neuzil said he is not sure there is enough work for two employees.
Shramek said advertisement size and placement for recruitment could be reduced. She said costly resources such as the Des Moines Register could be reduced. She said the Des Moines Register and the Iowa City Press Citizen are high costs. She said the reduction would have a low impact, low severity, modest savings, and immediate results. Sullivan asked what is spent annually on advertisements. Shramek said she could not give an estimate. Stutsman said advertisements are budgeted in different departments. The County does not have a lot of turnover. She asked if people even look at the papers anymore. Shramek said yes. Sullivan asked if there are general ages of people who look at the newspaper versus using online resources. Shramek said probably. Neuzil questioned if the County is going beyond what is required for official publications. Harney said people now access the paper online. Neuzil said someone seriously looking for a job would hopefully be looking at other resources in addition to the paper. Shramek said the internet is clearly the most popular source. Stutsman said it would be interesting to know how many people are responding to newspaper ads versus internet. Shramek said they do collect data regarding the source from which people saw the ad. The number one source is the internet.
Shramek said a hiring freeze could be implemented. She said there are many subcategories with this option. One subcategory is not approving budgeted requests for new positions in the next budget season. Positions that are budgeted but unfilled could be eliminated. Workload could be assessed when there is a vacancy instead of automatically filling the position. Stutsman asked how an open position would be evaluated. She asked if Human Resources would do the evaluation. Shramek said she would like to start evaluations with the department head. Maybe there should be a committee with the Board and Human Resources. Stutsman said she is interested in exploring this option. Neuzil said some elected officials and department heads could be taking advantage of not hiring someone for a few months to stay below their budget allocation. Sullivan said he does not have as much of a problem with people waiting to fill a position, but there have been years when Mental Health/Disability Services (MH/DS) positions were filled with temporary employees. He feels positions are approved with the intent they be filled. Neuzil said people waiting a few months to fill positions are spending the money on other things. Stutsman said there was an engineering position open at Secondary Roads, but she does not think the workload reflected hiring another engineer. She thinks this issue is worth having a committee discuss it. Neuzil asked if the Board should start making hiring priorities and restrict rehiring for positions based on the priority.
Shramek thinks it is important to benchmark with other Counties to compare numbers of employees. Sullivan said the policing departments keep benchmarks. They consider how many officers per 1,000 people are needed. Maybe that should be done with every department. Stutsman said this is a strategic planning issue. The County Treasurer’s Office is an example, because County Treasurer Tom Kriz has been able to provide the same level of service much more efficiently. Kriz has not rehired for a few positions, and it has worked. Neuzil said the key phrase for government has become ‘level of service.’ Governments decide what level of service is provided to citizens. He has a feeling people want less government. Stutsman said people should not expect a 24 hour turnaround on recorded documents. Neuzil said there are expected levels of service for the Sheriff and Ambulance Departments. The Board should get a read of what level of service is expected, because it will be less in certain areas. Stutsman said she would like to build incentives for each department to look at what is being done and how can it be done more efficiently with less staff time. Open positions are often filled automatically. There is no incentive to redistribute the workload rather than filling the position. Stutsman said performance measures and benchmarks within departments are needed.
Neuzil said the next year's budget form should include questions on how a budget could be cut if necessary and how an employee could be eliminated if necessary. He would like the Board to hear those answers. He said departments are currently asked to justify new positions, but it would be interesting to have them think about how they would eliminate positions. Stutsman said the Board has to consider the best use of County dollars. Sullivan asked if there is a way to get departmental employee lists and compare it to counties in the comparability group in terms of staffing. Shramek said all of the department heads would have that information. Sullivan said the Board may want to ask for employee lists sooner rather than later. Stutsman said the Board should finish listening to Shramek's presentation and then determine what steps should be taken.
Shramek said another option is attrition by not filling any positions. They could also ensure that current jobs, budgeted hours, and statuses are truly necessary. This option would have a low impact, high severity for people affected, significant savings, and immediate results. Neuzil said the Board tried to reevaluate mandated vs. non-mandated services before. He said it didn't work, but it may be a question to add to the new budget forms. Sullivan said he does not like the attrition idea, because the Board has to do the work to evaluate departments countywide. It is unfair to punish a department because someone retired. Harney agreed. Stutsman wondered if outsourcing is a possibility for some positions. She said it is unpopular with the unions, but there may be positions that do not require a full-time employee with benefits. Meyers said a good example would be the Building Inspections Department. Stutsman said the County already outsources electrical inspection to Iowa City. Meyers said he asked Budget Coordinator Rich Claiborne to check on this option. The number of permit applications has been steadily declining for ten years. In FY09, $65,000 more was spent than was made. That process could be easily outsourced. Neuzil said that was supposed to be budget neutral. Stutsman asked if those were union positions. Neuzil said no, and they have been high turnover positions in the past.
Stutsman said filing can be done countywide, and perhaps a person could be sent to different departments. Meyers said if a person is doing a construction project, that person should be responsible for the cost, not the Board. He thinks they should look into substituting services. Stutsman clarified the County would still require building inspections; however, builders would be responsible for hiring and paying the inspectors. Sullivan said maybe the $65,000 can be attributed to overstaffing.
Shramek said the County could discontinue consultant use for the collective bargaining negotiator. The County spent $10,000 in 2008 and $19,000 in 2007. This option would increase Human Resources costs and workload. It would have a low impact, high severity, modest savings, and immediate results. Stutsman asked if Shramek anticipates adding another position in Human Resources due to the increased workload. Shramek said no. Neuzil asked what the price will be for 2010. Sullivan said it will be high. Stutsman said it was low in 2009, because there were not many contracts. Shramek said it was low in 2009, because there were only three contracts and there were not many grievances. Shramek said grievances are related to high expenses. Stutsman said maybe the low number of grievances is related to department heads and elected officials understanding the contract. She said grievances often involve conflicts with department heads. Shramek said they can. She said there would be a higher comfort level with doing collective bargaining internally than with doing grievance arbitration internally. If the County were to do arbitration, an attorney would be needed to perform cross examination. Stutsman said attorneys are a lot more expensive than Collective Bargaining Negotiator Judy Perkins. Sullivan said the County is getting a great deal on Perkin’s hourly rate compared to the cost of an attorney. Shramek said yes, the cost is about $100 an hour. Stutsman said this option can be looked at if and when Perkins retires.
Shramek said collaborative efforts could be used. Job sharing could occur between departments, especially with administrative, clerical, and customer service positions. Clerk II's from the Recorder's Office could help the Treasurer's Office during tax time. Neuzil said the Auditor's Office hires a lot of temporary people. It gets tricky, because those positions are paid from different funds. Stutsman said elections workers are becoming more specialized. Neuzil clarified he means temporary poll workers. Sullivan said poll workers are only paid $10 an hour. Stutsman added they receive no benefits. Sullivan said there is a potential to be overpaying if regular employees complete those duties. Neuzil said they would be overpaying if a building inspector was sent to scan documents. If an employee is simply waiting for work to do, they could be performing other duties. The same could be said for an Ambulance employee while waiting for a call to come in. He knows the employee would have to stop everything when a call came in, but he does not understand why another person would be hired for document management when there are employees with idle time.
Shramek said a clerical position could be shared between Human Resources and the Medical Examiner's Office. Meyers said he had a discussion on this issue with Medical Examiner Administrator Mike Hensch. Meyers said Hensch argued there is a degree of knowledge needed to understand terms and fill out documents. Meyers said a person from the Auditor's Office would not be able to help at the Medical Examiner's Office because of the need for specialized knowledge. Meyer said there may be better situations where job sharing would work. Shramek said a clerk could be hired for the Medical Examiner's Office and shared with another department. Stutsman said every department head could make an argument for the need for specialized knowledge. Every department head is also going to argue against losing a position. Shramek said there are collective bargaining implications with position sharing. Job sharing would have low impact, low severity, moderate savings, and immediate to future results.
Shramek said a wounded warrior program could be used for workers compensation. Departments would share light duty jobs. It allows for the employee to get back to work within their work restrictions. However, there has been a problem with implementing this option in County government due to having separate budgets. People do not want to pay for work done in another area. Neuzil asked for an example of how this would be used. Shramek said a person from the Sheriff's Office who is restricted from working with inmates may get paid to stay home if the Sheriff does not have any light duty work available. The person could be paid to do filing in Human Resources instead. Stutsman said this has been an issue at Secondary Roads.
Meyers asked if workers compensation companies encourage this type of program. Shramek said yes. Meyers asked how a person collecting workers compensation affects the County financially. His understanding is that workers compensation policies are generally based on the category of work that the person performs, and the rates are set by the State. Shramek said yes. Savings would probably be seen in premiums. The difference is that the County would be paying the employee their regular wage instead of workers compensation paying the employee. Stutsman said that would be more palatable to taxpayers than paying someone to stay home. Sullivan said the program may also be an opportunity for someone to learn a new skill. Stutsman thinks most people would prefer to do something rather than sit at home.
Shramek said another collaborative effort would be benefit purchasing. It was done with the Joint Purchasing Agreement in 2001 with Marion, Cedar Rapids, and Linn County. Health, dental, life, and long term disability insurance, flexible spending, and EAP were put out to bid. This option would have collective bargaining implications with high impact, low severity, modest savings, and future results. Last time this was done, Wellmark had a strategy for dividing cities. Shared positions could be used for collaborative efforts. She said they could have 28E agreements with other counties or cities for building inspectors, purchasing specialists for supplies and vehicles, grant writers, safety specialists, risk management trainers, medical examiner investigators, information technology personnel, emergency management personnel, and possibly geographic information systems (GIS) personnel. The jobs could be split with other governments if there were two 20 hour positions. The 28E agreement would be used to determine which government the person was employed by and who provides benefits. There are many opportunities for positions that are not full time.
Sullivan said it is common sense, and Iowa and Cedar Counties stand to benefit the most by working with Johnson County. He said Linn County would benefit the least, but it would be easier to work with Linn because the other counties are holding on to every employee they have. Stutsman said it would be better to work with a larger County, such as Linn, because purchasing deals with volume. Shramek said this has been done in the past. Emergency Management had a contract with Cedar County, and the Public Health Department provides clinic services for Iowa and Washington counties.
Shramek said for compensation the County could reduce or monitor overtime hours. She said overtime hours were 22,642 in 2008, which amounts to a cost of $708,524. Stutsman asked if that figure was mostly because of Secondary Roads to reflect the winter. Shramek said yes and the Sheriff's Office. Meyers asked if a large portion of the hours were flood related. Shramek said she would have to look at when the hours were worked to know for sure, but she said it definitely contributed. Meyers said 2008 may be a skewed year, and some of the money spent may be reimbursable from the Federal Emergency Management Agency (FEMA). Stutsman said it is worth looking at and thinks two or three years of data is needed to give a good estimate. Shramek said prior approval of overtime could be emphasized as a requirement. This option would have low impact, low severity, moderate savings and immediate results. Neuzil said overtime is related to the level of service issue, because there is a demand to get the service to an individual quicker. Meyers agreed and said there seems to be a false urgency to get things done now. Neuzil said some of the overtime hours are reimbursable, such as those involving Ambulance and the Sheriff's Office. Stutsman said Secondary Roads worked a lot of overtime hauling due to the flood. The County may have been reimbursed for the hours, but probably not for the wear and tear on the vehicles.
Shramek said the longevity bonus could be reduced or eliminated. She said the bonus cost $166,312 in 2008. The bonus does not include the hourly longevity rate, which would be the Ambulance Department and Secondary Roads. This option would have collective bargaining implications. It would have a high impact, moderate severity, moderate to significant savings, and immediate results. Neuzil said there was talk in the past about bumping employee wages in exchange for longevity. Stutsman said this is frustrating, because the Board does not get any credit for collective bargaining. This option does not apply to all employees, however. Shramek said it is only for people who have been with the County for over four years. Neuzil said a different strategy could be looked at such as adjusting the number of years. Stutsman said this option was originally implemented because County employee salaries were lower than many others. Stutsman said salaries are competitive now.
Shramek said another compensation option is to temporarily reduce hours of work. Reduced work weeks could be implemented. The Administrative Contract is set up for 37.5 hour weeks. They used to have 37.5 hour work weeks, and there are a couple of employees still on that schedule. Options to reduce the work week include having seven and a half hour work days, having a consistent close time, and closing one day per week while having four 9.5 hour work days. Neuzil asked how the option would save money. He asked if it involves fewer dollars to employees. Shramek said yes because employees are currently paid for 40 hours of work, and this option would reduce their hours to 37.5. She said full time benefits would still be paid.
Stutsman asked if furloughed court days have been a big issue in the community. Human Resources Coordinator Vanessa Wierman said her husband is an Assistant Attorney General in Clinton County. The community does not like furloughed court days but has dealt with it. County Recorder Kim Painter said there was a high profile situation when the State Supreme Court ruled on same-sex marriage. The initial date for the ruling was Friday, March 24, 2009, which was a furloughed day, so the decision had to wait until March 27, 2009. The national news had the March 24 date, and the State had to redistribute the information. County Treasurer Tom Kriz said his wife works in the Clerk of Court's Office, and it caused them to get behind on their work. The State has now made judges take a furlough day, which has put more money into the system. He said the Court currently closes to the public at 2:30 p.m. on Tuesdays and Thursdays. It is not very cost effective, because productivity drops during those times. He said the option slowed the court system down.
Neuzil said furlough is a level of service issue. Painter said it creates difficulty when people are seeking services from the Recorder's Office and need something from the Courthouse. Those people are stalled and have to take another trip or day off of work. Stutsman said the offices on the top floor of the Administration Building used to close at 4:00 p.m. People were often very angry. Neuzil mentioned California's direct legislation initiatives. He said the only initiative that will pass is a freeze on elected officials’ salaries. He said people want services but do not want to pay for them in taxes. He does not know how much authority the Board has over Elected Officials other than to set hours and tell them, if they want to stay open longer, they can find out how to do so in their budgets. Stutsman said there is one office that is open until 6:00 p.m. Kriz said the Board can tell people to stagger shifts. Most people do not want a 37.5 hour work week. Stutsman clarified Kriz does not want a 37.5 work week. Kriz said yes. People drive in from far away and are willing to stay longer. The best time was when there was a four day work week. The unions did not like the four day week, but the employees loved it. Neuzil asked if Secondary Roads did that for the summer. Shramek said it did not happen in the end. Neuzil asked if that was a negotiating issue. Shramek said it was in their collective bargaining agreement.
Neuzil wondered what the cost savings are for a four day work week. He asked if there would be savings in reduced wear and tear of the building. Stutsman said the building would still be open five days a week. Kriz said people would work alternating shifts. Harney said a problem with the four day work week arises when people deal with babysitters and sick leave. He said service takes a dive, and it is not more cost effective because it creates more problems. Stutsman said the other option is to allow people to work from home. Shramek said that option was discussed, but there would not be any cost savings because the building would still have to be open. Stutsman said people may also do other things at home besides work.
Shramek said a furlough could be implemented for a holiday, such as Columbus Day, to be a ‘no pay day’. That is a day the public does not expect the building to be open. They could implement having one day off per quarter or month, depending what is necessary to meet budget obligations. There could be a County shut down during a low productivity time. The County could close down one week a year, perhaps between Christmas and New Year’s Day. This option would have collective bargaining implications. It would have high impact, moderate severity, significant savings, and immediate to future results. Stutsman asked about adopting the State holiday option. The County is closed, and DHS is open on at least one day a year. That is confusing for people. She asked if the change would have bargaining implications. Shramek said yes.
Shramek said other compensation ideas include a voluntary reduction in force or RIF. A severance package could be offered to non-bargaining employees, and bargaining could be done with bargaining employees. Voluntary lay offs could be implemented, and individuals would be eligible for unemployment compensation at that time. Lay offs for both bargaining and non-bargaining could be implemented. AFSCME has notice periods of 90 days for Ambulance and 20 days for Social Services and MH/DS. She said that would have a low impact, high severity, significant savings, and immediate results. Neuzil said most of the options can not happen unless they are negotiated. Shramek said for the most part. Neuzil clarified they cannot furlough without bargaining. Neuzil asked if there is an out for anything. He asked how the State does it. Shramek said the Board can try it. Harney said the State closes for a day and has unions. Neuzil asked how they do it. Stutsman asked if they get paid. Harney said no, that is without pay. Stutsman asked if bargaining people get paid. Shramek said they would have to reopen the contract and renegotiate.
Kriz said in the Clerk’s Office, the State went to AFSCME and said they are going to furlough, and people can be laid off if they do not want to accept it. Sullivan said the difference is the State is faced with multimillion dollar short falls. The County has a pretty level budget. Neuzil said the Board wants a contingency plan, but this brings up the question of whether or not to look at non-discretionary dollars before other things are implemented. He assumes they will do a combination of things. Stutsman said the Board should carry through on so-called threats. Otherwise people do not take them seriously. Shramek said a wage freeze could be implemented. She said no COLAs for bargaining and non-bargaining. No step increases for bargaining and non-bargaining. She said this option would have bargaining implications. Non-bargaining merit increases could be reduced or suspended. She requested $84,000 in FY09. This option would have high impact, low severity, significant savings, and immediate results. However, it would be hard on morale.
Shramek said policies and contracts currently in place could be enforced for management ideas. Flex time would not be used hour for hour or for full day increments. They could also require car pooling, monitor credit card late fees and interest, monitor internet use during work hours, monitor use of County property for personal use, discontinue extra allowances, and discontinue winter wear allowances. She said this would have low impact, low severity, moderate savings, and immediate results.
Shramek said they could reduce travel and training. In-State conferences could be encouraged rather than travel conferences, and policy could be enforced. It would have low impact, moderate severity, significant savings, and immediate to future results. They could also decrease the use of County vehicles and not allow some employees to drive them to and from home daily. They could switch to reimbursement by mile instead. It would have a low impact, high severity, moderate savings, and immediate results. She said the mileage reimbursement rate could be lowered from the current rate of $.47. The travel premiums could be reduced, or they could require receipts not to exceed the amount. This option would have a high impact, moderate severity, modest savings, and immediate results.
Shramek said they could invest in global positioning systems (GPS) for vehicles. This was done before in one department, and the results were amazing. Stutsman clarified people not finding their location and adding extra miles. Shramek said people parked at their home and not working, for example. Sullivan said all of the Ambulance vehicles have them. Shramek said SEATS has it too. Shramek said Secondary Roads has also looked into it. Shramek said it would not affect many people, but it would have high severity, potentially high savings, and future results. All County oil changes could be performed internally, and one garage could be selected to perform auto repairs and maintenance. They could limit the purchase of new vehicles and reduce the regular trading or the trading at the end of the fiscal year. It would have low impact, low severity, moderate savings, and immediate results.
Shramek said they could stop introducing new benefits and enhancing current benefits. The wireless communication stipend could be reduced. The stipend is currently $40 a month for cell service, $20 a month for data plan, and $50 every couple of years for new equipment. Stutsman asked how much that is costing the County. Human Resources Coordinator Dana Winkowitsch said it is about $24,000 per year for the amount of people currently signed up. Shramek said they could decrease clothing allowances. They could invest in badges versus clothing for identification for some departments. Sullivan said a lot of departments are buying the shirts themselves. Shramek said some are. Stutsman asked what Sullivan means by buying themselves. Sullivan responded Planning and Zoning Administrator Rick Dvorak gave employees a catalogue, and they bought them with their own money. Shramek said Planning and Zoning receives an allowance. The building inspectors receive an allowance, but she does not know about the other employees. Sullivan said Dvorak and Assistant Zoning Administrator R.J. Moore bought theirs with their own funds. Shramek thinks the Treasurer's Office also does that. Kriz said they buy them with their own money. Neuzil said shirts would be a good project for the Communications Committee. Shramek said it does not affect that many people, but it has a high severity, modest savings, and immediate results. Stutsman said another option would be to have one style to save with bulk orders.
Shramek said the Employee Appreciation Lunch could be suspended; however, it was only $655. Stutsman said they could have a potluck instead. It is great for employees and morale, but she does not know how the public perceives it. Shramek said they could reduce or discontinue serving food at the Employee Recognition Ceremony. It would have high impact, low severity, moderate savings, and immediate results. Flu shots could be provided only to regular employees, or they could discontinue providing in-house flu shots. The County spends about $3,000 including payment and employee wellness time. Stutsman said people are still going to be concerned about H1N1. Harney said when flu shots were implemented, the thought was that money would be gained by people not being sick. He said the effect cannot be measured. Shramek said they did measure it by pulling sick leave results, and they have increased. Winkowitsch said she pulled them for the last five years. In the first two years, the usage was 18,000 hours countywide. It then went down to 15,000 or 16,000, but it is back up to 18,000. Harney asked if there is any way to measure based on the people who got shots as opposed to the people who did not. Shramek said no, it would be considered confidential. Stutsman said they could offer it at a reduced rate for family members. Sullivan said part of the idea was that it does not do any good for the employee to have the shot if he/she has to stay home with sick children. Stutsman said they could charge for the shot for the children instead of offering it for free.
Shramek said they could discontinue the Employee Computer Purchase Program. The interest-free loan was not recommended by the State Auditor. They do not collect on defaults or follow up on them. This change would have high impact, low severity, moderate savings, and immediate results.
Shramek said the department heads know best how to reduce their budgets, and they should ask them. Neuzil said that comes back to the issue of prioritizing. Harney said they need to take a strong look at the budget. They have other places they can cut without affecting personnel.
Claiborne said $132.4 million is the budget after the amendment on May 21, 2009. The Conservation Bond was $2.2 million. Meyers clarified that is a pass through. Claiborne said it is reported as the County Budget. Claiborne said the $85,000 budget he gave to Shramek is a more accurate operating budget. Meyers said that would be the number cuts would be made from, not the $132 million. Claiborne said right. Neuzil said it comes back to the question of how this year’s budget should be approached. He asked if they want to include ideas regarding what department heads would do if they had to cut their budget. He asked if they should look at non-discretionary dollars before looking at major employee reductions. There are a lot of departments that provide non-mandated services. Stutsman asked if he is talking about services not required by statute. Neuzil said yes. Stutsman asked for clarification. Neuzil gave UAY and block grants as examples. Claiborne said Department 23 is a large one. He said they checked Iowa Code years ago, and the County pays the libraries much more than is required. Stutsman said she does not want the Board to make false threats. Sullivan said the assessors are talking about everything being flat. If income remains flat, they need to find a way to make expenses be flat as well. That is not easy. Meyers said they are automatically 3% behind because of raises.
Stutsman said the average tax payer gets upset over the cost of living issue. Cost of living is discretionary, and the Board does not always view it that way. The State does not view it as mandatory, but County government does. Meyers asked if that is part of the bargaining agreement. Shramek said she will need direction from the Board regarding anything for collective bargaining because of the lead time necessary. Harney said he does not like the longevity benefit, because someone is not a better employee simply by staying for years. Neuzil said there are a lot of things on Shramek's list that should be explored. He wants to hear from other departments, but does not know how to do that other than through the liaison process. Stutsman said she is cautious that any department is going to be willing to lay people off. Neuzil said the Board can ask department heads what position they would eliminate if they had to eliminate one. Sullivan said another approach is to ask department heads how they would produce a 5% savings. Harney said there is a problem with some elected officials and departments always asking for more money. Sullivan said it would be helpful for the Board to review a list of each department’s strategy to save money. Stutsman said she wants to know where they are at budget wise before they start the process.
Harney said he does not think the Board will have to implement many of the ideas from the list, but it is good practice and may improve efficiency. Neuzil said it is important to look a few years ahead, particularly for negotiations. If he has to choose between giving a block grant or a non-discretionary mandated cost and firing an employee, it seems like an easy decision. The Board needs to create a list of priorities. An option may be funding half years. Claiborne asked if a Department Head and Elected Official Meeting should be held during the next few months to discuss ideas for the future. Meyers said Iowa City is currently doing something similar. The City asked department heads how they would cut 1%, 2%, and 4% from their budgets if they had to do so. Shramek said there was a mandatory cut a few years ago. Neuzil said it was in 2003. Shramek said she remembers cutting her part time employee, and then some departments got a return on their cuts after begging to the Board. Stutsman said that is political will. She will not vote for cutting something unless all of the Supervisors are behind it. She is not going to deal with the backlash. Sullivan said he would like to see a one page form that is required for department heads and elected officials to complete. The form would evaluate where cuts would be made, and the Board would review the results and prioritize them.
Painter addressed the cuts made in the past. She said they do not always start from an equal point, specifically elected officials. She is experiencing life with one fewer bargaining position in her office and is hopeful she can get along without it. There is a hugely popular array of elected officials in Johnson County. She asked how the Board will approach people that have different views regarding whether it is negative or positive to make cuts. She had just cut her operating budget in half before the cut in 2003. She did not have any fat when it was time to make cuts. When departments start from different positions, some have to make a plea. Sullivan said his hope is that it would show up in the form, but it might not. Harney said he thinks many of the results will be things that affect the public inadvertently. Sullivan said, depending on what it is, maybe that is okay. Stutsman said if she is up for re-election, she does not want the public to be upset. Neuzil said that is a big incentive for other elected officials. The Board is in the process of coming up with a contingent plan. The idea is to avoid cuts across the board. They should use the forms to determine which budgets are cut back. Neuzil said a 5% cut from an office that has already made cuts is a lot different than taking 5% from a department that has not tried to make any cuts. Stutsman said she would never again support an across the board cut. She said it is the easy thing to do. Sullivan said it is the lazy thing to do.
Neuzil said he thinks they have to look at a holistic approach. Stutsman said they need to have a different attitude about the budget. They need to develop trust with department heads and elected officials that their budgets will meet their needs. There are a lot of departments that put in higher expenses to protect their budgets. Neuzil said in the evaluation process, there is an element where the Board can penalize for not doing new things. Stutsman said they need to do more with assessing the long term impacts of budgets. There are some people that turn back large amounts of money every year. Sullivan said when doing a home budget, it is obvious to overestimate expenses and underestimate revenues. However, if too much of that is done in government, it can result in needs not being met due to money sitting unused in a department. That is like taking the budget process away from the Board of Supervisors. Stutsman said or people are being taxed for money that is not needed. Sullivan said in this circumstance, the Board has to emphasize accuracy rather than safety. Accuracy is needed. Stutsman agreed. She said the caveat is that the Board does not put any type of incentives or disincentives on doing that type of budgeting. Sullivan said it is hard to give incentives in government.
Claiborne said he told the Finance Committee that his Government Finance officer (GFO) training was put on by a county in Colorado. That county came up with an incentive program he thought would work for Johnson County. An example of the incentive is if a department came in with $100,000 over expected revenues, they can take $50,000 to buy a one time piece of office equipment. If expenses came in low, they would carry some forward for their choice of expenditure. The County did it successfully for four or five years, and it started as strategic planning.
Harney thinks the Board also needs to consider essential services versus required services. He said Sullivan's idea is true, but the leftover money will be spent down. Stutsman said that is the trust issue. Neuzil said they do not want to penalize departments for not coming up with a whole new program. Stutsman said then they should budget for that. The Board approves budgets, and it is difficult when budgeting is done 18 months out. She said new programs are the purpose of budget amendments.
Sullivan said he still likes the form idea but asked what direction they should give to Human Resources. The Board should talk about this and come up with a few things to pursue. Johnson asked if it would be helpful for him to make a list of the options and send it out to each Supervisor to write their opinion regarding each option. Sullivan said some of the issues need to be broken down into a couple of categories. Some of the options would need to be bargained and others could be done without that process. Neuzil asked if Johnson wants yes/no responses from the Board or a list of priorities. He said there would be a lot of yeses. Harney said they need to look at the budget side as well as at the personnel side. Neuzil said absolutely, and it would be helpful to have a draft of the form at the next Strategic Planning meeting. The form should include questions about how cuts would be made and about what non-mandated services are provided. He said then it is a question of level of service. Sullivan asked if a draft could be issued in a week.
Meyers left at 10:57 a.m.
Stutsman said this is important enough that she would like to keep it moving. Sullivan said if a form could be looked at on May 27, 2009, it could be sent out to people in time to have responses by the next Strategic Planning meeting. Stutsman said an incentive could be giving the taxpayers a break. Sullivan said it depends on what is on the sheets. It is a decision that will have to be made. Neuzil said there is a Department Head Meeting on June 16, 2009 and a Strategic Planning Meeting on June 17, 2009. The compiled list can be given to department heads, and it can be explained that it includes the options the Board is considering. Johnson asked if the next Budget meeting should be focused on the overall budget. He will work with Claiborne. Stutsman said she would like to see some analysis, projections, and trends. Neuzil mentioned looking at rural libraries and a list of current contracts. Stutsman said they should only have one contract with the Iowa City Library. She said there is an Inter-library loan. Neuzil said last time they looked the budget was around $1 million, and the requirement was $64,000 from the rural fund. The County is 55% or 65% of the Solon Library budget. It would have to be a phase out. Sullivan said that is rural, which has to be looked at separately, because the Rural Fund does have room and the General Fund does not.
Johnson asked where the suggestions from the budget suggestion cans should go. Neuzil said they go to the Board Office. Johnson asked where all the cans are. Sullivan said every building has a can. Neuzil said he will work with Johnson on compiling the suggestions. The suggestion regarding different health care plans was explored. Harney asked if the 90 day AFSCME notification for a lay off applies to all AFSCME employees or just Ambulance employees. Shramek said just Ambulance. A 20 day notice is required for Social Services. Harney clarified that no one else has a required notice. Shramek said there is not requirement, but she would still like to give a notice. Harney said he is frustrated by department heads saying what they cannot do as opposed to what they can do. Neuzil said there is a mentality that has to be adjusted. Sullivan said they have to emphasize to people that it is unacceptable to say they cannot make a cut. They have to ask what they will do if there is a specific cut. It may be dramatic, but that is fine. Neuzil said the issue will be level of service when they look at non-mandated services. Sullivan said they need to know the actual, real impact.
Kriz said this is a great exercise for department heads. Stutsman commended Kriz and said it was not easy for him to make those types of cuts. Kriz said they owe it to the taxpayers to look at it. Neuzil said he is getting a sense of a changing mentality on spending from the Board. Stutsman said the Board did not hold the freeze on operational budgets to 100%. Claiborne said SEATS was paid for by the labor material savings. Neuzil said Ambulance got more money. Claiborne said their back was against the wall with the position for Medical Examiner. The University of Iowa was not going to provide a person anymore, and Medical Examiner Administrator Mike Hensch absorbed the personnel change and cut his budget. Neuzil said it would be nice to have an analysis of which departments held to the freeze and which did not and why. Claiborne said SEATS and Medical Examiner were the only two that did not.
Adjourned at 11:07 a.m.
By Nancy Tomkovicz, Recording Secretary