Allegany County-wide Shared Services Initiative met June 26.
Here is the agenda provided by the Committee:
Present:
Town Supervisors
AlmaRonald Staedt
CaneadeaPhil Stockin, Deputy Supervisor
Local Government
Curtis Crandall, Chairman Allegany County Board of Legislators
Phil Stockin, Legislator
Dwight “Mike” Healy, Legislator
Gary Barnes, Legislator
Janice Burdick, Legislator
Tim Boyde, County Administrator
Terri Ross, County Treasurer
Jodi Adams, Assistant to the County Administrator
Keith Hooker, IT Director
Joseph Budinger, Real Property Tax Director
Bob Budinger, Human Resources Director
Kier Dirlam, Planning Director
Michelle Denhoff, Planning Specialist
Lori Ballengee, Director of Public Health
Carissa Knapp, County Attorney
Public
Michelle Staedt
Casey Jones
Paula Clayson
Dean Clayson
Heather Trask
Dan Hegarty
Gary Mattison
Media
Edward Linnecke, Spectator
Call to Order
The public hearing was called to order at 6:05 p.m. by Allegany County Administrator Tim Boyde.
Mr. Boyde welcomed and thanked people for attending.
Mr. Boyde remarked that sharing services is not a new concept and that our local municipalities have been sharing services for a number of years. He noted that we began working on developing a plan last year. Prior to that in 2015, the County submitted a tax savings plan to the state.
The current state mandate requires that top elected officials in the county (County Administrator, Town Supervisors, and Village Mayors) complete a cost savings plan, vote on the plan, and submit the cost savings plan to the state in September 2018.
The County-Wide Shared Services Initiative (CWSSI) plan is being prepared for public input in compliance with Legislative Statutes and requires that each county develop a plan designed to share services and reduce the local tax burden.
The current mandate began in June 2017 and with assistance from our consultants, the Center for Government Research (CGR), has continued to this point. At today’s public hearing we will receive input on the proposed options that have been identified throughout the process.
Participants in the development of this proposed plan have included the chief elected official from each town or village as well as representation from the Allegany County Board of Legislators.
Tonight’s meeting is the first of three required public hearings that will be held to discuss the plan and provide an opportunity for public review and comment. The second and the third public hearings will take place in the Legislative Chambers of the County Office Building in Belmont on August 13 at 10:00 a.m. and following the Board meeting at 3:00 p.m. Towns and villages should forward all requested information, suggestions, and feedback to CGR by July 9.
On September 15, the final plan will be submitted to the state. The state has defined the plan’s voting members as the panelists comprised of the County Administrator, the Town Supervisors, and the Village Mayors.
Mr. Boyde clarified that the plan has several components and some components will not apply to all of the participating municipalities. Also, just because a municipality voted to approve the plan, does not mean the municipality is required to follow the plan. However, participating municipalities are required to vote on the plan.
This process has been driven by the state.
Mr. Boyde then introduced Mr. Paul Bishop with the Center for Governmental Research Firm (CGR). Mr. Bishop distributed copies of the PowerPoint presentation.
Mr. Bishop summarized the previous meetings and stated that several areas have been identified for further cost savings discussion including assessments and water and sewer systems. Generally, the action steps will take from one to three years to achieve. In some cases, there have been valid ideas shared, but there isn’t enough information known about the topic at this point in time to include it in the plan since defining the cost savings amount would be difficult.
Mr. Bishop talked about the key objectives for the County-Wide Shared Services Initiative (CWSSI). CGR began by re-engaging towns and villages in discussion and held several public forums to find new opportunities or ways to expand on existing shared service arrangements. Also, CGR evaluated the potential impact of new shared service opportunities. Participating towns and villages will sign-off on participation and quantify their cost savings.
Mr. Bishop stated a more refined plan that meets CWSSI requirements will be developed for consideration and adoption in August 2018.
Mr. Bishop stated the project timeline as:
•Initial Interviews and data collection (Feb-Mar)
•Data collection and topic area focus groups (Mar-Apr) April 2018
•Draft plan to municipalities and county (May – Jun) June 26, 2018
•Finalized draft plan approved (Jul – Aug)
•Panel meets (August 2018)
•Submission of plan to State (pending approval) – (September 2018)
Mr. Bishop discussed the 2018 Shared Services Plan’s components including:
1.Leveraging Health Care Consortia to Generate Insurance Savings
2.Converting Streetlights to LED Technology
3.Group Purchasing of Electricity and Natural Gas
4.Online and County-Supported Tax Collection
5.Centralized Bulk Purchasing
6.Joint Tax Assessment and Property Revaluation
7.Collaborating on Water and Sewer Services
8.Evaluating Potential Municipal Reorganizations
9.Exploring Shared Highway Equipment, Offices, Staff, and Contracts
On August 13, the second and third public hearings will be held in the Legislative Chambers in the County Office Building. The plan needs to go to the state, and the final decision for approval is the responsibility of the panelists (County Administrator, Town Supervisors, and Village Mayors).
Ideas needing more information and analysis can be included in future plans. It was mentioned that the state may require additional plans from the County going forward.
Mr. Bishop requested suggestions for improvements and stated they could include corrections to typos, requests for additional information, and requests to consider removing information from the plan. Please submit all comments for consideration to Mr. Bishop at CCGR or to the County Administrator by June 26.
Concerning health care consortia and municipal cooperatives, local governments can share costs for health care insurance for their employees. Together, the towns, villages, and County spend nearly $9 Million annually on health care costs. This expense could be reduced by 5-7 percent. In order for this component to be implemented, broad support and participation are needed. In addition, this will require a substantial fund reserve and a 2,000 covered lives threshold will have to be met. However, Mr. Bishop noted that several other rural areas have found ways to reach the 2,000 participants and are experiencing a savings. He noted the idea with the health care cooperative is to maintain the same or very similar medical coverage for less money.
Paula Clayson from the Town of Alma asked if the same coverage and providers are guaranteed. Mr. Bishop stated that he could not make any promises at this point, but he recommended that we continue to gather more information on this topic because it has worked with significant cost savings for other municipalities in rural areas. Ms. Clayson mentioned that she is concerned that individuals with preexisting medical conditions will not receive the same coverage at the same rate. Allegany County Personnel Officer Robert Budinger stated that it is illegal for providers to disclose preexisting medical information to providers when determining medical insurance rates. Ms. Clayson stated it will be a challenging option considering the existing collective bargaining units county-wide. Mr. Bishop stated that all of the barriers that we’ve discussed will have to be explored further, but his position remains that the barriers presented tonight are not valid reasons to discontinue exploring this option. Also, towns and villages have the option to opt out of this aspect of the plan if they choose. Legislator Dwight “Mike” Healy stated network providers and the physical locations for in-network and out-of-network providers is not a simple process in our rural area. Mr. Boyde stated coming up with the required 2,000 participants which does not include dependents or retirees is a stretch. Mr. Boyde mentioned if the threshold was reduced, it would be helpful.
Concerning the converting municipal streetlights to LED technology option, Mr. Bishop reported that in 2016, Allegany County municipalities paid more than $250,000 in street lighting costs. Either utilities maintain ownership and pass savings to municipalities, or the municipalities purchase the streetlights at a cost of about $430 per fixture. The recurring savings are about 40 to 50 percent of the annual street lighting costs. Mr. Bishop stated there needs to be 800 lights for the aggregation contract to work with NYSERDA. Most local governments in Allegany County fill their energy needs for municipal facilities including water and sewer facilities by purchasing directly from private providers. There are a few municipalities already using group purchasing. Town of Alma Supervisor Ron Staedt stated that he heard that the NYS Power Authority lowered the number of street lights required for the LED replacement program from 800 to 500 lights. He explained that participating towns and villages will own the lights and will receive a zero percent interest loan to replace the current street lights with LED lighting.
Mr. Bishop explained that partnering with the Municipal Electric Gas Alliance (MEGA) is another option that municipalities can take advantage of to reduce utility costs for the towns and villages that are not currently participating in the municipal cooperative.
Concerning centralized bulk purchasing and competitive bids, Legislator Janice Burdick stated that town and village clerks share information on supply costs and savings with each other through the county-wide clerks’ association meeting.
The Town of Rushford shares a coordinated assessment program. Mr. Bishop stated that if other municipalities implemented a similar approach to assessment, there is potential to save $20,000 each year.
Concerning water and sewer services, a shared operator contract would be helpful. Also, a centralized training certification program would be helpful. Human resources are the greatest challenge in some cases since different systems require different levels of training and certifications for operators, and the equipment used is different. It is difficult to project cost savings when more information is needed.
Mr. Bishop stated that NYS towns cannot dissolve, but villages can choose to dissolve. Mr. Bishop reported that a number of small communities in Allegany County are finding it hard to operate, lack funding, and cannot fill necessary positions in a timely manner. This is another area that will require more information for consideration and cost savings.
Since the change in NYS Law in 2010, no villages have dissolved. However, there is an incentive to dissolve the CETC Citizens Empowerment Tax Credit (15 percent of combined tax levy). It is required that 70 percent of the tax credit incentive received is used to reduce taxes.
Mr. Staedt stated that the Town of Alma does not receive any State Aid Revenue Sharing. County Treasurer Terri Ross recommended that Mr. Staedt check into the funding status. She thought that the Town of Alma should be receiving funding and stated that it is generally dispersed in September. Legislator Phil Stockin stated that the State Aid Revenue Sharing allocation for the Town of Caneadea has been static for a long time.
Mr. Bishop noted that highway expenditures represent the top 1-2 cost center for municipal budgets. Mr. Bishop noted that currently $14 million is spent each year on capital equipment expenditures and stated that if we could save 1 percent, this alone would be substantial savings. Currently, towns and villages share lowest bid information, highway personnel, equipment, and services. Mr. Bishop noted a lot of the existing sharing of resources is based on a gentleman’s agreement, and there is a need to formalize the sharing of resources to accurately demonstrate the savings achieved by these efforts. There are some inter-municipal agreements for shared road maintenance, snow removal, and plowing. Some towns and villages share gravel pits. Mr. Bishop asked if there is a need for a highway supervisor for each town. Could the function be managed regionally across the county? Paula Clayson from the Town of Alma remarked that often the highway superintendents serve in dual capacities and perform the job of laborer as needed. She stated that if you were to eliminate the superintendent position, you would still need to hire a laborer to perform the work. She added that highway equipment is costly and said that some municipal workers have more experienced operators that take better care of the equipment. She mentioned if the equipment is shared and then is returned damaged, it is costly to repair. Mr. Bishop stated he felt the greatest gain in this area will be to formalize the agreements through memorandums of understanding and signed agreements.
Legislator Phil Stockin stated that Mr. Bishop and the CGR folks met with the town and village clerks and the highway superintendents to garner support, listen to their ideas, and gather information, and engage people in the process.
Mr. Bishop asked if there are additional possibilities that haven’t been discussed at the meeting.
Legislator Phil Stockin noted that technology services are needed. Currently, the Town of Caneadea has a contract with a vendor from another county that handles technology service needs. Is there a local vendor that could provide this service?
Ms. Clayson asked what became of the shared services list that the County provided to the state in 2015. Mr. Boyde stated there has been no further communication from the state to the County concerning that information.
Mr. Staedt noted that the State Assembly and Senate have extended the tax savings plan in 2019 and anything that we’ve done in prior years to reduce taxes will not count going forward.
It was stated that if the County were to take over services from the towns and villages, it will cost more. County Administrator Tim Boyde stated that each component will have to be closely analyzed to determine what makes the most sense in terms of efficiency, quality, and cost. He shared an example of how costs could potentially be reduced.
Mr. Casey Jones of Transformation Initiative Building Health Communities through Health Families, asked Mr. Boyde when the public hearing will start. Mr. Boyde replied that the meeting serves as the public hearing, and the agenda has been organized to discuss the plan and its various components, and then provide an opportunity for public comment on the plan. It was noted that Mr. Jones was the only representative at the meeting that requested to speak. Mr. Boyde assured Mr. Jones there would be an opportunity for him to provide his comments on the plan.
Ms. Clayson remarked that concerning online tax service that the public would still be going to municipalities with checks. It was noted that payments can be made online, by mail, and that the Treasurer’s Office is open weekdays. Most municipalities operate office hours part-time. Again, this option can be further explored to determine if it will result in cost savings.
Mr. Boyde announced that it is time for public comment and invited Mr. Jones to share his comments. Mr. Jones began by stating he has been in the business of community planning and consulting for over forty years and is very disappointed in the plan at this point. He is disappointed that the plan appears to only save $200K. He noted that it cost the County $80K for the consultants to develop the plan. He stated it seems to him that the plan is fairly boiler plate and felt that the County should have a more robust plan. He felt the plan represents taking a “low hanging fruit” approach, and he is interested in knowing how the budgets for each municipality compared. He felt there are three key functions for local government including public works, public safety, and administration. He stated for $80K, he thinks Allegany County should request the consultants drill down the information further to provide a more concrete plan and avoid generalities. He asked if the consultant met with key people to gather information including the highway superintendents. Mr. Bishop indicated that he had met with the highway superintendents, town and village clerks, and other local representatives throughout the process. Mr. Jones said that he’d be interested in seeing a revised plan. He thanked the group for the opportunity to share his comments and concerns.
Legislator Phil Stockin remarked that highway operations differ for municipalities. He stated that municipalities have been working on tax savings and shared services for years. He referenced working with Baldwin’s financial services for bookkeeping services for the Town of Caneadea which resulted in significant savings.
Mr. Boyde then asked the Legislators in attendance if they would like to make any comments on the plan.
Legislators Gary Barnes, Phil Stockin, and Dwight “Mike” Healy reported having no further comments to add to the discussion at this time.
Legislator Janice Burdick remarked that municipalities have a choice to participate in the process and plan.
Chairman Curtis Crandall stated that we were forced to coordinate this process by the Governor. We tried to make sure municipalities were engaged and involved throughout the process, and the plan that has been presented represents the ideas that were discussed and supported through the process as having potential for cost savings. In the past, we’ve applied for grants to study the feasibility of some ideas contained within the plan only to find out that planning grants were discontinued and that implementation grants were funded. Chairman Crandall stated that he appreciates the process and is hopeful when it is completed, that we will have a solid plan.
Next Steps Include:
•July 9, 2018 – Municipal comments on draft plan due to CGR
•August 1, 2018 – Final plan sent to County Legislature and CWSSI Panel
•August 13, 2018
oCWSSI Hearing #2 at 10:00 a.m. o County Legislative Meeting
o CWSSI Hearing #3 at 3:00 p.m.
•September 15 - deadline for CWSSI Panel to vote on plan (State submission deadline)
•October 15 - County Administrator presents approved plan to public
Adjournment
There being no further business to discuss, the meeting was adjourned at 7:37 p.m.
https://www.alleganyco.com/wp-content/uploads/COW-06-26-18-Minutes-CWSSI-Public-Hearing.pdf
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