Administrative Services Committee Meeting

Administrative Services Committee Commission Chamber- 12/12/2011- 1:05 PM Meeting ADMINISTRATIVE SERVICES 1. Motion to approve the 2012 Annual Bid Items for: Attachments A - Environmental Services B - Recreation, Parks and Facilities - Newman Tennis Center C - Marshal's Department D - RCCI 2. Motion to approve assessing a 5% surcharge to all tobacco users Attachments currently covered in the group health insurance plan that choose not to either terminate their tobacco usage or participate in a tobacco cessation program offered by Augusta, GA, effective March 1, 2012. 3. Task the Administrator with utilizing the procurement process to Attachments solicit the services of an outside forensic auditing firm to perform an audit of the city's finances and contractual obligations. The audit must include but not be limited to the following: (a) TEE Center Parking Garage/Land Acquisition/Associated Leases/Financing, (b) Utility Department Water Rates for Golf Courses/Other Special Agreements, (c) Environmental Services Division, (d) Augusta Transit Department Privatization, (e) Augusta Municipal Golf Course Privatization, (f) Retroactive Pay Increases, (g) SPLOST Fund Projects, and (h) Land Bank. (Requested by Commissioner Lockett) 4. Discuss approval of application for a National Endowment for Attachments the Humanities (NEH) Planning Grant, which ranges from $40,000 -- $75,000, to assist in the planning of a Heritage Trail for Laney Walker/Bethlehem (and contiguous neighborhoods in Augusta’s urban core). 5. Task the General Counsel with soliciting an opinion from the Attachments Attorney General as it relates to the meaning of the term  "ordinary business" as used in House Bill 805 (Charter). This opinion must include examples of business that can be approved with six Commission-Council votes and what business requires two-thirds of the Commission-Council for approval. An opinion needs to be made as to the legality of the Personnel Policy and Procedures Manual since its passage was treated as ordinary business when much of the content deals with restructuring the government. All restructuring/reorganization contemplated will be placed on hold pending an AG opinion. The General Counsel will consult with the Chair of the Administrative Services Committee and will present proposed brief to the Commission prior to submission to the AG. (Requested by Commissioner Lockett) 6. Discussion by the Administrator regarding solutions to pay Attachments disparities created among Senior Executive Service Employees resulting from the 43 pay increases effective May 2, 2011. Additional information should be provided to demonstrate that policies have been implemented to prevent such a recurrence. (Requested by Commissioner Lockett) www.augustaga.gov  Administrative Services Committee Meeting 12/12/2011 1:05 PM 2012 - Annual Bid Recommendation of Award Department: Procurement Caption: Motion to approve the 2012 Annual Bid Items for: A - Environmental Services B - Recreation, Parks and Facilities - Newman Tennis Center C - Marshal's Department D - RCCI Background: A: Environmental Services 12-027 Rock Hauling Services 12-060 Various Pipe, Couplings, End Sections 12-062 - Pesticides Mosquito Control Chemicals B: Recreation, Parks and Facilities 12-069 Trophies and Plaques C: Marshal's Department 12-042 - Uniforms & Accessories D - RCCI 12-031 Uniforms and Accessories Analysis: Financial Impact: Alternatives: Not to award. Recommendation: Award the items to the recommended vendor made by the user departments in the attached recommendation letters. Funds are Available in the Following Accounts: Cover Memo Item # 1 REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 1 Attachment number 1 \nPage 1 Item # 1 Attachment number 1 \nPage 2 Item # 1 Attachment number 1 \nPage 3 Item # 1 Attachment number 1 \nPage 4 Item # 1 Attachment number 1 \nPage 5 Item # 1 Attachment number 1 \nPage 6 Item # 1 Attachment number 1 \nPage 7 Item # 1 Attachment number 1 \nPage 8 Item # 1 Attachment number 1 \nPage 9 Item # 1 Attachment number 1 \nPage 10 Item # 1 Attachment number 1 \nPage 11 Item # 1 Attachment number 1 \nPage 12 Item # 1 Attachment number 1 \nPage 13 Item # 1 Attachment number 1 \nPage 14 Item # 1 Attachment number 2 \nPage 1 Item # 1 Attachment number 2 \nPage 2 Item # 1 Attachment number 2 \nPage 3 Item # 1 Attachment number 2 \nPage 4 Item # 1 Attachment number 2 \nPage 5 Item # 1 Attachment number 2 \nPage 6 Item # 1 Attachment number 3 \nPage 1 Item # 1 Attachment number 3 \nPage 2 Item # 1 Attachment number 3 \nPage 3 Item # 1 Attachment number 3 \nPage 4 Item # 1 Attachment number 3 \nPage 5 Item # 1 Attachment number 4 \nPage 1 Item # 1 Attachment number 4 \nPage 2 Item # 1 Attachment number 4 \nPage 3 Item # 1 Attachment number 4 \nPage 4 Item # 1 Attachment number 4 \nPage 5 Item # 1 Attachment number 4 \nPage 6 Item # 1 Attachment number 4 \nPage 7 Item # 1  Administrative Services Committee Meeting 12/12/2011 1:05 PM Approve 5% Tobacco Surcharge for Augusta, GA’s health insurance participants effective March 1, 2012. Department: Human Resources Caption: Motion to approve assessing a 5% surcharge to all tobacco users currently covered in the group health insurance plan that choose not to either terminate their tobacco usage or participate in a tobacco cessation program offered by Augusta, GA, effective March 1, 2012. Background: Augusta has been contemplating transitioning to a self funded health plan for all employees and retirees. In preparation for the transition, Augusta has been trying to find ways to find to reduce claims by promoting healthy lifestyles for all employees. Analysis: Recent research by the department of labor as well as other top research programs has shown that smokers on average account for an additional $2,354 - $3,400 per year in health care cost. It is estimated based on additional research studies that 10%-20% of public service employees are tobacco users. Potentially the additional health care costs attributed to tobacco users cost Augusta GA’s health plan between $950,000-$1,300,000 per year. Augusta offers free smoking cessation classes to employees and retirees and has smoking cessation products covered under the prescription drug program. Employees have been and will be offered assistance in becoming tobacco free. If an employee or dependent is enrolled in a program and remains compliant with the cessation program, they will not be charged the tobacco premium. We would ask each enrolled employee to sign a tobacco acknowledgement affidavit on behalf of themselves and any dependents enrolled in the health plan. Financial Impact: Alternatives: Do not approve 5% Tobacco Surcharge for Augusta, GA’s health insurance participants effective March 1, 2012. Cover Memo Recommendation: Approve 5% Tobacco Surcharge for Augusta, GA’s health Item # 2  insurance participants effective March 1, 2012. Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 2  Attachment number 1 \nPage 1 Brought to you by the insurance specialists at Wells Fargo Insurance Services USA, Inc.. The Cost of Smoking to the Employer In recent years, many companies have • Absenteeism: figure out how much smokers are costing gone smoke-free for various reasons, o Smokers are absent 50 you. namely to eliminate secondhand smoke percent more than 1 dangers to nonsmoking employees and to nonsmokers. 1. Multiply your total number of reduce health care costs. Many • Maintenance costs and air cooling, employees by the estimated companies are even going as far as not heating and ventilation expenses percentage of employees who hiring smokers at all. This may seem • Replacing employees who are sick smoke, taken from a Substance extreme since a potential employee who from smoking-related illnesses or Abuse and Mental Health Services 2 smokes may be just as qualified as a suffer premature deaths due to Administration study . If you are nonsmoking potential employee, yet the smoking-related diseases unsure of that percentage, use the costs speak for themselves. For example, • Accidents and fires percentage of employees in your life and health insurance premiums are • Property damage (plus insurance industry below. This calculation will much higher for a smoking employee than expenses) provide an estimate of the total a non-smoker, and certain other types of • Smoke pollution (increases number of smokers that work for your insurance tend to be higher when there company. are smokers on the payroll. Plus, employers incur significant costs for health care and lost productivity for each Employers tend to incur significant costs for health care and employee who smokes. lost productivity for each employee who smokes. Expenses Insurance expenses are only the tip of the iceberg. Williams Mitchell College of Law cleaning costs) Food Preparation/Serving: 44.7% finds that tobacco-related health care and • Increased early retirement similar workplace costs are to blame for Construction: 42.9% • Increased legal liability: driving up health care costs. This is the o Nonsmokers have won Transportation: 39.3% case because chronic diseases account workers’ compensation Production: 36.9% for two-thirds of all deaths in the United settlements, unemployment States and smoking is the leading cause Maintenance/Repair: 36.9% and disability benefits for of most of these diseases. Beyond health claims based on their Farming, Fishing, Forestry: 31.6% care costs and insurance claims, smoking exposure to secondhand Retail and Sales: 30.3% also affects many other aspects of an smoke. employer’s bottom line. Office/Administrative Support: 28.0% • Lost productivity: Your Costs Health Care: 22.7% o Smokers who take four 10- Want to determine how much smokers Management: 22.6% minute smoke breaks per are adding to your budget? The U.S. Financial: 18.3% day work one month less Centers for Disease Control and per year than nonsmokers Legal: 18.1% Prevention estimates that employers pay who do not need to take $3,400 per adult smoker on their payroll Mathematical/Computer Science: 17.9% these breaks. each year. Use the following formula to Engineering/Architecture: 17.0% Item # 2  Attachment number 1 \nPage 2 Community/Social Service: 16.9% Life/Physical/Social Science: 15.4% Education: 12.3% 2. Multiply the previous calculation by $3,400 cost per smoker. The output of this calculation is an estimate of the amount of money you spent each year because of smoking employees. Total # of Employees: _______ x Estimated % of Smoking Employees:_______ = Total # of Smokers: _______ x Costs per Smoker: $3,400 = Estimated Cost of Smoking per Year:_______ Solutions To combat the high cost of employing smokers, start a smoking cessation program or simply do not hire people that smoke, period. There are many short- and long-term benefits to these solutions including: • Increased workflow and productivity • Insurance savings • Savings on maintenance and upkeep costs • Extremely reduced health care and life insurance costs • Reduced absenteeism Sources 1 www.smokingcessationcentral.com 2 National Survey on Drug Use and Health, 2009, (http://oas.samhsa.gov/2k9/170/170Occu pationHTML.pdf) Item # 2 This Benefits Insights is not intended to be exhaustive nor should any discussion or opinions be construed as professional advice. © 2007-2009, 2011 Zywave, Inc. All rights reserved.  Administrative Services Committee Meeting 12/12/2011 1:05 PM Audit Department: Clerk of Commission Caption: Task the Administrator with utilizing the procurement process to solicit the services of an outside forensic auditing firm to perform an audit of the city's finances and contractual obligations. The audit must include but not be limited to the following: (a) TEE Center Parking Garage/Land Acquisition/Associated Leases/Financing, (b) Utility Department Water Rates for Golf Courses/Other Special Agreements, (c) Environmental Services Division, (d) Augusta Transit Department Privatization, (e) Augusta Municipal Golf Course Privatization, (f) Retroactive Pay Increases, (g) SPLOST Fund Projects, and (h) Land Bank. (Requested by Commissioner Lockett) Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Cover Memo Item # 3  Administrative Services Committee Meeting 12/12/2011 1:05 PM NEH Planning Grant for Heritage Trail for Laney Walker/Bethlehem Department: Housing and Community Development Caption: Discuss approval of application for a National Endowment for the Humanities (NEH) Planning Grant, which ranges from $40,000 -- $75,000, to assist in the planning of a Heritage Trail for Laney Walker/Bethlehem (and contiguous neighborhoods in Augusta’s urban core). Background: In June 2010, a taxable revenue bond, secured by a hotel/motel fee, was issued for a broad set of purposes variously focused on the revitalization of the Laney Walker and Bethlehem neighborhoods and the celebration of its rich, historic legacy. Since then, much of the initial work for Laney Walker/Bethlehem has focused on master planning, creating design guidelines in keeping with historic patterns, land acquisition, blight removal, early catalytic development, and sales. Parallel to this work, efforts have also been made by the AHCDD to ensure that the long-time historic feel and character of these two neighborhoods would be preserved and nurtured – especially through the development of a heritage Trail, linking Laney Walker/Bethlehem to the areas of Harrisburg, Springfield, and Olde Town. Such a Heritage Trail would serve the dual purpose of educating/promoting a prominent historical legacy and functioning as an economic driver for heritage tourism. Beginning in 2011, a broad group of stakeholders from throughout the Augusta community was convened, meeting quarterly to assist with the development of a scope of work for this Heritage Trail. The stakeholders included: Chester A. Wheeler (Director, AHCDD), Jesse Wiles (President, APD), Dr. Joe Cannon (Assoc. Dean, GHSU), Christine Miller-Betts (Ex. Dir. Laney Museum), Corey Rogers (Historian, Laney Museum), Erick Montgomery (Ex. Dir., Historic Augusta), Dr. Lee Ann Caldwell (Dir., Center for the Study of Georgia History), Anne Floyd (CSRA Regional Commission), Rebecca Rogers (Marketing Dir., Augusta Canal Authority), Paul DeCamp (Planning Director, ARC Planning Commission), Jennifer Bowen (VP Product Development, CVB), and Betty Beard (former ARC Commissioner). By the end of 2011, this group of stakeholders had completed its outline for a Cover Memo Heritage Trail scope of work. Next steps entail detailed planning, Item # 4  specifically: 1) the development of the program for this Heritage Trail, ie, its content and 2) the development of a physical layout for the trail, including determination of pathways, trail design, interpretive signage and iconography, and innovative use of technologies to communicate this rich story. Analysis: While the development of the actual trail calls for design, landscaping, and engineering expertise, there still remains the challenge of assembling a wide range of materials relating to the history of the area into a coherent, compelling story that will attract a wide audience not just locally and regionally but nationally and abroad. The NEH Planning grant is specifically designed to assist in such an effort and serves as an important prerequisite for applying for a much more substantial NEH Implementation grant down the road (approximately $400,000), which would significantly subsidy the cost of constructing the Heritage Trail. Financial Impact: The NEH Planning Grant, which ranges from approximately $40,000 -- $75,000, is intended to provide roughly 50% of the overall cost for planning. The balance of funding for this stage of the Heritage Trail would be provided by the pay-as-you-go portion of the bond financing for the revitalization of Laney Walker/Bethlehem. In a nutshell, if the overall budget for planning this Heritage Trail is projected to be $100,000, roughly 50% of the budget would be underwritten by an NEH Planning Grant. Moreover, a successful application would then set up future application for an NEH Implementation Grant, with substantive federal funds available to construct the Trail. Alternatives: Were the Augusta Housing and Community Development Department not to pursue this NEH Planning Grant (or if the grant proposal is not successful), then the full cost of planning would be borne through pay-as-you-go bond financing – which was the initial direction pursued by AHCDD. Recommendation: It is recommended that AHCDD be granted approval to apply for an NEH Planning Grant for the initial planning and design of the Laney Walker/Bethlehem Heritage Trail. Supplemental funds will be provided through the pay-as-you-go portion of the bond financing for the revitalization of Laney Walker/Bethlehem. Funds are Available AHCDD will utilize whatever funds may be provided by the NEH in the Following Planning Grant to perform initial planning and design for the Accounts: Heritage Trail, to be supplemented by equivalent funds in the pay- as-you-go portion of the bond financing for the revitalization of Laney Walker/Bethlehem.Funds available in 297-07-5220-52- 11119 Cover Memo Item # 4 REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 4  Administrative Services Committee Meeting 12/12/2011 1:05 PM Solicitation of Opinion from Attorney General Department: Clerk of Commission Caption: Task the General Counsel with soliciting an opinion from the Attorney General as it relates to the meaning of the term "ordinary business" as used in House Bill 805 (Charter). This opinion must include examples of business that can be approved with six Commission-Council votes and what business requires two-thirds of the Commission-Council for approval. An opinion needs to be made as to the legality of the Personnel Policy and Procedures Manual since its passage was treated as ordinary business when much of the content deals with restructuring the government. All restructuring/reorganization contemplated will be placed on hold pending an AG opinion. The General Counsel will consult with the Chair of the Administrative Services Committee and will present proposed brief to the Commission prior to submission to the AG. (Requested by Commissioner Lockett) Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Cover Memo Item # 5  Administrative Services Committee Meeting 12/12/2011 1:05 PM Solutions to Pay Disparities among SES Employees Department: Clerk of Commission Caption: Discussion by the Administrator regarding solutions to pay disparities created among Senior Executive Service Employees resulting from the 43 pay increases effective May 2, 2011. Additional information should be provided to demonstrate that policies have been implemented to prevent such a recurrence. (Requested by Commissioner Lockett) Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Cover Memo Item # 6