Tom Hickner Bay County Executive October 6, 2011

1. Shared Services ~ Best Practices Tom Hickner Bay County Executive October 6, 2011

2. Current Examples of Shared Services & Community Collaboration in Bay County, Michigan

3. Current Examples of Shared Services & Community Collaboration • Animal Control (One County-Wide System vs. Separate City System) • Bay Area Storm Water Authority • Bay Area Transportation Planning • Bay County Employees’ Support of United Way • Bay County G.I.S. System • Bay County Jail: Rental of Beds for Federal Inmates • Bay County Juvenile Detention Facility Rental of Beds to Other MI Counties

4. Current Examples of Shared Services & Community Collaboration - Continued • Bay County Pension System (Various County Agencies under One System) • Bay County Water & Sewer System (County-Township Partnerships) • Bay Future - Economic Development • City-County-Township Clerks on Elections • City-County-Township Treasurers on Tax Collections • City-Township Assessors and Bay County Equalization Department • Community Corrections Advisory Committee

5. Current Examples of Shared Services & Community Collaboration - Continued • Cooperation with BAISD – Sterilization of Animals as Educational Program • County Health Department Inspections - Nuisance Ordinance • County Maintenance of City Owned Softball Fields • County Recreation Programs with Local Leagues & Organizations, Including Basketball, Golf, Hockey, Softball, Volleyball • County-Wide 911-Central Dispatch System, Including 911 Technical Committee

6. Current Examples of Shared Services & Community Collaboration - Continued • County-Wide Library System • County-Wide Gypsy Moth and Emerald Ash Borer Control • County-Wide Mosquito Control • Drain Commissioner-Township Officials on County and Local Drains • Emergency Management • Farmland Preservation • Homeland Security - Police/Fire/EMS • Homeland Security - Region 3

7. Current Examples of Shared Services & Community Collaboration - Continued • Housing Rehabilitation (Contract with Bay Area Housing Corporation) • Human Services Collaborative Council • MSU Extension Services • Noise Ordinance • Northern Bay Ambulance Services • Northern Bay Fire Services • Safe Children/Safe Families • Sheriff Road Patrol Contracts with Townships • Township Services (Building Inspections, Code Enforcement, Etc.)

8. Governor’s Shared Services Program • Economic Vitality Incentive Program • Ties to Statutory Revenue Sharing • For Cities and Townships only • 1/3 for meeting each requirement • Accountability and Transparency (Citizens Guide, Dashboard) • Consolidation of Services • Employee Compensation Plan

9. Bay County’s Shared Services Dashboard

13. Purchasing • Current Status: Meeting was held with local municipalities from across the Great Lakes Bay Region to discuss maximizing our purchasing volume/power as a whole to provide better discounts and cost savings to each unit. Bay County will continue efforts to make the co-op grow. • Next Move: Bay County and OfficeMax are communicating with the municipalities to confirm commitments for the America Saves Program. • Next Move: The RFQ and RFP process will be explored to determine if duplicate efforts can be combined and/or shared.

14. PurchasingBay County’s Experience • Purchasing agents are unable to act alone. Guidance from Administration and Board is necessary due to varying contracts and policies • Example: Bay City and Bay County discussed sharing purchasing services. • City has a local purchasing preference policy where the County does not. • Issue: What set of policies outweigh the others • Bay County started looking into a cooperative to combine office supply purchase volume and piggy-back off the Oakland County Contract

15. Shared ServicesBay County’s View • Success will not be determined by a legislative mandate from Lansing or Washington • Local conditions drive success or failure • Politics and economics determine the outcome • Sharing services might not always mean fiscal savings, change is not always the best option in this case

16. Best Practices in Local Government:The Bay County Experience

17. Best Practices - Fiscal • Budget Forecasts • 3 fiscal years out • Balanced Budgets • Balanced Budget each year with no tax increases since 1993 • Fund Balance • The General Fund Fund Balance has increased $7,974,026 from 1993 – 2011 • Fund Balance Reserves • Ensure reserves equal at least 15% of annual revenues • If reserves are budgeted, use only for one-time, non-reoccuring items

18. Best Practices - Fiscal • Budget Reductions • Established targets for every co-employer • They are asked to identify where their budgets can be reduced. • Fee Revenue • To the extent possible, programs should be financed with at least half of program costs paid from fees. • Example: Public Health Department RestaurantInspections

19. Best Practices - Fiscal • Tax Delinquent Fund • Only use interest earnings. Maintain a fund balance sufficient to self-finance delinquent tax payments to local governments • Retiree Health Coverage • For new hires, require 20 years of service for 100% paid health insurance with a sliding scale for fewer years of service • Retirement Benefits • Current Negotiations: For new employees, a reduced defined benefit multiplier from 2.25 to 1.6

20. Best Practices - Fiscal • Pension System • The Bay County Pension System has been overfunded since 1988. • As of 12-31-2010, the pension system was funded at 111.60% • Retiree Health Insurance • Established a VEBA for future costs • Membership in MMRMA • A self-insured property & casualty pool serving cities, counties & townships offering risk control services, risk-avoidance grants and return of assets to its members

21. Best Practices - HR • Labor Contracts • Follow the contractual language • Health Insurance • Retained consultant to assist in setting up self-insured system with appropriate deductible levels • Prescription Drugs • Encourage use of generics and a 4-tiered co-pay system • Wellness Program • Established an ongoing effort to encourage all employees to improve their lifestyles and health

22. Best Practices - HR • Training • Establish an ongoing training program for all employees on ADA compliance, anti-discrimination laws and other pertinent topics • Encouraged and assisted Saginaw Valley State University in establishing a Public Managers Certification Program • Contract Negotiations • Current labor contracts expected to be negotiated with no COLA from 2010 - 2013

23. Best Practices - Administrative • Purchasing • Received national recognition for policy that all professional services will be selected using Quality Based Section Process (QBS) • Technology – Cost Savings • Invest in proven technology that produces clear cost savings. • Example: Electronic Ticketing • Technology – Storage • Purchased Cherrylan Imaging Software to reduce filing of hard copies

24. Best Practices - Administrative • Incoming Mail System • Significantly reduced mailroom operations by designating every office as a suite with a zip + 4 address • In House Printing • Reduced print shop operations significantly by investing in high speed copy machines with many printing options for each department • Risograph • Telephone System • Completed bid that ultimately saved in excess of $30,000 annually

25. Best Practices - Administrative • Office Products • Eliminated county operated office products “store” and instead contracted for a next day delivery system

26. Best Practices - Administrative • Emergency Preparedness • Ongoing efforts to ensure county is prepared for any catastrophic event, including offsite computer back up and alternative work space • Infrastructure • Annual funding of ongoing building maintenance • Vehicle Replacement • Annual funding for the replacement of Sheriff Road Patrol vehicles

27. Best Practices - Administrative • Communication • Distribution of a monthly electronic newsletter using Constant Contact Software sent to constituents, staff and interested community residents • Bay Alerts • Electronic emergency notification system • Annual Bay County Auction • Bay County receives reimbursement for unusable items sold, such as old sheriff vehicles

28. Thank You! Questions?