CORE SERVICES WORKING GROUP

Presentation to Town Board March 1, 2012 Chief of Staff Brian Beedenbender

Core Services Working Group

Brian Beedenbender, Supervisors Office Elizabeth Kennedy, District 1 Lori Murphy, District 2 George Lessler, District 3 Liz Krolik-Alexander, District 4 Anthony Powell, District 5 Lori Anne DeIulio Casdia, District 6 Working/Support Team Inez Birbiglia Laura Rath Debbie Tinnirello Stacey Epifane Sikes

Working Group Charge

First, the Working Group will conduct an analysis of what our core functions are and what our discretionary functions are. Second, out of those discretionary functions, Im asking the Group toprovide us with a set of policy choices regarding which functions should remain, which we should end, and which ones would be appropriate for public/private partnerships. -Supervisor Mark Lesko, 2012 State of the Town

Why is this important?

Mortgage taxes have dropped 73% since 2004, when they were at a high of $37.6 million. For the past three years they have been budgeted at about $10 million. Pension costs are up 42% since 2009. Health insurance costs are up 38% since 2006 and 24% since 2008. Early information from NYS projects a 10.8% increase in health insurance premiums for 2013, which would result in $1.3 million in increased costs in the General Fund alone.

There are no simple and easy solutions left

2011 Tax Bill for Town of Brookhaven Residents
Special Districts 11.8%

Town of Brookhaven 6.2%

Suffolk County 15.2% School Districts 66.7%

*Special Districts include: fire, ambulance, erosion control, dock, library, street lighting, refuse, water, sewer, park, etc.

The Town has cut spending 26.5% in the General Fund since 2009. The Town cannot continue to rely on shrinking surplus. Without corrective action, the Town will violate the fund balance policy in 2013 by $6 - $10 million dollars. The Town could be close to bankrupt in 2014 and broke in 2015. There could be a negative effect on our credit rating, exacerbating our financial challenges.

$6 - $10 million represents

A 29-48% property tax increase - a violation of the Town and State property tax cap law. A loss of 87-145 employees in the General Fund alone. Even if the Board was willing to increase taxes 2%, it would only provide approximately $410,000 in increased revenue.

Mandated Services
NYS Town Law 2 defines a Town as: A town is a municipal corporation comprising the inhabitants within its boundaries, and formed for the purpose of exercising such powers and discharging such duties of local government and administration of public affairs as have been, or, may be conferred or imposed upon it by law.

Mandated Services
The remaining services that are mandated by NYS are found in other sections of law. Some examples are: Real Property Tax Law Highway Law Agricultural & Markets Law Public Health Law Executive Law State Arts & Cultural Affairs Law Environmental Conservation Law Domestic Relations Law General Municipal Law

What are we mandated to do?

Surprisingly, the answer is not much. The Town is responsible for certain functions relating to: The Assessor The Tax Receiver Highways Land Use The Town Clerk Animal Control

What are we mandated to do?

Assessor Towns must have an Assessor and a Board of Assessment Review. By law the Assessor gets a six-year term. Tax Receiver Can be elected or appointed. An appointed Assessor can also hold the position of Tax Receiver and a Town Clerk may act as the Tax Receiver in a town of the first class or above. While the law requires a Tax Receiver, it does not mandate the level of service. Some towns on Long Island, like North Hempstead, utilize a third-party (lockbox).

What are we mandated to do?

Highways All towns must have a Superintendent of Highways. Can be elected or appointed. Once a town accepts the dedication of a road within its boundaries, it must maintain it. This includes paving, plowing, and streetlights, as well as traffic control devices.

What are we mandated to do?

Land Use By definition, a town has authority over land use and zoning for unincorporated areas. Towns must have a Planning Board and a Board of Zoning Appeals. A town must appoint a building inspector/code enforcement official to enforce the NYS Building and Fire Code. The level of service is not set by State law, but determined by the Town Board.

What are we mandated to do?

Town Clerk Must be elected under NYS law. Various NYS laws mandate record keeping, dog licensing, fishing licensing, marriage licensing, birth and death records, and oversight of Bingo games.

What are we mandated to do?

Animal Control Agricultural & Markets Law requires that a town have a dog control officer. The law specifically allows a town to contract with other municipalities to perform that function. The law requires that a town provide care for unidentified abandoned dogs for no less than three days and for identified dogs for no less than seven days. The law does not require that a town pick up cats.

What is discretionary?
Senior Services Youth Services All Park Services Waste Management Economic Development Information Technology Land Acquisition/Mgmt Housing Services Airport Ecology Site Mobility Services Veterans Services Womens Services Historian Everything else

How can we perform our core services better?

Policy Option 1: Create a Department of Public Works to improve efficiency and consistency and consolidate the Building Department into Planning and Fire Prevention into Law.

Public Works Department

Department led by a Commissioner of Public Works. The Commissioner may also be the Town Engineer, which, under NYS Law, comes with a two-year term after appointment by the Town Board. This would require the Commissioner to be a licensed P.E. in New York.

Public Works Department

Buildings and Grounds Buildings Maintenance & Custodial Management Project Management (Engineering & Capital Projects) Space and Land Management Traffic Safety and Streetlighting Maintenance of traffic control devices, traffic improvements, repair of streetlights (transferring sign fabrication from Highway should be considered) Fleet Maintenance (excluding Waste and Highway) Oversee fuel management, maintenance of storage tanks Oversee the removal, impound, and redemption of vehicles Specialized Community Services Town Airport, Erosion Control, Dock Districts, and Ambulance, Water, and Sewer Districts

Transfer of Functions into Public Works

Traffic Safety, Streetlighting, Erosion Control, Dock Districts, Land Management, and Special Districts would be transferred from Planning. Abandoned Vehicles, the Airport, and Ambulance Districts would be transferred from Public Safety. Fleet Maintenance would be transferred from Waste Management. Buildings and Grounds would be transferred from Parks.

Transfer of Building and Fire Prevention

Building would move into Planning.
The Chief Building Inspector would oversee day-to-day operations and report to a Deputy Commissioner. Building Inspectors that currently perform code enforcement duties could move to the Law Department to further coordinate enforcement activity.

Fire Prevention would move into Law.

The Chief Fire Marshal would oversee day-to-day operations and report to a Deputy Town Attorney. Would increase consistency of enforcement and compliance between Fire Marshals and the Law Department.

What can we save?

Department Commissioner Deputy Commissioner Executive Assistant Secretary Total PELM - present format PELM - w/ DPW

1 1

2 2

1 1

1 1

5 5

Public Safety - present format Public Safety - w/ DPW

1 1

1 1

1 1

1 0

4 3

Bldg. & Fire - present format Bldg. & Fire - w/ DPW

1 0

0 0

1 0

1 0

3 0

The reduction of two exempt management positions would save approximately $180,000 in salaries and benefits. There could be additional savings in non-management positions through attrition and efficiencies.

Waste Mngmt - present format Waste Mngmt - present format

1 1

2 2

1 1

1 1

5 5

Parks - present format Parks w/ DPW

1 1

2 1

1 1

1 1

5 4

DPW - present format DPW - under new model

0 1

0 1

0 1

0 0

0 3

Total - present format Total w/ DPW

5 5

7 7

5 5

5 3

22 20

What public-private partnerships should be explored with our discretionary services?

Policy Option 2: Partner with a professional company to run the Amphitheater.

Amphitheater Costs
Since 2007, the Town has lost over $2.5 million at the Amphitheater.
Amphitheater Expenditures & Revenue: 2007-2011
Revenue $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $2007 Total 2008 Total 2009 Total 2010 Total 2011 Total Expenditures Linear (Revenue)

What public-private partnerships should be explored with our discretionary services?

Policy Option 3: Explore public-private partnerships at our marinas, replicating the Davis Park model.

Alternative Marina Models

Model 1- Private operator pays the Town to take over operations Mount Sinai Marina, Cedar Beach parking, transient docking, boat launch, fishing pier. Port Jefferson Marina and Stony Brook boat ramp. Blue Point Marina, Corey (South) Marina, Sandspit Marina, Forge River Marina, Maple Avenue Dock, Pine Neck Dock. RFP would allow responses for private receipt of revenue from boat slips or continued Town receipt of revenue from boat slips. Private operator would staff and manage the day-to-day operations. Operator could propose additional services at the sites.

Alternative Marina Models

Model 2- Town pays private vendor to manage all marinas, docks, pools (except Mastic), and beaches
Beaches and Pools without lifeguards salary Marinas and Docks salary Total Salary Retirement, MTA Payroll Tax, and Social Security Unemployment for seasonal workers- 20092011 annual average Minimum Total Potential Savings (Benefits plus Unemployment) $234,000 $778,000 $1,012,000 $197,340 $272,338 $469,678

What public-private partnerships should be explored with our discretionary services?

Policy Option 4: Re-invent our Jitney program by partnering with private taxi companies.

Brookhaven Jitney Program

Provides door-to-door service to Brookhaven residents 60 and over and disabled residents 18 and over, but does not provide assistance. Transport to and from shopping, medical appointments, government offices, and senior centers in the Town. Service provided from 8:00 a.m.-2:30 p.m. Monday through Friday, except for Town holidays and inclement weather. When you include administration, fuel, maintenance, payroll, retirement contributions, and all the costs of the program, the Town spends $1.1 million dollars a year on Jitney service. Jitney riders pay $3 per roundtrip transport. The average cost of a Jitney trip is $59.50.

Brookhaven Jitney Program

2010
Round Trip Rides Avg. Round Trip Rides per Day Avg. # Drivers Per Day Avg. Round Trips/Driver/Day All Jitney Rides Excluding Tuesday Shopping Days 16,614 89 13.5 5 7,534 39.5 12.8 3.09 Tuesdays Only

9,080 178 17 10.5

Project Independence
The Town of North Hempstead saved $900,000 a year by transitioning to Project Independence. To provide better service, they contract with four local taxi companies. Currently provides 12,500 round trips a year (Brookhaven17,000 round trips). 311 Call Center handles requests for transport and the Taxi company schedules a pick-up time. For medical trips, residents call the taxi company when they are ready to be picked up and wait no longer than 30 minutes. Health aides ride for free.

How does Project Independence work?

What do medical trips cost the resident? Residents are charged half of the Medicaid rate. In North Hempstead, that rate is approximately $5.00 a mile. Residents pay half of the fee to the driver, and the taxi company bills the Town monthly for the other half. How do shopping trips work? There is no charge for shopping trips. The Town is broken up into seven geographic areas that each have a designated shopping day. Shopping trips occur between 11:00 a.m. and 2:00 p.m. The Town pays the taxi company $30 an hour for shopping trips to designated shopping areas.

Draft of RFP
Option 1 Town-run Model General Model Respondents are asked to provide an in-zone rate for 10 zones not to exceed $7.00 and an out-of-zone rate not to exceed the Medicaid Rate for each mile ($2.62). All rides would be scheduled through 451-TOWN. Cost to resident A portion of the rate, to be determined. Shopping The Town will request a per hour cost from vendors for shopping trips on designated days. Cost to riders to be determined. Estimated savings: $250,000 plus additional revenue from auctioning buses. Option 2- Senior Card Model General Model Cab companies establish zone pricing and offer a discounted rate schedule to seniors that have a Town ID Card. Seniors would contact taxi companies directly for service. The Senior Discount Card could be expanded to include grocery stores, department stores, etc. Cost to resident Discounted rate, to be determined. Shopping The Town could keep a few jitneys for shopping days or for disabled seniors. Estimated savings: $820,000 plus additional revenue from auctioning buses.

Re-inventing the Jitney Program

RFP responses will provide the Town with answers on whether or not taxi companies can accommodate riders in wheelchairs. Service hours would be expanded and service could be provided to seniors on the weekends with option 1 or option 2.

What public-private partnerships should be explored with our discretionary services?

Possible Option: Explore a public-private partnership at the Animal Shelter.

Animal Shelter
The Town of Brookhaven Animal Shelter houses approximately 174 dogs and 40 cats. Direct costs at the shelter, including employee benefits, Workers Compensation, materials, and utilities total $2.1 million. The Working Group visited two privatized shelters, Southampton and Southold, to review their models.
Southampton Shelter run by Foundation with municipal animal control officers. Southold- Privatized shelter and animal control officers. Both rely heavily on outside fundraising and donations. Both Towns partially subsidize the operations and capital improvements of the shelters.

Animal Shelter
How is Brookhaven different?
Significantly more dogs- Southold has fewer than 30 pens and Southampton has approximately 60. Older building(s) and infrastructure. Fewer community groups dealing with feral cats.

What are the Towns options?

Draft an RFP/RFQ to determine if there is a private organization with the financial and operational capacity to manage the Shelter.

What public-private partnerships should be explored with our discretionary services?

Possible Option: Explore a public-private partnership at the Airport.

Airport
2012 operational costs total approximately $500,000 with fringe benefits. A net loss of $303,895 is anticipated in 2012. Landing fee- $7.00; Tie-Down Fee - $85.00 monthly. 64 Town tie downs in total, 27 currently leased. Three Fixed-Based Operators with active aviation activities. The Town recently released an RFP for the dinette at the airport. There was one respondent who withdrew. 100 acres available for development. The Town could release an RFP seeking a manager to operate the airport.

Further Research
Shellfish and Wetlands Shellfish costs - $240,365; Wetlands costs - $193,067. Opportunities to partner with private organizations/ municipalities to significantly reduce costs. Holtsville Ecology Center Direct costs, including employee benefits, will exceed $1.2 million in 2012. North Hempstead Tax Receiver Model- Third-party (lockbox) collects taxes and processes most paperwork. 2012 Budget includes $371,767 in salary and benefits for Seasonal Tax Cashiers (not including health insurance). From 2009-2011, the Town spent an annual average of $119,407 on unemployment costs for Seasonal Tax Cashiers. Duplication of services between governments Town-wide leases Professional Service Requisitions

Potential Savings
Potential Savings
DPW Amphitheater Marinas Jitney (Option 1) Jitney (Option 2) Total (Jitney Op. 1) Total (Jitney Op. 2) $180,000 TBD $469,000 $250,000 $820,000 $899,000 $1,469,000

Estimated Costs of Further Research

Animal Shelter Airport Shellfish Wetlands Ecology Site Tax Receiver TOTAL $2,100,000 $303,895 $240,365 $193,067 $1,200,000 $491,174 $4,335,434