MONTEREY COUNTY BOARD OF SUPERVISORS

							                   MONTEREY COUNTY BOARD OF SUPERVISORS

MEETING:             February 1, 2011               AGENDA NO.:
SUBJECT:
                     It is recommended that the Board of Supervisors:
                     a) Receive and accept the County of Monterey Cost Savings
                         Committee report and:
                     b) Direct Budget staff in the Administrative Office to explore the
                         feasibility of implementing a Budget Savings Incentive Plan.

DEPARTMENT:           County of Monterey Cost Savings Committee

RECOMMENDATION:

 It is recommended that the Board of Supervisors receive and accept the County of Monterey
Cost Savings Committee report and it is also recommended that the Board of Supervisors direct
Budget in the Administrative Office staff to explore the feasibility of implementing a Budget
Savings Incentive Plan and to report back to the Board of Supervisors with their findings by the
end of the 2011 fiscal year.

SUMMARY/DISCUSSION:

This presentation complies with item # 2 on the June 9, 2010 Budget Hearing referral list
requesting that the Cost Savings Committee make quarterly reports on cost savings ideas and
plans for the implementation of those ideas to the Board of Supervisors.

The purpose of the Cost Savings Committee is to explore any and all potential cost saving
measures – other than those brought about through salary reductions. The committee first met on
September 22, 2003 and has met periodically ever since. The committee is composed of
Department Heads, the County Contracts Purchasing Officer, Department of Public Works and a
representative from SEIU.

The Cost Savings Committee was created to discover cost savings through exploring alternative
and more efficient ways of doing business.

The Cost Savings Committee has over the years reviewed and discussed countless countywide
practices and a host of recommendations have been presented to Department Heads and the
Board of Supervisors during the last 7 years. A comprehensive listing of these ideas and
recommendations are included in Exhibit A.

Significant cost savings have been achieved through the efforts of the County Contracts
Purchasing Officer and the County Facilities Manager through the implementation of strategic
purchasing practices and through conducting energy audits that have resulted in energy savings.

The Alternative Energy and Environment Committee recently recommended to the Board of
Supervisors to direct the Resources Management Agency (RMA) to pursue a list of 18 “Early
Actions” in concert with the Cost Savings Committee to reduce greenhouse emissions. In so far
as these actions will also result in cost savings the Board of Supervisors has designated the Cost
Savings Committee to oversee the implementation of these measures with technical assistance
from the RMA. Toward that end an initial memo (Memo #1) under the letterhead of the Cost
Savings Committee has been issued to Department Heads requiring the implementation of five
initial measures (See Exhibit B).

A fundamental quandary, nevertheless, exists when savings are realized. When County
departments do realize savings in their budgets there is nothing to prevent departments from
reallocating appropriated funds into other budget line items, in effect neutralizing any savings
that may have been realized.

It is therefore recommend by the Cost Savings Committee that the Board of Supervisors direct
Budget staff in the Administrative office to explore the feasibility of implementing a Budget
Savings Incentive Plan that would allow departments to carry over a percentage of budget
savings for the following year’s budget.


OTHER AGENCY INVOLVEMENT:

The Cost Savings Committee is comprised of representatives from Child Support Services,
RMA, Department of Public Works, Information Technology and the Assessor County Clerk-
Recorder’s Office. The report has been discussed with staff of the Alternative Energy and
Environment Committee and the Budget staff of the Administrative Office.

FINANCING:

There are no costs associated with these recommendations.




                                      ______________________________
                                      STEPHEN L. VAGNINI 755-5803
                                      CHAIR COST SAVINGS COMMITTEE

                                      Attachments: Exhibit A
                                                   Exhibit B