COUNTY OF SAN MATEO
Inter-Departmental Correspondence

Health Department

DATE:

December 17, 2007

BOARD MEETING DATE:

January 8, 2008

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Charlene A. Silva, Director, Health Department
Lisa Mancini, Director, Aging and Adult Services

SUBJECT:

Public Guardian Special Needs Fund

RECOMMENDATION:

1.

Adopt a Resolution authorizing the re-appropriation of $250,000 in existing County General Fund within the Aging and Adult Service’s Adopted FY 2007-08 budget to increase the Public Guardian Special Needs Fund from $50,000 to $300,000; and

2.

Adopt a Resolution ratifying the Public Guardian Program’s emergency loans of $267,675.21 to conservatees to pay for necessary services prior to liquidation of conservatees’ assets

VISION ALIGNMENT:

Commitment: Ensure basic health and safety for all.

Goal 8: Help vulnerable people—the aged, disabled, mentally ill, at-risk youth and others—achieve a better quality of life.

Performance Measure:

Measure

FY 2006-07
Actual

FY 2007-08
Projected

Percentage of cases managed by the Public Guardian in which no fiduciary claims were filed against the Aging and Adult Services Division

100%*

99%

*Actual in FY 2006-07 exceeded target.

BACKGROUND:

The Aging and Adult Services (AAS) Public Guardian/Conservatorship Program serves frail elderly, physically disabled and mentally disabled residents who are substantially unable to provide for their own personal needs of health, food, clothing, or shelter and/or are unable to manage their financial resources or resist fraud or undue influence.

The Public Guardian, acting under the authority and direction of the Superior Court, may be appointed Conservator for the person, for the estate, or for both. The general duties of a Conservator of the Person include arranging for the person’s care and protection, deciding where a person will live, and making arrangements for health care, meals, clothing, personal care, and transportation. The general duties of a Conservator of the Estate include managing the person’s finances, marshalling and protecting assets, collecting all income due to the person, paying all just debts, making investments as appropriate, and representing or arranging representation in all legal matters.

DISCUSSION:

The Public Guardian Program manages an average of 775 conservatees annually, many of whom have little to no liquid assets but may own real property, stocks, and other items of value. There are often situations where the Public Guardian Program must arrange for the care of a client before the client’s assets can be liquidated. This is especially true today, since changes in the housing market have made it more difficult to sell a conservatee’s house on an expedited basis. A year ago, the Public Guardian Program was able to market a house and regularly received multiple offers and overbids within two months. These same houses are now taking at least six months to obtain even one bid, leaving the Public Guardian Program without liquid assets to pay for the care of the client and maintain him or her in the least restrictive setting possible.

On May 5, 1992, your Board, by Resolution No. 56074, established a revolving Special Needs Fund in the amount of $50,000 for the Public Guardian Program to allow for temporary payment of expenses such as attendant care, mortgages, insurance, and utility bills until a client’s real property could be liquidated, and the Public Guardian reimbursed out of the proceeds. Due to inflation, increases in the cost of living over the last 15 years, and current market conditions, $50,000 is no longer enough to bridge the gap between the immediate needs of conservatees and the time it now takes to liquidate their assets. For example, 24-hour in-home care can cost approximately $7,500 a month, depending on the client’s situation. Placement in a board and care facility runs $4,000 a month on average. Until a conservatee’s house can be sold, the Public Guardian must maintain the property by paying taxes, utilities, and any encumbrances on the home.

The Public Guardian is requesting that your Board approve the re-appropriation of existing County General Fund within the Aging and Adult Service’s Adopted FY 2007-08 budget to increase the Special Needs Fund by $250,000 to $300,000 to enable the Public Guardian to continue to meet the immediate needs of clients. AAS will be working with the Controller’s Office to establish an annual audit of the management of these funds.

In light of the economic conditions represented above, the Public Guardian Program requested and was granted court authority to loan funds to five conservatees in order to pay for necessary attendant care services while the conservatees’ assets are being liquidated. The Public Guardian Program is requesting your Board to ratify the loan of $267,675.21 to these conservatees on an emergency basis. Once the conservatees’ assets have been liquidated, the Public Guardian Program will be reimbursed through the proceeds.

FISCAL IMPACT:

Re-appropriating $250,000 in existing County General Fund within the Aging and Adult Service’s Adopted FY 2007-08 budget to increase the Public Guardian Special Needs Fund from $50,000 to $300,000 has no impact on the County General Fund.