COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager’s Office

DATE:

May 9, 2011

BOARD MEETING DATE:

May 24, 2011

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

David S. Boesch, County Manager

SUBJECT:

SMCSaves Program

RECOMMENDATION:

Adopt a resolution authorizing the County Manager to implement a SMCSaves Program.

BACKGROUND:

In December of 2010, as part of the budget redesign process, an eight-member workgroup that included appointed and elected department heads was established to consider ways to help departments meet the challenges of the current budget environment. The workgroup focused on the challenge of funding technology, equipment, training and other activities that could over time reduce costs and/or raise revenues for ongoing programs. To help departments fund and support these types of projects, the workgroup developed a SMCSaves Program.

The SMCSaves program was reviewed by the Finance and Operations Committee at their May 4, 2011 meeting when the Committee referred the proposal to the full Board for consideration.

DISCUSSION:

SMCSaves is a competitive one-time funding program that will be piloted for 18 months starting July 1, 2011. “Grants” will be awarded by the Board to fund County department proposals the Board believes are most like to reduce costs and/or generate new revenue. There is no fixed dollar amount of funding for the program. The Board will determine the number of proposals to fund and the total funding.

The program timeline is as follows:

•

Application instructions issued July 1, 2011

•

Proposals due September 9, 2011

•

County staff committee screens all proposals for completeness and compliance with minimum criteria including expected return on investment, likelihood that savings will be achieved, how the benefits will be measured and whether the concept can be applied in other divisions/departments

•

Finance and Operations Committee reviews all passing proposals on October 5, 2011

•

Proposals recommended for funding by the Finance and Operations Committee will be presented to the Board on November 1, 2011

•

Projects will be funded on January 1, 2012

•

Projects run for 18 months, through June 30, 2013, with quarterly group check-in meetings with the County Manager’s staff and SMCSaves workgroup.

The proposed timeline allows for a mid-term review of the SMCSaves program. If successful, the program could be incorporated into the FY 2013/14 budget. The attached SMCSaves Frequently Asked Questions sheet summarizes the program.

The SMCSaves program contributes to the Shared Vision 2025 of a Collaborative Community by encouraging County departments to develop innovative proposals that will reduce the net cost of services.

FISCAL IMPACT:

The Board of Supervisors will determine the amount of funding for the SMCSaves program in December of 2011. There is no guarantee that SMCSaves will generate significant savings or new revenue equal to or greater than the grants. However, savings potential and revenue generation are key review criteria, so it is expected that only grants with a relatively high potential to save money or generate review will be funded. Therefore, it is expected that the initial investment will be recouped at least partially during the grant period and in full shortly thereafter.

ATTACHMENTS:

Exhibit A: SMCSaves Frequently Asked Questions