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National Association of Counties * Washington, D.C.      Vol. 33, No. 3 * February 12, 2001

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Hats off to ...
Fiscal Management


Contract Monitoring Program
Maricopa County, Ariz.
eated in the spring of 1997 in response to concerns with monitoring contract performance. The concerns were prompted by the highly de-centralized nature of the county government and the relatively high turnover of county employees.

The program’s two primary objectives are to determine if users and vendors are adhering to contract provisions and to assess whether the contract itself adequately serves the needs of the users and provides fair and equitable treatment to vendors.

Two full-time employees were brought into the Maricopa County Materials Management Department to administer the program. Each would spend three-quarters of their time on contract monitoring and the remainder on contract administration. Program start-up costs were minimal and continuing operating costs consisted of the equivalent of two full-time employees.

After nearly three years of operations, the proportion of contracts found to be in compliance by contract monitors has risen significantly. Since the beginning of the program, approximately $18,500 in overcharges was recovered. In addition, nearly $26,000 in unpaid debts to vendors by the county was discovered and reconciled.

Property Tax Assistance Payment Plans
Richland County, S.C.
s citizens, Richland County developed two property tax payment assistance programs. The prepayment plan allows citizens, regardless of age, income or other condition, to pay their expected property taxes to the county each month in advance. Advance payment avoids penalties and late fees and accrues interest for greater property tax relief.

The part-payment plan allows citizens to pay their property tax bills to the county each month after the tax bills have been received. Because payment is not made in full by the due date, penalties and late fee charges are added to the amount paid each month. Both of these payment plans assist residents burdened by property taxes to pay their taxes and remain in their homes.

For the prepayment plan, clients may begin making monthly payments at any time, which allows the taxpayer to be completely paid up when the tax bill is sent. They are then allowed to begin making payments for the next property tax bill. For the part-payment plan, which involves paying tax bills in monthly installments after the bill has been issued, the client must complete payment of the tax bill by June, in accordance with the close of the county’s fiscal year.

Homeowners are not the only property owners to take advantage of these programs. Businesses struggling with financial difficulties or with a downturn in the economy have also been helped: 75 in 1999, 85 percent of which are in the part-payment program.

Richland County’s costs for software development was $19,000. The labor costs involved one person in the county who is responsible for the tax payment assistance programs.

Equipment Selection Procedure Based on Life-Cycle Costing
Hamilton County, Ohio
To combat the high cost of purchasing and operating a building’s heating and elevator systems, Hamilton County has adopted a process that allows it to select equipment with the lowest cost of ownership. Dubbed Life-Cycle Costing (LCC), the program is intended to modify the method by which consultants prepare construction documents and contractors bid on county projects.

In the new format, the engineer or consultant is required to prepare a more informative bid document for the contractors to use during the purchasing/bidding process. The new bid form includes a list of all the factors that need to be addressed in order to determine the lowest life-cycle cost. Some of the factors include equipment, warranty and service contracts, and energy efficiency.

The costs for the program include 1-2 extra days (equivalent to staff time) or about $500–$1,500, depending on the number of pieces. The success of this program was evident when the county was able to save $38,500 on the purchase of a chiller.

(Hats off to ... was compiled by Christina Crayton, research assistant, and features 2000 NACo Achievement Award winners. For more information, call (202) 942-4285.)

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