Travis County Commssioners Court
March 30, 2004
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Item 27
27 is to consider and take appropriate action on staff recommendation to pay invoices for all social service contract agencies as submitted in previously approved format and amounts for the months of January and February 2004.
>> this is a result of the holdover that of the majority of the contracts that we had at the beginning of this calendar year. It is similar to the same situation you approved two weeks ago with the capital yd project.
>> -- capital idea project.
>> so the actual amounts exceed?
>> they exceed [ inaudible ].
>> our concern, because unfortunately we're at the back end of these things. We don't have a new contract signed. We're in a holdover. So part of the understanding was since we didn't really have a new contract that the most conservative thing for the county on the holdover was only to disburse a 12th. The agencies obviously need more than that. I understand that. But the truth is we're dealing with a holdover which is the old contract. Jose is saying that the real issue here is now the form that they want to submit they want to refer to the new contract rather than the holdover amount, so now we're really looking at not only more than a 12th, but a new contract. There may be a reason to do this, and if you approve this, I would suggest -- and this is your call. I would suggest that the planning and budget office approve those invoices first just to make sure that we're not spending more money than we have. That's our concern is that I’m always nervous when we don't have a current contract. Marietta advises us that we don't have to do that, but it's up to you. But if you are not holding them up to the old contract under the holdover, which this recommends that you do not, then I would suggest that the planning and budget office look at those invoices first just to protect your interests because our fear is that in a couple of months there is going to be no money left, agencies are going to be in a crisis. We won't have the money. It's not what you contemplated. That's our concern. Not an issue of law.
>> we believe that the agencies are held at the cap, the amount of the previous year's contract. I think that there's no less understanding between our department and the agencies that they cannot spend over their contract amount. They can bill us all they want for more than that, but we only pay up to the actual amount of the contract.
>> so is the permanent fix to get the contracts in place?
>> it is to get the contracts in place, but it is -- I guess long-term the goal would be to execute new contracts before the old contracts expire so that all of the terms and conditions are updated. It's the same discussion we had and certainly recap the idea of contracts, which was at the time the only county contract that I thought was impacted by this. But then as other bills came in, we found that there were -- well, actually, all of the contracts that were under the holdover were impacted by this.
>> well, the new -- are all the new contracts in place now?
>> they've been approved. I think most have been signed.
>> are these invoices coming in under the old contract?
>> as a holdover.
>> as a provision of the old contract.
>> because during the months that are stated here, they were in fact in holdover.
>> but they drafted a new contract? Is that what I heard? The new contract?
>> the contracts were in holdover during the first couple of months of -- during January of this calendar year. Well, there are actually five contracts that were in holdover through February of this calendar year. And so the bills that come in for that month were actually billed under the holdover.
>> and that's where the confusion is coming in, that the invoices that they're turning in, they're putting in a whole new contract amount under one invoice, including januar's. And what we're requesting is that the invoices and requests for payments should be divided between the holdover period, and during the holdover period, and then February on and on should be under the new request for payment under the new contract. We have a distinction in the audit trail between what is a holdover period, how much they're building with it and how much is the new contract. And that's where the confusion is coming in because the format is the whole new contract amount is under the request for payments under the new invoice.
>> the thing, though, is if in fact an agency generates legitimate bills that are in excess of the one-12th, the practical thing is to go ahead and pay them. But for me our safety net is that we do not pay over the total contract amount. And we've never done that.
>> I guess our issue is when we get audited by the outside auditors, they're looking at the payments we made and the contracts we have. And this is basically -- we're not in the contract we had at the time, which is the holdover.
>> maybe I could understand more what you mean by they're not paying under the terms of the contract.
>> of the holdover.
>> what the holdover does is it operates almost like an automatic renewal of the old contract. And so you're paying under the terms as if that old contract were continuing.
>> but they're billing -- they're not billing that way. They're billing at under the new contract, not the holdover of the old. [overlapping speakers].
>> is there a change in the form that needs to be done. Is it that they're using the new form? [one moment, please, for change in captioners] but not identified separately, we can't identify what the holdover from the new contract --
>> what jose really is saying is we need to pay bills under the contract that's in place at the time those bills are submitted. And it's the holdover. So January and February and the holdover period, those bills have to be consistent with the holdover contract. And that's the problem that we have with no new contract. And the new bills, you know, are effective under the new contract. That's -- that's the problem.
>> so is the problem that it's a -- the '03 contract, but it's '04 money, is that --
>> that shouldn't be --
>> is that the issue?
>> marietta --
>> no. The issue is that under the contract amount, they are putting in -- it's January and they are putting in the new budget which is correct. The budget amount for fy '04. But there's not a distinction. January is the holdover period which any expenditure reports attached to it should reflect the old contract terms, now the new contract terms.
>> right. And the terms we paid against are the old contract terms.
>> the request for payment, we can't tell the difference.
>> that's what we need to do is to -- [multiple voices]
>> a form that reflects a holdover period.
>> so that we can show that the bills that we are paying e in compliance with the contract that we have in place at the time.
>> I can't understand why he needs to do that, I guess, it's a matter of paperwork, right?
>> delay the payments to vendors, too, because if we have to send these back for correction, we are probably another two weeks.
>> I would think that would be something we ought to be doing ourselves. We see the months, we see when the new contract starts, right? We know the holdover period, any invoice that's come during that period, we simply indicate for the record that these invoices are under the old contract that are being held over pending approval of new. If new money, because there's got to be money budgeted for '04, so we are eating into the '04 new money for the new contract, but the first part of that new money is used for holdover period because new contracts are not in place. The paper trail ought to show that you are saying.
>> put a note on the bill then.
>> yeah. That they are paid according to the terms of the '03 holdover.
>> we would be to go -- we would be willing to have staff to sign it and say exactly what you just said.
>> but I’m saying it seems to me if what we did -- if it shows that [indiscernible]
>> that's what I had asked hhs in the conversation to put on top holdover period when there was a holdover period. There was a conversation between --
>> my staff will sign on the bills that says that is in the holdover and it should be for January and February.
>> [indiscernible]
>> January, February and -- [multiple voices] invoices are all during the holdover period.
>> yes, sure.
>> the new contract took effect -- should take effect March --
>> March, yes.
>> I mean that's --
>> we can -- you know, one thing we might consider, steve and I kind of talked in the hall last week, if the is too much to -- if the volume is too much to get current contracts every year, then maybe a better situation is to have two-year contracts where half of them come one year, half the next. Because operating without contracts is not a good idea. It isn't. If our workload is such that we cannot do these every year, we need to really kind of recognize that fact and perhaps, you know, change the workload so that that doesn't happen. Because there's a lot of -- a lot of -- all of this is kind of unfortunate work let's put it. No value added. There is work involved and we don't have a contract. We might think about that. I don't know if that's acceptable. But in the next budget period you might want to consider if there's something that we can do to make this go more smoothly.
>> if we could also -- staff will be happy to address [indiscernible] in the format that we just mentioned, if there's some way possible to expedite these payments that would be truly helpful to all of the contract agencies that -- that we have right now.
>> well, when he gets the correct paperwork, he will cut a check.
>> we will try. There's a lot of them and when -- when these -- that means that would have somebody be working extra to do it because there's -- there's quite a few of them. And the fact that we have been working on this since mid February and we still can't get them straight I mean just -- it's a burden on staff and -- when something like this happens, because now we have to stop other vendor when we sacrifice to get this one done. That's why we say, when we get a correct invoice, in the schedule --
>> what we are talking about, though, is not correcting an invoice, but putting a notation on the invoices so that you will know that these are coming through -- under the holdover, which would be January and February.
>> is that notation sufficient.
>> yes, that would be fine. I will work with them until we have sufficient time to get them in so we can expedite them as best as possible.
>> okay.
>> I just need to be sure we clarify that we are not operating without a contract.
>> no.
>> we are operating -- we do have a contract. And that that was the reason that the holdovers were put in because we had run into such problems with the contract, having to do kwan stomach mer rilt -- quantum merit and we are at all times operating with a contract.
>> my motion is to direct the agent for health and human services basically to indicate on the paperwork contract invoices that come in during the holdover period, payment from the new money, approve the invoices and request that they would be expedited as much as possible.
>> second.
>> any more discussion? All in favor? That passes by unanimous vote. Thank you all very much.
>> thank you. Now, dana had another commitment this morning, she wasn't sure what time she would get here, I told her that might be able to do the election items without her. We need to get tamara down here, too, right.
>> she's right here. 39 we need to take up after the -- after the corporations. A 2 we are taking up at 10:30. Mr. Davi if you are listening in my the -- after the corporations. A 2 we are taking up at 10:30. Mr. Davis, if you are listening office, if mr. Davis and cliff blunt uld arrange to be here at about 10:45.
Last Modified: Wednesday, March 31, 2004 10:27 AM