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5. Personnel benefits will be computed at a standard 33% of gross <br />salary. <br />Discussion: The benefit costs of employees are included in the <br />budget summary under item 1. <br />6. The consolidated organization will not assume any significant <br />financial or personnel obligations of the premerged organizations. <br />The premerged organization(s) would be responsible for all <br />liabilities known and outstanding prior to the merger, including <br />workers' compensation, compensation time, lawsuits, unfunded <br />pension liability, accrued vacation, accrued sick leave, and <br />severance pay. <br />Discussion: The City of St. Paul has a preliminary estimate that <br />assumption of these obligations would cost $1.8 million. This <br />will be a major cost that must be funded by the City. <br />7. All fixed assets would be transferred to the consolidated agency. <br />Clear title and property ownership would be included in this <br />transfer for the length of time that the property remains in <br />public ownership. <br />Discussion: The primary fixed asset is the City's building and <br />parking lot located at 555 Cedar. The City has estimated the <br />value of these building at $4.5 million. The City has also <br />indicated that transfer of this property to Ramsey County would <br />not be consistent with the City's plans for downtown development <br />and implementation of a cultural corridor. Rental of space by <br />City Public Health in the West Building is also not consistent <br />with City policies. <br />Other fixed assets include office furniture, computer equipment, <br />phone equipment, vehicles. The nature and value of these assets <br />need to be identified. <br />8. The new service delivery model would assume the same or improved <br />service levels. <br />Discussion: This concern is addressed in Ramsey County's Special <br />Code, Minnesota Statutes Chapter 383A.12, Health Department. <br />Subdivision 8 states: <br />"None of the functions of the presently - existing city health <br />departments in the County of Ramsey may be abandoned by the <br />County health department without proper provision for the <br />exercise of the function by some agency of <br />government." <br />7 <br />Page 26 <br />