HomeMy WebLinkAboutResolutions - 1984.08.09 - 16000MISCELLANEOUS RESOLUTION # 84222 August 9, 1984
BY: FINANCE COMMITTEE, G. WTILIAM CADDELL, CHAIRPERSON
EMPLOYMENT & TRAINING DIVISION-
IN RE: LEGAL SERVICES CONTRACT AND EXPENDITURES CONCERNING CLTA AUDITS
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
WEEREAS the Oakland County Board of Commissioners, by
Miscellaneous Resolution Nos. 6545 and 8883, applied for and was
granted the designation as Prime Sponsor by the U.S. Department
of Labor to administer the provisions of the Comprehensive Employ-
ment and Tratning Act of 1973 and the Comprehensive Employment and
Training Act Amendments of 1978; and
WHEREAS costs have been questioned and/or recommended
for dIsallowance in CETA Audit A059-80-000116 (83-CTA-22) and
CETA Audit A059-82-000333 (8L-CTA-15); and
WHEREAS costs have been questioned and/or recommendec
for disallowance in the FY-1983 CETA Special Purpose C3ose-Out
Review report, #05-3-209-03-345 (84-CTA-177), in an amount of
$236,581; and
WHEREAS the total amount of questioned and disallowed
costs exceeds $4 Million Dollars; and
WHEREAS the FY-1982/1983 Attachment "P" Audit which en-
compasses CETA funds has not been finalized; and
WHEREAS Miscellaneous Resolution Nos. 83035, 83054 and
84053 authorized the Chairperson of the Oakland County Board of
Commissioners to enter into a contract for legal services Inci-
dental to the resolution and/or litigation of the above Audits
and Special Review with Charles G. Preston; and
WHEREAS the County continues to require the legal services
of Charles G, Preston on Audits A059-80-000115, A059-82-000333,
Special Purpose Close-Oat Review #05-3-209-03-345 and the FY-1982/1983
Attachment "P" Audit; and
WHEREAS all funding incidental to. the CETA program termi-
nates on July 31, 1984; and
WHEREAS it is necessary for the resolution, negotiation,
and/or litigation of the above Audits and Review to provide for all
Y APPROVE THE FOREGOING RESOLUTION
_EaTLY7X_ Dee
legal expenses, preparation, witness , *fees,' accounting fees, staff
reimbursements, as well as all expenses related and incidental thereto;
and
WHEREAS Corporation Counsel has reviewed the legal expenses, as
well as all related and incidental expenses, and finds the estimated
expenses of $250,000, with an estimated $80,000 expenditure for 1984,
to be reasonable; and
WHEREAS the Finance Committee recommends a budget of $250,000
through June 30, 1985, for the resolution and/or litigation of the
above Audits and Report, with $80,000 to be allocated in 1984, and
$170,000 be designated in the 1985 Budget for estimated 1985 expendi-
tures.
NOW THEREFORE BE IT RESOLVED that the Chairperson of the Oakland
County Board of Commissioners is authorized to enter into an Amended
Professional Service Contract for legal services with Charles G. Preston
for the purpose of assisting in the preparation, negotiation, litigation
and resolution of all the above Audits and Report.
BE IT FURTHER RESOLVED the Board of Commissioners acknowledges the
attached report and at this time finds the sum of $80,000 available in
the 1984 Contingency Account to cover said costs for the balance of 1984.
BE IT FURTHER RESOLVED that the Board of Commissioners appropriates
$80,000 from the 1984 Contingency Account and transfers said amount to
the 1984 Non-Departmental CETA Liability Cost-Legal Expense line item
for the purposes of all the resolution and/or litigation of said Audits
and Report which shall include attorneys' fees and expenses, all liti-
gation costs, witness fees, accounting fees, staff costs, including all
related costs and incidental expenses as follows:
901-01-00-9112 Contingency ($80,000)
927-02-00-3456 CETA-Legal Expense 80,000
-0-
Mr. Chairperson, on behalf of the Finance Committee, I move the
adoption of the foregoing resolution.
:FINANCE COMMITTEE
OAKIAND COUNTY
entiewmmon•A .arta
Dm_ MY 20. 1984
From. D.E. Vantine T-•Employment & TraininR
Russ Martin - Managarent & Meet
subject. Allocating Funds to Pursue cErA Audit Resolutinn
By legislative mandate the CM Program terndnated on 09/30/83 and no imam
costs could be incurred after that date. The close-out process of this program
began on 10/01/83 and the original ending date was scheduled for 03/31/84.
An extension of the close-out date was granted at the end of March to extend
the close-out date to 07131/84 for those Prize Sponsors who applied for an
extension. During this period of close-out activity, the Employment &Training
staff was involved in preparing audit files and documentation for Cbrporat ion
Cbunsel, Washington D.C., Counsel, journal entries and documentatioo search,
and meetings with the U,8. Department of Labor among other follow-up activities.
As of 07/31/84 no costs can be incurred for these processes or activities.
We have submitted a request for an extension 01 the close-out date to 09/30/84
from the Department of Labor but there is no guarantee that this will be
granted. These processes mentioned shove are still to be completed and may
vary dependent upon court actions in the future.
The pursuit of this resolution of our outstanding audits will require expenditures
in three nain areas through June 30, 2985:
2. Legal costs for CtarlImPrestoe for $100,000.00.
2. Outside CPA Acxxxmnting technical assistance for $50,000.00.
3. Employment and Trening staff costs and travel, etc., for $100,000.00,
nuking the total request for funds $250,000.00.
The actual costs incurred in this Ratter may be lowered in the event
of a favorable resolution of our audit puler to the anticipated date.
xe: Betemt Chisho3m
BallicKay
Linda Wasielewski
$ 100,030 2. legal fees for Charles Preston
Pee of $100.00 per hour plus court time, staff and
travel expenses.
2. CPA - Accounting Technical Assistance 50 000
Contract CPA to review and possibly document issues
in the resolution of disallowed cost. This will take
place most likely close to the time of a trial.
3. Eaployment & Training Staff and other related expenses 100 000
Annual*
Salary 4; % of
Position Fr. Ben. Time Dollars
ETA Manager $ 60,916 10% $ 6,092
Accounting Supervisor 43,987 20% 8,797
Accountant III 40,866 50% 20,433
Accountant II 34,760 50% 17,380
Secretary I 25,962 10% 2,595
Clerk III 23,005 20% 4.601
$ 59,898
Other related expenses such as: travel, copy fees, phome
calls, other staff members may be involved, testimopy etc. $ 40,011
Poesible Staff Assignments
1. Preparation of files and securing documentation for court
cases.
2. Ulephcoe and other consultation with legal council.
3. May have to give testimony in court case.
*Salaries and fringe benefits are from the Cakland °minty Salary Budtet
forecast furnished by the Budget Department and does not include any
Increase on January 1, 1985.
•
The expenses are for an 11 month period from 8/1/84 to 6/30/85 and
accumulated by quarter.
9/30184. .12/31/84 3/31/85 6/30/85
Quarter only $ 40,000 $ 39,996 $ 40,004 $130,000
Cumulative 79,996 120,000 250,1300
'Me expenses will not be straight line for the following reasons:
I. More time will be spent close to court dates or other resolu-
tion methods.
2. A court date will likely be towards the end of this 11 month
period.
. . •
3. Mast concentrated efforts will be at the- °dart date ouch as the
CPA eapense.
Note: The County, through indirect mist recovery Iran the :IPA %wren,
can reamer approximately $45,000 in the period January 1, 2985
to June 30, 2985 at our current rate.
this 9th day of
ALLEN
County Clerk/Register of Deeds
1984
• , . a
#84222 August 9, 1984
Moved by Caddell supported by Perinoff the resolution be adopted.
AYES: Foley, Fortino, Gosling, Hobart, Jackson, R. Kuhn, S. Kuhn, Lanni,
Law, McConnell, McDonald, McPherson, Moffitt, Page, Perinoff, Pernick, Price, Rewold,
Wilcox, Aaron, Caddell, Calandro, Doyon. (23)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lynn D. Allen, Clerk of the County of Oakland and having a seal,
do hereby certify that I have compared the annexed copy of
Miscellaneous Resolution #84222 adopted by the Oakland County Board of Commissioners
ot Aeir meeting held on August 9, 1984
with the orginial record thereof now remaining in my office, and
that it is a true and correct transcript therefrom, and of the
whole thereof.
in Testimony Whereof, I have hereunto set my hand and affixed the
seal of said County at Pontiac, Michigan