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HomeMy WebLinkAboutResolutions - 1988.07.14 - 17443Mi Sall:AN:R./US RESOLUTION 11 88171 July 14, 1988 BY: FINANCE COMMITTEE, DR. G. WILLIAM CADDELL, CHAIRPERSON IN HE: RISK MANAGEMENT - SW-INSURANCE OF HEALTH BENEFITS TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mr. Chairperson, Ladies and Gentlemen: WHEREAS through Miscellaneous Resolution 1186313 the Board approved changes in the employee benefit program including. changes in the health benefits designed to reduce County Cost with no detrimental effects on employee benefits, and the inclusion of self funded optical benefit; and WHEREAS the Risk Manager has reviewed the current health benefit package funding methodology and reccatrends changes in that methodology which should further reduce the County's cost of this benefit with no benefit Changes; and WHEREAS the recommended changes include contracting with Blue Cross Blue Shield of Michigan (BCBSM) under the Minimum Premium Program (MEP) which would allow the County the cash-flow flexiblity of a self-insured program with the advantages of a third party administrator; and WHEREAS the M.P.P. will be the funding methodology for both the health-care and dental benefits; and WHEREAS the establishment of reserve, initially equal to 10% of projected claims is also reccumended so as to avoid cash flow problems under the self-insured program; and WHEREAS it is further recommended that the optical benefit, currently contracted with Detroit Optometric Centers (D.O.C), be transferred to BCESM so that all health benefits will be administered under one program; and WHEREAS the Risk Manager will continue to explore options for further cost savings including the implementation of a Preferred Provider Program (PPO) and the restructuring of HMO relations.. NOW THEREFORE BE IT RESOLVED that the Board of Commissioners approves the concept of self-insured health benefits for County employees and authorizes .the Risk Manager and other pertinent staff to execute a Minimum Premiw Program Agreement with Blue Cross Blue Shield of Michigan. BE IT FURTHER RESOLVED that a reserve for incurred but not reported claims be established in an amount equal to 10% of the projected claims. BE IT FURTHER RESOLVED that the optical benefit contract be transferred to Blue Cross Blue Shield of Michigan and be melded into the self-funded program. Mr. Chairperson, on behalf of the Finance Committee, 1 move the adoption of the foregoing resolution. FINANCE COMMITTEE Y APPROVE THE FOREGOING RESOLUTION T, Mutphy, Co fay e Date 7 — COUNTY MICHIGAN !USX MANAGEMENT AND SAFETY Dank)! T. Murphy, ()Aland County Executiva Gerald F. Mathews, Insurance and Sate/ Coon-Mat-or DATE: June 28, 1988 TO: G, William Caddell Chairperson, Finance Committee Oakland County FROM: Stanley B. Fayne Risk Manager Oakland County SUBJECT: Self Insurance of Health Benefits Management Summary Attached for your information are highlights of the study memo dated June 23, 1988 which was previously distributed to you Comparative costs premium versus cash flow program are: Premium Program Estimated Fully Incurred Benefits (1/88-12/88) Stop Loss Charge Administrative Costs (12.5% of Incurred Claims) Cash Flow Program (Administrative Services Contract) Estimated Fully Incurred Benefits (1/88 - 12/88) Stop Loss Charge Administrative Costs (10.34% of incurred claims) Annualized Savings $9,095,678 286,421 1,137,590 $10,519,679 $9,095,678 236,363 940,493 $10,272,534 $247,145 In addition, there would be estimated cash flew savings as follows: Executive Office Buikliug • . 1200 North Telegraph Road • Pontiac, Michigan 4805-3-1084• (13) 858-1067 Self Insurance of Health Benefits Management Summary Page 2 Cash Flow Using certain claim's and interest assumptions, we have established the following estimated cash flow results between the programs. ASC 12 months 24 months + $32,200 - 60,845 - 28,645 MOO 12 months 24 months + $62 ;072 + 10,055 + 72,127 Based on the study, there is an estimated two year cash flow savings of $72,127 with the MOP as opposed to the potential of a negative (-) $28,645 under the ASC. Reserves Under the current BCBS premium program, a portion of the premium payment is a reserve for Incurred But Not Reported Claims "IBNR". The IBNR is factored into the renewals to project estimated fully incurred claims costs for the renewal year to protect BCBS from adverse claims experience. It is recommended that the reserve concept be continued for budgetary purposes. If our experience is adverse in any particular year, a reserve fund would avoid cash flow problems. The reserve should be a revolving fund type because there will be some change from year to year in the required reserve amount because of changing claims experience. The reserve amount would be computed by the third party administrator and/or in house. The reserve would be a percentage of the estimated future claims. BCBS is using a net (after hospital discount) of about 10% of anticipated claims. and have recommended that we use 10%. It is recommended that 10% of projected claims be established as the initial reserve fund amount. Self Insurance of Health Benefits Management Summary Page 3 Vision Coverage There have been complaints with the present vision program concerning the quality of frames and lenses, pressure to purchase additional glasses, not honoring advertised sales, limited frame selection and the difficulty of obtaining examinations from ophthalmologists. This situation is not unique and can arise where the provider of ser- vices also acts as the administrator. under the current program, from a risk management standpoint, there is another problem. We are not currently receiving claims utilization information. Without this information,.aggres- sive competitive marketing of this coverage becomes difficult. If there is approval to self fund the balance of the health program, would recommend that the vision program be transferred to BCBS and melded into the self funded program because of the lack of credible claims history and the fact we would be paying only the cost of claims plus the administrative fee. SBF/bls COUNTY MICHIGAN RISK MANAGEMENT ANO SAFETY Daniel T. Murphy, Cinhland County Executive Gerald F Mathews, Insurance and Safety Coordinator DATE: June 13, 1988 TO: Daniel T. Murphy County Executive Oakland County G. William Caddell Chairperson, Finance Committee Oakland County FROM: Stanley B. Fayne Risk Manager Oakland County SUBJECT: Self Insurance of Health Benefits I HEALTH PROGRAM OVERVIEW A. Blue Cross Covers in hospital general costs in full including extras such as lab services, therapy, etc. and (semi private room) for 120 days B. Blue Shield Covers doctor's charges and surgery based on usual, customary and reason- able charges, and laboratory, X-ray fees, etc. Outpatient lab tests and X-rays require a small employee co-pay. C. Master Medical Protection for catastrophic loses and broadening of certain protection under the basic Blue Cross Blue Shield coverages. Hospital care for T.B. and mental conditions, psychiatric care, allergy testing, blood, visiting nurse service, etc. subject to $100 per individual and $200 annual family deductible and 90% coinsurance. D. Prescription Drug Covers generic prescription unless a specific brand is prescribed by the doctor. $3.00 co-pay per prescription; limited to 24 day supply. Executive Cfn • ce 1200 North Telegraph Hod • Pontiac, Michigan dS053-1034 • P131 858-1067 Self Insurance of Health Benefits Page 2 E. Dental Coverage at 100% of usual, customary and reasonable for diagnostic and preventive, 85% for periodontic, preventive, 50% for dentures and bridges and 50% for orthodontic. There is a $750 per year maximum for general services and a $750 lifetime maximum for orthodontics per person. There is a $25 per person deductible per year and $50 a year per family deductible. F. Vision Testing, corrective lenses and frames once every 24 consecutive months. Contact lenses on an allowance basis. There are certain cost limitations for frames and lenses. Copayments Eye Examination $5.00 Eye Class Frames and Lenses $7.50 Contact Lenses $7.50 II CLAIMS INFORMATION A. Claims Information 1987 1987 Projection' 1987 Projection Update2 Projected Claim Charges: $8,880,586 $8,973,514 Less Hospital Discount 731,759 856,233 Projected Claims Costs 8,148,827 8,117,281 Plus: Administrative Expense 863,710 827,194 Plus: Charge for stop-loss pooling protection 159,936 152,743 Total Expenses . $9,172,473 $9,097,218 1 Claim projection provided by carrier as of 10/87. 2 Claim projection provided by carrier as of 3/88. $9,095,678 1,137,590 286,411 467,100 $10,986,779 Self Insurance of Health Benefits Page 3 B. Claims Projections 1988 Estimated Projected Claims Administrative Expense Stop Loss Pooling Charge Excess Claims payments from previous period III CURRENT FUNDING MBI8O[X)1,03Y The current program with Blue Cross Blue Shield (BOBS) is on a premium basis which is 100% credible. That is, the actual claims experience, because of our large size, is applied on a prospective basis for the following year to compute a premium which is payable on a monthly basis. There is also a provision for actual claims experience to recover excess claims payments made by BOBS which exceeds premium payments. The projected claims are further modified to factor in a trending pattern for the group's specific claims history and an inflation factor. There is a reserve held by BCBS for Incurred But Not Reported Claims (IBNR). This is to pay claims should the group cancel, non-renew or fail to pay premiums. There is also a provision for BOBS to recoup deficits from the previous year(s). In addition, there is a charge for stop loss insurance. Any payment in excess of $75,000 for a specific claim is the responsibility of BOBS. Finally, there is a BOBS retention charge for their administrative expenses which is a percentage of the projected benefits. For 1988 this will be 12.51% of projected benefits. IV FUNDING OPTIONS BOBS has several funding programs which present an opportunity for the County to reduce costs and increase cash flow. The question is not whether to change from our current program, but which optionwould be most advantageous for the County: The two major options presenting the greatest opportunity are an Administrative Services Contract (ASC) program or a Minimum Premium Program (MPP). A) Administrative Services Contract (ASC) An ASC program involves the use of a third party administrator (BOBS) processing claims and administering various cost containment programs. This is a "self insured" concept and BOBS are reimbursed for the claims $9,095,678 236,363 940,493 $10,272,534 $247,145 Self insurance of Health Benefits Page 4 they have paid and their administrative fee. Typically BOBS payment is made by a weekly bank wire transfer. The weekly payment is based on the projected claims and administrative costs for the current quarter. This cost projection is based on a "rolling" twelve (12) months claims experience ending two (2) months prior to the next quarterly review. On an ASC program the employer would purchase stop loss insurance just as with an insurance premium program. BOBS would not establish a reserve for the IBNR claims because the client is responsible for all claims. The employer would still be entitled to the BCBS discount which is estimated at 16.3% for 1988. To receive this benefit, we would have to deposit forty (40) days of estimated hospital payments ($446,697) with BOBS. The projected hospital discount of $794,959 far outweighs the loss of interest on $446,697. The projected administrative cost under this program is 10.34% of paid claims; ($9,095,678) versus 12.5% of projected paid claims under the traditional program. This would result in the following comparative program costs of 1988: Premium Program Estimated Fully Incurred Benefits (1/88-12/88) Stop Loss Charge Administrative Costs (12.5% of Incurred Claims) Cash Flow Program (Administrative Services Contract) Estimated Fully Incurred Benefits (1/88 - 12/88) Stop Loss Charge Administrative Costs (10.34% of incurred claims) Annualized Savings B) Minimum Premium Program $9,095,6781 286,411 1,137,590 $10,519,679 A Minimum Premium Program (MPP) differs in several respects from the ASC as described above. One of the key differences is cash flow. Cash flow of MPP and ASC programs will be discussed as a separate topic below (see Page 6) for comparison purposes. The annualized savings for claims costs are about the same for MPP and ASC. 1 This claims cost estimate is used in order to compare the actual premium program as renewed for 1988 to a cash flow program. Self Insurance of Health Benefits Page 5 Another key difference between MPP and ASC is that under an MPP program, a deposit is required to be paid to BCBS to cover their claim payments during the time they are paying claims and we have net paid BCBS. This amount is $1,477,000 and represents about sixty days of expected claims. In this arrangement, we are also self insuring our claims and paying adminis- time costs and purchasing stop loss insurance. It differs from the ASC arrangement in that there is a cap to cover the amount of claims paid monthly. Expected claims are calculated on an annual basis by taking the experience beginning eighteen months prior to the inception of the contract year and ending six months prior to the inception of the contract year. These claims are then adjusted for inflation and utilization increases. The annual expected claims payments are divided by 12 and a 110% cap that applies to each month. In the first year of the contract the first premium payment is not due until the third month of the program. On a monthly basis, the County- is not immediately liable for amounts which exceed the cap. However, if a deficit amount is owed to BOBS, a re- coupment for this deficit is made in any month when actual claims fall below the capped monthly payment. If there is still a deficit at the end of the year, this deficit must be paid within one hundred and twenty (120) days. Administrative Fees The proposed estimated administrative expense of $929,177 becomes a monthly administrative fee of $23.98 per contract. There are 3,229 contracts used for this rating purpose. The administrative fees are the same for ASC and MPP. The fee is revised for each contract year. Stop Loss Insurance The County's current stop loss program is based on specific loss only. We are responsible for the first $75,000 of claims paid per year on each contract. BCBS stop loss is based on paid claims. That is, for each policy period (1/1 - 12/31) BCBS will pay and does not charge the County claim payments that are made in excess of $75,000 for all members on a single contract.. If the same claim continues into another year, a separate $75,000 deductible must be paid by the County. I would recommend that for the Second year of self insurance, we price incurred type stop loss insurance. This type of insuranpe reimhurses without further deductibles, no matter when the payments occur, as long as the payments are for the same illness or accident. This type of insurance can also be purchased with a_single deductible per family. Self Insurance of Health Benefits Page 6 BCBS also offers "aggregate" stop loss. Aggregate stop loss is applicable when total claims paid exceed 120% of expected claims. It is recommended that this coverage not be purchased even though the cost is nominal ($1.05 per month x 3229 contracts = $3,390 x 12 months = $40,665). Expected claims are developed by BCBS and are usually conservative (high) to protect BOBS cash position. Previous studies 1 have done, show (statis- tically) that this aggregate step loss is seldom pierced; and when it is, the amount is minor compared to paid premiums. Most literature also recommends that a group of our size not insure for aggregate stop loss coverage. Cash Flow Using certain claims and interest assumptions, we have established the following estimated cash flow results between the programs. ASC MPP 12 months $32,200 12 months 24 months - 60,845 24 months' - 28,645 + $62,072 • 10,055 + 72,127 Based on the study, there is an estimated two year cash flow savings of $72,127 with the MPP as opposed to the potential of a negative (-) $28,645 under the ASC. Additional Savings - Administrative Fees Mr. Luzi and I have also been able to negotiate an additional one time savings from BOBS. They have agreed to a waiver of the administrative fees for the first two months of either program. Savings 3,229 X $23.98 = $77,431 x 2 = $154,862 Summary of Estimated Savings Omit Aggregate Stop Loss $ 40,685 Program Savings 247,145 Cash Flow Savings 62,072 Administrative Service Savings 154,862 $504,764 1 Twenty four months is used to give a more conservative approach Self Insurance of Health Benefits Page 7 Reserves Under the current BCBS premium program, a portion of the premium payment is a reserve for Incurred But Not Reported Claims "InNR". The IBNR is factored into the renewals to project estimated fully incurred claims costs for the renewal year to protect BCBS from adverse claims experience. It is recommended that the reserve concept be continued for budgetary purposes. If our experience is adverse in any particular year, a reserve fund would avoid cash flow problems. The reserve should be a revolving fund type because there will be some change from year to year in the required reserve amount because of changing claims experience. The reserve amount wOuld be computed by the third party administrator and/or in house. The reserve would be a percentage of the estimated future claims_ BCBS is using a net (after hospital discount) of about 10% of anticipated claims. and have recommended that we use 10%. It is recommended that 10% of projected claims be established as the initial reserve fund amount. V TRANSITION A change from the current program to a MPP will require the coordination of Personnel, Management and Budget, Computer Services and Risk Management. Management and Budget Will have to arrange a different accounting reconciliation which will be based on a monthly claims bill rather than the current premium payment. Themonthly bill will be composed of the capped claims paid amount plus the monthly administrative fee. A monthly hard copy claims report will be supplied to Risk Management and transmitted to Accounting and Personnel. The claim run will be the back up for the claims payment portion of the monthly bill. There will also be an annual reconciliation. Computer Services BOBS will provide a monthly claims tape to Oakland County. This can be run in a tape to tape format to verify claims eligibility. The tapes can also be run with a program to provide various reports for Personnel and Risk Management. Personnel Department Personnel would continue the automated additions and deletions of the group's members. Personnel would review the monthly claims run for quality assurance, while, at the same time, seeing a reduction in billing responsi- bility. They would also continue to respond to employee inquiries and Self Insurance of Health Benefits Page 8 provide initial assistance on claims problems. On balance there should be no additional work load under the new program. Risk Management Will continue its actions to coordinate the transition from a premium program to a self funded program_ Risk Management will also continue to assist Personnel in resolving problem claims. Risk Management will continue, in cooperation with the Personnel Department, its studies to make recommenda- tions for cutting HMO costs and reduce other health care costs, through cost containment programs and possible changes to the traditional plan. Future Action The change from a premium program to a self funded minimum premium program should not be considered a final step because of the savings. There are opportunities for possible future additional savings by imple- menting a Preferred Provider Program (PPO) and restructuring our HMO relations. A (PPO) reportedly reduces costs on average about 10% over traditional medical programs, A PRO more closely resembles a fee-for-service plan because it is a vehicle for financing health care, rather than providing health care itself. The health care provider who is a member of the PRO whether it be a hospital or doctor delivers health care services for prospectively (set ahead of time) negotiated fees. These fees are generally on a fee for service basis, but at a discounted rate. Vision Coverage There have been complaints with the present vision program concerning the quality of frames and lenses, pressure to purchase additional glasses, not honoring advertised sales, limited frame selection and the difficulty of obtaining examinations from ophthalmologists. This situation is not unique and can arise where the provider of services also acts as the administrator. Under the current program, from a risk management standpoint, there is another problem. We are not currently receiving claims utilization information. Without this information, aggressive competitive marketing of this coverage becomes difficult. If there is approval to self fund the balance of the health program, would recommend that the vision program be transferred to BOBS and melded into the self funded program because of the lack of credible claims history and the fact we would be paying only the cost of claims plus the administrative fee. We would also remove the potential of conflict by not having the provider also act as the administrator. We should also have higher employee satisfaction Self Insurance of Health Benefits Page 9 because the employee would have the option of selecting a participating pro- vider. If the provider was a participating optometrist/dispenser, the employee would receive a greater benefit for less of his or her money. In addition, participating BCBS opthalmologists would not require additional payment from the employee. The benefit level would remain the same but cost for the County should be reduced because of the BCBS arrangements (negotiated costs) with the providers and the self funded approach. Once an organization like BCBS, having computer capability, enters the claims history of the subscriber then there would not be duplication of bene- fits or benefits paid prior to the appropriate waiting periods having elapsed. VI SUMMARY The County stands at the threshold of an opportunity for significantly furthering a broad spectrum of combined programs to manage the costs of its largest single fringe benefit - Health Care. An effective program can accomplish cost reductions through self funding, implementation of a PRO, and plan changes. Health Maintenance Organizations (HMO's) must be required to deliver equal health services at competitive prices without creating adverse risk for the County. We should implement additional cost containment programs such as employee bill review, and additional Managed health care concepts such as further home health care and wellness programs. The County's managed health care program began in December of 1985 with changes to retirees' eligibility for health care coverage for those hired after September 1985. A graduated schedule, based on years of service, was introduced so that only career Oakland County employees would be eligible for full health benefits. This should result in significant future savings. The next step occurred in January 1987. Several changes were implemented in the BCBS plans for active employees and retirees to further reduce the cost to the County. Deductibles and co-pays were increased and the PREVENT and Second Surgical Opinion programs were implemented to monitor hospital usage. It is estimated that these changes will result in substantial savings on an ongoing basis. Self Insurance of Health Benefits Page 10 Therefore, as indicated above and for the reasons stated, it is respect- fully recommended that the Minimum Premium Program contract which is attached and has been approved by Corporation Counsel be approved, vision coverage be self insured and the highest support given to continue future cost contain- ment programs. cc: Roy Rewold Chairperson, Board of Commissioners Kenneth Burch ill Oakland County Deputy Executive C« Vincent Luzi Personnel Director Louis MacKenzie Management & Budget Director Russell Martin Management & Budget Deputy Director Shan Topiwalla Computer Services Director Enc. SBF/bls 447 $ 32,180* 1,477 952 + 77 LDE.INISTRA7IVE SERTTCES 00MPREMT.T.M.1 EYETBIT 3 (HO omitted) Following cash flow projection assumes hypothetical month-to-month random variations in paid claims. itt defines how the 110; cumulative cap will work. It is used for illustrative purposes to illustrate the hypothetical cash flow of the program, it cannot be used to progose future liability to Oakland County. Month Year 1 Recoupment Monthly Paid Claims Monthly and ASO -14i Carrier Administrative Fees CAP Billing kenewal Fimed Interest Changes Payments Gain/Loss included. 2 834 + 77 , 3 966 + 77 $ 901 901 (DO) + 1,083 4721 + 77 901 901 (142) . + 1,183 , 5 938 + 77 901 901 (286) + 2,383 6 669 + 77 901 901 (185) + 1,542 7 933 t 77 901 901 (301) + 2,508 8 1,301 + 77 901 901 (148) + 1,233 9 872 + 77 901 901 259) + 2,160 • 10 644 + 77 , 901 . 903 (738) + 6,150 11 950 + 77 . 901 901 (788) + 6,567 12 1,013 + 77 901 . 902 (610) . .1. 5,083 Net Interest Gain/Loss for the Year *_62,072 •Net interest gain is calculated as fullou's “147,700 loss in investment income plus income gains due to claim drag). ISTaLTIVE SZRVIC.:L8 !.Y.TZSL1'.L11-i 70111I1 (continue) -8X8TBIT5 (000 omiefed) Monthly Paid _Claims , Monthly and .. ASC - M.P Carrier Rene-....:al FiTY.ed Interest Month Administrative Fees CAP Billing Reconpmant Chan-2es 13ayents . Gain/Loss ----- Year 2 • . (000 included) 1 $ 748 + 91 $ 913 $ 913 (738) -17.01) increase - 1200, for inflation plus 151 lncrease•in'.- adirdzilstrative expense 2 509 -i- 91 913 913 3 1,003 + 91 1,052 1,736 . 0 4 848 qj 91 . 1,052 600 . , 5 729 + 91 1,052 1,052 ' (42) + 433 6 554 + 91 1,052 981 • 7 1,013 + 91 1,052 KO 8 964 + 91 1,052 645 9 . 1,016 + 91 1,052 1,052 (52) + 432 10 . 1,000 + 91 1,052 1,052 (55) + 457 . . 11 1,027 + 91 1,052 1,052 (110) + 913 . 1 9 886 + 91 1,052 1,052 (149) + 1,73? Net Interest Gain/Loss for the Year $ 10,055 Total Interest Gain/Loss Durinc,- Year 1 and 2 „S 7 9 ,127 (917) 7,783 .2?"76177TYC 4, FOOTNOTES TO EXHIBIT 1. The monthly payment cap ir..equal to one twelfth of 1102 of expected annual claims plus $77,000 for administrative expenses. . 2. The monthly carrier billing is the actual claims (delayed by 60 days) -plus administrative expense to a maximum monthly payment of the ASC—MPP cap. 3. Reccupments are equal to payments due ab ove th e mu ,thly cap lim it (a ), These charges are carried forward to a month when the cap is not met and then paid up to the cap limit. The renewal changes are as noted and have the effect of raising the monthly cap to $1,052,000. 5. As with the ASC Exhibit A, the $447,000 hospital pre -funding fund develops a hospital charge discount, and therefore, I have not shown an interest gain or loss. 6. Interest gains are based on 10% for a 30 day period of each incremental amount shown. 7. The $1,447,000 claim advance is to cover the two month delay ROBSM uses in collecting claim payments. 8. The deficit of $917,000 is collected within 120 days of the end of the contract year. Therefore, payment is added to the regular monthly payment. 9. In year two, the two month claim advance deposit requirement is increased to $1,720,000. 10. When interest earned doe to 60 day delay in claim payments is netted against interest loss due to claims advance deposit requirements, net intereSt gain in year one of the program is $32,100 and $10,055 in year two of the program. this 14th ALUYei, County Clerk/Register of day of 1 LYILIN 388 Resolution L2R171 July:14,1988... Moved by Page supported by McDonald the report be accepted. A sufficient majority having voted therefor, the motion carried. Moved by Page supported by Crake the resolution be adopted. Discussion followed. Daniel T. Murphy, County Executive, addressed the Board. Vote on resolution: AYES: Oaks, Page, Pernick, Price, Rewold, Rowland, Skarritt, Wilcox, Aaron, Bishop, Calandro, Crake, Gosling, Hobart, Jensen, R. Kuhn, S. Kuhn, Lanni, Luxon, McConnell, McDonald, A. McPherson, R. McPherson. (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 the attached resolution adopted by the Oakland County Board of Commissioners at their regular meeting held on July 14,. 1988 with the original record thereof now remaining in my oFFice, and that it is a true and correct transcript therefrom, and of the whole thereof. In Test irony Whereof, I have hereunto set my hand and affixed the seal of said County at Pontiac, Michigan