HomeMy WebLinkAboutResolutions - 2011.10.20 - 18759October 20, 2011
REPORT (MISC. #11246)
BY: Human Resources Committee, John Scott, Chairperson
RE: BOARD OF COMMISSIONERS — RESOLUTION EXEMPTING OAKLAND
COUNTY GOVERNMENT FROM THE PROVISIONS OF 2011 P.A. 152 FOR
CALENDAR YEAR 2012
TO: Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
The Human Resources Committee having reviewed MR #11246 on October 12,
2011 reports with the recommendation the resolution be adopted.
Chairperson, on behalf of the Human Resources Committee, I move the
acceptance of the foregoing Report.
HUMAN RESOURCES COMMITTEE
HUMAN RESOURCES COMMITTEE VOTE
Motion carried unanimously on a roll call vote
MISCELLANEOUS RESOLUTION #11246
BY: COMMISSIONERS MICHAEL JINGE L, DISTRICT #3, DAVID WOODWARD, DISTRICT #18,
BILL DWYER, DISTRICT #14
IN RE: BOARD OF COMMISSIONERS - RESOLUTION EXEMPTING OAKLAND COUNTY
GOVERNMENT FROM THE PROVISIONS OF 2011 P.A. 152 FOR CALENDAR YEAR 2012
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS, on September 27, 2011, 2011 P.A. 152, an act to limit a public employer's expenditures for
employee medical benefit plans, became immediately effective; and
WHEREAS, previously, on September 22, 2011, Oakland County's Triennial Budget for Fiscal Years
2012 — 2014 was adopted by the Oakland County Board of Commissioners; and
WHEREAS the adopted Oakland County Triennial Budget for Fiscal Years 2012 - 2014 is balanced,
maintains responsible recommended general fund equity balances, and funds current employee medical
benefit plans within existing revenues; and
WHEREAS, Oakland County's operating millage rate of 4.19% is effectively Michigan's lowest county
operating millage rate given the fact that Oakland County is the only Michigan county that has actuarially
fully funded its accrued retiree health care obligations (OPEB) within its operating millage rate; and
WHEREAS Oakland County's 2007 funding of its accrued retiree health care obligation using Certificates
of Participation will save Oakland County taxpayers an estimated $150 million over the life of the
program; and
WHEREAS the residents and taxpayers of Oakland County have been well-served by the County's
consistent utilization of its nationally-recognized Triennial Budget Process, a process that uses thoughtful,
detailed planning and employs incremental changes over time to yield significant results without serious
disruption in service delivery and in a manner that is fair to both taxpayers and employees; and
WHEREAS, in keeping with the County's established, long-range budgeting practices that actively
balance the interests of taxpayers and county employees, Oakland County Employees have been paying
contributions toward their health care coverage since 1997, contributing over $26 million toward their
health care costs; and
WHEREAS, for the three major health plans currently available to Oakland County employees, for single
person plans, employees already pay between 11.79% and 21.81% of the 2011 illustrative rate; and
WHEREAS significant time and expense has already been incurred relating to the execution of the
calendar year 2012 annual health care selection "open enrollment" process for employees, and those
investments will be lost and taxpayers will incur significant new costs if Act 152 is required to be
implemented by January 1, 2012; and
WHEREAS vigorous challenges to the legality of Act 152 are expected and the costs associated with
litigation required to support the validity of Act 152 will likely be substantial; and
WHEREAS, Section 8 of Act 152 authorizes a local unit of government, defined to include a county
government, upon a 2/3 vote of the governing body, to exempt itself from the requirements of the act for
the next succeeding calendar year; and
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WHEREAS, by exempting itself under Section 8 of Act 152 for calendar year 2012, Oakland County can
avoid costs of litigation, avoid the expense of conducting a new "open enrollment" selection process, and
secure reasonable time to prudently employ its recognized Triennial Budget Process, allowing the County
to continue making changes over time that yield significant reductions in health care costs in a manner
that is fair to both taxpayers and employees; and
WHEREAS exempting Oakland County from Act 152 for calendar year 9012 is equitable considering that
Oakland County's employees have already demonstrated by their actions a continuing willingness to fairly
share in the burden of meeting the significant economic challenges associated with Michigan's long
recession; and
WHEREAS in addition sharing the burden of health care costs by contributing over $26 million since
1997, Oakland County's non-312 eligible employees made significant wage and salary concessions by
accepting salary reductions of 2.5% for Fiscal Year 2010, a further reduction of 1.5% for Fiscal Year
2011, by accepting a salary freeze for Fiscal Year 2012, and by supporting the Fiscal Year 2013 budget
plan that continues the 2012 salary freeze; and
WHEREAS Oakland County employees' cumulative pay reductions for Fiscal Years 2010 and 2011
saved Oakland County taxpayers $14.4 million and, together with the pay freeze for Fiscal Years 2012
and 2013, will save an additional $17.6 million, for a combined total of $31.9 million in wage and salary
savings; and
WHEREAS the equitable nature of a 2012 exemption for Oakland County employees is further
demonstrated by the fact that the State of Michigan, as the employer of some 45,000 workers, effectively
exempted itself from the mandate of Act 152 by refusing to place the question of applying Act 152's
limitations to state workers on the ballot.
NOW THEREFORE BE IT RESOLVED that acting pursuant to the authority granted a county under
Section 8 of Act 152, the Oakland County Board of Commissioners hereby exmpts Oakland County
Government from the requirements of 2011 P.A. 152 for calendar yea t- 2012.
Chairperson, we move adoption o the foregoing Resolution.
Commissioner David Woodward
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Resolution #11246 October 5, 2011
The Chairperson referred the resolution the Human Resources Committee and the Finance Committee.
There were no objections.
FISCAL NOTE (MISC. #11246)
BY: BOARD OF COMMISSIONERS
RE: BOARD OF COMMISSIONERS - RESOLUTION EXEMPTING OAKLAND COUNTY
GOVERNMENT FROM THE PROVISIONS OF 2011 PA. 152 FOR CALENDAR YEAR 2012
TO: OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed the above
referenced resolution and finds:
The FY 2012 — 2014 Adopted Budget assumed the current levels of employee
contributions for health care. Therefore, no budget amendment is required.
October 20, 2011
(FTFTICE CORTIVniTEE 1/2
I
FINANCE COMMITTEE
Motion carried unanimously on a roll call vote.
/11
Resolution #11246 October 20, 2011
Moved by Taub supported by McGillivray the resolutions (with fiscal notes attached) on the amended
Consent Agenda be adopted (with accompanying reports being accepted).
AYES: Covey, Crawford, Dwyer, Gershenson, Gingell, Gosselin, Greimel, Hatchett, Hoffman,
Jackson, Long, Matis, McGillivray, Middleton, Nash, Nuccio, Potts, Quarles, Runestad, Scott,
Taub, Weipert, Woodward, Zack, Bosnic. (25)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the amended
Consent Agenda were adopted (with accompanying reports being accepted).
I HEREBY APPROVE THE FOREGOING REZUTION
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Bill Bullard Jr., Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true
and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on October
20, 2011, with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at
Pontiac, Michigan this 2O of October, 2011.
E,LLE ,94
Bill Bullard Jr., Oakland County