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HomeMy WebLinkAboutResolutions - 1993.04.29 - 21843April 29, 199,3 MISCELLANEOUS RESOLUTION 93063 BY: FINANCE COMMITTEE, JOHN P. MCCULLOCH, CHAIRPERSON IN RE: CETA SETTLEMENT AGREEMENT To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS, the Oakland County Board of Commissioners by Miscellaneous Resolution #6645 and #8883, applied for and was granted the designation as a Comprehensive Employment and Training Act (CETA) Prime Sponsor by the U.S. Department of Labor; and WHEREAS, various CETA audits and a special purpose close-out reviews have resulted in certain costs being questioned with disallowed costs exceeding $4,000,000; and WHEREAS the settlement agreement between the United States Department of Justice and Oakland County for case number 84-CTA-177 states that $105,676.50 ($78,274 for disallowed costs and $27,402.50 for accrued interest) shall be paid to the Department of Justice by May 14, 1993; and WHEREAS the settlement agreement between the United States Department of Labor and Oakland County for case numbers 83-CTA-22 and 84-CTA-153 states that $1,094,323.50 for disallowed costs shall be paid to the Department of Labor in installments: January 31, 1994, January 31, 1995, and January 31, 1996; and WHEREAS funds of $127,590 are available in the Oakland County Ceta Employees Retirement Fund for the first payment and outside legal fees with the balance to be carried forward to help fund the second payment; and WHEREAS funding for subsequent payments will be included in the 1994/95 Biennial Budget and the 1996 Budget. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners approves the attached agreement with the United States Department of Justice and agreement with the United States Department of Labor totaling $1,200,000. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners approves the close-out of the Ceta Retirement Fund (#73200) and amends the 1993 Budget as follows; Revenue 3-10100-904-01-00-5731 Equity Transfer In from Ceta $127,590 Employees Retirement Fund Expenditures 4-10100-901-01-00-9113 CETA Audit Misc. $127,590 BE IT FURTHER RESOLVED that the Oakland County Board of Commissioner authorizes the County Executive to enter into the attached agreements. Chairperson, on behalf of the Finance Committee, I move the adoption of the foregoing resolution. FINANCE COMMITTEE ,7 TT NANC\GENERALCETA.RES cLiFt\rf CPY SETTLEMENT AGREEMENT This Agreement is entered into between the United States Department of Justice and Oakland County, Michigan in resolution of the case referenced below. WITNESSETH T*.T: WHEREAS, the County of Oakland, Michigan (hereinafter "Grantee") and the United States Department of Labor entered into grants (as listed in the Attachment to this Agreement) under the Comprehensive Employment and Training Act of 1973, as amended, 29 U.S.C. Section 801 et seq., and WHEREAS, the Grant Officer, based upon program audits, issued a Final Determination, wherein it was determined that a total of $213,774 of expenditures were not allowable; and WHEREAS, the Grantee appealed this Final Determination and this appeal was docketed as 84-CTA-177; and WHEREAS, Grant Officer disallowances upheld by an Administrative Law Judge in 84-CTA-177 were further appealed to the United States Court of Appeals (6th Circuit) as Case No. 87- 3656 and, at the conclusion of all such matters, disallowed costs of $78,274 were upheld; and WHEREAS, on February 12, 1990, the Department of Labor referred this debt to the Department of Justice for collection; and EREAS, the parties desire to settle the aforementioned matter, NOW THEREFORE, the parties do agree as follows: WH SETTLEMENT AGREEMENT1 Attorney FOR THE GRANTEE: SIGNATURE: TITLE: FOR THE DEPARTMENT OF JUSTICE: United State Charles G. Preston, Esq. Attorney for the Grantee . By: CAROLYN BELL HARBIN Authorized Representative the Attorney General DATE: DATE: SIGNATURE: DATE: 1. Payment in the amount of $105,676.50, consisting of $78,274 in debt principal and $27,402.50 in accrued interest, shall be made to the Department of Justice. 2. The parties agree that this payment is a full, final and complete settlement of this matter. 3. Payment shall be made by certified check or warrant payable to the "U.S. Department of Justice," and sent to: The United States Attorney's Office Room 817 Federal Building 231 West Lafayette Detroit, MI 48226 Attn: Carolyn Bell Harbin, AUSA 4. Payment is to be made by May 14, 1993. SETTLEMENT AGREEMENT2 ATTACHMENT TO SETTLEMENT AGREEMENT Case Mo. 8 14-CTA -177 Audit No. 05-3-209-03-3145 nt Disallowed in FD: $231,774 Current . nt at Issue: 478,2711 plus interest 26-23 15-05 26-23 15-10 26-23 15-27 26-23 15-48 26-23 15-32 26-23 15- 05 26-3315-22 26-33 15-3 2 Amou CLIENT'S COPY OFFICE OF ADMINISTRATIVE LAW JUDGES U.S. DEPARTMENT OF LABOR IN THE MAITER OF: OA ND COUNTY, MI 'GAN Case Nos.: 83-C1A-22 v. 84-CTA453 U.S. DEPAR ENT OF LABOR RD THIS CAUSE came on to be heard on this day on the grounds that the parties have entered into a Settlement Agreement on all issues remaining in these two cases. UPON IT APPEARING TO THE COURT that good cause for dismissal of these matters has been shown, it is therefore, ADJUDGED and ORDERED that these cases be and hereby are dismissed with prejudice. ENTERED this day of , 1993. JOHN M. VITTONE Deputy Chief Judge WE ASK FOR THIS: Charles G. Preston, Esquire Preston & Preston P.O. Box 820 9912-B Georgetown Pike, St. 205 Great Falls, VA 22066 Tel. (703) 759-3300 ORDER1 SEEN AND AGREED Steven E. Walanka, Esquire Office of the Solicitor U.S. Department of Labor 230 S. Dearborn Street, 8th Floor Chicago, 11 60604 Tel (313) 353-1143 ORDER2 S, the Grant Officer, based upon program audits, issued Final RFA WHE CLIENT'S COPY OFFICE OF ADMINISTRATIVE LAW JUDGES U.S. DEPARTMENT OF LABOR IN THE MA1TER OF: OAKLAND COUNTY, MICHIGAN Case Nos.: 83-CTA-22 v. 84-CIA-153 U.S. DEPARTMENT OF LABOR SEITLEMENT AGREEMENT This Settlement Agreement is entered into between the United States Department of Labor and Oakland County, Michigan in resolution of the above-referenced cases. WITNESSETH THAT: WHEREAS, the County of Oakland, Michigan (hereinafter "Grantee") and the United States Department of Labor (hereinafter "Department") entered into numerous grants (as listed in Attachment No. 1 to this Agreement) under the Comprehensive Employment and Training Act, of 1973, as amended, 29 U.S.C. Section 801 et seq., and Determinations, wherein it was determined that a total of $4,414,708 of expenditures were not allowable; and WHEREAS, the grantee appealed these Final Determinations and such were docketed as 83-CTA-22, and 84-CTA-153; and the Grant Officer, after reviewing additional documentation submitted, has allowed certain of the disallowed costs with the result that the total disallowed costs for the three aforementioned cases has been reduced to $2.983,386; and SETTLEMENT AGREEMENT" WHEREAS, the parties desire to settle all of the aforementioned matters, NOW THEREFORE, the parties do agree as follows - 1. The Department, having reviewed these matters, hereby determines that, consistent with law and policy, it is in the best interest of the Government to accept the Grantee's offer of $1,094,323,50 in full satisfaction of all outstanding matters related to the referenced cases, The Department agrees to accept payment in installments as follows: payments of $365,000 on January 31, 1994 and January 31, 1995, and a final payment of $364,323.50 on January 31, 1996. 3. The parties agree that this Settlement Agreement is a full, final and complete settlement of these matters. 4. Payment shall be made by certified check or warrant payable to the U.S Department of Labor and sent to: U.S. Department of Labor/ETA, Office of Grants and Contracts Management 200 Constitution Avenue, N.W. Washington, D.C. 20210 ATTN: JON JUNGJOHANN 5. Upon any breach of this Settlement Agreement on the part of the Grantee, the total amount of disallowed costs of $2,983,386, plus interest accrued from 30 days after execution of this Agreement, plus any applicable penalty, processing and handling fees, less payments to date, will be due for immediate payment. 6. Nothing in this Agreement shall prevent the Department from pursuing action under the Debt Collection Act, 31 U.S.C. Section 3701 et seq., 4 C.F.R. Section 101.1 et seq., SETTLEMENT AGREEMENT2 1 -0)I THE GRANTEE: SIGNATURE: TITLE: FOR THE DEPARTMENT: SIGNATURE: TITLE: SIGNATURE: Steven E. Walanka, Esquire and 29 C.F.R. Part 20, in the event that the Grantee fails to comply with the terms of this Settlement Agreement. 7. Each party hereby agrees to bear its own fees and other expenses incurred by such party in connection with any stage of this proceeding, 8. This Settlement Agreement is to be effective upon the signature of all parties. 9. Upon execution of the Settlement Agreement, the Grantee and the Department will jointly move to dismiss AU J Case Nos, 83-CTA-22 and 84-CTA-153, DATE: SIGNATURE: DATE: DATE: Charles G. Preston, Esquire Attorney for the Grantee Attorney for the Department DATE: SETTLEMENT AGREEMENT3 At t-a chine nt 1 and County, Hie big d by this Fiepvment Aervesaent Caae No. 83-CTA-22 Audit No. A059-80-00016 Amount 1 no . in F1): Current . •t at : 4'1,3 51,81 14 *223,177 26-8315-1 0 26-9315-21 26-9315-32 26-9315-145 26-5C5 3-60 26-9315-10 26-8315-13 26-8315-38 26-83 15-48 26-9315-60 26-14053-21 26-8315-32 26-9315-38 26-93 15-48 26-9315-(5 Case S3. 814-- ad -15 3 Audit No. A059-82-000333 Amount Disallowed in El): $3,062,89 14 Current I.4._runt at Issue: $2,760,209 26-5(53-10 26-1405 3-2 1 26-5(53-32 26-5 053-60 266053-1411 26-8315-10 26-9315-145 26-93 15-38 26-8315-148 26-83 15-3 2 26 -931 5-10 26-93 15-2 1 26-9315-148 26-93 15-3 2 26-9315-60 26-9315-05 26-0315-10 26-03 15-2 1 26-0315-48 26-03 15-3 2 26-0315-60 26-0315-05 26-1315-CS 26-1315-10 26-1315-21 26-13 15-32 26-13 15-38 26-1315-148 26-1315-60 26-1315-27 Resolution #93063 April 29, 1993 Moved by McCulloch supported by Wolf the resolution be adopted. AYES: Crake, Douglas, Garfield, Gosling, Huntoon, Jensen, Johnson, Kaczmar, Kingzett, McCulloch, McPherson, Miltner, Moffitt, Oaks, Obrecht, Palmer, Pernick, Powers, Price, Schmid, Taub, Wolf, Aaron. (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, 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 April 29, 1993 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 29th day of ApHi 1993. Lynn D. Allen, County Clerk