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HomeMy WebLinkAboutResolutions - 1996.12.12 - 24694REPORT (Misc. #96260) BY: Public Services Committee, Shelley Taub, Chairperson RE: MR 96260 ESTABLISHMENT OF CMH AUTHORITY IN OAKLAND COUNTY TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: The Public Services Committee, having reviewed the above- referenced resolution on December 10, 1996, reports with the recommendation that the resolution be adopted with the following amendment Page 5, second to last BE IT FURTHER RESOLVED paragraph-- change the word acceptance to approval. Chairperson, on behalf of the Public Services Committee, I move acceptance of the foregoing report. Suw44---7(;,,ID PUBLIC SERVICES COMMITTEE PUBLIC SERVICES COMMITTEE: YES-Taub, Huntoon, Moffitt, Amos NO -McPherson, Devine, Pernick FISCAL REPORT (M.R. #96260) BY: FINANCE AND PERSONNEL COMMITTEE, SUE ANN DOUGLAS, CHAIRPERSON IN RE: ESTABLISHMENT OF A COMMUNITY MENTAL HEALTH AUTHORITY IN OAKLAND COUNTY TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: The Finance and Personnel Committee, having reviewed the above referenced resolution, reports as follows: 1. Section 208 of the new Mental Health Code specifies the amount of match required of a county that has created a Community Mental Health Authority "...shall not exceed the amount of funds provided by the county as a county match in fiscal year 1994-1995 or the year the authority is created, whichever is greater." 2. The 1994-1995 Oakland County CMH Match was $9,620,616, excluding Title XX replacement monies. 3. Funds have been included in the Finance and Personnel Committee Recommended FY 1997 ($7,215,462 for 9 months) and FY 1997/1998 ($9,620,616) Budget to cover the required County Match under a CMH Authority, no additional appropriation is required. 4. The Finance and Personnel Committee further recommends the insertion of a comma in the fifth BE IT FURTHER RESOLVED paragraph, item b, between the words pension and seniority. Chairperson, on behalf of the Finance and Personnel Committee, I move acceptance of the foregoing report. FINANCE AND PERSONNEL COMMITTEE 12/5/96 December 12, 1996 REPORT (Misc. #96260) BY: IN RE: GENERAL GOVERNMENT COMMITTEE - KAY SCHMID, CHAIRPERSON M.R. #96260, ESTABLISHMENT OF A COMMUNITY MENTAL HEALTH AUTHORITY IN OAKLAND COUNTY TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS: Chairperson, Ladies and Gentlemen: The General Government Committee, having reviewed M.R. #96260 on December 2, 1996, reports with the recommendation that the resolution be adopted. Chairperson, on behalf of the General Government Committee, I move the acceptance of the foregoing Report. GENERAL GOVERNMENT COMMITTEE MISCELLANEOUS RESOLUTION #96260 BY: RUTH JOHNSON, COMMISSIONER DISTRICT 1,THOMAS LAW, COMMISSIONER DISTRICT 13, DAVID MOFFITT, COMMISSIONER DISTRICT 18, SHELLEY TAUB, COMMISSIONER DISTRICT 12 RE: ESTABLISHMENT OF A COMMUNITY MENTAL HEALTH AUTHORITY IN OAKLAND COUNTY To the Oakland County Board of Commissioners; Chairperson, Ladies and Gentlemen: WHEREAS the timely, appropriate, efficient and cost-effective delivery of community mental health services to the residents of Oakland County is a high priority for Oakland County Government; and WHEREAS the State of Michigan has proposed and is implementing dramatic changes in the way mental health services are funded, managed, and delivered to state residents; and WHEREAS Oakland County's Community Mental Health Agency Program and its beneficiaries would greatly benefit from a reorganization that will allow the Program maximum flexibility in designing, financing, planning for and implementing mental health service programs for Oakland County's residents; and WHEREAS Section 205 of the Michigan Mental Health Code, 1974 PA 258, as amended by 1995 PA 290, effective March 28, 1996, authorizes the County Board of Commissioners to establish a community mental health authority (CMH Authority) to operate as a community mental health services program; and WHEREAS this innovative form of organization was designed by the Legislature to provide community mental health programs with maximum flexibility in designing, financing, planning for and implementing mental health service programs; and WHEREAS a CMH Authority would possess all of the powers and duties currently possessed by Oakland County's Community Mental Health Agency Program; and WHEREAS a CMH Authority, as a legal public governmental entity separate from the county that establishes it, would possess additional powers not enjoyed by the existing CMH agency, including but not limited to powers to fix and collect charges, rates, rents, fees, and other charges; the power to collect interest; the power to transfer, divide, or distribute assets, liabilities and contingent liabilities; the power to accept gifts, grants, or bequests and to determine the manner of their use; the power, in its own name, to enter into contracts and agreements, employ staff, acquire, construct, manage, maintain, or operate buildings or improvements, the power to acquire, own, operate, maintain, lease, or sell real or personal property; the power to incur debts, 1 liabilities, or obligations that are not the debts, liabilities or obligations of the county; the power to commence litigation and defend itself in litigation, and the power to invest funds; and WHEREAS a CMH Authority would be responsible for all of its own executive administration, employees, personnel administration, finance, accounting, and management information system functions, and is authorized to discharge these responsibilities through direct staff or by contracting for services; and WHEREAS a CMH Authority could not levy any type of tax or issue any type of bond in its own name or financially obligate any unit of government other than itself; and WHEREAS Oakland County, after creating a CMH Authority, would not be liable for any intentional, negligent, or grossly negligent act or omission, for any financial affairs, or for any obligation of the CMH Authority, its board, employees, representatives, or agents; and WHEREAS consistent with the Michigan Mental Health Code, under the CMH Authority form of organization, CMH consumers continue to possess the same rights, privileges and benefits with respect to CMH operations and services as they enjoy under the current CMH agency form of organization, including membership on the CMH Board; and WHEREAS under the CMH Authority form of organization the Board of Commissioners continues to have a statutory duty to appoint CMH Board members and to consider for approval the CMH Authority's annual request for county funds to support the CMH program, thereby continuing to maintain a meaningful oversight role with respect to the provision of CMH services in Oakland County; and WHEREAS the public's right to be informed of and participate in the affairs of the CMH Authority continues to be protected by the Open Meetings Act and Freedom of Information Act, both of which are binding on CMH Authorities; and WHEREAS the Board of Commissioners' Task Force on Mental Health has determined that the establishment of a Community Mental Health Authority in Oakland County would be in the best interests of the residents. WHEREAS as a condition precedent to this resolution becoming effective, the Board of commissioners shall adopt a transition plan. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby establishes an Oakland County Community Mental Health Authority (AUTHORITY). BE IT FURTHER RESOLVED that the purpose and power to be exercised by the AUTHORITY shall be to comply with and carry out 2 the provisions of the Michigan Mental Health Code, 1974 PA 258, as amended; BE IT FURTHER RESOLVED that the AUTHORITY shall exist in perpetuity, unless otherwise dissolved or terminated by either: a. Legislative enactment by the Legislature of the State of Michigan; or b. Upon recommendation from the County Executive and a resolution of the Oakland County Board of Commissioners, adopted by a majority of those elected and serving, after the Board of Commissioners have first notified the State of Michigan of their intent to terminate participation in a community mental health services program in the manner provided in section 220 of the Mental Health Code, 1974 PA 258, as amended; BE IT FURTHER RESOLVED that in the event of the termination or dissolution of the AUTHORITY, the net financial assets originally made available to the AUTHORITY by Oakland County shall be returned to Oakland County by 12:00 noon on the business day immediately prior to the date the termination or dissolution is to become effective. All other remaining assets net of liabilities shall be transferred to the community health services program or programs that replace the AUTHORITY. BE IT FURTHER RESOLVED that the AUTHORITY shall remain liable, until fully satisfied, for all costs associated with real or personal property purchased or leased by the County of Oakland for use by the AUTHORITY. The County may agree to a transfer to a successor community mental health services program or programs of the AUTHORITY'S liability for such costs upon the condition that such agreement be in writing and assures that financial liability to the County of Oakland will be fully discharged by the successor program or programs. BE IT FURTHER RESOLVED that all existing Oakland County Community Mental Health Agency Program employees are, upon the effective date of this resolution, separated from County service and transferred to the AUTHORITY, subject to the following conditions: a. Employees of the AUTHORITY are public employees. The AUTHORITY and its employees are subject to Act 366 of the Public Acts of 1947, being sections 423.201 to 423.217 of the Michigan Compiled Laws. Employees of the AUTHORITY are not County employees. The AUTHORITY is the employer with regard to all laws pertaining to employee and employer rights, benefits and responsibilities. 3 • b. All existing Oakland County Community Mental Health Agency Program employees are transferred to the AUTHORITY and appointed as employees subject to all rights and benefits for 1 year. Such employees of the new AUTHORITY shall not be placed in a worse position by reason of the transfer for a period of 1 year with respect to worker's compensation, pension seniority, wages, sick leave, vacation, health and welfare insurance, or any other benefit the employees enjoy as an employee of the former Oakland County Community Mental Health Agency Program. Such employees who are transferred shall not by reason of the transfer have their accrued pension benefits or credits diminished. c. The AUTHORITY shall assume and be bound by all existing collective bargaining agreements between the County of Oakland and employees of the Oakland County Community Mental Health Agency Program who are transferred to the AUTHORITY . Formation of the AUTHORITY shall not adversely affect any existing rights and obligations contained in such existing collective bargaining agreements. d. The AUTHORITY, subject to subsections (a) to (c) above, shall employ, compensate, transfer or separate necessary AUTHORITY personnel in a manner consistent with law and policies, procedures, regulations and collective bargaining agreements established or adopted by the AUTHORITY Board. BE IT FURTHER RESOLVED that upon the effective date of the establishment of the AUTHORITY all existing assets, debts, and obligations of the Oakland County Community Mental Health Agency Program, including but not limited to equipment, furnishings, supplies, cash, and other personal property, are hereby transferred to the new AUTHORITY. The AUTHORITY shall indemnify and hold harmless the County from any and all liability in regard thereto. Assets, equipment, furnishings, supplies, cash and other personal property which are the property of the County of Oakland and are being used by the Oakland County Community Mental Health Agency Program shall be transferred to the OCCMHA upon the County receiving credit from the AUTHORITY and State of Michigan for the fair market value of said property, said credit be attributed to the County's contribution to the annual operating budget of the AUTHORITY. BE IT FURTHER RESOLVED that all contracts regarding mental health services will be transferred to the AUTHORITY. The AUTHORITY, where possible, shall obtain a novation of these 4 contracts. BE IT FURTHER RESOLVED that in addition to other powers of a community mental health services program as set forth in the Mental Health Code, 1974 PA 258, as amended, the AUTHORITY has all of the following powers: (1) To fix and collect charges, rates, rents, fees or other charges and to collect interest. (2) To make purchases and contracts. (3) To transfer, divide, or distribute assets, liabilities or contingent liabilities. (4) To accept gifts, grants, or bequests and determine the manner in which those gifts, grants or bequests may be used consistent with the donor's request. (5) To acquire, own, operate, maintain, lease or sell real or personal property, including the power to determine the location of property purchased, leased, and\or operated. Before taking official action to sell residential property, however, the AUTHORITY shall implement a plan for alternative housing arrangements, subject to the requirements of MCL 330.1205(4)(e)(ii)&(iii). (6) Enter into contracts and agreements in the AUTHORITY'S name. (7) Employ staff in the AUTHORITY'S name. (8) Acquire, construct, manage, maintain, or operate buildings or improvements in the AUTHORITY'S name. (9) Acquire, own, operate, maintain, lease or dispose of real or personal property in the AUTHORITY'S name. (10) Incur debts, liabilities, or obligations in the AUTHORITY'S name that do not constitute the debts, liabilities, or obligations of Oakland County. (11) Commence litigation and defend itself in litigation. (12) To receive and expend funds for the purposes of the mental health AUTHORITY. (13) To invest funds in accordance with statutes regarding investments. (14) To set up reserve accounts, utilizing state funds in the same proportion that state funds relate to all revenue sources, to cover vested employee benefits including but not limited to accrued vacation, health benefits, the employee payout portion of accrued sick leave, if any, and worker's compensation. In addition, the AUTHORITY may set up reserve accounts for depreciation of capital assets and for expected future expenditures for an organizational retirement plan. 5 (15) To develop a charge schedule for services provided to the public and utilize the charge schedule for first and third-party payers. Charge schedule may include charges that are higher than cost for some service units by spreading nonrevenue service unit costs to revenue- producing service unit costs with total charges not exceeding total costs. All revenue over cost generated in this manner shall be utilized to provide services to priority populations. (16) To determine the method and extent to which the AUTHORITY secures and maintains insurances, including but not limited to self-insurance and re-insurance. BE IT FURTHER RESOLVED that, in addition to the powers and duties set forth above, the AUTHORITY, its board members, officers, agents, and employees, shall have all the powers and duties, privileges and immunities from liability and exemptions from laws, ordinances, and rules that under Michigan law, including but not limited to the Mental Health Code, 1974 PA 258, as amended, are granted community mental health authorities, agencies, organizations and programs, their board members, officers, administrators, agents, employees and county elected officials and employees; BE IT FURTHER RESOLVED that in addition to other duties and responsibilities of the AUTHORITY as set forth in the Mental Health Code, the AUTHORITY shall do all of the following: (1) Provide Oakland County and the Department a copy of an annual independent audit performed by a Certified Public Accountant in accordance with Governmental Auditing Standards issued by the Comptroller of the United States. (2) Be responsible for all executive administration, personnel administration, finance, accounting and management information systems functions. The AUTHORITY may discharge the responsibility through direct staff or by contracting for services. BE IT FURTHER RESOLVED that, to the extent required by law, the AUTHORITY, as a public governmental body, is subject to the Open Meetings Act, 1976 PA 267, as amended, and the Freedom of Information Act, 1976 PA 442, as amended, except for those documents produced as part of the Peer Review Process required in Section 143a and made confidential by Section 748(9) of the Mental Health Code. BE IT FURTHER RESOLVED that it is recommended the Community Mental Health Authority Articles of Incorporation include a requirement that performance audits be conducted. 6 Thomas Law lcwk Shelley Tau David Moffitt BE IT FURTHER RESOLVED that all powers, duties, obligations, rights and protections not mentioned herein but otherwise provided by law for community mental health authorities or programs are included herein by reference. BE IT FURTHER RESOLVED that Oakland County is not liable for any intentional, negligent or grossly negligent act or omission, for any financial affairs, or for any obligation of the AUTHORITY, its board, officers, employees, contractors, subcontractors, representatives, or agents. BE IT FURTHER RESOLVED that if any portion of this resolution is found by a court to conflict with the Mental Health Code, 1974 PA 258, as amended, the Code supersedes the conflicting provision. If any portion of this resolution or the application thereof to any person or circumstances shall be found to be invalid by a court, such invalidity shall not affect the remaining portions or applications of the resolution which can be given effect without the invalid portion or application, provided such remaining portions are not determined by the court to be inoperable, and to this end resolutions are declared to be severable. BE IT FURTHER RESOLVED that this resolution is not effective until the receipt and acceptance of a transition plan by the Oakland County Board of Commissioners, the resolution is filed with the Secretary of State and Oakland County Clerk, and until receipt of Certification from the Michigan Department of Community Health. The existing Oakland County Community Mental Health Agency Program is dissolved upon effective date of establishment of the AUTHORITY. BE IT FURTHER RESOLVED that the Oakland County Clerk is directed to maintain a copy of this resolution in the Clerk's files and is to immediately file a copy of this resolution with the Secretary of State. Chairperson we move the adoption of the foregoing resolution. Ruth John/son 7 Resolution #96260 November 7, 1996 The Chairperson referred the resolution to the Public Services Committee, General Government Committee and the Finance and Personnel Committee. There were no objections. Resolution #96260 December 12, 1996 Moved by Taub supported by Crake the Finance and Personnel Committee Report be accepted. A sufficient majority having voted therefor, the report was accepted. Moved by Taub supported by Crake the Public Services Committee Report be accepted. A sufficient majority having voted therefor, the report was accepted. Moved by Taub supported by Crake the General Government Committee Report be accepted. A sufficient majority having voted therefor, the report was accepted. Moved by Taub supported by Crake the resolution be adopted. Moved by Taub supported by Crake the resolution be amended to coincide with the recommendation in the Public Services Committee Report. A sufficient majority having voted therefor, the amendment carried. Discussion followed. Moved by Moffitt supported by Powers the resolution be amended to add an additional BE IT FURTHER RESOLVED paragraph before the last BE IT FURTHER RESOLVED paragraph to read as follows: BE IT FURTHER RESOLVED that upon the effective date of this resolution as referenced in the immediately preceding paragraph the Community Mental Health Agency shall cease to exist, and the Board of Commissioners shall appoint a Board of Directors of the Community Mental Health Authority as provided by law. Resolution #96260 continued December 12, 1996 Vote on amendment: A sufficient majority having voted therefor, the amendment carried. Discussion followed. Vote on resolution, as amended: AYES: Dingeldey, Douglas, Garfield, Huntoon, Jensen, Johnson, McCulloch, Obrecht, Palmer, Powers, Schmid, Taub, Wolf, Amos, Crake. (15) NAYS: Devine, Holbert, Jacobs, Kaczmar, Kingzett, Law, McPherson, Moffitt, Pernick, Quarles. (10) A sufficient majority having voted therefor, the resolution, as amended, 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 December 12, 1996 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 1 County of Oakland at Pontiac, Michigan this 12th day of Decemb 996. ...,...___„..... LynA"D. Allen, County Clerk