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HomeMy WebLinkAboutResolutions - 2000.08.24 - 25943August 24, 2000 REPORT (Misc. #00211) BY: Personnel Committee, Thomas A. Law, Chairperson RE: SHERIFF DEPARTMENT — CREATION OF AVIATION UNIT To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: The Personnel Committee having reviewed the above-mentioned resolution on August 16, 2000, recommends to the Oakland County Board of Commissioners the resolution be amended and adopted as follows: In the first BE IT FURTHER RESOLVED paragraph; change the word "created" to requested. Chairperson, on behalf of the Personnel Committee, I move the acceptance of the foregoing report. PERSONNEL COMMITTEE Personnel Committee Vote: Motion carried on unanimous roll call vote with Moffitt and Buckley absent REPORT (Misc. #00211) August 24, 2000 BY: Finance Committee, Sue Ann Douglas, Chairperson IN RE: SHERIFF DEPARTMENT - CREATION OF AVIATION UNIT To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: The Finance Committee, having reviewed the above referenced resolution on August 17, 2000, reports with the recommendation that the resolution be adopted with the sixth WHEREAS amended to strike the words nand most affluent." Chairperson, on behalf of the Finance Committee, I move acceptance of the foregoing report. FINANCE COMMITTEE FINANCE COMMITTEE VOTE: Motion carried on a roll call vote with Coleman and Friedman Appel voting no. MISCELLANEOUS RESOLUTION #00211 August 24, 2000 BY: Public Services Committee, Frank H. Millard, Chairperson IN RE: SHERIFF DEPARTMENT — CREATION OF AVIATION UNIT To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS the Sheriff is requesting the creation of an Aviation Unit within the Patrol Services Division, of the Sheriff's Department; and WHEREAS the Oakland County Chiefs of Police Association has endorsed the proposal of having an Aviation Unit in the Sheriff's Department; and WHEREAS Oakland County's Business Round Table through its Quality of Life Committee, fully supports a helicopter in Oakland County and has made this a priority for Law Enforcement the last two years; and WHEREAS the Sheriff's Department is the largest law enforcement agency in Oakland County and placing an Aviation Unit in the Sheriff's Department is a reasonable expectation; and WHEREAS an Aviation Unit, working in conjunction with ground patrol units, can be effective in a variety of situations, including but not limited to: 1. Covering large areas quickly and coordinating ground units from above. Ground units can be more effectively positioned from the air, thus reducing the number of units necessary to secure a scene. Acting as an aerial command platform in the event of a major incident. Overseeing crowd control of major events, such as the Woodward Dream Cruise, or during major disturbances. 2. Situational ground searches including looking for criminal suspects and lost children. 3. Conducting routine and preventive patrol over commercial, residential, and retail shopping areas especially at night. Allow a greater number of building checks to be done in a shorter period of time, freeing up the ground patrol units for other duties. 4. Keeping fleeing cars in view so that pursuing police vehicles can slow down and follow from a distance. It is impossible to escape in a ground vehicle once spotted by a helicopter. This avoids the high speed pursuit with it's resulting accidents and injuries. WHEREAS the time has come for an Aviation Unit for Oakland County, as one of the largest and most affluent counties in the State of Michigan, and the United States; and WHEREAS law enforcement in Oakland County would be greatly enhanced with the addition of an Aviation Unit to assist all law enforcement agencies within this jurisdiction; and WHEREAS the Unit will operate with the purchase of one (1) helicopter, operating costs and the creation of two (2) new positions the first year; and WHEREAS after the first year of operation and analysis, the purchase of a second helicopter and the addition of two (2) more staff will be necessary to maintain and operate an aviation unit within the Sheriff's Department; and WHEREAS the Sheriff is proposing that the funding for this proposal come from the estimated savings of the privatization of the Food Service Operations within the Oakland County Sheriff's Department. PUBLIC SERVICES COMMITTEE: Motion carried unanimously on a roll call vote with Schmid absent. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners authorizes the creation of an Aviation Unit in the Patrol Services Division of the Oakland County Sheriff's Department. BE IT FURTHER RESOLVED that the purchase of one (1) helicopter and operating costs be included within this unit, with the understanding that an additional helicopter and staff will be created at a later date. BE IT FURTHER RESOLVED that one (1) GF/GP Sergeant position and one (1) GF/GP Deputy II position be created in the Aviation Unit, Patrol Services Division, Sheriff Department. Chairperson, on behalf of the Public Services Committee, I movVthe adoption of the foregoing resolution. Public Services Committee OAKLAND COUNTY SHERIFF DEPARTMENT AVIATION UNIT PROPOSAL June 6, 2000 Capital Costs Operating Costs: $1,900,000 (Borrow funds from County Deliquent Tax funds or Lease arrangement over a 7 year period) Salaries $92,100 (Sergeant and Deputy II @ one yr. Step) Fringe Benefits $35,919 (Fringes @ 39%) Uniforms $844 Deputy Supplies $822 Helicopter Uniform items $2,500 Equipment rental $360 (pager rental) Fuel $40,000 Insurance $100,000 Equip Repairs and Maint $110,000 Expendable Equip $30,000 Total for annual Operating costs $412,545 Payment on loan (est) $330,000 Cost for first year $712,545 Cost for second year $759,047 Cost for third year $1,552,418 (includes purchase of second helicopter, staff and operations plus inflation) Savings per year from Food Serv. $1,653,454 FISCAL NOTE (Rise, #00211) August 24, 2000 BY: FINANCE COMMITTEE, SUE ANN DOUGLAS, CHAIRPERSON IN RE: SHERIFF DEPARTMENT - CREATION OF AVIATION UNIT TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed the above named Miscellaneous Resolution and finds: 1. The Sheriff Department wishes to create and Aviation Unit in the Patrol Services Division. To account for this initiative, a new internal service fund will be established entitled Sheriff Aviation. 2. A $3.8 million loan from the Delinquent Tax Revolving Fund (DTRF) will cover the acquisition costs of the two (2) fully equipped helicopters, $1.9 million to be drawn down in FY 2001 for the first helicopter and an additional $1.9 million, which may be drawn down in FY 2002 for the second helicopter, if provided by the Board of Commissioners. The loan will be repaid over an eight (8) year timeframe with an interest rate (approximately 61s) computed per the attached loan agreement. 3. Principal, interest on the loan and operating costs will be derived from a General Fund Non-Departmental Appropriation created by Misc. Resolution #00163 and resulting from estimated Sheriff Department savings through privatization of food services at the Jail ($1,693,720 in FY 2001, $1,638,532 in FY 2002, and approximately $1.6 million per year thereafter). 4. The recommended budget amendments provide for sufficient funding to the Sheriff Aviation Internal Service Fund for replacement of the helicopters after ten (10) years of service without additional borrowing. 5. The County's Risk Management division has indicated that an outside insurance policy would cost between $95,000 and $114,000 annually per helicopter. A second helicopter could result in a slightly reduced insurance cost per helicopter. 6. The Sheriff Department has indicated that the county can secure a. long-term commitment from a commercial entity for facility use by both helicopters and office space for the Aviation Unit. Therefore the Financial Projection reflects both an estimated contribution and cost ($40,000) for subject facility. 7. The County Executive recommendation is predicated on a letter of understanding that includes a cap on Sheriff Department overtime in FY 2001 and succeeding years. 8. An hourly rate (approximately $1,400/hr.) has been established for charging other Departments or Agencies for Aviation Services as determined by the Sheriff. 9. For the new internal services operation, two (2) positions will be created on Oct. 1, 2000, one (1) Sergeant and one (1) Deputy II. An additional Sergeant and Deputy II position will be created Oct. 1, 2001 if recommended at that time. 10. Personnel and operational costs of $786,679 for FY 2201 and $1,387,990 for FY 2002 will require budget amendments that will be included in the revised County Executive's Recommended Budget and are consistent with the attached five-year projection. FINANCE COMMITTEE: Motion carried unanimously on a roll call vote. 11. Training is estimated to cost $8,000 per pilot; such funds should be available from State training sources. Should the county be unsuccessful in securing State funding, the training costs would have to be borne by the Sheriff Aviation Internal Services Fund. 12. For informational purposes only, the recommended budget amendments for FY 2001 and FY 2002 are illustrated below. REVENUE OVER/(UNDER)EXPENSES FUND DEPT OCA PCA Revenue 680 43 336680 34300 680 43 136680 34300 Training Grant 272 43 280900 34300 TOTAL REVENUE Expenses 680 43 236680 34300 680 43 236680 34300 680 43 236680 34300 680 43 236680 34300 680 43 236680 34300 680 43 236680 34300 680 43 236680 34300 680 43 236680 34300 680 43 236680 34300 680 43 236680 34300 680 43 236680 34300 680 43 236680 34300 680 43 236680 34300 680 43 236680 34300 680 43 236680 34300 Training Grant 272 43 280901 34300 TOTAL EXPENSES OBJ TITLE 1701 Transfer In-Gen. Fund 1505 Investment Income 0413 Criminal Justice Trng Salaries Fringe Benefits Overtime Uniform Replacement Shop Supplies Helicopter Uniforms Equipment Rental Helicopter Fuel Insurance Fund Equip Repair & Maint Expendable Equip Interest Expense Depreciation Telephone Comm Office Supplies 3704 Training FY 2001 $1,693,720 0 16,000 $1,709,720 $ 129,000 45,750 10,900 844 825 2,500 360 40,000 100,000 110,000 35,000 • 114,000 140,000 1,000 500 16,000 $ 746,679 $ 963,041 FY 2002 $1,638,532 24,946 16,000 $1,679,478 $ 258,000 91,500 15,000 875 860 2,500 400 80,000 190,000 200,000 32,000 179,130 280,000 1,200 525 16,000 $1,347,990 $ 331,488 2001 2074 2002 3784 4308 3784 2760 =0c 6677 2776 4100 3965 3900 6675 4252 FINANCE COMMITTEE Beginning Equity Assets: Cash/Investments Helicopter-Acquisition Accumulated Depreciation Helicopter-Net Book Value Total Assets BALANCE SHEET FY2001 FY2002 FY2003 $963,041 $1,294,529 Refer. B $831,541 C 1,900,000 C (140,000) $1,760,000 $2,591,541 $900,029 $932,325 3,800,000 3,800,000 (420,000) (700,000) $3,380,000 $3,100,000 $4,280,029 $4,032,325 $331,488 $295,296 $301,425 $306,383 $1,294,529 $1,589,825 $1,891,250 $2,197,632 OAKLAND COUNTY, MICHIGAN AVIATION UNIT - FINANCIAL PROJECTION July 31, 2000 FY2004 $1,589,825 $970,750 3,800,000 (980,000) $2,820,000 $3,790,750 FY2005 $1,891,250 $1,014,132 3,800,000 (1,260,000) $2,540,000 $3,554,132 Liabilities/Equity: Note - DTRF D $1,628,500 Equity 963,041 Total LiabilitieslEquity $2,591,541 $2,985,500 $2,442,500 $1,899,500 $1,356,500 1,294,529 1 589 825 1,891 250 2 197 632 $4,280,029 $4,032,325 $3,790,750 $3,554,132 E $1,693,720 0 40,000 16,000 $1,749,720 Revenue: General Fund Contribution Investment Income Facilities Contribution Training - 302 Funds Total Revenue Operating Expenses: Salaries Fringe Benefits Overtime Uniforms General Supplies Helicopter Uniform Supplies Equipment Rental Fuel Insurance Repair & Maintenance Expendable Equipment Interest Depreciation Telephone Office Supplies Facilities Rental Training Total Operating Expenses Net Income Ending Equity $129,000 45,750 10,900 844 825 2,500 360 40,000 100,000 110,000 35,000 114,000 140,000 1,000 500 40,000 16.000 $786,679 $963,041 $963,041 OPERATIONS $1,638,532 24,946 40,000 16,000 $1,719,478 $258,000 91,500 15,000 875 860 2,500 400 80,000 190,000 200,000 32,000 179,130 280,000 1,200 525 40,000 16,000 $1,387,990 $1,600,000 27,001 40,000 8,000 $1,675,001 $265,750 94,250 16,000 900 880 1,000 425 85,000 200,000 205,000 34,000 146,550 280,000 1,400 550 40,000 8,000 $1,379,705 $1,600,000 27,970 42,000 8,000 $1,677,970 $273,700 97,100 16,000 925 900 1,000 450 90,000 205,000 210,000 36,000 113,370 280,000 1,500 600 42,000 8.000 $1,376,545 $1,600,000 29,123 42,000 8,000 $1,679,123 $281,900 100,000 16,000 950 925 1,000 475 95,000 210,000 215,000 38,000 81,390 280,000 1,500 600 42,000 8,000 $1,372,740 Hours of Operation 700 1,400 1,400 1,400 1.400 Refer. FY2001 FY2002 FY2003 FY2004 FY2005 Cost Recovery: Operating Expenses Principal Total Cost Recovery $786,679 D 271,500 $1,058,179 $1,387,990 $1,379,705 $1,376,545 $1,372,740 543,000 543,000 543,000 543M00 $1,930,990 $1,922,705 $1,919,545 $1,915,740 Cost/Hour of Operation N $1,512 $1,379 $1,373 $1,371 $1,368 REVOLVING FUND BORROWING AGREEMENT WHEREAS the County of Oakland is desirous of borrowing monies from the Oakland County Delinquent Tax Revolving Fund, and WHEREAS the Delinquent Tax Revolving Fund Agent has determined sufficient monies are available to loan to the County. THEREFORE, in consideration of agreements set forth below it is hereby agreed by and between the parties as follows: The County will borrow the principal sum of $3,800,000 from the Delinquent Tax Revolving Fund for the purpose of acquiring two (2) helicopters for the newly created Aviation Unit in the Sheriff's Department, $1,900,000 drawn down in FY2001 and $1,900,000 drawn down in FY2002; such funds to be paid back in annual principal and interest payments not to exceed eight (8) years. Said payments shall be deducted from the annual Delinquent Tax Revolving Fund distribution made to the County on or about June 1 st of each year. Interest on each payment will be based on the average monthly rate paid during the term of this agreement by the agent of the Delinquent Tax Revolving Fund for that year's estimated borrowing. The Schedule of principal payments will be: Year Principal 1 $ 271,500 2 543,000 3 543,000 4 543,000 5 543,000 6 543,000 7 543,000 8 270,500 Total $ 3,800,000 AGENT FOR REVOLVING FUND BOARD OF COMMISSIONERS Date Date 11•11•=1•10....... 11111011011011W ORFOrT\I( RESOU° vc, HFrarr.lAUPOY L. Brooks Patter Resolution #00211 August 24, 2000 Moved by Millard supported by McPherson the Personnel and Finance Committee Reports be accepted. A sufficient majority having voted therefor, the reports were accepted. Moved by Millard supported by McPherson the resolution be adopted. Moved by Millard supported by McPherson the resolution be amended to coincide with the recommendations in the Personnel and Finance Committee Reports. A sufficient majority having voted therefor, the amendment carried. Vote on resolution, as amended: AYES: Galloway, Garfield, Gregory, Jensen, McCulloch, McPherson, Melton, Millard, Moffitt, Obrecht, Palmer, Patterson, Sever, Suarez, Taub, Amos, Appel, Buckley, Causey-Mitchell, Colasanti, Coleman, Dingeldey, Douglas. (23) NAYS: None. (0) A sufficient majority having voted therefor, the resolution, as amended, was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND) I, G. William Caddell, 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 August 24, 2000 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 21;h day,of August, 2000. G. William Caddell, County Clerk