HomeMy WebLinkAboutResolutions - 2020.12.07 - 33985REPORT (MISC. #20582) December 7, 2020
BY: Commissioner Helaine Zack, Chairperson, Finance and Infrastructure Committee
IN RE: MR #20582 — BOARD OF COMMISSIONERS — AUTHORIZATION OF A FORENSIC AUDIT OF
MANAGEMENT OF COUNTY PROPERTY TAX FORECLOSURES
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
The Finance and Infrastructure Committee, having reviewed the above -referenced resolution on
December 2, 2020, reports to recommend adoption of the resolution with the following amendment(s):
Amend the 3rd BE IT FURTHER RESOLVED paragraph, as follows:
BE IT FURTHER RESOLVED the findings if of the audit shall be provided to the Claims Review
Committee the Special Committee to IRV86tigaFe the County Treasurer's Management of
Audit Committee and the Finance and Infrastructure Committee.
Chairperson, on behalf of the Finance and Infrastructure Committee, I move the acceptance of the
foregoing report.
Commissioner Helaine
Zack, District #18
Chairperson, Finance
and Infrastructure
Committee
FINANCE AND INFRASTRUCTURE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote.
MISCELLANEOUS RESOLUTION #20582
BY: Commissioner Helaine Zack, District #18
IN RE: BOARD OF COMMISSIONERS — AUTHORIZATION OF A FORENSIC AUDIT OF
MANAGEMENT OF COUNTY PROPERTY TAX FORECLOSURES
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the Michigan Supreme Court issued a unanimous ruling in the Rafaeli, LLC and Andre
Ohanessian v Oakland County and Andrew Meisner case declaring the County Treasurer's action was
unconstitutional when the County Treasurer foreclosed on Mr. Rafaeli's property for $8.41, selling the
property at auction, and retaining all the proceeds in excess of taxes, interest, penalties, fees, and costs;
and
WHEREAS the Michigan Supreme Court's ruling has declared the practice of collecting surplus proceeds
from the sale of foreclosed properties without compensating the former property owners as unconstitutional
under Michigan's Takings Clause; and
WHEREAS this decision suggests that a former property owner whose properties were sold at a tax -
foreclosure sale for more than the amount owed in unpaid taxes, interest, penalties, and fees may have a
cause of action to seek recoupment of that surplus from the County of Oakland; and
WHEREAS it is in the best interest of Oakland County to conduct a forensic audit of the tax foreclosures
and sales by the Oakland County Treasurer's Office between 2009 and 2019 to:
a) Provide assurance that the Treasurer's Office foreclosure and auction records are complete and in
a format that ensures the Treasurer's Office can fully and accurately respond to any court orders
for production of the records.
b) Provide assurance that the Oakland County Treasurer's Office acted in accordance with the
requirements of Public Act 206 of 1893, as amended (MCL 211.1 et seq.), the General Property
Tax Act (GPTA), identify any control weaknesses and recommend process improvements.
c) Provide an estimate of Oakland County's potential liability, by year, due to the Michigan Supreme
Court's ruling, and identify any barriers to returning surplus proceeds.
d) Provide data that will inform policy making, such as the number of properties that were foreclosed
with delinquent taxes less than $1,000, the number of vacant land/lots foreclosed versus those with
a structure, etc.; and
WHEREAS the Oakland County Board of Commissioners has established the Special Committee to
Investigate the County Treasurer's Management of Property Tax Foreclosures ("Foreclosure Committee")
to perform an internal review of the County Treasurer's statutory requirements of the General Property Tax
Act, P.A. 206 of 1893 and the tax foreclosure practices currently implemented by the Treasurer's Office;
and
WHEREAS the Foreclosure Committee formally requested that the County Executive's Administration
prepare and issue a Request for Proposals for the conduct of a forensic audit of the tax foreclosures and
sales by the Oakland County Treasurer's Office between 2009 and 2019; and
WHEREAS the bid evaluation has reviewed the responses and recommended the award of a contract to
Grassi and Co., CPAs for an amount not to exceed $937,500; and
WHEREAS as a finalized contractual agreement has been distributed to the Board of Commissioners.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners concurs with the
recommendation of the Special Committee to Investigate the County Treasurer's Management of Property
Tax Foreclosures that forensic audit of the tax foreclosure and sales by the Oakland County Treasurer's
Office is in the best interest of Oakland County.
BE IT FURTHER RESOLVED that the Board of Commissioners authorizes the expenditure of an amount
not to exceed $937,500 to conduct a forensic audit of the County's tax foreclosures between 2009 and
2019.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners authorizes the execution
of the contract for services with Grassi and Co, CPAs PC to conduct the forensic audit under the direction
of the Board of Commissioners.
BE IT FURTHER RESOLVED the findings if the audit shall be provided to the Claims Review Committee,
the Special Committee to Investigate the County Treasurer's Management of Property Tax Foreclosures
and the Finance and Infrastructure Committee.
BE IT FURTHER RESOLVED that the $937,500 be appropriated from the General Fund Assigned Fund
Balance titled Catastrophic Claims (GL Account #383345).
BE IT FURTHER RESOLVED the FY 2021 budget be amended as follows
GENERAL FUND (#10100)
FY 2021
Revenue
9010101-196030-665882
Planned Use of Balance
$937,500
Total Revenues
937 50
Exoenditures
5010101-180010-731437
Professional Svcs -Auditing Services
$937,500
Total Expenditures
937
Chairperson, I move the adoption of the foregoing resolution
1 ,�.e/.
Commissioner Helaine Zack
District #18
Resolution #20582
November 19, 2020
Moved by Zack seconded by Nelson to suspend the rules and vote on Miscellaneous Resolution #20582 —
Board of Commissioners — Authorization of a Forensic Audit of Management of County Property Tax
Foreclosures.
A sufficient majority having voted in favor, the motion to suspend the rules and vote on Miscellaneous
Resolution #25082 — Board of Commissioners --Authorization of a Forensic Audit of Management of County
Property Tax Foreclosures carried.
Moved by Zack seconded by Nelson the resolution be adopted.
Discussion followed.
Moved by Kochenderfer seconded by Hoffman the resolution be referred to the Finance and Infrastructure
Committee.
Discussion followed.
Vote on motion to refer:
AYES: Long, Luebs, Markham, McGillivray, Middleton, Miller, Nelson, Powell, Quarles, Taub,
Weipert, Woodward, Zack, Gershenson, Gingell, Hoffman, Jackson, Kochenderfer, Kowall,
Kuhn. (20)
NAYS: Spisz. (1)
A sufficient majority having voted in favor, the resolution was referred to the Finance and Infrastructure
Committee. There were no objections.
Resolution #20582 December 7, 2020
Moved by Zack seconded by Quarles the resolution be adopted.
Discussion followed.
Vote on resolution:
AYES: Jackson, Kowall, Long, Luebs, Markham, McGillivray, Miller, Nelson, Powell, Quarles,
Woodward, Zack, Gershenson, Gingell. (14)
NAYS: Hoffman, Kochenderfer, Kuhn, Middleton, Spisz, Taub, Weipert. (7)
A sufficient majority having voted in favor, the resolution was adopted.
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1 N ..,,t A7?ROVETH�S RIESOLU T ION
CHIEF DENY COUNTY EXECUTIVE
A;CiING P`_IRSUANT TO MUL 45.559A (7)
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown, 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 7,
2020, 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 Circuit Court at Pontiac,
Michigan this 7th day of December, 2020.
Lisa Brown, Oakland County
