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HomeMy WebLinkAboutMinutes - 2001.06.21 - 35641SUE ANN DOUGLAS Chairperson NANCY DINGELDEY Vice Chairperson BRENDA CAUSEY-MITCHELL Minority Vice Chairperson June 21, 2001 The meeting of the Finance Committee was called to order at 9:05 a.m. by Chairperson Douglas in Committee Room A, Commissioners= Wing, County Service Center, Pontiac, Michigan. COMMITTEE MEMBERS PRESENT: Sue Douglas, Nancy Dingeldey, Charles Palmer, Fran Amos, William Patterson, Chuck Moss, Brenda Causey-Mitchell. COMMITTEE MEMBERS ABSENT WITH NOTICE: Shelley Taub, Michelle Friedman Appel, Tim Melton. OTHERS PRESENT: COMMUNITY & HOME IMPROVEMENT Kerry Rieth, Manager Carla Spradlin, Principal Planner COMMUNITY CORRECTIONS George Miller, Manager CORPORATION COUNSEL Judy Cunningham, Corporation Counsel DISTRICT COURT 52-2 Sharon Rupe, Administrator DISTRICT COURT 52-3 Linda Hammerstein, Administrator EQUALIZATION Dave Hieber, Administrator FACILITIES MANAGEMENT Dave Ross, Director FISCAL SERVICES Tom Ott, Manager Tim Soave, Chief Penny Cremer, Chief Nancy Fournier, Chief Joe Matkosky, Analyst Gaia Piir, Budget Systems Coordinator INFORMATION TECHNOLOGY Phil Bertolini, Director Dale Kukla, Manager Scott Oppman, GIS Supervisor MANAGEMENT & BUDGET Jeff Pardee, Director Laurie Van Pelt, Deputy Director PERSONNEL Nancy Scarlet, Manager PROSECUTING ATTORNEY John O’Brien, Chief Deputy PURCHASING Janet Baldick, Clerk SHERIFF Michael McCabe, Captain Dale Cunningham, Business Manager FREE PRESS Kathleen Gray, Reporter OAKLAND COUNTY BOARD OF COMMISSIONERS 1200 N. TELEGRAPH ROAD, PONTIAC, MI 48341-0470 Telephone (248) 858 -0100 FAX (248) 858-1572 FINANCE COMMITTEE Charles Palmer Fran Amos Shelley Taub William Patterson Chuck Moss Michelle Friedman Appel Tim Melton FINANCE COMMITTEE Page 2 June 21, 2001 OTHERS PRESENT BOARD OF COMMISSIONERS James H. VanLeuven, Jr., Director Sheryl Mitchell, Analyst Harvey Wedell, Analyst Helen Hanger, Sr. Committee Coordinator APPROVAL OF THE PREVIOUS MINUTES Dingeldey moved approval of the previous minutes of June 7, 2001, and June 14, 2001, as printed. Supported by Causey-Mitchell. Motion carried on a voice vote. 5. CONTINGENCY REPORT Items 6, and 10 on today’s agenda would decrease the Contingency Fund balance of $87,549 to $23,991. Palmer moved to receive and file the Contingency Report. Supported by Amos. Motion carried on a voice vote. 6. MR #01166 – SHERIFF DEPARTMENT – CONTRACT AMENDMENT #2 FOR LAW ENFORCEMENT SERVICES IN HIGHLAND TOWNSHIP Highland Township is seeking authorization to amend its law enforcement contract with the Sheriff’s Department to add one Lieutenant to the Contracted Patrol Unit, increasing the number of contract positions to nineteen. One unmarked vehicle with mobile and prep radios will be added to the County fleet. Amos moved approval of the attached suggested Fiscal Note. Supported by Causey - Mitchell. Motion carried unanimously on a roll call vote with Taub, Patterson, Friedman Appel and Melton absent. 7. MR #01096 – 52ND DISTRICT COURT, FIRST AND SECOND DIVISION – AUTHORIZATION FOR AN ADDITIONAL JUDGESHIP; TRANSFER OF ONE JUDGESHIP FROM THE FIRST TO SECOND DIVISION; AND TRANSFER OF ROSE AND WHITE LAKE TOWNSHIPS FROM FIRST TO THE SECOND DIVISION EFFECTIVE JANUARY 1, 2003 Public Acts 447 and 488 of 2000 provide for the creation of one additional judgeship of the First Division of the 52nd District Court, to be elected November, 2002, to take office January 1, 2003. Act 448 would transfer from the First Division the judgeship expiring on January 1, 2005, to the Second Division as of January 1, 2003. These actions would provide two judges for both the First and Second Divisions of the 52nd District Court. Act 448 would also transfer Rose and White Lake Townships from the jurisdiction of the First Division to the Second Division effective January 1, 2003. State Statute requires that the Board of Commissioners confir m creation of a judgeship by resolution. Dingeldey moved approval of the attached suggested Fiscal Report. Supported by Palmer. FINANCE COMMITTEE Page 3 June 21, 2001 Motion carried unanimously on a roll call vote with Taub, Patterson, Friedman Appel and Melton absent. 8. MR #01165 – RESOLUTION AUTHORIZING THE OAKLAND COUNTY BUILDING AUTHORITY TO FINANCE BUILDING 52ND DISTRICT COURT, THIRD DIVISION, AND COUNTY SHERIFF SUBSTATION LOCATED IN THE CITY OF ROCHESTER HILLS, OAKLAND COUNTY, MICHIGAN The resolution would authorize the Oakland County Building Authority to issue bonds in an aggregate principal amount not to exceed $23,300,000 for the construction, furnishing and equipping of the 52nd District Court, Third Division, and Sheriff’s Substation project, to be located in Rochester Hills. Palmer moved approval of the attached suggested Fiscal Note. Supported by Dingeldey. Motion carried unanimously on a roll call vote with Taub, Friedman Appel, Melton and Causey-Mitchell absent. THE COMMITTEE RECESSED FROM 9:40 A.M. TO 10:08 A.M. Palmer moved to report to recommend that the following amendments be made to the resolution and the lease contract: 1. NOW THEREFORE BE IT RESOLVED paragraph: add a #10 paragraph to read: ALL ACTIVITIES INVOLVED IN THE PLANNING AND CONSTRUCTION OF THIS PROJECT UNDER THIS RESOLUTION SHALL COMPLY WITH THE STANDING RULES OF THE BOARD OF COMMISSIONERS. 2. Amend LEASE CONTRACT: a) 4. Funds Remaining After Completion. Any unexpended balance of the proceeds of the sale of the Bonds remaining after completion of the Pro ject may be used to improve or enlarge the Project or for other projects of the Authority upon the approval of the Planning and Building Committee of the Board of Commissioners provided that such use of the funds in the acquisition fund has been approved by the Municipal Finance Division of the Michigan Department of Treasury, if necessary, and the County. Any unexpended balance not so used shall be paid into the bond and interest redemption fund, and the County shall receive a credit against the cash rental payments next due under this Lease to the extent of the moneys so deposited in the manner provided in the Bond Resolution. b) 14. Alterations of Project. The County, in its sole discretion, may install or construct in or upon, or may remove from the Project, any equipment, fixtures or structures, and may make any alterations to or structural changes in, the Project as the County may desire IN ACCORDANCE WITH THE STANDING RULES OF THE BOARD OF COMMISSIONERS. c) Delete all of paragraph 24, including (1) and (2). Supported by Amos. Motion carried unanimously on a roll call vote with Taub, Friedman Appel, Melton and Causey-Mitchell absent. FINANCE COMMITTEE Page 4 June 21, 2001 9. OAKLAND COUNTY JUVENILE ACCOUNTABILITY INCENTIVE BLOCK GRANT ACCEPTANCE (JAIBG) Oakland County has been awarded a federal pass-through grant from the Michigan Family Independence Agency of $602,142, $541,928 from the State and $60,214 being the County’s match. Funding will be used to continue grant -related activities of the Prosecutor’s Office, Community Corrections and Circuit Court. The number of grant-funded positions will increase from four to eight, providing two positions for the Prosecutor’s Teen Court Program, one position for the Prosecutor’s School Violence Program and one additional position for Community Correction’s In-Step Program. Dingeldey moved approval of the attached suggested Resolution. Supported by Amos. Motion carried unanimously on a roll call vote with Friedman Appel, Melton, Causey- Mitchell and Taub absent. 10. COMMUNITY AND HOME IMPROVEMENT DIVISION – 2001-2002 ANNUAL ACTION PLAN AND CONSOLIDATED GRANT ACCEPTANCE FOR CDBG, HOME AND ESG PROGRAMS AND 2000-2001 ANNUAL ACTION PLAN AMENDMENTS The U.S. Department of Housing and Urban Development has awarded the Community and Home Improvement Division $6,556,000, including $4,924,000 for the Community Development Block Grant Program, $1,490,000 for the HOME Investment Partnerships Program and $142,000 for the Emergency Shelter Grant Program. No grant match is required for the CDBG and ESG Programs. In addition to the $299,250 county match already included in the budget for the HOME program, an additional allocation of $36,000 is required. Dingeldey moved approval of the attached suggested Resolution. Supported by Palmer. Motion carried unanimously on a roll call vote with Friedman Appel, Melton, Causey- Mitchell and Taub absent. DEPARTMENT OF MANAGEMENT & BUDGET/EQUALIZATION DIVISION – CRIMP PROGRAM SAVINGS, DELETION OF FOUR (4) POSITIONS As a result of labor-saving technology having been implemented in the Equalization Department, Equalization is requesting to delete four General Fund/General Purpose positions, resulting in an annual savings of $177,098. This action will be recognized under the County’s Cost Reduction Incentive Management Program (CRIMP) as recurring savings. Amos moved approval of the attached suggested Resolution. Supported by Moss. Motion carried unanimously on a roll call vote with Causey-Mitchell, Taub, Friedman Appel and Melton absent. 12. DEPARTMENT OF MANAGEMENT AND BUDGET – BUDGET HEARING SCHEDULE FINANCE COMMITTEE Page 5 June 21, 2001 The FY 2002 and FY 2003 Biennial Budget Hearing Schedule was reviewed. Hearings will be held on regular Finance Committee meeting dates starting July 12, 2001. The regularly scheduled meeting of Thursday, July 12, will begin at 8:00 a.m. rather than the regular time of 9:00 a.m. Additional dates of Thursday, August 16, 2001, 1:00 p.m., and Thursday, September 6, 2001, 1:00 p.m. were added to the schedule for departmental budget hearings and final wrap up. COMMUNICATIONS – CONSENT AGENDA A. Department of Management and Budget /Purchasing Division – Contract Exception for May 2001 Mr. Palmer asked for additional information on the Planning and Economic Development National Trust contract for $99,720.00. B. Department of Agriculture – Federal Cut to the 2001 Michigan Gypsy Moth Suppression Program Dingeldey moved approval of the Communications – Consent Agenda. Supported by Patterson. Motion carried on a voice vote. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) AND GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB) STATEMENT #34 PRESENTATION The CAFR for Fiscal Year (FY) Ended September 30, 2000, and the CAFR and GASB Statement #34 Presentation document were provided to the Committee and staff members. Mr. Pardee gave a brief overview of the CAFR. The document provides a detailed transmittal letter, describing the contents of the Report, and includes an overview on the history and economics of Oakland County and those financial, technological and environme ntal initiatives developed by Oakland County Government, with separate detailed sections on funds. Statistics on revenue and expenditures, tax collection, and levy, property value, etc., are also included as a separate section in the document. Mr. Pardee indicated that 10 seminars were to be held throughout the State in an effort to assist local units with the new GASB #34 reporting guidelines. Ms. Cremer provided a summarized explanation of the separate sections of the report covering the County’s individual funds, i.e. General, Special Revenue, Debt Service, Capital Projects, Internal Service, Enterprise and Fiduciary and the Schedule of General Fixed Assets. Mr. Pardee explained that this document is produced internally without assistance from the Auditors. However, the Auditor’s letter on review of the County’s financial position ending FY 2000, is included in the document and indicates that all general -purpose financial statements are fairly presented. The CAFR is also presented to Wall Street dur ing review of the County’s bond rating. This document has resulted in the County receiving the Certificate of Achievement for Excellence in Financial Reporting for eight years in a row. Mr. Ott presented a detailed review of the CAFR and GASB Statement #3 4 Presentation FINANCE COMMITTEE Page 6 June 21, 2001 document. GASB #34 has established a new reporting framework for state and local governments for financial reporting and is the most comprehensive change in history for public sector reporting standards. This new model will result in a shift from fiscal to operational accountability, retaining features of the traditional model but adding several significant new features. Three elements are required: financial statements, notes to financial statements and required supplementary information. Funds have been redefined and will be restructured accordingly. Mr. Pardee indicated that resolutions would be brought back for consideration regarding elimination of those funds no longer necessary under the new reporting structure, to request assistance in putting the financial structure in place to meet these new reporting requirements and to define use of the Delinquent Tax Revolving Fund. The State is requiring recording of the December, 2000, tax levy as revenue for the Fiscal Year ending September 30, 2000, resulting in five quarters of revenue being recognized for FY 2000 - 2001. Previously, the last quarter of revenue was deferred to the subsequent year. As a result of this requirement, another resolution to recognize this transaction will b e forthcoming. OTHER BUSINESS/ADJOURNMENT There being no other business to come before the committee, the meeting was adjourned at 1:10 p.m. _________________________ _______________________________ Helen Hanger James H. VanLeuven, Jr. Senior Committee Coordinator Administrative Director NOTE: The foregoing minutes are subject to Committee approval.