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HomeMy WebLinkAboutMinutes - 2002.05.23 - 35738SUE ANN DOUGLAS Chairperson CHUCK MOSS Vice Chairperson BRENDA CAUSEY-MITCHELL Minority Vice Chairperson May 23, 2002 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, Chair; Chuck Moss, Vice Chair; Brenda Causey-Mitchell, Minority Vice Chair; Charles Palmer; Larry Obrecht; Shelley Taub; Nancy Dingeldey; William Patterson. COMMITTEE MEMBERS ABSENT WITH NOTICE: Michelle Friedman Appel, Tim Melton. . OTHERS PRESENT: CORPORATION COUNSEL Judy Cunningham, Corporation Counsel Keith Lerminiaux, Deputy Corp. Counsel DRAIN COMMISSIONER Kevin Larsen, Chief Deputy EXECUTIVE OFFICE Doug Williams, Deputy Executive Robert Daddow, Assistant Deputy FISCAL SERVICES Tim Soave, Manager Lynn Sonkiss, Chief Penny Cremer, Chief Sandy Greenacre, Supervisor Joe Matkosky, Supervisor Mike Pohlod, Analyst INFORMATION TECHNOLOGY Phil Bertolini, Director MANAGEMENT & BUDGET Laurie Van Pelt, Director Ed Poisson, Deputy Director PERSONNEL Dean Shackelford, Supervisor ROAD COMMISSION Brian Blaesing, Planning Director SHERIFF Michael McCabe, Captain TREASURER Pat Dohany, Deputy Treasurer Bob Luckey, Chief Cassie Patterson, Supervisor Darlene Rice, Office Leader BUTZEL LONG David Potts, Attorney EASTER SEALS Robert Conaway, Legislative Representative BOARD OF COMMISSIONERS James H. VanLeuven, Jr., Director Sheryl Mitchell, Analyst Harvey Wedell, Analyst Helen Hanger, Sr. Committee Coordinator APPROVAL OF THE PREVIOUS MINUTES 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 Larry Obrecht Shelley Taub Nancy Dingeldey William Patterson Michelle Friedman Appel Tim Melton FINANCE COMMITTEE Page 2 May 23, 2002 Taub moved approval of the minutes of May 9, 2002, as printed. Supported by Causey-Mitchell. Motion carried on a voice vote. PUBLIC COMMENT: Mr. Potts briefed the committee on pending federal litigation regarding th e enforcement of motor carrier laws. A Court ruling in favor of the plaintiffs will severely impact Oakland County, specifically the Prosecuting Attorney and Sheriff, who would be required to handle a large increase in tickets and caseload. AGENDA Item #17 was removed from the agenda at the request of its sponsor, Mr. Middleton. 5. CONTINGENCY REPORT The Contingency Fund balance of $111,343 will be reduced by item #10 ($2,625) to $108,718. Ms. VanPelt reported that work was continuing on the Second Quart er Forecast and the upcoming Fiscal Year budget. Management and Budget is projecting a $10 million shortfall for next year's budget as a result of state revenue reductions and interest income loss. A millage rollback will also be anticipated in 2004 for the 2005 fiscal year. Mr. Obrecht asked that the millage rollback information also be provided for review when the budget process begins. He also asked that Commissioner staff be involved with the overall review of the County's grant programs. Ms. VanPelt added that a comprehensive list of grants, including historical cost -sharing figures, would also be brought for review during the budget process. Ms. Taub asked for information regarding the Law Library's involvement in a proposed program to train law students on how to use the library, and how the resources needed for the program would be provided. Ms. Cunningham stated that this program would be for first year law students but is not yet in place. She indicated she would obtain additional informati on and report back to the committee. Ms. Douglas indicated she would contact Oakland University Board Member Penny Crissman for further information regarding this matter. Palmer moved to receive and file the Contingency Report dated May 15, 2002. Supported by Moss. Motion carried on a voice vote. 6. MR #02113 - COUNTY EXECUTIVE ADMINISTRATION - APPROPRIATION FOR NORTHWESTERN HIGHWAY EXTENSION The resolution would authorize an appropriation of $2 million from the County's General Fund FINANCE COMMITTEE Page 3 May 23, 2002 Designated Fund Balance - Capital Improvement Reserve to facilitate the settlement of a 27-year- old lawsuit filed by the Road Commission of Oakland County (RCOC) against the Michigan Department of Transportation (MDOT) for refusing to extend Northwesterm Highway from Eigh t Mile Road to the US-23 junction. The agreement would end the lawsuit and allow construction projects to move forward to eliminate traffic congestion resulting from Northwestern Highway's termination at 14 Mile and Orchard Lake Roads. The agreement incl udes three phases of construction, to be implemented over a 25 -year period. Phase I includes a six-lane boulevard on Orchard Lake Road from 14 Mile Road to Maple Road, widening Powers and Daly Roads between Maple and Orchard Lake Roads, and construction of eight roundabouts along both 14 Mile and Maple Roads at most major intersections. Phase I will cost $40 million, with MDOT paying $30 million, the State of Michigan $3 million, the RCOC $2.5 million and Oakland County paying $2 million in 2004. Oakland County communities must pay $2.5 million in 2004 and 2005. Ms. VanPelt stated that this is general fund equity reserve money earmarked for one -time, long- term facility projects. Mr. Palmer stated he would like to see these Designated Fund dollars replac ed. Mr. Bleasing stated that the Road Commission would be doing an educational video on the proper use of roundabouts. West Bloomfield Township has passed a resolution in support of this project. U.S. Representative Knollenberg's office is working to obtain federal funding to help offset costs to West Bloomfield and the Road Commission. Otherwise, West Bloomfield is expected to use its Tri-Party funding. Taub moved approval of the attached suggested Fiscal Note. Supported by Dingeldey. Motion carried unanimously on a roll vote with Friedman Appel and Melton absent. MR. MOSS ASSUMED THE CHAIR AT 9:47 A.M. Palmer moved the attached suggested report to amend the resolution to add: BE IT FURTHER RESOLVED that Oakland County’s commitment is contingent upon the assurance of guaranteed funding by Michigan Department of Transportation for $30 million, Road Commission for Oakland County for $5 million, and the State of Michigan for $3 million. Supported by Dingeldey. Motion carried unanimously on a roll call vote with Friedman Appel, Melton and Douglas absent. 7. MR #02132 - ENVIRONMENTAL INFRASTRUCTURE FUND REIMBURSEMENT FOR PROJECT IN THE CHARTER TOWNSHIP OF SPRINGFIELD - FISCAL YEAR 1999, FISCAL YEAR 2000, FISCAL YEAR 2001 AND FISCAL YEAR 2002 ALLOCATION Springfield Township is requesting reimbursement of its Environmental Infrastructure Fund FY 1999-2002 annual allocations of $46,505.47 ($186,021.88 total) for expenses related to FINANCE COMMITTEE Page 4 May 23, 2002 the Dixie Highway storm sewer project. Patterson moved approval of the attached suggested Fiscal Note. Supported by Palmer. Motion carried unanimously on a roll call vote with Friedman Appel, Melton and Douglas absent. 8. MR #02130 - ENVIRONMENTAL INFRASTRUCTURE FUND REIMBURSEMENT FOR PROJECT IN THE CHARTER TOWNSHIP OF BRANDON - FY 2001 ALLOCATION Brandon Township is requesting reimbursement of its Environmental Infrastructure Fund FY 2001 allocation of $43,047.79 for expenses related to the Township Hall remediation and sewer extension, well monitoring and underground tank projects. Patterson moved approval of the attached suggested Fiscal Note. Supported by Palmer. Motion carried unanimously on a roll call vote with Friedman Appel, Melton and Douglas absent. 9. MR #02126 - SHERIFF'S DEPARTMENT - CONTRACT FOR COURT SECURITY AT THE 43RD DISTRICT COURT - MADISON HEIGHTS FOR 2003/2004/2005 The 43rd District Court in Madison Heights has requested that the Sheriff continue two Part- time, non-eligible (PTNE), 1,000 Court Deputy II positions to provide security to the Co urt for Fiscal Years 2003-2005 as previously authorized per MR #01191. The Court will provide full reimbursement for costs as outlined in the contract. Palmer moved to approve the attached suggested Fiscal Note. Supported by Taub. Motion carried unanimously on a roll call vote with Friedman Appel, Melton and Douglas absent. 10. MR #02127 - SHERIFF'S DEPARTMENT - CONTRACT FOR COURT SECURITY AT THE 47TH DISTRICT COURT - FARMINGTON FOR 2002/2003/2004/2005 The 47th District Court in Farmington is requesting that the Sheriff provide three PTNE 1,000 Court Deputies to provide security for the Court for Fiscal Years 2002 -2005, beginning June 12, 2002. Capital costs for one additional prep radio will come from Contingency. The 47th District Court will reimburse all other costs relating to these three positions to the Sheriff's Budget. Dingeldey moved approval of the attached suggested Fiscal Note. Supported by Taub. Motion carried unanimously on a roll call vote with Friedman Appel, Melton and Douglas absent. 11. MR #02128 - SHERIFF'S DEPARTMENT - CONTINUATION OF TWO (2) CLERK III POSITIONS IN THE RECORDS UNIT FINANCE COMMITTEE Page 5 May 23, 2002 The Sheriff is requesting to continue two Clerk II positions, through Fiscal Year 2004, to provide assistance with the workload in the Records Un it resulting from the large number of Gun Registrations. P.A. #381 of 2000 allowed the Sheriff to charge a fee for Gun Registration fingerprinting to a maximum of $15.00 per card. This $15.00 charge, along with the original creation of these two positions, was established per MR #01188. The Sheriff has demonstrated that the registrations have increased, generating enough revenue to continue these positions. These positions will be reviewed during the FY 2005 budget process. Captain McCabe indicated that the Sheriff is processing close to 70 applications a week. MS. DOUGLAS RESUMED THE CHAIR AT 9:59 A.M. Taub moved approval of the attached suggested Fiscal Note. Supported by Causey-Mitchell. Motion carried unanimously on a roll call vote with Friedman Appel and Melton absent. 12. MR #02115 - DRAIN COMMISSIONER - UTILITY BILLING INFORMATION SYSTEM IMPLEMENTATION - TRANSFER TO INFORMATION TECHNOLOGY The Drain Commissioner is requesting approval to purchase hardware and software from Harris Computer Systems to implement a new Utility Billing Information System at a total cost of $808,633. This new system will be supported through the County's Information Technology Department and is expected to provide increased functionality and reporting capabilities for those 17 communities that utilize water supply and disposal services through the Drain Commissioner's Office. Taub moved approval of the attached suggested Fiscal Note. Supported by Causey-Mitchell. Motion carried unanimously on a roll call vote wit h Friedman Appel and Melton absent. 13. MR #02125 - DEPARTMENT OF INFORMATION TECHNOLOGY - SECOND QUARTER 2002 DEVELOPMENT APPROPRIATION TRANSFER The resolution authorizes the transfer of departmental appropriations for actual quarterly expenses from the non-departmental budget to the user department. Charges are $1,450,840.85 for data processing and $71,262 for imaging development. Direct charges to Special Revenue and Proprietary fund departments are $350,724.70, with no charge this quarter to non -county agencies. Taub moved approval of the attached suggested Fiscal Note. Supported by Patterson. Motion carried unanimously on a roll call vote with Friedman Appel and Melton absent. 15. FACILITIES MANAGEMENT/FACILITIES ENGINEERING - AWARD OF CONTRACT FOR THE 2002 ROOF REPLACEMENT PROGRAM - MAIN JAIL PROJECT FINANCE COMMITTEE Page 6 May 23, 2002 Facilities Management is seeking authorization to award a contract to C. Davis Roofing of Sterling Heights, in the amount of $867,550, for replacement of the main jail roof. This project is incl uded in the 2002 Capital Improvement Program. Total project costs of $1,080,000, include the contract award, $70,000 for Facilities Maintenance costs and $142,450 in contingency. Palmer moved approval of the attached suggested Resolution. Supported by Patterson. Motion carried unanimously on a roll call vote with Friedman Appel, Melton and Moss absent. 16. FACILITIES MANAGEMENT/FACILITIES ENGINEERING - AWARDS OF CONTRACT FOR THE 2002 PARKING LOT PAVING PROJECT Facilities Management is requesting authorization to award a contract to AW Excavating of Metamora of $535,521.45 for the paving of the Farmers' Market and Executive Office Building parking lots and to Allied Construction Company of Clarkston of $80,795, to pave the Animal Control parking lot. Total project costs of $968,000 include the contract awards, design and administration costs of $135,000, landscaping repair costs of $85,000, Facilities Maintenance costs of $5,000 and contingency of $126,683.55. This project is included in the 2002 Cap ital Improvement Program. Palmer moved approval of the attached suggested Resolution. Supported by Causey - Mitchell. Motion carried unanimously on a roll call vote with Friedman Appel and Melton absent. 14. LONG TERM CARE Mr. Fayne explained that the Administration is currently evaluating a long -term care benefit program, to be included as another option for the employee cafeteria benefit selection plan. The only cost to the county would be administering payroll deductions for current employees who elect to use their fringe benefit dollars to pay the premium for this program. Additionally, when an employee retires, they would still be able to take the policy with them at the same rate. This will be a straight insurance premium program through a group policy. A subcommittee of the Fringe Benefit Review Committee will be interviewing consultants interested in assisting in the preparation of the Request for Proposal (RFP). This consultant would also assist in evaluating respondents to the RFP. Following this review, a resolution will be drafted and brought back to the Board for final approval of a consultant to provide the coverage. Mr. Obrecht suggested that if this program is implemented and proven to be cost-effective, that participation by all county residents be evaluated. Patterson moved to receive and file the report on Long -Term Care. Supported by Moss. Motion carried on a voice vote. 18. DEPARTMENT OF MANAGEMENT AND BUDGET - REVISE FISCAL POLICIES MANUAL TO INCLUDE CAPITALIZATION REQUIREMENTS FOR INTERNAL SERVICE FUNDS Management and Budget is recommending an amendment to the Fiscal Policy Manual to include a $5,000 capitalization threshold for the Internal Service Funds, consistent with the policy FINANCE COMMITTEE Page 7 May 23, 2002 established for the General Fixed Asset Account Group and Enterprise Funds. Dingeldey moved approval of the attached suggested Resolution. Supported by Palmer. Motion carried unanimously on a roll call vote with Obrecht, Friedman Appel and Melton absent. 19. DEPARTMENT OF MANAGEMENT AND BUDGET - FISCAL YEAR 2002 SECOND QUARTER FINANCIAL FORECAST AND BUDGET AMENDMENTS This item was carried forward at the request of Management and Budget. COMMUNICATIONS A. Radio Communications Fund Financial Statements - Six Months Ended March 31, 2002 B. Radio Communications Fund - Status of Project and Negotiations with M/A COM E. Management and Budget - Letter to John Pappageorge Regarding State Revenue Sharing Estimates for Fiscal Year 2002-2003 Palmer moved to receive and file Communication A, B, E. Supported by Causey-Mitchell. Motion carried on a voice vote. D. City of Troy Resolution Regarding City of Clawson's Sign Ordinance Mr. Palmer indicated he would be discussing this item with the Administration. Palmer moved to receive and file Comm unication D. Supported by Moss. Motion carried on a voice vote. C. Treasurers Office - Update on P.A. 123 - New Tax Revision Law Mr. Dohany provided the committee with an overview of the Treasurer's response to the adoption of P.A. 123 of 1999 in dealing with delinquent taxes. P.A. 123 was the first change in the method used to collect delinquent taxes since 1893. This new law has collapsed the previous delinquency system from five years to 24 months. In order to address these changes and to assist at-risk taxpayers, the Treasurer has implemented a number of procedures. These procedures include: mailing of six notices, 2 being certified, and personal service to all parties listed as owners; completion of a 40 -year title search on each property; production of a newspaper supplement with a list of all delinquent parcels; and conducting both administrative hearings and then final hearings before the Circuit Court. Oakland County is one of the first Treasurers to implement an electronic forfeiture notice, foreclosure and release system through the Register of Deeds. FINANCE COMMITTEE Page 8 May 23, 2002 The intent of the new legislation was to put abandoned property back on the tax rolls before it became a blight problem. If the remaining properties do not sell in July, they are offered to the local units. If the local units do not want them, they become County property. Mr. Dohany thanked all those who had a hand in developing and carrying out these new procedures. As a result of this effort, of 40,000 parcels having delinquent 1997 and 1999 taxes, only 531 parcels were foreclosed upon. Palmer moved to receive and file Mr. Dohany's report on the new procedures implemented in response to P.A. 123 of 1999. Supported by Patterson. Motion carried on a voice vote. THE COMMITTEE RECESSED FROM 10:55 A.M. TO 11:17 A.M. 20. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) PRESENTATION A summary review of the Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2001, was provided by Mr. Soave and Ms. Cremer. A brie f explanation of the format was provided. Ms. Cremer explained that the Financial Section contains the basic financial statements and is the only section audited. This document is submitted each year to the County's bonding institutions as part of the County's presentation to maintain its AAA bond rating. Next year's document will reflect several reporting changes needed as a result of GASB 34 implementation. OTHER BUSINESS/ADJOURNMENT There being no other business to come before the committee, the meet ing was adjourned at 12:05 a.m. _________________________ _______________________________ Helen Hanger James H. VanLeuven, Jr. Senior Committee Coordinator Administrative Director NOTE: The foregoing minutes are subject to Committee approval.