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HomeMy WebLinkAboutMinutes - 2003.05.01 - 35806CHUCK MOSS Chairperson DAVID L. MOFFITT Vice Chairperson VINCENT GREGORY Minority Vice Chairperson May 1, 2003 Chairperson Moss called the meeting of the Fi nance Committee to order at 9:00 a.m., in the Board of Commissioners' Auditorium, Commissioners' Wing, County Service Center, Pontiac, Michigan. COMMITTEE MEMBERS PRESENT : Chuck Moss, Chair; David L. Moffitt, Vice Chair; Vincent Gregory, Minority Vice Cha ir; Charles Palmer; William Patterson; Hugh D. Crawford; Peter Webster; Thomas Middleton; George Suarez; Helaine Zack. COMMITTEE MEMBERS ABSENT WITH NOTICE: None. OTHERS PRESENT : CLERK/REGISTER OF DEEDS G.W. Caddell, Clerk/Register Larry Mitchell, Deputy Clerk/Register COMMUNITY & ECONOMIC DEV. Dennis Toffolo, Director CORPORATION COUNSEL Judy Cunningham, Corporation Counsel Joellen Shortley, Assistant Counsel DISTRICT COURT 52-2 Judge Dana Fortinberry Sharon Ruppe, Administrator DRAIN COMMISSIONER Kevin Larsen, Deputy Drain Commissioner EQUALIZATION Dave Hieber, Manager EXECUTIVE OFFICE L. Brooks Patterson, County Executive Ken Rogers, Deputy Executive Doug Williams, Deputy Executive Gerald Poisson, Assista nt Deputy Executive FACILITIES MANAGEMENT Dave Ross, Director Mike Hughson, Property Specialist FISCAL SERVICES Tim Soave, Manager Nancy Fournier, Chief Joe Matkosky, Supervisor Wayne Keller Prentiss Malone, Analyst MANAGEMENT & BUDGET Laurie Van Pelt, Director Art Holdsworth, Deputy Director O.C. INTERNATIONAL AIRPORT Karl Randall, Manager PERSONNEL Ed Poisson, Deputy Director Nancy Scarlet, Manager Dean Shackelford, Supervisor Brenthy Johnston, Analyst Karen Jones, Labor Relations Specialist PLANNING & ECONOMIC DEV. Dan Hunter, Manager David Schreiber, Supervisor OTHERS PRESENT (CONTINUED) PURCHASING Jack Smith, Chief 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 William Patterson Hugh D. Crawford Peter Webster Thomas Middleton George Suarez Helaine Zack FINANCE COMMITTEE Page 2 May 1, 2003 SHERIFF Michael McCabe, Captain Dale Cunningham, Business Manager TREASURER Pat Dohany, Treasurer OAKLAND PRESS Charlie Crumm, Reporter FREE PRESS Kathy Gray, Reporter BOARD OF COMMISSIONERS James VanLeuven, Administrative Director Sheryl Mitchell, Analyst Harvey Wedell, Analyst Helen Hanger, Sr. Committee Coordinator APPROVAL OF THE PREVIOUS MINUTES Zack moved approval of the minutes of April 10, 2003, as printed. Supported by Palmer. Motion carried unanimously on a roll call vote. PUBLIC COMMENT: Mr. Moss indicated that public comment on the modifications to the Fringe Benefits would be taken up at the same time Item #16 was discussed. Mr. Caddell advised the committee that the Senate has voted out a bill to cancel the 2004 presidential primary in order to save $6 -7 million dollars. Ms. Van Pelt introduced the new deputy director of Management and Budget, Mr. William Holdsworth. AGENDA 5. CONTINGENCY REPORT Item 8 ($4,740) and Item 17 ($7,184) will increase the Contingency Fund from the previous month's balance of $274,191 to $286,115. Revised sheets for Contingency Fund and Miscellaneous Capital Outlay were distributed. Mr. Soave reported that yesterday was Royal Oak Township's payment date for the current billing, along with the next $10,000 arrearage payment. The arrearage payment was not made. Crawford moved to receive and file the Contingency Report dated April 29, 2003. Supported by Middleton. Motion carried on a voice vote. REGULAR AGENDA 6a. MR #03096 - ENVIRONMENTAL INFRASTRUCTURE REIMBURSEMENT FOR PROJECT IN THE CITY OF ROYAL OAK - FISCAL YEARS 2002 AND 2003 ALLOCATION The City of Royal Oak is requesting reimbursement of its FY 2003 $245,308.64 Environmental Infrastructure Reimbursement allocation for expenses directly related to the Maxwell Av enue Relief Sewer Project. 6b. MR #03100 - ENVIRONMENTAL INFRASTRUCTURE REIMBURSEMENT FOR PROJECT IN THE TOWNSHIP OF BRANDON - FY 2002 AND 2003 ALLOCATION Brandon Township is requesting reimbursement of its FY 2002 and FY 2003 $43,047.79 Environmental Infrastructure Reimbursement allocations for expenses directly related to the FINANCE COMMITTEE Page 3 May 1, 2003 cleanup of a leaking underground gasoline storage tank, drainage improvement on Hurd Road and the Phase II Watershed project. 6c. MR #03102 - ENVIRONMENTAL INFRASTRUCTURE REIMBURSEMENT FOR PROJECT IN THE CITY OF WIXOM - FY 2003 ALLOCATION The City of Wixom is requesting reimbursement of its FY 2003 $55,848.88 Environmental Infrastructure Reimbursement allocation for expenses directly related to the voluntary Stormwater Permit Public Education Program and Illicit Discharge Elimination Plan and Manhole Rehabilitation Project. 6d. MR #03099 - ENVIRONMENTAL INFRASTRUCTURE REIMBURSEMENT FOR PROJECT IN THE CITY OF OAK PARK - FISCAL YEAR 1999, 2000, 2001, 2002 AND 2003 ALLOCATIONS The City of Oak Park is requesting reimbursement of its FY 1999 through FY 2003 $$98,913.19 Environmental Infrastructure Reimbursement allocations for expenses directly related to the Northend Watermain Replacement Project. (This item also includes a proposed report to amend the resolution to strike "1999" from the title.) 7a. MR #03092 - COUNTY EXECUTIVE, EMERGENCY RESPONSE AND PREPAREDNESS - TORNADO WARNING SYSTEM EXPANSION - BRANDON TOWNSHIP Emergency Response and Preparedness, on behalf of Brandon T ownship, is requesting authorization to add one siren to the County's tornado warning system. Consistent with previous agreements, Brandon Township will pay 75%, or $15,750, of the estimated cost of the siren and the County will pay 25%, or $5,250, retain ownership and be responsible for maintenance and electrical costs. 7b. MR #03093 - COUNTY EXECUTIVE, EMERGENCY RESPONSE AND PREPAREDNESS - TORNADO WARNING SYSTEM EXPANSION - SPRINGFIELD TOWNSHIP Emergency Response and Preparedness, on behalf of Springf ield Township, is requesting authorization to add two sirens to the County's tornado warning system. Consistent with previous agreements, Brandon Township will pay 75%, or $31,50, of the estimated cost of the siren and the County will pay 25%, or $10,500, retain ownership and be responsible for maintenance and electrical costs. Crawford moved approval of Consent Agenda items 6a. - 7b. Supported by Palmer. Motion carried unanimously on a roll call vote with Moffitt, Gregory, Patterson and Suarez absent. 8. MR #03094 - 52ND DISTRICT COURT, DIVISION II - COMMUNITY SERVICE GARDEN PROGRAM On behalf of the 52 nd-2 District Court and Judge Batchik, Judge Fortinberry reviewed the Court's request to implement a Community Service Garden program based on that es tablished at the 52-1 District Court in Novi. Non -violent offenders will be sentenced to work hours in the garden, at a cost of $15 a day to the offender, in lieu of being housed in the jail, a cost to the taxpayers of $78 per day. Independence Township is allowing the Court to use property located at the historic McCord Farm and an individual has volunteered his time and equipment to plow the acreage. All harvested food will be donated to the Oakland County Food Bank and other charities. The FY 2003 cost to operate the program is estimated at $1,260 for tools and supplies, with a return of $6,000. For FY 2004 costs are estimated at $1,500, with offsetting revenue of $18,000 anticipated. Funds are available within the Court's existing line items. The Cou nty's Community Corrections staff will provide initial supervision. At a future time, it is anticipated that a part -time manager will be hired, funded by program -generated revenue. Program participants will also assist in restoration work at McCord farm. FINANCE COMMITTEE Page 4 May 1, 2003 Middleton moved approval of the attached suggested Fiscal Note. Supported by Palmer. Motion carried unanimously on a roll call vote with Gregory and Patterson absent. 9. MR #03086 - CLERK/REGISTER OF DEEDS - CREATE OF AN AUTOMATION FUND In response to P.A. 698 of 2002, the Revised Judicature Act, which takes effect March 31, 2003, the Clerk/Register of Deeds is requesting authorization to create an Automation Fund. The fund is required to be used to upgrade technology within the Register of Deed s, with priority given to book indexing and upgrading search capabilities. Funding for the program will come from increased fees allowed for by Act 698, from $5.00 to $8.00 for the first page and from $2.00 to $3.00 for the second page. Within four years after the effective date of the act, the Register of Deeds is required to report to the legislature on the progress made towards automating records for public access. The Automation Fund budget for FY 2003 will be established at $950,000 and for FY 2004 at $1,625,000. Palmer moved to report to approve the resolution with an amendment following the fourth WHEREAS paragraph to read: WHEREAS, in addition to other fees prescribed in subsection (1) or (3), a register of deeds shall collect a fee of $2.00 for entering and recording a deed, mortgage, certified copy of an attachment, notice of the pendency of a suit, or other instruments. The fee shall be paid when the deed, mortgage, certified copy of an attachment, notice of the pendency of a suit, or other instrument is left for record. Supported by Webster. Motion carried unanimously on a roll call vote with Gregory and Patterson absent. Crawford moved approval of the attached suggested Fiscal Note. Supported by Palmer. Motion carried unanimously on a roll call vote with Gregory and Patterson absent. 10. MR #03095 - SHERIFF'S DEPARTMENT - CONTRACT FOR LAW ENFORCEMENT SERVICES AT THE MICHIGAN RENAISSANCE FESTIVAL - 2003 SEASON The Sheriff is requesting authorization to contract with the Michigan Ren aissance Festival to supply Law Enforcement services for the upcoming 2003 season at established overtime rates. Reimbursement of salaries for FY 2003 will be budgeted at $51,600. Crawford moved approval of the attached suggested Fiscal Note. Supported by Middleton. Motion carried unanimously on a roll call vote with Gregory and Patterson absent. 11. SHERIFF'S DEPARTMENT - FY 2002 LOCAL LAW ENFORCEMENT BLOCK GRANT ACCEPTANCE The Sheriff is requesting authorization to utilize unexpended FY 2002 Local Law Enforcement Block Grant funds for personal hazmat protection kits and portable cardiovascular defibrillators for use in emergency community policing. These unexpended funds are available as a result of the Federal Government's change in the natu re and scope of the LLEBG program. Total program costs are $103,729, with $93,356 (90%) being Federal funds and $10,373 being the County's match requirement which is available within the Sheriff's grant match line item. FINANCE COMMITTEE Page 5 May 1, 2003 Ms. Van Pelt noted that in the fu ture, all direct costs for grants would be identified. Middleton moved approval of the attached suggested Fiscal Note. Supported by Zack. Motion carried unanimously on a roll call vote with Gregory absent. 12. DEPARTMENT OF CENTRAL SERVICES - OAKLAND/TROY AIRPORT - 2003 GRANT PROGRAM ACCEPTANCE - DESIGN AND CONSTRUCTION FOR REHABILITATION OF SERVICE DRIVE AND INSTALLATION OF LIGHTED WIND CONE The Department of Central Services, Oakland/Troy Airport has received a Michigan Department of Transportation Grant for Federal funds to develop and improve the Oakland/Troy Airport. Federal funds of $91,500, state funding of $5,083 and County match funds of $5,084, will be used for the rehabilitation of a service drive and installation of a lighted wind cone to replace one previously removed as a result of retail construction in the area. Palmer moved to recommend approval of the attached suggested Fiscal Note. Supported by Crawford. Motion carried unanimously on a roll call vote with Gregory absent. 13. MR #03087 - DEPARTMENT OF FACILITIES MANAGEMENT - PERSONNEL CHANGES TO MEET 50% REDUCTION REQUIREMENT IN COST OF POSITIONS VACATED THROUGH INCENTIVE PROGRAM FOR RETIREMENT In response to the requirement for a 50% reduction in the cost of positions vacated a s a result of MR #02236, the Retirement Incentive Program, Facilities Management is requesting the following: deletion of 16 part-time, non-eligible (PTNE) Seasonal Laborer positions; 1 PTNE Summer Shift Laborer; One Custodial Worker II; one Painter I; on e Maintenance Planner II and one Landscape Services -Supervisor; and the downgrade of one Chief -Architectural Maintenance & Services position to a Maintenance Supervisor II and one Secretary I to an Account Clerk II, Part -time, eligible (PTE), 1,560 hours. Facilities Management also is requesting the creation of eight 1,000 -hour PTNE General Helper positions. A total of 17 employees opted to retire under the Retirement Incentive Program, a value of $1,181,454, with a cost reduction goal of $590,727. The requested personnel changes will result in additional savings beyond this goal of $36,943. Palmer moved to recommend approval of the attached suggested Fiscal Note. Supported by Patterson. Motion carried unanimously on a roll call vote. 14. MR #03088 - DEPARTMENT OF FACILITIES MANAGEMENT - REQUEST TO CONVEY COUNTY OWNED PROPERTY TO THE CHARTER TOWNSHIP OF WATERFORD, TAX PARCELS NOS. 13 -16-101-016 AND 13-16-101-043 Facilities Management is requesting authorization to convey County -owned Tax Parcels Nos. 13 -16-101- 016 and 13-16-101-043 to the Charter Township of Waterford for $1. The property was originally acquired to construct the Waterford Township Sanitary Sewer System, which was originally financed by bonds and paid for by Waterford Township. The Township now owns and operates the system and is requesting conveyance of the property. Due to the proximity of the property to the Oakland County International Airport, a restriction will be placed on the deed -conveying title prohibiting construction of any above ground improvements with the exception of sanitary sewer related appurtenances. FINANCE COMMITTEE Page 6 May 1, 2003 Palmer moved to recommend approval of the attached suggested Fiscal Note. Supported by Middleton. Motion carried unanimously on a roll call vote. 15. MR #03089 - DEPARTMENT OF FACILITIES MANAGEMENT - REQUEST TO CONVEY COUNTY OWNED PROPERTY TO THE CHARTER TOWNSHIP OF WATERFORD, TAX PARCELS NO. 13-08-301-017 Facilities Management is requesting authorization to convey County -owned Tax Parcel No. 13-08-301-017 to the Charter Township of Waterford for $1. The property was originally acquired to construct the Waterford Township Sanitary Sewer System, which was originally financed by bonds and paid for by Waterford Township. The Township now owns and operates the sys tem and is requesting conveyance of the property. Middleton moved to recommend approval of the attached suggested Fiscal Note. Supported by Palmer. Motion carried unanimously on a roll call vote. 16. MODIFICATIONS TO EMPLOYEES AND RETIREE MEDICAL PLA NS Mr. Poisson reported that the Administration's proposed changes to employee and retiree medical plans are in response to the County's rising health care costs, which rose 33% in the previous fiscal year; reduced revenue resulting from decreased investm ent income and a decreased employee base. The Fringe Benefit fund balance has fallen from $20.6 million at the end of FY 2001 to a projected deficit of $12.3 million at end of FY 2004. To prevent this deficit and to avoid a fringe benefit rate of 50.36%, the Administration is recommending changes to employee medical plans which would result in higher prescription co-pays and employee bi-weekly payroll contributions, based on the date of hire, as detailed in the attachment to the resolution (see attached). Bi-weekly payroll contributions will begin with the pay check date of August 15, 2003. Prescription co -pay increases from the current $5 to $5 generic, $10 brand name and $25 non -formulary brand name will be implemented August 1, 2003, for current empl oyees. Prescription co-pays for retirees will be increased from the current $5 and $3 co -pays to $5 generic, $10 brand name and $15 non -formulary beginning January 1, 2004. It is anticipated that payroll contributions for active employees will contribute $1.5 million to offset health care costs. Another $.5 million will come from employees hired after May 31, 2003. An additional $1.7 million is anticipated in prescription savings for both active employees and retirees. Actual savings will depend on medic al plan selections and the number of new hires. Middleton moved to recommend approval of the attached suggested Fiscal Note. Supported by Suarez. Motion carried on a roll call vote with Moffitt voting no. 16a. PLANNING & ECONOMIC DEVELOPMENT SERVICES - RESOLUTION APPROVING THE CREATION OF A LOCAL DEVELOPMENT FINANCE AUTHORITY BETWEEN THE CITY OF SOUTHFIELD AND THE CITY OF TROY PURSUANT TO ACT 281 OF 1986 On behalf of the City of Southfield and the City of Troy, Planning and Economic Development Service s is requesting that the Board approve the creation of a Joint Local Development Finance Authority (LDFA), pursuant to Act 281 of 1986, to exercise powers as a certified technology park and to capture taxes from property within the authority area. To achi eve designation as a Smart Zone, the Michigan Economic Development Corporation must approve the authority. The City of Southfield has passed the necessary resolution approving the project. The City of Troy is expected to approve its resolution on May 5. LDFA captured revenue will be used for a variety of activities, including infrastructure, marketing and promotion. Consistent with the statute, the LDFA will exist for a 15 -year period. A total of $1.7 million in County FINANCE COMMITTEE Page 7 May 1, 2003 General Fund Taxes will be captured over this 15-year time period, with an expected Return on Investment of $22,010,472. The State shall reimburse all school taxes and is providing a Technology Accelerator Startup Grant of $2,000,000. Additional support has been contributed by the U.S. Ar my Tank Command/National Automotive Center. P.A. 286 requires only that the Board of Commissioners pass a resolution in support of the project. There is no opt -out provision for County taxes. Gregory moved to report to recommend an amendment to the reso lution to insert the words "for a duration of 15 years" as follows: NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners approves the creation of a Local Development Finance Authority for a duration of 15 years between the City of Southfield and the City of Troy pursuant to Public Act 281 of 1986. Supported by Suarez. Motion carried unanimously on a roll call vote. Palmer moved to recommend approval of the attached suggested Fiscal Note. Supported by Middleton. Motion carried unanimously on a roll call vote. 17. DEPARTMENT OF MANAGEMENT AND BUDGET/EQUALIZATION DIVISION - APPROVAL OF CONTRACT FOR OAKLAND COUNTY EQUALIZATION DIVISION ASSISTANCE SERVICES WITH CHARTER TOWNSHIP OF BLOOMFIELD Equalization is requesting authorization to contract with the Charter Township of Bloomfield to provide annual assessment of personal property through the 2004 and 2005 tax years, to appraise all new personal property and other equalization services as outlined in the contract. The Township will pay the County a sum of $12.88 each contract year for each personal property description rendered during the life of this Contract. The contract period is April 1, 2003 through June 30, 2005. Palmer moved approval of the attached suggested Resolution. Supported by Patterson. Motion carried unanimously on a roll call vote with Patterson absent. 18. DEPARTMENT OF MANAGEMENT AND BUDGET/FISCAL SERVICES DIVISION - TRANSFER OF WATER AND SEWER BILLING FUNCTION AND STAFF TO THE DRAIN COMMISSIONER The Department of Management and Budget/Fiscal Services is requesting authorization to transfer from Fiscal Services to the Drain Commissioner eight positions responsible for the billing function for those water and sewer systems owned by municipalities and opera ted by the Drain Commissioner. The Drain Commissioner is in agreement with this proposal. A new unit titled Customer Services Unit will be created under the Drain Commissioner and the transfers will be effective May 31, 2003. One Supervisor II will be retitled to a new classification of Supervisor -Drain Customer Services, at the same salary grade. Patterson moved approval of the attached suggested Resolution. Supported by Middleton. Motion carried unanimously on a roll call vote. 19. DEPARTMENT OF MA NAGEMENT AND BUDGET - FY 2004 AND FY 2005 REVENUE FINANCE COMMITTEE Page 8 May 1, 2003 ESTIMATES Preliminary General Fund/General Purpose Revenue Estimates by Department/Division for FY 04 and FY 05 were reviewed. The amended revenue budget for FY 2003 is $372,800,475. Management and Budget is projecting a revenue budget for FY 2004 of $358,509,424 and for FY 2005, a $363,669,214. Ms. Van Pelt indicated that further state revenue cuts are anticipated but it is not yet clear if they will come out of revenue sharing or some other revenue sour ce such as jail reimbursement. Suarez moved to receive and file the FY 2004 and FY 2005 Revenue Estimates. Supported by Crawford. Motion carried on a voice vote. COMMUNICATIONS A. Purchasing Division - Contract Exception Report for Month of March and Additional Information for Contract Exception Report of February Per Request of Finance Committee from April 10, 2003, Meeting Palmer moved to receive and file Communications A. Supported by Suarez. Motion carried on a voice vote. B. Oakland County Sheriff's Department and Prosecuting Attorney - FY 2004 Oakland County Narcotics enforcement Team Grant Application C. Prosecuting Attorney, Sheriff - FY 2004 Byrne Memorial Grant Application (Child Abuse Byrne Grant) D. Department of Public Services/Community Corrections Division - 2003-2004 Byrne Memorial Grant - Michigan Office of Drug Control Policy Application for Pontiac In -Step E. Information Technology - Wireless Courtroom Internet Access National Communication and Information Administration - Technology Opportunities Program Grant Application F. Notice of Public Hearing for Industrial Facilities Exemption Certificate for ITT Industries Located at 2110 Executive Hills Court, Auburn Hills, MI 48326 Moffitt moved to receive and file Communicati ons B-F. Supported by Zack. Motion carried on a voice vote. OTHER BUSINESS/ADJOURNMENT There being no other business to come before the committee, the meeting was adjourned at 11:24 a.m. ________________________ _______________________________ Helen Hanger James H. VanLeuven, Jr. Senior Committee Coordinator Administrative Director NOTE: The foregoing minutes are subject to Committee approval.