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HomeMy WebLinkAboutMinutes - 2003.07.10 - 35822CHUCK MOSS Chairperson DAVID L. MOFFITT Vice Chairperson VINCENT GREGORY Minority Vice Chairperson July 10, 2003 Chairperson Moss called the meeting of the F inance Committee to order at 9:00 a.m., in the Board of Commissioners' Committee Room A, Commissioners' Wing, County Service Center, Pontiac, Michigan. COMMITTEE MEMBERS PRESENT : Chuck Moss, Chair; Vincent Gregory, Minority Vice Chair; Charles Palmer; Wil liam Patterson; Hugh D. Crawford; Peter Webster; Thomas Middleton; George Suarez; and Helaine Zack. COMMITTEE MEMBERS ABSENT WITHOUT NOTICE: David L. Moffitt, Vice Chair OTHERS PRESENT : CORPORATION COUNSEL Judy Cunningham, Corporation Counsel EMERGENCY RESPONSE Gail Novak, Chief FISCAL SERVICES Tim Soave, Manager Nancy Fournier, Chief LaVerne Smith, Supervisor Joe Matkosky, Supervisor Prentiss Malone, Analyst Holly Conforti Leo Lease, Accountant MANAGEMENT & BUDGET Art Holdsworth, Deputy Director PERSONNEL Ed Poisson, Director Mary Holden, Deputy Director Nancy Scarlet, Manager PURCHASING Joe Hilla, Manager SHERIFF Michael McCabe, Undersheriff Dale Cunningham, Business Manager CLERK /REGISTER G. William Caddell, Clerk/Register Frank Millard, Deputy Clerk/Register TREASURER'S OFFICE Pat Dohany, Treasurer Keith Sawdon, Chief Deputy INFORMATION TECHNOLOGY Phil Bertolini, Director DRAIN COMMISSIONER Phil Sanzica, Assistant C hief Engineer OAKLAND PRESS Charlie Crumm, Reporter BOARD OF COMMISSIONERS James VanLeuven, Administrative Director Sheryl Mitchell, Analyst Harvey Wedell, Analyst Nancy Wenzel , Committee Coordinator APPROVAL OF THE PREVIOUS MINUTE S Crawford moved approval of the minutes of June 5, 2003, as printed. Supported by Zack. Motion carried on a voice vote. PUBLIC COMMENT: 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 July 10, 2003 None. 5. CONTINGENCY REPORT Current Contingency Fund Balance is $271,334. Two items will affect this balance. Both involve putting money in Equalization contracts, Township of Highland and some amendments for the second quarterly forecast. The County has received a payment from Royal Oak Township. Two items on the agenda will affect the equity designated fund ba lance, $103,000 for the jail data warehouse and $517,428 for Thin Client. Patterson moved to Receive and File the Contingency Report dated June 26, 2003. Supported by Gregory. Motion carried on a voice vote. CONSENT AGENDA 6a. MR #03143 WEST NILE VIRUS FUND REIMBURSEMENT FOR PROJECT IN BLOOMFIELD TOWNSHIP – FISCAL YEAR 2003 6b. MR #03144 WEST NILE VIRUS FUND REIMBURSEMENT FOR PROJECT IN THE CITY OF BIRMINGHAM – FISCAL YEAR 2003 ALLOCATION 6c. MR #03145 WEST NILE VIRUS FUND REIMBURSMENT FOR PROJECT IN COMMERCE TOWNSHIP AND VILLAGE OF WOLVERINE LAKE – FISCAL YEAR 2003 ALLOCATION 6d. MR #03148 WEST NILE VIRUS FUND REIMBURSEMENT FOR PROJECT IN THE CITY OF FERNDALE – FISCAL YEAR 2003 ALLOCATION 6e. MR #03149 WEST NILE VIRUS FUND REIMBURSEMENT FO R PROJECT IN THE CITY OF HAZEL PARK – FISCAL YEAR 2003 ALLOCATION 6f. MR. #03150 WEST NILE VIRUS FUND REIMBURSMENT FOR PROJECT IN THE CITY OF BERKLEY – FISCAL YEAR 2003 ALLOCATION 6g. MR #03151 WEST NILE VIRUS FUND REIMBURSEMENT FOR PROJECT IN THE CITY OF LAKE ANGELUS – FISCAL YEAR 2003 ALLOCATION The Oakland County Board of Commissioners established a West Nile Virus Fund Disbursement Policy in an effort to assist cities, villages and townships with mosquito control measures to prevent the spread of the West Nile Virus and to help project the health, safety and welfare of the people of Oakland County. The above seven resolutions are requests for payment of expenses incurred in connection with mosquito control projects. 7. MR #03152 ENVIRONMEN TAL INFRASTRUCTURE FUND REIMBURSEMENT FOR PROJECT IN THE CITY OF MADISON HEIGHTS – FISCAL YEAR 1999, 2000, 2001, 2002 AND 2003 ALLOCATIONS FINANCE COMMITTEE Page 3 July 10, 2003 The Oakland County Board of Commissioners established Environmental Infrastructure Funds and a Disbursement Policy in an effort to increase the share of dollars flowing into infrastructure projects for the County and its cities, villages and townships. The City of Madison Heights is requesting reimbursement for expenses directly related to the Miracle Road water main upgrade, Miracle Road sanitary sewer upgrade, storm sewers for Miracle Drive, Freda, Karam, Dallas and Palmer for the George W. Kuhn Drain Projects in the amount of $129,908.98 annually from the Environmental Infrastructure Fund. No additional appropriati on is required. Suarez moved approval of the attached suggested Fiscal Notes for Items 6a, 6b, 6c, 6d, 6e, 6f, 6g, and 7. Supported by Crawford Motion carried on unanimous roll call vote with Moffitt absent. 8. TREASURER DEPARTMENT – REORGANIZATION The Treasurer Department had two GF/GP employees take advantage of the Early Retirement Incentive Program. Per the Incentive Program only 50% of the cost of the General Fund positions can be used to fill retirement vacancies. The Treasurer's proposal includes the deletion of the Chief/Treasurer Accounting position with the duties being reassigned to the Deputy Treasurer and Cash Accounting Supervisor. The Treasurer Department meets the goals established by the Board of Commissioners, with net savings of $106,073 with the proposed reorganization. Palmer moved approval of the attached suggested Resolution. Supported by Zack. Motion carried on unanimous roll call vote with Moffitt absent. 9. MR #03140 DRAIN COMMISSIONER – RUMMELL RELIEF DRAINAGE DISTRICT DRAIN The Drain Commissioner is requesting authorization for a Bond Issue pursuant to provisions of the Drain Code of 1956, as amended. The project includes bridge replacements with the City of Southfield responsible for 100% of the bridge replace cost of $1,628,000. The drain repair portion of the project cost is estimated at $2,082,000 and will be apportioned to the benefiting public corporations, Oakland County, City of Southfield, City of Lathrup Village, Village of Beverly Hills and the Township of South field. Oakland County is responsible for $62,204 for road drainage. It is anticipated the 2003 series bonds will be sold in July 2003, with interest rate determined by the market. Funding is available in the FY 2003 Non -Departmental Current Drain Assessment account to cover the county's drain repair construction apportionment allowing the County to opt out of the bond sale and avoid annual bond interest payments. No additional General Fund monies or amendments are required. Gregory moved approval of the attached Fiscal Note. Supported by Suarez. Webster moved to amend the Fiscal Note by removing the words, "Section 478 of" from Item 1. Supported by Middleton. Motion carried on a voice vote. Main motion as amended carried on a unanimous roll call vote with Moffitt absent. 10. COUNTY EXECUTIVE EMERGENCY RESPONSE AND PREPAREDNESS – FEMA SUPPLEMENTAL GRANT FOR TERRORISM PREPAREDNESS 2002 – ACCEPTANCE The County Executive – Emergency Response and Preparedness Division has been awarded $70,746 for the updating of Emergency Operations Plans with special emphasis on terrorism preparedness. The grant covers one existing Office Assistant I (PTNE) position. Acceptance of this FINANCE COMMITTEE Page 4 July 10, 2003 grant does not obligate the County to any future commitment and continuation is con tingent upon continued future levels of grant funding. Patterson moved approval of the attached suggested Fiscal Note. Supported by Zack. Motion carried unanimously on a roll call vote with Moffitt and Crawford absent. 11. MR #03139 – PERSONNEL DEPARTMENT – REORGANIZATION The Personnel Department had nine recent retirements through the Early Retirement Incentive Program which resulted in an 18% reduction of total staff and a 50% reduction in Supervisory Staff. The Personnel Department contributed $231,632 toward the Budget Task goals during Phase I Budget Reductions through position deletions. Proposed changes include a change in title for the department, divisions, units and certain classifications, the creation of new classifications, transfer of positions and a change in funding for two positions resulting in a net savings of $46,818. Palmer moved approval of the attached suggested Fiscal Note. Supported by Middleton. Patterson moved to Report to the Full Board with the recommendation MR #03139 be a mended as follows; insert the following paragraphs at the beginning of the resolution: "WHEREAS the Board of Commissioners' Miscellaneous Resolution #02236 requires that a 50% reduction in the cost of positions vacated through the Incentive Program for Re tirement shall be adhered to before filling retirement vacancies; and WHEREAS a total of 118 County Executive Department employees opted to retire under this program, nine (9) of which were from the Personnel Department, and a total of 68 County Executive Department positions were deleted during Phase I of the Budget Reduction, with two (2) of them from the Personnel Department; and WHEREAS, THE County Executive Departments have met the requirement of Miscellaneous Resolution #02236." Supported by Suarez . Motion carried on a voice vote. Main motion carried on unanimous roll call vote with Moffitt absent. 12. PERSONNEL – UPDATE ON EMPLOYEE BENEFITS OPEN ENROLLMENT The Personnel Department supplied a copy of the information sent to affected employees regarding their benefits. Included were the new rates as well as explanations of the mail order program, the three-tier prescription program and a comparison of the medical plans. In addition a Benefits Summary was prepared for each employee. Suarez moved to Receive & File. Supported by Middleton. FINANCE COMMITTEE Page 5 July 10, 2003 Commissioner Patterson voiced his concern by objecting to the promotion of the prescription mail order program. Motion carried unanimously on a roll call vote with Moffitt absent. 13. MR #03138 DEPARTMENT OF INFORMATION TECHNOLOGY – THIN CLIENT COMPUTING PROPOSAL Information Technology has identified Thin Client computing as a strategy for the execution of commonly used application software on a group of servers allowing the end -user devices to be a personal computer or Thin Client device. Thin Client computing will serve as a means to control future operating costs and provide many other benefits. Information Technology proposes a phased approach for implementation. Phase I is to establish a baseline configuration and deployment strategy at a cost of $740,840. $223,412 is available in the Information Technology Fund Budget for internal staff costs and $517,428 is available in General Fund Designated Fund Balance. Patterson moved approval o f the attached suggested Fiscal Note. Supported by Crawford. Motion carried unanimously on a roll call vote with Moffitt absent. 14. DEPARTMENT OF MANAGEMENT AND BUDGET/EQUALIZATION DIVISION – APPROVAL OF CONTRACT FOR OAKLAND COUNTY EQUALIZATION DIVISION ASSISTANCE SERVICES WITH CHARTER TOWNSHIP OF HIGHLAND The Equalization Division provides a number of services to local units of government including original assessments, reappraisals, and file maintenance. The Charter Township of Highland is requesting a contract for these services for 2003 -2005. Crawford moved approval of the attached suggested resolution. Supported by Palmer. Motion carried unanimously on a roll call vote with Moffitt absent. 15. DEPARTMENT OF MANAGEMENT OF BUDGET – FISCAL YEAR 2003 SECOND QUARTER FINANCIAL FORECAST AND BUDGET AMENDMENTS The Fiscal Services Division forecasts that the County will complete Fiscal Year 2003 with a favorability of $4,037,015 in the General Fund/General Purpose Operations. This surp lus is in addition to the $12,069,288 that was transferred to the Budget Transition fund for use towards the FY 2004 Budget. GF/GP includes all operations except Grants, Enterprise Funds and Internal Services Funds. This overall favorability is split between receiving $1,545,477 less revenue than budgeted and expending $5,582,492 less than budgeted. FINANCE COMMITTEE Page 6 July 10, 2003 Zack moved approval of the attached suggested resolution. Supported by Palmer. Motion carried unanimously on a roll call vote with Moffitt absent. COMMUNICATIONS-CONSENT AGENDA Department of Management and Budget / Purchasing - Contract Exception Report for the Months of April and May This item appeared on the June 5, 2003 agenda. Commissioner Palmer asked that the Drain Commissioners' no-bid contract exc eption with DW Krane be set aside from the rest of the report and requested the Drain Commissioner appear before the Committee to provide additional information on this contract. Commissioner Palmer reported the responsible Drain Commissioner employees were on vacation and would appear at the next scheduled Finance Committee meeting to answer questions. A. Department of Management and Budget/Purchasing – Contract Exception Report for June 2003 B. Sheriff's Department Homeland Security Overtime Program Grant Application C. Sheriff's Department FY 2003 State Criminal Alien Assistance Program Reimbursement Application D. Department of Public Services/Community Corrections Division – 2003-2004 Michigan Department of Community Health/Office of Drug Control Policy State Incentive Project Grants Application for Waterford Instep E. Department of Information Technology – Radio Project – Financial Status/Issues F. Department of Information Technology – Various CLEMIS Operating Fund Financial Statements – Six Months Ended March 31, 2003 G. Personnel Department/Department of Management and Budget - Postemployment Benefits Other Than Pensions Benefits (OPEB) – GASB Requirements H. Community and Home Improvement Division – FY 2003 Comprehensive Housing Counseling Grant Application I. Notice of Hearing – Request to Transfer Industrial Facilities Exemption Certificate from Stegner Electric Controls, Inc. to Stegner Controls, L.L.C., at 2155 Executive Hills Blvd., Auburn Hills, MI J. Notice of Public Hearing – Request for Industrial Facilities E xemption Certificate for Torque Traction Integrations Technologies, Inc., for facility at 4440 N. Atlantic Blvd., Auburn Hills, MI K. Notice of Public Hearing – for Obsolete Property Rehabilitation Exemption Certificate at: a. 18 W. Lawrence, Pontiac, MI b. 39-41 N. Saginaw, Pontiac, MI c. 47700 Woodward Avenue, Pontiac, MI d. 71-75 W. Huron Street, Pontiac, MI L. Update on Non 52 nd District Courts Technology Incentive Funds a. 43rd District Court Security Project b. 48th District Court Access Control System COMMUNICATIONS-CONSENT AGENDA (Continued) Suarez moved to Receive & File Communication – Consent Agenda Items A through L. Supported by Patterson. Motion carried on a voice vote. CLOSED SESSION Corporation Counsel Litigation Settlement – Thomas vs. Oakland County et al Suarez moved that the meeting be closed for the purpose of discussing the above captioned FINANCE COMMITTEE Page 7 July 10, 2003 item. Supported by Crawford. Motion carried on a voice vote. The Chairperson declared the meeting closed at 10:30 a.m. The meeting resumed in open session at 10:50. Palmer moved that Corporation Counsel be authorized to proceed with a settlement in Thomas vs. Oakland County et al as outlined in the closed session. Supported by Zack. Motion carried on a roll call vote with Moffitt absent: Moss, Gregory, Palmer, Patterson, Webster, Middleton, Suarez and Zack – yes Crawford – no OTHER BUSINESS/ADJOURNMENT Budget Hearing: Mr. Soave distributed a handout "Oakland County, Michigan FY 2004 and FY 2005 County Executive Recommended Budget, An Overview, July 10, 2 003" and "Categorical Analysis of Recommended Budget Fiscal Year 2004 and Fiscal Year 2005 dated July 24, 2003". Mr. Soave explained Oakland County operates on a rolling biennial budget, adopting appropriations for one fiscal year and a spending plan for the second fiscal year. The General Fund/General Purpose FY 2004 recommendation of $359.5 million is approximately $14 million below the FY 2003 amended budget. No new programs or positions, unless supported by new revenue or specific expenditure reductio ns, will be considered. There are continued concerns regarding the economic slowdown and potential state budget reductions. The Budget is divided into three fund types: Special Revenue Funds, Proprietary Funds and General Fund/General Purpose. Patterson moved to refer the proposed Capital Improvement Program 2003 through 2007 to the Planning & Building Committee for consideration. Supported by Palmer. Motion carried on a unanimous roll call vote with Moffitt absent. Chairperson Moss indicated he would like to begin Budget Hearings at the next meeting, July 24, 2003 after the regular Finance Committee meeting starting with the Departments that have requested additional personnel, Community and Economic Development, Risk Management, 52 nd District Court and the general salary increase issue. The Sheriff's Department and the Drain Commissioner will be scheduled for the August 7th meeting. An additional Finance Committee meeting will be scheduled for August 8, 2003, at 9:00 a.m. at this time Mr. Soave requested the Committee retain their copies of "Recommended Budget Fiscal Year 2004 Fiscal Year 2005 and General Appropriations Act, July 1, 2003", "Categorical Analysis of Recommended Budget Fiscal Year 2004 and Fiscal Year 2005, July 24, 2003", and "Oakland County, Michigan FY 2004 and FY 2005 County Executive Recommended Budget An Overview, July 10, 2003". The Committee requested a separate schedule indicating funds going to Community Mental Health and the Road Commission. There being no other business to come before the Committee, the meeting was adjourned at 11:40 a.m. FINANCE COMMITTEE Page 8 July 10, 2003 __________________________________ Nancy Wenzel, Committee Coordinator __________________________________ James H. VanLeuven, Jr., Administrati ve Director NOTE: The foregoing minutes are subject to Committee approval.