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HomeMy WebLinkAboutMinutes - 2003.07.24 - 35826CHUCK MOSS Chairperson DAVID L. MOFFITT Vice Chairperson VINCENT GREGORY Minority Vice Chairperson July 24, 2003 Chairperson Moss called the meeting of the Finance 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 C hair; Charles Palmer; William Patterson; Hugh D. Crawford; Peter Webster; Thomas Middleton; Helaine Zack. COMMITTEE MEMBERS ABSENT: George W. Suarez OTHERS PRESENT : CIRCUIT COURT Kevin Oeffner, Administrator COMMUNITY & ECON. DEVELOPMENT Dennis Toffolo, Director CORPORATION COUNSEL Judy Cunningham, Corporation Counsel EXECUTIVE OFFICE L. Brooks Patterson, Executive Doug Williams, Deputy Executive Robert Daddow, Assistant Deputy Executive Gerry Poisson, Assistant Deputy Executive DISTRICT COURT 52-1 Michelle Bilger, Administrator DISTRICT COURT 52-2 Sharon Rupe, Administrator DISTRICT COURT 52-3 Lynda Hammerstein, Administrator Lorna Skipworth, Deputy Administrator DRAIN COMMISSIONER Kevin Larsen, Deputy Joe Colaianne, Attorney Philip Sanzica, Chief Engineer Connie Sims, Environmental Planner Joe Gardner, Construction Inspector Rick DeVisch, Civil Engineer Lee Lease, Accountant FISCAL SERVICES Tim Soave, Manager Nancy Fournier, Chief Lynn Sonkiss, Chief LaVerne Smith, Supervisor Joe Matkosky, Supervisor Wayne Keller, Supervisor Gaia Piir, Budget Systems Coordinator Prentiss Malone, Analyst MANAGEMENT & BUDGET Laurie Van Pelt, Director Art Holdsworth, Deputy Director PERSONNEL Ed Poisson, Deputy Director Brenthy Johnston, Analyst Mary Pardee, Analyst OTHERS PRESENT CONTINUED PROSECUTING ATTORNEY Deb Carley, Chief Deputy 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 24,2003 PURCHASING Joe Hylla, Manager Scott Guzzy, Buyer SHERIFF Dale Cunningham, Business Manager Chuck Snarey, Captain TREASURER Pat Dohany, Treasurer CITY OF WIXOM Mike Dornan, Manager Tony Nowicki, Assistant Manager OAKLAND PRESS Charlie Crumm, Reporter BOARD OF COMMISSIONERS James VanLeuven, Administrative Director Sheryl Mitchell, Analyst Harvey Wedell, Analyst Helen Hanger, Sr. Committee Coordinator APPROVAL OF THE PREVIOUS MINUTES Crawford moved approval of the minutes of July 10, 2003, as printed. Supp orted by Middleton. Motion carried on a voice vote. PUBLIC COMMENT: Ms. Van Pelt stated that the County Executive was currently at another meeting but would be attending this morning's meeting of the Finance Committee and would like to make his comme nts once he had arrived. Mr. Moss indicated that the County Executive would be called upon to offer his comments. 5. CONTINGENCY REPORT The current Contingency Fund Balance of $349,450 will not be affected by any items on today's agenda. Zack moved to receive and file the Contingency Report dated July 17, 2003. Supported by Patterson. Motion carried on a voice vote. CONSENT AGENDA 6a. MR #03167 - WEST NILE VIRUS FUND REIMBURSEMENT FOR PROJECT IN THE CITY OF ROCHESTER HILLS - FISCAL YEAR 2003 ALLOCATION Rochester Hills is requesting reimbursement of its FY 2003 $26,149.74 West Nile Virus Fund allocation for expenses incurred in the City's efforts to eradicate mosquito habitat. 6b. MR #03168 - WEST NILE VIRUS FUND REIMBURSEMENT FOR PROJECT IN THE CITY OF LATHRUP VILLAGE - FISCAL YEAR 2003 ALLOCATION Lathrup Village is requesting reimbursement of its FY 2003 $1,536.56 West Nile Virus Fund allocation for expenses incurred in the City's efforts to eradicate mosquito habitat 6c. MR #03169 - WEST NILE VIRUS FUND REIMBURSEMENT FOR PROJECT IN THE CITY OF ROYAL OAK - FISCAL YEAR 2003 ALLOCATION Royal Oak is requesting reimbursement of its FY 2003 $20,490.19 West Nile Virus Fund allocation for expenses incurred in the City's efforts to eradicate mo squito habitat. FINANCE COMMITTEE Page 3 July 24,2003 6d. MR #03180 - WEST NILE VIRUS FUND REIMBURSEMENT FOR PROJECT IN THE TOWNSHIP OF OXFORD - FISCAL YEAR 2003 ALLOCATION Oxford Township is requesting reimbursement of its FY 2003 $8,591.71 West Nile Virus Fund allocation for expenses incurred in the township's efforts to eradicate mosquito habitat. 6e. MR #03178 - WEST NILE VIRUS FUND REIMBURSEMENT FOR PROJECT IN THE CITY OF WALLED LAKE - FISCAL YEAR 2003 ALLOCATION Walled Lake is requesting reimbursement of its FY 2003 $2,433.87 West N ile Virus Fund allocation for expenses incurred in the City's efforts to eradicate mosquito habitat. 6f. MR #03176 - WEST NILE VIRUS FUND REIMBURSEMENT FOR PROJECT IN THE CITY OF HUNTINGTON WOODS - FISCAL YEAR 2003 ALLOCATION Huntington Woods is reques ting reimbursement of its FY 2003 $2,132.50 West Nile Virus Fund allocation for expenses incurred in the City's efforts to eradicate mosquito habitat. 6g. MR #031757 - WEST NILE VIRUS FUND REIMBURSEMENT FOR PROJECT IN THE CITY OF OAK PARK - FISCAL YEAR 2003 ALLOCATION Oak Park is requesting reimbursement of its FY 2003 $10,046.83 West Nile Virus Fund allocation for expenses incurred in the City's efforts to eradicate mosquito habitat. 7a. MR #03170 - ENVIRONMENTAL INFRASTRUCTURE FUND REIMBURSEMENT FO R PROJECT IN THE CHARTER TOWNSHIP OF HIGHLAND - FISCAL YEAR 2003 ALLOCATION Highland Township is requesting reimbursement of its FY 2003 $70,597.81 Environmental Infrastructure Fund allocation for expenses incurred in connection with the M -59 and Milford Road Watermain Extension. 7b. MR #03171 - ENVIRONMENTAL INFRASTRUCTURE FUND REIMBURSEMENT FOR PROJECT IN ROSE TOWNSHIP - FISCAL YEARS 2002 AND 2003 ALLOCATION Rose Township is requesting reimbursement of its FY 2003 $20,555.25 Environmental Infrastructure Fund allocation for expenses incurred relating to the well abandonment program and the Resource Preservation Overlay District. Palmer moved approval of the attached suggested Fiscal Notes for Consent Agenda Items 6a. - 7b. Supported by Crawford. Motion carried unanimously on a roll call vote with Suarez and Moffitt absent. REGULAR AGENDA 8. BOARD OF COMMISSIONERS - PROPOSED CITY OF WIXOM DOWNTOWN DEVELOPMENT AUTHORITY - TAX CAPTURE MR #02206 exempted the County from participating in Wixom's ori ginal plan to expand its DDA boundaries. Following this action, Wixom amended its plan and MR #03123 again authorized exemption of County participation until several issues were resolved. The Tax Increment Financing District Review Policy Ad Hoc Committe e has continued to meet with representatives of the City of Wixom throughout this process and Wixom has agreed to eliminate certain lands from its original proposal and to alter the plan in accordance with County recommendations. This resolution would rescind MR #02206 and authorize the County's limited participation in the City of Wixom's amended July, 2002, Downtown Development Authority (DDA) plan as set forth in the attached agreement, maps and exhibits to the resolution. Crawford moved approval of th e attached suggested Resolution. Supported by Patterson. FINANCE COMMITTEE Page 4 July 24,2003 Palmer moved to amend the contract, page 3, paragraph 2 of the NOW THEREFORE IT RESOLVED to strike "including" and insert "excluding." Supported by Middleton. Mr. Palmer indicated he would like to see the capture of Parks and Recreation millage excluded from the contract. Mr. Dohany explained that this issue was discussed numerous times at the Ad Hoc Committee meetings and it was the consensus of the members that all parties involved should share in the tax capture as they would all benefit from the resulting growth of the DDA. Excluding certain millages would result in less tax capture than what was originally anticipated and the time frame for the DDA would need to be extended to make up for th is loss. Mr. Dohany also indicated that paragraph 6 allows for the County to reconsider its participation in this tax capture if Wixom considers entering or enters into any agreement that would alter the amount of lawfully captured revenue from sources ot her than Oakland County. Ms. Cunningham indicated that there was no discussion of excluding Parks and Recreation millage during negotiations with the city of Wixom. She explained that The Oakland County Parks and Recreation Commission (Parks) is not a se parate taxing jurisdiction. The capture of Parks millage is consistent with the County's other DDA contracts. She noted that a June 19, 2003, Court of Appeals decision contains language on how the benefits of tax capture for DDAs goes beyond the boundaries of those DDAs. However, this issue is a matter of general discussion for future policy considerations. Mr. Palmer stated that the issue of excluding the capture of Parks millage has been a regular topic of discussion at the ad hoc meetings dating back t o 1999 when the County received a Parks resolution requesting that its millage not be captured. Because the County is now entering into contractual agreements for tax capture with DDAs, this millage should be considered for exclusion. Mr. Middleton noted that 57% of the DDA would be tax exempt. Mr. Dohany explained that this property could be removed from the DDA plan but that this action would have no impact on the dollar amount being captured. Mr. Webster asked if the City had any intention of sell ing off its properties within the DDA boundaries at any time in the future as this would change the scope of the project. Mr. Dornan indicated that he would prefer that this property be included in the DDA plan. Wixom has no intention of selling any of its properties within the DDA. He explained that the DDA project plan includes $500,000 in Parks improvements that are expected to benefit the region. Motion to amend the contract language failed on a voice vote. Main motion carried unanimously on a roll call vote with Suarez absent. 9. MR #03164 - CIRCUIT AND PROBATE COURT - REORGANIZATION AND PERSONNEL RELATED ACTIONS Circuit Court and Probate Court have reviewed their operations and are requesting authorization to reorganize personnel and related actions to reduce costs over and above their 50% cost reduction goal for retiree vacated positions, a goal that has already been met, and is requesting that these additional savings be credited to the Courts against future budget task reduction requ irements. Actions as outlined in the resolution will result in budget reductions of $3,319 for FY 2003 and $23,541 for 2004. FINANCE COMMITTEE Page 5 July 24,2003 Patterson moved approval of the attached suggested Fiscal Note. Supported by Webster. Motion carried unanimously on a roll call vote with Suarez, Palmer and Crawford absent. 10. PROSECUTING ATTORNEY - FY 2004 VICTIMS OF CRIME ACTS (VOCA) GRANT ACCEPTANCE The Prosecuting Attorney is requesting acceptance of the FY 2004 Victims of Crime Acts Grant award of $122,746 from the Michigan Department of Community Health. This is a 5% decrease from the previous award. The required County match includes a $14,000 cash match and an in - kind match of $10,549, to be provided by voluntary part -time Victim Advocate intern positions. The grant does not allow for recovery of administrative and support costs of $9,164. This amount is included in the FY 04 budget. This is this the fifth year of funding under this grant. Webster moved approval of the attached suggested report to amend the re solution's 1st and 4th WHEREAS paragraphs to strike "122,783" and insert "122,746" to reflect the grant award amount rather than the application amount. Supported by Middleton. Motion carried unanimously on a roll call vote with Suarez, Palmer and Crawf ord absent. Webster moved approval of the attached suggested Fiscal Note. Supported by Gregory. Motion carried unanimously on a roll call vote with Suarez, Palmer and Crawford absent. 11. MR #03165 - SHERIFF'S DEPARTMENT - CONTRACT FOR COURT SECURITY AT THE 48TH DISTRICT COURT - BLOOMFIELD TOWNSHIP FOR 2003/2004/2005 The 48th District Court has contracted with the Sheriff's Department for security since March of 1998 and is requesting authorization to continue the contract for three part-time, non-eligible 1,000 hour a year Court Deputy II positions through the end of FY 2005. All operating costs are covered by contract revenue of $69,576 for FY 04 and $71,756 for FY 05. Zack moved approval of the attached suggested Fiscal Note. Supported by Midd leton. Motion carried unanimously on a roll call vote with Suarez, Palmer and Crawford absent. 12. MR #03166 - SHERIFF'S DEPARTMENT - FIRE DISPATCH SERVICE FOR THE NORTH OAKLAND COUNTY FIRE AUTHORITY FOR 2003 -2007 The North Oakland County Fire Author ity has requested to enter into a four-year contract with the Sheriff for fire dispatch services beginning August 15, 2003. Contract rates are $2,813 for FY 2003, $22,951 for FY 2004, $23,950 for FY 2005, $25,250 for 2006 and $26,000 for 2007. This reven ue will be placed in the Communications unit overtime budget to cover increased workload. Mr. Cunningham explained that as contracts are added, if it is determined there is enough need for an additional dispatcher, funds are taken from this overtime lin e item and placed into the budget for salaries and fringes. Patterson moved approval of the attached suggested Fiscal Note. Supported by Zack. Motion carried unanimously on a roll call vote with Suarez absent. 13. MR #03161 - DRAIN COMMISSIONER - EMERGENCY RESPONSE AND PREPAREDNESS PROJECTS FOR OAKLAND COUNTY OPERATED WATER AND LAKE FINANCE COMMITTEE Page 6 July 24,2003 LEVEL CONTROL STRUCTURES The Drain Commissioner is requesting authorization to proceed with a vulnerability assessment project for the Oxford Township well water supply s ystem, the City of Farmington Hills southwest pressure district, the Oakland County Supervisory Control and Data Acquisition (SCADA) System and for the Pontiac Lake Level Control Structure/Dike 1 in the amount of $74,140. This project is in response to th e amending of the Safe Drinking Water Act by Congress on June 12, 2002, to include the Bioterrorism Preparedness Act. This amendment requires that public water supplies serving populations of greater than 3,300 people complete vulnerability assessments an d update emergency response plans. The consulting firm of Hubbell, Roth & Clark has been hired to complete the project. Funds are available under the previously Designated Fund Balance for Security Enhancement Projects. Mr. Palmer asked if this service could be extended to communities that do not have water systems under the jurisdiction of the Drain Commissioner. Mr. Colaianne explained that separate water system operators have requirements to complete their assessments by a certain date and have eithe r completed them or are under way. The Drain Commissioner operates 23 different water supply systems of which five are required to have assessments. One must be completed by December and the others by June. Following the events of 9 -11-01 the Drain Commissioner met with County Executive staff who suggested that a survey of Drain facilities be done. The County's assessment of its own facilities did not include the Drain Commissioner. An engineering firm was hired to review facility needs. The EPA mandate then came through and the Drain Commissioner decided the scope of contracted services should be expanded. A Request For Proposal (RFP) was issued and 13 firms responded with Hubbell, Roth and Clark being selected through a quality based review. Mr. Colaiainne stated that the Drain Commissioner's office would coordinate its efforts with the County's Emergency Response and Preparedness Unit (ERP). Mr. Crawford asked if the County's water parks had been assessed. Mr. Colaianne replied that the water parks are not under the jurisdiction of the Drain Commissioner but they would be happy to assist the Parks Commission if they so requested. ERP may have already done this assessment. Mr. Webster and Mr. Palmer asked for a copy of the document describing the q uality selection process. Palmer moved to report to amend the resolution, 8 th WHEREAS paragraph, to strike "a consulting firm" and insert "Hubbell, Roth & Clark, Inc." Supported by Gregory. Motion carried unanimously on a roll call vote with Suarez abse nt. Palmer moved approval of the attached suggested Fiscal Note. Supported by Middleton. Motion carried unanimously on a roll call vote with Suarez absent. 14. MR #03162 - DRAIN COMMISSIONER - APPROVAL OF REVISIONS TO THE SCHEDULE OF FEES FOR SOIL ER OSION AND SEDIMENTATION CONTROL ADMINISTRATION AND ENFORCEMENT OF PART 91 The Drain Commissioner is requesting authorization to implement a new fee schedule for the Soil Erosion Program. This schedule has not been updated since 1991 under MR #91209. The new fees will be based on a project classification system of 1 -5. Plan review fees for all classes will be $30. Annual Inspection Fees will range from $70 for a class 1 project to $400 for a class 5 project. These fees shall be adjusted annually on October 1 based on the annual average percentage increase or decrease in the national consumer price index -all items. Fees will be reviewed by the Board of Commissioners every five years beginning September 1, 2008. The Drain Commissioner is also requesting the creation of a Soil Erosion Unit and three Special Revenue (SR) Construction Inspector I positions with vehicles and one SR PTNE FINANCE COMMITTEE Page 7 July 24,2003 Office Assistant I position. Eight existing positions will also be transferred from the Engineering and Construction Unit to this new unit. The new fee schedule includes both direct and indirect overhead costs and is expected to fully fund all 12 positions. Palmer moved to recommend approval of the attached suggested Fiscal Note. Supported by Webster. Motion carried unanimously on a roll call vote with Suarez absent. 15. MR #03163 - DRAIN COMMISSIONER - ROUGE RIVER WATERSHED LOCAL MANAGEMENT ASSEMBLY - MEMORANDUM OF AGREEMENT The Drain Commissioner is requesting authorization to participate as a member of the Rouge Assem bly and approval of the Memorandum of Agreement through which it will be established. The Drain Commissioner or his designee shall serve as the County's representative. There will be no financial obligation to the County for 2003 -2004 other than in-kind administrative services. Should a financial appropriation be required for continued participation after that time, the Drain Commissioner will return to the Board for approval. Mr. Palmer indicated that Planning & Building has reported to the Board of Co mmissioners recommending that the resolution be adopted after receiving written approval from Corporation Counsel and after a determination of the appropriate executor of the Agreement - the Drain Commissioner or the Board Chairperson. Also that letters b e provided from the County Executive and Board Chairperson indicating they have no objection to the Drain Commissioner being the County's representative to the assembly. Mr. Palmer stated that according to the agreement the County Executive could be the r epresentative. He indicated he did not have a problem with the Drain Commissioner being the representative but would like to make sure that this was not an issue with the Executive. He indicated that he has received notice from Corporation Counsel indica ting they have no difficulty with this agreement. Mr. Sanzica explained that it was determined that a collective approach rather than a jurisdictional approach would be best to address pollution issues for the Rouge River. This is a voluntary program. In later years a small amount of funding may need to be contributed. The County is currently receiving a maximum of grant dollars for this program and would like to continue with this assembly. Voting is based on a land area/population formula. Also, the Assembly is subject to the Open Meetings Act. Several members of the committee expressed concern regarding voting shares. Mr. Webster asked what the amount of in -kind service contribution was by the Drain Commissioner. Mr. Sanzica replied that this contribution would be about $30,000 in existing staff time to attend meetings. Mr. Moffitt asked if there is was any chance this group would seek taxing power or if any legislation is pending that would affect this assembly. Mr. Colaianne replied that there currently was no pending legislation that would affect this Assembly. He further stated that if any of the elected bodies involved were to not make an appropriation to continue they would not have voting authority on the Assembly and would not rece ive any of the benefits of being on the Assembly. Palmer moved to report to amend the resolution, Now Therefore Be It Resolved paragraph, to strike "County Drain Commissioner" and insert "Chairperson of the Board of Commissioners." Supported by Moffitt. FINANCE COMMITTEE Page 8 July 24,2003 Motion carried unanimously on a roll call vote with Suarez absent. Middleton moved approval of the attached suggested Fiscal Note. Supported by Gregory. Webster moved to amend the Fiscal Note, paragraph 3: 3. No County general funds shall be appropriated or designated; in the event of financial appropriation the Drain Commissioner must seek subsequent approval from the Board of Commissioners. Supported by Palmer. Motion to amend carried on a voice vote. Main motion, as amended, carried unanimous ly on a roll call vote with Zack absent. COUNTY EXECUTIVE'S COMMENT Mr. Patterson stated that he was in support of a 2% general salary increase. He also spoke in support of the personnel requests for Risk Management, Community & Economic Development and the 52-3 District Court. He noted that the Administration had exceeded its budget task by $670,000. Risk Management - During the Phase I Budget Reductions, a Technical Assistant position for Risk Management was deleted. It was the intent of the Admini stration to physically merge Risk Management and Corporation Counsel into one location and to then spread this workload across remaining staff. Since that time, it has been determined that Risk Management can not break its current lease without a substantial cost to the County. Additionally, relocation of Administration staff to the Oakland Schools building has been delayed due to budget constraints. This position will assist with the processing of liability claims. As a result of this function full cost recovery is anticipated. Community & Economic Development - Mr. Patterson is requesting creation a Deputy Director of Community and Economic Development to offset the oversight workload. Mr. Patterson stated that Mr. Toffolo has been of tremendous assis tance to the county in dealing with recruitment, retention, economic growth and environmental issues at the local and state level. A handout was provided to the committee outlining the number of issues that Mr. Toffolo is active in. Funding is available a s a result of the County Executive meeting its 50% Retirement Incentive Goal. 52-3 District Court - Mr. Patterson stated that the 52-3 is the busiest court in Oakland County. The Court is asking for a User Support Specialist to assist in implementing se veral technology advances for the 52 nd District Court that are anticipated to bring in additional revenues. These initiatives include the Etraffic system, which will allow paying for traffic tickets through the Internet, resulting in a savings of case sta ff time. Mr. Patterson thanked the committee for taking his comments out of order. He also indicated he supported the Drain Commissioner being designated as the County's representative for the Rouge River Watershed Local Management Assembly. Mr. Moss asked that Item 17 be taken up prior to discussion of item 16. 17. MR #03160 - DEPARTMENT OF INFORMATION TECHNOLOGY - REVISION OF @CCESS OAKLAND MASTER FEE STRUCTURE Information Technology is requesting authorization to amend its @ccess Oakland Master Fee Structure to include a standard pricing schedule for shopping cart products and services. These products include such FINANCE COMMITTEE Page 9 July 24,2003 items as maps, park permits, and training classes. This new service is available as a result of the County's strategic rollout of a comp rehensive eGovernment project. Zack moved to recommend approval of the attached suggested Fiscal Note. Supported by Middleton. Motion carried unanimously on a roll call vote with Suarez absent. 16. PURCHASING DIVISION CONTRACT EXCEPTION REPORT - RESPONSE FROM DRAIN COMMISSIONER Mr. Hylla explained that exception reports were for contracts that have already been implemented. He explained that the resolution governing these procedures requires that certain exceptions would need to be reported to the Finance Committee. Mr. Palmer asked Mr. Colaianne why the Drain Commissioner chose not to request an RFP for the professional services work performed by D.W. Krane (April, 2003 contract exception report). Mr. Colaianne explained the particulars leading to this contract. He explained that the Drain Commissioner had received a major change order for almost $1,000,000 on the George W. Kuhn Drain Project. The Drain Office immediately disputed this amount but attempts by staff to negotiate were unsuccessful. Based on the methodology used by Mr. Krane in reviewing the contractor's work, the Drain Commissioner was able to negotiate a lesser amount. The Drain Commissioner uses Mr. Krane as a risk management tool to review change orders. Mr. Colaianne stated that no one currently on staff has this expertise. Ms. Zack stated that it is not a question of whether this person should be selected but that there should have been a Request for Proposal to find out if there are others who are qualified to perform this service. Mr. Crawford requested information on the December, 2002 Hubbell, Roth & Clark contract exception for $80,000. He requested a copy of the Request for Qualified Bidders (RFQ) Mr. Colaianne explained that this contract went through the Drain Of fice's RFQ process. In the course of the Drain Commissioner implementing ISO (International Standardization Organization ) procedures, the Drain Office has fully integrated with the County's purchasing procedures, with the exception of construction projects. Mr. Palmer noted that the Drain Commissioner has had 15 contract exceptions since October, 2001. Mr. Moss stated that the committee has made the Drain Commissioner's office aware of its concerns and that it would like to see that they follow the Co unty's purchasing procedures. At this time, the County Executive informed the committee that a press conference was scheduled for tomorrow in Southfield for the new Miracle League -Softball Park. COMMUNICATIONS A. Update on Non 52nd District Courts Technology Incentive Funds - 51st District Court Collections Project Palmer moved to receive and file Communication Item A. Supported by Crawford. Motion carried on a voice vote. THE COMMITTEE RECESSED FROM 10:57 A.M. - 11:10 A.M. FINANCE COMMITTEE Page 10 July 24,2003 OTHER BUSINESS BUDGET HEARINGS: Ms. Fournier reviewed the handout on General Fund/General Purpose, Non -Departmental General Fund Transfers. For FY 2004 $1.5 million (Tri -Party appropriation) was being transferred to the Road Commission and $9.6 million to the Community Mental Health Authority. Ms. Van Pelt reported that all grant match funds will be removed from individual departmental budgets and will be consolidated under one non -departmental account to leverage additional grant funding. This will also insure that these fund s are only used for grant matches and not to offset unfavorability in departmental budgets. At the request of Mr. VanLeuven, Fiscal Services staff explained the other non -departmental general fund transfers identified on the handout. Mr. Soave explained that the transfer to the Building Authority is service payments on outstanding debt for construction projects. This amount fluctuates from year to year. The transfer to the Building Fund is for the Capital Improvement Program. Funding for CLEMIS, Fire Records Management and call-taking equipment was previously accounted for in other parts of the budget but has been placed into the 2004 budget as non - departmental appropriations. The transfer to Building/Grounds is for Special Projects and was reduced to $350,000 from a historical amount of $500,000 to $650,000. Mr. Soave explained the budget process and advised the committee that if there were any items they would like to consider further, these items could be placed on an amendment list for additiona l consideration during the final budget wrap -up on August 28. Ms. Scarlet reviewed the revised vacancy report. A revised position history was also provided to the committee. She explained that these positions were budgeted for and could be filled now that the hiring freeze is no longer in effect. The chart identifies whether a vacancy has been for less than or greater than 6 months. Mr. Poisson stated that they have cautioned departments that the state budget remains unsettled. For that reason, departments are not moving quickly to fill these vacancies. Mr. Palmer asked to be provided with the number of dollars involved for these positions. Mr. Middleton informed the Committee that the Personnel Committee had reported out its concurrence with the County Executive's recommendation for a 2% general salary increase and placed the positions for 52 -3 District Court, Community & Economic Development and Risk Management on the amendment list. There was discussion regarding on salary rates and the effect on the Sheriff's law enforcement contracts. Fiscal Services and Executive staff explained that the current 5 -year contracts expire this year and that the proposed 2% salary increase has been incorporated into the contract assumption rates being discussed with the local communities. The current contracted deputies cost more than the County was charging and the County is working with the locals to recover these costs. The contracts will also contain a provision for 312 arbitration. Mr. Holdsworth explained the County was pursuing a full cost recovery gradually over five years, with an average increase of about 5% a year. 52-3 DISTRICT COURT On behalf of Chief Judge Nicholson, Ms. Hammerstein Ms. Bilger and Ms. Rupe indicated that the courts FINANCE COMMITTEE Page 11 July 24,2003 are in agreement with the County Executive's Budget Recommendations for the 52 nd District Court. She explained that there are currently two user support specialists with a sunset date but the Court is asking to continue only one of these positions. This position will act as liaison to Information Technology and will oversee systems at the Court, review business needs, write policies and procedures and provide staff training. The Court is proposing to increase the default fee from $25 to $30 to offset position costs. These fees are applied to individuals who do not appear for their court hearings. Ms. Hammerstein noted that these fees have not been increased for at least 20 years. Increased estimated revenue of $79,445 is anticipated. Mr. Moss questioned whether th ese court fees and fines were based on service costs or were simply revenue enhancers. He stated that these fees should be reviewed. Ms. Hammerstein noted that the Courts are bound by minimum and maximum rates set by the State Court Administrator's Office and that the proposed fee is about the median of what other courts are charging. The Committee concurred with the County Executive's recommendation. COMMUNITY & ECONOMIC DEVELOPMENT Messrs. Poisson, Williams and Toffolo presented the County Executive 's recommendation to create a Deputy Director of Community and Economic Development. In follow-up to Mr. Patterson's comments, they reviewed the number of functions being handled by Mr. Toffolo in dealing with economic development issues and noted Mr. Tof folo's part in convincing the Governor to re -establish four of the County's road projects. Mr. Williams explained that Mr. Toffolo directly represents the County Executive in his activities and in negotiations. A staff position would not receive the sam e recognition as a direct representative of the County Executive. Ms. Zack asked how the results of creating this position could be quantified. Mr. Williams reported that the County's tax base has increased $28 million over the last 5 years and noted that several magazines have identified Oakland County as number one in state economic growth. He stated that they would be able to quantify the effects of establishing this position as the County moves forward with economic issues. The committee concurre d with the County Executive's Recommendation. Risk Management Ms. Secontine reviewed the information explained earlier in the meeting by the County Executive regarding the request to create a Technical Assistant for Risk Management. Mr. Poisson explained that the previous Deputy County Executive, John Grubba, had begun efforts to create a model with Risk Management functions reporting to Corporation Counsel. While this reporting mechanism has been established, space difficulties have prevented the two fu nctions from being physically combined. Risk Management has a lease agreement for office space on Pontiac Lake Road that will not expire until April, 2005, and the renovation of Oakland Schools to house Administrative staff has been put on hold. This position will be funded from the Building and Liability Fund. The Committee concurred with the County Executive's Recommendation; however, Mr. Moss asked that this position be placed on the amendment list to consider establishing a sunset date. FINANCE COMMITTEE Page 12 July 24,2003 OTHER BUSINESS Mr. Patterson reported that the Moslem Shriner's have purchased and relocated to the Southfield Performing Arts Center building. There being no other business to come before the committee, the meeting was adjourned at 12:45 a.m. ________________________ _______________________________ Helen Hanger James H. VanLeuven, Jr. Senior Committee Coordinator Administrative Director NOTE: The foregoing minutes are subject to Committee approval.