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HomeMy WebLinkAboutMinutes - 2004.06.10 - 35912CHUCK MOSS Chairperson BILL BULLARD Vice Chairperson GEORGE SUAREZ Minority Vice Chairperson June 10, 2004 Chairperson Moss called the meeting of the Finance 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, Bill Bullard, George Suarez, Charles Palmer, Hugh Crawford, Greg Jamian, Martin Knollenberg, Christine Long, Vincent Gregory, Helaine Zack COMMITTEE MEMBERS ABSENT WITH NOTICE: Peter Webster OTHERS PRESENT : AVIATION Karl Randall, Manager CIRCUIT COURT Kevin Oeffner, Administrator Libby Smith, General Jurisdiction Administrator COMMUNITY & HOME IMPROVEMENT Karry Rieth, Manager Carla Spradlin, Planner CORPORATION COUNSEL William Pierson, Assistant Counsel EXECUTIVE OFFICE Doug Williams, Deputy Executive Bob Daddow, Assistant Deputy Executive FACILITIES MAINTENANCE Dick Johnston, Manager FISCAL SERVICES Tim Soave, Manager Nancy Fournier, Chief LaVerne Smith, Supervisor Joe Matkosky, Analyst Prentiss Malone, Analyst Jennifer Amalfitano, Analyst HUMAN RESOURCES Ed Poisson, Director Mary Holden, Deputy Director Jennifer Mason, Supervisor Brenthy Johnston, Analyst Judy Fandale, Supervisor Kathy Gaberty, Retirement Specialist INFORMATION TECHNOLOGY Phil Bertolini, Director Colleen Prosyniuk, User Support, CLEMIS MANAGEMENT & BUDGET Laurie VanPelt, Director Art Holdsworth, Deputy Director PURCHASING Joe Hylla, Manager Jack Smith, Chief SHERIFF Michael McCabe, Undersheriff Dale Cunn ingham, Business Manager Ann Russell, Jail Administrator 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 Hugh D. Crawford Peter Webster Greg Jamian Martin J. Knollenberg Christine Long Vincent Gregory Helaine Zack FINANCE COMMITTEE Page 2 June 10, 2004 TREASURER Pat Dohany, Treasurer COMMUNITY MENTAL HEALTH William Allen, Chief Executive Officer Michael Garrett, Chief Financial Officer AXE & ECKLUND Peter Ecklund, Bond Counsel E-VERGE Kerem Urus, E -Financial System Project Manager GABRIEL, ROEDER, SMITH & CO. Jim Koss, Actuary PLANTE & MORAN, LLP Joe Heffernan BOARD OF COMMISSIONERS Eric Wilson, District #3 Sheryl Mitchell, Analyst Helen Hanger, Sr. Committee Coordinator APPROVAL OF THE PREVIOUS MINUTES Crawford moved approval of the minutes of May 27, 2004, as printed. Supported by Suarez. Motion carried on a voice vote. PUBLIC COMMENT None. 5. CONTINGENCY REPORT On today's agenda, Item #8 will reduce the Contingency Fund balance of $268,879 by $244,127 to $24,752. Item #9 is anticipated to increase the fund balance by $17,250, to $42,002. The current outstanding balance on the Royal Oak Township Law Enforcement Contract is $57,375.91 and is due June 30, 2004. Mr. Palmer asked how the local communities could access the newly authorized appropriation for the West Nile Virus Program. Mr. Soave responded that the funds were now available to the communities and they have been receiving requests a nd processing them as they are received. Board staff was asked to prepare letters from the commissioners to each community notifying them that the program has been continued. Gregory moved to receive and file the revised Contingency Report dated June 4 , 2004. Supported by Long. Motion carried on a voice vote. REGULAR AGENDA 6. BOARD OF COMMISSIONERS - AWARD OF CONTRACT FOR 2004 OAKLAND COUNTY PROFESSIONAL AUDITING SERVICES The resolution would authorize a contract with Plante & Moran, LLP to condu ct the annual independent audit of the County's financial statements for the fiscal year ending September 30, 2004 through the fiscal year ending September 30, 2008, with an option to include Fiscal Year 2009 and Fiscal Year 2010. Four responses were rec eived as a result of the Request for Proposal process. The Administrative Audit Evaluation Committee completed its review and presented its findings to the Audit Subcommittee on May 27, 2004. Particulars of the Evaluation Committee's FINANCE COMMITTEE Page 3 June 10, 2004 review and recommend ation were outlined in a memo to the Audit Subcommittee dated May 24, 2004. The Audit Subcommittee concurred with these findings and has submitted its recommendation to the Finance Committee in support of a contract with Plante & Moran. Mr. Soave and Ms. Van Pelt reviewed the findings of the Evaluation Committee and explained that considerations in recommending an auditor included price, approach and qualifications of the firm. It is standard practice to contract with an auditor for a five -year period to allow for the learning curve and then move forward. The Government Finance Officers Association recommends that you periodically go out for bid to maintain an independent review. The County was told that if it continues its relationship with the same firm, that firm would have to change partners after seven years. In light of the Enron scandal, industry has become less comfortable in having a long -term relationship with an auditor. Wall Street has indicated that this change in auditors should not impact the County's bonds. Plante and Moran has contracts with many large cities and county governments in both Michigan and Ohio. Mr. Hylla stated that if a contract runs beyond a three -year period, the Board of Commissioners must approve it. Past audit con tracts have been for a five -year period. Crawford moved approval of the attached suggested Resolution. Supported by Palmer. Palmer moved to amend the resolution to require attachment of the May 24, 2004, Administrative Audit Evaluation Committee memo . Supported by Zack. Motion to amend the resolution carried unanimously on a roll call vote with Webster absent. Main motion, as amended, carried on a roll call vote with Jamian voting no and Webster absent. 6. MR #04146 - ENVIRONMENTAL INFRASTRUCTUR E FUND REIMBURSEMENT FOR PROJECT IN THE CHARTER TOWNSHIP OF ROYAL OAK - FY 1999 - 2003 ALLOCATION Royal Oak Township is requesting reimbursement of its Environmental Infrastructure Fund allocations for Fiscal Year 1999 - 2003 of $15,120.58 each, totaling $75,602.90, to be applied to debt service payments incurred in connection with the financing of the environmental remediation and improvements to the Southeastern Oakland County Sewage Disposal System Retention Treatment Facility (George W. Kuhn Drain proj ect). Zack moved approval of the attached suggested Fiscal Note. Supported by Suarez. Motion carried unanimously on a roll call vote with Webster absent. 8. MR #04144 - SHERIFF'S OFFICE - ADDITIONAL POSITIONS FOR SPECIAL OBSERVATION UNIT (K-POD) The Sheriff is requesting that six Deputy II positions and nine Deputy I positions be created in the Sheriff's Office, Corrective Services -Detention Facilites Division/Unit, to staff and secure operations in the newly-completed special observation unit known a s K-Pod. Construction of K -Pod was authorized pursuant to MR #01216 as part of the Capital Improvement Program. Suarez moved to report to amend the resolution, NOW THEREFORE BE IT RESOLVED paragraph, as follows. NOW THEREFORE BE IT RESOLVED that the Board of Commissioners authorizes FINANCE COMMITTEE Page 4 June 10, 2004 the creation of six (6) Deputy II positions and nine (9) Deputy I positions be created in the Sheriff's Office Corrective Services -Detention Facilities Division/Unit. Supported by Palmer. Motion to report to amend carried unanimously on a roll call vote with Webster absent. Suarez moved approval of the attached suggested Fiscal Note. Supported by Palmer. Motion carried unanimously on a roll call vote with Webster absent. 9. MR #04143 - SHERIFF'S OFFICE - INCREASE IN FEES FOR THE RECORDS UNIT The Sheriff is requesting authorization to increase fees charged in the Records Unit as outlined on the resolution attachment, effective July 1. The current fees were established under MR #89308. This action will bring these fees in line with those being charged by surrounding counties and police agencies. The increase in fees will offset a Deputy I position to be added to the Records Unit to assist in the new fingerprinting process for violators of court -ordered Personal Protection Orders and to provide security to the Unit due to a change in location. Additional revenue of $17,250 is anticipated for FY 2004 and $69,000 for FY 2005 and FY 2006. Costs for the new position are included in the FY 2005 and FY 2006 County Execut ive Recommended Budget. Suarez moved approval of the attached suggested Fiscal Note. Supported by Zack. Motion carried on a roll call vote with Long voting no and Webster absent. 10. MR #04142 - CIRCUIT COURT - JUDGEMENT OF SENTENCE PROGRAM MODIFICATION Circuit Court is requesting authorization for an Information Technology project to modify Judgement of Sentence forms as directed by the State Court Administrator's Office. This project will expend 200 remaining hours from a previously authorized In formation Technology project to make program changes due to the addition of judges and reassignment of dockets. Total cost is $20,650. Gregory moved approval of the attached suggested Fiscal Note. Supported by Crawford. Motion carried unanimously on a roll call vote with Webster absent. 11. DEPARTMENT OF FACILITIES MANAGEMENT - EMERALD ASH BORER TREE PLANTING GRANT ACCEPTANCE Facilities Management has been awarded a $29,120 Emerald Ash Borer Tree Planting Grant from the Michigan Department of Natural Resources - Urban and Community Forestry Program for the period April 1, 2004, through May 31, 2005. The award reflects $17,870 in County match funds. Funds will be used to purchase 90 replacement trees. Crawford moved approval of the attached suggeste d Fiscal Note. Supported by Knollenberg. Motion carried unanimously on a roll call vote with Webster absent. 12. DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT - COMMUNITY AND HOME IMPROVEMENT DIVISION - 2004 ANNUAL ACTION PLAN AND CONSOLIDATED GRANT ACCEPTANCE FOR CDBG, HOME AND ESG PROGRAMS AND 2003 -2004 ANNUAL FINANCE COMMITTEE Page 5 June 10, 2004 ACTION PLAN AMENDMENT Community and Home Improvement is requesting authorization to accept the following grant funds: $4,599,000 for the Community Development Block program, $1,458,045 for th e HOME Investment Partnership Grant and $143,282 for the Emergency Shelter Grant. The award also includes $1,600,000 in estimated Home Improvement Revolving Loan Funds, $106,119 in Community Program Income and $500,000 in estimated HOME Revolving Loan Fun ds. A County match of 25% or $328,061 is required for the HOME grant and is available in the Non -Department Grant Match line item. Indirect costs are not paid due to administrative and planning limits. The funding period is May 1, 2004, through April 30 , 2005. The 2003 Annual Action Plan and Consolidated Grant Acceptance will also be amended to reflect actual funding generated by the Home Improvement Revolving Loan Fund, the Home Investment Partnership Act Revolving Loan Fund and CDBG Community Program income for the program year May 1, 2003, through April 30, 2004. Palmer moved approval of the attached suggested Fiscal Note. Supported by Suarez. Motion carried unanimously on a roll call vote with Webster absent. 13. RESOLUTION AUTHORIZING THE OAKLAN D COUNTY BUILDING AUTHORITY TO FINANCE A PROJECT TO CONSTRUCT HANGARS FOR THE OAKLAND COUNTY AIRPORTS LOCATED IN OAKLAND COUNTY, MICHIGAN The Building Authority is requesting authorization to issue bonds in the aggregate principal amount of not to exceed $6,660,000 for the purpose of remodeling, constructing, furnishing and equipping T-hangars at the Oakland County International Airport and the Oakland/Troy Airport. These bonds shall bear interest at a rate resulting in a net interest cost not to exceed 8 % per annum. Funding for the principal and interest payments will be provided by the Oakland County International Airport Fund. Crawford moved approval of the attached suggested Resolution. Supported by Gregory. Palmer moved to amend the resolution to attach the schematic of the T-Hangars. Supported by Gregory. Motion to amend carried unanimously on a roll call vote with Webster absent. Motion carried unanimously on a roll call vote with Webster absent. 14. MR #04135 - HUMAN RESOURCES DEPARTMENT - SALARY ADMINISTRATION PLAN SECOND QUARTERLY REPORT FOR FY 2004 Human Resources has performed a review of 9 classifications/29 positions under the Salary Administration Plan (SAP) and is recommending that 4 classes/13 positions be upwardly reclassified, 4 class/15 position remain the same and one be downwardly reclassified. Annual costs for salary grade changes to General Fund/General Purpose positions for FY 2004 is $6,998 and for FY 2005 $25,995 and have been budgeted for in the Classification and Rate C hange account. Salary changes for three Automobile Mechanic positions will be funded by the Motor Pool Fund and one Central Employee Records position will be funded by the Water and Sewer Fund. Crawford moved approval of the attached suggested report to c orrect the position number from 12701-02480 to 12701-02400. Supported by Suarez. Motion to report carried unanimously on a roll call vote with Webster absent. FINANCE COMMITTEE Page 6 June 10, 2004 Crawford moved approval of the attached suggested Fiscal Note. Supported by Palmer. Motion carried unanimously on a roll call vote with Webster absent. 15. MR #04138 - DEPARTMENT OF INFORMATION TECHNOLOGY - OUT OF COUNTY FEE STRUCTURE FOR THE OAKLAND COUNTY FIRE RECORDS MANAGEMENT SYSTEM Information Technology is requesting authorization to im plement a fee structure for out of county fire departments to participate in the Fire Records Management System. These agencies will pay the current FRMS annual department fee plus 20%; $1,200 for each additional out county fire station and will assume responsibility for all hardware, software, maintenance and connectivity costs. This anticipated revenue is included in the FY 2005 and FY 2006 County Executive Recommended Budget. Palmer moved to report to amend the resolution as follows. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners approves the attached Oakland County Fire Records Management Out of County Fee Structure and authorizes the Chairperson of the Board to sign the Agreements with any municipalities that choose to join the Fire Records Management System in the future. BE IT FURTHER RESOLVED that each contract between Oakland County and each individual out of county fire department be approved by the Board of Commissioners prior to implementation of the agreeme nt. Supported by Crawford. Motion carried unanimously on a roll call vote with Webster absent. Palmer moved approval of the attached suggested Fiscal Note. Supported by Suarez. Motion carried unanimously on a roll call vote with Webster absent. 16. COMMUNITY MENTAL HEALTH AUTHORITY - ANNUAL REPORT Mr. Garrett distributed a status report on MORC. Mr. Allen reviewed the information. All five Community Mental Health Authority agencies have had balanced budgets since 2002 except MORC. MORC balanced its budget as of September 30, 2003, one year ahead of schedule. The CMHA Board approved a Service Enhancement Plan totaling $8 million for FY 04 for MORC on April 1, 2004. The Authority has also implemented a $.42 per hour wage increase for direct care workers, the majority of which work through MORC. Jamian moved to receive and file information on the Community Mental Health Authority and MORC. Supported by Crawford Motion carried on a voice vote. 17. AN UPDATE ON E-FINANCIAL SYSTEM IMPLEMENTATION PR OJECT Mr. Holdsworth noted that the first three pages of the handout were information received by the committee last fall. Phase I is under way. Phase II costs are $6.1 million to implement the PeopleSoft Financial System and Supply Chain Management. Ph ase III includes PeopleSoft Portals and Analytics at an estimated cost of $3.9 million. At this time the project is ahead in terms of scope and is below budget. A request for Phase II appropriation will be brought to committee in September. FINANCE COMMITTEE Page 7 June 10, 2004 Jamian moved to receive and file the E -Financial System Implementation Project Status Update Presentation. Supported by Long. Motion carried on a voice vote. 18. RETIREMENT BOARD - IMPACT ON ACTUARIAL CALCULATION FOR RETIREES' HEALTH CARE TRUST AS A RESULT OF CHA NGES FROM GASB Mr. Williams explained that new Governmental Accounting Standards will require the County to include retiree health care on the balance sheets in 2006. About 19 years ago the County established a VEBA (Variable Employee Benefit Association ) trust to cover retiree health care costs and a $19 million unanticipated gain resulting from the settlement of a lawsuit was placed into this fund. Oakland County is one of the few governmental units that have actually put funding toward liability. The methodology used to determine the County's liability for retirement health care needs to be changed and the Administration will be back in July with a proposal. Ms. Holden advised the committee that the Oakland County Sheriff's Deputies Association has filed an unfair labor practice for all employees on the health care co -pay issue with the Michigan Employment Security Commission (MERC). The Administration is asking for Summary Disposition because they do not believe this belongs before MERC. COMMUNICATIONS A. Department of Management and Budget/Purchasing Division - Contract Exception Report for the Month of May (dated June 2, 2004) B. Treasurer's Office - Charter of Royal Oak Township - Default for Installments and Interest on Bond for George W. Kuh n Drain C. County Executive/Arts, Culture & Film - Michigan Council for Arts and Cultural Affairs Fiscal Year 2004 Regranting Program Grant Application Long moved to receive and file communications A -C. Supported by Jamian. Motion carried on a voice vote. D. Department of Information Technology - Radio Project - Financial Status / Issues (dated May 26, 2004) Mr. Daddow updated the committee on the previously reported $2.8 million shortfall that was projected for December 31, 2006, at the tail en d of the project when the surcharge will expire. At this time there is now a surplus of almost $3 million due to a number of activities beneficial to the project. Post-1998 agencies that came in after the project began are now included in the cost model to provide more accurate projections. Mr. Daddow also provided a brief status report regarding the Cobo II project. This information was provided to each commissioner and is also available on the County's web page. The project has been in discussion since last year by the Tourism Action Group. Oakland County was not a participant until this past February. To date nothing has been agreed to regarding authority, governance, operations or funding. The proposal would provide 1 million contiguous square feet of exhibit space. To fill this need, the existing facility could be expanded or a new facility could be built. FINANCE COMMITTEE Page 8 June 10, 2004 If nothing is done, there is still a maintenance issue that needs to be addressed. Private entrepreneurial activities regarding the development of a casino, convention center and hotel on the riverfront may impact this project. Oakland County supports the private sector approach that would eliminate the need for any liability on behalf of the taxpayers. Long moved to receive and file Communic ation D. 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 10:35 a.m. ________________________ _______________________________ Helen Hanger Nancy Wenzel Senior Committee Coordinator Committee Coordinator NOTE: The foregoing minutes are subject to Committee approval.