HomeMy WebLinkAboutMinutes - 2004.09.30 - 35943CHUCK MOSS
Chairperson
BILL BULLARD
Vice Chairperson
GEORGE SUAREZ
Minority Vice Chairperson
September 30, 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 Pal mer, Hugh Crawford, Peter Webster,
Greg Jamian, Martin Knollenberg, Christine Long, Vincent Gregory, Helaine Zack
COMMITTEE MEMBERS ABSENT:
OTHERS PRESENT :
CORPORATION COUNSEL Jody Schaffer, Assistant Counsel
EXECUTIVE OFFICE Doug Williams, Deputy Executive
Gerald Poisson, Assistant Deputy Executive
Robert Daddow, Assistant Deputy Executive
FISCAL SERVICES Tim Soave, Manager
Nancy Fournier, Chief
LaVerne Smith, Supervisor
Linda Pearson, Analyst
Michael Pohlod, Analyst
Jennifer Amalfitano, Analyst
HUMAN RESOURCES Ed Poisson, Director
MANAGEMENT & BUDGET Laurie VanPelt, Director
Art Holdsworth, Deputy Director
SHERIFF Dale Cunningham, Business Manager
COATES CONSULTING Pat Coates
OAKLAND PRESS Charlie Crumm, Reporter
BOARD OF COMMISSIONERS Larry Doyle, Administrative Director
Sheryl Mitchell, Sr. Analyst
Harvey Wedell, Sr. Analyst
Helen Hanger, Sr. Committee Coordinator
APPROVAL OF THE PREVIOUS MINUTES
Palmer moved approval of the previous minutes of September 15, 2004, as printed. Supported
by Suarez.
Motion carried on a voice vote.
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
September 30, 2004
PUBLIC COMMENT
None.
5. CONTINGENCY REPORT
The FY 2004 Contingency Fund Balance of $16,272 will not be impacted by items on to day's
agenda. An arrearage remains on the Royal Oak Township Law Enforcement Contract. Mr. Soave
indicated that he has again contacted the Township and is waiting for a response. The contract
includes a provision that would allow for these arrearages to be paid from delinquent taxes.
Ms. Zack indicated that she was asked that the County put its concerns in writing so that both the
Township Supervisor and the Township Board are aware of the situation.
Mr. Soave replied that they would do so.
Jamian moved to receive and file the September 22, 2004, Contingency Report. Supported
by Long.
Motion carried on a voice vote.
REGULAR AGENDA
6. MR #04284 - DEPARTMENT OF FACILITIES MANAGEMENT - REQUEST TO RESCIND
MISCELLANEOUS RESOLUTION NO. 04115 AND APP ROVAL OF LEASE AGREEMENT WITH
THE CHARTER TOWNSHIP OF COMMERCE FOR THE NEW COUNTYWIDE RADIO SYSTEM
Facilities Management is requesting authorization to rescind MR #04115 and to enter into a lease
agreement with Commerce Township. MR #04115 had authorized a Construction License and
Lease Agreement allowing the County to sell the tower, equipment shelter and generator to the
Township for $1 upon completion and the Township to lease the County space on the tower for $1
per year. The Township Board subsequentl y requested that this Agreement be voided and a new
agreement be approved in its place. Under the new agreement, the County will construct, operate
and maintain a new radio tower and related equipment for the new County -wide radio system at
2840 Fisher Avenue. The County may lease space on the tower to the Township at no cost and to
third parties if space is available. The initial term of the lease is 15 years with three renewable five -
year terms. Construction and lease costs will be covered by the 4% em ergency telephone
operational charge levy authorized by MR #99279, pursuant to MCL 484.1401.
Long moved to recommend approval of the attached suggested Fiscal Note. Supported by Palmer.
Motion carried unanimously on a roll call vote.
7. COUNTY EXECUT IVE - EMERGENCY RESPONSE AND PREPAREDNESS - FY 2002
SUPPLEMENTAL FUNDS AMENDED GRANT AGREEMENT FOR TERRORISM PREPAREDNESS -
ACCEPTANCE
Emergency Response and Preparedness is requesting authorization to accept supplemental funds
of $240,000 to conduct vulnerability assessments for two Oakland County Airports and local CVT
public safety buildings. Funding is being awarded under the 2002 Supplemental Appropriations Act
for Further Recovery from and Response to Terrorist Attacks on the United States.
Palmer moved to recommend approval of the attached suggested report. Supported by Crawford.
FINANCE COMMITTEE Page 3
September 30, 2004
Motion carried unanimously on a roll call vote.
8. PARKS AND RECREATION - SUPPORT FOR THE ACCEPTANCE OF THE DONATION OF THE
ELLIS BARN FOR RELOCATION TO SPRINGFIELD OAKS COUNTY PARK AS DOCUMENTED IN THE
ELLIS BARN DONATION AGREEMENT
The Parks and Recreation Commission is requesting authorization to enter into an agreement with RBI33
LLC, who has agreed to donate the Ellis Barn and to assist with the cost of dismantli ng and relocating the
barn to the 4-H Fairground at Springfield Oaks County Park. MR #02192 accepted a $600,000
Transportation Enhancement Program Grant from the Michigan Department of Transportation to fund the
Ellis Barn Relocation project, identifying that the required $150,000 match will be provided by RBI 33 LLC,
Springfield Township, Ms. Ellis, Clarkston State Bank and the Oakland County Parks and Recreation
Commission. This agreement shall be null and void and the barn will revert back to the Donor if all funding
necessary to accomplish this relocation is not obtained.
Mr. Stencil and Mr. Noy explained that the Commission was not requesting County General Funds for this
project. It has taken more than a year to finalize the donation agreement. T his is a federally -funded
project that required public ownership and the receipt of approval from both the Parks and Recreation
Commission and the Board of Commissioners before proceeding. The barn will be dismantled and
relocated by vendors selected by the Commission through the bidding process. The Amish will be
employed to rebuild the structure but they will not be available in the spring and summer during farming
season. The actual moving of the barn will take four to six months. The link between the barn and an
Equestrian Center will allow Parks to pursue grants and program funding for such a program.
Discussion was held regarding removing the designation of a Board of Commissioners' donation of
$375,000 for the Equestrian Center from the Parks' Ca pital Improvement Plan (CIP). Several of the
committee members indicated that they had not formally authorized this appropriation and would like this
footnote removed from the CIP.
Mr. Stencil indicated that the Parks and Recreation Commission would be m eeting the following
Wednesday morning and an amendment to remove this designation could be considered at that time. He
also explained that the out buildings are separate structures, valued under $10,000, and will be subject to a
separate Donation Agreeme nt that will not need Board of Commissioners' approval.
Ms. Schaffer explained that by statute the Parks Commission is required to obtain property in the name of
the County, not the Parks and Recreation Commission. Secondly, the Parks Commission is an ag ency of
the County, not an independent legal body.
Webster moved to report to amend the resolution as follows.
1. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners authorizes the Parks and Recreation Commission to accept said d onation
Agreement as stated above , with said monies for this project to come from Parks and
Recreation funds and funds awarded as a result of grant applications .
2. Add a second BE IT FURTHER RESOLVED paragraph as follows:
BE IT FURTHER RESOLVED that author ization for the Parks and Recreation
Commission to accept said Donation Agreement is contingent upon amendment of the
Parks and Recreation Commission Capital Improvement Plan to delete the reference to the
Board of Commissioners donation.
Supported by Crawford.
FINANCE COMMITTEE Page 4
September 30, 2004
Motion carried unanimously on a roll call vote.
Webster moved approval of the attached suggested Fiscal Note. Supported by Crawford.
Webster moved to amend the Fiscal Note, paragraph 6, to strike "match" and insert "expenditure."
Supported by Crawford.
Motion to amend carried on a voice vote.
Main motion, as amended, carried unanimously on a roll call vote.
9. DEPARTMENT OF MANAGEMENT AND BUDGET - INTEGRATED E -FINANCIAL SYSTEM
PROJECT - APPROPRIATION FOR IMPLEMENTATION PHASE II
Management and Budget is requesting authorization to commence with Phase II implementation of the E -
Financial System, to appropriate $3,671,938 from Designated Fund Balance and $2,000,000 from the
Delinquent Personal Property Tax Administration Fund and to auth orize use of the favorable balance of
$802,990 from Phase I. The two additional appropriations will be transferred to the Major Departmental
Support Projects Fund.
Mr. Holdsworth reviewed the details of the project in conjunction with the presentation ma terials, including
issues regarding Oracle's hostile takeover of PeopleSoft and how this would affect the program. He
explained that support and upgrades, like other major systems, will be an ongoing process and for this
reason the Phase III proposal is l ess defined then it was previously.
Mr. Soave explained that the Delinquent Personal Property Tax Administration Fund is established by
statute to reimburse the County Treasurer for administering the Personal Property tax system. This fund
consists of fees collected, not taxes, and is used to fund several positions that handle this function. The
Treasurer has agreed to the use of $2,000,000 from this fund to support the project.
Commissioner Webster asked about the 16% savings from Phase I that includes Contingency and why this
appropriation could not be addressed with the year -end designations. He also asked if the Return on
Investment (ROI) analysis was an industry standard.
Mr. Holdsworth explained that if the Commissioners did not approve the appro priation for Phase II, it would
fall back to General Fund balance and a request would then need to be made to use General Fund
balance. This Phase I remaining balance will reduce the Phase II budget by 12%.
Mr. Soave explained that this surplus is from an amount previously designated at year -end for this project.
Mr. Bertolini explained that the County's ROI goes further then industry standards to include a cost of six -
year ownership period.
Mr. Jamian asked Mr. Holdsworth how the $803,000 savings were realized.
Mr. Holdsworth explained that a contingency of 5 -15% was built into all Phase I line items. The project
rolled out as anticipated and these funds, as well as the training related line item, were not utilized.
Training was handled in -house by staff.
Mr. Bertolini explained that building contingency into a project of this size is also an industry standard. With
Phase I, it was difficult to determine what issues the County would run into. Phase II contingency includes
about 9% contingency.
FINANCE COMMITTEE Page 5
September 30, 2004
Chairman Moss asked Mr. Holdsworth to update the committee on concerns expressed regarding the Time
and Labor Module.
Mr. Holdsworth explained that the current time and labor system allows attendance clerks to see accrual
banks at the bottom of the attendance screen. The new system will not. The current system was heavily
customized and Management and Budget is trying to avoid any customization to allow for support by
PeopleSoft rather than hiring internal staff. To address this concern, one change has been implemented so
that when an attendance clerk tries to enter an employee's time and not enough has been banked, a popup
screen will appear to show you what is left in their banks. Doing more would require a major customization
that would have to be done every time a major release occurs. Departments will be tracking the amount of
time they are handling this function and an ROI will be done to compare this time over the lifetime of the
project. Departments are also being asked to adjust their approach to approving time off. (A memo from
Mr. Holdsworth to Mr. Larsen - Drain Commissioner; Mr. Ross, Facilities Management; Dr. Gordon, Human
Services and Dale Cunningham and Mike McCabe from the Sheriff's Department was provided to the
committee.)
Mr. Williams stated that the supervisors will need to review requests for time off carefully before they are
approved and submitted to the attendance clerks.
Palmer moved approval of the attached suggested Resolution. Supported by Suarez.
Motion carried unanimously on a roll call vote.
COMMUNICATIONS
Commissioner Long recommended commissioners read Wednesday's Spinal Column article regarding the
commissioners.
OTHER BUSINESS/ADJOURNMENT
There being no other business to come before the committee, the meeti ng was adjourned at 10:35 a.m.
________________________ _______________________________
Helen Hanger Lawrence M. Doyle
Senior Committee Coordinator Administrative Director
NOTE: The foregoing minutes are subject to Committee approval.