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HomeMy WebLinkAboutMinutes - 2006.05.18 - 36087CHUCK MOSS Chairperson MIKE ROGERS Vice Chairperson TIM MELTON Minority Vice Chairperson May 18, 2006 Chairperson Moss called the meeting of the Finance Commit tee 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, Mike Rogers, Tim Melton, Charles Palmer, Hugh Crawford, Eric Wilson, Greg Jamian, Christine Long, David Coulter, Helaine Zack, Dave Woodward COMMITTEE MEMBERS ABSENT Mike Rogers OTHERS PRESENT AUDIT Barb McDermott, Auditor AvIATION Karl Randall, Manager CENTRAL SERVICES J. David VanderVeen, Director CIRCUIT COURT John Cooperrider, Business Administrator COMMUNITY CORRECTIONS Barb Hankey, Manager DISTRICT COURT 52-3 Linda Hammerstein, Administrator Lorne Skipworth, Deputy Administrator DRAIN COMMISSIONER Tim Prince, Chief Engineer EQUALIZATION Dave Hieber, Manager Shannon Moore, Clerk EXECUTIVE OFFICE Gerald Poisson, Deputy Executive Robert Daddow, Deputy Executive FACILITIES MANAGEMENT Mike Hughson, Property Specialist FISCAL SERVICES Tim Soave, Manager Nancy Fournier, Chief LaVerne Smith, Supervisor Holly Conforti, Supervisor Joe Matkosky, Analyst Prentiss Malone, Analyst Nancy Falardeau, Analyst Debbie Edwards, Analyst HUMAN RESOURCES Nancy Scarlet, Director Jennifer Mason, Manager Doug Williams, Retirement Administrator Judy Fandale, Supervisor Dean Shackelford, Supervisor 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 Eric Wilson Greg Jamian Christine Long David Coulter Helaine Zack David Woodward FINANCE COMMITTEE Page 2 May 17, 2006 OTHERS PRESENT CONTINUED David VandeGrift, Analyst Megan Navarre INFORMATION TECHNOLOGY Mike Wilk, Deputy Director Janette McKenna, Chief Rick Perry, Supervisor MANAGEMENT & BUDGET Laurie Van Pelt, Director PURCHASING Joe Hylla, Manager SHERIFF Dale Cunningham, Business Manager WASTE RESOURCE MANAGEMENT Tom Law, Manager SHERIFF DEPUTIES ASSOCIATION Gary McClure, President Chad Engelhardt, Asst. General Counsel Deb Percival, Director Gov. Relations SUPPORT SERVICES Todd Birkle, Manager RRRASOC Michael Csapo, General Manager BOARD OF COMMISSIONERS Larry Doyle, Administrative Director Harvey Wedell, Sr. Analyst Helen Hanger, Sr. Committee Coordinator MINUTES Crawford moved approval of the previous minutes of May 4, 2006, as printed. Supported by Palmer. Motion carried on a voice vote. PUBLIC COMMENT None. CONTINGENCY REPORT The Contingency Fund Balance of $352,638 will be reduced by $41,026 with adoption of item 15 to $311,612. Zack moved to receive and file the revised FY 2006 Contingency Report dated May 11, 2006. Supported by Long. Motion carried on a voice vote. REGULAR AGENDA 6. MR #06095 – OAKLAND COUNTY CRIMINAL JUSTICE COORDINATING COUNCIL - REQUEST FOR FUNDING EXPANSION OF TWO JAIL ALTERNATIVE PROGRAMS: ALTERNATIVE TO INCARCERATION PROGRAM AND LIFE SKILLS AND EMPLOYMENT The Oakland County Criminal Justice Coordina ting Council is requesting authorization to expand the Life Employment and Skills Program (LESP) and Alternatives to Incarceration (ATI) program to assist with diversion of offenders from the jail. Currently, the LESP is available only to felony offender under the State Community Corrections grant. One Inmate Caseworker position will be created in the Sheriff’s Office to expand the program to misdemeanor offenders . Completion of the eight-week LESP results in a 25% reduction of sentence for the offender . The ATI program places misdemeanor offenders into treatment and transitional housing facilities directly from the jail, with costs ranging from $14 to $43 per day, lower than FINANCE COMMITTEE Page 3 May 17, 2006 the $83 per day cost to house an offender in the jail. An appropriation of $100,000 for contractual services will be made to expand this program. Funding for FY 2006 for both programs and for the LESP program for FY 2007 is available from the Prisoner Housing -Outside County line item and budget amendments will be made as indicated in the Fiscal Note. Consideration of funding the ATI program for FY 2007 will be taken up at budget time. Commissioner Wilson reported that he had done a 5,000-piece survey last month with questions of whether to construct a new jail or use alternative pro grams and the over-whelming response was to do alternative programs. Commissioner Melton asked whether employers had been lined up who are willing to hire offenders who complete LESP. He also asked how much was budgeted for out-county housing and why offenders were not being housed out-county to avoid overcrowding releases. Mr. Cunningham indicated that they are doing their best to line up employers for LESP participants. He explained that the out-county housing line item has steadily increased from $300,000 to $1.7 million and even though prisoners were being housed out -county the Sheriff was still declaring jail overcrowding emergencies. Commissioner Coulter asked if there would be measurable points for the LESP and would this information be reported back to the Commissioners or the Criminal justice Council. Mr. Daddow explained that the re would be some tracking of program criteria but i t is difficult to track recidivism until a program has been in place f or at least three to five years. The LESP p rogram for felons has only been in place for nine months. However, LESP is patterned after a national program that has provided benefits in recidivism. He also indicated that the housing out-county line item will be reduced for next year. Commissioner Zack noted that treatment literature indicates that cognitive programs like LESP do make an impact. Wilson moved to report to amend the resolution as follows. WHEREAS a Designated Fund Balance of $1,500,000 has been created for Jail Alternative Program Startup. WHEREAS funds are available from the Prisoner Housing -Outside County line item to cover the cost of the position. Supported by Zack. Motion carried unanimously on a roll call vote with Rogers absent. Long moved approval of the attached sugge sted Fiscal Note. Supported by Palmer. Motion carried unanimously on a roll call vote with Rogers absent. 7. MR #06096 – OAKLAND COUNTY CRIMINAL JUSTICE COORDINATING COUNCIL - REQUEST FOR FUNDING FOR ADDITIONAL DATA NEEDS TO MITIGATE THE USE OF THE OAKLAND COUNTY JAIL AND RELATED PROCESS IMPROVEMENTS The Oakland County Criminal Justice Coordinating Council is requesting authorization to fund various data needs and process improvements through the Department of Information Technology that will help to mitigate jail usage. Projects include the felony plea bind -over project, real-time judgment of sentence FINANCE COMMITTEE Page 4 May 17, 2006 project, CJCC Business intelligence projects and changes to the jail management system / IMACS Data Warehouse project, including changes resulting fro m of a recently passed unfunded state mandate and project funding shortfall. A project scope and approach was provided for detailed information. Estimated Funding of $759,000 will come from the Jail Alternatives Program Startup Designated Fund Balance a nd budget amendments will be made as indicated in the Fiscal Note. Coulter moved approval of the attached suggested Fiscal Note. Supported by Crawford. Motion carried unanimously on a roll call vote with Rogers absent. 8. MR #06097 – PROSECUTING ATTOR NEY - REORGANIZATION The Prosecuting Attorney is requesting authorization to reorganize his operations to improve procedures and better align workload with current staff resources. Details are outlined in the resolution. The reorganization will result in General Fund savings of $7,006 for FY 2006 and $20,597 for FY 2007 and will be transferred to the Prosecuting Attorney Extradition Expense line item. Wilson moved to report to amend the resolution as follows. Strike: WHEREAS two of the three positions of Para-Legal Criminal Prosecution currently in Litigation/Circuit Court are proposed to be transferred, the first to the Juvenile Unit to assist with an increasingly congested docket, the second to Warrants to accommodate the Jail Overcrowding Initiative and be paid from the separate Jail Population Management special revenue fund , and the vacant third position will be deleted; and Replace with: WHEREAS two of the three positions of Para-Legal Criminal Prosecution currently in Litigation/Circuit Court are proposed to be transferred, the first to the Juvenile Unit to assist with an increasingly congested docket, the second to Warrants to accommodate the Jail Overcrowding Initiative and be paid by a transfer from the Sheriff’s Prisoner Housing -Outside County line item, and the vacant third position will be deleted; and In the NTBIR paragraph, strike bullet point “G.” as follows: NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners approves the reorganization of the Prosecuting Attorney Department as shown below: G.) To change the funding of one Para-Legal Criminal Prosecution position (4010201 - 07251) from GF/GP to SR (Jail Population Management fund). Supported by Crawford. Motion carried unanimously on a roll call vote with Rogers absent. Wilson moved approval of the attached suggested Fiscal Note. Supported by Zack. Motion carried unanimously on a roll call vote with Rogers absent. 9. MR #06094 – DISTRICT COURT, 3RD DIVISION – REALLOCATING A PORTION OF THE DISTRICT COURT FILING FEES COLLECTED BY 52 -3 DISTRICT COURT TO FUND A NEW SOBRIETY COURT PROGRAM The 52-3 District Court in Rochester Hills is requesting authorization to establish a Sobriety Court program. Public Act 151 of 2005 requires $5 of the local portion of t he filing fees collected on civil cases be to fund a drug treatment court. A revenue line item for collection of this fee was established in 2005 and the FY 2006 FINANCE COMMITTEE Page 5 May 17, 2006 First Quarter Financial Forecast transferred $40,000 from this line item to a new “Drug Treat ment Court Fee” line item to reflect the portion of FY 2006 revenue projected for this account. The Court is requesting use of $19,000 to fund a contracted Program Evaluator, a Public Defender and miscellaneous supplies for the Sobriety Court Program for FY 2006. Budget amendments will be made as outlined in the Fiscal Note. Funding for FY 2007 will be addressed during the budget process. Zack moved approval of the attached suggested Fiscal Note. Supported by Wilson. Motion carried unanimously on a ro ll call vote with Rogers absent. 10. MR #06092 – WASTE RESOURCE MANAGEMENT UNIT – RESOLUTION APPROVING THE INTERLOCAL AGREEMENT FOR WASTE AND RECYCLING SERVICES WITH R ESOURCE RECOVERY AND RECYCLING AUTHORITY OF SOUTHWEST OAKLAND COUNTY - RRASOC Waste Resource Management is requesting authorization to enter into an intergovernmental agreement with Resource Recovery and Recycling Authority of Southwest Oakland County (RRASOC) at a cost of $70,750 to obtain waste and recycling information required to update the County’s Solid Waste Management Plan. The Agreement will provide local community profiles and needs assessment and intergovernmental options for communities regarding waste collection, disposal and recycling. Funding is available within the Waste Resource Management budget. Mr. Law explained that the RRASOC was already preparing this information for its own communities and in discussion with Mr. Csapo it was determined that it would be economically feasible for the RRASOC to handle this effort for the rest of the county for inclusion in the update of the Solid Waste Plan . Crawford moved approval of the attached suggested Fiscal Note . Supported by Palmer. Motion carried unanimously on a roll call vote with Rogers absent . 11. MR #06093 – WASTE RESOURCE MANAGEMENT UNIT – RESOLUTION APPROVING THE INTERLOCAL AGREEMENT FOR WASTE AND RECYCLING SERVICES WITH RSOURCE RECOVERY AND RECYCLING AUTHORITY OF SOUTHWEST OAKLAND COUNTY - RRASOC Waste Resource Management is requestin g authorization to enter in to intergovernmental agreements for the North Oakland Count Household hazardous Waste Consortium. The Agreement requires participating municipalities to fully reimburse the County for all costs incurred for the HO HAZ progra m. Revenue and expenditure appropriations are provided for within the Division’s budget. Crawford moved approval of the attached suggested Fiscal Note. Supported by Palmer. Motion carried unanimously on a roll call vote with Rogers absent. 12. DEPARTMENT OF CENTRAL SERVICES – OAKLAND COUNTY INTERNATIONAL AIRPORT - 2006 GRANT PROGRAM ACCEPTANCE – ENVIRONMENTAL ASSESSMENT FOR RUNWAY EXTENSION The Oakland County International Airport is requesting authorization to accept a MDOT Grant for Federal funds of $55,200, State funds of $12,075, with a required local match of $1 ,725 for an environmental assessment for extension of Runway 9R/27L. Funding for the local match is available within the OCIA Airport Fund. Crawford moved approval of the attached suggested Fiscal Note. Suppor ted by Palmer. FINANCE COMMITTEE Page 6 May 17, 2006 Motion carried unanimously on a roll call vote with Rogers absent. 13. DEPARTMENT OF CENTRAL SERVICES – OAKLAND COUNTY INTERNATIONAL AIRPORT - 2006 GRANT PROGRAM ACCEPTANCE – RELOCATION OF NORTH/SOUTH RUNWAY; RUNWAY SAFETY AREA IMPROVEMENTS; 405 SURVEY FOR EXTENSION OF RUNWAY 9R; INSTALLATION OF FENCING The Oakland County In ternational Airport is requesting authorization to accept a MDOT Grant for Federal funds in the amount of $1,624,000, state funds of $355,250, with a required local match of $50,750 for a relocation of the north/south runway; runway safety area improvements on Runway 27L and an installation of fencing. Funding for the local match is available within the OCIA Airport Fund. Palmer moved approval of the attached su ggested Fiscal Note. Supported by Jamian. Motion carried unanimously on a roll call vote with Rogers absent. 14. DEPARTMENT OF CENTRAL SERVICES – OAKLAND COUNTY AIRPORTS – GRANT ACCEPTANCE AGREEMENT The Oakland County International Airport is request ing authorization to accept a grant agreement that contains the terms and conditions of accepting airport I mprovement Program grants from the Federal Aviation Administration for the purpose of carrying out the provisions of Title 49, United States Code. Acceptance of this contract is needed before any further grants can be accepted. The total project cost of $2,030,000 also includes a $50,750 match available from the Airport Fund. Palmer moved approval of the attached suggested Fiscal Note. Supported by Crawford. Motion carried unanimously on a roll call vote with Rogers absent. 15. DEPARTMENT OF CENTRAL SERVICES – LEASED VEHICLES – FLEET EXPANSION OF TWO (2) VEHICLES FOR DEPARTMETN OF PUBLIC SERVICES – COMMUNITY CORRECTIONS DIVISION Central Services is requesting authorization to add two leased vehicles, both15 -passenger vans, to the County fleet for the Community Corrections Division. The capital acquisition cost of $41,026 is available in the General Fund Contingency. Budget amendments will b e made as outlined in the Fiscal N ote. Palmer moved approval of the attached suggested Resolution. Supported by Long. Motion carried unanimously on a roll call vote with Rogers absent. 16. DEPARTMENT OF CENTRAL SERVICES – LEASED VEHICLES – FLEET EXPANSION OF ONE (1) VEHICLE FOR DRAIN COMMISSIONER – OPERATIONS AND MAINTENANCE DIVISION Central Services is requesting authorization to add one leased vehicle, a 7 -yard dump truck, to the County fleet for the Drain Commissioner, Operations and Maintenance Division. This action will reduce water system costs associated with contracting dump truck services. The capital acquisition cost of $74,000 is available in the Drain Equipment Fund . Budget amendments will be made as outlined in the Fiscal Note. Mr. Birkle explained that a cost benefit an alysis was done and that this is a special revenue purchase that will be funded through future water operations. Commissioner Long asked that the cost benefit analysis be included with future requests such as thes e. FINANCE COMMITTEE Page 7 May 17, 2006 Palmer moved approval of the attached suggested Resolution. Supported by Coulter. Motion carried unanimously on a roll call vote with Rogers absent. Chairman Moss asked that items 19 and 20 be moved up on the agenda. There were no objections. 19. MR #06091 – DEPARTMENT OF INFORMATION TECHNOLOGY – 2ND QUARTERLY DEVELOPMENT TRANSFER The Department of Information Technology is requesting authorization to appropriate and charge 2006 Second Quarter Development costs to benefiting departments. Thes e costs include $1,430,358.93 for data processing development, $6,822.53 for imaging development, $253,337.75 in direct charges to Special Revenue and Proprietary fund departments and $1,114.50 to non -county agencies. Budgets will be amended as detailed in the attachment to the Fiscal Note. Long moved approval of the attached suggested Fis cal Note. Supported by Jamian. Motion carried unanimously on a roll call vote with Rogers and Palmer absent. 20. DEPARTMENT OF MANAGEMENT AND BUDGET /E QUALIZATIO N DIVISION – APPROVAL OF CONTRACT FOR OAKLAND COUNTY EQUALIZATION DIVISION ASSISTANCE SERVICES WITH THE CITY OF HAZEL PAR, TOWNSHIP OF GROVELAND, CHARTER TOWNSHIP OF MILFORD AND THE CHARTER TOWNSHIP OF OXFORD The Equalization Division is requesting author ization to contract with the City of Hazel Park, Township of Groveland and Charter Townships of Milford and Oxford to provide services, including original assessments, reappraisals and file maintenance for real and personal property for contract years 2006 - 2007 and 2007-2008. The contract provides that the sum of $11.76 be paid for each real property description and $11.61 for each personal property description. Coulter moved approval of the attached suggested Resolution. Supported by Wilson Motion carried unanimously on a roll call vote with Rogers and Palmer absent. 21. BOARD OF COMMISSIONERS – SUMMER PROPERTY TAX LEVY UNDER MCL 211.44A (PA 357 OF 2004 The resolution would authorize collection of the second year installment of the tax shift adopted under Michigan Law Public Act 57 of 2004 (MCL 211.44a). Approximately 2.8000 of the County’s authorized 4.19 mills will be levied July 1, 2006. The remaining 1.3900 will b levied December 1, 2006. Coulter moved approval of the attached sugges ted Resolution. Supported by Zack. Motion carried unanimously on a roll call vote with Rogers absent. 17. COUNTY EXECUTIVE – TWENTY-FIRST ANNUAL ACTUARIAL VALUATION REPORT OF THE RETIREES’ HEALTH CARE TRUST AS OF SEPTEMBER 30, 2005 Mr. Williams reviewed the details of the Actuarial’s Valuation Report on the Retirees’ Health Care Trust as of September 30, 2005. He explained that new government accounting rules have required changes to the amortization method used for employees and retirees under the General Non-Union Division (the Division) that include a reduction in the amortization period from 40 years to 30 years ; changes in calculations resulting from the plan being closed t o new hires effective January 1, 2006, and the expected decline in FINANCE COMMITTEE Page 8 May 17, 2006 group payroll; contributions expressed in dollars instead of percent of payroll, and a change in the assumed rate of medical inflation. These changes have resulted in the County’s contribution rate increasing from $37 million in 2004 to $54 million for 2005. T he County has been funding the VEBA for 20 years and valuation assets represent roughly 35% of accrued liabilities. The Administration is looking to address the cost of retiree health care in two ways – on the investment side using long -term funding obligations and with changes to co -pays as proposed by Item 18. Palmer moved to Receive and File the Report of the Twenty-First Annual Actuarial Valuation as of September 30, 2005 of the Oakland county Retirees’ Health Care Trust. Supported by Wilson. Motion carried on a voice vote. 18. MODIFICATIONS TO EMPLOYEE AND RETIREE MEDICAL PLANS The County Executive is propos ing modifications to the medical and prescription drug plans for active employees and retirees . Changes would include an increase in Mast er Medical Deductibles for Blue Cross/ Blue Shield Traditional and BC/BS Preferred Plan from $100 for single individuals to $200 and from $200 for families to $400; increases from Office Visit co -pays for PPO, POS and HAP from $10 to $20; an increase in HAP Emergency Room visit co-pays from $10 to $25 and increases to prescription drug co - pays for retired employees from $5/$10/$15 to $5/$10/$25 for all BCBS plans and from $5/$10/$20 to $5/$10/$25 for the HAP plan (consistent with current active employees). The estimated yearly savings from this proposal would be $1,000,000. Commissioner Crawford asked for the master list of where the benefits questionnaire was sent. Chairperson Moss asked that survey information be included in future mailings regardin g proposed changes to benefits. Melton moved to report to amend the resolution to add the word “future” in front of the word “retirees” in the 9th WHEREAS, the NOW THEREFORE BE IT RESOLVED and the BE IT FURTHER RESOLVED paragraphs. Supported by Coulter Roll Call on the amendment: Ayes: Zack, Woodward, Melton, Crawford, Coulter Nays: Palmer, Wilson, Jamian, Long, Moss Absent: Rogers Motion failed on a tie vote. Jamian moved approval of the attached suggested Fiscal Note. Supported by Palme r. Roll Call: Ayes: Palmer, Wilson, Jamian, Long, Moss Nays: Zack, Woodward, Melton, Crawford, Coulter Absent: Rogers Motion failed on a tie vote. COMMUNICATION ITEMS – CONSENT AGENDA A. Department of Management and Budget / Purchasing Division – Contract Exception Report for the Month of April, 2006 FINANCE COMMITTEE Page 9 May 17, 2006 Commissioner Melton asked that Item A be removed from today’s Consent Agenda and placed on the next agenda and that someone be in attendance who could answer questions. B. Sheriff’s Office – GY 2006 Biometric Identification Devices Grant Application C. Parks and Recreation Commission – Donation for Community Foundation Grant Application Melton moved to receive and file Communications B-C. Supported by Zack. Motion carried on a voice vote. OTHER BUSINESS/ADJOURNMENT There being no other business to come before the committe e, the meeting was adjourned at 11:25.a.m. ________________________ _______________________________ Helen A. Hanger Lawrence M. Doyle Senior Committee Coo rdinator Administrative Director