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HomeMy WebLinkAboutMinutes - 2006.08.17 - 36111CHUCK MOSS Chairperson MIKE ROGERS Vice Chairperson TIM MELTON Minority Vice Chairperson August 17 , 2006 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, Mike Rogers, Tim Melton, Charles Palmer, Hugh Crawford, Eric Wilson, Greg Jamian, Christine Long, David Coulter, Helaine Zack, Dave Woodward COMMITTEE MEMBERS ABSENT None. OTHERS PRESENT CIRUCIT COURT Judge Wendy Potts, Chief Judge Judge James Alexander Kevin Oeffner, Administrator Lisa Langton, Family Court Administrator EXECUTIVE OFFICE Jerry Poisson, Deputy Executive Robert Daddow, Deputy Executive Phil Bertolini, Deputy Executive FISCAL SERVICES Tim Soave, Manager Nancy Fournier, Chief Wayne Keller, Analyst Linda Pearson, Analyst Prentiss Malone, Analyst Nancy Falardeau, Analyst Joe Rozell, Analyst Monica Tinsley, Analyst HEALTH & HUMAN SERVICES Thomas, Gordon, Director HUMAN RESOURCES Nancy Scarlet, Director Jennifer Mason, Manager INFORMATION TECHNOLOGY Ed Poisson, Director Lisa Oppmann, Supervisor MANAGEMENT & BUDGET Laurie Van Pelt, Director MEDICAL CARE FACILITY Cynthia Davis, Manager PROSECUTING ATTORNEY David Case, Assistant Prosecutor SHERIFF Michael McCabe, U ndersheriff Dale Cunningham, Business Manager 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 August 17, 2006 OTHERS PRESENT CONTINUED BOARD OF COMMISSIONERS Larry Doyle, Administrative Director Harvey Wede ll, BOC Analyst Sheryl Mitchell, BOC Analyst Julia Ruffin, BOC Liaison Helen Hanger, Sr. Committee Coordinator MINUTES Palmer moved approval of the previous minutes of July 27, 2006, as printed. Supported by Crawford. Motion carried on a voice vote. PUBLIC COMMENT None. CONTINGENCY REPORT The Contingency Fund balance of $ $335,986 will not change with today’s agenda. The Grant Match Line Account will be reduced from $7,609,788 to $2,994,059 with adoption of agenda items 6 and 7. Wilson moved to receive and file the FY 2006 Contingency Report dated August 10, 2006. Supported by Rogers. Motion carried on a voice vote. REGULAR AGENDA 6. CIRCUIT COURT/FRIEND OF THE COURT – FISCAL YEAR 2007 COO PERATIVE REIMBURSEMENT PROGRAM (CRP) CONTRACT ACCEPTANCE The Friend of the Court is requesting authorization to accept a Michigan Department of Human Services FY 2007 Title IV-D Cooperative Reimbursement Program grant award of $11,477,480 for the period of October 1, 2006 through September 30, 2007. The total award includes state funding of $7,477,480 , a County match of $3,852,035, an d fees of $148,015. Additionally, there is a contract-funded State supplement allocation of $113,152. A budget amendment will be made as outlined in the Fiscal Note. Palmer moved approval of the attached suggested Fiscal Note. Supported by Crawford. Motion carried unanimously on a roll call vote. 7. PROSECUTING ATTORNEY – FY 2007 COOEPRATIVE REIMBURSEMENT PROGRAM (CRP) GRANT ACCEPTANCE The Prosecuting Attorney is requesting authorization to accept a Michigan Department of Human Services FY 2007 Title IV-D Cooperative Reimbursement Program grant award of $2,310,228 for the period October 1, 2006 through September 30, 2007. The total award includes federal funds of $1,524,790, a County match of $763,694 and State supplement of $21,804. Indirec t costs of $172,025 are also recoverable under this grant. Funds are included in the FY 2007/FY 2008 Executive Recommended Budget and budget amendments will be made as outlined in the Fiscal Note. FINANCE COMMITTEE Page 3 August 17, 2006 Palmer moved approval of the attached suggested Fiscal Note. Supported by Wilson. Motion carried unanimously on a roll call vote. 8. PROSECUTING ATTORNEY – FY 2007 CRIME VICTIMS RIGHTS GRANT ACCEPTANCE The Prosecuting Attorney is requesting acceptance of a Michigan Department of Community Health 2007 Victim Rights Grant for $188,900 for the period of October 1, 2006 through September 30, 2007. No County match is required. The grant includes funding for supplies, materials and salaries for three Victim Advocate positions and one Victim Rights Leader pos ition. No budget amendment is required. Palmer moved approval of the attached suggested Fiscal Note s. Supported by Wilson. Motion carried unanimously on a roll call vote. 9. DEPARTMENT OF ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS - FY 2006 REGIONAL RE GRANTING ADMINISTRATIVE SERVICES PROGRAM GRANT ACCEPTANCE – MICHIGAN COUNCIL FOR ARTS AND CULTURAL AFFAIRS The Department of Economic Development & Community Affairs is requesting authorization to accept a Michigan Council for the Arts and Cultural Affai rs $10,600 administrative grant for services relating to the FY 2006 Regional Regranting P rogram. The award amount is $2,600 more than anticipated in the FY 2005/FY 2007 Budget. The local match amount of $10,600 is available in the FY 2006 / FY 2007 Budg et. A budget amendment will be made as outlined in the Fiscal Note. Palmer moved approval of the attached suggested Fiscal Note. Supported by Zack. Motion carried unanimously on a roll call vote. 10. DEPARTMENT OF ECONOMIC DEVELOPMENT & COMMUNITY AF FAIRS - ARTS, CULTURE & FILM FY 2006 REGIONAL REGRANTING SERVICES PROGRAM GRANT ACCEPTANCE – MICHIGAN COUNCIL FOR ARTS AND CULTURAL AFFAIRS The Department of Economic Development & Community Affairs is requesting authorization to accept a Michigan Council for the Arts and Cultural Affairs $31,700 FY 2006 Regional Regranting Program grant award. The award amount is $6,500 less than anticipated in the FY 2006/FY 2007 Budget. No local match is required. A budget amendment will be made as outlined in the Fiscal Note. Zack moved approval of the attached suggested Fiscal Note. Supported by Coulter. Motion carried unanimously on a roll call vote. 11. MR #06159 – DEPARTMENT OF INFORMATION TECHNOLGOY – THIRD QUARTER 2006 DEVELOPMENT APPROPRIATION TRANSFER Information Technology is requesting authorization to appropriate Third Quarter 2006 Development costs to benefiting departments of $69,564.03 for Imaging Development to General Fund/General Purpose departments, $117,870.71 to Special Revenue and Proprieta ry Fund departments and $732.00 to non - county agencies. Palmer moved approval of the attached suggested Fiscal Note. Supported by Jamian. Motion carried unanimously on a roll call vote. FINANCE COMMITTEE Page 4 August 17, 2006 12. MR #06160 – DEPARTMENT OF INFORMATION TECHNOLOGY – REVISION OF @CCESS OAKLAND MASTER FEE STRUCTURE TO AMEND RECORDED DOCUMENT PROFILE FEES Information Technology , in conjunction with the Clerk/Register of Deeds , is requesting authorization to revise the @ccess Oakland Master Fee Structure to amend the recorded docum ent profile (RDP) fees. Fees will be restructured as detailed in the resolution. IT will no longer provide maintenance and support of the RDP due to the ability of users to assess this product directly from a new website maintained by Affiliated Computer Services (ACS). ACS currently provides contractual services for the Clerk/Register of Deeds. The RDP subscription of $200 used to offset costs for IT maintenance will no longer be required, resulting in a reduction of revenue of $60,000 based on an ave rage of 300 annual renewals at the $200 subscription rate . This reduced revenue will be re allocated to IT Operations for FY 2007 and FY 2008. The impact on Clerk/Register of Deeds revenue is not yet known due to the changes in fee structure. Budget amendments to the IT Fund will be made as outlined in the Fiscal Note. Palmer moved approval of the attached suggested Fiscal Note. Supported by Rogers. Motion carried unanimously on a roll call vote. 13. BOARD OF COMMISSIONERS – CONTRACT EXTENSION WITH HA VEN INC. TO PROVIDE SERVICES TO VICTIMS OF SEXUAL ASSAULT THROUGH THE SAFE THERAPEUTIC ASSAULT RESPONSE TEAM (START) The resolution would authorize a three -year extension of the current contract with HAVEN, Inc. to provide county residents who are victims of sexual assault or rape with examinations, counseling services and courtroom support through the Safe therapeutic Assault Response Team (START) program. The Undersheriff indicated that they have not lost one case when using this program. Woodward moved approval of the attached suggested Fiscal Note. Supported by Zack. Motion carried unanimously on a roll call vote. 14. DEPARTMENT OF MANAGEMENT AND BUDGET – FISCAL YEAR 2006 THIRD QUARTER FINANCIAL FORECAST AND BUDGET AMENDMENTS This item was carried forward until the next regular meeting. COMMUNICATION ITEMS A. Department of Information Technology – Memo from R. Daddow Re: Telephone Operations Surcharge Crawford moved to receive and file Communication A. Supoprted by Palmer. Motion carried on a voice vote. THE COMMITTEE RECESSED FROM 9:11 A.M. TO 9:21 A.M. OTHER BUSINESS Budget Hearing for FY 2007/FY 2008 Executive Recommended Budget FINANCE COMMITTEE Page 5 August 17, 2006 Medical Care Facility Commissioner Coulter asked for an overview of past events at the Medical Care Facility leading up to the Commissioner’s approval of a $2.7 million second quarter transfer from the General Fund to support the facility and what corrective steps are being taken to address these problems. Mr. Soave explained that the Administration is proj ecting a year-end surplus of $900,000 as a result of the transfer of funds. Revenue is still below projections due to reductions in Medicaid revenue and capacity. Management has reduced costs where possible. Mr. Poisson stated that the Administration is recommending funding for the facility for the next year . He provided an overview of events that have impacted the financial stat us of the Medical Care Facility, including State inspection in October and December, 2005 that identified a number of deficiencies needing to be addressed, staffing and patient issues since that time that further exacerbated the problem and the State’s freeze on filling Medicaid beds for a total of 81 days. The State returned for re-inspection in July. As a result of the State inspections, a consultant was hired to prepare corrective action plans . Additional issues that have impacted the facility include a change in Medicaid rates and competition for patients as new facilities have been built or add itional beds have been added to existing facilities . Agencies such as AAA1-B will offer referrals but mostly they come from hospitals, who usually refer patients to facilities they have relationships with. Facilities Management has estimated that the cost to update the facility t o become competitive would be at least $10.4 million. The average state capacity rate for nursing homes is 88%. The County has budgeted for 85% occupancy (102 patients) for the 120 bed facility. As of today there are 86-87 patients. The budget includes 100 full-time positions, 21 of which are currently vacant. Mr. Poisson noted that positions in this field are difficult to fill even with the County’s benefit package. A Request for Proposal was released and the Administration is currently visiting fa cilities run by the respondents to observe operations. The State has a facilities incentive design program that allows beds to be moved more than three miles, otherwise this activity is limited to a needs review within three miles. The Administration will continue to discuss this issue with the Board. Dr. Gordon noted that he had reported to the General Government Committee on March 13 and May 1 and indicated that they had assigned the marketing function to a higher level employee who will spend one or two days a week personally contacting hospitals and discharge planners, physicians and other facilities to increase occupancy rates. Mr. Soave explained that at one time the pharmacy was run by the Medical Care Facility and provided services to Children’s Village and the Sheriff. The Sheriff then contracted with an outside vendor for these services. As a result, facility revenue and expenses were reduced and several positions were, resulting in a savings of $400,000. Commissioner Jamian noted that he had visited the facility and talked to patients , family and staff and was impressed with the care that patients received. He stated that he often receives inquiries for referrals and that to take 120 beds off line will create a void for Medicaid patients. He asked if other counties subsidize their facilities. Mr. Poisson indicated that there are 36 facilities in the State, including those run by Oakland and Macomb counties. It is his understanding that several of these facilities have voted millages in place or are subsidized. Oakland County has almost 4,000 beds, 79% of which are Medicaid. Ms. Van Pelt noted that this some of this discussion was held during last summer’s budget hearings regarding the changes in pharmacy operations, Medicaid rates and the addition of IV treatment to the facility. She also noted that there was discussion back in March that one of the options was not to take any more patients and to slowly move the others to different facilities if necessary . FINANCE COMMITTEE Page 6 August 17, 2006 Commissioner Coulter and Woodward asked that the Administration continue to update the General Government Committee on issues relating to the Medical Care Facility and to return to the Board for discussion before making a final decision . Circuit Court Commissioner Coulter asked if it was still the Court’s plan to request an additional judge and asked for an update on the Court’s Byrne grant programs. Mr. Oeffner reported that there are two grant programs, the Juvenile Drug Court (JDC) and the Adult Drug Court (ADC). Both programs are funded through Byrne grants and grants from the State Court Administrative Office (SCAO), with a small portion of these programs being supported by the General Fund. The Byrne Grant for the JDC will expire October 1, 2006. The other three grants are set to expire October 1, 2007. A recommendation has been built into the Circuit Court budget to maintain the present levels of funding but the amount to be awarded is not yet known. Mr. Soave explained that the JDC is dependent upon getting reimbursement through the Child Care F und. Ms. Van Pelt reported that the Circuit Court had received instruction from the granting agencies to reapply for the same amount as previous ly awarded. The Court budget has been adjusted in response to this direction. Judge Potts stated that the Circuit Court would like to continue these programs because they have been successful and have helped to save jail beds. Mr. Oeffner explained that if the JDC program was concluded there would be significant out -home placement costs in instead. Options are currently being discussed. Judge Potts indicated that there is pending state legislation to allow for a new judge and that the Circuit Court is looking to come to the Board of Commissioners for a resolution by October to fund a new Judge for 2009 based on the SCAO study that identified a need of three judges for Oakland County. She reported that there have been more trials in the first half of this year than ever previously and that the cases have become more complex . Dockets are 8.4% higher on average than for the rest of the state . Judge Potts also noted that the Circuit Court has reduced its budget by $2.8 million since 2003 and that the Court has been very responsive in addressing jail overcrowding , contributing to the savings in out-county prisoner housing costs. Judge Alexander reported that pending state legislation has been moved from the House and is currently in the Senate Judiciary Committee . The Legislature and the SCAO will need a resolution from Oakland County in support of funding a judge for 2009. Commissioner Coulter asked to be provided with additional statistical information to support the case to pass such a resolution. Commissioner Wilson asked whether the need for a new judge was in the general jurisdiction or family law area. Judge Potts explained that there was a need in family law but the civil criminal docket is becoming more complex and a definite answer would be provided with the presentation of additional information. Mr. Oeffner indicated that the total cost for a new judge to operate in 2009 would be about $475,000. FINANCE COMMITTEE Page 7 August 17, 2006 Commissioner Zack asked for an update on security efforts and whether defense attorney fees, which have not increased in 12 years, was being addressed. Judge Potts explained that the Court is working with Mr. Ross from Facilities Management to continue to address security, especially after -hours security. Mr. Ross reported that the new Executive Office Building (Oakland Schools) Kieva was being set up to operate separately from the rest of the building so that night meetings could be held there. Most of the new security changes are now on line. Judge Potts reported that with the last two budget cycles the Court has requested an increase in defense attorney fees and it has not been supported by the Administration. However, while the Court feels that that an increase would bring defense attorneys more in line with the Prosecutors, it is not really their battle. Mr. Soave advised the Committee that the Defense Bar may be coming before the Board of Commissioners to request an increase. Ms. Van Pelt indicated that an increase for this purpose would amount to $.5 million and that there is no source of funding identified. Judge Alexander invited committee members up to visit the courts. Information Technology Commissioner Coulter asked for a perspective of Information Technology’s (IT) budget priorities and anticipated expenses. Mr. Bertolini explained that IT is a service bureau whose projects are developed and maintain ed for its customers through development of a two-year master plan, updated quarterly, and a leadership group process. Projects are developed with Return on Investment (ROI) data and scope and approach documents and proceed through the Leadership Groups t o be prioritized and then move forward to the Board of Commissioners for final approval. A new master plan will become effective October 1 and quarterly updates will continue to be provided to t he General Government Committee. Customers include Oakland County, its local units, public safety agencies and regional partnerships. The Thin Client project, which replaces workstations and infrastructure, is currently in the second phase of development. The Phase I ROI was realized and Phase II funding was ap proved. Phase II is in place but is not yet completed because the equipment environment has shifted. Delivery of software has changed dramatically and development is now done through a web based format. Pr ices have also dropped dramatically. Once Phase II is completed IT will return to the Board with an impact analysis. Projects in the Land and Assessment Tax area have resulted in lower costs for many of the local units because IT provides a centralized database through Thin Client, as well as a supp ort function. Wireless Oakland is live in the downtown area s of both Wixom and Pontiac. The delay to add other communities is due to discovering more site and engineering work than anticipated but this will not impact the internal process nor result in extra costs. Final roll out is still anticipated by the end of 2007. IT is in the process of preparing a plan for the entire County and will announce any further project delays should they occur. FINANCE COMMITTEE Page 8 August 17, 2006 Sheriff Undersheriff McCabe reported that the latest news from Washington on Bryne grant funding looks promising. Internal discussion on grants, some combined with the Prosecutors Office and Community Corrections, has determined that if funding is reduced priorities would be to maintain those positions on the street. The Undersheriff explained that prisoners were housed out county in an effort to avoid jail overcrowding but these prisoners did not count against the jail population and the County continued to experience overcrowding emergencies . Therefore, the decision was made to no longer house prisoners out-county. The review by the National Institute of Corrections also indicated that the County had enough jail beds but they were not properly utilized. The County is working towards solutions and making progress on this issue. Mr. Soave explained that the $1.7 million budgeted previously for out-county housing has been re-allocated for other purposes with Commissioners’ approval. An amount of $250,000 will be maintained in the Sheriff’s budget to meet out-county housing needs and $600,000 was transferred to the salary adjustment account in anticipating of binding arbitration. Another $150,00 0 or so was used for position s for Circuit Court and the Prosecutor, and with this budget some positions were included to handle fingerprinting . Some part-time probation officers for district court probation were also created. After these needs were met, $557,000 was left and was transferred with Board approval to the Jail Population Management Fund. Mr. Cunningham explained that $200,000 has been spent on out-county housing this fiscal year. He further explained that prior to the increase in jail overcrowding emergencies, $250,000 was what had historically been budgeted. Ms. Van Pelt explained that the County budgets for full employment but if the Sheriff is understaffed he can use his overtime dollars. Mr. Cunningham responded to questions on various other line items. Commissioner Zack asked if Community Corrections had absorbed the work handled previously by the Trusty project coordinators. The Undersheriff indicated that Community Corrections has picked up a lot of this work and he has only received one complaint in the last five or six months. Commissioner Jamian asked for an updated schedule, by judge, on jail utilization. . Chairman Moss took a moment to recognize State Representative Deborah Cherry. Commissioner Woodward asked what the cost would be to house out county those inmates who were being released early as a result of jail overcrowding. Ms. Van Pelt indicated that they could calculate this number and report back. Chairman Moss asked how the Administration intended to issue bonds for its unfunded accrued retiree health care liability and not run into the same problems as Orange County, Calif ornia. Ms. Van Pelt explained that she was not familiar with Orange County’s problems but could speak to what happened in San Diego regarding their pension system. San Diego’s pension retirement board has many members who are covered by that system. They had enhanced their pension benefits and did not recognize the additional burden on the system. The Governmental Accounting Standards Board now has a FINANCE COMMITTEE Page 9 August 17, 2006 statement under review that says in the future if you have an early retirement program it would require an actuarial report to show the impact on your pension system. The other issue was that they may have over valued investments. The 7.5% investment rate proposed for the retirement health care bonds is actually less than what the County has experienced in the past. Communities are required to fund their annual contributions to their pension systems and most are not. Oakland County has an annual required contribution for retiree health care but its pension system is over funded and an ARC is not necessary . Report from Personnel Committee Budget Hearings as of 8/16/06 Jamian moved to accept the report from Personnel Committee for General Salary Increases for FY 2007. Supported by Crawford. Motion carried unanimously on a roll call vote. Report from Planning and Building Committee for 2007 -2011 Capital Improvement Program – Buildings and Utilities Palmer moved to accept the 2007 – 2011 Capital Improvement Program – Buildings report from the Planning and Building Committee. Supported by Coulter. Motion carried unanimously on a roll call vote with Melton absent. Report from Planning and Building Committee for Facilities Maintenance and Operations Division – Buildings and Utilities Palmer moved to accept the 2007 Facil ities Maintenance & Operation s Division – Special Projects Budget report from the Planning and Building Committee. Supported by Crawford. Motion carried unanimously on a roll call vote with Melton absent. Summary of Finance Amendments Rogers moved to incorporate the Summary of Fi nance Committee Amendments into the County Executive’s Recommended Budget for FY 2007 and FY 2008. Supported by Palmer. Motion carried unanimously on a roll call vote. Authorization for Public Hearings Wilson moved to schedule a public hearing for Sept ember 21, 2006, at 9:45 a.m., before the Board of Commissioners, on the FY 2007 and FY 2008 Finance Committee Recommended Budget. Supported by Zack. Motion carried on a voice vote. Authorization of Public Notice Palmer moved to authorize publication of public notice for the public hearing of September 21, 2006, at 9:45 a.m., before the Board of Commissioners, for the FY 2007 and FY 2008 Finance Committee Recommended Budget. Supported by Zack. Motion carried on a voice vote. FINANCE COMMITTEE Page 10 August 17, 2006 Chairman Moss recognized State Representative Fran Amos. There being no other business to come before the committe e, the meeting was adjourned at 11:43 a.m. ________________________ _______________________________ Helen A. Hanger Lawrence M. Doyle Senior Committee Coordinator Administrative Director NOTE: The foregoing minutes are subject to Committee approval.