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HomeMy WebLinkAboutMinutes - 2007.03.15 - 36159MIKE ROGERS Chairperson EILEEN KOWALL Vice Chairperson HELAINE ZACK Minority Vice Chairperson March 15, 2007 Chairperson Rogers called the meeting of the Finance Commi ttee 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 Mike Rogers, Eileen Kowall, Helaine Zack, Sue Ann Douglas, Hugh Crawford, Tom Middleton, Christine Long, Jeff Potter, David Coulter, Helaine Zack, David Woodard, Tim Greimel COMMITTEE MEMBERS ABSENT OTHERS PRESENT AVIATION Karl Randall, Manager CENTRAL SERVICES David VanderVeen, Director CLERK Jim Van Leuven, Deputy Clerk CORPOR ATION COUNSEL Judy Cunningham, Corporation Counsel DISTRICT COURT Jim VerPloeg, Administrator DRAIN COMMISSIONER Philip Sanzica, Chief Engineer EQUALIZATION Dave Hieber, Manager Robert Scripture, Appraiser EXECUTIVE OFFICE Gerald Poisson, Deputy Bob Daddow, Deputy Phil Bertolini, Deputy FACILITIES Dave Ross, Director Mike Hughson, Property Specialist FISCAL SERVICES Tim Soave, Manager Nancy Fournier, Chief LaVerne Smith, Supervisor Joe Matkosky, Analyst Gaia Piir, Budget System Coordinator HUMAN RESOURCES Nancy Scarlet Karen Jones, Supervisor Clare Cheesman, Analyst INFORMATION TECHNOLOGY Ed Poisson, Director MANAGEMENT & BUDGET Laurie Van Pelt, Director Art Holdsworth, Deputy Director PARKS & RECREATION Frank Trionfi, Administrator Joe Figa, Chief of Design Jon Noyes, Landscape Designer OAKLAND COUNTY BOARD OF COMMISSIONERS 1200 N. TELEGRAPH ROAD, PONTIAC, MI 48341-0470 Telephone (248) 858 -0100 FAX (248) 858-1572 FINANCE COMMITTEE Sue Ann Douglas Hugh D. Crawford Tom Middleton Christine Long Jeff Potter David Coulter David Woodward Tim Greimel FINANCE COMMITTEE Page 2 March 15, 2007 OTHERS PRESENT CONTINUED PURCHASING Joe Hylla, Manager SHERIFF Michael McCabe, Undersheriff Mark Newman, Captain ROAD COMMISSION FOR Brent Bair, Managing Director OAKLAND COUNTRY Larry Crake, Road Commissioner Patrick Carty, Attorney BOARD OF COMMISSIONERS Larry Doyle, Administrative Director Harvey Wedell, Sr. Analyst Sheryl Mitchell, Sr. Analyst Helen Hanger, Sr. Committee Coordinator AGENDA Long moved the agenda, with the addition of items 12 and 13 for Parks and Recreation. Supported by Douglas. Motion carried on a voice vote. APPROVAL OF THE PREVIOUS MINUTES Crawford moved approval of the minutes of March 1, 2007, as printed. Supported by Zack. Motion carried on a voice vote. PUBLIC COMMENT None. 5. FY 2007/FY 2008 C ONTINGENCY REPORT Item 10 on today’s agenda will reduce the FY 2007 Contingency Fund balance from $180, 450 to $125,559. Commissioner Kowall asked why reimbursement for Audit Division salaries was part of the Contingency Fund. Mr. Soave explained that several outside audits will not occur this year, resulting in a reduction of revenue. Zack moved to receive and file and Contingency Report dated March 7, 2007. Supported by Douglas. Motion carried on a voice vote. REGULAR AGENDA 6. MR #07038 – SHERIFF’S OFFICE – USE OF AUTOMOBILE THEFT PREVENTION AUTHORITY FORFEITED FUNDS The Sheriff’s Office is requesting authorization to use $6,400 from its $10,259.29 Auto Theft Prevention Forfeiture account balance to pay for officer training to enhance law enforcement efforts compliant with state law for use of these funds. Twelve officers wil l attend the North Central Regional Chapter of the International Association of Auto Theft Investigators Annual Motor Vehicle Theft Conference in Appleton, FINANCE COMMITTEE Page 3 March 15, 2007 Wisconsin to examine the latest automobile theft and insurance fraud detection methods. Budget amendments will be made as outlined in the Fiscal Note. Zack moved approval of the attached suggested Fiscal Note. Supported by Potter. Motion carried unanimously on a roll call vote with Middleton, Coulter and Woodward absent . 7. MR #07037 – HUMAN RESOURCES DEPARTMENT – SALARY ADMINISTRATION PLAN 1 ST QUARTERLY REPORT FOR FY 2007 The Human Resources Department has completed its quarterly review of salary grade placement classifications for 7 classifications / 13 positions and is recommending that 5 clas sifications / 11 positions be upgraded and two classifications / 2 positions remain the same. Budget amendments will be made as outlined in the Fiscal Note. Zack moved approval of the attached suggested Fiscal Note. Supported by Kowall. Motion carried unanimously on a roll call vote with Middleton and Woodward absent. 8. DEPARTMENT OF PUBLIC SERVICES/COMMUNITY CORRECTIONS – TRANSFER OF REVENUE TO SUPPORT THE IMPLEMENTATION AND OPERATION OF THE GREENHOUSE AT THE COMMUNITY SERVICE GARDEN AT SPRINGFIELD OAKS The Community Corrections Division is requesting authorization to utilize $8,000 in Weekend, Weekday Alternative for Misdemeanants (W WAM) revenue, from $22,337 collected to date for FY 2007, to cover and support the ongoing operation of the greenhou se at the Community Service Garden in the Springfield Oaks County Park. This greenhouse was donated by Bordine’s Nursery to Parks and Recreation in 2005 and will be used to offer programs for seniors and to start earlier in the spring the growing of vegetables and other plants for harvest and donation to the Oakland County Foodbank. Parks has already absorbed $17,000 for the gravel road and electrical installation. Additional funds will be used for start up costs for a gas line, water, electrical, a small parking lot and storage shed. Other contributors include the Road Commission, DTE Energy, Clarkston Rotary and Oakland County 4 -H. Budget amendments will be made as outlined in the Fiscal Note. Crawford moved approval of the attached suggested Fiscal Note. Supported by Long. Motion carried unanimously on a roll call vote with Middleton and Woodward absent. 9. DEPARTMENT OF CENTRAL SERVICES – OAKLAND COUNTY INTERNATIONAL AIRPORT – GRANT PROGRRAM ACCEPTANCE – DESIGN EXTENSION OF RUNWAY 9L AND TAXIW AY D, RELOCATION OF TAXIWAY M, POROUS FRICTION COURSE FOR RUNWAY 9R/9L/27R The Oakland County International Airport has received a Michigan Department of Transportation Grant Contract for a project consisting of the extension of Runway 9L and Taxiway D, r elocation of Taxiway M, and a porous friction course and noise analysis study for extension of Runways 9R/27L and 9L/27R . The total project cost of $117,000 consists of federal funding of $93,600, state funds of $20,475 and a required local match of $2,925. The funding period is 36 months from the date of award. The Michigan Department of Transportation shall act as agent to administer the project. No budget amendment is required as funding for the required local match is available within the Airport F und. Crawford moved approval of the attached suggested Fiscal Note. Supported by Long. Motion carried unanimously on a roll call vote with Middleton and Woodward absent. FINANCE COMMITTEE Page 4 March 15, 2007 10. DEPARTMENT OF MANAGEMENT AND BUDGET – FISCAL YEAR 2007 FIRST QUARTER FINANCIAL FORECAST AND BUDGET AMENDMENTS Management and Budget is requesting authorization to implement various budget amendments as detailed in the Resolution in accordance with the General Appropriations Act, Sections 22 and 23. The March 1, 2007 Letter of Transmittal indicates an overall favorability of $12,406,201 in General Fund/General Purpose operations resulting from receiving $15,361,540 more revenue than anticipated and expending $2,955,339 more than budgeted. Zack moved approval of the attached suggested Resolution. Supported by Long. Motion carried unanimously on a roll call vote. 11. DEPARTMENT OF MANAGEMENT AND BUDGET – REVENUE ESTIMATES FOR FY 2008 AND FY 2009 Revised Revenue Estimates for FY 2008 and FY 2009 were distributed with revisions made to the property tax line item. The taxable value for FY 06-07 was originally calculated with 3.75%. Mr. Soave explained that discussion with Mr. Hieber and his staff has determined that this figure is too high so adjustments were made using a rate of 2.25% for ‘08 and 2% for ‘09. As of yesterday, the State House has passed legislation to stop pop ups for 18 months. If this happens, the County will only get inflation and any new construction as additional property tax revenue and figures for ’08 and ’09 may need to be adjusted even lower. Mr. Soave indicated that they would come back to committee with revised figures once the Board of Review has completed its work. He reported that state reimbursement is projected to only increase the child care subsidy because of an agreement reached last year with the Department of Human Services (DHS) that they would pay Oakland County 50% of costs regardless of the budget or cap. The County also received DHS money owed from two years ago so this figure has been adjusted upward. The rest of the County’s revenue remains flat and grants will probably go down (indirect cost capture). Mr. Soave further explained that the County used to collect taxes ahead of time but as a result of the tax shift several years ago , they will not know exactly what taxes are collected until May, which is the 7 th month of the fiscal year. So, it is necessary to use estimates for budgeting purposes. Ms. Van Pelt reported that the Administration is anticipating bad news from its actua ries on retiree health care costs. January had the highest inflationary costs in history. Mr. Hieber distributed and reviewed information on the Components of Taxable Value. He explained that the total taxable value x the County’s levied .419 mills is its general operating fund. Components of taxable value include the consumer price index, new construction and pop -ups or uncapping of taxable value. Figures for ‘08 will not be finalized until ‘08 so he and Mr. Soave worked with historical figures to e stimate the 2.25% for the 2008 fiscal year as indicated. Chairman Rogers asked how many permits for new construction they were seeing and whether the pop up limitation passed by the House was a Proposal A change that would need go to a vote of the people. Mr. Hieber indicated that construction permits are down as much as 50% in some communities. Commissioner Middleton explained that this component of taxable value could be authorized legislatively. Commissioner Potter stated that a legislative change delaying the pop -ups for 18 months would result in a decline of people buying new homes, possibly caus ing additional foreclosures. FINANCE COMMITTEE Page 5 March 15, 2007 Mr. Soave distributed an additional handout showing the calculation of preliminary revenue estimates. These figures include $8.8 million captured by tax increment finance authorities (TIFAs) and downtown development authorities (DDAs) each year and the percentage of delinquent taxes not collected, which is less than 1%. Ms. Van Pelt suggested that commissioners talk to thei r communities to make sure they are not overestimating their revenue. Chairman Rogers indicated that he would like to see if the County’s DDAs and TIFAs are actually producing what they claimed they would. He indicated he would ask the Planning and Economic Development staff to provide this information. Mr. Hieber reminded the committee that the County has no say in any authorities established prior to 1994 (prior to adoption of Proposal A). Commissioner Potter stated that a lot of the money being captu red is from these older authorities and that the newer authorities have been very positive. Mr. Hieber reported that one in every 100 homes is in foreclosure and if they are placed on the market they will affect the values of existing properties. Commissioner Coulter asked if an increase in delinquencies is anticipated. Mr. Soave indicated that the amount identified is what they anticipate will never be collected. Mr. Hieber explained that if the taxes are not collected from the owner, many times the lenders will pay the taxes to clear the title. Coulter moved to receive and file the Revenues Estimates for FY 2008 and FY 2009 . Supported by Douglas. Motion carried on a voice vote. 12. PARKS AND RECREATION – SUPPORT FOR SUBMISSION OF GRANT APPLICATION TO THE MICHIGAN DEPARTMENT OF NATURAL RESOURCES TRUST FUND TO PROVIDE MATCHING FUNDS FOR THE ADDISON OAKS PROPERTY ACQUISITION The Parks and Recreation Commission is requesting approval to submit a grant application, due by April 2, 2007, for the purpose of acquiring 100 acres of property for Addison Oaks. The application requests funding of $1,400,000 with $616,000 (44%) from State funds and $784,000 (56%) local matching funds. The matching funds are available within the ¼ mil Parks Fund revenues. The property is part of what is known currently as the Upland Hills Farm, a privately owned and operated demonstration farm. Kowall moved approval of the attached suggested Fiscal Note. Supported by Middleton. Motion carried unanimously on a roll call vote. 13. PARKS AND RECREATION – SUPPORT FOR SUBMISSION OF GRANT APPLICATION TO THE MICHIGAN DEPARTMENT OF NATURAL RESOURCES TRUST FUND TO PROVIDE MATCHING FUNDS FOR THE DEVELOPMENT OF THE ADDISON OAKS TRAIL CONNECTOR The Parks and Recreation Commission is requesting approval to submit a grant application, due by April 2, 2007, for the purpose of acquiring funds to develop the Addison Oaks connector trail. The proposed 1.7 FINANCE COMMITTEE Page 6 March 15, 2007 mile trail connector will extend from the Cranberry Lake Preserve through the Par k to Bald Mountain State Recreation Area. The application requests funding of $520,000 with $228,800 (44%) from State funds and $291,200 (56%) local matching funds. The matching funds are available within the ¼ mil Parks Fund revenues. Douglas moved approval of the attached suggested Fiscal Note. Supported by Kowall. Motion carried unanimously on a roll call vote. Long moved to reconsider the Fiscal Note for MR #07020 – Department of Facilities Management – Approval and Acceptance of Lease Agreeme nt with the Road Commission for Oakland County – Traffic Information Center Located in the Information Technology Building. Supported by Crawford. Roll Call: Ayes: Kowall, Zack, Douglas, Crawford, Middleton, Long, Potter, Rogers Nays: Coulter, Woodward, Greimel Motion carried. 14. MR #07020 – DEPARTMENT OF FACILITIES MANAGEMENT – APPROVAL AND ACCEPTANCE OF LEASE AGREEMENT WITH THE ROAD COMMISSION FOR OAKLAND COUNTY – TRAFFIC INFORMATION CENTER LOCATED IN THE INFORMATION TECHNOLOGY BUILDING Facilities Management & Operations (FM&O) is requesting authorization to enter into a lease agreement with the Road Commission for Oakland County for use of approximately 6,540 square feet in the Information Technology Building for use as a Traffic Operations Ce nter. A lease for this purpose was originally entered into pursuant to MR #95310 and expired July 31, 2006. The new lease will be for an additional five-year term through July 31, 2011, at the rate of $414.50 per square foot with annual increases or decreases based on County operations and maintenance costs. FM&O has calculated the estimated cost to operate and maintain the lease space for FY 2007 at $148,620, with lease payments to Oakland County of $94,830. The $53,790 difference will be covered by FM&O Fund Balance so no budget amendment will be necessary. No further extension of this lease will be granted. Mr. Ross revie wed space utiliza tion by the Road Commission in comparison to the remaining square footage of the Information Technology building occupied by IT staff. He explained how the original lease costs were derived and that at that time t he IT basement space was not scheduled for any use and the RCOC had lost its lease in Troy and was in need of space for its Traffic Operations Center (TOC). The RCOC space costs do include footage for mechanical rooms and rest rooms. The rate for the entire building is the same at $14.50 per square foot. Ms. Van Pelt noted that the County does charge back costs for space occupied by grant programs. Commissioner Coulter asked if by not charging the RCOC for common space the County was setting a precedent with other departments who might only want to pay for net space due to budget issues . Mr. Soave explained that RCOC revenue resulting from this lease is outside money and, except for grants, all other building space is paid for from county funds through an internal services fund . Commissioner Douglas further explained that this is an internal budgeting process wherein General Fund money goes into each department’s budget and is paid back to the Building Fund for the use of County office space. She noted that in recent years the RCOC has allowed the County to utilize its gas pumps for an 8% charge while everyone else is charged 18%. FINANCE COMMITTEE Page 7 March 15, 2007 Mr. Bair noted that the RCOC does occasionally use IT’s first floor conference room or the auditorium but that this activity is not linked to IT operations. Mr. Bair advised the committee that, at the County’s request, the RCOC has linked the Emergency Response and Prepared ness Unit to MDOT’s freeway cameras through the TOC. The RCOC also had an extra Direct TV line p rimarily used for the weather channel and ran it up to the IT director’s conference room. Commissioner Zack indicated that while her area does not have Coun ty roads, she does w ork closely with them on traffic signals and other issues. Commissioner Potter asked how many RCOC employees were housed in this leased space. Mr. Hughson estimated 13 and Mr. Poisson reported that IT space houses about 200 employees. Commissioner Douglas informed the Committee that the Boy Scouts currently lease building space from the County for $1. However, this is also the last lease for them at that cost. Commissioner Greimel indicated that the issue was always whether these ch arges were fair to other county departments. After hearing this presentation , however, he is now convinced it would not be fair to charge the RCOC more. Commissioner Kowall asked why it took so long for Facilities to bring a new lease forward after the previous one had expired in August, 2006. Mr. Ross explained that because this was going to be the last lease, discussions with attorneys took longer than anticipated. Middleton moved approval of the attached suggested Fiscal Note. Supported by Dougl as Motion carried unanimously on a roll call vote. COMMUNICATIONS A. Department of Management and Budget / Purchasing Division – Contract Exception Report for the Months of January and February, 2007 B. Circuit Court – FY 2007 Drug Court Discretionar y Grant Program Application C. Economic Development and Community Affairs – Community & Home Improvement Division – FY 2007 Consolidated rant Application for Community Development Block Grant, Home Investment Partnership Grant, American Dream Down -Payment Initiative and Emergency Shelter Grant D. Department of Information Technology – CLEMIS Funds – Financial Statements and Schedules for the Quarter Ended December 31, 2006 E. Notice of Public Hearing on February 21, 2007 for Openings, Issuing an Industri al Development District to Construct a New Manufacturing Facility at 50 W. Howard and Consider a Personal Property Tax Abatement for Openings to Transfer Remaining Portion of Industrial Facilities Exemption Certificate F. Notice of Hearings on March 5, 20 07 for an Industrial Facilities Exemption Certificate for Energy Steel & Supply Co. for Facility Located on 2715 Palden Dr., Auburn Hills, MI 48326 FINANCE COMMITTEE Page 8 March 15, 2007 G. Notice of Hearings on March 5, 2007 for an Industrial Facilities Exemption Certificate for Pella Window and Doors for Facility Located at 1026 Doris Rd., Auburn Hills, MI 48326 H. Notice of Hearings on March 7, 2007 for OLHSA Building LLC and Ultimate Soccer Agenda LLC for a Brownfield Redevelopment District Zack moved to receive and file the Communications. Supported by Middleton. 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 10:20 a.m. ________________________ _______________________________ Helen A. Hanger Lawrence M. Doyle Senior Committee Coordinator Administrative Director NOTE: The foregoing minutes are subject to Committee approval.