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HomeMy WebLinkAboutMinutes - 2008.02.28 - 36247MIKE ROGERS Chairperson EILEEN KOWALL Vice Chairperson HELAINE ZACK Minority Vice Chairperson February 28, 2008 Chairperson Rogers 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 Mike Rogers, Eileen Kowall, Helaine Zack, Sue Ann Douglas , Hugh Crawford, Tom Middleton, Christine Long , Jeff Potter David Coulter, David Woodward, Tim Greimel COMMITTEE MEMBERS ABSENT None. OTHERS PRESENT CIRCUIT COURT Judge Wendy Potts Kevin Oeffner, Administrator DRAIN COMMISSIONER Kevin Larsen, Deputy Drain Commissioner EXECUTIVE OFFICE Gerald Poisson, Deputy Executive Robert Daddow, Deputy Executive Phil Bertolini, Deputy Executive/CIO Dennis Toffolo, Deputy Executive FACILITIES MANAGEMENT Paul Hunter, Manager FISCAL SERVICES Nancy Fournier, Chief LaVerne Smith, Supervisor Linda Pearson, Analyst Prentiss Malone, Analyst Wayne Keller, Analyst Joe Matkosky, Analyst Bob Riegal, Analyst HEALTH George Miller, Manager HUMAN RESOURCES Jennifer Mason, Manager Doug Williams, Retirement Administrator Judy Fandale, Retirement Supervisor Karen Jones, Labor Relations Specialist Jordie Kramer, Analyst MANAGEMENT AND BUDGET Laurie Van Pelt, Director Art Holdsworth, Deputy Director PARKS & RECREATION Dan Stencil, Executive Officer Jon Noyes, Landscape Design OAKLAND COUNTY BOARD OF COMMISSIONERS 1200 N. TELEGRAPH ROAD, PONTIAC, MI 48341-0475 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 February 28 , 2008 OTHERS PRESENT CONTINUED PLANNING & ECONOMIC DEV. Dan Hunter, Manager PROSECUTING ATTORNEY David Gorcyca, Prosecuting Attorney PURCHASING Jack Smith, Manager SHERIFF Michael McCabe, Undersheriff Dale Cunningham, Business Manager TREASURER Keith Sawdon, Deputy Treasurer WASTE RESOURCES Brad Hansen, Environmental Program Coordinator AXE & ECKLUND . Peter Ecklund, Bond Counsel BOARD OF COMMISSIONERS Larry Doyle, Administrative Director Harvey Wedell, Sr. Analyst Sheryl Mitchell, Sr. Analyst Julia Ruffin, BOC LIaison Helen Hanger, Sr. Committee Coordinator APPROVAL OF THE PREVIOUS MINUTES Middleton moved approval of the minutes of January 31, 2008, as printed. Supported by Douglas. Motion carried on a voice vote. PUBLIC COMMENT None. 5. FY 2008 C ONTINGENCY REPORT The FY 2008 Contingency Fund balance of $152,300 will remain unchanged with today’s actions. Revised information was distributed for the FY 08 & FY 09 Fringe Benefit Reserve, Grant Match, Capital Outlay – Miscellaneous and the Cooperative Capital Initiatives Revolving Fund. Information on the West Nile Virus Distribution Balance for FY 2008 and the Use of General Fund Equity During FY 2008 were also added to the Report. Coulter moved to receive and file the Contingency Report of February 22, 2008, with accompanying revised material and additional information as distributed . Supported by Zack. Motion carried on a voice vote. REGULAR AGENDA 6. TREASURER – BIRMINGHAM CSO DRAINAGE DISTRICT, REFUNDING BONDS, SERIES 2008 – FULL FAITH AND CREDIT RESOLUTON The Treasurer is requesting authorization to refund remaining Series 1999 bonds dated Sept ember 1, 1999 for the Birmingham CSO Drain in the aggregate principal amount of not to exceed $2,750,000 for those bonds maturing in the years 2008 through 2016, except the interest due on April 1, 2008. Middleton moved approval of the attached suggest ed Resolution. Supported by Coulter. Motion carried unanimously on a roll call vote with Kowall, Crawford, Long and Greimel absent. FINANCE COMMITTEE Page 3 February 28 , 2008 7. PARKS AND RECREATION COMMISSION – APPROVAL AND ACCEPTANCE OF #2007 – 0123 WATERFORD OAKS COUNTY PARK STORM WATER IMP ROVEMENTS The Parks and Recreation Commission (PRC) is requesting authorization to accept a $190,000 Michigan Department of Environmental Quality Clean Michigan Initiative Clean Water Fund program grant. These funds will be used to offset costs for implementing Best Management Practices in construction of parking lot improvements at Waterford Oaks. Total project costs of $522,004 include the $190,000 grant and $332,004 provided by the ¼ mil Parks and Recreation Tax Levy. The PRC approved this grant on November 7, 2007 . Sufficient funding is budgeted for in the PRC Fund Construction in Progress line item. There is no impact on the County General Fund; therefore, no budget amendment is required. Douglas moved to amend the resolution to delete the second BE IT FURTHER RES OLVED paragraph. Supported by Coulter. Motion carried unanimously on a roll call vote with Crawford and Long absent. Middleton moved approval of the attached suggested Fiscal Note . Supported by Douglas. Motion carried unanimously on a roll call vote with Crawford and Long absent. 8. PARKS AND RECRATION COMMISSION – APPROVAL AND ACCEPTANCE OF #2007 – 0123 WATERFORD OAKS COUNTY PARK STORM WATER IMPROVEMENTS PROJECT GRANT The Parks and Recreation Commission (PRC) is requesting authori zation to accept a $250,000 Michigan Department of Environmental Quality 2007 Accessible by Design Awards program grant. These funds will be used to offset costs for construction of a regional play facility at Waterford Oaks. Total project costs of $440,000 include the $250,000 grant and $190,000 provided by the ¼ mil Parks and Recreation Tax Levy. The PRC approved this grant on November 7, 2007. Sufficient funding is budgeted for in the PRC Fund Construction in Progress line item. There is no impact o n General County funds; therefore, no budget amendment is required. Kowall moved to amend the resolution to delete the second BE IT FURTHER RESOLVED paragraph. Supported by Greimel. Motion carried unanimously on a roll call vote with Crawford and Long a bsent. Zack moved approval of the attached suggested Fiscal Note. Supported by Douglas. Motion carried unanimously on a roll call vote with Crawford, Long and Douglas absent. 9. FACILITIES MANAGEMENT/FACILLITIES ENGINEERING – REQUEST TO TRANSFER 2008 PARKING LOT PAVING PROGRAM TO JAIL RENOVATION & VISITATION PROJECT Facilities Management is requesting authorization to increase the scope of work for the Jail Renovation & Visitation (JRV) Project to include the resurfacin g of the Jail North Parking Lot in the amount of $500,000. Funding for the JRV Project was obtained by transfer of remaining balances of two completed Building Authority projects – the Work Release Facility and the 52 -3 District Court Courthouse project – per MR #06239. An additional $4 00,000 was transferred to the JRV Project from the General Fund by MR #07169 for additional jail video visitation equipment. Primarily as a result of the favorable economic climate at the time the JRV project was bid, Facilities Engineering has determined that final expenditures will be well within project funding levels and that sufficient funding will be available for this paving project. This paving project will also be bid out. N o budget amendments are necessary. FINANCE COMMITTEE Page 4 February 28 , 2008 Ms. Van Pelt explained that the Ad ministration was trying to reduce the amount being used from the CCIRF Fund for capital improvement projects until this budget cycle ended and to utilize remaining funds from these authority projects for this particular project was a better use of those re maining funds. Middleton moved approval of the attached suggested Resolution. Supported by Kowall. Motion carried unanimously on a roll call vote with Crawford and Long absent. 10. MR #08030– DEPARTMENT OF ECONOMIC DEVELOMPENT AND COMMUNITY AFFAIRS – WASTE RESOURCE MANAGEMENT – RESOLUTION APPROVING AN AMENDMENT TO THE PROVISION OF A BROWNFIELD CLEANUP REVOLVING LOAN FOR THE FORMER SANICEM LANDFILL Waste Resource Management is requesting authorization to amend an existing Loan Agreement with the Brown Road Group, LLC, (BRG) in the amount of $700,000 to facilitate partial funding of a methane control system during the construction phase of the redevelopment of the former Sanicem Landfill. The extension is necessitated by delays in the project to resolve l ocal permitting issues and construct ion of Dutton Road through the property. The loan agreement will extend the term of the credit facility agreed to by Oakland County and BRG by one year to November 30, 2008, including initial term, maturity and repaymen t of the Note as outlined in the resolution. All other provisions of the Loan Agreement will remain unchanged. No budget amendment is required. Coulter moved approval of the attached suggested Fiscal Note. Supported by Greimel. Motion carried unanimously on a roll call vote with Crawford and Long absent. Item #12 was moved up on the agenda while waiting for the presenter for Item 11 . 12 MR #08028 - HUMAN RESOURCES DEPARTMENT – FISCAL YEAR 2008 -2010 LABOR AGREEMENT FOR EMPLOYEES REPR ESENTED BY TEAMST ERS LOCAL 214 Human Resources is requesting authorization to enter into a labor agreement with Teamsters Local 214, (representing approximately 18 Correctional Health Nurses) for the period FY 2008 -2010. The agreement includes a 1% general salary increas e for FY 2008, consistent with that for general, non -represented employees, and a shift premium of $1 per hour for all hours worked on eligible shifts. Retention bonuses for eligible nurses will continue for the contract period. Benefits will be consiste nt with those for general non-represented employees. Greimel moved approval of the attached suggested Fiscal Note. Supported by Kowall. Motion carried unanimously on a roll call vote with Crawford and Long absent. 11. MR #08027 – DEPARTMENT OF HEATLH AND HUMAN SERVICES/HEALTH DIVISION – ADJUSTMENTS TO THE HEALTH DIVISION FEE SCHEDULE The Health Division is requesting authorization to amend its fee schedule, which has not been adjusted since 2003, as outlined in the attachment to the resolution. In conjunction with the chart showing comparisons of costs for the same services in similar -sized counties, Mr. Miller explained that the County’s costs for vaccines has increased and the Health Division would like to increase its fees to at least recover the those costs for these and other services as presented. FINANCE COMMITTEE Page 5 February 28 , 2008 Greimel moved to report to amend the resolution to add the following two BE IT FURTHER RESOLVED paragraphs. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners requires the Human Services/Health Division to provide a discount of al least 50% off of all fees in the attached fee schedule for individuals whose family income is equal to or less than 200% of the federa l established poverty line. BE IT FURTHER RESOLVED that the Human Services/Health Division shall establish and publicize a means by which individuals may readily apply for the above -referenced 50% discount by easily and reasonably verifying their family size and family income. Supported by Coulter. Commissioner Greimel explained that while he felt fees should be in line with costs, he would like to see some consistency made in the allowance for those with low income s rather than being determined on a case by case basis as is currently the process. The Health Division would administer and monitor the program and develop the criteria and the application, which should be easily available on the Internet. The program would be available to everyone who meets the poverty level criteria and wishes to voluntarily pursue the discount by providing verification of their income to obtain the discount. Commissioner Woodward indicated that the federal poverty guidelines are as follows: 1 person household = $10,500; 2 person household = $14,000; 3 person household = $17,600; 4 person household = $21,200. Therefore, 200% of the federal poverty level would be $42,400. Mr. Miller indicated that he would prefer that the fees were passed and the Health Division return with information on what the rules are under Medicaid and Medica re, etc. He also indicated that the law does not allow for differentiation between what can be charged for county and out -county residents. Commissioner Greimel indicated that he would like to see a plan on how to address the low income population before moving forward. Douglas moved to postpone this item until the next regular Finance Committee meeting on March 13, 2008. Supported by Middleton. Motion carried on a roll call vote with Zack and Woodward voting no and Crawford and Long absent. 13. MR #08029 – HUMAN RESOURCES DEPARTMENT – VOLUNTARY SEPARATION INCENTIVE PAY RETIREMENT PROGRAM Human Resources is requesting authorization to implement a Voluntary Separation Incentive (VSI) Pay Retirement Program. The program will be offered in response to economic demand and the need to reduce operational expenses . Approximately 520 employees are eligible for retirement as of August 31, 2008. The program will be offered during a 153-day window of opportunity beginning April 1, 2008 and endi ng August 31, 2008, with said incentive being a lump sum payment of one week of base salary plus service increment (maximum of 35 weeks), determined as of December 31, 2007, for each full year of retirement service as of December 31, 2007. Employees wishing to participate must file written application to retire no less than 30 days in advance of their required retirement date with the Retirement Commission, on the appropriate form, but in no event shall the application form be filed later than May 30, 2008. Lump sum V SI pay shall not be included in the final average compensation for employees in the defined benefit plan and no additional contributions will be made to an employees defined contribution plan by the County or the employee as a result of this lump sum payme nt. Employees wishing to participate in the program must be present at work the week prior to their retirement date. For represented employees, this program will be FINANCE COMMITTEE Page 6 February 28 , 2008 negotiated. Elected officials are not eligible for the program. Sufficient funding for this program is available in the Pension System. Mr. Poisson explained that this program is similar to those that have been implemented at both the federal level and within the private sector. It would address the need for structural changes to the County’s budget, of which 80% is the County’s workforce. Surplus County Retirement Fund dollars would be used for this program, at an estimated total cost of $14 million. Of 520 eligible for the program, the Administration would like to see 150 take the offe r. This action would impact the County’s budgetary shortfall in 2010. There would then need to be a restructuring of the workforce for permanent savings. The Administration anticipates that for the next 8 -10 years revenue will not keep up with inflation ary expenses. Greimel moved to report to amend the resolution to substitute the following language for the existing NOW THEREFORE BE IT RESOLVED paragraph. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners authorizes implementa tion of the following VOLUNTARY SEPARATION INCENTIVE PROGRAM FOR RETIREMENT to be offered to all non -elected Retirement System members, regardless of whether the employees are represented or non - represented and regardless of whether the represented employe es’ collective bargaining agreements contain ‘me too’ clauses or do not contain such clauses. Supported by Coulter. Mr. Poisson stated that this amendment would violate state law . He indicated that the Administration would be opposed to giving this oppo rtunity to any bargaining unit without first negotiating for it at the table, which is what the Administration intends to do. Roll Call on the Amendment: Ayes: Coulter, Woodward, Greimel, Zack Nays: Douglas, Middleton, Potter, Kowall, Rogers Absent: Long, Crawford Motion to report to amend failed. Middleton moved to report to amend the resolution to insert the following: BE IT FURTHER RESOLVED that the reports prepared by the County’s contracted actuary firm Gabriel, Roeder, Smith & Company, entitl ed Proposed Early Retirement Incentive Program for General County Employees, dated January 28, 2008, and the Proposed Retirement Incentive Program for General County Employees covered by the VEBA, dated February 7, 2008, along with accompanying documents, be placed on file with the County Clerk as attachments to the resolution. Supported by Kowall. Motion carried unanimously on a roll call vote with Crawford and Long absent. Middleton moved approval of the attached suggested Fiscal Note. Supported by Kowall. Motion carried unanimously on a roll call vote with Crawford and Long absent. 14. DEPARTMENT OF MANAGEMENT AND BUDGET – FISCAL YEAR 2008 FIRST QUARTER FINANCIAL FORECAST AND BUDGET AMENDMENTS FINANCE COMMITTEE Page 7 February 28 , 2008 Material regarding the FY 2008 First Quarter Forecas t Report was distributed for review and recommendation at the next regular meeting. 15. CIRCUIT COURT – FISCAL YEAR 2008 ADULT TREATMENT COURT FUNDING RECOMMENDATION The Circuit Court is requesting that the Board of Commissioners authorize the use of $45 ,000 in General Fund dollars to fund the operational portion of the Circuit Court’s Adult Drug Treatment Court. It was indicated by Judge Potts that the Prosecutor has recognized the value of the drug treatment court and has graciously agreed to a one -time transfer of $45,000 from his drug forfeiture money to the Circuit Court’s Drug Treatment Program. A substitute Fiscal Note was distributed to the committee identifying funding for this program from the Prosecuting Attorney’s Seized Funds Deferred Re venue account. Commissioner Potter voiced his support for this compromise as a one-time fix to fund the Drug Court but noted commissioners should consider grant funding issues pertaining to the “Gosling amendment” overall prior to the next budget cycle. Potter moved approval of the attached suggested Substitute Fiscal Note. Supported by Zack. Motion carried unanimously on a roll call vote with Crawford, Long and Middleton absent. COMMUNICATIONS A. Department of Management & Budget / Purchasing Division – Contract Exception Report for the Month of February, 2008 Planning & Economic Development Services (PEDS) – Neutron Media, inc. – Advertising (single opportunity to advertise at the North American Auto Show at a reduced price made available shortly before the show) Chairman Rogers indicated that this is a valuable tool and asked PEDS staff if they were considering putting together a long-range plan to pursue these types of opportunities at a reduced cost. Mr. Hunter explained that the cost for this particular opportunity was reduced from about $19,000 to $5,000 and that their intent is to pursue this issue as a long -term strategy. B. Circuit Court / Civil / Criminal D ivision – FY 2009 Michigan Drug Court C ontinuation Grant Program Through the U.S. Department of Justice, Bureau of Justice Assistance (BJA) Adult Drug Court Grant Application C. Economic Development & Community Affairs Department – Community & Home Improvement Division – 2008 Consolidated Grant Application to the U.S. Department of Hou sing and Urban Development for Community Development Block Grant (CDBG). Home Investment Partnership Grant (HOME), American Dream Down Payment Initiative (ADDI) and Emergency Shelter Grant (ESG) D. Notices to the State Tax Commission Requesting Revocatio n of the Real and Personal Property Component(s) of Industrial Facilities Exemption Certificates for: FINANCE COMMITTEE Page 8 February 28 , 2008 2002-095 – Grunewald New Technologies, Inc. – Williams Lake Rd., Industrial Park, Waterford MI 48328 2005-069 – PGAM Corporation – 4120 Luella Lane, A uburn Hills, MI 48326 2001-318 – GTN, Inc. – 13320 Northend, Oak Park, MI 48237 1999-240 – GTN, Inc. – 13320 Northend, Oak park, MI 48237 E. Notification of Public Hearing RE: Issue of Exempting United Solar Ovonic, LLC from Local Property Taxes for 3800 Lapeer Road and 2705 Commerce Parkway, Auburn Hills MI 48326 Douglas moved to receive and file the communications. Supported by Coulter. Motion carried on a voice vote. OTHER BUSINESS / ADJOURNMENT There being no other business to come before the committee, the meeting was adjourned at 10:28 a.m. ________________________ _______________________________ Helen A. Hanger Lawrence M. Doyle Senior Committee Coordinator Administrative Director NOTE: The foregoing minutes are subject to Committee approval.