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HomeMy WebLinkAboutMinutes - 2009.07.30 - 36370TOM MIDDLETON Chairperson MIKE GINGELL Vice Chairperson TIM GREIMEL Minority Vice Chairperson July 30, 2009 Chairperson Middleton called the meeting of the Finance Committee to order at 11:04 a.m. in the Board of Commissioners' Committee Room A of the Commissioners' Wing, County Service Center in Pontiac, Michigan. COMMITTEE MEMBERS PRESENT Tom Middleton , Mike Gingell Tim Greimel, Sue Ann Douglas, Christine Long, Jeff Potter, David Potts, Shelley Taub, Helaine Zack, David Coulter, David Woodward COMMITTEE MEMBERS ABSENT : None OTHERS PRESENT AUDITING Pam Weipert, Manager AVIATION Karl Randall, Manager COMMUNITY CORRECTIONS Barb Hankey, Manager EQUALIZATION Dave Hieber, Manager EXECUTIVE OFFICE Jerry Poisson, Deputy Executive Robert Daddow, Deputy Executive Phil Bertolini, Deputy Executive Doug Smith, Deputy Executive FACILITIES MANAGEMENT Art Holdsworth, Director Paul Hunter, Manager Bob Larkin, Manager Gina Bohn, Supervisor FISCAL SERVICES Tim Soave, Manager LaVerne Smith, Supervisor Nancy Fournier, Chief Lynn Sonkiss, Chief Linda Pearson, Analyst Nancy Falardeau, Analyst Monica Tinsley, Analyst Bob Riegal, Analyst Wayne Keller, Analyst Shelley Cook, Supervisor Jawyeuan Chen Tsai, Accountant Vicki Poynter, Accountant HEALTH & HUMAN SERVICES George Miller, Director 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 Christine Long Jeff Potter David Potts Shelley Taub Helaine Zack David Coulter David Woodward FINANCE COMMITTEE Page 2 July 30, 2009 HUMAN RESOURCES Nancy Scarlet, Director Cathy Shallal, Manager Lori Motyka, Supervisor COMMUNITY DEVELOPMENT & COMMUNITY AFFAIRS Maureen Krauss, Director INFORMATION TECHNOLOGY Ed Poisson, Director David Veit, Manager Jim Taylor, Chief Dawn Siegel, Supervisor Connie Srog, Analyst Jamie Hess, Chief Janette McKenna, Chief Joe Sullivan, Manager Pat Coates, MANAGEMENT & BUDGET Laurie Van Pelt, Director PUBLIC SERVICES Mike Zehder, Director PURCHASING Jack Smith, Manager RISK MANAGEMENT Andrea Plotkowski, Insurance & Safety Coordinator Julie Sweik, Claims Analyst SUPPORT SERVICES Todd Birkle, Manager BOARD OF COMMISSIONERS Gary McGilliivray, District #24 Lawrence Doyle , Administrative Director Harvey Wedell, BOC Sr. Analyst Helen Hanger, Sr. Committee Coordinator 3. APPROVAL OF THE PREVIOUS MINUTES None. 4. PUBLIC COMMENT None. 5. BUDGET HEARINGS (County Executive Recommended Budget for FY 2010 – FY 2012) Material outlining in detail the steps taken by each elected official to meet their budget tasks was previously distributed at the July 23 meeting of Finance. County Executive Administration (Auditing / Corporation Counsel / Risk Management ) Mr. Poisson reviewed actions taken by the County Executive’s Administration to meet and exceed their FY 2010 – FY 2012 Budget Task. Similar to the elected officials, the County Executive’s appointees are protected under the law from having their salaries reduced but are planning to voluntarily surrender 2.5% of their salaries. Three vehicles from the County Executive’s Office will be deleted for the next budget year. Because this is considered compensation, o ther elected officials are also being asked to voluntarily turn in their vehicles and they have to do so. The budget will be amended when vehicles are turned in and removed from the fleet. Once this occurs, no vehicle can be replaced without Board approval. Mr. Daddow reported on budget task action s relating to Auditing staff. There are currently eleven positions. Three will be eliminated and one will be down -graded to part-time non-eligible for FY 2011. Three more positions will be in eliminated for FY 2012. One person has already transferred t o the Friend of the Court and one person to the Prosecuting Attorney’s Office. Auditing funds will be transferred to the PA’s office to FINANCE COMMITTEE Page 3 July 30, 2009 pay for this position for one year . Another position will be transferred to the Department of Health and Human Services to monitor Substance Abuse Services (SAS) contracts. In the past, the auditing staff performed both a monitoring and an auditing function for these contracts . Only the monitoring function is actually required. An Audit is the issuing of a formal report with findings . Monitoring is less formal and will allow staff to go to the agencies and provide training to assure contract compliance and that treatment services are the length of time they should be. The paperwork required of SAS agencies under these contracts is required by the State and not the County. The accelerated transfer of staff from Auditing was unanticipated and transitioning of the workload through 2012 will need to be revisited. Mr. Poisson explained that the hiring freeze has given staff the opportunity to be placed in vacant and vacated positions. Some of the line items within the County Executive’s recommended budget have been zeroed out as a result of Homeland Security being transferred to the Department of Health and Human Services . Corporation Counsel Ms. Cunningham reported that one Assistant Counsel III position will be deleted for FY 2010. The reduction of staff has resulted in some processes being re -engineered. Departments must submit written requests for legal assistance . If a department changes their issue, their request may have to be re - prioritized. The County’s outside counsel has indicated that they will take a commensurate reduction of 2.5% in their fees. Ms. Cunningham explained that there are County offices outside the courthouse that need library continuations. Some documents are still in hard copy, such as state regulations. Over the years, these continuations have continued to be reduced. Risk Management There are no structural changes proposed for Risk Management. This function is organized under Corporation Counsel and is paid for from the Building Liability Fund and Fringe Benefit Fund - Workers Compensation. Some of the County’s insurance vendors have agreed to price reductions and the County is using a different broker for vehicle purchases. Both of these efforts have resulted in a substantial savings for the County. Commissioner Taub asked that staff for information as to the cost structure of the function and staff for Risk Management. Support Services (Leased Vehicle Operations, Print Shop, Mail Room, Record Retention, Oakland Room Cafeteria Contract and Vending) Mr. Birkle reviewed the functions and budget task for Support Services. Once specifications are developed, vehicles are purchased through the bid process and bids are reviewed for the most responsible and responsive bidder and contracts are monitored . Departments using leased vehicles are charged through the motor pool rates. Departments owned vehicles are charged directly for certain things such as car washes. All departments are charged back for fuel. The County Garage is GM warranty certified and can submit costs to General Motors for reimbursement. Outside mechanics are used for things such as body work and alignments. Bi ds are also received for this work and prices are monitored. A third party vendor picks up the mail daily and charges the County per piece. The County previously purchased its own sorter and that has saved $100,000 a year on postage. Mr. Poisson indicated that the Administration is looking at outsourcing of the Print Shop but explained that FINANCE COMMITTEE Page 4 July 30, 2009 the mail room has been a profit center for the County. Acquisition costs for vehicles turned in by the elected officials will be eliminated but this is a reduction o f about 15 cars which will probably not cause any adjustment to the rates. Savings on contracts are outside the budget process and the Administration will continue to pursue these reductions on an on -going basis. Airport Mr. Randall reported that no structural changes were projected for the Airports. There are no General Fund dollars involved. THE COMMITTEE RECESSED FROM 12:15 PM TO 1:15 PM FOR LUNCH. Information Technology Mr. Bertolini, Mr. Poisson and Mr. Daddow reviewed the Information Technology (IT) budget . IT does development for the non -departmental internal services fund and establishes the rates. Projects are developed through a master plan process and the plan is updated quarterly and reported to the General Government Committee. IT is a service bureau that responds to the needs of county government, supplies services to all of the County’s 61 local units and provides public safety services to over 200 agencies in 5 counties and to e-Ticket and e-Commerce clients. IT was recently been recognized by the National Association of County Officials (NACo) as the number one center for digital governments based on 100 different areas of criteria on how they are doing and how IT has changed its business processes with growing technology. Mr. Poisson explained that IT has four operating divisions – Administration and Internal Services - the service desk and employee and customer training and support; Application Services – design, development and maintenance of the County’s web presence; Technica l Systems and Networking – maintaining infrastructure, hardware, and communications; CLEMIS – public safety services, radio communications, fire records, etc. IT has approached some of its vendors and received price reductions that have resulted in a cumulative reduction on 17 contracts of 5%. Commissioner Douglas stated that the County should continue to watch management levels as staff is reduced. She noted that the economy is changing, the average income and price of homes has been driven down and that she would like to review the County’s overall management structure for adjustments. IT currently out sources 25% of its development and system layout work which has proven to be cost effective and deleted its deputy director position . Other vacant positions are not being filled at this time because there may be a need for more flexibility as staff reductions occur, customer needs change and some internal shifting of staff may be required. Mr. Daddow reported that two contractors for CLEMIS operati ons have been brought back as part-time non-eligibles. Mr. Bertolini explained the designated fund balances for a 311 Contact Center and Future Technology Replacement. A Return on Investment (ROI) would be done prior to coming to the Commissioners with a request for any appropriation. IT rates were set by resolution and do not include depreciation. Equipment life has been extended longer than was anticipated and IT funds are used to replace equipment. Ms. Van Pelt explained that the decision not to include depreciation in the IT rates goes back to the Y2K issue and the need to replace a large amount of equipment that would not need to be depreciated. Instead funds were designated for this purpose with the knowledge that the County had time to do rep lacements and knowing that the price of personal computers would come down. If depreciation costs had been FINANCE COMMITTEE Page 5 July 30, 2009 included in the rates, customers would have expected the County to replace their equipment. Ms. Van Pelt explained that fund balance designations represent how the County would spend these dollars if the need is there. Designations are not prioritized and will be reviewed for adjustment after the budget is completed. Fees charged for on-line credit card transactions were adopted by resolution. The total amount of fees has increased but the volume of transactions has driven down these rates. The communications line item is used to pay rent for lines that connect the County’s fiber optics to its customers. IT is looking at opportunities to reduce Travel and Conference expen ses by bringing in experts when possible to train a larger number of staff at the same time. The line item has not been lowered because there are a large number of initiatives that may require staff training. Mr. Daddow advised that he had distributed to the commissioners a memo regarding FY 2010 –to FY 2012 Budget and Related Plans for the CLEMIS Fund. Information in this memo will be added to the amendment list to correct the budget relative to these issues. Facilities Management Mr. Holdsworth reviewed the actions taken to address the budget task for Facilities Management. He explained that Facilities is responsible for over 40 facilities, almost 2 million square feet of space, 600 acres of grounds, 60 acres or parking lots and 60 miles of utility and steam tunnels. Capital Improvement Projects (CIP) and other improvements have been delayed for budget reasons. Because of this, there may be an increase in emergency work and preventative maintenance will become more cri tical. Many of the CIP projects were moved off the five-year planning horizon. Special project expenses of $200,000 have been shifted to the FMO Fund to decrease the burden on the General Fund and the FMO Fund will be reduced over the next several years . Overtime is used mainly for 24/7 operations, to provide coverage for employees on sick or short-term disability or for emergency situations, such as snow removal. A number of tasks are being reviewed to reduce the frequency at which they are performed, such as mowing and replacing mulch. Moister sensors o n sprinklers are being shut off if rain is predicted. The Designated Fund Balance for Operational Improvements may be used to address facility security issues. A Return on Investment would be put together before requesting an appropriation. Clerk Ms. Johnson and her staff reviewed action s to address their budget tasks and reviewed changes made to the office to better mana ge work flow. On-line services have been expanded and forty years worth of records are now available on line. The Clerk has requested legislative changes to allow marriage licenses to be accessed on line and to do commemorative documents. Court Explorer has been very successful and generated $18,000 in June. T he Clerk has improved election night reporting that has resulted in a savings of $180,000 a year. Election processing improvements have been made to assure that ballots are created, printed and gotten to local clerks on time for those who want to vote absentee . Six judges are participating in the e-Filing pilot project and the goal is to eventually have all the judges on the system. This program may reduce staffing needs at some future time. Campaign Finance information is now available free of charge on line. Foreclosures have increased dramatically but the workload is about the same. Revenues are down due to the decrease in home prices. The new mobile Clerk pilot program kicked off in Novi this week. The Clerk’s staff travels to the offices of local units to provide the public with access to documents they normally would have to obtain at the Courthouse. The first day cost of this program was $60, including mileage and printing. The Clerk will continue to review costs on an ongoing basis. Health and Human Services (Administration, Health, Children’s Village, Homeland Security, Liaison for Medical Care Facility) FINANCE COMMITTEE Page 6 July 30, 2009 Mr. Miller reviewed the Department of Health and Human Services budget task reductions. Public health services were previously reorganized to eliminate duplic ation of services offered more appropriately by other entities within the community and to focus on its core function of working with high risk populations. The E-Health system has been enhanced and allows the Public Health Sanitarians to more efficiently handle case loads. A new time and activity management program has also been implemented. Ms. Overall reported that Children’s Village (CV) has implemented several program enhance ments and campus beautification initiatives. The Teacher’s Pet program matches kids up with mistreated dogs from Animal Control to train for adoption. Local artists are painting murals on the walls at no cost and the Village has partnered with the Birmingham Bloomfield Art Association for a program. Two grants have been awarded with no county matching dollars. One of these grants is from Home Depot for new carpeting and paint. Parks and Recreation is helping to make infield improvements , the kids are helping with landscape plantings and jail inmates are providing laundry serv ice at no charge. Mr. Quisenberry explained that Homeland Security (HS) is partnering with the Health Division to make sure they are all on the same page and not competing to reach their goals. The scope of HS functions has been broadened but continues to include weather related and emergency response activities. Funding comes primarily from outside Oakland County. UASI grant money is a large part of this budget and the U.S. Homeland Security (USHS) office has indicated their intent to add on a match requirement for these grants. HS and other homeland security and emergency response personnel in southeast Michigan have met with the USHS representative to let them know that if that match requirement occurs, it would discontinue the program because funds are not available. HS staff also assists other communities and special interest groups to obtain grants. Waterford Township has received funds for a second fire hall . Mr. Soave reported that the County has received additional information from the Michi gan Department of Human Services (MDHS) that may cause significant budget problems. The issue stems from a lawsuit that was settled regarding, among other things, foster care and licensing of homes. Prior to the recommended budget being completed, Mr. Miller met with local MDHS and Circuit Court staff and the MDHS Child Care Coordinator had indicated that they did not belie ve the settlement would have a negative impact on the Child Care budget because they planned to move the kids into homes sooner. MDHS has now submitted information for the County’s Child Care Fund that could increase specific line items by $1.7 million. As a result of this lawsuit, Mr. Miller explained that kids can no longer stay at the Village for more than 30 days as the State is trying to move them through the system faster and is working to get family members licensed as foster homes. CV is not utilized at capacity and there are talks with other counties to see if an interest exists in using the facility for their neglect and ab use cases. Kids considered by MDHS difficult to manage were being sent to Wayne County. CV is equipped to handle these kids and is now working closer with MDHS on all case review. There is discussion with three vendors who responded to a bid for psychological services and CV is working to build its relationship with Easter Seals to expand their program. Mr. MIller indicated that they are concerned that there are not enough resources within the community to assist these kids and their families once they le ave CV. Mr. Miller also indicated that there is a need for a long-term facility for girls. Mr. Miller reported that the flu shot program normally ends in May but this year the Center for Disease Control (CDC) directed that they continue to give the shots and the supply ran out at the end of June. Doses given average about 44,000 or better but Health is anticipating even higher numbers for this year. Health staff has been practicing since 2004 to handle vaccine distributions in response to a potential pandemic and have received awards for their efforts. It is anticipated that the Swine Flu (H1N1) vaccine will be out in late August, early September but the CDC has not yet determined how the shot will be distributed and what populations will be first priori ty. Mr. Miller indicated that i t is anticipated that funding for the West Nile program will be reduced now that the public is better informed on how to avoid the problem. FINANCE COMMITTEE Page 7 July 30, 2009 In 2006 a contract was approved with Cienna to turn the Golden Oaks Medical Care Facility operation over to them. They have gotten permission from Waterford to build its facility at Telegraph and Dixie Highway and once the facility is built and their license is in place the County’s relationship with them will end. Current lease provisions in the contract contemplate construction and State authorization to transfer beds to Cienna. The County facility has Medicaid beds and they are not at capacity. The new facility will have more beds and will include Medicaid beds. The County currently pays liability insurance only for the facility itself. Cienna is responsible for all other liability. There is a proposal to move all substance abuse funding under mental he alth. This proposed change would add another layer of government and woul d take away treatment funds. Oakland County’s costs are the lowest of any substance abuse agency in the state. The County is not aware of any effort of the part of the Oakland County Community Mental Health Authority to go after these dollars and the law current states that the Board of Commissioners will designate the coordinating agency. The County is in discussion with Senators Pappageorge and Cherry on this matter. Health is now the coordinator for the Immunization reporting program. The program may be eliminated and the County is unsure of how this ma y impact its operations. If tracking of the H1N1 shots is required, this may save the system but ultimately the Health Division will be responsible for ensuring that every hospital and physician’s office perform the input to report on immunizations . Public Services (Animal Control, Veterans, Medical Examiner, Circuit Court Probation , Community Corrections, MSU Co -op Extension) Mr. Zehnder and his staff reviewed the Department’s budget task. An ove rview of the staffing of the MSU Extension-Oakland County office and its programs was provided by Ms. Terry. Commissioner Woodward expressed concern that toxicology results were taking up to six months to obtain. He asked that an appropriation of $300,000 be put on the budget amendment list for the Medical Examiner’s (ME) office to address the matter. Mr. Zehnder and Dr. Dragovic explained that the (ME) primarily performs the law enforcement function of doing autopsies in cases of suspicious and unexplained deaths. Citizens who request private autopsies are charged for that service. Staffing levels have been reduced to that which existed prior to the Genesee County contract, which has been eliminated and they are working to develop a methodology to address the backlog. National Medical Services in Philadelphia also performs testing for the ME. Mr. Poisson indicated that they would gather additional information and statistics on the ME’s office and report back to the Finance Committee for consideration of the proposed amendment. Ms. Toole reported that Animal Control has reached its goal of a “no kill” facility for dogs and is progressing towards that same goal for cats. Economic Developmen t & Community Affairs (EDCA) (Community & Home Improvement, Pl anning, Workforce Development, Waste Resource Management, Marketing & Communications, Business Finance Corp., Economic Development Corporation, Business Mr. Smith and his staff reviewed the budget task for his Department. He reported that they are proposing to increase the fees in the One Stop Shop for map products. There has been no fee increase in many years. Revenue in the One Stop Shop was about $50,000 . There has been a shift to on -line services and EDCA will be monitoring this activity closely with IT. New Mainstreet Program participants will be charged a fee for services. Fund Balance Designations for Quality of Life Initiatives have been used to begin the FINANCE COMMITTEE Page 8 July 30, 2009 Emerging Sectors program, for marketing and communications and as seed money for a num ber of events sponsored by the County, such as the Fire and Ice Fest ival in Rochester. EDCA will be looking for public partnerships and sponsors to continue these events. S hifts to several line items have occurred due to Waste Resources being incorporate d into the Department’s Budget and CCIRF Mainstreet funds will be moved back to the General Fund balance. The Department’s goal is to become more aggressive through use of technology in assisting other communities. With the appointment of Ms. Krauss as D irector of the EDCA Department, the Administration is considering the vacant deputy director position Commissioner Coulter asked that use of the $300,000 Designated Fund Balance be provided in detail for the committee’s information. Mr. Rogers explained that there are 8 counties participated in Automation Alley. Oakland County funds one Chief position for which the Administration’s goal is to reduce the County’s contribution to zero by pursuing foundation funds. Neighborhood Stabilization Program Gra nt funds will be used for program purposes with only a minimal amount going towards one administrative position. Tt the Economic Development Corporation and the Finance Development Corporation a re self-funded and they are hoping not to have to subsidize o r close these programs . Activity may increase with the County’s receipt of $155 million in facility bonds and $103 million in economic development bonds . These programs are being marketed on WWJ and WJR and that has brought in some interest. OTHER BUSINESS / ADJOURNMENT Commissioner Greimel asked about the $400,000 appropriation for the County’s Wellness Program and what the ROI was when comparing this cost to health care premium s. Ms. Scarlet indicated that a majority of the cost goes toward the employ ee health screening program which has about a 54% participation rate. Some of the trends have been good and others are questionable. This is the third year for this program and it has shown that risk factors have improved. There being no other business to come before the committe e, the meeting was adjourned at 5:15 pm. ________________________ _______________________________ Helen A. Hanger Lawrence M. Doyle Senior Committee Coordinator Administrative Director NOTE: The foregoing minutes are subject to Committee approval.