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HomeMy WebLinkAboutMinutes - 2010.07.15 - 36457TOM MIDDLETON Chairperson MIKE GINGELL Vice Chairperson TIM GREIMEL Minority Vice Chairperson July 15, 2010 Chairperson Middleton called the meeting of the Finance Committee to order at 9:02 a.m. in the Board of Commissioners' Committee Room A of the Commissioners' Auditorium Wing, County Service Center in Pontiac, Michigan. COMMITTEE MEMBERS PRESENT Tom Middleton, Mike Gingell, Tim Greimel, Sue Ann Douglas , Christine Long, David Potts, Shelley Taub, Helaine Zack, David Coulter , David Woodward COMMITTEE MEMBERS ABSENT : None. OTHERS PRESENT AVIATION Karl Randall, Manager CENTRAL SERVICES David VanderVeen, Director CIRCUIT COURT/PROBATE John Coope rrider, Business Administrator COMMUNITY CORRECTIONS Barb Hankey, Manager CORPORATION COUNSEL Judy Cunningham, Corporation Counsel DISTRICT COURT 52-3 Renee Gillert, Administrator DISTRICT COURT 52-4 Jim VerPloeg, Administrator Patti Bates, Probation Supervisor EQUALIZATION Dave Hieber, Manager EXECUTIVE OFFICE Jerry Poisson, Deputy Executive Bob Daddow, Deputy Executive FACILITIES Mike Hughson, Property Specialist FISCAL SERVICES Tim Soave, Manager Nancy Fournier, Ch ief LaVerne Smith, Supervisor Jeff Phelps, Supervisor Nancy Falardeau, Analyst HUMAN RESOURCES Nancy Scarlet, Director Cathy Shallal, Manager MANAGEMENT & BUDGET Laurie Van Pelt, Director SHERIFF Dale Cunningham, Business M anager MICHIGAN ASSOCIATION OF COUNTIES Tim McGuire, Executive Director BOARD OF COMMISSIONERS Lawrence Doyle, Administrative Director Harvey Wedell, Sr. Analyst Helen Hanger, Sr. Committee Coordinator 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 David Potts Shelley Taub Helaine Zack David Coulter David Woodward FINANCE COMMITTEE Page 2 July 15, 2010 PLEDGE OF ALLEGIANCE APPROVAL OF THE PREVIOUS MINUTES Potts moved approval of the previous minutes of July 1, 2010 as printed. Supported by Gingell. Motion carried on a voice vote. AGENDA Taub moved the agenda as printed. Supported by Zack. Motion carried on a voice vote. PUBLIC COMMENT None. FY 2010 / FY 2011 / FY 2012 CONTINGENCY REPORT The FY 10 Contingency Fund balance of $310,689 will remain unchanged. Potts moved to receive and file the FY 2010 Contingency Report dated July 8, 2010. Supported by Woodward . Motion carried on a voice vote. CONSENT AGENDA 1a. MR #10171 – BOARD OF COMMISSIONERS – TRI-PARTY ROAD IMPROVEMENT PROGRAM FISCAL YEAR 2010 APPROPRIATION – CITY OF SOUTHFIELD PROJECT NO. 49801 Introduced by Commissioner Jackson, Zack and Coleman, the resolution approves the project submitted by the City of Southfield as eligible for Tri-Party Road Improvement Program funding and authorizes the release of the County’s one-third share of funding from the General Fund Designated Fund Balance. The program consists of concrete resurfacing of 12 Mile Road from Evergreen Road to Southfield Road. A copy of the Cost Participation Agreemen t between the Road Commission for Oakland County and the City of Southfield is included. A budget amendment for $48,707 will be made as outlined in the Fiscal Note. 1b. MR #10173 – BOARD OF COMMISSIONERS – TRI-PARTY ROAD IMPROVEMENT PROGRAM FISCAL YEAR 2010 APPROPRIATION – CITY OF ROCHESTER HILLS PROJECT NO. 49471 Introduced by Commissioners Greimel, Douglas and Gosselin , the resolution approves the project submitted by the City of Rochester Hills as eligible for Tri-Party Road Improvement Program funding and authorizes the release of the County’s one -third share of funding from the General Fund Designated Fund Balance. The program consists of milling and HMA resurfacing of Walton Boulevard from Adams Road to east of Livernois Road . A copy of the Cost Participation Agreement between the Road Commission f or Oakland County and the City of Rochester Hills is included. A budget amendme nt for $339,546 will be made as outlined in the Fiscal Note. FINANCE COMMITTEE Page 3 July 15, 2010 1c. MR #10172 – BOARD OF COMMISSIONERS – TRI-PARTY ROAD IMPROVEMENT PROGRAM FISCAL YEAR 2010 APPROPRIATION – CITY OF FARMINGTON HILLS PROJECT NO. 50371 Introduced by Commissioners Schwartz and Nash, the resolution approves the project submitted by the City of Farmington Hills as eligible for Tri -Party Road Improvement Program funding and authorizes the release of the County’s one-third share of funding from the General Fund Designated Fund Bala nce. The program consists of the milling and asphalt resurfacing of Middlebelt Road from 11 mile Road to north of I - 696. A copy of the Cost Participation Agreement between the Road Commission for Oakland County and the City of Farmington Hills is included. A budget amendment for $232,500 will be made as outlined in the Fiscal Note. 1d. MR #10174 – BOARD OF COMMISSIONERS – TRI-PARTY ROAD IMPROVEMENT PROGRAM FISCAL YEAR 2010 APPROPRIATION – CITY OF THE VILLAGE OF CLARKSTON PROJECT NO. 50461 Introduced by Commissioner Middleton, the resolution approves the project submitted by the City of the Village of Clarkston as eligible for Tri -Party Road Improvement Program funding and authorizes the release of the County’s one-third share of funding from the Genera l Fund Designated Fund Balance. The program consists of sidewalk replacement along Clarkston Road, W. Washington Road and S. Holcomb Road. A copy of the Cost Participation Agreement between the Road Commission for Oakland County and the City of Rochester Hills is included. A budget amendment for $500 will be made as outlined in the Fiscal Note. 1e. MR #10179 – BOARD OF COMMISSIONERS – TRI-PARTY ROAD IMPROVEMENT PROGRAM FISCAL YEAR 2010 APPROPRIATION – TOWNSHIP OF ROSE – FISH LAKE ROAD, HIGHLAND TOWNSHIP BORDER TO DEMONDE ROAD, PROJECT NO. 50482 Introduced by Commissioner Bullard, the resolution approves the project submitted by Highland Township as eligible for Tri-Party Road Improvement Program funding and authorizes the release of the County’s one-third share of funding from the General Fund Designated Fund Balance. The program consists of spreading and chloriding of gravel on Fish Lake Road from the Highland Township border to Demode Road. A copy of the Cost Participation Agreement between the Road Commission for Oakland County and Highland Township is included. A budget amendment for $3,519 will be made as outlined in the Fiscal Note. Douglas moved approval of the attached suggested Fiscal Notes for Consent Agenda Items 1a -1e. Supported by Gingell. Motion carried unanimously on a roll call vote with Greimel and Long absent. REGULAR AGENDA 2. BUILDING AUTHORITY – RESOLUTION AUTHORIZING THE OAKLAND COUNTY BUILDING AUTHORITY TO FINANCE A PROJECT FOR THE CITY HALL AND THE CITY DPW BUILDING IN T HE CITY OF KEEGO HARBOR, OAKLAND COUNTY, MICHIGAN The Building Authority is requesting authorization to enter into a sublease between the County of Oakland and the City of Keego Harbor for real estate, including the City of Keego Harbor’s City and DPW Bui ldings, for up to thirty-one years. The sublease will be entered into once the bonds are sold as authorized pursuant to MR #10139. The proposed resolution would also amend MR #10139 as to the lease agreement between Oakland County and the Building Author ity to correct the legal description of the property and to change Paragraph 2 of the lease agreement to read “the County shall transfer cause the title to the Project be transferred to the Authority.” FINANCE COMMITTEE Page 4 July 15, 2010 Mr. Daddow explained that the lease payments would be equal to the debt service and with use of the county’s AAA bond rating they will receive a lower interest rate which will save the city $60,000 over the life of the debt services. The will pay all operations, maintenance, insurance, etc. If the City was unable to pay the debt service the County would hold back Delinquent Tax payments. Potts moved to report to amend the resolution’s NOW THEREFORE BE IT RESOLVED paragraph as follows. 2. The blanks therein continued CONTAINED in Appendix B and C of the Suble ase shall be completed by the Chairperson of the Board of Commissioners of the County after the bonds are sold which will include inserting the debt retirement schedule for the bonds. Supported by Gingell. Motion carried unanimously on a roll call vote with Greimel absent. Potts moved to approval of the attached suggested Fiscal Note. Supported by Gingell. Motion carried unanimously on a roll call vote with Greimel absent. 3. MR #10166 – 52ND DISTRICT COURT – REVISIONS OF THE FY 2010, FY 2011 AND FY 2012 BUDGETS The 52nd District Court is requesting authorization to revise its FY 2010 – FY 2012 budget task plan due to a reduction in revenue activity. The 52nd-3 is proposing to delete one General Fund/General Purpose (GF/GP) part-time non-eligible (PTNE) Certified Electronic Operator position and one GF/GP full-time eligible (FTE) District Court Clerk II position in the Administration Unit and one GF/GP FTE District Court Clerk II position in the Probation Unit. Two GF/GP PTNE DCC II positions wi ll be created, one in Administration and one in Probation. The 52-4 is proposing to delete one vacant GP/GP FTE Court Clerk Position. The FY 2011 -FY 2013 County Executive Recommended Budget will be amended to reflect these actions during the Finance Committee Budget Hearing process. Amendments to the current FY 2010 budget will be made as outlined in the Fiscal Note. Taub moved approval of the attached suggested Fiscal Note. Supported by Douglas. Motion carried unanimously on a roll call vote. Item 4 was put on hold until a representative of the Prosecuting Attorney’s office was available. 5. MR #10164 – SHERIFF’S OFFICE - CONTRACT FOR AUXILIARY DEPUTY SERVICES IN THE CITY OF ROYAL OAK 2010 The Sheriff is requesting authorization to contract with the City of Royal Oak to provide patrol services for special events on an overtime basis at overtime rates established by MR #09257 for FY 2010. The agreement will run from June 1, 2010 through December 31, 2010. Sufficient revenues and expenditures are included in the FY 2010 Budget. Taub moved to report to recommend that the resolution be amended in the 2 nd BE IT FURTHER RESOLVED paragraph to strike the date July 1, 2010 and enter June 1, 2010 to agree with the date reflected in the contract agreement in section 10.4.1. Supported by Potts. FINANCE COMMITTEE Page 5 July 15, 2010 Motion carried unanimously on a roll call vote. Gingell moved approval of the attached suggested Fiscal Note. Supported by Douglas. Motion carried unanimously on a roll call vote. 6. MR #10165 – SHERIFF’S OFFICE - CONTRACT FOR FIRE DISPATCH SERVICES FOR THE CHARTER TOWNSHIP OF OAKLAND FOR 2010 -2013 The Sheriff is requesting authorization to contract with the Charter Township of Oakland for the period April 1, 2010 through March 31, 2013 to provide fire dispatch services on an overtime basis at rat es established by MR #09257. Budget amendments for FY 2010 and for the County Executive Recommended FY 2011 - 2013 Budget will be made as outlined in the Fiscal Note. Mr. Cunningham reported that this would b e the 13th contract with local units for fire dispatch. Gingell moved approval of the attached suggested Fiscal Note. Supported by Long. Motion carried unanimously on a roll call vote. 7. MR #10168 – SHERIFF’S OFFICE - CONTRACT AMENDMENT FOR LAW ENFORCEMENT SERVICES IN THE CHARTER TOWNSHIP OF BRANDON - 2010 The Sheriff is requesting authorization to amend its law enforcement services contract with the Charter Township of Brandon to delete one General Fund/General Purpose Deputy II (patrol Investiga tor) and one GF/GP Deputy I, reducing contracted positions from 14 to 12. One semi -marked vehicle with radio will also be deleted. Budget amendments for FY 2010 and for the County Executive Recommended FY 2011 -2013 Budget will be made as outlined in the Fiscal Note. Long moved approval of the attached suggested Fiscal Note. Supported by Gingell. Motion carried unanimously on a roll call vote. 4. MR #10167 – PROSECUTING ATTORNEY – REVISIONS OF THE FY 2010, FY 2011 AND FY 2012 BUDGETS The Prosecuting Attorney is requesting authorization to amend their FY 2010 – FY 2013 budget to meet its budget tasks by deleting one General Fund/General Purpose full -time eligible (FTE) Assistant Prosecutor II in the Litigation Division which had formerly supported the Narcotics Enforcement Team but has been vacant since April and, within Administration, to delete one GF/GP FTE Office Assistant II position and create one GF/GP part -time non -eligible Office Assistant II position. In additional to the budget amendments made with the FY 2010 2 nd Quarter Forecast of $201,591, these actions will result in an additional reduction of $41,909 for FY 2010. Amendments will be made as outlined in the Fiscal Note. Mr. Walton noted that there has been an increase in armed robbe ry and white collar crimes as a result of the slow economy and the Prosecuting Attorney is considering establishment of a task force to address this issue. He indicated that he would keep the committee apprised of any movement in that direction. Taub moved approval of the attached suggested Fiscal Note. Supported by Zack. FINANCE COMMITTEE Page 6 July 15, 2010 Motion carried unanimously on a roll call vote. 8. MR #10169 – SHERIFF’S OFFICE – MARINE PATROL SERVICES AGREEMENT IN THE CHARTER TOWNSHIP OF WHITE LAKE 2010 The Sheriff is requ esting authorization to contract with the Charter Township of White Lake to provide marine patrol services for its lakes at rates established by schedule A of the proposed agreement. The agreement will run from May 1, 2010 through September 30, 2010. One General Fund/General Purpose part-time non-eligible 250 hours/year Marine Safety Deputy I position will be created in the Sheriff’s Office/Patrol Services/Marine Safety Unit. The FY 2010 budget and FY 2011 -FY 2012 County Executive Recommended Budget will be amended as detailed in the Fiscal Note. Long moved to report to recommend that the resolution be amended in the 3rd BE IT FURTHER RESOLVED paragraph to strike the date May 28, 2010 and enter May 1, 2010 to agree with the dates reflected in the revised contract agreement, paragraph 2. Supported by Gingell. Motion carried unanimously on a roll call vote with Zack absent. Gingell moved approval of the attached suggested Fiscal Note. Supported by Long. Motion carried unanimously on a roll call vote with Zack absent. 9. MR #10170 – SHERIFF’S OFFICE – MARINE PATROL SERVICES AGREEMENT IN THE CHARTER TOWNSHIP OF HIGHLAND 2010 The Sheriff is requesting authorization to contract with the Charter Township of Highland to provide marine patrol services for its lakes at rates established by schedule A of the proposed agreement. The agreement will run from June 1, 2010 through September 30, 2010. One General Fund/General Purpose part -time non-eligible 250 hours/year Marine Safety Deputy I position will be created in the Sheriff’s Office/Patrol Services/Ma rine Safety Unit. The FY 2010 B udget and FY 2011 -FY 2012 County Executive Recommended Budget will be amended as detailed in the Fiscal Note. Mr. Cunningham explained that this service is not require d to be performed by the Sheriff and was cut as part of the budget task. Local units will be contacted again to consider providing this service again next year as they go into their budget cycles. Long moved to report to recommend that the resolution be amended as follows. 1. Substitute the attached revised agreement, which reflects modifications as requested and approved by Michigan Municipal Risk Management Authority (MMRMA) in paragraphs 16, 17, and 18 of the agreement. 2. In the 3 rd BE IT FURTHER RESOLVED paragraph, strike the date May 27, 2010 and enter June 1, 2010 to agree with the date as reflected in the revised contract agreement in paragraph 20. Supported by Gingell. Motion carried unanimously on a roll call vote . FINANCE COMMITTEE Page 7 July 15, 2010 Long moved approval of th e attached suggested Fiscal Note. Supported by Taub. Motion carried unanimously on a roll call vote. 10. MR #10161 – THE DEPARTMENT OF FACILITIES MANAGEMENT AND AVIATION – REQUEST TO CONVEY PROPERTY AND GRANT A STORM WATER AND SURFACE DRAINAGE EASEMENT TO THE CHARTER TOWNSHIP OF LYON, OAKLAND SOUTHWEST AIRPORT Facilities Management and Aviation are requesting authorization to sell parcel 21 -04-451-010 and part of parcel 21-04-451-008 and approve the granting of a storm water and surface drainage ease ment to the Charter Township of Lyon for the sum of $110,562.15. The Township is in the process of obtaining rights of way for construction of a new ring road which will extend from Pontiac Trail to Milford Road, a portion of which will be constructed o ver airport property. All construction will be at the Township’s expense. Funds will be deposited into the Airport Fund. No budget amendment is required. Long moved approval of the attached suggested Fiscal Note. Supported by Taub. Motion carried unanimously on a roll call vote. 11. BOARD OF COMMISSIONERS – PAYMENT OF 2010 MICHIGAN ASSOCIATION OF COUNTIES (MAC) DUES Pursuant to MR #04298, Finance Committee approval is required prior to payment of the annual Michigan Association of Counties Due s invoice. Gingell moved to approve payment of the MAC Dues invoice for 2011. Supported by Taub. Roll Call: Ayes: Taub, Zack, Coulter, Woodward, Gingell, Greimel, Middleton Nays: Douglas, Long, Potts Motion carried. 12. DEPARTMENT OF MANAGEMENT AND B UDGET – OVERVIEW OF FY 2011 – FY 2013 COUNTY EXECUTIVE’S RECOMMENDED BUDGET An overview of the County Executive’s Recommended Budget for FY 2011 -FY 2013 was presented by the Administration’s staff in conjunction with the presentation material. The proposed budget is: - FY 2011: $763,565,949 - a 9.2% decrease of $77.2 million from the FY 2010 Amended Budget. - FY 2012: $766,481,972 - a 0.4% increase of $2.9 million over the FY 2011 recommendation. This figure reflects a slight increase as a result of the use of $13.9 million in General Fund balance accelerated budget cut credits for elected officials from previous budget tasks. When this figure is removed, revenue decreases by 1.4% or $11,000,000 from FY 2011. - FY 2013: $751,748,159 - a 1.9% decrease of $14.8 million from the FY 201 2 recommended budget. This figure also includes use of $44.5 million in GF balance. When this figure is removed, revenue falls $59.3 million or 7.7% from FY 2012. The County’s Budget is made up of the following funds : - Special Revenue Funds: primarily grants which have General Fund grant match requirements and are down $49.7 million from FY 10, mostly due to near completion of capital grants. These FINANCE COMMITTEE Page 8 July 15, 2010 Funds have the least amount of discretion. - Proprietary Funds: include Enterprise (airports, parks, sewer and water, CLEMIS, etc.) and Internal Services (fringe benefits, print shop, motor pool, etc), and are operated like a business, charging fees to the public, local units and county departments. Revenue of $245.4 million is included in the FY 2011 budget. The Internal Services Fund charges to the General Fund/General Purpose (GF/GP) budget for FY 2011 is $53.4 million, a $2.7 million decrease from FY 10. - General Fund/General Purpose Funds : include General, Health, Child Care Fund and Social Welfare Foster Care, are supported by property taxes and charge , and have the highest level of discretion. This Fund has been reduced 7.6% or $31.3 million from FY 10 to $382.7 million for FY 11. Accelerated budget task credits from previous years for elected officials are used in FY 2012 and FY 2013 and are one-time credits. Additional structural cuts will still be required for FY 2014 and beyond. Use of transfers from other funds to support General Fund operations, with exception of the Revenue Sharing Reserve Fund (RSRF) and the Delinquent Tax Revolving Fund DTRF), will end in 2012. DTRF contributions to the General Fund will drop from $23.1 million in FY 2011 and FY 2012 to the “traditional” amount of $7.1 million in FY 2013. The RSRF contributes $24 million in each year but will be depleted in FY 2015, at which time the State is supposed to reinstitute payments. The recommended 1.5% salary reduction has been included for all positions regardless of the funding source. The proposed budget also assumes reductions in taxable value of an additional 13% for FY 2011, 5% for FY 2012 and 2.5% for FY 2013 . Due to the State’s ongoing operating shortfall, no allocation s from the State for jail boarding for diverted offenders are included and conservative figures are being assumed for cigarette taxes, convention facility taxes, etc. Investment income and indirect cost recovery are up slightly. Commissioner Douglas expressed concern with transferring positions from the General Fund to other funds to reduce budget tasks. COMMUNICATIONS A. Notice of Hearing Re: BCG Properties, Application for Industrial Facilities Exemption Certificate at a Facility Located in Section 35 of Orion Township at 199 Kay Industrial Drive, Orion, Michigan 483 59 Taub moved to receive and file the communication . Supported by Zack. Motion carried on a voice vote. OTHER BUSINESS / ADJOURNMENT There being no other business to come before the committee, the meeting was adjourned at 11:09 a.m. ________________________ _______________________________ Helen A. Hanger Lawrence M. Doyle Senior Committee Coordinator Administrative Director NOTE: The foregoing minutes are subject to Committee approval.