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HomeMy WebLinkAboutMinutes - 2011.03.17 - 36521TOM MIDDLETON Chairperson SHELLEY TAUB Vice Chairperson DAVID WOODWARD Minority Vice Chairperson March 17, 2011 Chairperson Middleton called the meeting of the Finance Committee to order at 9:04 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, Shelley Taub, David Woodward, Christine Long, David Potts, Jim Runestad, Kathy Crawford, Bill Dwyer, Helaine Zack, Tim Greimel, Nancy Quarles COMMITTEE MEMBERS ABSENT : None. OTHERS PRESENT CENTRAL SERVICES J. David VanderVeen, Director CHILDREN’S VILLAGE Jody Overall, Manager CIRCUIT COURT Jacqueline Howes -Evanson, Drug Court Supervisor DISTRICT COURT 52-2 Sharon Rupe, Administrator EXECUTIVE OFFICE Gerald Poisson, Deputy Executive Bob Daddow, Deputy Executive Phil Bertolini, Deputy Executive/CIO FACILITIES MANAGEMENT Art Holdsworth, Director Mike Hughson, Property Specialist FISCAL SERVICES Tim Soave, Manager Nancy Fournier, Chief Holly Conforti, Supervisor LaVerne Smith, Supervisor Leo Lease, Analyst Nancy Falardeau, Analyst Monica Tinsley, Analyst Jawyeuan Tsai, Accountant HUMAN RESOURCES Nancy Scarlet, Director Brenthy Johnston, Analyst HUMAN SERVICES George Miller, Director INFORMATION TECHNOLOGY Pat Coates, CLEMIS Administrator Jamie Hess, Chief MANAGEMENT & BUDGET Laurie Van Pelt, Director PARKS AND RECREATION Mike Donnellon, Chief Sheila Cox, Capital Improvement Coordinator PLANNING & ECONOMIC DEVELOPMENT Steve Huber, Marketing/Communications Officer WASTE RESOURCES Whitney Calio, Environmental Program Coordinator OAKLAND COUNTY BOARD OF COMMISSIONERS 1200 N. TELEGRAPH ROAD, PONTIAC, MI 48341-0475 Telephone (248) 858 -0100 FAX (248) 858-1572 FINANCE COMMITTEE Christine Long David Potts Jim Runestad Kathy Crawford Bill Dwyer Helaine Zack Tim Greimel Nancy Quarles FINANCE COMMITTEE Page 2 March 17, 2011 PROSECUTING ATTORNEY Terri Meiers, Supervisor PURCHASING Jack Smith, Manager SHERIFF Michael McCabe, Undersheriff SUPPORT SERVICES Todd Birkle, Manager TREASURER Jim Van Leuven, Deputy WATER RESOURCES COMMISSIONER Joe Colaianne, Attorney BOARD OF COMMISSIONERS Harvey Wedell, Sr. Analyst Helen Hanger, Sr. Committee Coordinator PLEDGE OF ALLEGIANCE Chairperson Middleton led the Pledge of Allegiance. APPROVAL OF THE PREVIOUS MINUTES Dwyer moved approval of the previous minutes o f March 3, 2011 as printed. Supported by Zack. Motion carried on a voice vote. AGENDA No changes were made to the printed agenda. PUBLIC COMMENT Mr. VerPloeg introduced himself as the new Administrator of the Board of Commissioners. He explained that he was currently in transition from his previous role as Administrator of the 52 -4 District Court and would be at the Board of Commissioners full time beginning April 11. FY 2011 - FY 2013 CONTINGENCY REPORT The FY 11 Contingency Fund balance sheet was distributed. The balance of $301,917 will remain unchanged. A revised grant match sheet was distributing to include Item 2 on today’s agenda. Taub moved to receive and file the FY 2011 Contingency Report dat ed March 10, 2011. Supported by Long. Motion carried on a voice vote. REGULAR AGENDA 1. TREASURER’S OFFICE – AUTHORIZATION TO BORROW AGAINST DELINQUENT 2010 TAXES The Treasurer is requesting authorization to borrow $50,000,000 and issue notes for th e purpose of continuing the Delinquent Tax Revolving Fund for the 2010 tax year. The exact amount to be borrowed shall not exceed the amount of delinquent taxes outstanding on March 1, 2011, exclusive of interest, fees and penalties. The Treasurer is currently in the settlement process with the local units and they will be paid up front. Anticipated delinquent real property taxes as of March 1 are estimated to be $160,000,000. Taub moved approval of the attached suggested Resolution. Supported by Zack. FINANCE COMMITTEE Page 3 March 17, 2011 Motion carried unanimously on a roll call vote with Quarles absent. 2. PROSECUTING ATTORNEY, CIRCUIT COURT - FAMILY DIVISION AND CHILDREN’S VILLAGE – PROGRAM YEAR 2011 JUVENILE ACCOUNTABILITY BLOCK GRANT (JABG) ACCEPTANCE The Board of Commissioners is requested to accept a multi -departmental grant award from the Michigan Department of Human Services of $128,095 for the period of April 1, 2011 through March 31, 2012. The total grant award includes $115,287 or 90% from the MDHS and a County match of $12,808 or 10%. The funding will be used as follows: $2,000 to Circuit Court for the Juvenile Drug Court Facilitator for Art Therapy through Photography program continuation, $80,460 for Prosecutor Accountability – Teen Court Program continuation, $45,6 35 for the Children’s Village Information Sharing Database Management System. Anticipated indirect administrative and support costs of $4,417 are not recoverable under the grant. The budget will be amended as outlined in the Fiscal Note. Taub moved approval of the attached suggested Fiscal Note. Supported by Long. Motion carried unanimously on a roll call vote with Quarles absent. 3. MR #11052 – DEPARTMENT OF FACILITIES MANAGEMENT – APPROVAL AND ACCEPTANCE OF LEASE AGREEMENT WITH THE RADEMACHER GR OUP ONE LLC FOR USE OF PROPERTY AT 5850 LORAC DRIVE, CLARKSTON, MICHIGAN Facilities Management is requesting approval of a lease negotiated with Rademacher Group One, LLC for the building located at 5850 Lorac Drive in Clarkston, Michigan that houses the 52-2 District Court. The lease period is June 1, 2011 – May 31, 2016, with an additional five-year lease option. Terms and conditions of the new lease include rent of $22,055 per month or $264,659 annually which shall increase at a rate of 1.5% per year beginning June 1, 2012 and shall increase at a rate of 2% per year during the option term of the lease. The landlord has agreed to improvements as outlined in Exhibit A. The budget will be amended as outlined in the fiscal note. Mr. Hughson reported tha t the current lease expires May, 2012 but was re -negotiated resulting in an estimated rental cost reduction of $20,000 and a list of agreed to improvements for the facility and property. Property to build a new 52-2 District Court was purchased several yea rs ago by the County but the project was put on hold due to budget issues. Dwyer moved approval of the attached suggested Fiscal Note. Supported by Crawford. Motion carried unanimously on a roll call vote. 4. MR #11051 - DEPARTMENT OF ECONOMIC DE VELOPMENT & COMMUNITY AFFAIRS – WASTE RESOURCE MANAGEMENT – APPROVAL OF 2011 NO HAZ INTERLOCAL AGREEMENT Waste Resource Management is requesting authorization and approval of a contract with the Townships of Addison, Groveland, Oakland, Oxford and Orion a nd the Cities of Lake Angelus, Rochester and Rochester Hills to allow these local units to participate in the NO HAZ household hazardous waste collection program. Collection events take place in the spring and fall. Participating communities must reimburs e the County for all costs incurred in connection with the program . The Budget includes revenues and expenditures for the program; no budget amendment is required. Long moved approval of the attached suggested Fiscal Note. Supported by Potts. FINANCE COMMITTEE Page 4 March 17, 2011 Motion carried unanimously on a roll call vote. 5. MR #11048 - WATER RESOURCES COMMISSION ER – REQUEST FOR $150,000 LOAN FROM THE LONG TERM REVOLVING FUND FOR THE DRAYTON PLAINS DRAIN REPAIR PROJECT The Water Resources Commissioner, on behalf of the Drayton Plain s Drainage District, is requesting a $150,000 loan from the Long-Term Revolving Fund (LTRF) to repair the Drayton Plains Drain. MR #02019 authorized loans of up to $150,000 to local units for water and sewer projects. The loan, including interest, will be paid back over 5 years through a special assessment district of benefiting properties. The interest rate will be the Treasurer’s pooled investment average annual rate as of March 2, 2011 of 1.47%. Funding is available from the LTRF. No budget amendmen t is required. Mr. Colaianne explained that the Drain was in serious need of repair and the area of Dixie Highway and Williams Lake Road was experiencing flooding. Runestad moved approval of the attached suggested Fiscal Note. Supported by Crawford. Motion carried unanimously on a roll call vote. 6. MR #11049 – DEPARTMENT OF CENTRAL SERVICES – SUPPORT SERVICES DIVISION REORGANIZATION Support Services is requesting authorizati on to reorganize and improve efficiencies in its operations as a result of contracting with Oakland Schools to provide printing services. The Printing, Mailing and Convenience Copier Fund will be eliminated. Deletion of eight full-time eligible and two part-time, non- eligible Proprietary Fund positions and two full-time non-eligible Clerk II Delivery General Fund positions, as well as several other personnel changes , will result in a projected net savings of $269,993 to the general fund. Information Technology will manage the Convenience Copier program and a budget amendment wi ll be made to recognize revenue and expenditures. Other adjustments to the budget resulting from the reorganization are identified in the Fiscal Note and attached schedule. Mr. VanderVeen explained that of those employees who were impacted by elimination of the Print Shop, one resigned for another job, several retired and those remaining transferred to other county departments. Long moved approval of the attached suggested Fiscal Note. Supported by Quarles. Motion carried unanimously on a roll call v ote. 7. MR #11050 – PARKS AND RECREATION – WATERFORD OAKS BOUNDARY SPLIT AND COMBINATION The Parks and Recreation Commission (PRC) is requesting authorization to split a parcel of land on which both its PRC administration complex and Oakland County’s Children’s Village reside and to consolidate that split parcel and 16 other individual parcels of land within park boundaries into one parcel. The PRC approved this action at its February 2, 2011 meeting. Facilities Management has agreed to the parcel split as an internal land management effort . This boundary combination will assist Waterford Township with zoning and master planning functions. An application fee of $500 to Waterford Township will be paid from the PRC FY 2011 Operating Budget. Long moved approval of the attached suggested Fiscal Note. Supported by Crawford. Motion carried unanimously on a roll call vote . FINANCE COMMITTEE Page 5 March 17, 2011 8. MR #11055 – BOARD OF COMMISSIONERS – TRI-PARTY ROAD IMPROVEMENT PROGRAM FISCAL YEAR 2011 APPROPRIATION – CHARTER TOWNSHIP OF WATERFORD – PROJECT NO 50771 Introduced by Commissioners Middleton and Scott, the resolution approves the project submitted by the Charter Township of Waterford 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 the construction of a right -turn lane on Crescent Lake Road at M -59. A copy of the Cost Participation Agreement between the Road Commission for Oakl and County and the Township is included. A budget amendment of $84,500 will be made as outlined in the Fiscal Note. Runestad moved approval of the attached suggested Fiscal Note. Supported by Taub. Motion carried unanimously on a roll call vote. 9. ESTABLISHMENT OF OAKLAND COUNTY TELEPHONE OPERATING SURCHARGE RATE FOR THE PERIOD JULY 1, 2011 TO JUNE 30, 2012 The resolution would provide the required annual authorization of the operating surcharge on telephone lines, as defined by State statute, for t he period of July 1, 2011 through June 30, 2012 . Funds collected will cover the operations, construction and necessary provisions of the Radio Communications Fund in the amount of $.23 per line, as defined. The previous year’s authorized amount was $.23; therefore, no budget amendment is necessary at this time. The resolution also indicates that the issue of “parity” will continue to be addressed for resolution and will be brought back for discussion no later than the FY 2012 -2014 CLEMIS Fund budget hearing. A resolution authorizing the surcharge must be provided to the State no later than Mid -May. Dwyer moved approval of the attached suggested Fiscal Note. Supported by Potts. Commissioner Zack asked fo r an update on the parity issue and to what degre e, if any, Oakland is a donor county for this effort. Mr. Sullivan and Mr. Daddow indicated that there has been an ongoing dialogue with CLEMIS participants regarding the parity issue on membership costs. How revenue flows in and how it is distributed across the various governmental units is a complex issue. Oakland County supports the regional CLEMIS effort at a cost of somewhere between $3 million - $3.5 million annually. This subsidy includes County general funds of roughly $1.4 million, Oaknet support costs absorbed by the County’s Information Technology Department of $700,000-$900,000 and some CLEMIS costs under the Radio Communications Shop estimated at $1.1 million. Membership fees contribute about 10% of costs. Increasing the membership fee may result in a reduction of participants and reduce the amount of data put into the system but not the cost of operations. Deployment and training are continuing. Other issues include ongoing equipment maintenance, depreciation and replacement costs. Those who choose to go with a different system or provider may have additional costs and could find it necessary to lay off officers. Livonia should be held harmless because they provide at their own expense disaster recovery backup for CLEMIS. Woodward moved to amend the resolution to insert: BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners hereby establishes that member ship fees for non -Oakland County law enforcement agencies, excluding the City of Livonia, be 25% higher tha n in Oakland County, effective October 1, 2011. FINANCE COMMITTEE Page 6 March 17, 2011 Supported by Quarles. Mr. Daddow stated that Maximus, which does the County’s indirect costing, has been asked to do a study to provide an objective dollar amount for the CLEMIS program by June , in time for the County’s budget process. He asked that the CLEMIS Advisory Board be given the opportunity to address the parity issue prior to any action being taken by the Board of Commissioners . Potts moved to postpone this item until the next regular meeting of the Finance Committee on April 14, 2011. Supported by Woodward. Motion to postpone carried unanimously on roll call vote. 10. DEPARTMENT OF MANAGEMENT AND BUDGET – FIRST QUARTER FORECAST AND BUDGET AMENDMENTS A copy of the First Quarter Forecast and Budget Amendments resoluti on, transmittal letter and backup information was distributed. The item will be taken up for action at the next regular meeting of the Finance Committee. 11. DEPARTMENT OF MANAGEMENT AND BUDGET – FY 2012 – FY 2014 REVENUE ESTIMATES Mr. Soave briefly reviewed the General Fund/General Purpose Revenue Estimates for 2012 -2014 as distributed to the committee. Zack moved to receive and file the FY 2012 -FY 2014 revenue estimates. Supported by Runestad. Motion carried on a voice vote. 12. MR #11003 – BOARD OF COMMISSIONERS – APPOINTMENT OF AN AD HOC COMMITTEE TO REVIEW OAKLAND COUNTY POLICIES CONCERNING TRANSPARENCY IN GOVERNMENTAL REPORTING The resolution was introduced by Commissioner Middleton and would establish an ad h oc committee, appointed by the Board Chairperson, to study county policies regarding what information should or should not be available on-line. Appointments shall consist of two majority party members and one minority party member. Potts moved to report to recommend approval of the attached suggested resolution and to recommend that Commissioners Middleton, Potts and Greimel be appointed to serve. Supported by Taub. Motion carried unanimously on a roll call vote. COMMUNICATIONS A. Department of Management and Budget / Purchasing Division – Contract Exception Report for the Month of March, 2011 Commissioner Taub asked what the results were from placing a one-page ad in the February 2011 edition of the Delta Sky magazine focusing on the Detroit Region. Mr. Huber stated that it was difficult to say because contacts may not indicate that they came for FINANCE COMMITTEE Page 7 March 17, 2011 assistance because of the ad. B. Department of Health and Human Services / Health Division – 2011 Building Healthy Communities Planning Grant Application C. Department of Management and Budget – Actuary Report D. Department of Information Technology – Radio Project Status and Cash Flow/Equity at December 31, 2010 – Development of Telephone Operating Surcharge Rates for July 1, 2011 to June 30, 2012 E. Notice of Hearings: 1. City of Auburn Hills – March 7, 2011, 7 pm – RE: Request to Exempt United Solar Ovonic Corporation from Local Property Taxes for Facilities Located at #3800 Lapeer Rd., and 2705 Commerce Parkway, Auburn Hills, MI 48326 2. Village of Oxford – April 12, 2011, 6:30 pm – RE: Request for Industrial Facilities Tax (IFT) Exemption Application from Royal Oak Boring and Royal Oak Medical Devices 3. City of Rochester Hills – March 21, 2011 – RE: Request for Approval of an Industrial Facilities Exemption Certificate for WABCO North America, LLC Located @ 2770 Research Dr., Rochester Hills, Michigan 48309 Taub moved to receive and file the communication s. Supported by Runestad. Motion carried on a voice vote. OTHER BUSINESS / ADJOURNMENT There being no other business to come before the committee, the meeting was adjourned at 10:35 a.m. ________________________ _______________________________ Helen A. Hanger Nancy Wenzel Senior Committee Coordinator Committee Coordinator NOTE: The foregoing minutes are subject to Committee approval.