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HomeMy WebLinkAboutMinutes - 2012.03.15 - 36618TOM MIDDLETON Chairperson SHELLEY TAUB Vice Chairperson DAVID WOODWARD Minority Vice Chairperson March 15, 2012 Chairperson Middleton called the meeting of the Finance Committee to order at 9:00 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 David VanderVeen, Director AVIATION Karl Randall, Manager COMMUNITY CORRECTION S Barb Hankey, Manager EXECUTIVE OFFICE Bob Daddow, Deputy Executive Phil Bertolini, Deputy Executive/CIO FACILITIES MANAGEMENT Art Holdsworth, Director Mike Hughson, Property Specialist HEALTH AND HUMAN SERVICES George Miller, Director HUMAN RESOURCES Nancy Scarlet, Director Karen Jones, Manager MANAGEMENT & BUDGET Laurie Van Pelt, Director FISCAL SERVICES Tim Soave, Manager Lynn Sonkiss, Chief LaVerne Smith, Supervisor Jeff Phelps, Supervisor Linda Pearson, Analyst Prentiss Malone, Analyst Monica Tinsley, Analyst Antonio Pisacreta, Analyst Jawseuan Chen Tsai, Accountant PARKS AND RECREATION COMMISSION Sue Welk, Manager Melissa Prowse, Business Development Rep. PLANNING & ECONOMIC DEVELOPMENT Bret Rasegan, Supervisor Whitney Calio, Env. Program Coordinator SHERIFF Mike McCabe, Undersheriff Dale Cunningham, Business Manager TREASURER’S OFFICE Andy Meisner, Treasurer Jim Van Leuven, Deputy Treasur er 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 15, 2012 CITIZENS Laurie Slade BOARD OF COMMISSIONERS Jim Ver Ploeg, Administrative Director Harvey Wedell, Sr. Analyst Helen Hanger, Sr. Committee Coordinator PLEDGE OF ALLEGIANCE Chairperson Middleton led the Pledge of Allegiance. APPROVAL OF THE PREVIOUS MINUTES Taub moved approval of the previous minutes o f March 1, 2012 as printed. Supported by Dwyer. Motion carried on a voice vote. AGENDA The agenda was unchanged. PUBLIC COMMENT None. FY 2012 CONTINGENCY REPORT The Fiscal Year 2012 Contingency Fund balance of $319,745 will remain unchanged by today’s actions. A revised Use of General Fund Equity page was distributed dated 3/14/12. Mr. Soave advised that the Salary Administration Plan resolutio n would reduce the FY 12 $177,904 Classification and Rate Change Account by $11,805 to $166,099. The First Quarter Financial Report and Budget Amendments resolution will transfer $41,000 for several Tri-County Party Program projects that went over budget in the Cities of Farmington Hills, Huntington Woods and Novi . Crawford moved to receive and file the FY 2012 Contingency Report dated March 7, 2012. Supported by Long. Motion carried on a voice vote. REGULAR AGENDA 1. TREASURER’S OFFICE – AUTHORIZATION TO BORROW AGAINST DELINQUENT 2011 REAL PROPERTY TAXES The Treasurer’s Office is requesting authorization to borrow money against Delinquent 2011 real property taxes and issue notes for the purposes authorized by Act 206, particularly Sections 87c , 87d and 87g thereof – for payments to the County and other political units for taxes unpaid on Marc h 1, 2011 and falling delinquent. The estimated unpaid 2011 delinquent real property taxes outstanding on March 1, 2012 will be approximately $125,000,000 , exclusive of interest, fees and penalt ies. The County will borrow a sum not to exceed $25,000,000 and issues notes for the purpose of continuing the Fund for the 2011 tax year. The exact amount will be determined based on the amo unt of outstanding 2011 delinquent taxes on Mach 1, 2012. FINANCE COMMITTEE Page 3 March 15, 2012 Mr. Meisner recognized the previous County Treasurers in maintaining the DTRF and noted that this fund plays an important role in obtaining the County’s credit rating from Wall Street’s rating firms. For the previous three years bonding was increased to $50 million but will be returned to its historical level of $25 million which should still meet the cash flow needs of the local units. Ms. Van Pelt indicated that the DTRF is at $218 million with $125 million being delinquencies. The fund includes other commitments but the target is not to go below $200 million. Wall Street has indicated that Oakland County’s DTRF is the strongest they have seen. Once the County’s Revenue Sharing Fund is depleted, and to avoid a cash shortage, the Administration would like to issue short -term notes at the same time as the annual DTRF notes to avoid some initial costs . Other counties that have come back on line to receive state revenue sharing are being funded at a lesser level tha n the original statute intended. Wayne County has had a 24% reduction from its original$43 million and the Governor is looking at further reductions. The Administration assumed a 33% cut for 2015 so the County will be okay if it receives the same 33% cut as the local units. Potts moved to recommend approval of the attached suggested Resolution. Supported by Quarles. Motion carried unanimously on a roll call vote. 2. SHERIFF’S OFFICE – 2012 OF-ROAD VEHICLE (ORV) SAFETY EDUCATION PROGRAM GRANT ACCEPTA NCE The Sheriff is requesting authorization to accept a 2012 $2,160 award from the State of Michigan, Department of Natural Resources for its Marine Safety Unit for an Off -Road Vehicle Safety Education Program. The DNRE provides $15 per trained/ce rtified ORV student with an estimated 144 students. The budget will be amended as outlined in the Fiscal Note. Dwyer moved to recommend approval of the attached suggested Fiscal Note. Supported by Long. Motion carried unanimously on a roll call vote. 3. MR #12049 - HUMAN RESOURCES DEPARTMENT – SALARY ADMINISTRATION PLAN 1 ST QUARTERLY REPORT FOR FY 2012 Human Resources has reviewed the salary grades for 3 classes/3 positions and is recommending that 1 class/1 position remain the same and 2 classes/2 positi ons be upgraded based on adjustments to factors outlined in the report. The budget will be amended as outlined in the Fiscal Note. Ms. Jones explained that the Chief–Sheriff Communications position will be given a new title Chief – Emergency Management Op erations and upgraded from a 13 to a 17 to reflect changes to the job that includes responsibility for an increased number of dispatchers and oversight for southeast Michigan operations. Oakland County now has the second largest Public Service Answering P oint-PSAP in Michigan. The position was previously making less than a Road Patrol Deputy. Quarles moved approval of the attached suggested Resolution. Supported by Potts. Motion carried unanimously on a roll call vote. 4. MR #12030 – DEPARTMENT OF PUBLIC SERVICES/COMMUNITY CORRECTIONS – CREATION OF THE WARM WEAR BY WWAM PROGRAM Introduced by Commissioner Shelley Taub, the resolution would authorize Community Corrections to transfer $500 within its budget for the Weekday Alternative for Misdemeana nts (WWAM) program from a Ground Supplies line item to the Materials and Supplies line item for startup costs for a new project that FINANCE COMMITTEE Page 4 March 15, 2012 would allow those deemed medically ineligible to participate in other work programs, such as the community garden and crew programs, to participate in a new program to loom knit hats for donation to local shelters, not for profit programs serving the underprivileged within Oakland Co unty and other programs including Children’s Village and Crossroad s for Youth. Taub moved approval of the attached suggested Fiscal Note. Supported by Zack. Motion carried unanimously on a roll call vote. 5. MR #12052 – DEPARTMENT OF ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS – WASTE RESOURCE MANAGEMENT – APPROVAL OF 2012 NO HAZ INTERLOCAL AGREEM ENT Economic Development and Community Affairs is requesting approval of the 2012 No HAZ Interlocal Agreement between the County and the Townships of Addison, Groveland, Oakland, Oxford, Orion and the cities of Lake Angelus, Rochester and Rochester Hills . Participating communities are required to fully reimburse the County for all costs. The FY 2012 Budget includes anticipated expense and revenue for this program. Taub moved to report to recommend that the resolution be amended to include in the 10 th WHEREAS the Charter Township of Waterford. Supported by Crawford. Motion to report to amend carried unanimously on a roll call vote. Taub moved approval of the attached suggested Fiscal Note. Supported by Potts. Motion carried unanimously on a roll call vote. 6. PARKS AND RECREATION COMMISSION AND DEPARTMENT OF FACILITIES MANAGEMENT – TRANSFER OF OAKLAND COUNTY FARMERS’ MARKET AND FLEA MARKET Facilities Management (FM) is requesting authorization to transfer the Oakland County Farmers’ Market to the Oakland County Parks and Recreation Commission (PRC) effective June 2, 2012. As of that date, the Farmers’ Market will be referred to as the Oakland County Market and the PRC will be entitled to 100% of all Market revenues, will be responsible for all future maintenance, improvements to the buildings/structures inside and out, including the parking lot, and will pay FM for utility costs and any other charges for requested maintenance. As part of consideration for the transfer, FM will provide maintenance and grounds services to the market at no charge through September 30, 2012. After that date, FM and PRC will collaborate on grounds, snow plowing and other maintenance services for other properties, particularly where FM and PRC properties are adjacent to one another. One FM proprietary funded full-time eligible (PF FTE) Market Master position and associated unit of Pontiac Market will be deleted. One PF FTE Assistant Parks Supervisor, grade 10, overtime non -exempt for over 40 hours worked in a work week and new unit of Oakland County Market Unit will be created for the PRC. The budget will be amended as outlined in the Fiscal Note. Mr. Holdsworth explained that the request for fast-tracking this resolution through a direct referral from Planning and Building to the Human Resources and Finance Committees was that the Market Manager would be retiring in several months and now is the time to cross -train parks staff to take over the operation. Taub moved approval of the attached suggested Fiscal Note . Supported by Dwyer. Motion carried unanimously on a roll call vote. FINANCE COMMITTEE Page 5 March 15, 2012 7. MR #12053 – DEPARTMENT OF FACILITIES MANAGEMENT – APPROVAL AND ACCEPTANCE OF LEASE AGREEMENT WITH MICHIGAN BELL TELEPHONE COMPANY (AT&T MICHIGAN), EQUIPMENT ROOM, OAKLAND COUN TY COURTHOUSE BASEMENT Facilities Management is requesting authorization to enter into a lease with Michigan Bell Telephone Company (AT&T Michigan) for use of approximately 1,348 gross square feet of equipment room space in the basement of the Oakland Cou nty Courthouse for the period March 20, 2012 – March 19, 2017. Beginning in 1988, AT&T provided and operated the County’s Centrex telephone system which is now used as an emergency back-up to the County -owned and operated primary telephone system. In lieu of rent, AT&T will continue to provide back -up service. The County will provide all utilities for the equipment room space. No budget amendment is required. Zack moved approval of the attached suggested Fiscal Note. Supported by Taub. Main motion as amended carried unanimously on a roll call vote. 8. DEPARTMENT OF CENTRAL SERVICES – OAKLAND COUNTY INTERNATIONAL AIRPORT – 2012 GRANT PROGRAM ACCEPTANCE – REHABILITATE TERMINAL APRON -DESIGN; INSTALL FENCING (SE AREA) DESIGN; REHABILITATE TAXIWAY (NO RTH HANGAR AREA)-DESIGN The Oakland County International Airport is requesting authorization to accept a Michigan Department of Transportation Grant for Federal funds of $114,950, State funds of $3,025 and a required local grant match of $3,025 for a pro ject consisting of rehabilitating the terminal apron -design; installing fencing in the southeast-design and rehabilitating taxiway (north hangar)-design. The Airport Committee recommends approval of the project. The MDOT shall act as agent on behalf of t he County to administer the project. Funding for the local match is available within the Airport Fund. Woodward moved approval of the attached suggested Fiscal Note. Supported by Taub. Motion carried unanimously on a roll call vote. 9. DEPARTMENT OF HEALTH AND HUMAN SERVICES / HEALTH DIVISION – FISCAL YEAR 2011/2012 HURON VALLEY SCHOOL DISTRICT SERVICE AGREEMENT ACCEPTANCE The Health Division is requesting authorization to enter into a one -year service agreement with the Huron Valley School District (HVS) to conduct groundwater monitoring that will include sampling from certain residences located near the HVS Bogie Lake Campus Wastewater Treatment Plan in White Lake Township. The Agreement reflects potential funding of $2,600. Compensation to the County will be $90 per each sample collected for 29 proposed residential wells. The budget will be amended as outlined in the Fiscal Note. Mr. Miller explained that years ago HVS had a septic system with a pond and the MDNR had been providing the funding for sampling of the area’s residential wells but now requires that the entity that caused the problem pay. The Health Division has agreed to perform the sampling. Long moved to report to recommend that the resolution be amended in the 3 rd WHEREAS and NOW THEREFORE BE IT RESOLVED paragraphs to strike $2,600 and instead insert $2,610. Supported by Crawford. Motion carried unanimously on a roll call vote. Dwyer moved to recommend approval of the attached suggested Fiscal Note. Supported by Long. Motion carried unanimously on a roll call vote. FINANCE COMMITTEE Page 6 March 15, 2012 10. DEPARTMENT OF MANAGEMENT AND BUDGET – FISCAL YEAR 2011 FIRST QUARTER FINANCIAL REPORT AND BUDGET AMENDMENTS The Fiscal Year 2011 First Quarter Financial Report and Budget Amendments were distributed fo r review and will be formally considered at the next meeting. In referring to Page 14 summarizing first quarter revenue and expenditures, Mr. Soave explained that the year -end forecasted favorability of $9 .5 million was based on actuals. The Transmittal Letter dated March 15, 2012 givens an explanation of the major variances for the two components of revenue and expenditures resulting in this project ion. Revenue estimates are down by .89% or $3,773,873. This includes Child Care Fund R evenue which is down but is offset by expenditure reductions resulting from faster placements. Projected expenditures are 3.13% under budget or favorable by $13,277,579. The planned use of $25 million in fund balance is being removed based on Generally Accepted Accounting Principles. This leaves a $15 million unfavorable balance but is actually $2 million less than what was anticipated. The hiring freeze continues and a ll elected officials are holding the line with their budget tasks . The Treasurer is showing an unfavorable balance but this is actually related to the Land Sales Fund being moved into the General Fund. The Treasurer is spending more to maintain foreclosed properties but as a result is generating more revenue so this variance should disappear following the August and October land auctions. Ms. Van Pelt reported that approximately 1/3 of the County’s full -time employees would be eligible to retire in the next several years so they are continuing to look at succession planning to reduce need and combine functions. Management and Budget has reduced its accounting functions due to the collapse of several funds into the General Fund. Mr. Bertolini explained that the private sector for technology is booming and has been recruiting away public sector employees. Hewlitt Packard is building its North American headquarters in Oakland County and will be hiring 300 people. IT is working with Human Resources to develop a long -term strategy. Ms. Scarlet indicated that this problem was also occurring with other c lassifications and was in review. 11. DEPARTMENT OF MANAGEMENT AND BUDGET – FY 2013 – FY 2015 REVENUE ESTIMATES Preliminary revenue estimates for FY 2013 – 2015 include adjustments to assumptions for property tax indirect costs and invest ment income. The FY 2012-2014 adopted budget included property tax estimates of a 1% decrease for 2013, no change for 2014 and 2% increase for 2015. These figures have been adjusted to no change for 2013, 1% for 2014 and an additional 1% for 2015. Estimates have been reduced for indirect costs and income investment. Taub moved to receive and file the FY 2013 – FY 2015 Revenue Estimates. Su pported by Crawford. Motion carried on a voice vote. 12. BUDGET PROJECTS FY 2012 – FY 2015 (FRAMEWORK) Mr. Daddow reported that Standard and Poors and Moody’s credit rating services indicated that most counties and states do not use this kind of planning and are thrilled with this effort. He gave an overview of the framework document dated February 23, 2012 which was updated fro m the previous November, 2011 document to include new information from closing of the first quarter for Fiscal Year (FY) 2012, state revenue estimates, taxable values as of December 31, 2011 and the Governor’s recommended operating budget for FY 2013 and F Y 2014, as well as new information on exposure that Oakland County faces from the state, the nation, internationally and the automotive industry. No new budget tasks are being assigned to county -wide elected officials but a large assumption is that they continue to honor their commitments. The updated summary schedule of future operating issues/shortfalls for the General Fund assumes use of FINANCE COMMITTEE Page 7 March 15, 2012 fund balance over the next several years to impact FY 2016, beginning with FY 2012 equity of $200 million or 48% of expenditures (higher than the gold standard expected for governmental operations ) and ending with $92 million in equity for FY 15 when the target is $85 million or 20% of expenditures - also the gold standard. The ending $7 million equity will not resolve the structural operating shortfalls for FY 2016 , estimated at $46.4 million, and beyond. Central Tasks outlined in the summary schedule include consideration of bonding for capital and infrastructure programs that are back-logged. Unknowns continue to include how the federal health care program and the state’s 80/20 health care program will completely impact the County as it is self -insured and this has not be considered in the formula. Opting out of the State’s 80/20 health care plan is an annual elec tion. This information is built on rolling assumptions that will continue to be updated as events change. Ms. Van Pelt explained that some areas are informally reorganizing through reclassifications and they are working with several of the district court s to avoid operation issues. Potts moved to receive and file the February 23, 2012 Updated Framework and March 7, 2012 cover letter from the County Executive. Supported by Quarles. Motion carried on a voice vote. COMMUNICATIONS None. OTHER BUSINESS/ADJOURNMENT There being no other business to come before the committe e, the meeting was adjourned at 10:43 a.m. ________________________ _______________________________ Helen A. Hanger Jim Ver Ploeg Senior Committee Coordinator Adminis trator Director NOTE: The foregoing minutes are subject to Committee approval.