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HomeMy WebLinkAboutMinutes - 2012.07.26 - 36649TOM MIDDLETON Chairperson SHELLEY TAUB Vice Chairperson DAVID WOODWARD Minority Vice Chairperson July 26, 2012 Chairperson Middleton called the meeting of the Finance Com mittee to order at 9:07 a.m. in the Board of Commissioners' Auditorium of the Commissioners' Auditorium Wing, County Service Center in Pontiac, Michigan. COMMITTEE MEMBERS PRESENT Tom Middleton, Shelley Taub, David Woodward, David Potts, Jim Runestad, Kathy Crawford, Bill Dwyer, Helaine Zack COMMITTEE MEMBERS ABSENT WITH NOTICE: Christine Long, Nancy Quarles OTHERS PRESENT CIRCUIT COURT Nanci Grant, Chief Judge Kevin Oeffner, Administrator Claudia Martello, Reimbursement CLERK/REGISTER OF DEEDS Larry Doyle, Deputy Clerk COMMUNITY & HOME IMPROVEMENT Kerry Rieth, Manager Kathy Williams, Housing Counseling Supervisor Carla Spradlin, Grant Compliance COMMUNITY CORRECTIONS Barb Hankey, Manager CORPORATION COUNSEL Judy Cunningham, Corporation Counsel ECONOMIC DEVELOPMENT Kristie Zamora, Marketing Coordinator EXECUTIVE Gerald Poisson, Deputy FACILITIES MANAGEMENT Art Holdsworth, Director Ed Joss, Manager HEALTH & HUMAN SERVICES George Miller, Director HUMAN RESOURCES Nancy Scarlet, Director Jennifer Hain, Manager Karen Jones, Manager INFORMATION TECHNOLOGY Kevin Bertram, Manager Patricia Coates, CLEMIS Chris Timms, Supervisor MANAGEMENT & BUDGET Laurie Van Pelt, Director FISCAL SERVICES Tim Soave, Manager Lynn Sonkiss, Chief LaVerne Smith, Supervisor Prentiss Malone, Analyst 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 Nancy Quarles FINANCE COMMITTEE Page 2 July 26, 2012 Leo Lease, Analyst Kimberly Elgrably, Analyst Monica Tinsley, Analyst Gaia Piir, Grant Compliance Coordinator PARKS AND RECREATION COMMISSION Sue Wells, Manager Melissa Prowse, Business Dev. Rep. PROBATE COURT Linda Hallmark, Chief Judge Rebecca Schnelz, Administrator PROSECUTING ATTORNEY Terri Meiers, Supervisor PUBLIC SERVICES Mike Zehnder, Director PURCHASING Jack Smith, Manager SHERIFF Michael McCabe, Undersheriff Dale Cunningham, Business Manager Mark Newman, Captain Kent Gardner, Lab Director ROAD COMMISSION Tom Noechel, Programming Supervisor BOARD OF COMMISSIONERS Angela River, District 11 Jim Ver Ploeg, Administrative Director Harvey Wedell, Sr. Analyst Julia Ruffin, BOC Liaison Helen Hanger, Sr. Committee Coordinator PLEDGE OF ALLEGIANCE Chairperson Middleton led the Pledge of Allegiance. APPROVAL OF THE PREVIOUS MINUTES Runestad moved approval of the previous minutes o f July 12, 2012 as printed. Supported by Zack. Motion carried on a voice vote. AGENDA The agenda stands as printed. PUBLIC COMMENT Chairman Middleton recognized Ms. Smith for her work with the Finance Committee and presented her with a proclamation. FY 2012 CONTINGENCY REPORT The Fiscal Year (FY) 2012 Contingency Fund balance of $319,745 will be increased by $48,366 to $368,111 with adoption of Item 4 on today’s actions. The Grant Match line item will be decreased by $246,751 to $530,826 by adoption of Item 15 on today’s agenda. Dwyer moved to receive and file the FY 2012 Contingency Report dated July 19, 2012. Supported by Crawford. Motion carried on a voice vote. FINANCE COMMITTEE Page 3 July 26, 2012 CONSENT AGENDA 1a. MR #12189 – BOARD OF COMMISSIONERS – TRI-PARTY ROAD IMPROVEMENT PROGRAM FISCAL YEAR 2012 APPROPRIATION – TOWNSHIP OF ROSE – GRAVEL ROAD PROGRAM – PROJECT NO. 51442 Introduced by Commissioner Hoffman, the resolution approves the project submitted by the Township of Rose 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 gravel on various roads within the Township. A copy of the Cost Participation Agreement between the Road Commission for Oakland County and the Township is included. A budget amendment of $10,000 will be made as outlined in the Fiscal Note. 1b. MR #12186 – BOARD OF COMMISSIONERS – TRI-PARTY ROAD IMPROVEMENT PROGRAM FISCAL YEAR 2012 APPROPRIATION – CITY OF LAKE ANGELUS – GRAVEL ROAD PROGRAM – PROJECT NO. 51442 Introduced by Commissioner Scott, the resolution approves the project submitted by the City of Lake Angelus 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 gravel on various roads within the City . A copy of the Cost Participation Agreement between the Road Commission for Oakland County and the City is included. A budget amendment of $6,720 will be made as outlined in the Fiscal Note. Taub moved approval of the attached sug gested Consent Agenda Fiscal Notes. Supported by Crawford. Motion carried unanimously on a roll call vote with Long and Quarles absent. REGULAR AGENDA 2. MR #12152 – BOARD OF COMMISSIONERS – TRI-PARTY PROGRAM FOR ROAD IMPROVEMENTS The resolution was introduced by Commissioner Gingell to approve use of un-committed County Tri-Party Program funds by communities who have identified a project and submit a request following the guidelines of MR #09221 as amended by MR #10045 . In February, 2012 the Road Commission for Oakland County (RCOC) sent a letter to all participating municipalities requesting they identify applicable road projects for their un-committed tri-party funds or those funds would be reclaimed by the RCOC and County and offered to other communities in a one-time activity to utilize all available Tri-Party funds, resulting in the permanent loss of these funds to those communities. Chairperson Middleton explained that all commissioners were made award of this proposal and asked to contact their communities to see if they had pending projects that coul d be funded. Some expressed an interest and others did not because they do not have the funds to participate. Runestad moved approval of the attached suggested Fiscal Note . Supported by Potts. Motion carried unanimously on a roll call vote with Long and Quarles absent. FINANCE COMMITTEE Page 4 July 26, 2012 3. DEPARTMENT OF INFORMATION TECHNOLOGY AND DEPARTMENT OF MANAGEMENT AND BUDGET / EQUALIZATION DIVISION – UPGRADE OF TAXING AND ASSESSING SOFTWARE TO BS&A.NET EDITION Management and Budge t is requesting an appropriation and transfer of $3,046,418 from Planned Use of Fund Balance for the Major Departmental Support Projects Fund #42060 for BS &A.NET implementation. This is an upgrade from the existing taxation and assessmen t BS&A Pervasive software, which is nearing the end of its life. The new software was chosen through the Request for Proposal process and is anticipated to provide the best solution with enhanced benefits for Oakland County and subscribing local units of government as outlined in the resolution . A budget amendment for FY 2012 will be made as reflected in the resolution. Mr. Bertolini explained that there was only one other bidder whose price was four times higher and whose software has not been approve d by the state at this time. Letters of support for this software were received from 21 communities and included in the backup material. The new software will provide increased functionality and a better exchange with communities that are on a different data platform. Savings of volume purchasing in licensing for 300,000 parcels is passed on to the local units and contracted communities. Payment will be over three years as the software is implemented. Every community will be notified of the change so those that do not contract with the County for this service can be provided with the opportunity to do so. Mr. Van Leuven explained that one thing this will do for the Treasurer’s Office annual settlement with the local units will be to eliminate countle ss hours of staff time in re-keying of data input. Taub moved approval of the attached suggested Resolution. Supported by Dwyer. Motion carried on a roll call vote with Long and Quarles absent . 4. DEPARTMENT OF MANAGEMENT AND BUDGET / EQUALIZATION DI VISION – APPROVAL OF CONTRACT FOR OAKLAND COUNTY EQUALIZATION DIVISION ASSISTANCE SERVICES WITH THE TOWNSHIP OF ROSE Management and Budget is requesting authorization to contract with the Township of Rose to provide services including original assessments , reappraisals and file maintenance for the period June 13, 2012 through June 30, 2013. A budget amendment to recognize $48,366 in revenue and expenditures will be made as reflected in the resolution. Taub moved approval of the attached suggested Resolution. Supported by Runestad. Motion carried unanimously on a roll call vote with Long and Quarles absent. 5. DEPARTMENT OF PUBLIC SERVICES/COMMUNITY CORRECTIONS – MICHIGAN DEPARTMENT OF CORRECTIONS, OFFICE OF COMMUNITY CORRECTIONS, COMMUNITY CORRECT IONS COMPREHENSIVE PLAN AND APPLICATION FOR FY 2013 Community Corrections is requesting authorization to submit its FY 2013 application to the Michigan Department of Corrections for funding of $1,796,803. The State will continue to hold, pay and bill for all probation residential services contracts for $1,987,425. The County is responsible for requesting the allocation and tracking the costs. Once awarded, the grant will continue funding for positions in Community Corrections and the Sheriff’s Office as outlined in the Fiscal Note. Taub moved approval of the attached suggested Fiscal Note. Supported by Crawford. FINANCE COMMITTEE Page 5 July 26, 2012 Motion carried unanimously on a roll call vote with Long and Quarles absent. 6. MR #12184 - SHERIFF’S OFFICE – CONTRACT FOR PTNE MOUNTED DE PUTIES FOR THE CHARTER TOWNSHIP OF WHITE LAKE FOR LAW ENFORCEMENT SERVICES The Sheriff is requesting authorization to enter into a law enforcement agreement with White Lake Township for two 200 hour General Fund/General Purpose part-time non-eligible Mounted Deputy positions that will be used to provide patrol services for the school sponsored fair/carnival during the period of May 1, 2012 through December 31, 2012. Overtime rates will be utilized. Sufficient funding is included in the County Executive R ecommended budget for FY 2013 -2015. Runestad moved approval of the attached suggested Fiscal Note . Supported by Dwyer. Motion carried unanimously on a roll call vote with Long and Quarles absent. 7. MR #12185 – SHERIFF’S OFFICE – REORGANIZATION OF THE FORENSIC LABORATORY AND RELATED POSITION CHANGES The Sheriff is requesting authorization to reorganize positions in the Forensic Laboratory to prepare for changes occurring due to technology, certification and establishment of the DNA Laboratory an d increased demands on the Results Program and Confirmation Testing of positive urine tests. The following positions would be created in the Investigative & Forensic Services Division, Forensic Services Unit: One Full -Time Eligible General Fund/General Purpose (FTE GF/GP) Grade 16 Forensic Biologist Leader, one FTE GF/GP Grade 14 Forensic Biologist position, one FTE GF/GP Grade 12 Forensic Toxicologist Chemist position (to handle case backlog and increased caseload) and two part -time non-eligible (PTNE) 1,000 hours per year GF/GP Office Assistant II positions for office support. Two FTE GF/GP Office Assistant I positions would be created in the Corrective Services Satellite Division, East Annex Unit to provide support for the two results program collectio n sites. The following positions would be deleted: one FTE GF/GP Deputy II Road Patrol position, one FTE GF/GP Forensic Lab Specialist II position, one FTE GF/GP Forensic Artist position, one FTE GF/GP Office Assistant II position, one full -time non-eligible (FTNE) Office Assistant II position and one PTNE Office Assistant II position. Effective with the FY 2013 budget, one GF/GP Grade 9 Chemist Assistant position will be upgraded to a Grade 12 Forensic Toxicologist Chemist classification. Continuation of the Forensic Biologist Leader and Forensic Biologist positions are contingent upon securing grant funding, generating additional General Fund revenue through contracted lab work or other budget adjustments. Continuation of the Forensic Toxicologist Che mist and Office Assistant I positions for the results program are contingent upon maintaining General Fund revenue through contracted lab work or other budget adjustments. Funds of $271,280 will be drawn from Deferred Revenue GL – Lab Fees Enhancement Funds for one-time capital equipment of $236,280 and $35,000 will pay for professional service consultants related to laboratory renovations. The Sheriff has applied for a Paul Coverdale FY 2013 Federal Operating grant to support the two new Biologist positi ons. If this funding is not received, the GL forfeiture account and/or increased GF Lab Fee revenues or other budget adjustments will be used to fund the positions. This reorganization is anticipated to result in operational efficiencies and the Sheriff is committed to not increasing general fund costs. The budget will be amended as reflected in the Fiscal Note. Undersheriff McCabe explained that the State Laboratory has a backlog at times up to 12 months. Violent crimes take precedent over property cr imes. This reorganization will generate revenue and some work will be turned into the state for reimbursement. There will be no charge to Oakland County communities. Once the lab is up and running and Oakland County’s communities are taken care of there will be discussion on providing services at a fee to outside agencies. However, if there is an emergency case, the Sheriff would provide assistance. Taub moved approval of the attached suggested Fiscal Note. Supported by Dwyer. FINANCE COMMITTEE Page 6 July 26, 2012 Motion carried unan imously on a roll call vote with Long, Runestad and Quarles absent. 8. FACILITIES MANAGEMENT/PARKS AND RECREATION COMMISSION – MICHIGAN ECONOMIC DEVELOPMENT CORPORATION – URBAN FARMERS MARKET PROGRAM GRANT The Oakland County Parks and Recreation Commiss ion (OCPRC) has assumed management and operation of the Oakland County Ma rket and, in conjunction with Oakland County Facilities Management, is requesting authorization to accept a Michigan Economic Development Corporation grant of $50,000 for the purpose of increasing access to healthy local foods, building awareness through promotions and marketing and providing business development resources for farmers. The total project cost of $125,000 includes a $75,000 match to be funded from the FY 2012 and FY 201 3 OCPRC budget. The FY 2012 and FY 2013 budget will be amended as reflected in the Fiscal Note. Ms. Wells indicated that this has historically been a farmers’ market and that is the focus for this operation. Commissioner Zack stated that OCPRC has a gr eenhouse and provides recreational education and she believes this is a good opportunity to build on local produce and grow this program. Ms. Prowse explained that the OCPRC performed a study with MSU Extension and came up with best practices and package d this program as a grant application. This award is actually 25% of the money awarded throughout the entire state. OCPRC is doing market research with the farmers to find out how to bring more people in. A new bus stop is being constructed on county center drive to bring more people to the market and the Road Commission is providing accessibility from OCPRC’s parking lot to the market as well. Zack moved approval of the attached suggested Fiscal Note. Supported by Woodward. Motion carried unanimously on a roll call vote with Long and Quarles absent. 9. FACILITIES MANAGEMENT/PARKS AND RECREATION COMMISSION – MICHIGAN DEPARTMENT OF NATURAL RESOURCES LANDOWNER INCENTIVE PROGRAM GRANT The Oakland County Parks and Recreation Commission (OCPRC), in conjunction with Facilities Management, is requesting acceptance of an Invasive Species Control at Red Oaks County Park grant of $3,500 from the Michigan Department of Natural Resources for the period of May 11, 2012 - December 31, 2012. OCPRC has identified and established properties for stewardship and maintenance of park natural resources within the adopted Recreation Master Plan and the need for control of invasive species at the Red Oaks County Park. The FY 2012 budget will be amended as reflected i n the Fiscal Note. Crawford moved approval of the attached suggested Fiscal Note . Supported by Taub. Motion carried unanimously on a roll call vote with Long and Quarles absent. 10. DEPARTMENT OF ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS/ARTS, CULTURE & FILM – FY 2012 REGIONAL REGRANTING ADMINISTRATIVE SERVICES PROGRAM GRANT ACCEPTANCE – MICHIGAN COUNCIL FOR ARTS AND CULTURAL AFFAIRS Economic Development & Community Affairs is requesting authorization to accept a $6,200 Michigan Council for Arts and Cultural Affairs administrative services grant for FY 2012. Local in -kind match of $6,200 consists of salary costs and is available in the department’s budget and the award is included in the County Executive Recommended Budget for FY 2013 -2015. Dwyer moved approval of the attached suggested Fiscal Note. Supported by Taub. FINANCE COMMITTEE Page 7 July 26, 2012 Motion carried unanimously on a roll call vote with Long and Quarles absent. 11. DEPARTMENT OF ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS/ARTS, CULTURE & FILM – FY 2012 REGIONAL REGRANTING SERVICES PROGRAM GRANT ACCEPTANCE – MICHIGAN COUNCIL FOR ARTS AND CULTURAL AFFAIRS Economic Development & Community Affairs is request ing authorization to accept a $19 ,200 Michigan Council for Arts and Cultural Affairs Regional Re -granting Services grant for FY 2012. There is no required county match. The award is included in the County Executive Recommended Budget for FY 2013 -2015. Taub moved approval of the attached suggested Fiscal Note. Supported by Zack. Motion carried unanimously on a roll call vote with Long and Quarles absent. 12. MR #12182 - DEPARTMENT OF ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS /COMMUNITY & HOME IMPROVEMENT DIVISION – HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) SUBRECIPIENT AGREEMENT BETWEEN THE CITY OF PO NTIAC AND COUNTY OF OAKLAND FOR HOME PROGRAM YEARS (PY) 2010, 2011 AND 2012 FUNDING Community and Home Improvement is requesting authorization to enter into a Subrecipient Agreement with the City of Pontiac (the City) to administer HOME funds totaling $1,338,709 from Program Years (PY) 2010 ($532,114), 2011 ($470,397) and 2012 ($336,198). The City, as a HOME Investment Partnership Program Participating Jurisdiction, qualifies to receive annual HOME funding directly from HUD and is allowed to contract with eligible entities to administer HOME activities on the City’s behalf through a Subrecipient agreement. The City has requested Oakland County to administer HOME funding. Oakland County will implement a housing rehabilitation program (Oakland County Home I mprovement Loan Program) to improve qualified single family owner occupant housing units and implement the Community Housin g Development Organization affordable housing development program set aside within the City. HUD requires no HOME program matching funds as the City qualifies to receive a 100% match reduction as a distressed city. The County shall not be paid HOME administration funds but shall be permitted to charge HOME project service delivery costs to each project as indicated in the Fiscal Note. A budget amendment will be made as outlined in the Fiscal Note. Potts moved approval of the attached suggested Fiscal Note. Supported by Crawford. Taub moved to amend the Fiscal Note, paragraph 6 to add “for FY 2010 and FY 2011” (see below). The County, as the Subrecipient, shall not be paid HOME administration funds, but shall be permitted to charge HOME project service delivery costs to each project. The project delivery costs are listed as $281,900 (or $140,950 annually for FY 2010 and FY 2011). Supported by Crawford. Motion to amend carried on a voice vote. Main motion as amended carried unanimously on a roll call vote with Long and Quarles absent. 13. DEPARTMENT OF ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS - COMMUNITY & HOME IMPROVEMENT DIVISION – GRANT ACCEPTANCE FOR PY 2010 ANNUAL ACTION PLAN SUBSTANTIAL AMENDMENT FOR NEIGHBORHOOD STABILIZATION PROGRAM 3 -PONTIAC (NSP3 -P) Community and Home Improvement is requesting authorization to accept Neighborhood Stabilization FINANCE COMMITTEE Page 8 July 26, 2012 Program 3-Pontiac (NSP3-P) Federal grant funding of $1,410,621 from the U.S. Department of Housing and Urban Development (HUD) in the amount of $1,410,621 as a Substantial Amendment to the 2010 Community Development Block Grant (CDBG) Annual Action Plan for a three year period. This is a one- time emergency funding supplement to the 2010 CDBG program as a targeted initiative to stabilize neighborhoods hardest hit by foreclosures. Funding requirements and details are outlined in the Fiscal Note. An amendment to the FY 2012 budget will be made as outlined in the Fiscal Note. Taub moved approval of the attached suggested Fiscal Note. Supported by Zack. Motion carried unanimously on a roll call vote with Long and Quarles absent. 14. DEPARTMENT OF ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS - COMMUNITY & HOME IMPROVEMENT DIVISION – GRANT ACCEPTANCE FOR SECOND EMERGENCY SHELTER GRANTS/EMERGENCY SOLUTIONS GRANTS PROGRAM (ESG) PY 2011 ALLOCATION Community and Home Improvement is requesting authorization to accept a $96,017 second Program Year 2011 allocation of Emergency Solutions Grant funding from the U.S. Department of Housing and Urban Development (HUD) subject to clarifications provided in the March 20, 2007 letter from Jeanette Harris, Director, Community Planning and Development, Detroit Field Office, HUD regarding Discharge policies and participation in the HMIS System. This grant provides financial and case management assistance to individuals and families who would otherwise become homeless and help those who are ex periencing homelessness to be quickly re -housed and stabilized. An amendment to the FY 2012 budget will be made as outlined in the Fiscal Note. Dwyer moved approval of the attached suggested Resolution. Supported by Crawford. Motion carried unanimously on a roll call vote with Long and Quarles absent. 15. DEPARTMENT OF ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS - COMMUNITY & HOME IMPROVEMENT DIVISION – 2012 ANNUAL ACTION PLAN AND CONSOLIDATED GRANT ACCEPTANCE FOR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG), HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) AND EMERGENCY SHELTER/EMERGENCY SOLUTIONS GRANT (ESG) PROGRAMS Community and Home Improvement is requesting authorization to accept a federal grant award of from the U.S. Department of Housing and Urban D evelopment, consisting of $4,950,191 - consolidated Community Development Block Grant, $1,096,668 - HOME Investment Partnership Grant, $303,461 - Emergency Shelter Grant , $500,000 in estimated Home Improvement Revolving Loan Funds, $250,000 in estimated HOME Program Income and a required HOME County match of $246,751 for a 2012 program total of $7,347,071. This award is a $930,762 increase over the 2011 program year. Details regarding the program and those positions funded by the grant are included in the Fiscal Note, the resolution and the program detail attached thereto. An amendment to the FY 2012 budget will be made as outlined in the Fiscal Note. Taub moved approval of the attached suggested Fiscal Note. Supported by Zack. Motion carried unanimously on a roll call vote with Long and Quarles absent. 16. DEPARTMENT OF INFORMATION TECHNOLOGY – CITY OF FARMINGTON DEPARTMENT OF PUBLIC SAFETY CESSATION OF PSAP FUNCTIONS The resolution will authorize a minor amendment to the Final Amended 9 -1-1 Service Plan for the County of Oakland by deleting the City of Farmington Department of Public Safety from the list of primary public service answering points (PSAPs). There is no fiscal impact. FINANCE COMMITTEE Page 9 July 26, 2012 Ms. Coates reported that Farmington will be contracting with Farmington Hills effective October 1. Originally there were 32 PSAPs and this action will reduce the number to 23. Oakland County still has the second highest number of PSAPs in the state. The State is proposing to implement standards for 9-1-1 operators. New 9 -1-1 technology is coming and it will be difficult for the local units to keep up. Dwyer moved approval of the attached suggested Resolution. Supported by Taub. Motion carried unanimously on a roll call vote with Long, Runestad and Quarles absent. 17. TREASURER / WATER RESOURCES COMMISSION – RESOLUTION TO AUTHORIZE OAKLAND COUNTY ROCHESTER HILLS WATER SUPPLY AND SEWAGE DISPOSAL SYSTEM REFUNDING BONDS, SERIES 2012 The Treasurer, on behalf of the Water Resources Commissioner, is requesti ng authorization to issue refunding bonds for the Rochester Hills Wa ter Supply and Sewage Disposal System in an aggregate principal amount of not to exceed $2,150,000 to refund remaining Prior Bonds issued December 1, 2005 in the original principal amount of $3,800,000 at an interest rate not to exceed 5%. This action will result in a savings of $128,000. Taub moved approval of the attached suggested Resolution. Supported by Crawford. Motion carried unanimously on a roll call vote with Long, Runestad and Quarles absent. 18. BOARD OF COMMISSIONERS – PAYMENT OF 2012 COUNTY DUES FOR MICHIGAN ASSOCIATION OF COUNTIES (MAC) MR #04298 requires that the Finance Committee approve annual payment of the County’s dues to the Michigan Association of Counties (MAC) prior to processing the invoice. Commissioner Hatchett, current president of MAC, recognized Commissioners Taub, Middleton and Quarles for getting more involved and serving on MAC committees and encouraged commissioners to continue representing Oakland County through participation on an ongoing basis. Oakland County resolutions concerning legislation would have better results if more commissioners would serve on MAC committees and speak up. Commissioner Hatchett reported that one initiative she ha d announced when first sworn in – Veterans’ Affairs – has been taken up and is moving ahead and MAC is forming a Veterans’ Task Force. There is increased interest throughout the United States in addressing the needs of the nation’s veterans who should be receiving the services they deserve. Commissioner Hatchett extended an invitation to MAC’s annual conference September 23 at Shanty Creek. The conference is held in September because rates are reduced. Her presidency will end at that time. Taub moved to authorize payment of the Fiscal Year 20 12-2013 MAC County Dues Invoice. Supported by Crawford. Motion carried unanimously on a roll call vote with Long, Runestad and Quarles absent. 19. OAKLAND COUNTY, MICHIGAN FY 2013, FY 2014 AND FY 2015 COUNT Y EXECUTIVE RECOMMENDED BUDGET – AN OVERVIEW JULY 26, 2012 Mr. Soave presented the overview of the Fiscal Year (FY) 2013 -2015 County Executive Recommended Budget in conjunction with the pr esentation material distributed to committee members. An overview was FINANCE COMMITTEE Page 10 July 26, 2012 also presented by County Executive Patterson during the July 18, 2012 Board meeting. Mr. Soave reviewed the County’s fund structure – General Fund/General Purpose (GF/GP); Special Revenue (SR) and Proprietary Fund (PR), provided highlights of the budget, gave a short explanation of how to read the budget and explained how the amendment process for the recommended budget would proceed . The FY 2013 Recommended Budget of $77.5 million is a $3.0 million or 0.4% increase over FY 2012. The entire increase is in the PR Fund due to a change in practice for the drain revolving funding resulting from a better billing system to track costs. The FY 2014 Recommended Budget reflects a 6.6% increase above FY 2013 primarily as a result of a 1% general salary increas e (the first since 2008) and an additional 6% for health care. FY 2015 recommends a $4.1 million increase over F Y 2014 primarily for the same reasons FY 2014 increased. Mr. Soave explained how the budget amendment process occur s. Amendments are placed on a list to be considered at the final budget wrap -up on August 30. Crawford moved to receive and file the overview. Supported by Zack. Motion carried on a voice vote. COMMUNICATIONS A. Department of Management and Budget / Purchasing Division – Contract Exception Report for the Month of July 2012 Dwyer moved to receive and file the communications. Supported by Woodward. Motion carried on a voice vote. The Committee recessed from 10:40 a.m. – 10:47 a.m. BUDGET HEARINGS CIRCUIT COURT Chief Judge Grant stated that the Circuit Court has met its budget task and is in support of the County Executive’s Recommended Budget. The FY 2013 budget is essen tially the same as the Court’s FY 2012 budget. E-Filing has been expanded to include th e entire DO (Divorce without Minor Children) and DM (Divorce with Minor Children) docket and the general civil document, which means that 38% of all the court’s cases are now E-filed. Oakland County Circuit Court is one of three pilot business court programs launched earlier this month at the request of the State Supreme Court . The Family Division is continuing to work on removing barriers to adoption for children whose parent’s rights have been terminated. The Court is already seeing a 60-day reduction from the beginning to final adoption. Circuit Court is collaborating with the 52nd District Court on PPO hearings, which are held here in the county courthouse. Self-help kiosks have been installed in the Friend of the Court lobby to assist citizens t o print and submit forms immediately. A court order is now required for the removal of children to protective custody if a child is considered in harm’s way. Mr. Oeffner responded to several questions pertaining to the line item budget. Regarding Libra ry Continuations, he explained that requests from judges, referees, etc. are handled through the Law Library because of their ability to buy in bulk at reduced prices. DISTRICT COURT Chief Judge Nicholson stated that the 52nd District Court has met its budget task and is in support of the County Executive’s Recommended Budget. The Court has instituted an e-Pay system and as of March has FINANCE COMMITTEE Page 11 July 26, 2012 collected $9.2 million through the system , resulting in a huge savings for the users and the court in staff time. The District Court did quite a bit of cutting to part -time eligible staffing but turnover is becoming a problem. The court is concerned because there is about a 6-12 month learning curve and PTNEs are being offered full time jobs with benefits at other cou rts. The District Court works through the Library Board to obtain its library continuations and is doing as much as possible to be cost effective. Caseload statewide has decreased about 22%. The District Court is experiencing a 19% decrease in caseload but its revenue has only decreased by 4 %. The divisions work together and are training for conversion to the Judicial Information System. The full bench and all four administrators meet regularly to explore additional ways to work together. The Court is experiencing a turnover problem with its part-time non-eligibles (PTNEs) and is working with Human Resources (HR) to address the issue . It is a challenge to have four locations in four different quadrants of the county. When staff leaves court administration considers what its needs and resources are and how to fill a position in trying to maximize what we do with what we have. PROBATE COURT Judge Hallmark presented on behalf of the Probate Court. A State-wide resources report (time study) is recommending more probate court judges but Judge Hallmark indicated they were not present to ask for any. The Court deals with estate and guardianship cases for the mentally ill and senior citizens and its caseload is not decreasing. The Court is working hard to manage with what they have and is reorganizing to move some things back to our chamber staff and has tacked on to Circuit Court’s E-Filing system to save money. Two Probate judges also sit in Family Court. Requests for Library Continuations are ha ndled in the same manner as the other courts. Ms. Schnelz indicated that the Probate Court’s staffing is very slim and if the caseload goes up much more they would be pushing the envelope. (At 10:40 a.m. the Finance Committee lost its quorum.) COUNTY EXECUTIVE Messrs. Poisson and Daddow and M mes. Van Pelt and Scarlet presented an overview on the County Executive’s Recommended Budget (CERB) for his departments. Mr. Poisson stated that there is now an aggressive culture in this county for the elected officials to watch their budgets while continuing to maintain responsibility to the citizens. The budget consists of 56.5% going to law enforcement and administration of justice - 39% to the sheriff and 18% for the courts and prosecutor. The County Executive’s budget includes Public Services – Health and Human Services, Community and Economic Development and operations that support and assist the priorities of public safety and public health and welfare, including Facilities Management, Information Techno logy and Central Services. Mr. Poisson also noted that library continuations are handled through the Library Board. Mr. Daddow explained that the CERB is based on the previous framework document which is a continuing process. The equity position of the General Fund is anticipated at about $201 million. The purpose of growing fund equity was to provide fund equity of $120 million for use in the next three years to provide stable services as operating departments reorganize. At 2015 the County will be at $85 million target equity but 2016 issues will be a problem going out from 2015 if no further action is taken. The administration will begin developing the 2016 operating budget in fall 2012. While many fiscally stressed units are not dealing with their problems, Oakland County will continue to take action to keep fiscally stable and provide services to its citizens. Ms. Van Pelt explained that budget changes for Management and Budget include a request to continue an Equalization Field Supervisor due to more assessing demand and downward reclassification of several positions in Fiscal Services. There are more Animal Control contracts with local units that will need FINANCE COMMITTEE Page 12 July 26, 2012 oversight. These contracts will qualify for cooperative arrangements. Purchasing and Auditing will be merged and one manager position will be deleted. Human Resources (HR) is currently reviewing this reorganization. Economic Development found a grant to fund 40% of one position. One-third of the County’s workforce will be eligible for retirement and there are instances where other staff is leaving as well so succession planning will be more challenging. HR changes to increase the prescription drug co-pay and establish the emergency room co-pay are not yet incorporated into the budget. These savings are on top of the CERB budget task already met. HR has done a great job keeping health care costs down in its negotiations with vendors and is trying to insure that the County’s total compensation package remain s good in trying to attract and recruit employees. There are a lot of changes going on with health care and balancing the budget. Mr. Gibb reported that 7,500 positions were created in downtown areas in the last several years. The county is assisting nine work centers through the county and is trying to achieve full employment. Workforce Development received an economic growth grant to perform a needs assessment in skilled work trades and they are pursuing a technical training institute with community college, universities a nd local manufacturing. A second Michigan Economic Development Corporation Grant was received in cooperation with Information Technology to create an educational portal for the county and the region so people can seek employment or re-training opportunities – mytrade.org. The Area Agency on Aging 1 -B has also secured a grant for an IT program. Once the portal is complete, the County will pursue re -purposing old school buildings to convert to technology training environment s. Mr. Poisson asked that com mittee members call him if they had any additional questions. WATER RESOURCES COMMISSIONER In response to questions, Mr. McCulloch explained that the majority of expenses in his line item budget for periodicals are for on -line blue book subscriptions containing national standards to use for negotiations with contractors for change orders . The cost is about $1,000 a year. Three years ago he sat down with staff and discovered that three of them were getting the same materials so they did a matrix and consolidated memberships and subscriptions and got more involved with the Library Board. Oakland County initially implemented Chapter 20 drains and they were added to the Drain Code. The County is now j ust shy of 200 Chapter 20 drains. Out-state counties typically use the old Agriculture Chapter 4 drains. This speaks to the size and sophistication of Oakland County’s operation. Acts 185 and 342 can also be used for operations but the County Executive Act 139 negated Act 185 for Oakland County. The WRC is trying to work with the legislature to change this in order to provide another tool for the WRC . Two line items used to hire professional consultants were created to separately track expenditures in pursuing environmental and other grants. Federal earmarks have mostly been eliminated but the WRC was successful in the past in pursuing environmental grants and as the opportunity arises, they will continue. One example is Pontiac. The WRC qualifies for and is currently pursuing collaboration funding made ava ilable through the State Treasurer’s Office. The WRC issued bonds at about 2.7%, utilizing the County’s Full Faith and Credit, on behalf of Farmington Hills to construct a water tower to draw down Detroit water in non -peak hours. The City hopes to have the tower in place before the next rate cycle. Peak hours is a moving target and it will be up to the community to monitor usage. Pontiac wastewater treatment plan t bonds are on track to be issued in about 30 days with hopefully a comparable rate to the Farmington Hills water tower project. These bonds will be taxable instead of non -taxable but the County’s rating should help considerably. There is movement in other communities regarding this project that looks promising and the WRC is working on build ing the rates using municipal data. There is also an uptick in soil erosion permits. OTHER BUSINESS/ADJOURNMENT There being no other business to come before the committe e, the meeting was adjourned at 11:55 a.m. FINANCE COMMITTEE Page 13 July 26, 2012 ________________________ _______________________________ Helen A. Hanger Jim Ver Ploeg Senior Committee Coordinator Administrator Director NOTE: The foregoing minutes are subject to Committee approval.