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HomeMy WebLinkAboutMinutes - 2012.08.16 - 36654TOM MIDDLETON Chairperson SHELLEY TAUB Vice Chairperson DAVID WOODWARD Minority Vice Chairperson August 16, 2012 Chairperson Middleton called the meeting of the Finance C ommittee to order at 9:03 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, Christine Long, David Potts, Jim Runestad, Kathy Crawford, Bill Dwyer, Helaine Zack, Nancy Quarles COMMITTEE MEMBERS ABSENT: None. OTHERS PRESENT CLERK/REGISTER OF DEEDS Bill Bullard, Clerk/Register of Deeds Larry Doyle, Deputy Chris Ward, Deputy ECONOMIC DEVELOPMENT Irene Spanos, Director EXECUTIVE Gerald Poisson, Chief Deputy Bob Daddow, Deputy FACILITIES MANAGEMENT Art Holdsworth, Director Bob Larkin, Manager HEALTH & HUMAN SERVICES George Miller, Director HUMAN RESOURCES Karen Jones, Manager INFORMATION TECHNOLOGY Ed Poisson, Director LIBRARY BOARD Laura Mancini, Director MANAGEMENT & BUDGET Laurie Van Pelt, Director FISCAL SERVICES Tim Soave, Manager Lynn Sonkiss, Chief Holly Conforti, Chief Gaia Piir, Supervisor Prentiss Malone, Analyst Ebru Adoglu-Jones, Analyst Jeff Phelps, Analyst PARKS AND RECREATION COMMISSION Dan Stencil, Executive Officer Terry Fields, Chief PROSECUTING ATTORNEY Jessica Cooper, Prosecuting Attorney Paul Walton, Deputy Julie McMurty, Chief Terri Meiers, Supervisor PURCHASING Jack Smith, Manager 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 August 16, 2012 SHERIFF Michael Bouchard, Sheriff Michael McCabe, Undersheriff Dale Cunningham, Business Manager Mark Newman, Captain TREASURER Andy Meisner, Treasurer Jim VanLeuven, Chief Deputy BOARD OF COMMISSIONERS Angela River, District 11 Marcia Gershenson, District 17 Gary McGillivray, District 24 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 Taub moved approval of the previous minutes o f July 26, 2012 as printed. Supported by Quarles. Motion carried on a voice vote. AGENDA The agenda stands as printed. PUBLIC COMMENT None. FY 2012 CONTINGENCY REPORT The Fiscal Year (FY) 2012 Contingency Fund balance of $368,111 will not be impacted by items on today’s agenda. Capital Outlay has been decreased by $3,200 to $60,179 for Children’s Village purchase of metal detector. Long moved to receive and file the FY 2012 Contingency Report dated August 8, 2012. Supported by Crawford. Motion carried on a voice vote. CONSENT AGENDA 1a. MR #12207 – BOARD OF COMMISSIONERS – TRI-PARTY ROAD IMPROVEMENT PROGRAM FISCAL YEAR 2012 APPROPRIATION – TOWNSHIP OF NOVI – RESURFACING VARIOUS LOCAL ROADS – PROJECT NO. 51452 Introduced by Commissioner Crawford, the resolution approves the project submitted by the Township of Novi 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 FINANCE COMMITTEE Page 3 August 16, 2012 consists of resurfacing of various roads within the Township. A copy of the Cost Participation Agreement between the Road Commission for Oakland County and the City is included. A budget amendment of $498 will be made as outlined in the Fiscal Note . 1b. MR #12209 – BOARD OF COMMISSIONERS – TRI-PARTY ROAD IMPROVEMENT PROGRAM FISCAL YEAR 2012 APPROPRIATION – CHARTER TOWNSHIP OF WEST BLOOMFIELD – NASHWAY DRIVE PROGRAM – PROJECT NO. 51432 Introduced by Commissioners Gershenson, Scott and Taub , the resolution approves the project submitted by the Charter Township of West Bloomfield 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 resurfacing of Nashway Drive from Norma Lee to Maple Road . A copy of the Cost Participation Agreement between the Road Commission for Oakland County and the Township is included. A budget amendment of $25,000 will be made as outlined in the Fiscal Note. Taub moved approval of the attached suggested Consent Agenda Fiscal Notes. Supported by Zack. Motion carried unanimously on a roll call vote with Woodward absent. REGULAR AGENDA 2. MR #12204 - SHERIFF’S OFFICE – CONTRACT FOR LAW ENFORCEMENT SERVICES AT THE MICHIGAN RENAISSANCE FESTIVAL – 2012 SEASON The Sheriff is requesting authorization to enter into a law enforcement agreement with the Michigan Renaissance Festival, operator of the summer theatre facility by the same na me located in Groveland Township. Deputies will be supplied on an over -time basis with the number of man hours deter mined by the Sheriff’s Office. Revenue and expenditures for this contract are included in the FY 2012 budget. Long moved to recommend app roval of the attached suggested Fiscal Note . Supported by Dwyer. Motion carried unanimously on a roll call vote. 3. MR #12205 - PROSECUTING ATTORNEY – REVISION OF THE FISCAL YEAR 2012 BUDGET Due to a reduction in revenue activity, the Prosecuting At torney is revising its budget task by requesting authorization to delete one General Fund/General Purpose full -time eligible (GF/GP FTE) Office Assistant II position and create one GF/GP FT non -eligible 2,000 hours/year Office Assistant I position in its Administration Division beginning of Fiscal Year 2012, September 24, 2011. Savings will be derived from benefits, with no reduction in staff. The budget will be amended as outlined in the Fiscal Note. Dwyer moved approval of the attached suggested Fisca l Note. Supported by Quarles. Motion carried unanimously on a roll call vote. 4. ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS – 2012 MiTradeSchool.org GRANT ACCEPTANCE Economic Development and Community Affairs is requesting authorization to accept a Mich igan Economic Development Corporation (MDEC) grant of $60,000 for the period of August 1, 2012 through December 31, 2012. That grant award includes $50,000 for development of a database and web portal that lists trade schools, apprenticeships and other tr ade related training programs for residents and businesses and $10,000 for implementation costs of a regional Salesforce system. The budget will be amended to accept FINANCE COMMITTEE Page 4 August 16, 2012 the grant 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. 5. MR #12202 – FACILITIES MANAGEMENT/PARKS AND RECREATION COMMISSION – GEORGE W. SUAREZ FRIENDSHIP WOODS/RED OAKS NATURE CENTER LEASE Facilities Management and the Oakland County Parks and Recreation Commission is requesting authorization to enter into a lease agreement with the City of Madison Heights to maintain and operate the 38-acre George W. Suarez Friendship Woods facility which will inc lude the Red Oaks Nature Center, in the amount of $1 for the lease period of 25 years . The parcel is contiguous to Red Oaks County Park and will be known as part of the park complex. The Nature Center was funded through a Michigan Natural Resources Trust Fund Grant and the lease will be consistent with the grant agreement. Funding to maintain and operate the facility will be included in the OCPRC Operating Budget. No budget amendment is required. Taub moved approval of the attached suggested Fiscal Note. Supported by Zack. Motion carried unanimously on a roll call vote. 6. FACILITIES MANAGEMENT / FACILITIES MAINTENANCE & OPERATIONS – ELEVATOR MODERNIZATION PROJECT Facilities Management is requesting authorization to proceed with transfer of fundin g of $585,910 from the FY 12 Capital Improvement Program (CIP)/Building Improvement Fund to the Project Work Order Fund for the Elevator Modernization Project. The elevators were installed in 1960 when the original building was constructed and require periodic maintenance. FM has evaluated five bids received for the project and has selected the lowest bidder, Detroit Elevator Company of Ferndale at a cost of $481,510 to perform and work. The total project cost of $585,910 includes contin gency of $104,400 . Dwyer moved approval of the attached suggested Resolution. Supported by Crawford. Motion carried unanimously on a roll call vote. COMMUNICATIONS A. B. Department of Management and Budget / Purchasing Division – Contract Exception Report for the Month of August 2012 Sheriff’s Office – 2013 Off-Road Vehicle Safety Education Program Grant Application C. D. E. F Circuit Court – 2013 Michigan Mental Health Court Grant Program Grant Application State Tax Commission: Revocation of Real and /or Personal Property Component(s) of Industrial Facilities Exemption Certificate #2007 -508 Issued to Azure Dynamics Corporation in the City of Oak Park, Oakland County State Tax Commission: Revocation of Real and/or Personal Property Component(s) of Industrial Facilities Exemption Certificate #2010 -002 Issued to Azure Dynamics Corporation in the City of Oak Park, Oakland County Notice of Hearings: FINANCE COMMITTEE Page 5 August 16, 2012 1. City of Auburn Hills – August 20, 2012, 7 p.m. – RE: Request for New Industrial Facilities Exemption Certificate for Weber Automotive Corporation located at 1750 Summit Drive, Auburn Hills, MI 48326 2. City of Auburn Hills – August 20, 2012, 7 p.m. – RE: Request for Amendment of the New Industrial Facilities Exemption Certificate, IFEC 2011 -315 for US Farathane located at 2700 High Meadow Circle, Auburn Hills, MI 48326 3. City of Auburn Hills – August 20, 2012, 7 p.m. – RE: Request for New Industrial Facilities Exemption Certificate for LXR Biotetch, LLC located at 4225 N. Atlantic Blvd., Auburn Hills, MI 48326 4. City of Auburn Hills – August 20, 2012, 7 p.m. – RE: Request for a one year extension of the completion date for Industrial Facilities Exemption Certificate 2010 -117 for Magna E-Car Systems located at 4121 N. Atlantic Blvd., Auburn Hills, MI 48 326 Long moved to receive and file the communications. Supported by Quarles. Motion carried on a voice vote. The Committee recessed from 9:38 a.m. – 9:47 a.m. BUDGET HEARINGS Mr. Soave reviewed the amendment sheet. These amendments will be re viewed for incorporation into the County Executive’s Recommended Budget by the Finance Committee at the budget wrap -up on August 30. TREASURER Mr. Meisner stated that the Treasurer is in support of the County Executive’s Recommended Budget. Expenditures and offsetting revenues for civil service, property tax foreclosures and recordings are up slightly and will leave the Treasurer’s Office in the black by about $920,000. Oakland County has seen a modest increase in property tax foreclosures but is in b etter shape than Wayne County. Title searches, civil processes and the cost to perform these functions hav e greatly increased from 2009. The actual number of parcels offered at auction has gone down due to the increased efforts to work with taxpayers and set up flexible payment plans to resolve back taxes and marketing efforts for delinquent tax properties. There are now about 2400 payment plans with about 90% compliance rate, with $9.9 million brought in for the first 8 months of Fiscal Year 2012. The Treasurer reaches to the property owners through phone calls and visitations to resolve the delinquency, protecting the county fiscally and allowing the property owner to take responsibility and resolve the problem. Marketing efforts for the auction include signs on the property and a website which have increased inquiries . The number of parcels to be auctioned off went from 667 in 2009 to 16,090 in 2012. In 2009 August auction sales resulted in 46,000 surplus dollars. In 2011, as a result of marketing efforts, the County was made whole and obtained a surplus of $2.67 million , available for transfer to the General Fund. United Way is funding efforts as well and Community and Home Impro vement and several outside agencies such as Lighthouse and OLHSA are also involved in these efforts. Lansing may be making changes regarding Personal Property Taxes (PPT). The Co unty collects PPT on behalf of local units. The message to businesses is thank you for being a job provider ; the County has a plan to help with tax delinquencies ; the County can assist you through its business program. The Treasurer is anticipating statutory changes in PPT and is prepared to make significant cuts in staff funded by the PPT Fund and reorganize if necessary. The Treasurer works with local treasurers and about 37 of the local units participate in the County’s investment pool allowing them to earn more than they would on their own. The Treasurer is doing more with less and averaging economies of scale from its vendors. FINANCE COMMITTEE Page 6 August 16, 2012 Mr. Meisner and Mr. Van Leuven responded to questions regarding line items. Mr. Van Leuven explained that several line items were zeroed out as a result of the Land Sale Fund being combined into the General Fund. Chairperson Middleton noted that the Macomb Count y Treasurer had recently allowed all its delinquent tax parcels to be bundled and sold to one buyer. Mr. Meisner explained that the law allows the County Treasurer to auction properties individually or to bundle them into one package. The upside to that approach is you remove all delinquent property taxes and fees and the taxing authority is made whole. The down side is you would not be getting any additional dollars to transfer to the general fund and one purchaser can decide not to deal with the less er parcels and let them fall back to delinquency. The Oakland County Treasurer’s Office uses performance measures and considers not just the additional dollars that can result from the auctioning of individual parcels but what happens to those properties – are they back on the tax roll and contributing to neighborhood stabilization. The Treasurer has not gotten any serious offers for bundling and noted commissioners concerns not to utilize bundling. CLERK/REGISTER OF DEEDS Mr. Bullard explained that technology is a common theme in the Clerk’s office and e -filing continues to increase and all judges are now on line. About 50% of all legal pleases are now filed on line. The Clerk’s office has been handling the City of Pontiac’s birth and death records since last November and about 5,000 are now available. Now issuing Veteran’s ID cards veterans they can use instead of having to carry their papers. With assistance from Information Technology and outside vendor, Register of Deeds on-line recordings system was streamlined and should tremendously increase fee recordings. Every e -recorded document will save the County money. Instead of 2.5 cashiers ROD will only need 1.5 cashiers. The displaced employee will be utilized elsewhere in ROD. The Clerk’s Off ice has been reducing employees for a number of years and is actually providing more public services with less staff. SHERIFF Sheriff Bouchard explained that this is the fifth year in a row they have cut their budget to meet their budget task and reduced their budget by $16 million and 160 positions but continue to keep their primary focus on violent crime and are doing well. Sheriff’s staff will continue to try and convince those judges not using alternative programs such as virtual work release to co nsider these programs in efforts to relieve jail overcrowding. The Board recently approved reorganization for establishment of the DNA Lab and one person is currently in training with the State. The Pontiac law enforcement contract is going well. Call response has been reduced from 76 minutes to 9 minutes. Arrests are up 400% and closure on homicides is about 90%. The community is responsive and the contract has saved over $2 million a year for the City. The Substation has been improved, with inmate h elp. Staff was able to recapture federal grant money of about $900,000 not utilized over three years before it reverted to the federal government. Funds were used for specific metric approach to target crime and physical improvements to the substation. Some retired Pontiac officers were brought back as well. If it became necessary to require more services than the contract allows, the County would go to the City and communicate this concern. At this time, the Sheriff is meeting the needs of the City. Sheriff Bouchard, Undersheriff McCabe and Mr. Cunningham responded to line item questions. The Sheriff and Mr. Daddow spoke to studies done by the County regarding consolidation of police, fire and dispatch services for various communities who had part icipated. This would have required formal agreements and many communities decided not to pursue these efforts but instead to ask for millage increases. The anticipated combined savings for those units would have been $4 million. FINANCE COMMITTEE Page 7 August 16, 2012 The Sheriff advised that they were in the process of rolling out emergency police dispatch and they will have the only dispatch in the state that will handle police, fire and emergency. The Sheriff has also been providing small squad tactical training for the last 3 -4 years. Commissioner Zack asked to see those studies involving her communities. Mr. Poisson provided an update on the County Executive’s condition following last Friday’s car accident. He indicated that the Executive has been through 3 surgeries and is expect ed to regain full range of motion from his injuries but it will be several weeks before any interviews will be given. Mr. Poisson asked that everyone pray from Mr. Cram, who had been driving. Mr. Poisson explained that the Executive is statutorily requ ired to provide a list of the line of succession for when the Executive is absent or disabled. Executive duties now fall to Mr. Poisson, Chief Deputy Executive, than Mr. Daddow, Mr.Bertolini, Mr. Rogers and Mr. Gibb. PROSECUTOR Ms. Cooper reported that her office is in agreement with the County Executive’s Recommended Budget. She reported that the Michigan Department of Human Services contract has brought in over $0.5 million in four years. The Prosecuting Attorney (PA) provides teaching and training f or the County’s police academy and any other agency that requests and this also brings in funds. The Economic Recovery Unit has brought in over $300,000 in forfeiture funds for the PA, $3 million total county -wide for law enforcement, bond forfeitures of $450,000 and a slight increase in OWI forfeitures of $120 ,000. New business practice s this year for transcripts brought back $50,000 to the Clerk’s Office , a portion of which was credited as savings to the PA . The PA is certified by the National Institut e for Trial advocacy and has trained over 69 prosecuting attorneys in house to save $190,000. Two weeks ago 16 opinions came out of the Michigan Court of Appeals with 100% affirmation rate for the PA. The PA office’s overall rate is 99%. Ms. Cooper, Mr. Walton and Ms. Meiers responded to line item questions. Ms. Cooper explained that her office prefers the Lexis computer research system over Westlaw. The PA is the biggest user of Lexis and was able to negotiate a savings of $60,000 with assistance fr om Corporation Counsel. Lexis not only allows for research to write pleas and for appellant purposes but to trace properties under forfeiture which is not provided by Westlaw. BOARD OF COMMISSIONERS/LIBRARY BOARD/PARKS AND RECREATION Mr. Ver Ploeg explained that he is requesting funds to update the Audio/Visual equipment in the Auditorium and Committee Room A and the salary budget has been reduced as a result of the statutory reduction in commissioners from 25 to 21 beginning January, 2013. Library Board Ms. Mancini reported that a study group consisting of Board Chairman Gingell and Commissioners Taub, Woodward, Mr. Daddow, Human Resources staff and the Library Board are reviewing the future direction of the Library in both overall mission and phy sical space. Future savings are anticipated as a result of the Groups final recommendations. The Library for the Visually and Physically Impaired will be transferred to Rochester Hills effective October 1 and will save the County $18,000 annually. Ms. Mancini responded to questions regarding line items. She explained that in 2010 Purchasing worked with the Library to obtain a 3-year research subscription with Westlaw for five computers. The Westlaw research subscriptions are more general for public us age. Westlaw is the larger publisher of most law titles and the Library was able to receive a discount on published materials . If the Library switched to Lexis they would not be able to obtain comparable titles for its minimus law library. And the Library Continuations Line Item would increase. FINANCE COMMITTEE Page 8 August 16, 2012 Commissioner Taub asked to add to the amendment list replacing the Library Board’s Westlaw subscription with the Lexis Nexis contract. Chairperson Middleton asked to add to the amendment list compensation for agenda packets. The Board is moving to eliminate all printing and mailing costs for agenda materials which are available for viewing on line. Oakland County Parks and Recreation Commission Mr. Stencil explained that the Oakland County Parks and Recreati on Commission (PRC) has reduced its operating budget 20% over five years largely due to staff cuts. There currently are 62 staff following reorganization and reallocation of resources and the PRC has largely deferred from spending to investing in existing facilities. Long-range planning efforts, largely 15 -year projects, for major maintenance include roofs, heating/cooling, asphalt road improvements and other capital and equipment needs. Plans for FY 2013 include the Red Oaks County Park, the County Mark et and trail connectivity at five parks. PRC has worked on making its operations profitable and is getting to the breakeven point, but th ere is still a certain level of subsidy on the banquet side. Bids are out to look at services at the golf courses, waterparks, etc. Commissioner Zack asked it could be considered to allow an outside vendor to provide kosher food service at Glen Oaks at a reasonable cost so that the Jewish community could use this facility. OTHER BUSINESS/ADJOURNMENT There being no other business to come before the committe e, the meeting was adjourned at 12:08 p.m. ________________________ _______________________________ Helen A. Hanger Jim Ver Ploeg Senior Committee Coordinator Administrator Director NOTE: The foregoing minutes are subject to Committee approval.