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HomeMy WebLinkAboutMinutes - 2013.01.31 - 36696 January 31, 2013 Chairperson Middleton called the meeting of the Fina nce Committee to o rder at 9:08 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, John Scott, Kathy Crawford, Jeff Matis, Helaine Zack COMMITTEE MEMBERS ABSENT WITH NOTICE Christine Long , Nancy Quarles OTHERS PRESENT CIRCUIT COURT Lisa Langton, Deputy Court Administrator John Cooperrider, Court Business Manager ECONOMIC DEVEL. & COMMUNITY AFFAIRS Irene Spanos, Director EXECUTIVE OFFICE Robert Daddow, Deputy Executive COMPLIANCE OFFICE Pam Weipert, Compliance Officer Scott Guzzy, Purchasing Admin. HUMAN RESOURCES Clare Flaisch, Analyst MANAGEMENT & BUDGET Laurie Van Pelt, Director FISCAL SERVICES Tim Soave, Manager Lynn Sonkiss, Chief Gaia Piir, Supervisor Jeff Phelps, Parks and Rec, Fiscal Coordinator Antonio Pisacreta, Financial Analyst Monica Tinsley, Financial Analyst PARKS AND RECREATION Dan Stencil, Executive Officer Sandy Dorey, Recreation Supervisor PROSECUTING ATTORNEY Terri Meiers, Supervisor PURCHASING Andy Krumwiede, Buyer SHERIFF’S OFFICE Mike McCabe, Undersheriff Dale Cunningham, Business Manager OAKLAND COUNTY CREDIT UNION Darren Cameron, Executive Vice President Jack Smith, Chairman BOARD OF COMMISSIONERS Jim Ver Ploeg, Administrative Director Chris Ward, Senior Analyst Pamela Worthington, Committee Coordinator PLEDGE OF ALLEGIANCE Chairperson Middleton led the Committee in the Pledge of Allegiance. 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 John Scott Kathy Crawford Jeff Matis Helaine Zack Nancy Quarles TOM MIDDLETON Chairperson SHELLEY TAUB Vice Chairperson DAVE WOODWARD Minority Vice Chairperson FINANCE COMMITTEE Page 2 January 31, 2013 APPROVAL OF THE PREVIOUS MINUTES Scott moved approval of the previous minutes o f January 17, 2012 as printed. Supported by Taub. Motion carried on a voice vote. AGENDA Chairperson Middleton added “Facilities Management – Temporary Use of Boy Scouts of America Building by Oakland County Credit Union” to the agenda as Item #12, making the Budget Projections from Mr. Daddow Item #13, and he added a notification of a public hearing from t he City of Auburn Hills as Communications Item D. There were no objections. PUBLIC COMMENT Mr. Soave informed the commissioners that there may be a request for the Finance Committee to schedule a meeting before the Board meeting on February 7 to approve a purchase order for the sale of the West Oakland Office Building. CONSENT AGENDA 1. MR #13015 – BOARD OF COMMISSIONERS – TRI-PARTY ROAD IMPROVEMENT PROGRAM FISCAL YEAR 2013 APPROPRIATION – CITY OF SYLVAN LAKE – INSTALLATION OF SIGNAL WITH ADA IMPROVEME NTS ORCHARD LAKE ROAD AT THE CLINTON RIVER TRAIL CROSSING – PROJECT NO. 49711 The resolution, which was introduced by John Scott, authorizes the release of $34,333 (Oakland County’s 1/3 share) in Tri-Party Road Improvement Program funds from the Oakland C ounty Designated Fund Balance for the signal installation on Orchard Lake Road at the Clinton River Trail Crossing, in the City of Sylvan Lake. Additional project costs that are less than 15% of the original agreement will be paid when invoiced and approp riated in the quarterly forecast resolution. If there are additional project costs exceeding 15% of the original agreement, a separate Finance Committee resolution will be required. 1b. MR #13016 – BOARD OF COMMISSIONERS – TRI-PARTY ROAD IMPROVEMENT PROGRAM FISCAL YEAR 2013 APPROPRIATION – CHARTER TOWNSHIP OF WEST BLOOMFIELD – RESURFACING OF FOURTEEN MILE ROAD FROM HAGGERTY ROAD TO COUNTRY WAY – PROJECT NO. 51621 The resolution, which was introduced by Christine Long, authorizes the release of $158,333 (Oakland County’s 1/3 share) in Tri-Party Road Improvement Program funds from the Oakland County Designated Fund Balance for the resurfacing of 14 Mile Road from Haggerty Road to Country Way in the Charter Township of West Bloomfield. Additional proj ect costs that are less than 15% of the original agreement will be paid when invoiced and appropriated in the quarterly forecast resolution. If there are additional project costs exceeding 15% of the original agreement, a separate Finance Committee resolution will be required. FINANCE COMMITTEE Page 3 January 31, 2013 1c. MR #13019 – BOARD OF COMMISSIONERS - TRI-PARTY ROAD IMPROVEMENT PROGRAM FISCAL YEAR 2013 APPROPRIATION – CITY OF FARMINGTON HILLS – EXTENSION OF RIGHT TURN LANE ON MIDDLEBELT ROAD AT THE HILLEL DAY SCHOOL – PROJECT NO. 51661 The resolution, which was introduced by William Dwyer, authorizes the release of $51,000 (Oakland County’s 1/3 share) in Tri-Party Road Improvement Program funds from the Oakland County Designated Fund Balance for the extension of a right -turn lane on Middlebelt Road at the Hillel Day School in the City of Farmington Hills. Additional project costs that are less than 15% of the original agreement will be paid when invoiced and appropriated in the quarterly forecast resolution. If there are additional project costs exceeding 15% of the original agreement, a separate Finance Committee resolution will be required. Taub moved approval of the Fiscal Notes for Consent Agenda Items 1a -1c. Supported by Matis. Motion carried unanimously on a roll call vote with Long and Quarles absent. FY 2013 CONTINGENCY REPORT The beginning Fiscal Year (FY) 2013 Contingency Fund balance of $245,971 will not be impacted by items on today’s agenda. The items on the Consent Agenda will reduce the RCOC Triparty line item of t he General Fund Equity balance by $243,666 to $2,492,079. Crawford moved to receive and file the FY 2013 Contingency Report dated January 25, 2013. Supported by Matis. Motion carried on a voice vote. 2. TREASURER’S OFFICE – BOARD OF COMMISSIONERS APPROVA L TO WAIVE INTEREST AND FEES FOR CERTAIN QUALIFYING TAXPAYERS THROUGH APRIL 30, 2013 In accordance with Section 211.44(3) of the Michigan Compiled Laws, t he County Treasurer is seeking authorization to waive late penalty charges for the 2012 homestead property tax collections through April 30, 2013, for those taxpayers who qualify at their city or township . Mr. VanLeuven indicated that typically there are about 500-550 taxpayers (seniors, widows, servicemen, disabled) eligible each year. Commissioner Crawford asked Mr. VanLeuven how eligible taxpayers are identified for this waiver. Mr. VanLeuven explained that they must apply for the waiver at their local city or township , and the local units submit the names to the County Treasurer. Individuals must file a claim by February 15th each year. The County Treasurer then submits letters to those eligible informing them that they have until April 30 th to pay their taxes without penalty. Eligible taxpayers must apply every year for this extension. Taub moved approval of the attached suggested resolution. Supported by Zack. Motion carried unanimously on a roll call vote with Long and Quarles absent. 3. CIRCUIT COURT/FAMILY DIVISION – REQUEST FOR APPROVAL OF CONTRACT WITH A FORMER COUNTY EMPLOYEE Susan Tremonti was previously employed by the County from June, 2007 – April, 2009, as the Senior Psychologist for the Circuit Court’s Psychological Clinic ; however, through budget cuts the Circuit Court/Family Division had to close down their clinic. Circuit Court/Family Division is now seeking approval of a professional services contract between the Count y of Oakland and Susan Tremonti to provide court - FINANCE COMMITTEE Page 4 January 31, 2013 ordered psychological evaluation services to the court , such as where a juvenile may need to be evaluated to determine whether he/she is competent to stand trial . The term of the contract is from January 30, 2013, through October 31, 2013, with the ability to extend one year for the next four years , if both parties agree. The cost for this contract is not to e xceed $20,000 the first year or $100,000 for the five -year life of the contract. Scott moved approval of the attached suggested Fiscal Note. Supported by Taub. Motion carried unanimously on a roll call vote with Long and Quarles absent. 4. DEPARTMENT OF PUBLIC SERVICES/COMMUNITY CORRECTIONS DIVISION – FY 2013 COMMUNITY CORRECTIONS COMPREHENSIVE PLAN GRANT ACCEPTANCE The Michigan Department of Corrections (MDOC) has awarded the County of Oakland $2,005,574 in grant funds for the period of October 1, 2012, through September 30, 2013. The amount of $208,771 will be allocated for residential services from the MDOC. The County is financially responsible for the remaining $1,796,803 to support Community Correcti ons by allocating funds and tracking costs in accordance with Schedule A of the resolution. There is no County match required. Two positions in Community Corrections are partially funded by the General Fund/General Purpose Fund. The grant will continue to fund 14 Community Corrections Division positions and 50% of two positions in Community Corrections. The grant also funds five positions in the Sheriff’s Department. This is the 18 th year of grant funding from the MDOC. Zack moved approval of the attached suggested Fiscal Note. Supported by Matis. Motion carried unanimously on a roll call vote with Long and Quarles absent. 5. PARKS AND RECREATION COMMISSION – 2012 BP FUELING COMMUNITIES GRANT ACCEPTANCE The Oakland County Parks and Recreation Commission has been nominated for a $20,000 gr ant through the BP Fueling Communities Program by Barrick Enterprise, a local BP Branded Marketer. The funds are to be used to support the following programs in 2013: the Paralympic Experience Sports Expo ($7,000), the Paralympic Sports Clinic Series ($5 ,000) and four social and networking events for veterans with disabilities ($8,000). There is no County match required. On December 12, 2012, the Parks and Recreation Commission adopted a resolution recommending acceptance of the $20,000 BP Fueling Communities Program grant to fund the Disabled Veterans’ Sport Initiative. This resolution authorizes and approves the 2012 BP Fueling Communities grant award for the Disabled Veterans’ Sports Initiative in the amount of $20,000. The Chairperson or his design ee is directed to execute the grant agreement on behalf of the County of Oakland. Crawford moved approval of the attached suggested Fiscal Note. Supported by Matis. Motion carried unanimously on a roll call vote with Long and Quarles absent. 6. FACILITIES MANAGEMENT/PARKS AND RECREATION COMMISSION – REQUEST FOR NON- EXCLUSIVE UNDERGROUND EASEMENT FOR ELECTRICAL UTILITY SERVICE TO THE DETROIT EDISON COMPANY – CATALPA OAKS COUNTY PARK The Departments of Facilities Management and the Parks and Recreation Co mmission are seeking approval of an easement at Catalpa Oaks County Park for underground electrical utility services and related appurtenances to the Detroit Edison Company for the sum of one dollar. This easement is necessary to run electricity to the co ncession building at Catalpa Oaks County Park, as well as potential future use. FINANCE COMMITTEE Page 5 January 31, 2013 Mr. Stencil informed the commissioners that they have scheduled their Annual Marshmallow Drop at Catalpa Oaks on March 29, 2013, and they are planning on having a dedication g rand opening in August with a date to be determined. Zack moved approval of the attached suggested Fiscal Note. Supported by Taub. Motion carried unanimously on a roll call vote with Long and Quarles absent. 7. FACILITIES MANAGEMENT/VEHICLE OPERATION S AND RADIO SERVICES BUILDING EXPANSIONS Due to the expansion of the County’s fleet, the number of mechanics and the level of parts inventory that has occurred over the years because of the additional road patrol contracts with local communities, Facilities Management is seeking approval to expand the Central Garage (16 East) by 2900 square feet for Vehicle Operations and 2900 square feet for Radio Services, as well as renovating the existing 2800 square feet of the building that is occupied by Radio Servi ces. In addition, fire suppression would be added to the entire building. The total project is estimated at $1,013,689. Frank Rewold and Son, Inc., as Construction Manager, will competitively bid all subcontractor work, and they are required to follow t he County’s E-Verify procedures. Facilities Management is also asking for authorization to obtain all of the necessary approvals from the City of Pontiac for the expansions. Chairperson Middleton had previously inquired about the feasibility of purchasin g a vacant building such as a former dealership that had closed, such as the former Quality Pontiac building located nearby on Elizabeth Lake Road. Mr. Holdsworth had indicated that it would be much more costly to purchase a vacant building off County cam pus, renovate it for County needs, adding enough fuel tank capacity, securing the building, including fencing, etc. and the maintenance of the building. Mr. Daddow mentioned that he actually looked into that particular building. He said that the records f rom Waterford Township show that the facility was built in 1971, and he said that it showed that the facility was valued at $1,255,000, which is over and above the estimated cost of this project. He stated that he took a tour of the facility yesterday, and the parking lot at the back of the building was under water. Taub moved approval of the attached suggested Fiscal Note. Supported by Crawford. Motion carried unanimously on a roll call vote with Long and Quarles absent. 8. DEPARTMENT OF FACILITIES M ANAGEMENT – APPROVAL AND ACCEPTANCE OF MEMORANDUM OF AGREEMENT (MOA) WITH THE U.S. DEPARTMENT OF COMMERCE (USDOC) FOR USE OF SPACE LOCATED IN THE ANNEX I BUILDING The Department of Facilities Management is seeking approval of a Memorandum of Agreement (MO A) between Oakland County and the U.S. Department of Commerce. The purpose of the MOA is to establish a joint project between Oakland County, Michigan and the U.S. Department of Commerce, through its Bureaus of International Trade Administration (U.S. and Foreign Commercial Services, Pontiac U.S. Export Assistance Center) and the U.S. Department of Commerce to promote exports and business growth from Oakland County through the use of approximately 3,707 square feet of office space within the Annex I building. The term of the MOA is from January, 2013 through January, 2014, for the rental rate of $0. In exchange, the County will provide market information and counseling, international trade data, trade promotion programs, workshops and programs/services/ev ents to promote Oakland County’s business programs. The MOA may be terminated with 120 -day written notice. The estimated cost to the County for salaries; utilities (except phone service, which will be reimbursed), office space, parking, security (includi ng snow removal) and custodian services is $137,525. FINANCE COMMITTEE Page 6 January 31, 2013 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. 9. HEALTH AND HUMAN SERVICES – HOMELAND SECURITY DIVISION – 2010, 2011 & 2012 FEMA STATE HOMELAND SECURITY GRANT INTERLOCAL AGREEMENT ACCEPTANCE The State of Michigan has awarded Homeland Security Grant Program funding to Region 2 of the State, which includes the City of Detroit and the Counties of Macomb, Monroe, Oakland, St. Clair, Washtenaw and Wayne. Macomb County was elected and appointed as Fiduciary for the 2010, 2011 & 2012 Homeland Security Grant Programs by the Region 2 Planning Board. Oakland County Health and Human Services Homeland Security Division is requesting approval of three Interlocal Funding Agreements between Oakland County and Macomb County for years 2010, 2011 & 2012 for the purpose of passing through Homeland Security Grant Program funds. Oakland County is entitled to reimbursement for 2010 of allowable expenses not to exceed $848,949.76 in Urban Area Security Initiative (UASI) funding. For 2011, Oakland County is entitled to reimbursement of allowable expenses not to exceed $69,303 in State Homeland Security Program (SHSP) funding and $965,732 in UASI funding. For 2012, Oakland County is entitled to reimbursement of allowable expenses not to exceed $35,281 in SHSP funding and $535,528 in UASI funding. Woodward moved approval of the attached suggested Fiscal Not e. Supported by Matis. Motion carried unanimously on a roll call vote with Long and Quarles absent. 10. INFORMATION TECHNOLOGY – 2013/2014 MASTER PLAN QUARTERLY STATUS EXECUTIVE SUMMARY The Information Technology Master Plan Quarterly Status Executive S ummary gives an overview of the services and hours provided by IT during the 2013/2014 Master Plan period. The Department of Information Technology provides services to 82 County Divisions, more than 100 local governmental units (assessors, treasurers, law enforcement, etc.), over 50 private sector customers and over 1,700 @ccess Oakland Property Gateway customers. There are a total of 203 Enhancement and New Development projects across the seven Leadership Groups. Of these projects, 12 are completed, 10 9 are in Process and 82 are not started. As of December 28, 2012, 16,727 hours of IT labor have been expended on project-based work. Commissioner Taub asked Mr. Bertolini how things are proceeding in regards to filling positions within the Department of Information Technology. Mr. Bertolini indicated that the competition with private sector has made it difficult, but they have been interviewing, and they are in the process of hiring five people. He stated that the Human Resources Department has done a g reat job working with the IT Department in recruiting people, and that he anticipates more success in the next six to eight months. Matis moved to receive and file the IT 2013/2014 Master Plan Quarterly Status Executive Summary. Supported by Crawford. Motion carried on a voice vote. FINANCE COMMITTEE Page 7 January 31, 2013 11. DEPARTMENT OF INFORMATION TECHNOLOGY – FIRST QUARTER 2013 DEVELOPMENT APPROPRIATION TRANSFER The Department of Information Technology is requesting authorization to appropriate $905,262.38 in development charges for the first quarter of 2013 to be transferred from the IT Fund to the General Fund for the General Fund/General Purpose County Departments. Direct charges to Special Rev enue and Proprietary Fund departments are $191,193.37, and non -County agencies are $39,063.00 for the first quarter of 2013. A detailed schedule is attached to the resolution outlining all charges. Taub moved approval of the attached suggested resolution. Supported by Scott. Motion carried unanimously on a roll call vote with Long and Qua rles absent. 12. FACILITIES MANAGEMENT – LEASE FOR BOY SCOUTS OF AMERICA BUILDING BY OAKLAND COUNTY CREDIT UNION The Oakland County Credit Union (OCCU) is planning on making some extensive renovations to their building on Oakland County’s campus in March of this year. While these renovations are being done they need a temporary location from which to conduct business. When they found out that the Boy Scouts of America building was vacant, they approached the County to req uest use of that building and the parking lot temporarily while the renovations to their building are being done. The OCCU will also make some minor renovations to the interior of the building for the purpose of their lobby and office operations, and they will make them in accordance with C ounty standards, at no cost to the County. Facilities Management is now seeking authorization for the execution of a lease between Oakland County and the OCCU to allow the OCCU to have use of the Boy Scouts of America building and parking lot. The lease will commence on the date this resolution is adopted until December 31, 2013. The County will pay all utilities for premises, including electric, gas, water, sewer, trash removal, snow and ice removal, lawn care, grounds maintenance and services and parki ng lot maintenance. The OCCU will then reimburse the County for these services, in lieu of rent. Taub moved approval of the attached Fiscal Note. Supported by Woodward. Motion carried unanimously on a roll call vote with Long and Quarles absent. 13. COUNTY EXECUTIVE – BUDGET PROJECTIONS FOR FY 2013 FY 2016 (INTERIM FRAMEWORK) Mr. Daddow provided a detailed report entitled “Interim Framework – A Long-Range Fiscal Plan for the Future: Summary of Future Operating Issues and Related Resolution – FY 2013 th rough FY 2016”. This report was previously sent by e -mail to the commissioners about a month ago. A summary of the detailed report, entitled “Framework Report” was distributed at today’s Finance Committee meeting. The reports are based on a long-range Fiscal plan of the County. It provides a three -year budget recommendation by the County for FY 2013 – FY 2016. He gave a brief overview of the information provided in this report. The content includes a summary schedule to identify the various is sues and how the conclusions are reached in the report. The summary of findings shows that t he County has a balanced budget from now through 2016. Therefore, County administration has not asked for any additional budget tasks to its operating departments, which means the departments are not required to cut any expenses, but whatever they have committed to in terms of dollars up until now, they must adhere to. FINANCE COMMITTEE Page 8 January 31, 2013 Mr. Daddow stated that there are things that will impact the County’s budget in the future that cannot be quantified at this time due to circumstances that are out of the County’s control. The Fiscal Cliff, for instance, will affect the public sector, the commercial sector and non -profit entities, as well as citizens. The national debt increased $5.4 tril lion in the past four years, which is a 53% increase in four years. Mr. Daddow indicated that the increase on the wealthy generates an estimated $62 billion; however the first two years’ benefit was committed for the Hurricane Sandy relief and the extension and sequestration of unemployment benefits. He estimates that the benefit from the increase on the wealthy won’t be seen until FY 2015. The Framework document predicted a national debt of $17.2 trillion, as of September 30, 2013. A Business Week arti cle predicted $17.5 trillion. Mr. Daddow indicated that the County receives a large amount of money in grants, and if the Federal government decides to cut funding in grants, it could majorly impact the County, and many County grant programs could be affected, such as workforce development, community development block grants, public health or homeland security grants. In regards to Federal healthcare changes, the per -enrollee tax that came into effect on January 1, 2014, will cost the County $488,000, much of which may be absorbed directly by employees (approximately $63/per employee). Additional costs are yet unknown since rules and regulations are still being written for the launch of ObamaCare on January 1, 2014. Mr. Daddow mentioned that there are new rules on part-time employees with penalties for failure to comply with healthcare. For instance, the penalty for failure to comply with a single employee that averages more than 30 hours could be as much as $6 million to the County. If somebody files a claim with the Exchange Commission requesting that they want health care under the exchange, and they average 30 hours, the penalty is $2,000 per full-time equivalent (employee working 30 hours or more) to the County. Mr. Daddow said that the County does not have a lot of employees that fall into that category. He indicated that Information Technology is in the process of making software changes that will flag the Human Resources Department of employees that may fall into that category. He indicated t hat if the public and private sector employers are not aware of these provisions, it could be tremendously expensive for them. The County has already seen 78 new enrollees for health insurance under ObamaCare whereby “children” up to age 26 are covered under their parents’ health care. Mr. Daddow stated that even though ObamaCare will be launching on January 1, 2014, the government is still writing regulations. Mr. Daddow indicated that the County needs at least six months to prepare for changes. Taub moved to receive and file the Budget Projections for FY 2013 – FY 2016 (Interim Framework) and the Framework Report Summary. Supported by Scott. Motion carried on a voice vote. COMMUNICATIONS A. Department of Management and Budget/Purchasing Division – Contract Exception Report for the Month of January 2013 B. Rochester Hills Public Library – Oakland Talking Book Service C. State Tax Commission – Revocation of Real and/or Personal Property Component(s) of Industrial Facilities Exemption Certificate #2007 -683 Issued to Netlink Software Group America, Inc. Located in the City of Madison Heights, Oakland County D. Notification of a Public Hearing from the City of Auburn Hills Matis moved to receive and file the communications. Supported by Taub. FINANCE COMMITTEE Page 9 January 31, 2013 Motion carried on a voice vote. OTHER BUSINESS/ADJOURNMENT There being no other business to come before the committe e, the meeting was adjourned at 10:39 a.m. ________________________ _______________________________ Pamela Worthington Jim VerPloeg Committee Coordinator Administrative Director NOTE: The foregoing minutes are subject to Committee approval.