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HomeMy WebLinkAboutMinutes - 2013.03.14 - 36703 March 14, 2013 Chairperson Middleton called the meeting of the Fina nce Committee to ord er 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, Kathy Crawford, Jeff Matis, Helaine Zack, Nancy Quarles COMMITTEE MEMBERS ABSENT WITH NOTICE John Scott OTHERS PRESENT CIRCUIT COURT Lisa Langton, Deputy Court Administrator John Cooperrider, Court Business Manager ECONOMIC DEVEL. & COMMUNITY AFFAIRS Bret Rasegan, Supervisor Whitney Calio, Environmental Prog. Coord. EXECUTIVE OFFICE Robert Daddow, Deputy County Executive Phil Bertolini, Deputy County Executive COMPLIANCE OFFICE Scott Guzzy, Purchasing Admin. HEALTH AND HUMAN SERVICES George Miller, Director HOMELAND SECURITY & PREPAREDNESS Ted Quisenberry, Manager MANAGEMENT & BUDGET Laurie Van Pelt, Director FISCAL SERVICES Tim Soave, Manager Holly Conforti, Chief Gaia Piir, Supervisor Jeff Phelps, Parks and Rec, Fiscal Coordinator Antonio Pisacreta, Analyst Nancy Falardeau, Analyst Kim Elgrably, Analyst INFORMATION TECHNOLOGY Ed Poisson, Director Jamie Hess, Manager, CLEMIS PARKS AND RECREATION Dan Stencil, Executive Officer Melissa Prowse, Business Development Rep. SHERIFF’S OFFICE Mike McCabe, Undersheriff Dale Cunningham, Business Manager Dorothy F. Hall, Lieutenant TREASURER’S OFFICE Andy Meisner, County Treasurer Sue Danhausen, Cash Accounting Supervis or WATER RESOURCES COMMISSIONER Joe Colaianne, Attorney & Insurance Admin. PLANTE & MORAN Les Pulver, Outside Auditor Bill Brickey, Outside Auditor 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 March 14, 2013 OTHERS PRESENT, CONT’D CONTRACTOR SERVICES Steve O’Keefe, Vice President BODMAN, PLC Tom Bruetsch, Attorney CONTINENTAL SERVICES Steve O’Keefe, Vice President Steve LaPorte, Vice President, Operations BOARD OF COMMISSIONERS Jim VerPloeg, Administrative Director Sheryl Mitchell, Analyst Chris Ward, Senior Analyst Pamela Worthington, Committee Coordinator PLEDGE OF ALLEGIANCE Chairperson Middleton led the Committee in the Pledge of Allegiance. APPROVAL OF THE PREVIOUS MINUTES Matis moved approval of the previous minutes o f February 28, 2012, as printed. Supported by Woodward. Motion carried on a voice vote. AGENDA Chairperson Middleton added “Treasurer’s Office – Discussion on Contract Exception Report”, which was postponed from the February 28, 2013 meeting as Communications Item AA. There were no objections. PUBLIC COMMENT Jim VerPloeg distributed a list of available appointment dates for the 2013 Employee Health Screenings, highlighting the dates and times set aside for the Board of Commissioners. He stated that they will accept walk-ins as well. He said th at some of the dates coordinate with some of the committee meetings. He mentioned that there is a $100 incentive for having these screenings, and he said that screenings at personal doctors’ visits will be counted as well. There is a form for the docto r to fill out and fax to the Human Resources Department for the employee to obtain the $100 incentive credit. FY 2013 CONTINGENCY REPORT The beginning Fiscal Year (FY) 2013 Contingency Fund balance of $245,971 will be decreased by $89,695 by items 3, 4 and 17 of today’s agenda to $156,276. Taub moved to receive and file the FY 2013 Contingency Report dated February 21, 2013. Supported by Long. Motion carried on a voice vote. COMMUNICATIONS AA.Treasurer’s Office – Discussion on Contract Exception Report (Postponed from February 28, 2013 meeting At the February 28, 2013 Finance Committee meeting, Commissioner Taub requested that pages 5 – 10 of the Contract Exception Report, which includes a memo by Pamela Weipert, Compliance Officer FINANCE COMMITTEE Page 3 March 14, 2013 with Exception Reports from the Treasurers’ Office attached , be postponed until today so that a representative from Plante Moran could be pres ent to answer questions. The Exception Reports in question include the following: 1. Scripps for Public Advertising in the amount of $50,000 for August and October Land Auctions on TV for 2010, 2011 & 2012. 2. Econ Marketing in the amount of $1,617,542.79 for Delinquent Tax Notice Printing and Mailing for a period of 10 years. 3. Rancilio in the amount of $18,178.00 for Process Server for a period of 10 years. 4. Econ Marketing in the amount of $171,450.17 for Land Auction Mailings for the period of 10 years. Mr. Meisner indicated that the Exception Report for Scripps on Page 7 should be corrected to show the Purchase Amount at $60,000, as opposed to $50,000, as he stated that it costs $10,000/yr. for each instance, and they advertise land auctions twice a year . Mr. Meisner stated that in regards to the issues with the direct vouchers, once concerns were raised by Fiscal Services, the Treasurer’s Office took steps to resolve them by reducing the amount of staff authorized to use direct voucher s, and they worked with the Purchasing Department to get Requests for Proposals (RFPs) out to receive bids for processing service and the printing/mai ling service vendors. Mr. Daddow gave a brief overview of how concerns were raised with respect to internal controls within the County’s Purchasing Department . He stated that through discussions with the Clerk’s Office and questions about some of their transactions, an external audit was performed by Plante Moran, and it was discovered that the Treasurer’s Office had similar transactions , and that there needed to be measures put in place to prevent any potential issues of concealment in the future, which could have occurred in this instance. There was a meeting in December between Fiscal Services and Chief Deputy Treasurer VanLeuven , and a course of action was put in place. He stated that the underlying contracts were put out for RFPs, and he said that some have been received today, and more will come back in the next couple of days. He stated that the Department of Management and Budget has taken steps to provide oversight for all direct vouchers in the future, and the necessary steps have been put in place to respond to a problem that existed. He suggested that if anybody has any further questions or concerns that they address them directly to Mr. Meisner in writing or they can set up a meeting with Mr. Meisner. A. Department of Management and Budget/Pu rchasing Division – Contract Exception Report for the Month of March 2013 B. Economic Development & Community Affairs Department, Community & Home Improvement Division – Fiscal Year (FY) 2013 Comprehensive Housing Counseling Grant Program Application (CFDA Number 14.169 Housing Counseling Assistance Program C. Prosecuting Attorney – FY 2014 Victim of Crime Act Victim Assistance Grant Program (VOCA) – Grant Application D. Notice of Hearing: City of Southfield – March 18, 2013 7 p.m. – RE: Request for the Establishment of an Industrial Development District and Application for Industrial Facilities Exemption Certificate for Tax Abatement for New Real Property and Personal Property for Property Located at 21005 Lahser Road, Southfield, MI E. Sheriff’s Office – Discussion on ARAMARK Contract Commissioner Woodward had requested to have discussion and to get some clarification at today’s Finance Committee meeting about the recently-signed Aramark contract. He requested that staff from the Sheriff’s Department and Purchasing Department be available to answer questions about the award of the bid and the negotiations with regards to the contract with Aramark, which was e-mailed to the Finance FINANCE COMMITTEE Page 4 March 14, 2013 Committee members. His focus of concern was the fresh favorites and eye care items, which are commissionable sales items, and the difference between the Request for Proposals (RFP) and the contract. Scott Guzzy, Purchasing Administrator, explained that after review of all the RFPs that were received , an evaluation committee evaluated them, and Aramark was rated as #1 from all the bids received . Then he explained that once they pick a #1 vendor, they go into negotiations. They were looking at the best way to save the Sheriff’s Office money. Mr. Cunningham explained that when the pre vious contract with Aramark was established five years ago, fresh favorites, which are things such as pizza or burgers, and eye care didn’t exist. During the course of the last contract those items were offered to inmate s, and the Sheriff’s Office accepte d the money through their Commissary Fund. Mr. Cunningham explained that Aramark did not include the fresh favorites and the eye care items on commissioned sales in the contract. Mr. Cunningham was not concerned about that because his focus was on saving the County the most money, and therefore, he chose to take the lower- price per meal rather than to gather an unknown factor for commissi oned sales because it was based on the inmate population, which would vary the price of the meal from time to time. Ms. VanPelt indicated that the items that are in the contract as commissioned price items are increasing 12% ($577,000/yr.) to the County, and the price per meal has gone down from 92.5 cents/meal to 72.5 cents/meal. Mr. Cunningham stated that the menu didn’t change from the previous contract with Aramark. He stated that the only thing that did change was switching the cold meal from noon until the evening meal . Undersheriff McCabe stated that the Sheriff’s Office undergoes a yearly inspection by the M ichigan Department of Corrections, and they are in 100% compliance and meet all caloric intake requirements and nutritional requirements. Chairperson Middleton stated that in light of the testimonies that took place today, in the future, if commissioners have questions about a particular item that the commissioner is presenting, they will need to submit them to the departments prior to the meeting or they will not be on the agenda. Crawford moved to receive and file the Communications. Supported by Matis. Motion to receive and file the Communications carried on a voice vote. CONSENT AGENDA 1a. MR #13060 – BOARD OF COMMISSIONERS – TRI-PARTY ROAD IMPROVEMENT PROGRAM FISCAL YEAR 2013 APPROPRIATION – CHARTER TOWNSHIP OF LYON – PRELIMINARY ENGINEERING GRISWOLD ROAD PAVING FROM 8 MILE ROAD TO 9 MILE ROAD – PROJECT NO. 51682 The resolution, which was introduced by Phil Weipert, authorizes the release of $46,070 (Oakland County’s 1/3 share) in Tri-Party Road Improvement Program funds from the Oakland Co unty Designated Fund Balance for a project that was submitted by the Charter Township of Lyon. The project consists of the paving of a Griswold Road, a gravel road, from Eight Mile Road to Nine Mile Road. A copy of the Cost Participation Agreement is inc luded, and a budget amendment of $46,070 is recommended. Any additional project costs less than 15% of the original agreement will be honored under this agreement. Project costs exceeding 15% will require an additional resolution and approval. Matis moved approval of the attached suggested Fiscal Note. Supported by Crawford. Motion carried unanimously on a roll call vote with Scott absent. FINANCE COMMITTEE Page 5 March 14, 2013 1b. MR #13061 – BOARD OF COMMISSIONERS – TRI-PARTY ROAD IMPROVEMENT PROGRAM FISCAL YEAR 2013 APPROPRIAT ION – CITY OF ROCHESTER HILLS – JOINT REPAIR AND CRACK SEALING ON LIVERNOIS ROAD FROM AVON ROAD TO WALTON BLVD. – PROJECT NO. 51631 The resolution, which was introduced by Jeff Matis, authorizes the release of $105,029 (Oakland County’s 1/3 share) in Tri-Party Road Improvement Program funds from the Oakland County Designated Fund Balance for a project that was submitted by the City of Rochester Hills. The proj ect consists of joint repair and crack sealing on Livernois Road from Avon Road to Walton Bouleva rd. A copy of the Cost Participation Agreement is included, and a budget amendment of $105,029 is recommended. Any additional project costs less than 15% of the original agreement will be honored under this agreement. Project costs exceeding 15% will re quire an additional resolution and approval. Matis moved approval of the attached suggested Fiscal Note. Supported by Crawford. Motion carried unanimously on a roll call vote with Scott absent. REGULAR AGENDA 2. MR #13050 – SHERIFF’S OFFICE – NARCOTICS ENFORCEMENT TEAM (NET) INTERLOCAL AGREEMENT WITH THE CITY OF BIRMINGHAM The Sheriff’s Office is seeking approval of an interlocal agreement between the County of Oak land and the City of Birmingham for the purpose of creating the Oakland County Narcotic Enforcement Team under the direction of the Oakland County Sheriff’s Department. In addition, an Oakland County Narcotic Enforcement Team Advisory Board will be implemented for recommendations and direction towards the operation of the Oakland County Narcotic Enforcement Team. The goals of the enforcement team are to investigate drug trafficking within Oakland County and to detect and apprehend individuals who violate narcotic and drug laws within Oakland County . In addition enforcement training will al so be provided for participating officers. There is no financial impact, and no budget amendments are required in relation to the adoption of this agreement. Taub moved approval of the attached suggested Fiscal Note. Supported by Zack. Motion carried unanimously on a roll call vote with Scott absent. 3. MR #13051 - SHERIFF’S OFFICE – CONTRACT AMENDMENT #1 FOR LAW ENFORCEMENT SERVICES IN THE CITY OF PONTIAC – 2013 - 2015 The Sheriff’s Office is seeking approval of a contract amendment for law enforcemen t services in the City of Pontiac. This amendment adds one Patrol Investigator to the Notre Dame Preparatory School from August 1, 2013, to December 31, 2015 , and 3,000 hours of part-time, non-eligible Court Deputy II service for security at the Notre Dame Preparatory School for the period of March 1, 2013 , to December 31, 2015. The amendment includes one Deputy II position in the Contract Patrol Pontiac Division of the Sheriff’s Office for the period of August 1, 2013 to December 31, 2015 , which includes one unmarked vehicle with mobile and prep radio. The amendment also includes three 1,000 -hour, part-time, non-eligible, Court Deputy II positions for the Contract Patrol Pontiac Division of the Sheriff’s Office for the period of March 1, 2013, to December 31, 2015. This amendment requires a total capital cost transfer from the General Fund/General Purpose Contingency of $23,000. FINANCE COMMITTEE Page 6 March 14, 2013 Taub moved approval of the attached suggested Fiscal Note. Supported by Quarles. Motion carried unanimously on a roll call vote with Scott absent. 4. SHERIFF’S OFFICE – CONTRACT AMENDMENT #1 FOR LAW ENFORCEMENT SERVICES IN THE CHARTER TOWNSHIP OF INDEPENDENCE 2013 - 2015 The Sheriff’s Office is seeking approval of a contract amendment for law enforcement services in the Charter Township of Independence to add two Deputy II positions for the period of April 6, 2013, through December 31, 2015, and one marked vehicle with mobile data computer, c amera, mobile and prep radio . This amendment requires a total capital cost transfer from the General Fund/General Purpose Contingency of $36,695. Taub moved approval of the attached suggested Fiscal Note. Supported by Long. Motion carried unanimously on a roll call vote with Scott absent. 5. MR #13052 - SHERIFF’S OFFICE – CONTRACT FOR FIRE DISPATCH SERVICES FOR THE CITY OF ROCHESTER HILLS FOR 2013 – 2015 The City of Rochester Hills has requested fire dispatch services by the Oakland County Sheriff’s Office for the City of Rochester Hills Fire Department. The contract period is fo r two years. The contract rates for the period of April 1, 2013 through March 31, 2014, will be $115,184, and for the period of April 1, 2014, through December 31, 2015 (a partial ye ar) the rate will be $39,164. The current adopted provided for the continuation of dispatch contract services for Rochester Hills; therefore, n o budget amendment is required at this time. Matis moved approval of the attached suggested Fiscal Note. Supported by Long. Motion carried unanimously on a roll call vote with Woodward and Scott absent. 6. MR #13053 - SHERIFF’S OFFICE – CONTRACT FOR FIRE DISPATCH SERVICES FOR THE CHARTER TOWNSHIP OF OAKLAND FOR 2013 – 2015 The Charter Township of Oakland has requested fire dispatch services by the Oakland County Sheriff’s Office for the Charter Township of Oakland Fire Department. The contract period is for two years. The contract rates are established for the period of April 1 through March 31 , and the annual rate is $12,702 for the 2013 calendar year; $17,190 for 2014 and $4,31 9 for partial calendar year 2015. The current adopted budget provided for the continuation of dispatch contract services for Oakland Township; therefore, no budget amendment is required at this time. Matis moved approval of the attached suggested Fiscal Note. Supported by Long. Motion carried unanimously on a roll call vote with Woodward and Scott absent. 7. MR #13045 - WATER RESOURCES COMMISSIONER – RESOLUTION APPROVING CONTRACT FOR THE OPERATION AND MAINTENANCE OF THE HURON VALLEY SCHOOLS PUMP STATION AND FORCEMAIN The Huron Valley School District is requesting assistance from the Oakland County Water Resources Commissioner to provide the operation and maintenance of the pump station and forcemain located at 1570 Bogie Lake Road, White Lake Township, which provides service to the Huron Valley Schools. Operation and maintenance costs are estimated to be $330.00 per month, and under the terms and FINANCE COMMITTEE Page 7 March 14, 2013 conditions of the contract, Huron Valley Schools agrees to reimburse the County all costs associated with the operation and maintenance of the pump station and forcemain. In addition, Huron Valley Schools will provide the County with a deposit of $5,000 as a reserve fund. A budget amendment is recommended to establish the System Enterprise Fund by transferring $5,000 from the Huron Valley Schools WWTP F und 57309 and recognizing $1,980 for service rate charges of $330.00 per month. Long moved approval of the attached suggested Fiscal Note. Supported by Crawford. Motion carried unanimously on a roll call vot e with Woodward and Scott absent. 8. MR #13054 - CIRCUIT COURT/CIVIL/CRIMINAL DIVISION – INTERGOVERNMENTAL AGREEMENT FOR MENTAL HEALTH SERVICES BETWEEN THE SIXTH JUDICIAL CIRCUIT COURT (ADULT TREATMENT COURT) AND OAKLAND COUNTY COMMUNITY MENTAL HEALTH AUTHOR ITY The Circuit Court is seeking approval of an intergovernmental agreement between the County of Oakland and the Oakland County Community Mental Health Authority for mental health evaluations and other mental health services such as mental health assessm ents, crisis intervention and treatment to individuals involved in the criminal justice system in the Sixth Circuit Court who have or appear to have a mental illness,. The services would be provided through a Court Liaison, and the cost is $54,000, which would be provided under the Michigan Mental Health Court Grant Program administered by the State Court Administrative Office (SCAO). No budget amendment is recommended. Zack moved approval of the attached suggested Fiscal Note. Supported by Matis. Motion carried unanimously on a roll call vote with Woodward and Scott absent. 9. HEALTH AND HUMAN SERVICES – HOMELAND SECURITY DIVISION – 2012 – 2013 HAZARDOUS MATERIALS EMERGENCY PREPAREDNESS PLANNING PROGRAM (HMEP -PP) GRANT ACCEPTANCE The Homeland Security Division is seeking acceptance of a Hazardous Materials Emergency Preparedness Planning Program grant in the amount of $9,940 from the Michigan Department of State Police, Emergency Management and Homeland Security Division to be utilized by Oakland Count y’s Local Emergency Planning Committee (LEPC), which performs emergency preparedness planning functions. The grant period is from October 1, 2012, through September 30, 2013. The grant requires a 20% in-kind match of $2,485 in General Fund expenditures, w hich brings the total program costs to $12,425. The Fiscal Year 2013 Homeland Security General Fund budget includes costs associates with this program; therefore, no budget amendment is recommended. Crawford moved approval of the attached suggested Fiscal Note. Supported by Zack. Motion carried unanimously on a roll call v ote with Scott absent. 10. MR #13055 - DEPARTMENT OF PUBLIC SERVICES/MEDICAL EXAMINER – INCREASE TO THE MEDICAL EXAMINER DIVISION CREMATION PERMIT FEE The Medical Examiner’s Office is requesting approval to increase cremation service fees from $20.00 to $30.00, which have not been reviewed since 2003. Ms. VanPelt gave some background information on this request. She stated that positions were previously downgraded to part -time clerical positions from full-time through previous year budget tasks , and they have had issues with turnover as the individual who previously wanted to work part -time has left. In the near future, the Medical Examiner’s Office will submit a request to bring one position back to full-time; however, for now they need funds to support that. It was discovered that Oakland County’s cremation fees were lower than other counties . The request is for an FINANCE COMMITTEE Page 8 March 14, 2013 increase in fees from $20.00 to $30.00 for FY 2013 , and then effective October 1, 2013, FY 2014, the fee will go up to $40.00. Commissioner Matis pointed out that even with this increase Oakland County’s cremation fees will still be lower than Macomb and Wayne Counties, as their fees are $75.00. It is estimated that there will be $46,000 per year in additional revenue from the cremation fee increase . Zack moved approval of the attached suggested Fiscal Note. Supported by Quarles . Motion carried unanimously on a roll call vote with Scott absent. 11. MR #13049 - DEPARTMENT OF ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS – WASTE RESOURCE MANAGEMENT – APPROVAL OF 2013 NO HAZ INTERLOCAL AGREEMENT Waste Resource Management is seeking approval of a No Haz Interlocal Agreement with all municipalities that have signed the interlocal agreement and passed a resolution in support. At this time, the following municipalities have approved interlocal agreements: Addison Township, Groveland Township, the City of Lake Angelus, Oakland Township, Oxford Township, Orion Township, City of Rochester, City of Rochester Hills and Waterford Township. Under this agreement, the communities agree to provide regular, reliable and easily-accessible household hazardous waste collection services to their residents. This program helps to avoid toxic materials from entering Oakland County’s waterways, water tables and landfill resources. In addition, it allows homeowners to remove and avoid potentially hazardous situations in their homes. The program serves to increase public awareness of return, di sposal and source reduction options, and it helps to divert significant quantities of household hazardous materials from landfills. The interlocal agreement requires participating municipalities to fully reimburse the County for all costs it incurs in connection with the NO HAZ program. Mr. Rasegan stated that from 2011 to 2012 participation went up by 1,000 vehicles, and they survey the participants, and of those that responded, there were 42% were new participants, and during the 11 years of this progra m they have collected 3 million pounds of hazardous waste that has not gone into the landfills. Long moved approval of the attached suggested Fiscal Note. Supported by Quarles. Motion carried unanimously on a roll call vote with Scott absent. 12. MR #13046 - PARKS AND RECREATION COMMISSION – WATERFORD OAKS LEASE – OAKLAND PARKS FOUNDATION Mr. Stencil indicated that they are in the process of re -establishing the Oakland Parks Foundation, which is a 501c3 non-profit organization, and its purpose is to support parks and recreation in Oakland County and the strategic efforts of the Parks and Recreation Commission. The Parks and Recreation Commission is seeking approval of a lease agreement between the County of Oakland and the Oakland Parks Foundation for residential property located on the grounds of Waterford Oaks County Park at 1580 Scott Lake Road. The initial term of the lease is from April 1, 2013 through April 1, 2014, with an automatic renewal for four additional one-year terms, ending April 1, 2018, unless either Party provides written notice of cancellation in accordance with the Building Lease Agreement. Under the terms of the lease the Oakland Parks Foundation will pay rent of $500.00 per month as well as all utility costs. Ms. Mitchell as ked Mr. Stencil if this property was previously rented to an individual, and Mr. Stencil answered affirmatively; however, that lease was terminated almost a year ago. Commissioner Taub suggested that a member from the Parks and Recreation Commission serve on the Oakland Parks Foundation and that quarterly reports be submitted to the Parks and Recreation Commission for oversight. Long moved approval of the attached suggested Fiscal Note. Supported by Matis. FINANCE COMMITTEE Page 9 March 14, 2013 Motion carried unanimously on a roll call v ote with Scott absent. 13. MR #13047 – PARKS AND RECREATION COMMISSION – REQUEST FOR NON -EXCLUSIVE UNDERGROUND EASEMENT FOR ELECTRICAL UTILITY SERVICE TO THE DETROIT EDISON COMPANY – SPRINGFIELD COUNTY PARK The Parks and Recreation Commission is seeking a pproval of the granting of an easement to the Detroit Edison Company for the sum of $1.00 to install a new underground transformer for upgraded electrical utility service and related appurtenances at the Springfield Oaks County Park. Mr. Stencil indicated that this work has already been done, and it was part of an electrical improvement for the camping and the grounds at the Springfield Oaks County Park to support programs such as the County Fair. Long moved approval of the attached suggested Fiscal Note. Supported by Quarles. Motion carried unanimously on a roll call vote with Scott absent. 14. MR #13048 – DEPARTMENT OF FACILITIES MANAGEMENT/DEPARTMENT OF CORPORATION COUNSEL – APPROVAL OF PURCHASE AGREEMENT TO SELL THE WEST OAKLAND OFFICE BUILDING IN WALLED LAKE, MICHIGAN Facilities Management is seeking approval of a purchase agreement between the County of Oakland and Seth Norman and Paul Norman on behalf of IMS Laboratories, a Michigan limited liability company, for the property at 1010 East West Maple, Walled Lake, MI. The purchase price is $645,000 with an earnest money deposit of $50,000. The County is required to pay a 5% broker’s commission at closing. They will occupy most of the building and lease the remainder allowing for future expansion. Mr. Holdsworth submitted some suggested amendments based on continuing negotiations with the purchaser. Woodward moved approval of the attached suggested Fiscal Note. Supported by Taub. Crawford moved to report to amend the resolution by adding the f ollowing BE IT FURTHER RESOLVED paragraph and to amend the Purchase Agreement, Sections 6.1 and 6.2, as follows: BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners directs the Director of Facilities Management to execute the closing do cuments required to complete the purchase of the property. 6.1. Purchaser and its agents shall have a period of ninety forty-five (9045) business days, commencing on the Effective Day, to inspect or cause to be inspected all aspects of the physical and economic condition of the Premises (“Inspection Period”). Only for further inspection of the physical condition of the Premises, the Buyer may extend the Inspection Period for an additional ninety (90) days by providing written notification to the Selle r. 6.2. If Purchaser is not satisfied, in its sole and exclusive discretion, with the results of the inspections for any reason whatsoever physical and economic inspections of the Premises , Purchaser may rescind this Agreement by mailing written noti ce to Seller not more than two (2) business days after the expiration of the Inspection Period and receive a refund of the Deposit, including any accrued interest, as follows: (1) if the rescission is within the first ninetysixtythirty (3690) days of the Inspection Period all of the Deposit shall be returned to Purchaser or (2) if more FINANCE COMMITTEE Page 10 March 14, 2013 than 90sixtythirty (3690) days of the Inspection Period has lapsed and Purchaser rescinds the Agreement, only seventy-five fifty percent (5075%) of the Deposit shall be retu rned to Purchaser. Supported by Long. Motion to amend carried unanimously on a roll call vote with Scott absent. Motion on the Fiscal Note carried unanimously on a roll call vote with Scott absent. 15. DEPARTMENT OF INFORMATION TECHNOLOGY – INTERLOCAL AGREEMENT BETWEEN OAKLAND COUNTY AND CITY OF TAYLOR FIRE DEPARTMENT FOR THE FIRE RECORDS MANAGEMENT SYSTEM The Department of Information Technology is seeking approval of an interlocal agreement between the County of Oakland and the City of Taylor to all ow the City of Taylor Fire Department to participate in the Fire Records Manageme nt System beginning May 1, 2013. Mr. Hess explained that there are currently 31 fire departments that participate in the Fire Records System, 29 in Oakland County and 2 outsi de Oakland County. This will be the 3rd non-Oakland County agency that will be participating. Non-Oakland County agencies are required to pay all costs associated with this program, which includes licensing, maintenance and any computers and printers, connectivity costs as well as a n annual participation fee. Taub moved approval of the attached suggested resolution. Supported by Zack. Motion carried unanimously on a roll call vote with Scott absent. 16. DEPARTMENT OF INFORMATION TECHNOLOGY – APPROVAL OF COLLABORATIVE ASSET MANAGEMENT SYSTEM CVT INTERLOCAL AGREEMENT WITH THE TOWNSHIP OF INDEPENDENCE Ms. Shepherd gave some background information on the Collaborative Asset Management System (CAMS) project, which has been around for several years. The CAMS program was funded in 2007 by the Board of Commissioners , and it is a tool that participants can use to standardize countywide infrastructure maintenance of water, sewer, storm and roads . Participating agencies include the Oakland County Water Resources Commissioners’ Office, Oakland County Parks and Recreation, Road Commission for Oakland County, Facilities Maintenance & Operations , and the Cities of Auburn Hills, Farmington Hills and Oak Park. At this time, the Department of Information Technolog y is requesting approval of a CAMS CVT Interlocal agreement with the Township of Independence. This agreement will allow Independence Township access to Oakland County’s CAMS application modules which provide information related to public assets, such as water, sanitary sewer, and/or storm sewer infrastructure that is managed by various governmental entities within the County of Oakland. Training and other related services are also accessible by the CAMS system through the Information Technology Departmen t. The term of the agreement is four years, and the parties may agree to extend this agreement for successive three -year periods by signed amendment. There is no charge to Independence Township for this service; however, effective October 1, 2013, Independence Township will be responsible for the annual software support and maintenance fee which covers a portion of the actual costs of the system. Taub moved approval of the attached suggested resolution. Supported by Crawford. Motion carried unanimously on a roll call vote with Scott absent. 17. DEPARTMENT OF MANAGEMENT AND BUDGET – FISCAL YEAR 2013 FIRST QUARTER FINANCIAL FORECAST AND BUDGET AMENDMENTS FINANCE COMMITTEE Page 11 March 14, 2013 The Transmittal Letter of March 14, 2013, from Management and Budget forecasts that the County will complete FY 2013 with an overall favorable variance of $12,410,788 in General Fund/General Purpose (GF/GP) operations, compared to the amended budget. This overall favorability is split between receiving $597,172 less revenue than anticipated and a projec ted favorability in expenditures of $13,007,960. Detailed schedules are included with the resolution. On Page 25 of the report, for FY 2013, it shows that there is a Planned Use of Fund Balance of $37,621,540; however, Ms. Sonkiss stated that they will o nly have to use $27,331,877.34 of that amount for FY 2013 to balance the budget . Taub moved approval of the attached suggested resolution. Supported by Crawford. Motion carried unanimously on a roll call vote with Scott absent. 18. DEPARTMENT OF MANAGEMENT & BUDGET – FY 2014 – FY 2016 REVENUE ESTIMATES These are preliminary revenue estimates for FY 2014 – FY 2016. Mr. Soave indicated that they basically line up with the framework document that Mr. Daddow submitted previously and that Property Tax revenue estimates are based on the projections included in the budget adopted on September 20, 2012 . In regards to growth of property values, they reflect no change for FY 2014, a 1% growth in 2015 and a 2% growth for 2016. Mr. Soave explained that these f igures will change, and they will be updated after the property tax board of review process is complete. Mr. Soave mentioned that there is a reduction in investment income due to the downturn of the market, which causes cash flow challenges. T hey are assuming that they will begin receiving revenue sharing from the State of Michigan in the middle of 2015. He said that they are starting to see come -backs in the mortgage and re-evaluation fees. OTHER BUSINESS/ADJOURNMENT There being no other business to come before the committe e, the meeting was adjourned at 11:22 a.m. ________________________ _______________________________ Pamela L. Worthington Jim VerPloeg Committee Coordinator Administrative Director NOTE: The foregoing minutes are subject to Committee approval.