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HomeMy WebLinkAboutMinutes - 2014.06.05 - 36818OAKLAND COUNTY BOARD OF COMMISSIONERS 1200 N. TELEGRAPH ROAD, PONTIAC, MI 48341-0475 Telephone (248) 858 -0100 FAX (248) 858 -1572 FINANCE COMMITTEE June 5, 2014 Chairperson Middleton called the meeting of the Fina nce Committee to order at 9:00 a.m. in Committee Room A of the Commissioners' Auditorium, County Service Center in Pontiac, Michigan. COMMITTEE MEMBERS PRESENT Tom Middleton, Shelley Taub, David Woodward, Christine Long, John Scott, Kathy Crawford, Jeff Matis, Helaine Zack, Nancy Quarles COMMITTEE MEMBERS ABSENT WITH NOTICE None. OTHERS PRESENT ANIMAL CONTROL Bob Gatt, Manager Joanie Toole, Chief CENTRAL SERVICES Todd Birkle, Manager, Support Services CIRCUIT COURT John Cooperrider, Court Business Administrator COUNTY EXECUTIVE COMPLIANCE OFFICE Scott Guzzy, Purchasing Administrator Pam Weipert, Compliance Officer CHILDREN’S VILLAGE Jody Overall, Manager HUMAN RESOURCES Nancy Scarlet, Director Lori Taylor, Manager Sara Kohn, Analyst MANAGEMENT & BUDGET Laurie Van Pelt, Director, Management & Budget FISCAL SERVICES Lynn Sonkiss, Manager Gaia Piir, Chief Holly Conforti, Chief Ebru Adoglu-Jones, Supervisor II Monica Tinsley, Financial Analyst Jeff Phelps, Parks & Rec. Fiscal Coordinator SHERIFF’S OFFICE Robert Smith, Major Chris Wundrach, Captain Steve Schneider, Lieutenant Larry Perry, Lieutenant TOM MIDDLETON Chairperson SHELLEY TAUB Vice Chairperson DAVE WOODWARD Minority Vice Chairperson Christine Long John Scott Kathy Crawford Jeff Matis Helaine Zack Nancy Quarles FINANCE COMMITTEE Page 2 June 5, 2014 OTHERS PRESENT, CONT’D SHERIFF’S OFFICE Lori Sea man, Contract Coordinator Tammy Feole, Technical Assistant TREASURER’S OFFICE Ross Gavin, Deputy Treasurer WATER RESOURCES COMMISSIONER Steven Korth, Manager Glenn Appel, Chief Engineer Jim Wineka, Asst. Chief Engineer BOARD OF COMMISSIONERS Jim VerPloeg, Administrative Director Chris Ward, Senior Analyst Pamela Worthington, Committee Coordinator PLEDGE OF ALLEGIANCE Chairperson Middleton led the Pledge of Allegiance. APPROVAL OF THE PREVIOUS MINUTES Scott moved approval of the previous minutes o f May 8, 2014, as printed. Supported by Zack. Motion carried on a voice vote. PRESENTATION OF THE AGENDA No changes to the agenda. PUBLIC COMMENT None. FY 2014/ FY 2015/FY 2016 CONTINGENCY REPORT The FY 2014 – FY 2016 General Contingency will be reduced by $48,095 to $110,720 with the adoption of Item #5 on today’s agenda. The FY 20 14 – FY 2016 Classification and Rate Change balance of $52,512 will be reduced by $5,397 with the adoption of Item #7 on today’s ag enda. The Use of General Fund Equity During FY 2014 balance will be reduced by $145,054 with the adoption of Item s #1 (Tri-Party Resolution), Item #12 and Item #15 for Quality of Life Initiatives. Taub moved to receive and file the FY 201 4 – FY 2016 Contingency Report dated May 30, 2014. Supported by Long. Motion carried on a voice vote. COMMUNICATIONS A. County Executive Compliance Office/Purchasing – Contract Exception Report for the June 5 , 2014 Finance Committee Meeting B. Notice of Hearing: City of Auburn Hills – June 2, 2014 at 7:00 p.m. – RE: Industrial Development District for Trace Zone Inc. located at 2740 A uburn Ct., Auburn Hills MI Long moved to receive and file the Communications. Supported by Zack. FINANCE COMMITTEE Page 3 June 5, 2014 Motion carried on a voice vote. CONSENT AGENDA 1. MR #14126 – BOARD OF COMMISSIONERS – TRI-PARTY ROAD IMPROVEMENT PROGRAM FISCAL YEAR 2014 APPROPRIATION – CITY OF TROY – IMPROVEMENTS TO BIG BEAVER ROAD – PROJECT NO. 52201 The resolution, which was introduced by Mike Bosnic and Gary McGill ivray, authorizes the release of $100,054 (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 Troy. The project consists of the concrete s lab replacement on Big Beaver Road from Adams Road to Civic Center Drive. A Cost Participation Agreement is included, and a budget amendment of $100,054 is recommended. Any additional project cost less than 15% of the original agreement will be honored u nder this agreement. Project costs exceeding 15% will require an additional resolution and approval. Long moved approval of the attached suggested Fiscal Note. Supported by Scott. Motion carried unanimously on a roll call vote with Woodward and Matis absent. REGULAR AGENDA 2. MR #14121 - SHERIFF’S OFFICE – TRANSFER OF OWNERSHIP AND RELEASE OF CLAIMS AGREEMENT FOR K -9 DOG (RAINE) The Sheriff’s Office is seeking approval to transfer ownership of K -9 Dog, Raine, to Deputy Chris Topacio per the Transfer o f Ownership and Release of Claims Agreement for $1.00. Raine is retiring from the Oakland County Sheriff’s Office, Canine Unit. Zack moved approval of the attached suggested Fiscal Note. S upported by Scott. Motion carried unanimously on a roll call vote with Woodward and Matis absent . 3. SHERIFF’S OFFICE – TRANSFER OF OWNERSHIP AND RELEASE OF CLAIMS AGREEMENT FOR K-9 DOG (YEAGER) The Sheriff’s Office is seeking approval to transfer ownership of K -9 Dog, Yeager, to Deputy Sherry Locher per the Transfer of Ownership and Release of Claims Agreement for $1.00. Yeager is retiring from the Oakland County Sheriff’s Office, Canine Unit. Taub moved approval of the attached suggested Fiscal Note. Supported by Long. Motion carried unanimously on a roll call vote with Woodward and Matis absent . 4. SHERIFF’S OFFICE – TRANSFER OF OWNERSHIP AND RELEASE OF CLAIMS AGREEMENT FOR K-9 DOG (CHARGE) The Sheriff’s Office is seeking approval to transfer ownership of K -9 Dog, Charge, to Deputy David Roddy per the Transfer of Ownership and Release of Claims Agreement for $1.00. Charge is retiring from the Oakland County Sheriff’s Office, Canine Unit. Long moved approval of the attached suggested Fiscal Note. Supported by Crawford. Motion carried unanimously on a roll call vote with Matis absent. FINANCE COMMITTEE Page 4 June 5, 2014 5. SHERIFF’S OFFICE – CONTRACT AMENDMENT #2 FOR LAW ENFORCEMENT SERVICES IN THE CHARTER TOWNSHIP OF OAKLAND 2013 – 2015 The Sheriff’s Office is seeking approval of A mendment #2 for Law Enforcement Services in the Charter Township of Oakland 2013 – 2015 to add one (1) full-time Deputy II (no-fill) position in the Patrol Services Division/Oakland Township of the Sheriff’s Office for the period of June 14, 2014 through December 31, 2015 bringing the total contracted positions for Oakland Township to 15. One (1) marked Patrol Tahoe with mobile data computer, camera, mobile and prep radio shall be added to the County fleet. Scott moved approval of the attached suggested Fiscal Note . Supported by Long. Motion carried unanimously on a roll call vote with Matis absent. 6. MULTI DEPARTMENT (SHERIFF’S OFFICE, CIRCUIT COURT AND CHILDREN’S VILLAGE) – 2014 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT (JAG) PROGRAM GRANT APPLICATION AND INTERGOVERNMENTAL AGREEMENT The U.S. Department of Justice, Office of Justice Programs has allocated $158,331 in funding under the 2014 Edward Byrne Memorial Justice Assistance (JAG) Program to the County of Oakland and the City of Pontiac through a joint application for the period of October 1, 201 3 through September 30, 2017. The total funding of $158,331 is based on Federal allocation . The amount of $56,463 was distributed to the County of Oakland, and $101,868 was distributed to the City of Pontiac (via the Sheriff’s Office). There is no grant match requirement. The County of Oakland will serve as fiduciary and lead agency for the entire awa rd. The funds will be used to acquire equipment for the Sheriff’s Office Corrective Services Court Detention Unit and Tactical Unit. The equipment acquisition is for the Circuit Court, doorbells/signaling system for Children’s Village, and overtime costs to deploy detectives, conduct special investigations and use directed patrol units to proactively deter violent criminal behavior and aggressively investi gate criminal activity within the City of Pontiac. The Public Services Committee amended the resolution, and a revised resolution was distributed to be approved in place of the version that was in the packet. Zack moved approval of the attached sugg ested Resolution . Supported by Quarles. Motion carried unanimously on a roll call vote with Matis absent. 7. HUMAN RESOURCES DEPARTMENT – SALARY ADMINISTRATION PLAN 3 RD QUARTERLY REPORT FOR FY 2014 The Department of Human Resources is seeking approval of the 3 rd Quarterly Report for FY 2014, which includes a change in the factor for the WRC Community Liaison from Grade/Points 11/370 to Grade/Points 11/395, the deletion of the classification of Environmental Program Coordinator, the upgrade s of the following: one (1) Court Business Administrator – Circuit Court/Business Division from a Grade 19 to a Court Business Manager Grade 20, one (1) Human Resources Supervisor from a Grade 16 to a Supervisor-Labor Relati ons Grade 17 and one(1) Animal Control Superv isor – Public Service/Animal Control from a Grade 11 to a Chief – Animal Control, Grade 14. A budget amendment is recommended. Ms. Taylor explained that Human Resources conducted job studies on these positions, and these changes are recommended based on those job studies. Scott moved approval of the attached suggested Fiscal Note . Supported by Crawford. FINANCE COMMITTEE Page 5 June 5, 2014 Motion carried unanimously on a roll call vote with Matis absent. 8. DEPARTMENT OF PUBLIC SERVICES – ANIMAL CONTROL DIVISION – POSITION DELETION AND POSITION CREATION The Animal Control Division is requesting approval to delete one vacant General Fund/General Purpose Full-Time Eligible Animal Control Officer position to support the creation of one (1) General Fund/General Purpose Full-Time Eligible Veterinarian Technician. In addition, one (1) General Fund/General Purpose Part-Time, Non-Eligible, 445 hours per year Animal Shelter Attendant will be created to aid in the day -to- day care of the increased shelter population. Taub moved approval of the attached suggested Fiscal Note. Supported by Crawford. Motion carried unanimously on a roll call vote. 9. DEPARTMENT OF ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS – PLANNING & ECONOMIC DEVELOPMENT SERVICES – 2013 ECONOMIC DEVELOPMENT ASSISTANCE PROGRA M GRANT ACCEPTANCE AND LEAD AGENCY AGREEMENT The Department of Economic Development & Community Affairs is requesting approval of an $80,000 grant from the U.S. Department of Commerce Economic Development Administration (EDA) for the period of June 1, 2014 through May 31, 2015. The resolution accepts the $80,000 grant for the City of Pontiac and authorizes the Oakland County Department of Economic Development and Community Affairs to act as administrator for this grant. The grant provides funding for pla nning assistance for communities facing economic dislocation due to automotive sector restructuring through their Planning Program and Local Technical Assistance Initiative. There is an in -kind match required in the amount of $35,000, which will be provided by staff from the Planning & Economic Development Services Division for a total grant program amount of $115,000. Taub moved approval of the attached suggested Fiscal Note. Supported by Woodward. Motion carried unanimously on a roll call vo te. 10. WATER RESOURCES COMMISSIONER – RESOLUTION TO AUTHORIZE ADVANCE FROM LONG- TERM REVOLVING FUND TO THE LOWER PETTIBONE LAKE SANITARY DRAIN DRAINAGE DISTRICT FOR CONSTRUCTION OF LOWER PETTIBONE LAKE SANITARY DRAIN The Water Resources Commissioner is requ esting authorization to advance an amount not to exceed $1,200,000 from the County’s Long -Term Revolving Fund for a sanitary sewer project on Lower Pettibone Lake in Highland Township. Mr. Korth explained that this project will be established under the Mic higan Drain Code and that it was initiated by petition from residents who live around Lower Pettibone Lake who expressed an interest for a sanitary sewer to come to their area. The estimated cost of this project is $1,000,000. A few weeks ago a transfer of funds in the amount of $1,000,000 was approved by the Board of Commissioners via Miscellaneous Resolution #14112 in anticipation of using the funds for this project. The advance will be paid back through a special assessment roll, approved over the nex t 20 years, with interest. The construction of the sanitary drain project will be managed by the Water Resources Commissioner. The contract was not included in the Finance Committee meeting packets; however, copies were distributed at today’s meeting. Matis moved approval of the attached suggested Fiscal Note. Supported by Taub. Motion carried unanimously on a roll call vote. FINANCE COMMITTEE Page 6 June 5, 2014 A. County Executive Compliance Office/Purchasing – Contract Exception Report for the June 5, 2014 Finance Committee Meeting In regard to the USA Blue Book composite influent sampler replacement at the Walled Lake Novi Waste Water Treatment Plant, Commissioner Taub asked if the WRC had an extra influent sampler on hand. Mr. Wineka explained that they have other sampler s that they can take out of service, if necessary, as they are not as critical as this particular sampler. He also indicated that in the event that it does fail, they are readily available. Mr. Wineka explained that they purchased this particular sampler through a catalog, and it was available the next day. The WRC does not have a blanket contract so they had to move f orward with the exception, as noted on the exception report . Mr. Wineka indicated that they actually did get two verbal prices; however, with the other company it would have taken ten (10) days to receive it. 11. DEPARTMENT OF CENTRAL SERVICES/LEASED VEHICLES – EXPANSION OF THE VEHICLE FLEET FOR PARKS AND RECREATION The Department of Central Services and the Parks and Recreation Commission ar e seeking approval to purchase a replacement passenger motor coach bus in the amount of $200,000. Since this was already included in the Parks and Recreation Commission’s FY 2014 Adopted Budget, no budget amendment is required. Mr. Stencil informed the commissioners that there is an error in the resolution with regard to the total fleet size. He indicated that the number should be 67, as opposed to 65. This vehicle will be assigned to the Recreation Unit and will increase the overall Parks and Recreatio n fleet size by one to 67. Mr. Stencil indicated that they will keep the old bus as a backup. Long moved approval of the attached suggested Resolution. Supported by Scott. Scott moved to amend the resolution by changing the total number of fleet si ze, which the resolution states is 65, to 67 in the 4th and 8th WHEREAS paragraphs and the BE IT FURTHER RESOLVED paragraph. Supported by Long. Motion to amend carried unanimously on a roll call vote. Main motion, as amended, carried unanimously on a roll call vote. 12. BOARD OF COMMISSIONERS – DIGITIZING OF THE RESEARCH LIBRARY The resolution authorizes the full-scale digitization of the Oakland County Reference Library to be made publicly available on the Oakland County Historical Resources Consortium website with a cost not to exceed $25,000.00. The Oakland County Board of Commissioners will also continue to cover the cost of the consortium’s membership fee of $600. Mr. VerPloeg indicated that there is 70 linear feet of materials that need to be digitized. Ms. Mancini indicated that once the documents are scanned and digitized, the majority of the documents will be recycled, some will go to Record Retention for permanent storage, some will be kept for public interest and some will be returned t o the departments, if they request it. Long moved approval of the attached suggested Fiscal Note. Supported by Woodward. Motion carried unanimously on a roll call vote. 13. BOARD OF COMMISSIONERS – EXTENSION OF PROFESSIONAL SERVICES CONTRACT FOR GOVERNMENT RELATIONS CONSULTING FIRM TO PUBLIC AFFAIRS ASSOCIATES INC. FINANCE COMMITTEE Page 7 June 5, 2014 The resolution authorizes the extension of the professional services contract with Public Affairs Associates, Inc. (PAA) as the government relations consulting firm representing the interests of t he Oakland County Board of Commissioners. The contract period is for three (3) years, commencing on June 30, 2014 through June 30, 2017. Under the terms of the contract the Board of Commissioners would authorize a monthly fee of $5,000 for services unles s terminated by the parties. Sufficient funds have been budgeted for this agreement; therefore, there is no budget amendment required. Commissioner Zack indicated that she is not in agreement with having multiple lobbyists for Oakland County. Matis moved approval of the attached suggested Fiscal Note. Supported by Crawford. Scott moved to amend the NOW THEREFORE BE IT RESOLVED paragraph by changing the period of the contract from three (3) years to (1) year commencing 6/30/2014 through 6/30/2015. Supported by Zack. FINANCE COMMITTEE VOTE: AYES: Long, Scott, Zack (3) NAYS: Taub, Woodward, Crawford, Matis, Quarles, Middleton (6) Motion to amend failed. Main motion carried on a roll call vote with Long, Scott and Zack voting no. 14. BOARD OF COMMISSIONERS – 2014 PARKS AND RECREATION PROPERTY TAX LEVY The resolution authorizes and directs the Supervisor of the various townships and Assessing Officers of the several cities of Oakland County to spread on their respective township or city tax rolls for the year 2014 December Levy, a tax rate of 0.2415 mills for Oakland County Parks and Recreation activities, to be applied to the 2014 Taxable Value of all property located within their respective jurisdictions. Scott moved approval of the attached s uggested Resolution. Supported by Long. Motion carried unanimously on a roll call vote. 15. DEPARTMENT OF MANAGEMENT AND BUDGET – FISCAL YEAR 2014 SECOND QUARTER FINANCIAL FORECAST AND BUDGET AMENDMENTS The resolution accepts the Fiscal Year 2014 Second Q uarter Financial Report. The Transmittal Letter of June 5, 2014, from Management and Budget forecasts that the County will complete FY 2014 with an overall favorable variance of $19,603,113 in General Fund/General Purpose (GF/GP) operations, compared to the amended budget. This overall favorability is split between receiving $330,863 more revenue than anticipated and a projected favorability in expenditures of $19,272,250. Ms. Sonkiss explained that the revenue favorability is primarily from improved pr operty tax revenues. There is an unfavorable amount of $1,795,500 from the State in the form of child care fund costs, but that is more than offset by projected reduced expenditures. In regard to other intergovernmental revenue, there is an unfavorable amount of $336,300, which is primarily due to State Court Fund Distribution reimbursement revenue based on caseload distribution to date. There is $740,200 favorability in Investment Income due to one-time capital gains realized from the redemption of the 2007 Oakland County Certificates of Participation held in the County’s investment portfolio. FINANCE COMMITTEE Page 8 June 5, 2014 Ms. Sonkiss indicated that the projections show that no County departments will be over budget by the end of Fiscal Year 2014. Taub moved approval of the at tached suggested Resolution. Supported by Woodward. Motion carried unanimously on a roll call vote. OTHER BUSINESS/ADJOURNMENT Budget Projections for FY 2014 – FY 2018 (Long-Range Fiscal Plan) The Oakland County Long -Range Fiscal Plan Summary Report w as handed out today for review by the commissioners. This report identifies projected operating shortfalls, discusses business issues facing the County and proposes means to resolve budgetary issues. The Fiscal Plan Summary is an update of significant events, business issues and impacts on the County’s operating budget previously reflected in the adopted budget of the Board of Commissioners in September 2013. Ms. Sonkiss explained that the summary schedule highlights the major changes that they are mak ing for the upcoming budget process, and the spreadsheet starts out with the County’s last adopted budget book. Then changes are made based on major items that will impact the budget . Ms. Sonkiss briefly highlighted the major adjustments that have been made to the operating budget which will be included in the FY 2015 – FY 2017 recommended budget. • OPEB (Other Post-Employment Benefits) Refinancing Savings – Savings of $171 million was not factored into the last budget process so there is favorability through reduced annual interest payments from 6.23% to 3.62% that will be reflected in the upcoming budget process. • Pension Contribution – Fiscal Services had anticipated a larger amount to be contributed for the pension contribution fund; however, the report is showing favorability over the next several years, as reflected on Schedule A. • Property Tax Value Improvements: Better results seen with the property tax values, which include estimated percentage changes in property tax revenues from FY 2014 thro ugh FY 2018. • Personal Property Tax, Legislative Revision Impact: The Michigan Legislature approved a series of bills in December 2012 to phase out and eventually eliminate industrial and commercial personal property tax to entice businesses to locate in Michigan and to encourage existing businesses to expand. If the vote passes in August, they wi ll be seeing reimbursement for property tax loss starting in FY 2016. If it doesn’t pass, they will see the reimbursement in FY 2015. • Information Technology Reference Architecture Project: The Department of Information Technology will be requesting $1.0 million for the Reference Architecture Project , which is part of their Capital Improvement Plan that the County provides General Fund support for, as needed. • Building Security Enhancements: The County is working on a comprehensive security plan for all its County Campus buildings, and $3 million is included in the Fiscal Plan to provide funding for high-priority capital needs and additional staffing. • Building Capital Improvement Program: The County currently has a transfer of $300,000 per year going to that fund. This Fiscal Plan includes an additional $1.2 million of General Fund dollars annually for transfer to the Building Improvements Fund, bringing the tota l amount of General Fund appropriation up to $1.5 million annually. • Proposed Salary Increase: Last year’s budget had proposed a 1% salary increase for FY 2015; however, what is now being recommended for FY 2015 is 3%, so the $4.4 million reflects an additional 2% over what was previously budgeted, and for FY 2016 a 2% salary increase is being proposed, which is 1% additional over what was previously budgeted. • DWSD Consultants: During the last budget process $3 million was set aside for Detroit Water and Sewer Department (DWSD) consultants , and they have appropriated $500,000 through MR #14064. There is a projected $2 million of assigned fund balance that will be needed for FY 2015. • Transfer to WRC Long-Term Revolving Fund: Per Miscellaneous Resolution #14112, on May 15, FINANCE COMMITTEE Page 9 June 5, 2014 2014, $1 million was transferred from the General Fund to the WRC Long -Term Revolving Fund to provide capital funding for the Lower Pettibone Lake Sani tary Sewer Project for financing through a contract with the Drainage District under Chapter 4 of the Michigan Drain Code. • Restore Circuit Judge in January 2015: A prorated amount of approximately $450,000 for FY 2015 and $600,000 annually for FY 2016 and beyond is proposed to support judicial staff. • General Favorability/Turnover: Based on the recent 2nd Quarter Forecast, it is anticipated that the General Fund will have $18.1 million of favorability in FY 2014, with an anticipated continued favorability in the next several years through savings mostly due to employee salaries and fringe benefits and turnover, which represents about a 3% turnover rate through FY 2018. • Tri-Party Road Project Funding: The Fiscal Plan includes $2 million annually to have available in the General Fund Balance to support the local road funding program. • Building Security Cameras/Consoles: There is an assignment in the General Fund Balance for this project, which includes the replacement of security cameras, security control panels and intercom systems at the jail, Jail A nnex, Children’s Village and Animal Contr ol. Ms. Sonkiss indicated that with all of these adjustments, by the end of FY 2018 there will be a favorable amount in excess of the sustainable target amount of about $10.7 million, which allows Fiscal Services to bring forth a budget in the next severa l weeks that will require no budget tasks for departments , making it the 3rd year in a row that there were no budget tasks assigned to departments. Ms. Sonkiss explained that they will continue to use the fund balance to balance the budget, but not as muc h as previously. Commissioner Taub asked about how many years are left to receive revenue sharing from the State. Ms. Sonkiss indicated that in Fiscal Ye ar 2015, the County will have a partial restoration of revenue sharing, and in FY 2016 there will be full restoration of revenue sharing . The County has $16 million budgeted for revenue sharing in FY 2016. Commissioner Taub indicated that the Michigan Association of Counties (MAC) has worked very hard on the issue of revenue sharing, and they have two pe ople from MAC continuing to work on it. Matis moved to receive and file the Budget Projections for FY 2014 – FY 2018 (Long -Range Fiscal Plan). Supported by Taub. Motion carried on a voice vote. There being no other business to come before the commi ttee, the meeting was adjourned at 10:26 a.m. ________________________ _______________________________ Pamela L. Worthington Jim VerPloeg Committee Coordinator Administrative Director NOTE: The foregoing minutes are subject to Committee a pproval.