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HomeMy WebLinkAboutMinutes - 2014.08.14 - 36831TOM MIDDLETON Chairperson SHELLEY TAUB Vice Chairperson DAVID WOODWARD Minority Vice Chairperson August 14, 2014 Chairperson Middleton called the meeting of the Finance Committee to or der 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, John Scott, Kathy Crawford, Jeff Matis, Nancy Quarles COMMITTEE MEMBERS ABSENT WITH NOTICE: Helaine Zack OTHERS PRESENT EXECUTIVE Phil Bertolini, Deputy Executive/CIO CORPORATION COUNSEL Nicole Tabin, Assistant Counsel COMPLIANCE OFFICER Pam Weipert, Compliance Officer PURCHASING Scott Guzzy, Administrator COMMUNITY & HOME IMPROVEMENT Kathy Williams, Supervisor FACILITIES MANAGEMENT Ed Joss, Manager Jason Warner, Supervisor HEALTH & HUMAN SERVICES George Miller, Director HUMAN RESOURCES Nancy Scarlet, Director John Hajkus, Deputy Director Heather Mason, Analyst Monica Tinsley, Analyst Connie Srogi, Analyst Sara Kohn, Analyst INFORMATION TECHNOLOGY Ed Poisson, Director MANAGEMENT & BUDGET Laurie Van Pelt, Director EQUALIZATION Dave Hieber, Manager FISCAL SERVICES Lynn Sonkiss, Manager Gaia Piir, Chief Holly Conforti, Chief Ebru Adoglu-Jones, Supervisor Nancy Falardeau, Analyst Prentiss Malone, Analyst Leo Lease, Analyst FRIEND OF THE COURT Susan Hollyer, Friend of the Court LIBRARY BOARD Laura Mancini, Director John Chambers, Chairperson 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 FINANCE COMMITTEE Page 2 August 14, 2014 PARKS AND RECREATION COMMISSION Dan Stencil, Executive Officer PROSECUTING ATTORNEY Jessica Cooper, Prosecutin g Attorney Paul Walton, Deputy SHERIFF Michael Bouchard, Sheriff Michael McCabe, Undersheriff Dale Cunningham, Business Manager Charles Snarey, Major Robert Smith, Major Mike Johnson, Captain Curtis Childs, Captain TREASURER Andy Meisner, Treasurer Jody DeFoe , Chief Deputy Ross Gavin, Deputy Treasurer WATER RESOURCES COMMISSIONER Phil Sanzica, Deputy Steve Korth, Manager Sid Lockhart, Chief Engineer MICHIGAN ASSOCIATION OF COUNTIES Tim McGuire, Executive Director BOARD OF COMMISSIONERS Jim Ver Ploeg, Administrative Director Chris Ward , Sr. Analyst Helen Hanger, Sr. Committee Coordinator PLEDGE OF ALLEGIANCE Chairperson Middleton led the Pledge of Allegiance. APPROVAL OF THE PREVIOUS MINUTES Quarles moved approval of the previous minutes o f July 24, 2014 as printed. Supported by Taub. Motion carried on a voice vote. AGENDA The agenda stands as printed. PUBLIC COMMENT None. FY 2012 CONTINGENCY REPORT The Fiscal Year (FY) 2014 Contingency Fund balance of June 11, 2014 at $110,720 remains unchanged. Item 1 will impact Fund Balance for $2.7 million. Mr. Miller reported that some communities are still looking at participating in the West Nile Virus Program. Information began to go out to the local units in February. The mo squito that carries the virus appears in August. Long moved to receive and file the FY 2014 Contingency Report dated August 8, 2014. Supported by Crawford. Motion carried on a voice vote. FINANCE COMMITTEE Page 3 August 14, 2014 COMMUNICATIONS A.* B. C. D. E. County Executive Compliance Office/ Purchasing – Contract Exception Report for the August 14, 2014 Finance Committee Meeting Parks and Recreation – Bear Track Studios Mr. Stencil explained that the exce ption was to allow Parks to continue with the same artist for consistency in creation of nature interpretative signage throughout the park system. Signage being done for Rose Oaks and Highland Oaks will match that at Lyon Oaks. Funding was provided by a contribution from ITC. Circuit Court – 2015 Michigan Drug Court Grant Program (Juvenile Drug Court) - Application Circuit Court – 2015 Michigan Drug Court Grant Program (Adult Treatment Court) - Application 52/4 District Court – 2015 Drug Court Grant Program - Application Sheriff’s Office/Prosecuting Attorney – FY 2015 Narcotics Enforcement Team (NET) – Grant Application Taub moved to receive and file the communications. Supported by Crawford. Motion carried on a voice vote. REGULAR AGENDA 1. MR #14183 - FACILITIES PLANNING & ENGINEERING (FPE) / SHERIFF’S OFFICE (SO) – INTERCOM/CONSOLES REPLACEMENT / VIDEO CAMERA EXPANSION PROJECT Facilities is requesting authorization to transfer funds of $500,000 from the Capital improvement Program / Building Fund to the Project Work Order Fund and $2,743,014 from the General Fund Assigned Fund Balance for Building Security Cameras and Consoles to the Project Work Order Fund to replace the Jail Annex Intercom Systems and the Jail Annex Video Camera System , both originally installed in 1989. Both the Main Jail Video Camera System and Jail Annex Video Camera System would be expanded to include the tunnel between the Jail and the Courthouse, Medical Clinic, etc. The original analog cameras will be replaced with IP-based cameras to improve resolution, coverage, efficiency of exporting and finding archived video and ability to view a number of cameras on a single screen. A data fiber backbone would be installed to increase camera and data throughput speed for both video and card scanner systems and consoles will be replaced with a Touch Screen Control System. Berbiglia and Associates, an annual competitively bid electrical engineering contractor, designed the system and assisted with bidding its selection. The systems were competitively bid and Midstate Security Company of Wyoming, Michigan was the lowest responsible bidder of $2,289,835, Camera Alternate $259,179, Service Contract for Camera System $102,801, Service Contract for Intercom System $163,000. FM labor costs of $25,000, professional electrical engineering services costs of $108,000 and a contingency of $295,199 will yield a total project cost of $3,243,014. Project costs also include maintenance for 6 years. Commissione r Woodward reported that at its July 22 meeting, Planning and Building had moved to request that Facilities come back with additional security recommendations for the kitchen area. Mr. Joss reported that 7 additional cameras are being added to the kitchen area. The cost is inclu ded in this proposal (contingency). FINANCE COMMITTEE Page 4 August 14, 2014 Taub moved approval of the attached suggested Fiscal Note. Supported by Crawford. Motion carried unanimously on a roll call vote with Zack absent. 2. SHERIFF’S OFFICE – MARINE PATROL SERVICES AGREEMENT IN THE CHARTE R TOWNSHIP OF WHIT E LAKE – 2014 - 2015 The Sheriff is requesting authorization to enter into a Marine Patrol Services Agreement with the Charter Township of White Lake to provide marine safety patrol services for Cedar Island Lake up to 65 hours effective August 1, 2014 through September 30, 2015. Long moved approval of the attached suggested Fiscal Note. Supported by Scott. Motion carried unanimously on a roll call vote with Zack absent. 3. MR #14182 - WATER RESOURCES COMMISSIONER – OAKLAND-MACOMB INTERCEPTOR DRAIN DRAINAGE DISTRICT FULL FAITH AND CREDIT RESOLUTION The Water Resources Commissioner is requesting Board authorization to proceed with the sale of bonds in a not to exceed amount of $28 million to proceed with critical work needed on the Oa kland -Macomb Inter- County Drain, otherwise known as Segment 4 and the North East Pump Station. Of the total $28 million, $10 million will be sold to the Michigan Finance Authority as part of the MDEQ State SAW loan program with a capped interest rate at 2 .5%. The remaining amount will be publicly sold at an interest rate not to exceed 6%. This sanitary sewer and pump station serves a combined 26 communities with 800,000 residents in both Oakland and Macomb counties. Macomb County will also be undertaki ng a similar resolution. Bonds will be payable in part from the collection of special assessments against those public corporations in both counties within the Drainage District as detailed in the resolution. Taub moved approval of the attached suggested Fiscal Note. Supported by Crawford. Motion carried unanimously on a roll call vote with Zack absent. 4. DEPARTMENT OF HEALTH AND HUMAN SERVICES – HOMELAND SECURITY DIVISION – PERFORMANCE GRANT AGREEMENT FOR FISCAL YEAR 2014 ACCEPTANCE Homeland Security is requesting authorization to accept federal pass -through grant funding from the State of Michigan Department of State Police of $55,418 for Fiscal Year 2014 with a 50% County match of $55,418 for total funding of $110,836 for the period October 1, 201 3 through September 30, 2014. This is the 42nd year of grant acceptance for this program. The program encourages the development of comprehensive disaster preparedness and assistance plans, programs, capabilities and organizations by the state and local governments. The grant represents reimbursement for a portion of salaries. Taub moved approval of the attached suggested Fiscal Note . Supported by Quarles. Motion carried unanimously on a roll call vote with Zack absent. 5. FRIEND OF THE COURT – 2014 ACCESS AND VISITATION GRANT – AMENDMENT OVER 15% The Friend of the Court is requesting authorization to accept a grant amendment of $3,200 to the original Federal FY 2014 Access and Visitation Grant award of $14,500 (MR #13316) administered by the State Court Administrative Office. The increased total award of $17,700 coincides with the original grant period of October 1, 2013 through September 30, 2014. FINANCE COMMITTEE Page 5 August 14, 2014 Crawford moved approval of the attached suggested Fiscal Note . Supported by Woodward. Motion carried unanimously on a roll call vote Zack absent. 6. DEPARTMENT OF ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS – COMMUNITY & HOME IMPROVEMENT DIVISION – MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY (MSHDA) NATIONAL FORECLOSURE MITIGATION COUNSELING PROGRAM ROUND 8 SUB- GRANTEE AGREEMENT FOR COUNSELING SERVICES Community and Home Improvement is requesting authorization to enter into a Michigan State Housing Development Authority National Foreclosure Mitigation Counseling Round 8 Sub -Grantee Agreement for $6,600.00 to provide approximately 34 billable units of foreclosure mitigation counseling services for Oakland County families, up to $300 per household, for the period July 14, 2014 through December 31, 2014. Funding will supplement limited federal Communit y Development Block Grant funds for counseling. Taub moved approval of the attached suggested Fiscal Note . Supported by Scott. Motion carried unanimously on a roll call vote with Zack absent. 7. INFORMATION TECHNOLOGY DEPARTMENT – CREATE POSITION Information Technology is requesting authorization to create one full-time eligible Proprietary Revenue position and new classification titled Chief information Security Officer. This position will be responsible to set the direction of and deliver the over all IT security architecture, operations, risk management and regulatory and compliance for Oakland County and to keep cyber defenses, operations and the overall organization prepared for current and ongoing threats. Mr. Bertolini explained that with all the data systems the county houses it is vitally important to have a full- time cyber security position on the County’s team. A contractor was hired 18 months ago who has taken the County light years beyond were it was and this needs to continue. The Administration believes it is necessary to secure a full-time employee who will buy into and grow with the organization. The private sector can pay more but the County’s base salary and benefit packet is competitive . Privatization is an important tool for IT and contracting makes sense for short -term projects but not for this purpose. A contractor could be off somewhere else instantly. The position will be filled through an open competitive exam. Funding will be rolled into the IT rates with savings on the p rofessional services side from elimination of the contract. The County will be providing security based training for its personnel and is in the process of cloud conversion. This requires that the data reside elsewhere besides at IT and is securely encrypted. In September, the County will be launching its G2 G Marketplace free security assessment tool for government. This tool will allow governments of any size to assess their IT security needs and show where to reach out to for assistance. Commissioner s are encouraged to talk to their local units and IT would be happy to set up a demonstration. Taub moved approval of the attached suggested Resolution. Supported by Quarles. Motion carried unanimously on a roll call vote with Zack absent. 8. FACILITIES MANAGEMENT/FACILITIES PLANNING & ENGINEERING – AWARD OF CONTRACT FOR 2014 PARKING LOT REPAVING PROGRAM PROJECTS Facilities Management is requesting that the committee report to Finance with a recommendation to approve the resolution for the 2014 p arking lot repaving program, including the award of a contract with FINANCE COMMITTEE Page 6 August 14, 2014 Hutch Paving of Warren in the amount of $1,127,169. The total project cost of $1,278,385, includes the award of contract, professional services for surveying of $45,000 and contingency of $116,216. The three parking lots to be repaved include Courthouse South, Courthouse West and the North Office Building. Repaving of the Addison Oaks Entrance Drive was bid out with these other projects to provide Parks and Recreation with economies of scale. This project will be authorized by the Parks Commission and paid for through its Capital budget. The vendor will repave one lot at a time . It is estimated that it will take 6 -8 weeks to pave all three lots. Routes will be marked throughout the ca mpus to direct employees and the public to parking. Regarding discussion in the Planning and Building Committee on Tuesday to mitigate water runoff, Mr. Joss reported that he had reviewed the campus drawings and it appears that a large majority of the w ater runoff goes into retention areas, culverts and wetland s. Drawings are available for commissioners’ review. Crawford moved approval of the attached suggested Resolution. Supported by Matis. Motion carried unanimously on a roll call vote with Zack absent. 9. DEPARTMENT OF MANAGEMENT AND BUDGET – POSITION MODIFICATIONS Management and Budget is requesting authorization to modify position structures for its Equalization and Fiscal Services Divisions to provide more efficiency and improve supervision . In Equalization, two positions will be downwardly reclassified , one position upwardly reclassified, two classifications will be retitled and one position will be deleted. Fiscal Services will delete three positions and create three positions. The resolution includes specific details. These actions will result in a savings of $67,275. Ms. Van Pelt explained that the class and level of work to be supervised has changed drastically and they believe they are getting better employee s doing more work more efficiently. Assistance will be added in the grants unit to help with administration because of federal circular requirements. Mr. Hieber reported that Equalization has had a struggle to get people to apply for positions . An ad for an Appraiser Level 4 resulted in one application. In the last 12 -18 months there has been no response to ads for Appraiser 1 and II positions. Equalization is working with Human Resources to get qualified applicants and to grow in-house experts by training and sending staff to school. Chief positions certified as Level 4 Appraisers are needed to handle expertise in each of 4 sections. These proposed changes will provide more opportunities within the division and assist with succession planning. One employee has just been promoted to a Level 4. Ms. Van Pelt advised that they are looking at changing their recruitment approach to reach out to colleges and to tap social networking Taub moved approval of the attached suggested Resolution. Supported by Matis. Motion carried unanimously on a roll call vote with Zack absent. 10. BOARD OF COMMISSIONERS – PAYMENT OF 2015 COUNTY DUES FOR MICHIGAN ASSOCIATION OF COUNTIES (MAC) MR #04298 requires that the Finance Committee approve annual payment of the County’s dues to the Michigan Association of Counties (MAC) prior to processing the invoice. The Board of Commissioners has received an invoice for 2015 Dues in the amount of $72,811.73 for the period July 1, 2014 – June 30, 2015. Mr. McGuire reported that one important issue that MAC has pushed in the last year was revenue sharing. This is the first time in 11 years that Oakland County has gotten its revenue sharing back at 100% funded FINANCE COMMITTEE Page 7 August 14, 2014 under the formula. This was accomplished by hard work including MAC Board members sitting with Governor Snyder to discuss the importance of county governments and the services they need to provide to people. Other issues are transportation and, for all 83 counties, the Cunningham case decision which reduces the fees that can be assess ed by criminal courts. MAC is working with the Supreme Court to try and resolve that issue. Mr. McGuire recognized Oakland County for the expertise they provide to MAC on how legislation will affect counties and acknowledged Commissioner Hatchett, Mr. Daddow, etc. Taub moved to authorize payment of the Fiscal Year 2015 MAC County Dues invoice in the amount of $72,811.73. Supported by Matis. Motion carried on a roll call vote with Long and Scott voting no and Zack absent . The Committee recessed from 10:19 a.m. – 10:30 a.m. The roll was called again to assure a quorum of the committee was in attendance. All members but Zack (absent with notice) were present. BUDGET HEARINGS TREASURER Mr. Meisner reported that property values were up 1.65% and they are se eing a 87% decrease in parcels before the Michigan Tax Tribunal from 2012 to 2014 year to date. The total number of delinquencies declined from $89.7 million in 2013 to about $80 million in 2014 so far so this is another positive indicator of the real estate market and tax base. The number of parcels going to the land sale has also declined from 16,050 in 2012 to about 900 in 2014. This year’s land sale is August 18 -20. You must register by Friday, August 15 at 5 pm. There will not be same day registra tion. The Treasurer is doing a public private partnership program with realtors to find families for foreclosed properties. About 96% of property taxes are paid on time which means less interest and fees for taxpayers. In 2013 4.1% of property taxes were turned over to the Treasurer for delinquency. This is the lowest rate since 2005 which is good news . Monthly payment plans are continuing to help people save their homes. There are 400 active plans of $37.7 million over the last 18 months. The Step Forward MI program continues to help people who have tax delinquencies or a mortgage deficiency. A total of 508 families have taken advantage of the program, in part because commissioners spread the word. Home owners are eligible for up to $30,000 eac h. Those funds will dry up in 2017. The Treasurer maintains about a $1 billion portfolio that continues to out-perform 30 day T bills. Interest rates continue at historical lows. There is some upward pressure on interest rates so they may be a little better next year. The Office continues to collect delinquent taxes on behalf of the local units. Employees are being moved to meet needs. Two employees were moved from the Personal Property Tax Unit to another area to try and keep pace with workloads in a comparative fashion. There are currently over 1,000 properties deeded to the county. A position was reclassified to assist in getting these properties back on the tax roll; the DTRF remains robust as a result of borrowing . The Treasurer appreciates the partnership with purchasing which has helped with the land sale, media, delinquent tax management software purchase, armor car contracts, etc., as well as Information Technology’s (IT) assistance. The Office Development Project was begun prior to this Treasurer’s administration. Many of the modules are up and running but some were ill fitted and the Treasurer is in the late rounds of a request for proposal process to get a product off the shelf instead of it being developed. The cost will be about $8,000 compared to $5-6 million on the IT side. A Community and Economic Development Association of Michigan grant was awarded to the Treasurer to fund a financial empowerment center which provides financial counseling assistance. Questions regarding the Treasurer’s line item budget were addressed. FINANCE COMMITTEE Page 8 August 14, 2014 WATER RESOURCES COMMISSIONER (WRC) Mr. Sanzica stated that last week the region experienced a 292 year storm event with over 5” of rain in a short period of time. There is no system that could be publicly fu nded and designed to handle such an event. Most of the problem was concentrated in the southeast communities and the WRC is working with those communities on the problem. All WRC facilities work properly but were inundated with the flow. The news reported some pumping stations were not working prop erly and may have been hit by scrappers for copper. The WRC maintains its facilities and is not aware of this being a problem but this may be an issue for MDOT. WRC staff was out all night dealing with complaints and is proud of how the situation was handled. The WRC believes its retention treatment basins operate properly and meet water quality standards. The WRC has protocols on how to avoid flooded basements. Work continues on the takeover of Pontiac’s water/sewer operations , the Middlebelt tunnel, the Oakland- Macomb Interceptor and the Perry Street pumping station which should be completed in about a year. PROSECUTOR’S OFFICE (PO) Ms. Cooper reported that their felony conviction rate remains high at 98%. The Circuit Court is bringing back another judge so this will mean another assistant prosecutor (AP). Otherwise there is not much difference between the new budget and the budgets f rom the last several years. In working cooperatively with the Sheriff, who has done a fine job in Pontiac, the PO is not dealing with as much violence. There are about 14 murder cases in the Que. The PO has 94 APs, as well as investigators, paralegals and secretaries doing Computer Research. When preparing for a trial APs need to access information not just in the office from 9 to 5 but at any time and outside of the office. Each AP needs to h ave to have a computer. Violent crime is down but other work volume is not. Ms. Van Pelt advised that when Ms. Cooper fi rst came in to office, she brought to the Administration’s attention the Computer Research contracts and they were able to get a big discount county -wide. Ms. Cooper explained that as the largest user they sat down and interviewed both Westlaw and Lexus. Lexus gave a better price because of the volume. Over $160,000 was saved through the bid process. However, the PO uses Westlaw for its print volumes. Some courtrooms are not set up for computers so the APs need to have court rules that are portable and the best volumes come from Westlaw. Library Continuations provide updates for the statute books which Lexus can’t do. These are paper supplements in back of the books. As a result of various Supreme Court cases, there is the potential that costs may increase for interpreters and expert witnesses. The PO has just lost one major crimes prosecutor to the Michigan Attorney General’s Office. Salaries at the County level cannot compete with the private sector or at the state and federal level. Eight employ ees trained in-house have left over the last two years. Training was moved from out -of-state to in-house several years ago as part of the budget task. Ms. Van Pelt indicated that a fund balance designation for interpreter costs has been created for all impacted departments until actual cost is known. SHERIFF’S OFFICE Sheriff Bouchard reported that his Office is working well with the P O. Their approach is that the people’s business comes first. The PO has been very helpful in making sure the streets stay safe and services are delivered in a fiscally prudent manner. For FY 2015 the budget is down in part b ecause of benefit cost reductions. Well trained staff provides better services and is critical for personal and community safety and taxpayers’ pocket books. The Sheriff has partnered with the Executive and Risk Management to put together training second to none. One person has been moved from another area to the computer crimes unit because they are o verwhelmed with requests from locals for assistance. Construction on the lab has been completed. Experts are now testing the equipment to make sure it operates under the right FINANCE COMMITTEE Page 9 August 14, 2014 parameters. The Sheriff would like to increase use of the tether program through the judges and alternative programs for non-violent offenders to free up more beds and hard cost. The tether program is 100% location driven whereas work release is not. The Sheriff and Mr. Cunningham r esponded to budget line item questions. BOARD OF COMMISSIONERS/LIBRARY BOARD Mr. Ver Ploeg reported that the Board of Commissioners /Administration is receiving Fee Income from the Prescription Discount Card Program which is anticipated to grow. The Special Projects line item was added to the budget for commissioner projects authorized by resolution. The Committee Room conference table is more than 25 years old and will be replaced after the new calendar year with a table that is technology compatible. The old table will be refurbished for Children’s Village. Mr. Chambers reported that last year the Library saved over $100,000 and over the last 5-6 years has reduced its budget by 46%. The Westlaw and Lexus contracts will expire at the same time so they will be competitively bid. Library utilization is not the same as that used by the P O’s Office and Circuit Court. Ms. Mancini further explained that when the APs need to use Westlaw, they come to the Library. The Library provides both computer and hard copy material. Libraries can only purchase the module made available for libraries for use by the general public. Both Lexus and Westla w contracts expire in 2015 and will be bid out as part of the same process. The Library has already begun coordinating with Purchasing. OTHER BUSINESS/ADJOURNMENT There being no other business to come before the committee, the meeting was adjourned at 11:53 p.m. ________________________ _______________________________ Helen A. Hanger Jim Ver Ploeg Senior Committee Coordinator Administrator Director NOTE: The foregoing minutes are subject to Committee approval.