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HomeMy WebLinkAboutMinutes - 2014.08.26 - 36833 August 26, 2014 Chairperson Runestad called the meeting to order at 9:30 a.m. in Committee Room A of the Courthouse Auditorium Wing, County S ervice Center, in Pontiac, Michigan. COMMITTEE MEMBER S PRESENT: Jim Runestad, Robert Gosselin, Gary McGillivray, Mike Bosnic, Bill Dwyer, Philip Weipert, Marcia Gershenson, David Woodward COMMITTEE MEMBERS ABSENT : None. OTHERS PRESENT: EXECUTIVE Matt Gibb, Deputy FACILITIES MANAGEMENT Art Holdsworth, Director Ed Joss, Manager COMMUNITY & HOME IMPROVEMENT Karry Rieth, Manager PARKS AND RECREATION Dan Stencil, Executive Officer Phil Castonia, Business Development Rep. BOARD OF COMMISSIONERS Jim VerPloeg, Administrative Director Sheryl Mitchell, Senior Analyst Helen Hanger, Sr. Committee Coordinator PLEDGE OF ALLEGIANCE Chairperson Runestad led the Pledge of Allegiance. PUBLIC COMMENT None. APPROVAL OF THE MINUTES Dwyer moved approval of the minutes of Augus t 12, 2014 as printed. Supported by Bosnic. Motion carried on a voice vote. APPROVAL OF THE AGENDA Gosselin moved approval of the agenda as printed. Supported by McGillivray. OAKLAND COUNTY BOARD OF COMMISSIONERS 1200 NORTH TELEGRAPH ROAD, PONTIAC, MICHIGAN 48341-0470 Telephone: (248) 858-0100 FAX: (248) 858-1572 PLANNING AND BUILDING COMMITTEE Mike Bosnic Bill Dwyer Philip Weipert Marcia Gershenson David Woodward JIM RUNESTAD Chairperson ROBERT GOSSELIN Vice Chairperson GARY MCGILLIVRAY Minority Vice Chairperson Planning & Building Committee Page 2 August 26, 2014 Motion carried on a voice vote. PUBLIC COMMENT None. AGENDA ITEMS 1. DEPARTMENT OF ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS – COMMUNITY & HOME IMPROVEMENT DIVISION – 2014 ANNUAL ACTION AND CONSOLIDATED GRANT ACCEPTANCE FOR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG), HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) AND EMERGENCY SOLUTIONS GRANT (ESG) PR OGRAMS Community and Home Improvement (CHI) is requesting authorization to accept consolidated CDBG, HOME and ESG grant funding from the U.S. Department of Housing and Urban Development (HUD) in the amount of $7,672,538, $500,000 in estimated Home Improve ment Revolving Loan Funds, $600,000 in estimated Home Program Income and HOME County match of $503,727 for a consolidated 2014 program year grant package totaling $9,276,265. This is the 40th grant year. Funds will be used to cover CHI positions as detailed in the resolution and to release funds to participating local units for related program activities authorized under HUD guidelines and described under the Action Plan . Commissioners inquired as to the availability of funds for communities and citize ns impacted by the rain event earlier this month that caused flooding in many of the county’s southeastern communities. Ms. Rieth and Ms. Spradlin explained that any flood remediation could only be done through the existing home improvement program. When these needs arise CHI can work with the communities to re -prioritize projects. There is a precedent in place as a result of Hurricane Katrina when HUD elected to expand on Oakland County’s existing public service case to spend as much as was necessary to feed, house and clothe those who came up from New Orleans at that time. There has been no further instruction. Unobligated dollars could be put into a fast track program locally to develop an emergency repair program for low income people. Commissioner Woodward indicated he had heard that the Healthy Michigan End owment had allocated $2 million to help with flooding issues and asked if the County had the capacity to receive those resources and inject them into its program. Ms. Reith explained that i f the state allocated funding for capital improvements to help with water and sewer improvements local units would have to apply. FEMA may issue funds but CHI cannot administer them. However, if the state provides funds to help with emergency sewer system repairs that would be seriously considered but CHI staff is m axed out now just on handling current programs. Commissioner Runestad stated that a mobile home park in Highland Township had sus tained severe damage from large hail so this information could provide possible solutions . Ms. Reith explained that if you have high damage insurance coverage and participate in the County’s program, insurance checks are issued in a two-party fashion. CHI does not sign off on those checks until the repair work is done. Under the current circumstances many contractors are demanding payment up front so CHI staff will sign off on the checks but also makes the contractors sign an affidavit so they have to complete the work. Planning & Building Committee Page 3 August 26, 2014 Ms. Spradlin explained the formula used fo r the program, which was approved by the Board of Commissioners and currently deals with population vs. total population of all participating communities. Of 61 communities, 53 are in the County’s CDBG program . There is a minimum a community can receive of $5000. Smaller communities such as Clarkston and 10 others like them get $5,000. Once those demographics are taken off the top the formula is redone to figure out what the rest will receive. Communities not in the County’s program either re ceive HUD funding directly or do not participate at all. Every three years all 61 communities are contacted to ask if they would like to participate . Ms. Reith advised that these funds could also pay for code enforcement officers working in target areas. A Home Consortium was formed this past year and that has re -directed money from the state that was used for housing related activities for communities that did not participate with the County back to the County. So now the County can do home improvements in those communities. This consortium has brought another $700,000 -800,000 back to the c ounty. Before this there was no guarantee the state was spending anything in these communities. The Home Improvement Program is designed by federal requirements and is a high risk program. Staff does intake and eligibility processing for loans using HUD criteria. Life circumstances, such as health or job loss can change and if a home owner defaults they are referred to a housing counselor to reassess their budget. If someone is approved for a loan, a lien is put in place against the home. Weipert moved to recommend approval of the attached suggested resolution. Supported by McGillivray. Motion carried unanimously on a roll call vote. 2. FACILITIES MANAGEMENT/PARKS AND RE CREATION COMMISSION – INDEPENDENCE OAKS-WONCH LEASE On behalf of the Parks and Recreation Commission, Facilities Management is requesting authorization to enter into a lease agreement with Ceclia Wonch and Tyler Williams for a 1368 -square foot house, identified as 10275 Sashabaw Road, Clarkston MI 48348 on the grounds of Independence Oaks County Park for a period commencing August 1, 2014 t hrough December 31, 2019. Rent will be as follows: $638.00 per month for August 1, 2014 – December 31, 2015 $650.00 per month for January 1, 2016 – December 31, 2016 $663.00 per month for January 1, 2017 – December 31, 2017 $677.00 per month for January 1, 2018 – December 31, 2018 $690.00 per month for January 1, 2019 – December 31, 2019 Mr. Stencil explained that there are 10 different properties within the 13 parks. The operating policy approved by the Parks Commission determines the rates along with Facilities Management considering the market for rental properties. These leases are developed by Corporation Counsel. These individuals help with security by keeping an eye on and ears open to the property, which has worked out well for the parks system. Square footage is misleading. Employee classifications and market prices are also considered in developing the leases. Dwyer moved to recommend approval of the attached suggested resolution. Supported by Gershenson. Planning & Building Committee Page 4 August 26, 2014 Motion carried unanimously on a roll call vote. 3. FACILITIES MANAGEMENT/PARKS AND RECREATION COMMISSION – WATERFORD OAKS – ROWLAND LEASE On behalf of the Parks and Recreation Commission, Facilities Management is requesting authorization to enter into a lease agreement with Ila Rowland for a 759-square foot house, identified as 2866 Watkins Lake Road, Waterford, MI 48348 on the grounds of Waterford Oaks County Park for a period commencing January 1, 2015 through December 31, 2019 . Rent will be as follows: $776.00 per month for January 1, 2015 – December 31, 2015 $791.00 per month for January 1, 2016 – December 31, 2016 $807.00 per month for January 1, 2017 – December 31, 2017 $823.00 per month for January 1, 2018 – December 31, 2018 $840.00 per month for January 1, 2019 – December 31, 2019 Gosselin moved to recommend approval of the attached suggested resolution. Supported by McGillivray. Motion carried unanimously on a roll call vote. 4. FACILITIES MANAGEMENT/PARKS AND RECREATION COMMISSION – WHITE LAKE OAKS – RATLEDGE LEASE On behalf of the Parks and Recreation Commission, Facilities Management is requesting authorization to enter into a lease agreement with Brian Ratledge for a 600 -square foot house, identified as 1540 Orcha rd Street, White Lake, MI 48386, located on the grounds of White Lake Oaks County Park for a period commencing January 1, 2015 through December 31, 2019. Rent will be as follows: $446.00 per month for January 1, 2015 – December 31, 2015 $455.00 per month for January 1, 2016 – December 31, 2016 $464.00 per month for January 1, 2017 – December 31, 2017 $474.00 per month for January 1, 2018 – December 31, 2018 $483.00 per month for January 1, 2019 – December 31, 2019. Gosselin moved to recommend approval of the attached suggested resolution. Supported by McGillivray Motion carried unanimously on a roll call vote. 5. MR #14169 – BOARD OF COMMISSIONERS – INITIATE PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAM COUNTYWIDE TO ASSIST OAKLAND COUNTY BUSINESSES AND GREEN INVESTMENT The resolution was introduced by Commissioner Woodward to request that the Economic Development and Community Affairs Department enter into discussion with Lean and Green Michigan to explore the creation of a countywide Property Assessed Clean Energy (PACE) District. Commissioner Woodward explained that Michigan Statute created a mechanism to provide commercial enterprises with a creative tool to finance energy efficiency improvements on commercial buildings through Planning & Building Committee Page 5 August 26, 2014 a public/private partnership. This could be a good economic tool for the County to market and make available to all enterprises in the county. Energy upgrades would be leveraged for 10-20 years with a cost savings greater than payback over time. This would also make it more attractive to the financial enterprise that does the lending. This is for people who do not have the capital up front, similar to the CDBG program. Other states have passed similar laws and some Michigan counties have created a program . There are also three Oakland County communities that have created a program. The statute is complex and he would like to open this up to conversation. Mr. Gibb explained that if the County moved forward with this program it would most likely fall to his department to administer. PACE has been around for about five years across the country but there has not been a significant amount of project activity. An an alysis appears that this program would be most suited to the south-end communities. PACE overall is about financing so when you can’t get a regular lender this is another avenue to pursue. There are issues relating to when and how PACE improvements are valued and when they hit the tax rolls or how they encumber the property. Macomb and Wayne Counties have adopted PACE but as of yet there are no projects. Ann Arbor was first to adopt PACE and has completed 5 projects but they are all by the same owner. E DCA was approached several years ago regarding PACE and reached out to the local units and some indicated that they would rather administer such a program locally rather than have it imposed by the County . County administration also believes this program is best suited to the local level. The reason being that the statute requires anyone who would impose PACE financing on a project with existing financing must get consent from the first financer to sign off as an acceptable encumbrance. This may be why there are not a lot of these projects in Michigan , because it is hard to imagine a bank would agree to rules that would subordinate their interest. These issues are raised not as objections but as concerns because there a re complexities on where PACE would fit into the county’s economic development p rocess. Further review can be done on where this is working across the country but again the administration’s recommendation is that it is better suited for the local units and the County can assist if requested. Mr. Gibb stated that there are companies other than Lean and Green Michigan authorized to do this work in Michigan so it should be bid out to find what best fits the county or used as a recommendation to the local units. The Michigan statute app lies only to commercial and industrial property. Funding comes from the private side but there would be some cost for county administration of the program and a structure would be needed with the County Treasurer to administer tax collection and transfer. Commissioner Woodward stated that this program would be no different than Emerging Sectors or Medical Mainstreet which are not imposed on anyone but open to participation and he believes that providing a broad opportunity is the best approach. Other counties have gone through the bid process but have only received a response from Lean and Green. Commissioner Woodward explained that he brought this proposal forward after he was approached by a firm from Royal Oak. Woodward moved to report to recommend app roval of the attached suggested resolution. Supported by Gershenson. Woodward moved to report to amend the resolution to strike the existing NOW THEREFORE BE IT RESOLVED paragraph and insert the following. NOW THEREFORE BE IT RESOLVED that the Oaklan d County Board of Commissioners appoints a study group, made up of two members of the majority party and two members of the minority party, to develop a report on the feasibility of creating a countywide Property Assessed Clean Energy (PACE) District progr am and to submit its report to the Planning and Building Committee in 90 days. Planning & Building Committee Page 6 August 26, 2014 Supported by Gershenson. Motion to report to amend carried unanimously on a roll call vote. Main motion as amended carried unanimously on a roll call vote. Commissioner Gosselin asked that the study group include in its report what it would actually cost the county per year to administer. 6. FACILITIES MANAGEMENT – 2015-2019 CAPITAL IMPROVEMENT PROGRAM - BUILDINGS Facilities Management (FM) is recommending a conceptual 2015 – 2019 Capital Improvement Program (CIP) for Buildings and possible future capital improvement needs totaling $7,022,000 as outlined in the attached report. Mr. Holdsworth stated that the recommendation includes a $1.5 million contribution from the Gen eral Fund each year for five years. This has allowed FM to move up some parking lot and roof programs. At this point in time the County’s General Fund is doing well again and that is why this additional funding was provided but if that goes away, he woul d request considering bonding again. Facilities Management operations, include staff, equipment, grounds, building safety, etc. and are handled under the Facilities Maintenance and Operations Fund which is reimbursed by the General Fund. The CIP handles new projects, most of which are building upgrades. Most future projects are just in the discussion phase. Mr. Holdsworth and Mr. Joss reported that they are working with the administration to come up with a cost estimate for a new Animal Control (AC) bui lding. If this moves forward, the AC basement renovation will be moved out to 2016 and become moot. Sites are being considered in conjunction with the master plan and the ability to use existing roads, sewer lines, etc. The Sheriff for years has lease d storage space and was using a dilapidated pole barn. At one point the property owner went bankrupt. The Sheriff is now using Water Resources Commissioner property so they are looking to consolidate equipment into one structure. The lease was for 3 yea rs with a 2 year extension so, if the AC building project is approved it would be completed before the Sheriff’s lease expires. Commissioner Woodward asked why building security was included in future projects when they are working on the same project now . Mr. Holdsworth and Mr. Joss explained that t he General Fund has set aside $5 million for security enhancements. About a year ago, the Sheriff did a review of security needs and FM has prioritized them as 1-3. Costing for Phase 1 is mostly complete a nd will be taken to the Budget Task Force. Preliminary figures show that Phase 1 will cost $5 million but it will also go through prioritization. This CIP project list was submitted as part of the budget process and other projects come up regularly so i t is a matter of timing and where funding is available and Fiscal Services defines what falls into each category. Commissioner Gosselin asked that as buildings come up FM key in on square footage cost. Commissioner Woodward indicated that he would have Ms. Mitchell email all departments to ask if they are working on any capital projects and that he would still like to be provided with a full picture of all capital projects regardless of how they are being funded. Planning & Building Committee Page 7 August 26, 2014 Dwyer moved to report to the Finance Co mmittee to recommend the 2015 – 2019 Capital Improvement Program – Buildings. Supported by Gosselin. Motion carried on a roll call vote with Gershenson voting no. 7. FACILITIES MANAGEMENT – 2015-2019 CAPITAL IMPROVEMENT PROGRAM - UTILITIES Facilities Management is recommending a conceptual 2015 – 2019 Capital Improvement Program for Utilities and possible future needs totaling $8,045,000 as outlined in the attached report. Dwyer moved to report to the Finance Committee to recommend the 2015 – 2019 Capital Improvement Program - Utilities. Supported by McGillivray. Motion carried on a roll call vote with Gershenson voting no. COMMUNICATIONS OTHER BUSINESS/ADJOURNMENT There being no further business to come before the Commi ttee, the meeting adjourned at 11:08 a.m. ____________________________________ _____________________________________ Helen Hanger, Sr. Committee Coordinator Jim VerPloeg, Administrative Director NOTE: The foregoing minutes are subject to Committee approval.