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HomeMy WebLinkAboutMinutes - 2017.08.03 - 37085 August 3, 2017 Chairperson Middleton called the meeting of the Finance Committee to order at 9:06 a.m. in Committee Room A of the Commissioners' Auditorium Wing, County Service Center in Pontiac, Michigan. COMMITTEE MEMBERS PRESENT Thomas Middleton, Helaine Zack, Christine Long, Shelley Goodman Taub, Wade Fleming, Hugh Crawford, David Woodward, David Bowman COMMITTEE MEMBERS ABSENT WITH NOTICE Eileen Kowall OTHERS PRESENT CIRCUIT COURT Honorable Nanci Grant, Chief Judge Kevin Oeffner, Court Administrator Dave Bilson, Deputy Court Administrator John Cooperrider, Court Business Manager FRIEND OF THE COURT Suzanne Hollyer, Friend of the Court COMMUNITY AND HOME IMPROVEMENT Karry Rieth, Manager Kathy Williams, Supervisor, Housing Counseling Mike Pucher, Compliance Officer COUNTY EXECUTIVE Jerry Poisson, Deputy County Executive Bob Daddow, Deputy County Executive Phil Bertolini, Deputy County Executive COMPLIANCE OFFICE Pam Weipert, Compliance Officer Scott Guzzy, Purchasing Admin. 48th DISTRICT COURT Jim VerPloeg, Court Administrator 52ND DISTRICT COURT – DIV. 1 Alexandra Black, Court Administrator 52ND DISTRICT COURT – DIV. 2 Sharon Rupe, Court Administrator 52nd DISTRICT COURT – DIV. 3 Honorable Julie Nicholson, Chief Judge Brian Henderson, Court Administrator 52ND DISTRICT COURT – DIV. 4 Jill Palulian, Court Administrator ECONOMIC DEVELOPMENT/COMM. AFFAIRS Irene Spanos, Director Dan Hunter, Deputy Director FACILITIES MANAGEMENT Ed Joss, Manager, Facilities Planning & Eng. HEALTH AND HUMAN SERVICES Kathy Forzley, Director Jody Overall, Manager, Children’s Village HUMAN RESOURCES Jordie Kramer, Director Lori Taylor, Deputy Director Silvia Frank, Retirement Director INFORMATION TECHNOLOGY Mike Timm, Director Tammi Shepherd, Chief, Application Services 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 Shelley Goodman Taub Wade Fleming Hugh D. Crawford David Woodward David Bowman TOM MIDDLETON Chairperson EILEEN KOWALL Vice Chairperson HELAINE ZACK Minority Vice Chairperson FINANCE COMMITTEE MINUTES Page 2 August 3, 2017 OTHERS PRESENT, cont’d. MANAGEMENT AND BUDGET Laurie Van Pelt, Director EQUALIZATION Dave Hieber, Equalization Officer FISCAL SERVICES Lynn Sonkiss, Manager Ebru Adoglu-Jones, Supervisor II Katie West, Grant Compliance/Program Coord. Monica Tinsley, Analyst Terri Brockmiller, Analyst LaQuita Lowery, Analyst Stacey Smith, Analyst PROBATE COURT Honorable Linda Hallmark Rebecca Schnelz, Court Administrator Jill Daly, Probate Register PROSECUTOR’S OFFICE Jessica Cooper, Prosecuting Attorney Paul Walton, Chief Assistant Prosecutor PURCHASING Andy Krumwiede, Buyer II SHERIFF’S OFFICE Mike McCabe, Undersheriff Doug Molinar, Captain Chris Wundrach , Captain Jerry Derosia, Detective Sergeant Specialist TREASURER’S OFFICE Ross Gavin, Deputy Treasurer MICHIGAN DHHS (OAKLAND CTY. BRANCH) Tom Scheuer, CSA Director THE OAKLAND PRESS Mark Cavitt, Reporter BOARD OF COMMISSIONERS Chris Ward, Administrative Director Michael Andrews, Senior Analyst Connie Srogi, Analyst Pamela Worthington, Committee Coordinator PLEDGE OF ALLEGIANCE Chairperson Middleton led the Pledge of Allegiance. APPROVAL OF THE MINUTES FROM PREVIOUS MEETING Taub moved approval of the minutes from July 13, 2017, as printed. Supported by Crawford. Motion carried on a voice vote. PRESENTATION OF THE AGENDA Zack moved approval of the agenda, as presented. Supported by Long. Motion carried on a voice vote. PUBLIC COMMENT None. FINANCE COMMITTEE MINUTES Page 3 August 3, 2017 FY 2017/FY 2018/FY 2019 CONTINGENCY REPORT There are no items on today’s agenda that will affect the FY 2017 – FY 2019 Contingency balance of $130,922. The FY 2017 – FY 2019 Capital Outlay – Miscellaneous balance will be decreased by $14,670 with the approved memo for Medical Examiner Equipment Replacement . The General Fund Equity During FY 2017 balance will be reduced by $693,211 with the adoption of Items 1a, 1b, 2, 7, 14 and 19 on today’s agenda. The Contingency Report includes the West Nile Virus Distribution Balances for FY 2017. Taub moved to receive and file the Contingency Report. Supported by Long. Motion carried on a voice vote. COMMUNICATIONS A. County Executive Compliance Office/Purchasing – Contract Exception Report for the August 3, 2017 Finance Committee Meeting B. Local Road Improvement Program Subcommi ttee – Approval of Revised 2017 Pilot Local Road Improvement Program Project Application – City of Southfield C. Sheriff’s Office/Prosecuting Attorney – FY 2018 Narcotics Enforcement Team (NET) Grant Application D. Health and Human Services – Children’s Village Division – 2017/2018 National School Lunch Program Application E. Information Technology 2017/2018 Master Plan Quarterly Status Executive Summary F. Huron-Clinton Metroparks – 2017 Parks and Recreation Property Tax Levy – Correction Long moved to rece ive and file the Communications . Supported by Zack. Motion carried on a voice vote. CONSENT AGENDA 1. a. MR #17221 – BOARD OF COMMISSIONERS – TRI-PARTY ROAD IMPROVEMENT PROGRAM FISCAL YEAR 2017 APPROPRIATION – CHARTER TOWNSHIP OF LYON – RECONSTRUCTION OF NAPIER ROAD INCLUDING A ROUNDABOUT AT NAPIER ROAD AND 10 MILE ROAD – PROJECT NO. 52111 The resolution, which was introduced by Commissioners Phil Weipert and Hugh D. Crawford , authorizes the release of $38,705 (Oakland County’s 1/3 share) in Tri -Party Road Improvement Program funds from the Oakland County Designated Fund Balance for a project that consists of the reconstruction of Napier Road from 9 Mile Road to 10 Mile Road, including the construction of a roundabout at Napier and 10 Mile Road. A copy of the Cost Participation Agreement is included, and a budget amendment of $38,705 is recommended. Any addition al 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. The work is expected to be completed this summer. FINANCE COMMITTEE MINUTES Page 4 August 3, 2017 b. MR #17223 – BOARD OF COMMISSIONERS – TRI-PARTY ROAD IMPROVEMENT PROGRAM FISCAL YEAR 2017 APPROPRIATION – CITY OF NOVI – RECONSTRUCTION OF NAPIER ROAD INCLUDING A ROUNDABOUT AT NAPIER ROAD AND 10 MILE ROAD The resolution, which was introduced by Commissioner s Hugh D. Crawford and Philip Weipert, authorizes the release of $108,938 (Oakland County’s 1/3 share) in Tri -Party Road Improvement Program funds from the Oakland County Designated Fund Balance for a project that consists of the reconstruction of Napier Road from 9 Mile Road to 10 Mile Road including the construction of a roundabout at Napier and 10 Mile Road, as described in Exhibit A. A copy of the Cost Participation Agreement is included, and a budget recommendation of $108,938 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. Construction on this project is expected to begin this summer. 2. MR #17224 – BOARD OF COMMISSIONERS – PILOT LOCAL ROAD IMPROVEMENT PROGRAM FISCAL YEAR 2017 APPROPRIATION – CITY OF SOUTHFIELD – RECONSTRUCTION OF NORTH BOUND NORTHWESTERN HWY SERVICE DRIVE – PROJECT NO. 2017-25 The resolution was introduced by Commissioners Quarles and Jack son to approve the Pilot Local Road Improvement funding in the amount of $109,811, which is Oakland County’s share, for a project in the City of Southfield. The project consists of the reconstruction of Northbound Northwestern Hwy. Service Drive. Crawford moved approval of the attached suggested Fiscal Notes on the Consent Agenda. Supported by Zack. Motion carried unanimously on a roll call vote with Kowall, Fleming and Woodward absent. REGULAR AGENDA 3. MR #17211 – CIRCUIT COURT – FAMILY DIVISION – OAKLAND COUNTY CHILD CARE FUND BUDGET 2017-2018 Pursuant to Public Act 280 of the Public Acts of 1975, Oakland County is required to develop and submit a plan and budget annually for funding foster care services to the Child and Family Services Office of the Bureau of Juvenile Justice, Michigan Department of Health and Human Services. Therefore, the Circuit Court/Family Division is seeking approval of the submission of the 201 7-2018 Oakland County Child Care Fund Budget to the Bureau of Juvenile Justice’s Child Care Fund Unit, Department of Human Services for the State’s Fiscal Year October 1, 201 7 through September 30, 2018. The application reflects $3 7,014,136 in gross expenditure s and $3,000,000 in offsetting revenues, leaving a net expenditure of $3 4,014,136. The Child Care Fund reimburses 50% for all Child Care Fund eligible expenditures of $3 4,014,136, rendering a State reimbursement of $17,007,068 should the State approve the budget and the County expends all funds listed in the application. Taub moved approval of the attached suggested Fiscal Note. Supported by Long. Motion carried unanimously on a roll call vote with Kowall, Fleming and Woodward absent. FINANCE COMMITTEE MINUTES Page 5 August 3, 2017 4. SHERIFF’S OFFICE – 2017 HIGH INTENSITY DRUG TRAFFICKING AREAS (HIDTA) GRANT ACCEPTANCE The Office of National Drug Control Policy (ONDCP) has awarded the Michigan State Police $140,000 for the Oakland County Narcotics Enforcement (NET) initiative as part of the 2017 High Intensity Drug Trafficking Areas (HIDTA) Grant Program. The money is used for training and other operating expenses. Undersheriff McCabe explained that on a yearly basis funds go toward the Oakland County NET initiative. The Sheriff’s Office is seeking approval of a grant in the amount of $140,000 for the period of January 1, 2017 through December 31, 2017. The grant will allow partial funding for overtime reimbursement of NET Investigators in the amount of $106,000. Other funds will cover the cost of training and associated travel costs, estimated at $8,000 and communications services estimated at $26,000. There is no County match required for this grant. Oakland County will issue subrecipient agreements with the local units of government in Oakland County that are part of NET to reimburse partial overtime for investigations. Zack moved approval of the attached suggested Fiscal Note. Supported by Crawford . Motion carried unanimously o n a roll call vote with Kowall, Fleming and Woodward absent . 5. MR #17212 - SHERIFF’S OFFICE – CAMP DEARBORN CONTRACT FOR LAW ENFORCEMENT SERVICES FOR THE 2017 SEASON The City of Dearborn has contracted with the Oakland County Sheriff’s Office for many year s, and the latest three -year contract that was approved via MR #14101 has expired. Sheriff’s Office administration attempted negotiations with the City of Dearborn for a new contract, but since they could not reach a consensus on the number of staff, the City of Dearborn had decided to not renew the contract for policing services at Camp Dearborn. On July 11, 2017, the Public Services Committee approved this resolution to delete positions that were created for the expired contract. The City of Dearborn reconsidered their decision to cancel the contract with the Sheriff’s Office and asked to continue the contract with limited services from July 14, 2017 through September 4, 2017. The Sheriff’s Office has agreed to provide services on an overtime basis fo r weekends during the timeframe requested. As a result, the Human Resources Committee approved a report to the Board with proposed amendments to the resolution as well as an inclusion of a contract for limited patrol services at Camp Dearborn. The Finance Committee was provided with the Human Resources Committee report to amend the resolution and approve the contract for 2017. The Fiscal Note reflects the proposed title change of the resolution, as follows: “MR #17212 – Sheriff’s Office – Deletion of Positions for Camp Dearborn Contract for Law Enforcement Services Camp Dearborn Contract for Law Enforcement Services for the 2017 Season . Taub moved approval of the attached suggested Fiscal Note. Supported by Long. Motion carried unanimously on a roll call vote with Kowall, Fleming and Woodward absent . 6. MR #17213 – SHERIFF’S OFFICE – USE OF FORFEITED FUNDS AND FORENSIC LAB FEE FUNDS The Sheriff’s Office is requesting approval of the use of $17,815 for repairs of the Mine Resistant Ambush Protected Vehicle (MRAP), and $33,973 from the Sheriff’s Office Forensic Lab Fee Account for technology enhancements to the Computer Crimes Equipment . FINANCE COMMITTEE MINUTES Page 6 August 3, 2017 Long moved approval of the attached suggested Fiscal Note. Supported by Taub. Motion carried unanimously on a roll call vote with Kowall, Fleming and Woodward absent. 7. MR #17214 – SHERIFF’S OFFICE – PURCHASE OF VIRTRA USE OF FORCE SIMULATOR TRAINING DEVICE The Sheriff’s Office is requesting approval to purchase a state-of-the-art 300 degree use of force training simulator that would replace the simulated firearms training system that was purchased in 2002. Technology and training has changed dram atically since then, and this new simulator has five High Definition (HD) cameras for multi-directional and interactive training. The estimated cost of the VirTra Simulator is $225,757, which includes $198,757 for the simulator and a four -year extended warranty for $27,000. The warranty includes software upgrades for the four years. This training will also be available to local police departments. Taub moved approval of the attached suggested Fiscal Note . Supported by Crawford. Motion carried unanimously on a roll call vote with Kowall, Fleming and Woodward absent . 8. MR #17215 – SHERIFF’S OFFICE – CONTRACT FOR COURT SECURITY AT THE 43 RD DISTRICT COURT – FERNDALE FOR FISCAL YEARS 2018/2019/2020 The Sheriff’s Office is requesting approval of a contract between the County of Oakland and the 43 rd District Court in Ferndale for court securi ty. The current contract expires on September 30, 2017, and this serves as a renewal of services. The term of the contract is from October 1, 2017 until September 30, 2020. Zack moved approval of the attached suggested Fiscal Note. Supported by Taub. Long moved to amend the BE IT FURTHER RESOLVED paragraph, as follows: BE IT FURTHER RESOLVED to continue four (4) PTNE 1,720 1,000 hrs/yr Court/Park Deputy positions (4030435 -11574, 11575, 11815 & 11816) contingent upon the level of funding associated with this contract. Supported by Taub. Motion to amend carried unanimously on a roll call vote with Kowall, Fleming and Woodward absent. Main motion carried unanimously on a roll call vote with Kowall, Fleming and Woodward absent. 9. MR #17216 – SHERIFF’S OFFICE – CONTRACT FOR COURT SECURITY AT THE 43 RD DISTRICT COURT – HAZEL PARK FOR FISCAL YEAR 2018/2019/2020 The Sheriff’s Office is requesting approval of a contract between the County of Oakland and the 43 rd District Court in Hazel Park for court security. The current contract expires on September 30, 2017, and this contract will serve as a renewal of services. The term of the contract is from October 1, 2017 until September 30, 2020. The current contract expires on September 30, 2017. FINANCE COMMITTEE MINUTES Page 7 August 3, 2017 Zack moved approval of the attached suggested Fiscal Note. Supported by Taub. Motion carried unanimously on a roll call vote with Kowall and Fleming absent. 10. MR #17217 – SHERIFF’S OFFICE – CONTRACT FOR COURT SECURITY AT THE 43 RD DISTRICT COURT – MADISON HEIGHTS FOR FISCAL YEARS 2018/2019/2020 The Sheriff’s Office is requesting approval of a contract between the County of Oakland and the 43 rd District Court in Madison Heights for court security. The current contract expires on September 30, 2017, and this contract will serve as a renewal of services. The term of the contract is from October 1, 2017 until September 30, 2020. Zack moved approval of the attac hed suggested Fiscal Note. Supported by Taub. Motion carried unanimously on a roll call vote with Kowall and Fleming absent. 11. MR #17218 – SHERIFF’S OFFICE – CONTRACT FOR COURT SECURITY AT THE 46 TH DISTRICT COURT – SOUTHFIELD FOR FISCAL YEARS 2018/2019/2 020 The Sheriff’s Office is requesting approval of a contract between the County of Oakland and the 46 th District Court in Southfield for court security. The current contract expires on September 30, 2017, and this contract will serve as a renewal of ser vices. The term of the contract is from October 1, 2017 until September 30, 2020. Taub moved approval of the attached suggested Fiscal Note. Supported by Zack. Motion carried unanimously on a roll call vote with Kowall and Fleming absent. 12. MR #17219 – SHERIFF’S OFFICE – CONTRACT FOR COURT SECURITY AT THE 47 TH DISTRICT COURT – FARMINGTON HILLS FOR FISCAL YEARS 2018/2019/2020 The Sheriff’s Office is requesting approval of a contract between the County of Oakland and the 47 th District Court in Farmington Hills for court security . The current contract expires on September 30, 2017, and this new contract will serve as a renewal of services. The term of the contract is from October 1, 2017 through September 30, 2020. Taub moved approval of the attached suggested Fiscal Note. Supported by Zack. Motion carried unanimously on a roll call vote with Kowall and Fleming absent. 13. MR #17220 – SHERIFF’S OFFICE – CONTRACT FOR COURT SECURITY AT THE 48 TH DISTRICT COURT – BLOOMFIELD HILLS FOR FISCAL YEARS 2018/2019/2020 The Sheriff’s Office is requesting approval of a contract between the County of Oakland and the 48 th District Court in Bloomfield Hills for court security. The current contract expires on September 30, 2017, and this n ew contract will serve as a renewal of services. The term of the contract is from October 1, 2017 until September 30, 2020. Taub moved approval of the attached suggested Fiscal Note. Supported by Zack. Motion carried unanimously on a roll call vote w ith Kowall and Fleming absent. FINANCE COMMITTEE MINUTES Page 8 August 3, 2017 14. MR #17210 – HUMAN RESOURCES DEPARTMENT – COMPENSATION & CLASSIFICATION STUDY PROJECT Per MR #08119, Section VI-A, “The Merit System shall provide the continued maintenance of a formal classification plan and salary schedule with the Personnel Committee being the final County appeal body on classification matters.” The Human Resources Department had solicited for bids for the Compensation and Classification Study project . The project consists of the recommendation of an update to the current point factor job evaluation plan or a new plan for non -represented classifications, which would be determined by the Human Resources Department. They received six (6) bids and chose the top three (3) vendors. After interviewing the top three vendors, the Human Resources Department had chosen Management Advisory Group as the vendor to do the compensation and classification study. Management Advisory Group submitted a bid for $153,750. The Human Resources Department is requesting authorization of estimated costs not to exceed $200,000, which includes a $46,250 contingency . Any amount in the contingency that is not used will be returned to the General Fund. Taub moved approval of the attached suggested Fiscal Note. Supported by Long. Motion carried unanimously on a roll call vote with Kowall and Fleming absent. 15. MR #17209 – DEPARTMENT OF HEALTH AND HUMAN SERVICES/CHILDREN’S VILLAGE – CASE MANAGEMENT SYSTEM REPLACEMENT PROJECT Children’s Village is in need of a new case management system . Bids were solicited and received, and Next Steps software was chosen for the software replacement vendor. The cost of this new software is $151,800, which includes th e first year’s annual subscription fee of $39,900. Funding of $151,800 will be transferred to the Information Technology Fund . The ongoing operating expense for software maintenance of $39,000 annually is available in the Children’s Village budget. Taub moved approval of the attached suggested Fiscal Note. Supported by Crawford. Motion carried unanimously on a roll call vote with Kowall absent. 16. DEPARTMENT OF ECONOMIC DEVELOPMENT & COMMUNITY AFFAIRS – OAKLAND COUNTY’S ACKNOWLEDGEMENT OF A RENAISSANCE ZONE IN THE CITY OF PONTIAC FOR WILLIAMS INTERNATIONAL AND THE FOREGOING OF A PAYMENT IN LIEU OF TAXES (PILOT) IN PONTIAC FOR OAKLAND COUNTY The Department of Economic Development & Community Affairs is requesting approval of a resolution that supports and acknowledges the transfer of a Renaissance Zone from the current Motion Pictures Studio to the new tenants, Williams International , to stay in the State of Michigan. The building in Commerce Townsh ip needed renovations, and Williams International was considering moving to Alabama because of incentives, but they had decided to relocate to the facility in Pontiac, and their plans are to make it a new “state -of-the-art facility”. They will be transferring 504 jobs, and there are plans to add 400 additional jobs in the next few years. Bowman moved approval of the attached suggested Fiscal Note. Supported by Taub. Motion carried unanimously on a roll call vote with Kowall absent. FINANCE COMMITTEE MINUTES Page 9 August 3, 2017 17. DEPARTMENT OF INFORMATION TECHNOLOGY – THIRD QUARTER 2017 DEVELOPMENT APPROPRIATION TRANSFER The Department of Information Technology is requesting approval of the Third Quarter 2017 Appropriation Transfer for development charges during the third quarter, which the Department of Information Technology has determined to be $1,106,670.73 for the General Fund/General Purpose County departments. Direct charges to Special Revenue and Proprietary Fund departments are $696,025.56 and non-County agencies are $31,292.25 for the third quarter of 2017. The schedule provides detailed information of all charges to departments and non -County agencies from Information Technology. Taub moved approval of the attached suggested Resolution. Supported by Fleming. Motion carried unanimously on a roll call vote with Kowall absent. 18. BOARD OF COMMISSIONERS – PAYMENT OF 2018 COUNTY DUES FOR MICHIGAN ASSOCIATION OF COUNTIES (MAC) The Michigan Association of Counties (MAC) 2018 County Dues Notice has been received, and per MR #04298, the Finance Committee evaluates the membership annually prior to funds being released. The amount of the 2018 County Dues is $72,811.73. Taub moved to report to the Management and Budget Department with the recommendation of the release of funds in the amount of $72,811.73 to pay the 2018 County Dues for MAC. Supported by Fleming. Motion carried unanimously on a roll call vote with Kowall and Long absent. 19. BOARD OF COMMISSIONERS – FUNDING SUPPORT FOR THE DR. MARTIN LUTHER KING JR. TASK FORCE, INC. – FREEDOM RIDE 2017 The resolution reflects the authorization to suspend the provisions of Section VII (G) “Sponsorship of Events, Activities or Adjunct Committees” of the Standing Rules of the Board of Commissioners to approve the expenditure of $10,000 for the Dr. Martin Luther King, Jr. Task Force, Inc. Freedom Ride 2017 event. Commissioner Quarles presented this resolution and explained that this is for the Southfield Martin Luther King Jr. Task Force. This non-profit tax exempt community organization is the oldest Martin Luther King group that celebrates Dr. Luther King’s birthday. They hold a number of events annually for social justice to help the community understand diversity and inclusion. This year they are going to reenact the Freedom Ride. They will take about 40 students back to look at a number of the major incidents and major cities where Freedom Rides took place. The event will take place from August 14th through August 21st. Students will visit sites located in Ohio, Kentucky, Tennessee, Georgia and Washington D.C . Commissioner Quarles indicated that this is a one-time only request, and students from other school districts have been invited and will be attending. Commissioner Bowman indicated that he would like to meet s ome of the students that have an opportunity to go on the journey and that perhaps they could come to a full Board meeting to report on their experiences. Zack moved approval of the attached suggested Resolution. Supported by Taub. Motion carried unanimously on a roll call vote with Kowall absent. FINANCE COMMITTEE MINUTES Page 10 August 3, 2017 20. DEPARTMENT OF MANAGEMENT AND BUDGET – COUNTY EXECUTIVE’S RECOMMENDED FY 2018 -2020 BUDGET AND OVERVIEW OF REVENUE AND NON - DEPARTMENTAL BUDGET AND SALARY RECOMMENDATION Ms. Sonkiss gave a brief overview of the County Executive’s Recommended FY 2018 – FY 2020 Triennial Budget. An overview was also present ed by Deputy County Executive Bob Daddow during the July 19, 2017 Board meeting. The budget goal is to maintain financial stability while continuing to maintain and sustain services to Oakland County citizens. She explained that the budget is a never -ending cycle. The Categorical Analysis and Budget Highlights book reflects changes between the various budget years. This year there is a 3% General Employee salary increase recommended for 2018 . The Finance Committee was also provided with the Fiscal Year 2016 Salary Recommendations that was approved by the Human Resources Committee. Ms. Sonkiss explained how to read the budget and gave a short explanation of the budget and amendment processes for the recommended budget. The budget is divided into three fund types, General Fund/General Purpose, Special Revenue Funds and Proprietary Funds. Ms. Sonkiss gave the Commissioners a brief summary of the information contained in the Fiscal Year 2017 – Fiscal Year 2019 Budget and General Appropriations Act Line Item book and the Categorical Analysis and Budget Highlights book, which provides explanations of variances from one year to the next by budget c ategory, such as for salary adjustments. The General Fund makes up 52% of the budget; P roprietary Fund makes up about 41% of the budget , and the Special Revenue makes up about 7% of the budget. The FY 2018 Recommended Budget of $878.4 million reflects a $20.6 million (2.41%) increase from the FY 2017 Amended Budget. Part of this is due to an increase in the General Fund/General Purpose fund of $9.1 million, which includes a 3% general salary increase . In addition, Proprietary Funds reflect an increase of $13.4 million, which is a 3.85% increase from the FY 2017 Amended Budget, and the majority of the increase is due to Water Resources Commissioner related funds for operational and infrastructure items . Special Revenue Funds decreased by $2 million, which is related to the timing of grant awards . FY 2019 recommends a $4 million increase (0.46%) over FY 2018 primarily as a result of a 1% general salary increase, 4% for medical costs and a 1% contingency factor for the compensation study that was recommended by the Human Resources Department. Property taxes represent the largest source of General Fund/General Purpose revenue, which is based on the anticipated Taxable Value for a calendar year, and as part of the budget process County Administration has to project 18 months in advance of the actual levy date. The County has a history of levying below the maximum authorized millage rate. The taxable value amount is multiplied by the assumed millage rate of 4.04, which is below the County’s maximum authorized millage rate of 4.1457. There is an estimated 5% increase in property tax revenue for both FY 2018 and FY 2019. Ms. Sonkiss indicated that the County is anticipated to receive 100% Property Tax Loss reimbursement from the State of Michigan , and it is included in the budget recommendation. Last year the County received 265%, but that is not expected to happen again. The second largest source of General Fund/General Purpose revenue is Charges for Services, which is approximately $110.1 million, which is made up of fees that are charged to other governmental units for things suc h as law enforcement contracts. It also includes fees charged to individuals and/or businesses for things such as marriage licenses, birth certificates and court fines and costs. Intergovernmental revenue, which inc ludes revenue sharing, Child Care Subsidy is approximately $66 million for FY 2018. FINANCE COMMITTEE MINUTES Page 11 August 3, 2017 As far as Expenditures, the Personnel budget makes up about 63% of the County’s total expenditures. There is a section in the budget for Salary Recommendations, and the re were some changes made on August 2nd to the proposed Human Resources Committee report to recommend a 3% salary increase for the County Executive, Prosecuting Attorney, County Clerk, Water Resources Commissioner and the County Treasurer. In addition, th ere was a motion made at the Human Resources Committee to amend the pay for Road Commissioners, raising the Chairperson pay from $15,000 to $17,000 and the other members from $13,000 to $15,000. A copy of the final report that was approved by the Human Re sources Committee was provided to the Committee. There will be a separate Capital Improvement Plan budget presentation by Facilities Management that will take place on August 15th at the Planning and Building Committee meeting, and on August 17th at the Finance Committee meeting. The long term County bud get is balanced through FY 2022. Dave Hieber gave an update of the property tax values in the County. Recession values have been improving, as reflected from 2013 to 2017; however, there is still some progress to be made go ing forward to get back to pre -recession levels. Mr. Hieber provided visual real-life examples of properties in Oakland County and the changes in value of those particular properties over the years. He explained that because of the Headlee Amendment, property taxes are capped until transfers or additions are made to the property. The current estimation is that County tax levels should be back to 2007 levels by 2022. Ms. Sonkiss indicated that they are going to use the Budg et Amendment list again. The current list includes resolutions that were adopted by the Board of Commissioners since the budg et was issued. Resolutions that are adopted prior to the adoption of the budget are placed on the list as amendments and will be considered at the August 31 st meeting. Oakland County’s long-term budget is balanced through FY 20 22, which is just under the 20% equity target. However, Federal and State issues impact on future budgets Fiscal Services provided the Finance Committee me mbers a copy of a document titled, “Challenges Ahead in Balancing the State Budget”. Taub moved to receive and file the Finance Committee Overview of the Oakland County Executive’s Recommended FY 2018 – FY 2020 Triennial Budget as well as the document titled, “Challenges Ahead in Balancing the State Budget.” Supported by Fleming. Motion carried on a voice vote. RECESS at 10:48 a.m. RECONVENED AT 10:55 a.m. BUDGET HEARINGS DISTRICT COURTS Judge Nicholson gave a quick overview of the proposed FY 2018 budget for the District Courts. Case load has been holding steady, except for t he 52nd District Court, Division 3 in Ro chester, where caseloads have been increasing. Judge Nicholson indicated that they have been working toward sharing resources. She gave thanks to Alexandra Black, Court Administrator, District Court, Division 1 in Novi, who has shared resources and staff with the Rochester Division to help with their increase in caseload, and Jordie Kramer, who had assisted her with personnel. Judge Nicholson FINANCE COMMITTEE MINUTES Page 12 August 3, 2017 indicated that with regard to collec tions of costs, the “Cunningham D ecision” came down a few years ago, and that was supposed to sunset, but it has actually be en extended to 2022. The performance report from the State Court Administrator’s Office ranked the 52 nd District Court very high in comparison to other courts in the State in terms of processing and with regard to collections. The 52nd District Court has collected about 89.9% of all costs that had been imposed. Judge Nicholson credited the staff and judges for those collections. As far as challenges, Judge Nicholson indicated that the Michigan Indigent Defense Commission (MIDC) issue would have a tremendous impact on the courts with regard to costs, especially with regard to the 52 nd District Court in Clarkston because extensive modifications would need to be done at that facility to create a private space for attorney-client communication s. CIRCUIT COURT Judge Grant presented the FY 201 8 budget for the Circuit Court. Judge Grant indicated that the Circuit Court does agree with the County Executive’s Budget Recommendations. Judge Grant and Mr. Oeffner addressed questions posed by the Commissioners. PROBATE COURT Judge Hallmark presented the FY 2018 budget for the Probate Court. Judge Hallmark indicated that the Probate Court has been experiencing an upt ick in the docket. Therefore, j udges are starting to look at long-range planning. In 2004, new filings in Probate Court were 6,727. By 2014, there were 8,245. This is as a result of the aging population and more people coming in for guardianships and conservatorships. They are at the beginning stages of reviewing their facilitie s and staff levels going forward. Judge Hallmark indicated that they are starting to see a leveling off at the higher level of cases. Judge Hallmark and Ms. Schnelz addressed questions posed by the Commissioners. PROSECUTING ATTORNEY Prosecuting Attorney Cooper presented the FY 2018 bud get for the Prosecutor’s Office. Ms. Cooper indicated that crime is down in Oakland County, according to what the Federal Bureau of Investigations (FBI) statistics shows over an eight (8) or nine (9) year period . Ms. Cooper spoke about the MIDC problem for defense counsel, and she indicated that if it is implemented, it will cost a lot of money. Ms. Cooper indicated that with regard to the interpretation of the arraignment s being a critical stage, the MIDC issue would increase 19 dockets because there are several judges in District Court, and a Judge could request three prosecuting attorneys for each court . Mr. Walton explained that the effect of the MIDC issue is dependent on how arraignments are defined. The MIDC is pushing to define the arraignment as a critical stage; therefore, it could mean that Prosecuting Attorneys would have to be present, and discovery would need to be provided twice, once to the arraignment defense attorney and once to the appointed defense a ttorney, who may not be the same person. As a result, support staff and legal staff would be involved for things like conveying discovery to the defense attorney within 24 hours. The MIDC issue is contingent upon the outcome of the lawsuit that Oakland C ounty has filed. Mr. Daddow added that there were two items raised by the Prosecutor that the Commissioners need to be aware of. Deputy County Executive Malcolm Brown went to the Monday afternoon meeting of the MIDC, and they refused to hand out any ma terials to the public. They had indicated that they are talking about a cap of $25,000 in renovations per facility. They will not cover architectural fees or engineering fees in connection with the renovations. With regard to the Prosecutor’s Office, right now they will not fund Prosecutor’s increases for staff, etc., that is not FINANCE COMMITTEE MINUTES Page 13 August 3, 2017 directly related to the indigent fund itself. Mr. Walton indicated that they are writing this legislation for essentially smaller counties. Oakland County has 19 different Distr ict Courts; 4 county district courts and all the rest are municipal courts. Mr. Walton indicated that there are a lot of tangential issues tha t are not addressed by the MIDC. Ms. Cooper and Mr. Walton addressed questions posed by the Commissioners. OTHER BUSINESS/ADJOURNMENT Commissioner Taub indicated that she had attended a NAC o conference recently in Columbus, Ohio, and 18,000 people were in attendance. The Chairperson had indicated that the Information Technology presentation by Oakland County, Michigan was a hit at the several-day conference in California. Commissioner Taub asked Mr. Bertolini if the video of that presentation was availa ble for the Commissioners to view. Mr. Bertolini indicated that it was accessible on YouTube, and he would send the link to all the Commissioners with a link to view the video. Commissioner Taub indicated that Oakland County government received a number of awards, and Oakland County was the first to receive two first-place awards, one for Parks and Recreation and one to Andy Meisner, County Treasurer, for a program on homes. Oakland County Information Technology received a second-place award, and Commiss ioner Taub presented the award to Mr. Bertolini. Mr. Bertolini indicated that King County in Seattle, Washington had received the first -place award, and Oakland County is looking at what King County is doing. Commissioner Taub indicated that all County Commissioners in the State of Michigan have be en invited to the White House this month, and five (5) Commissioners from Oakland County, four (4) Commissioners from Macomb County and others from the Upper Peninsula will be in attendance. Jordie Kramer, Director, Human Resources, introduced Sylvia Frank as the new Retirement Director. There being no other business to come before the Committee, the meeting was adjourned at 11:50 a.m. ______________________________________ _________________________________ Pamela L. Worthington, Committee Coordinator Chris Ward, Administrative Director NOTE: The foregoing minutes are subject to Committee approval.