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FUR
[COUMPARKS
May 28, 2009
Oakland County Parks
and Recreation Commission
Oakland County, Michigan
Commissioners:
A meeting has been called of the Oakland County Parks and Recreation Commission as
follows:
PLACE ............................. Administration Office
2800 Watkins Lake Road
Waterford, MI 48328
TIME .............................. Wednesday, June 3, 2009
9:00 a.m.
PURPOSE .......................... Regular Meeting
This meeting has been called in accordance with the authorization of Chairman Pecky D.
Lewis, Jr. of the Oakland County Parks and Recreation.
Sincerely,
Daniel J. Stencil
Executive Officer
Pecky D. Lewis, Jr.
Chairman
Richard Skarritt
Vice Chairman Next Meeting:
J. David VanderVeen
Secretary
Tim Burns
Gerald A. Fisher
Robert Kostin
Christine Long
John P. McCulloch
Charles Palmer
Scott
Daniel J. Stencil
Executive Officer
Wednesday, June 17, 2009 at the Oakland County Parks and
Recreation Commission Administration Office
D:\$Data\My documents\COMMIS SION\agendaltr. doe
0 ur mission is to provide recreational, leisure and learning experiences that enhance quality of life.
Oakland County Parks and Recreation Commission
2800 Watkins Lake Road
Waterford, MI 48328
June 3, 2009
Agenda
Action Required
Presenter/Phone #
1.
Call Meeting to Order 9:00 a.m.
P. Lewis / 248.646.5917
Pledge of Allegiance
2.
Roll Call
3.
Public Comments
Commissioner Introduction: Gerald A. Fisher
P. Lewis/D.Stencil/248.858.4699
Staff Introduction: Vincent Standiford
S. Mackey/ 248.858.4636
4.
Commission Meeting Minutes for May 6, 2009
Approval
S. Kici/ 248.858.4603
5.
Internal Service & Department Funds Payment Register FM 07, FY 2009 and
Approval
S. Cox/ 248.858.4612
Voucher Payment Register FM 07, FY 2009 for period ending 4/30/09
6.
Combined Statement of Operations FM 07, FY 2009 for month ending 4/30/09
Approval
S. Cox
7.
Activity Report (May, FM 08, FY 2009)
Informational
L. Gee/ 248.343.3165/ J. Dunleavy/ 248.858.4647
8.
Presentation: 2008 Audit Report for Oak Management
Informational
B. Menghini/ 248.858.4671/Y. Thrush
9.
Parks Access Permit Policy
Approval
D. Stencil/ P. Castonia /S. Mackey
10.
Waterford Oaks Barrier Free Playground Construction Project
Approval
M. Donnellon/ 248.858.4623
11.
Springfield Oaks Campground Improvements Update
Informational
M. Donnellon
12.
Strategic Planning Update
Informational
M. Donnellon
13.
Old Business
14.
New Business
15.
Executive Officer's Report
Informational
D. Stencil
Next Meeting: Wednesday, June 17, at Administration Office
Commissioner Introduction
Gerald A. Fisher of Clarkston has been selected as the 1 Ott' member of the Parks
and Recreation Commission. He will fill the remainder of a three-year term previously
held by Gregory Jamian serving as a citizen board member.
Having represented more than 40 cities, villages and townships in and around
Oakland County for many years, Mr. Fisher is now a Professor of Law at the Thomas M.
Cooley Law School, Auburn Hills Campus, teaching Property Law, Secured
Transactions, Zoning & Land Use Law, and State and Local Government Law.
Additionally, he is on the Board of Directors for the Land Information Access
Association, a public service, non-profit statewide organization that promotes education
and cooperation within communities. Mr. Fisher is involved with the North Oakland
Headwaters Land Conservancy as an ongoing pro bono legal advisor and former board
member. He is also a member of the Council and past Chair of the Public Corporation
Section of the State Bar of Michigan, a group consisting of 700 lawyers who provide
legal services relating to Michigan's cities, villages, townships and counties.
Mr. Fisher places a very high value on physical fitness, and hikes, does yoga,
golfs and has also played platform tennis at Waterford Oaks County Park for years.
Staff Introduction
Vincent Standiford is an intern working in the Organizational and Business
Development unit this summer. He will be supporting efforts to increase sponsorship
sales.
Vincent attends Central Michigan University and will graduate December 2009.
He is working toward a Bachelor of Applied Arts degree with a major in
Entrepreneurship and a minor in Professional Sales. He is a member of academic and
social fraternities on campus and enjoys playing golf on weekends.
OAKLAND COUNTY PARKS AND RECREATION COMMISSION MEETING
May 6, 2009
Chairman Lewis called the meeting to order at 9 a.m. in the commission room of the Parks Commission's
administration office.
COMMISSION MEMBERS PRESENT:
Chairman Pecky D. Lewis, Jr., Vice Chairman Richard Skarritt, Secretary J. David VanderVeen, Tim
Burns, Robert Kostin, Christine Long, John McCulloch, Charles Palmer, John Scott
ALSO PRESENT:
Parks and Recreation
Oakland County Corporation Counsel
Oakland County Fair Association
PUBLIC COMMENTS:
There were no comments or questions.
APPROVAL OF MINUTES:
Daniel Stencil, Executive Officer
Sue Wells, Manager — Parks & Rec. Operations
Mike Donnellon, Chief -Parks Fac., Maint. & Ops.
Terry Fields, Chief - Recreation Programs & Services
Desiree Stanfield, Supervisor - Communications
Phil Castonia, Business Development Rep.
Stephanie Mackey, Business Development Rep.
Melissa Prowse, Business Development Rep.
Jim Dunleavy, Chief -Parks Maint. & Ops. North
Larry Gee, Chief -Parks Maint. & Ops. South
Sheila Cox, Capital Improvement Coordinator
Karen Kohn, Supervisor -Administrative Services
Jody Hall, Assistant Corporation Counsel
LC Scramlin, General Manager
Moved by Mr. Palmer, supported by Mr. Skarritt to approve the minutes of the regular
meetings of April 8 and April 15, 2009, as written.
AYES: Kostin, Lewis, McCulloch, Palmer, Scott, Skarritt (6)
NAYS: (0)
Motion carried on a voice vote.
APPROVAL OF PAYMENTS:
Moved by Mr. Scott, supported by Mr. Kostin to approve the Internal Service & Department
Funds Payment Register for March, 2009 (FM 6, FY2009), the Oak Management, Inc. Credit
for Services Rendered Register for January, February and March, 2009 (FM 4, 5, & 6, 2009)
and the Payment Register for the Voucher Report Period for March, 2009 (FM 6, FY2009).
AYES: Kostin, Lewis, McCulloch, Palmer, Scott, Skarritt (6)
NAYS: (0)
Motion carried on a voice vote.
COMBINED STATEMENT OF OPERATIONS:
4-1
(Commission Meeting, May 6, 2009)
Moved by Mr. Palmer, supported by Mr. Skarritt, to approve the Combined Statement of
Operations for the month ending March, 2009 (FM 6, FY2009).
AYES: Kostin, Lewis, McCulloch, Palmer, Scott, Skarritt (6)
NAYS: (0)
Motion carried on a voice vote.
CAPITAL IMPROVEMENT PROGRAM BUDGET:
Moved by Mr. Kostin, supported by Mr. Scott to approve the Capital Improvement Program Budget
Report for the month ending March 2009 (FM 6, FY2009).
AYES: Kostin, Lewis, McCulloch, Palmer, Scott, Skarritt (6)
NAYS: (0)
Motion carried on a voice vote.
ACTIVITY REPORT:
The Activity Report for the month of April 2009 (FM 7, FY2009) was accepted as filed.
ADDISON OAKS ROOF REPLACEMENT:
Moved by Mr. Skarritt, supported by Mr. Palmer to award the contract for roof replacement of the
maintenance building and park residence building at Addison Oaks to the lowest qualified bidder,
Bright Side Roofing, for Base Bids 1, 1A, 2 and 2A in the amount of $40,763 plus a 5% contingency of
$2,038, for a total project amount of $42,801.
AYES: Kostin, Lewis, Long, McCulloch, Palmer, Scott, Skarritt, VanderVeen (8)
NAYS: (0)
Motion carried on a voice vote.
WATERFORD OAKS BARRIER -FREE PLAYGROUND:
Commission directed staff to meet with Purchasing and provide additional information on contractors'
credentials prior to awarding this construction contract. Commissioners Palmer and McCulloch agreed to
work with staff to interview the two lowest bidders and bring back a recommendation for this contract at the
June 3 meeting.
RED OAKS DOG PARK CONSTRUCTION:
Moved by Mr. Skarritt, supported by Mr. Burns to approve the change order to the existing Oakland
County Water Resources Commission -Contract 6b with Six-S Construction for the paved parking lot,
fencing, gravel paths, site work, pavilion and water fountain at the Red Oaks Dog Park in the amount
of $323,939.55, plus a 5% contingency of $16,201, for a total project amount of $340,140.55.
AYES: Burns, Kostin, Lewis, Long, McCulloch, Palmer, Scott, Skarritt, VanderVeen (9)
NAYS: (0)
4-2
(Commission Meeting, May 6, 2009)
Motion carried on a voice vote.
RED OAKS WELL UPDATE:
The well drilling operation located no aquifer substantial enough to produce the volume of water necessary for
a well. Other options will be explored, including:
• Drilling another well
• Creating water hazards that could be used for irrigation during dry summer months
• Work with City of Madison Heights to eliminate sewer costs from water bill
STRATEGIC PLAN UPDATE:
Phil Castonia, Business Development Representative, provided an update to the Commission on the status of
the Strategic Master Plan, noting that Phase II work groups will launch on May 7, 2009.
PRICING, PARTNERSHIP AND SPONSORSHIP POLICIES:
Moved by Mr. McCulloch, supported by Mr. Palmer to approve the Pricing, Partnership and
Sponsorship policies with the following changes:
Pricing:
Page 2-7 "Oakland County Parks and Recreation Commission should consider implementing
differential pricing strategies that focus on maximizing the capacity of use of recreation facilities
and programs may be based on the following pricing alternatives such as:"
Partnership:
Page 13-4 "Each partner will be managed on an individual relationship basis and track
investment costs accordingly;"
Page 13-5 "Each partner will focus on meeting a balance of equity as established in the planning
session. Each partner will demonstrate to the other the method each will use to track costs and
any revenue earned, and how it will be reported on a monthly basis;"
Sponsorship:
Page 14-6 F. Criteria "The Executive Officer and Sponsorship and Partnership Team may use,
but are not limited to, the following guidelines when evaluating a corporate sponsorship
proposal:"
Page 14-7 "The corporation's effort of responsible environmental or community stewardship."
AYES: Burns, Kostin, Lewis, Long, McCulloch, Palmer, Scott, Skarritt, VanderVeen (9)
NAYS: (0)
Motion carried on a voice vote.
CLOSED SESSION:
Moved by Mr. McCulloch, supported by Mr. VanderVeen to adjourn to Closed Session for the
purpose of discussing proposed land acquisitions.
ROLL CALL VOTE:
AYES: Burns, Kostin, Lewis, Long, McCulloch, Palmer, Scott, Skarritt, VanderVeen (9)
4-3
(Commission Meeting, May 6, 2009)
NAYS: (0)
A sufficient majority having voted, the motion carried.
The meeting was adjourned to Closed Session at 10:28 a.m.
The meeting resumed in Open Session at 11:24 a.m.
NEW BUSINESS:
None.
OLD BUSINESS:
None.
EXECUTIVE OFFICER'S REPORT:
In addition to the Executive Officer's report filed in the agenda, the following was also noted:
--The Volunteer Agreement was discussed. Staff was directed to obtain an approximate cost for labor
provided by our volunteers to quantify the use of volunteers.
--Bill Bullard, Chairman of the Oakland County Board of Commissioners, has withdrawn his resolution
regarding the distribution of the Oakland County Parks courtesy passes. The sub -committee will continue to
meet to develop a comprehensive policy to address this issue.
--The Slidewinder waterslide at Waterford Oaks Waterpark is now 28 years old and staff is experiencing
service and parts issue. Staff will continue to work with the engineer to come up with an operational plan for
2009.
--The Oakland County Sheriff's Office has contacted staff with a proposal to share our parks sergeant with
Sylvan Lake and Keego Harbor in a cost -savings effort. Staff will provide additional information as it becomes
available.
The meeting adjourned to the FY 2010 Budget Work Session at 11:50 a.m.
BUDGET WORK SESSION:
The proposed revenue budget is $23,316,940; down .9% over the estimated actual budget for FY 2009. Of
this amount, $8,890,640 comes from fees and charges. The remaining balance of $14,426,300 will come
from the one -quarter millage income ($14,109,000), investments ($300,000) and other income ($17,300).
The proposed operating budget is $27,167,661; 10.4% increase over the estimated actual budget for FY 2009.
The 10.4% increase includes the re -opening of Red Oaks Golf Course, currently closed for the 2009 season
for a major Oakland County Water Resources Commission drain project.
In 2010, a full staff, as outlined in the 2009 reorganization plan, should be on board. Staff is needed to support
the initiatives of the Strategic Master Plan. Staff salary and fringe benefits total $11,788,324 or 43.4% of the
total expense budget.
Other contributing factors include development of four park master plans, a millage awareness initiative, the
Information Technology Master Plan operational costs, design fees for existing fixed asset renovations,
building and grounds major maintenance projects postponed from 2009, and additional maintenance needed
to meet visitor expectations for well -kept facilities.
4-4
(Commission Meeting, May 6, 2009)
Capital Improvements planned total $2,350,000 and include the final payment of $550,000 to the Oakland
County Building Authority for the Lyon Oaks bond and $1.8 million for year two of the three-year Information
Technology Master Plan.
Proposed fees and charges are based on historical practices. However, staff will propose a cost recovery
policy on which fees will be based. Fees may change during the budget cycle in accordance with the
commission policy adopted earlier in the meeting for pricing services, program and facilities.
The proposed FY 2010 Operating Budget and Capital Improvement Programs Budget will be available for
review for 30 days as required, and will be placed on the agenda for the June 17, 2009 commission meeting
for approval.
The Budget Work Session concluded at 12:20 p.m.
The next Commission meeting will be at 9 a.m. on Wednesday, June 3, 2009 in the commission room of the
Parks Commission's administration office.
J. David VanderVeen, Secretary Suzanne L. Kici, Recording Secretary
4-5
OAKLAND COUNTY PARKS AND RECREATION COMMISSION
PAYMENT APPROVAL SUMMARY
FOR MEETING OF:
June 3, 2009
*INTERNAL SERVICE & DEPARTMENT FUNDS PAYMENT REGISTER:
April (FM7, 2009)
*PAYMENT REGISTER:
Voucher Report Period, April (FM7, 2009)
TOTAL
$754,088.14
723,789.89
$1,477,878.03
*BACKUP INFORMATION IS AVAILABLE FOR REVIEW.
5-1
OAKLAND COUNTY PARKS AND RECREATION COMMISSION
COMBINED STATEMENT OF OPERATIONS
FM 7 FY 2009
(FOR MONTH ENDING 4/30/09)
2009
YEAR TO
(OVER),
% OF
REVENUE
BUDGET
DATE
UNDER BUDGET
BUDGET
ADMINISTRATIVE SERVICES: Millage Tax
$15,031,000.00
$14,609,961.56
$421,038.44
97.2%
Other
309,300.00
243,157.15
66,142.85
78.6%
GLEN OAKS GOLF COURSE
1,083,600.00
335,316.16
748,283.84
30.9%
LYON OAKS GOLF COURSE
1,234,500.00
228,039.40
1,006,460.60
18.5%
RED OAKS GOLF COURSE
55,960.00
24,073.35
31,886.65
43.0%
SPRINGFIELD OAKS GOLF COURSE
854,467.00
194,153.21
660,313.79
22.7%
WHITE LAKE OAKS GOLF COURSE
923,250.00
206,105.77
717,144.23
22.3%
INDEPENDENCE OAKS NATURE CENTER
42,400.00
15,405.17
26,994.83
36.3%
ADDISON OAKS
418,890.00
74,641.14
344,248.86
17.8%
ADDISON OAKS CONFERENCE CENTER
135,000.00
46,942.14
88,057.86
34.8%
GROVELAND OAKS
697,400.00
31,785.21
665,614.79
4.6%
HIGHLAND OAKS
1,700.00
290.00
1,410.00
0.0%
INDEPENDENCE OAKS
328,100.00
93,552.27
234,547.73
28.5%
LYON OAKS
70,000.00
37,873.50
32,126.50
54.1%
ORION OAKS
106,000.00
52,756.38
53,243.62
49.8%
ROSE OAKS
1,700.00
519.00
1,181.00
30.5%
SPRINGFIELD OAKS ACTIVITY CENTER/PARK
17,100.00
6,569.57
10,530.43
38.4%
WATERFORD OAKS ACTIVITY CENTER/PARK
42,744.00
19,728.51
23,015.49
46.2%
RECREATION PROGRAMS & SERVICES
27,400.00
5,657.00
21,743.00
20.6%
CATALPA OAKS
6,000.00
0.00
6,000.00
0.0%
MOBILE RECREATION & SPECIAL EVENTS
349,150.00
122,760.06
226,389.94
35.2%
RED OAKS WATERPARK
839,500.00
2,397.00
837,103.00
0.3%
WATERFORD OAKS BMX COMPLEX
17,500.00
1,243.00
16,257.00
7.1%
WATERFORD OAKS TOBOGGAN COMPLEX
121,400.00
113,022.25
8,377.75
93.1%
WATERFORD OAKS WATERPARK
815,600.00
1,812.00
813,788.00
0.2%
TOTAL REVENUE
$23,529,661.00
$16,467,760.80
7,061,900.20
70.0%
OPERATING EXPENSES
ADMINISTRATIVE SERVICES
$4,427,572.00
$2,014,179.27
$2,413,392.73
45.5%
FISCAL SERVICES ADMINISTRATION
0.00
52,538.07
(52,538.07)
NA
FISCAL SERVICES PARKS & REC
377,445.00
123,484.51
253,960.49
NA
GLEN OAKS GOLF COURSE
1,214,130.00
538,638.03
675,491.97
44.4%
LYON OAKS GOLF COURSE
2,143,137.00
936,998.75
1,206,138.25
43.7%
RED OAKS GOLF COURSE
551,394.00
213,390.73
338,003.27
38.7%
SPRINGFIELD OAKS GOLF COURSE
929,468.00
373,279.38
556,188.62
40.2%
WHITE LAKE OAKS GOLF COURSE
1,030,715.00
464,086.74
566,628.26
45.0%
INDEPENDENCE OAKS NATURE CENTER
431,896.00
221,050.99
210,845.01
51.2%
ADDISON OAKS
1,524,892.00
546,732.14
978,159.86
35.9%
ADDISON OAKS CONFERENCE CENTER
326,593.00
97,457,02
229,135.98
29.8%
GROVELAND OAKS
1,753,361.00
424,513.58
1,328,847.42
24.2%
HIGHLAND OAKS
71,312.00
9,455.81
61,856.19
13.3%
INDEPENDENCE OAKS
1,280,845.00
524,275.34
756,569.66
40.9%
LYON OAKS
428,379.00
167,646.05
260,732.95
39.1%
ORION OAKS
165,835.00
60,057.04
105,777.96
36.2%
ROSE OAKS
55,111.00
10,436.32
44,674.68
18.9%
SPRINGFIELD OAKS ACTIVITY CENTER/PARK
397,735.00
162,992.68
234,742.32
41.0%
WATERFORD OAKS ACTIVITY CENTER/PARK
615,484.00
252,197.18
363,286.82
41.0%
RECREATION PROGRAMS & SERVICES
608,957.00
301,735.00
307,222.00
49.5%
CATALPA OAKS
68,328.00
6,557.54
61,770.46
9.6%
MOBILE RECREATION & SPECIAL EVENTS
629,401.00
251,297.35
378,103.65
39.9%
RED OAKS WATERPARK
1,609,381.00
327,838.45
1,281,542.55
20.4%
WATERFORD OAKS BMX COMPLEX
45,085.00
10,690.23
34,394.77
23.7%
WATERFORD OAKS TOBOGGAN COMPLEX
343,003.00
276,942.61
66,060.39
80.7%
WATERFORD OAKS WATERPARK
1,160,579.00
288,016.96
872,562.04
24.8%
FACILITIES & MAINTENANCE
1,610,606.00
699,014.90
911,591.10
43.4%
CONTINGENCY/INTERNAL SERVICE CHARGES*
801,490.00
78,119.88
723,370,12
N/A
$24,602,134.00
$9,433,622.55
15,168,511.45
38.3%
REVENUE OVER/(UNDER) EXPENSES
($1,072,473.00)
$7,034,138.25
($8,106,611.25)
2009
2008
ACTUAL REVENUE TO DATE:
70.0%
70.5%
BUDGET BALANCE:
30.0%
29.5%
ACTUAL EXPENSE TO DATE:
38.3%
41.7%
BUDGET BALANCE:
61.7%
58.3%
*CONTINGENCY YTD FIGURE: INTERNAL SERVICE FUNDS PAYMENTS IN TRANSIT.
(Page 1 of 3) 6-1
OAKLAND COUNTY PARKS AND RECREATION COMMISSION
COMBINED STATEMENT OF OPERATIONS
FM 7, FY 2009
(FOR MONTH ENDING 4/30/09)
CONTINGENCY: BUDGET AMENDMENTS
$98,510 to Springfield Oaks Golf Course -MDEQ Refined Petroleum Fund Reimbursement Program (OCPRC-Dec./Posted Mar.)
CONTINGENCY: PENDING
OTHER: BUDGET AMENDMENTS
Salaries & Fringe Benefits Adjustments between budget units because of department reorganization (OCPRC-Oct./Posted Nov.)
$43,207 Contibutions Operating Revenue and $141,717 Grounds Maintenance Expense increase for Springfield Oaks Golf Course - MDE
Program (OCPRC-Dec./Posted Mar.)
OTHER: PENDING
(Page 2 of 3) 6-2
OAKLAND COUNTY PARKS AND RECREATION COMMISSION
COMBINED STATEMENT OF OPERATIONS
REVENUE AND EXPENSE COMPARISON
FM 7, FY 2009
(FOR MONTH ENDING 4/30/09)
PARK
ADMINISTRATIVE SERVICES:
ADMINISTRATIVE SERVICES
FISCAL SERVICES ADMINISTRATION
FISCAL SERVICES PARKS & REC
ADMINISTRATIVE SERVICES SUB -TOTAL
GOLF:
GLEN OAKS GOLF COURSE
LYON OAKS GOLF COURSE
RED OAKS GOLF COURSE
SPRINGFIELD OAKS GOLF COURSE
WHITE LAKE OAKS GOLF COURSE
GOLF SUB -TOTAL
NATURE:
INDEPENDENCE OAKS NATURE CENTER
NATURE SUB -TOTAL
PARKS:
ADDISON OAKS
ADDISON OAKS CONFERENCE CENTER
GROVELAND OAKS
HIGHLAND OAKS
INDEPENDENCE OAKS
LYON OAKS
ORION OAKS
ROSE OAKS
SPRINGFIELD OAKS ACTIVITY CENTER/PARK
WATERFORD OAKS ACTIVITY CENTER/PARK
PARKS SUB -TOTAL
RECREATION:
RECREATION PROGRAMS & SERVICES
CATALPA OAKS
MOBILE RECREATION & SPECIAL EVENTS
RED OAKS WATERPARK
WATERFORD OAKS BMX COMPLEX
WATERFORD OAKS TOBOGGAN COMPLEX
WATERFORD OAKS WATERPARK
RECREATION SUB -TOTAL
FACILITIES & MAINTENANCE:
FACILITIES & MAINTENANCE
FACILITIES & MAINTENANCE SUB -TOTAL
CONTINGENCY/INTERNAL SERVICE CHARGES'
TOTAL
YEAR TO DATE
REVENUE
$14,853,118.71
0.00
0.00
14,853,118.71
335,316.16
228,039.40
24,073.35
194,153.21
206,105.77
987,687.89
YEAR TO DATE REVENUE OVER
EXPENSE (UNDER) EXP.
$2,014,179.27
52,538.07
123,484.51
2,190,201.85
538,638.03
936,998.75
213,390.73
373,279.38
464,086.74
2,526,393.63
$12,838,939.44
(52,538.07)
(123,484.51)
12,662,916.86
(203,321.87)
(708,959.35)
(189,317.38)
(179,126.17)
(257,980.97)
(1,538,705.74)
15,405.17 221,050.99 (205,645.82)
15,405.17 221,050.99 (205,645,82)
74,641.14
46,942.14
31, 785.21
290.00
93,552.27
37,873,50
52,756.38
519.00
6,569.57
19, 728.51
364,657.72
5,657.00
0.00
122,760.06
2,397.00
1,243.00
113,022.25
1,812.00
246.891.31
546,732.14
97,457.02
424,513.58
9,455.81
524,275.34
167,646.05
60,057.04
10,436.32
162,992.68
252,197.18
2,255,763.16
301,735.00
6,557.54
251,297.35
327,838.45
10,690.23
276,942.61
288,016.96
1,463,078.14
(472,091.00)
(50,514.88)
(392,728.37)
(9,165.81)
(430,723.07)
(129,772.55)
(7,300.66)
(9,917.32)
(156,423.11)
(232,468.67)
(1,891,105.44)
(296,078.00)
(6,557.54)
(128,537.29)
(325,441.45)
(9,447.23)
(163,920.36)
(286,204.96)
(1,216,186.83)
0.00 699,014,90 (699,014.90)
0.00 699,014.90 (699,014,90)
0.00
$16,467,760.80
78,119.88
$9,433,622.55
`CONTINGENCY YTD FIGURE: INTERNAL SERVICE FUNDS PAYMENTS IN TRANSIT.
(78,119.88)
$7,034,138.25
(Page 3 of 3) 6-3
Item # 7
May Activity Report
Due to the end of the month being Sunday, May 31, the activity report
will be distributed at the meeting.
7-1
08-09
ACTIVITY REPORT
MAY, 2009 (FM08, FY2009)
* Not included in program totals - only in combined totals.
In-house events are counted in facility totals.
ADDISON OAKS PARK
Campers
Day Use
Day Campers
*ADDISON OAKS CONFERENCE CENTER
CATALPA OAKS PARK
Day Use
GROVELAND OAKS PARK
Campers
Day Use
Day Campers
HIGHLAND OAKS PARK
Day Use
INDEPENDENCE OAKS
Day Use
Day Campers
Overnight Youth Group Campers
LYON OAKS
Day Use
Dog Park
ORION OAKS PARK
Day Use
Dog Park
ROSE OAKS PARK
Day Use
SPRINGFIELD OAKS ACTIVITY CENTER
Day Use
4-H Fair
*Banquet Facilities
WATERFORD OAKS
Activity Center - non banquet
*Banquet Facilities - Activity Center
Day Use
TOTAL CAMPERS
TOTAL DAY USE
TOTAL DAY CAMPERS
TOTAL OVERNIGHT YOUTH GROUP CAMPERS
TOTAL DOG PARK
TOTAL 4-H FAIR
TOTAL ACTIVITY CENTER -NON BANQUET
ACTIVITY REPORT.As. MAY09
r.:JrAKLAND
VF ' :: ►
PARTICIPANTS (MONTH) PARTICIPANTS (YTD)
FMO8,FY08F
FMO8, FY09 FY2008
FY2009
6,578
6,314
13,546
12,606
3,220
2,551
8,851
6,513
0
0
0
0
5,056
4,914
22,969
21,567
4,225
4,520
10,461
18,947
11,476
11,272
11,476
11,272
2,356
2,013
2,356
2,013
149
0
149
0
426
791
1,572
4,116
25,906
24,666
113,742
111,040
0
0
263
0
0
384
756
393
900
777
4,582
4,661
5,102
4,403
33,969
34,001
2,234
2,500
16,416
16,864
5,470
7,467
42,993
41,515
652
256
4,745
3,116
1,462
1,413
5,004
5,894
0
0
0
0
3,702
4,394
21,734
23,381
838
965
4,449
4,473
10
0
2,310
1,007
2,590
1,021
1 7,824
5,726
18,054
17,586
25,022
23,878
43,971
40,508
175,553
178,890
149
0
412
0
0
384
756
393
10,572
11,870
76,962
75,516
0
0
0
0
838
965
4,449
4,473
ACTIVITY REPORT r.��JAKLAND
MAY, 2009 (FM08, FY2009) �.iI ► ' ::
GOLF COURSES
* Not included in program totals - only in combined totals. PARTICIPANTS (MONTH) F PARTICIPANTS (YTD)
In-house events are counted in facility totals. I FM08,FY08
FM08,FY09 I FY2008
FY2009
GLEN OAKS
Rounds Played - 9 Holes
4,992
5,909
9,108
9,877
Rounds Played - 18 Holes
1,151
1,875
2,680
3,682
*Banquet Facilities
5,637
4,001
28,282
23,978
**Grill Room (**Not included in totals)
3,198
4,442
4,948
6,121
LYON OAKS
Rounds Played - 9 Holes
1,272
1,063
2,139
1,867
Rounds Played - 18 Holes
2,273
3,319
5,241
6,420
Driving range
1,987
2,345
4,413
4,462
*Banquet Facilities
1,667
2,454
9,862
11,531
**Grill Room (**Not included in totals)
2,717
2,697
5,479
6,860
RED OAKS
Rounds Played - 9 Holes (Closed for 09 Season)
3,491
0
7,260
1,523
SPRINGFIELD OAKS
Rounds Played - 9 Holes
4,184
2,483
7,478
3,677
Rounds Played - 18 Holes
1,932
2,523
5,237
5,130
**Grill Room (**Not included in totals)
3,161
3,725
5,987
5,200
WHITE LAKE OAKS
Rounds Played - 9 Holes
4,230
5,038
6,692
7,978
Rounds Played - 18 Holes
958
1,637
2,280
3,217
*Banquet Facilities
2,214
2,595
11,190
11,805
**Grill Room (**Not included in totals)
3,377
2,307
5,589
3,940
TOTAL ROUNDS PLAYED - 9 HOLES
18,169
14,493
32,677
24,922
TOTAL ROUNDS PLAYED -18 HOLES
6,314
9,354
15,438
18,449
TOTAL DRIVING RANGE
1,987
2,345
4,413
4,462
08-09 ACTIVITY REPORT.As, MAY09 2 of 4
ACTIVITY REPORT r.:JrAKLAND
MAY, 2009 (FM08, FY2009)���� ::7►�
RECREATION,.
" Not included in program totals - only in combined totals. PARTICIPANTS (MONTH) PARTICIPANTS (YTD)
In-house events are counted in facility totals. FM08,FY08
FM08,FY09 FY2008
FY2009
MOBILE RECREATION
Bleachers
5
600
8
605
Bouncers
7,765
6,900
#REF!
#REF!
Bus
1,755
2,610
8,670
10,305
Climbing Wall/Tower
1,100
2,610
3,520
4,110
Dunk Tank (No longer rent)
2,796
0
#REF!
#REF!
Inline Skate Mobile/Hockey Mobile (No longer rent)
0
0
205
0
Puppet
1,190
1,360
1,190
1,700
Show Mobile
35
29
48
57
Adventure Sport Mobile
120
440
440
1,440
Tents (No longer rent)
22
0
#REF!
#REF!
Camps
0
0
0
0
Miscellaneous -Obstacle Course
1,435
410
1,845
414
WATERFORD OAKS BMX
5,181
835
5,181
1 835
WATERFORD OAKS COURT GAMES COMPLEX
190
186
1,243
1,618
WATERFORD OAKS FRIDGE
0
0
22,531
20,634
WATERFORD OAKS LOOKOUT LODGE
365
382
1,844
1,686
WATERFORD OAKS WATERPARK
959
1,500
959
1,500
RED OAKS WATERPARK
1,599
1,900
1,599
1,900
THERAPEUTIC EVENTS
359
210
5,212
3,438
SENIOR EVENTS
1,862
0
2,280
0
TOTAL MOBILE RECREATION VISITS
1 16,223
1 14,959
1 #REFI
#REFI
TOTAL FACILITIES AND SPECIAL EVENTS
10,515
5,0131
40,849
31,611
08-09 ACTIVITY REPORT.As, MAY09 3 of 4
ACTIVITY REPORT
MAY, 2009 (FM08, FY2009)
In-house events are counted in facility totals.
ENVIRONMENTAL PROGRAM - INDEPENDENCE OAKS
Nature Center
Outreach Visits
**Trail Usage (**Not included in totals)
ENVIRONMENTAL PROGRAM - LYON OAKS
Nature Center
Outreach Visits
**Trail Usage (**Not included in totals)
TOTAL NATURE CENTERS
TOTAL OUTREACH VISITS
DAY USE PARKS
GOLF COURSES
RECREATION, FACILITIES AND SPECIAL EVENTS
NATURE INTERPRETIVE SERVICES
BANQUET FACILITIES
GRAND TOTALS
Therapeutic/Senior Event Breakdown
TR: Bball-44;TGIT-55; Royal Oak-49 Golf-46; Goal Ball -16;
IKLANDmj
PARTICIPANTS (MONTH)
FM08, FY08 FM08, FY09
2,657 2,444
1,180 1,311
6,743 11,015
PARTICIPANTS (YTD)
FY2008 FY2009
13,186
10,676
4,495
6,785
55,959
56,792
93
287
1,451
1,819
311
107
884
882
677
607
4,678
4,707
2,750
2,731
14,637
12,495
1,491 1,418
PARTICIPANTS (MONTH)
5,379 1 7,667
PARTICIPANTS (YTD)
FM08,FY08
FM08,FY09
FY2008
FY2009
73,584
71,313
283,154
283,150
26,470
26,192
52,528
47,833
26,738
19,972
#REF!
#REF!
4,241
4,149
20,016
20,162
18,286
18,358
96,347
93,269
149,319
139,984
#REFI
#REFI
REVISED 10/6/04 Note: Deleted Grill Room numbers from Combined Totals.
08-09 ACTIVITY REPORT.As, MAY09 4 of 4
Item # 8
Oak Management
2008 Audit Report
Historically OCPRC accounting personnel have conducted an annual audit of Oak
Management's food and beverage operations. With the 2008 department reorganization
that transferred the OCPRC accounting staff positions to Oakland County Management
and Budget — Fiscal Services division, the annual audit function was reassigned to the
Oakland County Auditing division.
Enclosed is the 2008 Oak Management Audit Report. Staff from Oakland County
Auditing will make a brief PowerPoint presentation of their audit findings and
recommendations.
8-1
COAS. L. BROOKS PATTERSON, OAKLAND COUNTY EXECUTIVE
C O U N T Y M I C H I G A N
A U D I T I N G D I V I S 1 0 N
May 27, 2009
Daniel J. Stencil, Executive Officer
Oakland County Parks and Recreation Commission
2800 Watkins Lake Road
Waterford, Michigan 48328-1917
Audit of Oak Management Corporation's
2008 Park Banquet, Concession and Grill Revenue
Dear Mr. Stencil:
Pamela L. Weipert, CPA, CIA
Manager
The Oakland County Parks and Recreation Commission has 14 recreational facilities with food
and beverage services and vending machines to provide services to patrons. At six of these
facilities, catering services are also available. Oakland County has entered into a lease
agreement with Oak Management giving them exclusive rights to furnish these services at the
recreational facilities. At the end of each calendar year, Oak Management reports the gross
revenue generated at the facilities to Oakland County through its Oakland County Report and
pays Oakland County a percentage of the gross revenues reported as "rent."
At your request and pursuant to the agreement between Oakland County and the E. A. Fuller
Oak Management Corporation (Oak Management), the Oakland County Auditing Division
(OCAD) has examined the gross sales reported by Oak Management to the Oakland County
Parks and Recreation Commission (Oakland County) for the period January 1, 2008 to
December 31, 2008. Our responsibility is to express an opinion on Oak Management's reported
gross sales based on our examination.
We reviewed Oak Management's internal control process along with the revenue reported to
Oakland County for Oak Management's banquet, concession stands, grill and vending
operations. Oak Management uses a manual process with significant control deficiencies to
collect, record and report the Oakland County generated revenues. Not all transactions may
have been discovered as a result of our procedures. Unrecorded revenues are particularly
difficult to identify as the ability to suppress receipts is extraordinarily high, even when an
auditing procedure is subsequently performed to attempt to detect them. If a cash receipt is not
recorded, the ability to control cash transactions is nearly impossible.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants and, accordingly, included examining, on a
test basis, evidence about Oak Management's reported revenue and performing such other
procedures as we considered necessary in the circumstances. We believe that our examination
provides a reasonable basis for our opinion. Our examination does not provide a determination
on Oak Management's compliance with other specified agreement requirements.
8-2
BUILDING 34 EAST - 1200 N TELEGRAPH RD - PONTIAC MI 48341-0405 - (248) 858-0994 - FAX (248) 858-2918
Mr. Daniel J. Stencil, Executive Officer
Page 2
May 27, 2009
The objectives of our audit were to:
1. Provide reasonable assurance that the gross sales for 2008 and calculation of revenue
reported to Oakland County on the Oakland County Report were accurately reported.
2. Determine if the internal controls of Oak Management are adequate to assure revenue is
accurately reported.
3. Determine if the issues and recommendations that were reported on the 2007 Financial
Evaluation completed by the Oakland County Parks and Recreation Commission
accounting staff were resolved.
Our methodology included interviews with key personnel and the examination of documentation
which included:
1. The agreement between Oakland County and Oak Management.
2. The Oakland County Report.
3. The Yearly Sales Summary Spreadsheet which is a summary of all of the Sales Journals
by location and sales type.
4. The Sales Journals (Journals) for the banquet facilities, concession stands, grill and
vending operations along with back-up documentation to support the amounts reported
on the Journals, including contracts, check stubs, and Z-tape reports.
The following schedule shows the amount of gross sales reported to Oakland County and the
amount of rent due to Oakland County based on our audited sales.
Location
Gross Sales
Reported to
Oakland County
Business Revenue
Earned Not
Reported
in Gross Sales
Gross Sales
Not Accurately
Reported
Audited
Sales
Percentage
Rent
Audited
Rent
Issue Number
1
2
White Lake Oaks
Banquet
$ 609,009.86
$ 1,710.0.0
$ 19,804,80
$ 590,915.06
11.50%
$ 67,955.23
Grill
128,692.30
116.50
128,808.80
11.50%
14,813.01
Addison Oaks
Banquet
1,383,553.27
10,805.00
1,481.95
1,392,876.32
9.50%
132,323.25
Concession <$1,600.00
1,600.00
1,600.00
100.00%
1,600.00
Concession > $1,600.00
1,450.85
93.00
1,543.85
12.00%
185.26
Springfield Oaks
Clubhouse
147,140.69
13,397.90
160,538.59
10.00%
16,053.85
Activities Center
14,325.69
14,325.69
10.00%
1,432.57
Waterford Oaks
Banquet
17,674.71
17,674.71
10.00%
1,767.47
The Fridge
31,037.23
222.13
30,815.10
10.00%
3,081.51
Groveland Oaks
44,500,06
93.00
44,407.06
12.00%
5,328.85
Independence Oaks
299.36
299.36
100.00%
299.36
Waterford Oaks Wave Pool
143,760.62
143,760.62
12.00%
17,251.27
Red Oaks
Wave Pool
152,063.61
152,063.61
12.00%
18,247.63
Golf Couse
254.67
254.67
90.00%
229.20
Glen Oaks
Banquet
1,301,928.41
16,623.25
2,692.15
1,321,243.81
16.00%
211,399.04
Grill
125,691.86
2,098.00
127,789.86
16.00%
20,446.38
Lyon Oaks
Banquet
640,709.30
2,750.00
2,233.36
645,692.66
15.50%
100,082.36
Grill
160,081.86
118.00
160,199.86
15,50%
24,830.98
Total
$4,903,774.35
$ 31,888.25
$ 852.97
$4,934,809.63
$637,327.22
Rent Reported by Oak Management $ 632,974.58
Amount Due to County $ 4,352.64
8-3
Mr. Daniel J. Stencil, Executive Officer
Page 3
May 27, 2009
In our opinion, Oak Management reported its gross sales to Oakland County, in all material
respects, except as noted in our Schedule of Issues and Recommendations (see pages 5 to
15). As a result of our examination, we found the following:
1. The amount of sales for 2008 and the calculation of gross sales reported to Oakland
County on the Oakland County Report were not accurately or completely reported.
• Retained forfeited deposits, administrative fees, and coat check revenue totaling
$31,888.25 was not reported in gross sales, although they are revenues generated
from the conduct of business at Oakland County parks (see Issue #1 on pages 5 and
6).
• Nine errors for a net amount of $852.97 were identified that impacted the accuracy
of the gross sales reported by Oak Management (see Issue #2 on pages 6 to 11).
2. The internal controls of Oak Management have significant deficiencies which adversely
affect Oak Management's ability to record, process and report financial data reliably in
accordance with the lease agreement. Issues were noted for banquet sales, grills,
concessions and cart sales and the reporting processes (see Issues #3 to #5 on pages
11 to 15).
3. The issues and recommendations that were reported on the 2007 Financial Evaluation
completed by the Oakland County Parks and Recreation Commission accounting staff
have not all been resolved. See the Disposition of Prior Audit Issues on page 16.
Oak Management's response to our issues and recommendations has been included in this
report as Attachment A on pages 18 to 20. Oak Management agreed with our findings except
-- for the following:
Issue #1 (pages 5 and 6) involved two types of revenues that should be included in the
gross sales reported to Oakland County. Oak Management's Administration felt the
deposits and administrative fees were lost revenue and in past years were not
considered revenue. The coat check charges were for a service and the charge pays
the vendor responsible for the service.
We disagree. Accounting principles require forfeited deposits be reported as income,
and therefore should be included in Oak Management's gross sales. Further, the
agreement does not contemplate Oak Management's cost of providing services;
therefore whether Oak Management earns profit on its charges is irrelevant to whether
an item should be reported as gross sales.
Issue #2c (page 7) involved sales that were not reported under the correct location. Oak
Management's Administration felt the revenue should be reported where the food was
processed, rather then actual location of the event.
We disagree as the agreement between Oak Management and Oakland County
specifies the revenue should be reported under the location at which the event occurs.
• Issue #2d (page 8) involved banquet contract errors. There were errors in the
computation of Contract A7300 that led to an under reporting of revenue to Oakland
County. Oak Management's Administration noted the correct amount was reported on
the Sales Journal.
We agree the amount reported on the Sales Journal was the amount collected from the
client, but as this amount was not mathematically correct, the amount of gross sales
8-4
Mr. Daniel J. Stencil, Executive Officer
Page 4
May 27, 2009
reported to Oakland County was under reported. By under reporting revenue, Oakland
County did not receive all of the rent to which it was entitled.
We would like to thank the employees of Oak Management, the Oakland County Parks and
Recreation Commission and the Oakland County Management and Budget Department for their
assistance in completing this audit.
Sincerely,
Pamela L. Weipert
Manager
/ymt
Attachment
cc: Daniel Shaw, E. A. Fuller Oak Management Corporation
Pecky D. Lewis, Jr., Chairman, Oakland County Parks and Recreation Commission
Bill Bullard, Jr., Chairman, Oakland County Board of Commissioners
Robert J. Daddow, Deputy County Executive
Phillip R. Bertolini, Deputy County Executive
Gerald D. Poisson, Deputy County Executive
Kenneth Rogers, Deputy County Executive
Laurie M. Van Pelt, Director, Department of Management and Budget
Tim Soave, Manager, Oakland County Fiscal Services
Brian Menghini, Supervisor II, Fiscal Services - Parks and Recreation Accounting
8-5
AUDIT OF OAK MANAGEMENT CORPORATION'S
2008 PARK BANQUET, CONCESSION AND GRILL REVENUE
SCHEDULE OF ISSUES AND RECOMMENDATIONS
ISSUE #1: BUSINESS REVENUE EARNED AT PARKS NOT REPORTED IN GROSS
SALES
The agreement between Oak Management and Oakland County defines gross sales as:
the gross amount of all sales of every kind and description made in, upon,
or resulting from the conduct of the business of Lessee (Oak Management)
upon the various recreational facilities covered by this Agreement, but after
deduction therefrom refunds made in the normal course of business,
service charges and amounts paid for sales tax.
The following sales were not reported to Oakland County:
Banquet Location
Retained
Banquet
Deposits
Coat Check
Revenues
Total
Unreported
Sales
White Lake Oaks
$ 1,610.00
$ 100.00
$ 1,710.00
Addison Oaks
10,405.00
400.00
10,805.00
Glen Oaks
15,170.00
1,453.25
16,623.25
Lyon Oaks
2,600.00
150.00
2,750.00
Total
$ 29,785.00
$ 2,103.25
$ 31,888.25
By Oak Management not reporting this revenue to Oakland County, Oakland County is not
receiving all the rent to which it is entitled.
a. Retained Banquet Deposits Not Reported
Revenue earned from the retention of deposits when an event was cancelled was not reported
to Oakland County. If the cancellation of an event occurs, the deposit the client made is
refunded (less a 10% administrative services fee) if the cancelled date is rebooked by another
client. If Oak Management is unable to rebook the date, the deposit is forfeited by the client.
Retained deposits and 10% administrative services fees of $29,785.00 that were not returned to
clients were not reported to Oakland County as gross sales.
The Vice President of Operations of Oak Management did not consider this income to be an
item that should be reported in gross sales. He felt this was lost revenue to the corporation.
b. Coat Check Fees Not Reported
Revenue associated with coat check fees were not reported to Oakland County. If a client
requests a person to check coats at an event, the client is charged for that service.
Oak Management Administration did not consider this revenue of $2,103.25 to be gross sales
as was defined in the agreement.
5
Recommendations: We recommend Oak Management:
• Adjust the gross sales by $31,888.25 that was under reported.
• Include forfeited deposits and administrative services fees, and coat check fees on
the Oakland County Report on which Oak Management reports its total gross sales
to Oakland County.
ISSUE #2: GROSS SALES WERE NOT ACCURATELY REPORTED
It is management's responsibility to ensure that financial records and reporting are accurate.
Established policies and procedures ensure the correct amount of revenue is captured. Internal
controls ensure the reliability of financial reporting. Review and reconciliation measures ensure
that records are examined and reconciled to determine that transactions were properly
processed and approved.
Location
3%
Convenience
Fee
Ceremony
and Room
Rental Fees
Incorrect
Location
Banquet
Contract
Math Errors
Sales Tax
on Parks
Events
Cart Sales
Vending
Machine
Revenues
Vendor
Revenues
Errors in
Reporting
Audited Gross
Sales
Issue Number
2a
2b
2c
2d
2e
2f
2g
2h
2i
White Lake Oaks
Banquet
$ 198.26
$ (3.06)
$ (20,000.00)
$ (19,804.80)
Grill
6.50
610.00
(500.00)
116.50
Addison Oaks
Banquet
50.02
(1,520.41)
65.17
(21.23)
(55.50)
(1,481.95)
Concession
93.00
93.00
Springfield Oaks
Clubhouse
1,520.41
11,877.49
13,397.90
Waterford Oaks
The Fridge
(222.13)
(222.13)
Groveland Oaks
(93.00)
(93.00)
Glen Oaks
Banquet
409.71
2,500.00
3.10
(220.66)
2,692.15
Grill
2,128.00
(30.00)
2,098.00
Lyon Oaks
Banquet
195.72
1,575.00
462.64
2,233.36
Grill
18.00
100.00
118.00
Total
$ 853.71
$ 4,075.00
$ -
$ 530.91
1 $ 24.29
$ 24.50
$ 2,838.00
$ -
$ 9,150.80
$ 852.97
The following sales were not reported accurately to Oakland County:
By not accurately reporting gross sales on the Oakland County Report, Oakland County does
not receive the correct amount of rent.
a. 3% Convenience Fee Not Reported Accurately
When a client pays for a banquet with a credit card, Oak Management charges a 3% credit card
convenience fee (surcharge) on the amount of the sale. When Oak Management processes a
credit card payment, the employee accepting the payment completes a Credit Card Charges
form (CCC) to track the amount the client paid with a credit card and the amount of surcharge
the client paid. All of the CCCs which documented the amounts included in the surcharge
reported to Oakland County were not available for our review; likewise, there were some
amounts on CCCs that were not included in gross sales. The following schedule details the
amount of surcharge that was charged, the amount reported, and the amount under reported by
location:
0
8-7
Amount
Included in
Charged per
Gross Sales
Oak
Amount
on Banquet
Under
Banquet
Management
Reported to
Sales
Reported
Location
Records
County
Journal
Gross Sales
White Lake Oaks
$ 1,261.85
$ 1,063.59
$ -
$ 198.26
Addison Oaks
2,473.35
2,423.33
-
50.02
Glen Oaks
840.07
396.65
33.71
409.71
Lyon Oaks
467.51
1 208.55
1 63.24
195.72
Total
$ 5,042.78
$ 4,092.12
$ 96.95
$ 853.71
It should be noted that credit card companies do not allow merchants to charge a surcharge to
their card users. Oak Management should review its policy of charging clients a surcharge and
either discontinue charging this type of surcharge or start charging all clients 3% more for
services and give clients paying with cash a discount.
b. Ceremony and Room Rental Fees Not Reported Accurately
Oak Management did not report revenue received for ceremony charges and room rental
charges at Glen Oaks and Lyon Oaks for September through December 2008. Clients at Glen
Oaks are charged a ceremony charge if the client wants to have the wedding ceremony at the
facility. At Lyon Oaks, clients are charged for room rental that includes charges for set up, clean
up, china, stemware, silverware, linen, tablecloths, napkins and cake cutting.
The following schedule details the amount of gross sales that was not reported by location:
Banquet
Location
Ceremony
Charge
Room
Rental
Charge
Under
Reported
Gross Sales
Glen Oaks
$ 2,500.00
$ -
$ 2,500.00
Lyon Oaks
I -
1 1,575.00
$ 1,575.00
Total
1 $ 2,500.00
1 $ 1,575.00
$ 4,075.00
The employee being trained for part of the Controller's job duties inadvertently did not report the
ceremony charges at Glen Oaks and the room rental charges at Lyon Oaks in the gross sales
reported to Oakland County.
C. Gross Sales Not Reported Under the Correct Location
Oak Management pays to Oakland County rent for the use of Oakland County facilities. The
rent is based on the gross sales at each location. Sales of $1,611.63 (including sales tax of
$91.22) for one event held on May 3, 2008 (Contract A7308) were reported under Addison Oaks
banquet revenue rather than under Springfield Oaks Clubhouse where the banquet was held.
The following schedule details the adjustment needed to the gross sales to correctly report this
contract:
Location
Gross Sales
Adjustment
Addison Oaks Banquet
$ 1,520.41
Springfield Oaks Clubhouse
1,520.41
Total
$ -
Oak Management reported the gross revenue for this event under the wrong location in error.
7
8-8
d. Banquet Contacts Not Mathematically Correct
When a client has a banquet event at one of Oak Management's seven locations, an Oak
Management Corporation - Food and Beverage Contract (Contract) is completed between the
client and Oak Management. The Contract details all of the charges to the client for the event.
Once the event is held, the information on the Contract is used to document the calculation of
service fees and sales taxes included in "all inclusive pricing" events. The Contract sales
information is then entered on the Sales Journal by type to be reported to Oakland County as
gross revenues. During our review, we found five contracts had errors in the computations and
classification. The following schedule details the location, the contract number, the issue with
the contract, and the amount of sales the contract was under or over reported:
Gross Sales
Reported
Under
Contract
]on
Sales
Reported
Number
Issue
JournaAudited
Gross Sales
Addison Oaks
Client was charged $1,000.00 for hor d'oeuvres and should have been
charged $1,125.00 The client had 225 people at a price of $5.00 each for
A7300
a total of $1,125.00. Client was under charged $125.00. Gross sales were
$ 7,994.88
$ 8,094.82
$ 99.94
under reported $99.94 with service charge under reported $17.99 and
sales tax under reported $7.07.
$34.77 was reported as rent on the Sales Journal. This charge was
A7336
actually sales tax, which resulted in gross sales being over reported by
34.77
-
(34.77)
$34.77 and sales tax under reported.
Total Addison
Oaks
$ 8.029.65
1 $ 8,094.82
$ 65.17
Glen Oaks
Client was charged $489.80 for dessert and should have been charged
G05693
$492.90 ($7.95 x 62 = $492.90). Client was under charged $3.87. Gross
sales were under reported $3.10, service charge was under reported by
$ 5,532.20
$ 5,535.30
$ 3.10
$0.55 and sales tax was under reported by $0.22.
Total Glen Oaks
$ 5532.20
$ 5.535.30
$ 3.10
Lyon Oaks
$724.25 was reported in the golf outing price and should have been
L01774
reported as food. This yielded an under reporting of $579.03 in gross
$ 3,042.05
$ 3,621.08
$ 579.03
sales, $104.23 in service charge, and $40.99 in sales tax.
$145.60 in golf tokens was reported on the Sales Journal as food and
beverage rather than as a pass through amount for golf which resulted in
L01797
an over reporting of $116.39 in gross sales, $20.95 in service charge, and
3,239.20
3,122.81
(116.39)
$8.26 in sales tax and an under reporting of $145.60 in golf fees collected
for the Oakland County Parks and Recreation Commission.
Total Lyon Oaks
$ 6,281.25
1 $ 6,743.89
$ 462.64
Total
$19,843.10 1 $ 20,374.01 $ 530.91
Oak Management employees computed and reported the breakdown of the gross revenue for
these events incorrectly due in part to the following:
• Manual/typewritten forms provide opportunities for quantities and prices to be
transferred incorrectly and miscalculations to occur.
• "All inclusive pricing" requires complicated computations to determine service charge
and sales tax amounts.
• Oak Management's Contract does not provide a place to record golf and related fees
separately from food.
9
e. Sales Tax Not Reported Correctly
Gross sales were not always properly computed on "all inclusive pricing" banquet contracts for
Parks and Recreation events because sales tax exemptions were not correctly applied. State of
Michigan Department of Treasury Sales and Use Tax Acts require a signed tax exempt form
documenting that the event is for government use and the event needs to be paid for via a
purchase order or with the entity's funds. If the event is a private event, it is not tax exempt; the
client should be charged sales tax. On the Sales Journal, sales tax was included for a Parks
and Recreation event that was tax exempt and not included for two private events booked under
Parks and Recreation's name that should have been charged sales tax. The following schedule
shows the amount of gross sales by location that was reported incorrectly for Parks and
Recreation events:
Contract Number
Over
Reported
Gross Sales
Under
Reported
Sales Tax
Total
Addison Oaks
A7502
1 $
(21.23)1
$
21.23
1 $ -
Total Addison Oaks
$
(21.23)
$
21.23
$ -
White Lake Oaks
WL2061
$
(20.38)
$
20.38
$ -
WL2079
17.32
(17.32)
-
Total White Lake Oaks
$
(3.06)
$
3.06
$ -
Total
1 $
(24.29)1
$
24.29
1 $ -
Oak Management erred in determining the sales tax status for each event and therefore
computed and reported the breakdown of the gross revenue for these events incorrectly.
f. Cart Sales Not Mathematically Correct
A Beverage Cart Sales (BCS) form was used to document the number of items sold by
beverage carts at the golf courses and the total sales for the cart for the day. The Lyon Oaks
BCS form for June 10, 2008 had a mathematical error that resulted in the under reporting of
sales by $18.00 and the White Lake Oaks BCS form for July 3, 2008 had a mathematical error
that resulted in the under reporting of sales of $6.50. This resulted in a total under reporting of
gross sales by $24.50.
Oak Management's supervisors did not review the BCS forms for accuracy.
g. Vending Machine Revenue Not Reported
Oak Management did not report revenue received for all pop machines it maintained in Oakland
County parks. When change from a pop machine was emptied, the money was deposited into
the location's bank account. One location reported the amount of revenue on the Grill Room
Weekly Sheet, others detailed the money collected on the Cash Receipts schedule that is given
to Oak Management Administration. During 2008, only one of the six amounts collected and
reported to Oak Management Administration on the Cash Receipts schedule was reported to
Oakland County as gross sales.
9
8-10
The following schedule details the amount of gross sales that was not reported by location:
Location
Amount of
Unreported
Gross Sales
White Lake Oaks Grill
$ 610.00
Glen Oaks Grill
2,128.00
Lyon Oaks Grill
100.00
Total
$ 2,838.00
The controller for Oak Management did not recognize these amounts as revenue in error.
h. Misallocated Vendor Revenue
Glo America's actual product sales for July 4, 2008 and July 5, 2008 were 1,025 units at
Addison Oaks and 1,580 units at Groveland Oaks. The gross sales reported to Oakland County
should have been allocated to the locations based on the proportion of actual sales. Rather,
Oak Management allocated sales based on a 30 / 70 percentage split. The following schedule
shows the actual product sales, the percentage of the product sales to the total sales, the
verified gross sales and the reported gross sales:
Location
Actual
Product
Sales
Percent
to
Total
Verified
Gross
Sales
Reported
Gross
Sales
Adjustment
to
Gross Sales
Addison Oaks Concession
1,025
39%
$ 393.00
$ 300.00
$ 93.00
Groveland Oaks
1,580
61%
607.00
700.00
(93.00)
Total
2,605
$ 1,000.00
$ 1,000.00
$ -
Oak Management reported the gross sales under the wrong location in error.
Errors in Reporting Gross Sales to Oakland County
Oak Management did not report the gross sales received for banquet and grill sales correctly.
During the month, sales are reported by each location to Oak Management Administration who
tallies each type of sale by location on the Sales Journal. Each month, the Sales Journal for
each location and type of sale is sent to the Controller who compiles the information into a
Yearly Sales Summary Spreadsheet (YSSS). Each quarter, the gross sales information from
the YSSS is entered onto the Oakland County Report which is sent to Oakland County. This is
a totally manual process which has a high risk of error as the sales amounts are transferred
from one document to another. The following schedule is a summary of the errors made when
transferring the information from each location to the Oakland County Report:
Location
Over
Reported
Banquet
Sales
Over
Reported
Grill Sales
Over
Reported
Gross Sales
Addison Oaks
$ 55.50)
$ -
$ (55.50
White Lake Oaks
20,000.00)
500.00)
(20,500.00
Glen Oaks
(220.66)
(30.00)
(250.66
Springfield Clubhouse
-
11,877.49
11,877.49
Waterford Fridge
(222.13)
-
(222.13)
Total ----f$-(20,498.29)1
$ 11,347.49
1 $ (9,150.80
10
8-11
The employees of Oak Management made errors when transferring the amounts from the Sales
Journal to the YSSS.
Recommendations: We recommend Oak Management:
• Adjust the 2008 gross sales by $852.97 that was over reported.
• Obtain from all clients claiming sales tax exemption the documentation required for
each event in accordance with the State of Michigan Department of Treasury Sales
and Use Tax Acts.
• Update the Oak Management Corporation - Food and Beverage Contract form to
include a line following all of the food, beverage, service charge, and sales tax items
to report "Golf Fees".
• Establish policies and procedures to ensure that the gross sales reported to Oakland
County are accurate and complete. Issues that need to be addressed are:
o Tracking credit card fees (surcharges) to the gross revenue reported to Oakland
County.
o Capturing all gross revenues, including ceremony and room rental charges, in the
appropriate location.
o Reviewing contract computations to ensure the computation and reporting are
complete and correct.
o Reviewing and approving Beverage Cart Sales forms by supervisors.
o Reporting the amount of pop revenues and treating them consistently between
locations.
ISSUE #3: LACK OF INTERNAL CONTROLS FOR BANQUET REVENUE PROCESS
The banquet reservation and deposit process lacks internal controls to ensure revenues are
correctly reported and complete.
a. Missing or Incomplete Forms
Oak Management staff at banquet locations did not always complete or properly complete the
forms required to fully document event transactions.
• Employees at Waterford Oaks banquet facility and Springfield Oaks
Clubhouse/Youth Activity Center were not required to complete the Minimum
Cancellation Form for events at their locations.
• Minimum Cancellation Forms were not always signed by Oak Management staff.
• Contracts were not always signed by the client or Oak Management staff.
b. Inadequate Record of Event Payments
Documentation of payments received by clients made for events were not always retained by
Oak Management. Estimate Only- Oak Management Corporation Food and Beverage
Contract forms (Estimate), which serve as the receipt for additional payments made by the
client, are not always retained. The forms were not retained at Addison Oaks and Estimates
11
8-12
were missing for some of the events audited. Receipt forms for original deposits were retained
at each location, however.
C. No Review for Accuracy
Estimates and Contracts were not reviewed for accuracy. Estimates and Contracts were
manually completed, increasing the risk of errors between the documents, in the computation of
amounts due from the client and in the computations required with "all inclusive pricing".
d. Event and Golf Revenue Intermingled
Estimates and Contracts did not accommodate services provided or provide for an accounting
of the total paid. Golf related charges were intermingled with food and beverage related
charges, which increased the risk of reporting revenues incorrectly. Golf and food revenue was
reported as an entree on Contract L01774 at Lyon Oaks.
e. Inadequate Documentation of Client Payments
Contracts did not always include a full accounting of all amounts paid for the event, including
any credit card fees, the dates paid, receipt numbers or the manner of payment.
It is management's responsibility to put in place procedures and appropriate internal controls
that ensure all documentation of transactions, including revenues earned, liabilities incurred,
and the associated client agreements, are properly and uniformly completed and maintained.
The Oak Management staff, at each location, did not have written policies and procedures
regarding the completion and retention of required documents for reporting sales, advance
deposits and cancellations. Estimate and Contracts have not been updated to capture all event
fees.
The receipt and the Minimum Cancellation Form and Estimate Only — Oak Management
Corporation Food and Beverage Contract (Estimate) are the original record of the transaction
(deposit and payment). When internal controls are lacking and source documents are not
correct or do not exist, there is no record or correct record of the deposit and payment received
from the client and funds could be misappropriated without detection.
Recommendations: We recommend Oak Management develop and implement written
policies and procedures at each location over the banquet reservation and deposit
process and perform a review of each location to ensure written policies and procedures
are being followed.
ISSUE #4: LACK OF INTERNAL CONTROLS FOR BEVERAGE CART SALES, GRILL,
AND CONCESSION REVENUE PROCESSES
The beverage cart sales, grill, and concession revenue processes lack internal controls to
ensure revenues are correctly reported and complete.
12
8- 13
a. Lack of Management Review
The beverage cart sales process lacks the review and approval of management necessary to
ensure that all revenues are being collected.
• An inventory count was not conducted and documented at the beginning and end of
each shift to verify starting inventory and to confirm inventory amounts sold.
• Beverage Cart Sales Sheets at Lyon Oaks, Springfield Oaks Clubhouse and White
Lake Oaks were not reviewed for mathematical accuracy:
o Sales on June 10, 2008 for the beverage cart at Lyon Oaks were incorrectly
reported due to a math error on "Mikes". Total sales of six sold at $4.50 was
reported as $9.00, when the total sales should have been $27.00. See Issue 2f
on page 9 for the revenues that were under reported.
o Sales on July 3, 2008 for the beverage cart at White Lake Oaks were incorrectly
reported due to a math error on "Pop". Total sales of seven sold at $2.25 was
reported as $9.25, when the total sales should have been $15.75. See Issue 2f
on page 9 for the revenues that were under reported.
• Price changes at White Lake Oaks were not approved by a supervisor.
b. No Record of Days Open
Neither Parks and Recreation Administration nor Oak Management Administration can
definitively provide a list that shows the days the grill, beverage carts or concession stands were
open, making it impossible to determine whether there was revenue missing.
• Oak Management's Sales Journal does not accurately reflect if the location was
open, if there was no sales that day, or if the location was actually closed. For
example, on March 6, 2008, the Fridge concession stand was open, but a note on
the Sales Journal stated the location was closed.
C. Excessive Number of Over Rings
The grill and concession cash register tapes contained an excessive number of over rings which
were not all reviewed by a supervisor to ensure they were voided transactions.
• Four over ring transactions at Lyon Oaks grill (1), Springfield Oaks grill (2), and
White Lake Oaks grill (1) did not indicate supervisory review.
• One over ring transaction was not identified on the Z-tape at White Lake Oaks.
• Two over ring transactions for Red Oaks Wave Pool concession were missing proof
of supervisor review.
d. Missing Z-tapes
A register Z-tape report (Z-tape) should be printed at the end of the day. A Z-tape records the
sales for the day and resets the totals on the register for the following day. The grill and
concessions' registers had missing Z-tapes making it impossible to determine whether there
was revenue missing.
• Three Z-tapes were missing from White Lake Oaks grill.
13
8-14
• Fifteen Z-tapes were missing from the Springfield Oaks grill.
Review and approval are controls that help management gauge whether operational goals and
objectives are being met. When a process is performed, there should be a review and approval
performed by a knowledgeable individual independent of the process to verify the process was
performed correctly and objectives were achieved. The approval should be documented to
verify that a review was done. All numbered transactions must be accounted for to ensure
completeness.
Lack of sufficient review could result in funds and inventory being misappropriated as well as
inaccurate reporting of sales. If the documentation of transactions is not maintained and
complete, it is unknown if reported revenue is accurate and if all revenue has been reported to
Oakland County.
Recommendations: We recommend Oak Management should:
• Implement internal controls that include an inventory count at the beginning and end
of the beverage cart shift by someone other than the individual selling the items.
• Recalculate Beverage Cart Sheets for accuracy.
• Determine the cause of the excessive over rings and conduct training if needed to
eliminate over rings.
• Require all over rings be approved and documented by a supervisor.
• Determine the reason for all missing Z-tapes and put into place policies and
procedures that require all Z-tape readings be retained.
ISSUE #5: LACK OF INTERNAL CONTROLS FOR REPORTING PROCESS
Oak Management's Sales Journal, Oakland County Report, Advance Deposit List and
cancellation reporting process is manual. The controls that are in place to ensure that amounts
transferred between each report are complete and accurate appear to be inadequate.
a. Errors in Sales Information on the Yearly Sales Summary Spreadsheet
The Oak Management Yearly Sales Summary Spreadsheet did not agree with the Sales Journal
which documents all sales information.
• White Lake Oaks' August 2008 banquet sales were over reported by $20,000.00 on
the Oakland County Report.
• Springfield Oaks' September 2008 grill sales were under reported by $11,877.49 on
the Oakland County Report.
• Numerous smaller errors, from $10.50 to $300.00, for activity at Glen Oaks' grill,
White Lake Oaks' grill, Addison Oaks' banquet and Glen Oaks' banquet were made
on the Oakland County Report.
• Glen Oaks' banquet refunds for events held in February and March were reported as
revenue.
14
8-15
b. Errors on Advance Deposit List
Oak Management's Advance Deposit List did not accurately reflect the outstanding deposits.
Our office received an updated copy of this list three times and errors were still found in the final
copy. In addition, the Advance Deposit List lacks pertinent information such as the date
deposits are received, receipt number, and the name of the depositor verses the name of event.
Errors noted were:
• A deposit for an event on July 12, 2008 for White Lake Oaks was recorded twice.
• A deposit for an event on December 12, 2008 for Glen Oaks was recorded twice.
• A deposit for an event on June 11, 2008 for White Lake Oaks was recorded on Glen
Oaks' Advance Deposit List in error.
• A deposit for an event scheduled on November 18, 2008 for Glen Oaks was
recorded on the Glen Oaks' Advance Deposit List, however the event was cancelled.
C. Missing or Incomplete Cancellation Report Forms
All Cancellation Report forms are not required to be sent to Oak Management Administration.
In addition:
• No Cancellation Report form was completed for a Glen Oaks event that had been
cancelled - date of event June 6, 2008.
• A refund of a client's deposit less 10% was made and the refund was not properly
completed on the Cancellation Report form.
It is management's responsibility to ensure that financial records and reporting are accurate.
Review and reconciliation measures ensure that records are examined and reconciled to
determine that transactions were properly processed and approved.
Oak Management Administration does not have written policies and procedures regarding the
reporting of sales, advance deposits or cancellations and does not reconcile between reports to
assure accuracy.
Lack of internal controls over the completion of the Sales Journal and Oakland County Report
results in the inaccurate reporting of sales and in the inaccurate payment of rent to Oakland
County. Lack of internal controls over each location's Advance Deposit List and cancellation
forms results in an inaccurate record of monies received and returned, and revenues earned
and provides opportunity for funds to be misappropriated.
Recommendations: We recommend Oak Management Administration:
• Develop and implement written policies and procedures over the reporting of sales,
advance deposits and cancellation process.
• Perform a review of all locations to ensure written policies and procedures are being
followed.
• Reconcile the Advance Deposit List monthly to the financial statement to ensure that
all deposits are accounted for.
15
8-16
AUDIT OF OAK MANAGEMENT CORPORATION'S
2008 PARK BANQUET, CONCESSION AND GRILL REVENUE
DISPOSITION OF PRIOR AUDIT ISSUES
A financial evaluation was completed by Oakland County Parks and Recreation employees and
the issues found were detailed in a report dated April 1, 2008 for the period January 1, 2007 to
December 31, 2007. The total questioned rent of $1,383.43 was paid back by Oak
Management to Oakland County. The following schedule shows each issue, a description of
the issue and the status as of the time of our audit:
ISSUE I DESCRIPTION
STATUS
SECTION "A" FINDINGS
FINDING #1 - VENDING REVENUE
A., B.
Vending revenue should be deposited separately.
Resolved
C.
All documentation for vending revenue should be filed together so that it
can be recorded correctly.
Resolved
D.
Coca Cola invoice was not included on the Yearly Sales Summary
Spreadsheet. Oak Management needed to determine why the amount
Resolved
was not included.
FINDING #2 - CREDIT CARD SURCHARGE
#2
3% Credit Card Surcharge was not reported as gross sales to the County.
Resolved
FINDING #3 - BANQUET REVENUE
#3
Banquet gross sales were not reported under the location at which the
Not Resolved
event was held.
See Issue #2c on page 7.
FINDING #4 - UNREPORTED REVENUE
#4
Gross sales for wedding rental was not reported on the Yearly Sales
Not Resolved
Summary Spreadsheet.
See Issue #2b on page 7.
SECTION
"B" COMMENTS AND RECOMMENDATIONS
1.
Oak Management should establish a petty cash fund rather then pay out
funds for purchases out of the cash register.
Not Resolved
2.
X-tape readings were being run immediately before a Z-tape reading. Oak
Management needed to correct the problem or explain why it is allowed.
Not Resolved -Dropped
3.
All facilities that hold banquets should show "Charges" on their Sales
Not Resolved
Journals and all locations should account for revenue and expense on a
See Issue #3 on
consistent basis.
pages 11 and 12.
4.
Oak Management should review their procedures for recording banquets in
Not Resolved
the accounting system for the different facilties so that the amounts are
See Issue #2c on
recorded for the proper facility.
page 7.
5.
Oak Management should establish a procedure to have someone review
Not Resolved
the overages and shortages on the Z-tapes and determine the best way to
See Issue #4 on
correct the problem.
pages 12 to 14.
6.
All charges should be recorded consistently so they can be traced to the
Not Resolved
contracts to determine if a 3% surcharge was charged and for better
See Issue #2a on pages 6 and 7 and
internal control.
Issue #3 on pages 11 and 12.
7.
Oak Management should establish a reporting procedure that is
Not Resolved
consistent at all locations. Procedures at all locations should be
See Issue #2g on pages 9 and 10,
reviewed annually to ensure that the established procedures are
Issue #3 on pages 11 and 12 and
,being followed.
Issue #4 on pages 12 to 14.
8.
Oak Management and Oakland County Parks and Recreation should
establish written procedures for resolving problems discovered during the
evaluation process and that all resolutions to the financial evaluations be in
Not Resolved
writing so that misunderstandings during future evaluations can be
reduced.
16
8-17
AUDIT OF OAK MANAGEMENT CORPORATION'S
2008 PARK BANQUET, CONCESSION AND GRILL REVENUE
OTHERISSUES
As a result of our audit, we identified additional issues that should be addressed.
In the agreement between Oak Management and Oakland County:
• The standard Oakland County audit clause should be included, which allows the
Auditing Division, or an independent auditor hired by Oakland County, access to all
pertinent records throughout the terms of the contract and for a period of three years
following the final payment and requires the contractor to respond in writing to audit
findings within 30 days of receiving the draft report.
The current agreement allows Oakland County at any time within ninety days after Oak
Management reports their final gross receipts the right to audit the books and records of
Oak Management. Failure of Oakland County to exercise its option to audit the books of
Oak Management within this period is deemed to be conclusive evidence that the
reported gross sales are correct. There is no requirement for Oak Management to
respond to the audit report in writing.
• The term "service charge" should be defined and a maximum percentage limit should be
included.
When the exclusion of "service charge" from gross sales was negotiated, it was
understood the "service charge" was passed on as compensation to staff as "gratuities".
A definition of "service charge" was not included in the agreement; therefore there is no
assurance the excluded amounts are used for the purpose intended.
As there is no limit on the percentage charged, there is no assurance the 18% rate
assessed in 2009 will continue.
• All changes and clarifications of the terms of the agreement should be incorporated into
the agreement via formal agreement amendments rather than through letters between
the contracting parties.
• All revenue and business operations that are part of the agreement should be kept
separate from other income received by Oak Management.
By the Oakland County Parks and Recreation Commission:
• All Parks and Recreation facilities' managers should document the days each location is
open for business and the days concessions are offered to the public.
• Parks and Recreation Administration should clarify the use of sales tax exemption for
events booked under the Parks and Recreations Commission's name to ensure Oakland
County's sales tax exemption is not being used for private events.
17
8-18
ATTACHMENT A
May 20, 2009
Pamela Weipert, Manager
Oakland County Auditing Division
1200 N. Telegraph Road
Building 34 East
Pontiac, Michigan 48341-0405
Dear Ms. Weipert,
Thank you for providing a draft of the audit report to us. We have reviewed the draft of
the results and would like to respond to the various issues.
Issue 1, Business Revenue
The amounts listed pertained to coat check, linens and cancellations (deposits). Coat
check and linen charges are strictly a service, we collect a check and pay the vendor or
person responsible for the service. Golf receipts for Oakland County are treated in the
same manner. The money comes in and is paid out, it is not revenue. Deposits for
parties that are cancelled have never been considered revenue (35 years of history). If a
party cancels, Oak Management loses money. Even if the day is re -booked, the party is
generally less profitable because the lead time has been reduced and we have to offer
more incentives to book the date. In the event the deposit is forfeited, greater losses are
sustained. All of the marketing, staff time and, in some cases, food costs are expenses
that the deposit is offset against. A deposit cannot be construed as sales.
Issue 2, Gross Sales
a. Convenience Fee - We are in agreement.
b. Ceremony and Room Rental - We are in agreement.
c. Gross Sales Not Reported Under the Correct Location - It is correctly accounted
for per a letter agreement between Oakland County and Oak Management
specifying that sales be allocated to Addison because food is prepared and party is
staffed out of Addison.
d. Banquet Contracts - Contract A7300 - The correct amount was recorded in the
Sales Journal. Estimates are entered into the computer. Numbers of people could
increase (customers tend to underestimate their count) or something may be added
Addison Oaks Conference Center (248) 693-8305
Blossom Heath Inn (586) 771-2300 • Glen Oaks (248) 626-2600
Waterford Oaks = Springfield Oaks = Groveland Oaks = Independence Oaks ° Waterford Oaks Wave Pool
White Lake Oaks (248) 698-1233 • Lyon Oaks (248) 437-9200 • Bay Pointe (248) 360-0600
Red Oaks Water Park • Springfield Oaks Youth Center • The Fridge • Oakland Room
www.Oakmanagement.com
18
8-19
ATTACHMENT A (CONT.)
at the last minute. Manual changes are generally unavoidable. This allows us
greater flexibility to serve our customer. The computation for "all inclusive
pricing" is not really complicated, we break down each contract to subtract
service charge and sales tax. The customer has indicated a strong preference for
this format. The golf revenue can be added to the bottom of the contract.
e. Sales Tax - Oakland County must address this issue. If we are told a party is tax-
exempt, it will be treated in that manner.
f. Cart Sales - As was relayed to the auditors, these reports were revised in October,
2008, the changes were already incorporated at that time.
g. Vending Machine - Same comment as f.
h. Misallocated Vendor Revenue - We are in agreement.
i. Errors in Reporting Gross Sales - We are in agreement.
The rent associated with Issue 2 is negligible, the total difference would amount to
approximately $100.00 of overpayment from Oak Management.
Issue 3, Lack of Internal Controls
a. We have already had a meeting with staff to address this issue.
b. Same comment as a.
We have contemplated using the computer to number our contracts and have
rejected the idea because contract numbers can easily be tampered with, manual
contracts provide a better internal control and allow greater flexibility to service
our customers. The problems associated with the contracts appear relatively
minor.
d. Same comment as a.
With respect to the recommendation, we implemented new procedures to alleviate many
of these problems in October, 2008. These procedures are in writing and are being
reviewed by Management. This information was relayed to the auditors.
Issue 4, Lack of Internal Controls for Beverage Cart, Grill and Concession
a. New procedures for beverage cart and grill sales were already implemented in
Oct, 2008.
b. We indicate the days we are closed.
c. We will do a better job of monitoring over rings.
d. We received most of the z-tapes, however, a few were missing. The staff has been
reprimanded and will send all z-tapes to the main office.
With respect to the recommendations, inventory count and the beverage cart sheets are
included on the forms we started using in October, 2008. The auditing staff has reviewed
the new forms.
19
8-20
ATTACHMENT A (CONT.)
Issue 5, Lack of Internal Controls for Reporting Process
We are importing all numbers from the sales reports, this should eliminate errors. The
advance deposit list is being revised and reviewed for accuracy. We will also have
cancellation lists. We actually do have a written policy for procedures including
bookings, banquets and accounting forms. Again, last October, we revised all reporting
forms (in conjunction with the accounting staff) and visited each location to train the
employees on their proper usage. We will continue to evolve and elaborate on these
procedures.
Please let me know if I have addressed the issues adequately and/or if you are in
agreement with the comments. It was a pleasure working with you, your staff was
pleasant and professional.
Sincerely yours,
OAK MANAGEMENT CORPORATION
Janet Lekas
Vice President
20
8-21
Item #9
Parks Access Permit Policy
The sub -committee met to review past practices of the courtesy pass/gold cards.
Sub -committee participants included Commissioner Pecky D. Lewis, Jr., Commissioner
Richard Skarritt, Commissioner J. David VanderVeen, Commissioner John Scott,
Commissioner John McCulloch, Executive Officer Dan Stencil, and Manager of Parks
Operations Sue Wells.
The recommendation of the sub -committee was to develop the Parks Access
Permit Policy to provide access to Oakland County Commissioners, Oakland County
Parks and Recreation Commissioners and Full Time Parks staff to Oakland County
operated parks. Enclosed with the policy are appendices which include the Initial
Request Form and the Additional Request Form.
9-1
Date Drafted: I Dated Revised: I C: 09-007
05-27-09 1 1 Page 1 of 3
Parks Access Permit Policy
I. PURPOSE: To provide access to Oakland County Commissioners, Oakland County Parks and
Recreation Commissioners and Full Time Parks staff to Oakland County owned and operated
parks, pursuant to duties outlined in the State of Michigan Public Act 261 of 1965:
County and Regional Parks
Act 261 of 1965
"AN ACT to authorize the creation and to prescribe the powers and duties of county and
regional parks and recreation commissions; and to prescribe the powers and duties of county
boards of commissioners with respect to county and regional parks and recreation
commissions.
46.351 County parks and recreation commission; creation; membership; terms;
vacancy; commission as county agency; rules and regulations; compensation.
(4) The county parks and recreation commission is an agency of the county.
46.361 County and regional commissions; development and operation of facilities.
Sec. 11. A county or regional commission may plan, develop, preserve, administer,
maintain and operate park and recreational places and facilities and construct, reconstruct,
alter and renew buildings and other structures.
46.362 County and regional commissions; custody, control and management of
property.
Sec. 12. A county or regional commission shall have the custody, control and management
of all real and personal property acquired by the county or a regional commission for
public parks, preserves, parkways, playgrounds, recreation centers, wildlife areas, lands
reserved for flood conditions for impounding runoff water, and other county conservation
or recreation purposes."
Additionally, Oakland County Commissioners and Oakland County Parks and Recreation
Commissioners serve in a role as parks ambassadors to increase attendance to the Oakland County
Parks. This policy allows these individuals to become familiar with Oakland County Park's
property and facilities in order to gain the information and experiences required for them to
effectively market and promote Parks facilities, provide input regarding strategic planning and
make decisions regarding the management of Oakland County Parks.
II. PROCEDURE: Our mission is to deliver quality parks, recreation, facilities, programs, services and
maintenance through a dedicated professional Park Commission and staff that listens to the needs of
citizens, creates innovative parks, recreation facilities and programs and energizes the community for
the value of living in Oakland County. The procedure outlined below is designed to provide a
mechanism by which Commissioners and staff can assist with helping to achieve this mission
statement.
Definitions:
• "Annual Vehicle Permit'— provides access to parks for day use.
• "Parks Access Permit" — Each Parks Access Permit book includes four (4) single -use
access permits which provide single -use access to five (5) golf courses, two (2)
campgrounds, and two (2) waterparks operated by Oakland County Parks and Recreation
Commission.
• "Commissioners" — refers to both Oakland County Board of Commissioners and Oakland
County Parks and Recreation Commissioners. In situations where an Oakland County
Board of Commissioners member is also serving as a Parks Commissioner, access will be
granted for the individual, not for both positions.
"Business Reason " - The business reason should adhere to Internal Revenue Service
guidelines as follows:
o The main purpose is directly related to active County or Park -related business; the
individual utilizing the Parks Access Permit is engaged in business during the
course of using the facility; there is more than a general expectation of getting
business benefit from use of the Parks facility; OR
o The main purpose of the use of the Parks Access Permit is associated with Parks
related business and either the use thereof directly precedes or follows a
substantial business discussion.
A. Annual Vehicle Permit
1. Annual Vehicle Permits will be distributed to Commissioners and Full Time Parks
staff each December for the following calendar year, as follows:
a. Board of Commissioners will receive an Oakland County Resident
vehicle permit. The Annual Vehicle Permit provides access to Oakland
County day use parks.
b. Parks Commissioners will receive the "Parks Perks" Pass which gives
access to Oakland County day use parks as well as thirteen (13) Huron -
Clinton Metroparks.
c. Full Time Parks staff will receive an Oakland County Resident vehicle
permit. The Annual Vehicle Permit provides access to Oakland County
day use parks.
2. A copy of the Rules and Regulations for Oakland County Parks will be included
with the Annual Vehicle Permit.
3. Commissioners and staff are to adhere the Annual Vehicle Permit issued to them
to the lower corner of the driver's side of the windshield of their personal vehicle
to gain access to the parks. The Annual Vehicle Permit is not valid unless it is
adhered to the windshield of a motor vehicle.
4. Commissioners and staff will follow all Rules and Regulations of Oakland County
Parks and Recreation when using their Annual Vehicle Permit.
B. Parks Access Permits
1. In addition to the annual vehicle pass, staff will provide a form that
Commissioners may use to request Parks Access Permits for facility access each
9-3
Date Drafted: I Dated Revised: I C: 09-007
05-27-09 1 1 Page 3 of 3
Parks Access Permit Policy
December for the following calendar year. Commissioners may request up to four
(4) Parks Access Permit books for use at facilities where a fee is required. Each
Parks Access Permit book includes four (4) single -use access permits.
NOTE: In situations where an Oakland County Board of Commissioners member is also
serving as a Parks Commissioner, park access permits will be granted for the
individual, not for both positions.
2. Commissioners will be sent the "Request for Initial Distribution of Parks Access
Permits" form each December and asked to check `yes' or `no' to indicate
whether or not they would like to receive Parks Access Permits for the next year.
Completed forms will be returned to Oakland County Parks staff by January 15 so
that requests can be processed for that calendar year. Parks staff will process the
requests and distribute Parks Access Permits by January 31.
3. Parks Access Permits are to be used by Commissioners to promote, showcase, and
evaluate park facilities for purposes related to a business reason.
4. Commissioners and their guests will be asked to provide information including
their name and an email address each time a Parks Access Permit is used.
5. Commissioners may request additional Parks Access Permits by contacting the
Parks and Recreation Executive Officer, or his designee in writing by completing
the "Request for Additional Distribution of Parks Access Permits" form. A
business reason must be provided at the time of the request.
C. Evaluation and Feedback
1. Staff will send an email request as follow up to the use of each Parks Access
Permit.
2. Commissioners and their guests will be asked to complete an online survey
evaluation to provide feedback that will be used to make decisions regarding the
management of the Parks. The request for this feedback will follow their
experience at the facility where the Parks Access Permit was used.
3. The data provided on the evaluation will be analyzed by staff and used to make
corrections and improvements as needed to ensure quality experiences for guests.
4. Commissioners and/or their guests will receive a request for feedback each time a
Parks Access Permit is used.
Oakland County Parks and Recreation Commission
Form 1- Request for Initial Distribution of Parks Access Permits
Check one option below:
F-1
YES — I am interested in receiving up to four (4) Parks Access Permit books for use at
facilities where a fee is required. Each Parks Access Permit book includes four (4) single -
use access permits. I understand these permits allow me to become more familiar with
Oakland County Parks facilities, programs and services. They also provide an
opportunity to gain the information and experiences required for me to make decisions
regarding the management of the Oakland County Parks. I will also be required to
complete an online survey evaluation regarding my experience at the facility where the
access permit was used.
F-1
NO — I am not interested in receiving any Park Access Permits. I understand I am still
free to use the Oakland County Parks facilities, programs, and services by paying the
designated fee. I would also be willing to complete an online survey evaluation
regarding my experience at the facility to help make corrections and improvements as
needed to ensure quality experiences for quests.
Please complete the following:
Commissioner Name:
Address:
City:
Home Phone:
Email Address:
State: Zip:
Alt. Phone:
Number of Park Access Permit Books Requested (up to 4):
I understand the use of the Park Access Permits are for business and/or Economic Development
purposes and to promote, showcase and evaluate the Oakland County Parks. I agree to submit
feedback as requested through an online survey evaluation after use of each access permit.
Commissioner Signature:
Date:
Please fax completed form - Attn: Dan Stencil @ 248.858.1683
9-5
Oakland County Parks and Recreation Commission
Form 2 - Request for Additional Distribution of Parks Access Permits
Please complete the following:
Today's Date:
Commissioner Name:
Date Passes Needed By:
Number of Additional Park Access Permit Books Requested (up to 2):
Complete One of the Two Sections Below:
Specific Business Use Needed for:
Specific Economic Development Request for:
I understand the use of the Parks Access Permits are for business and/or economic
development purposes and to promote, showcase and evaluate the Oakland County Parks.
agree to submit feedback as requested through an online survey evaluation after use of each
access permit.
Commissioner Signature:
Date:
Please fax form - Attn: Dan Stencil @ 248.858.1683 at least 3 days before passes are needed.
Parks and Recreation Executive Officer Authorization
Approved: Not Approved:
Daniel J. Stencil Signature:
Date:
Item # 10
Waterford Oaks
2009 Barrier -Free Playground
Since fall of 2007, staff has been working on the renovation of the Court Games Area which involves
several phases of design and construction; Parking Lot Expansion, Barrier -free Playground, Restroom Renovation,
an additional Pavilion, and a Barrier -free Tree House.
Construction for Phase I - Parking Lot Expansion, awarded by the Oakland County Parks & Recreation
Commission on September 3, 2008 to ABC Paving, Inc., is currently underway and is partly funded by a Clean
Michigan Initiative/319 grant award in the amount of $190,000. The project is engineered by Giffels-Webster
Engineers.
Design and Engineering for Phase 11— Barrier -free Playground, awarded by OCPRC in August, 2007 to
Rowe, Inc., included two phases: 1) Conceptual Design Assistance for the submission of an Access to Recreation
Grant Application, which was awarded at the MRPA Conference in February, 2008 and 2) Construction Plans and
Specifications. Prior to beginning the second phase and to verify the quality of the play equipment for the custom
barrier -free playground, staff and consultants pre -qualified the playground equipment manufacturer, Sinclair
Recreation & Cre8-Play, Inc.
Construction plans, specifications and equipment shop drawings completed by Rowe, Inc. and Sinclair
Recreation for bidding, included the following:
Base Bid #1 — Construction and installation of site work for the playground that included an allowance from Sinclair
Recreation of $158,000 for the installation of the specified playground equipment.
Alternate #1 - Materials and installation of the Log Cabin
Alternate #2 - Materials and installation of the Shade Structures
Alternate #3 - Materials and installation of decorative concrete
Base Bid #2 — Materials and installation of specified landscape soils, mulch, trees and edging.
Alternate # 1 — Materials and installation of shrubs, perennials and ground covers
Staff received seven (7) proposals for construction of the Barrier -Free Playground on March 11, 2009;
three (3) of the proposals only included Base Bid #2 and one (1) was for Base Bid #1 and associated alternates.
After review, evaluation and contacting submitted references, staff and consultants selected the following two (2)
contractors and scheduled interviews.
Clarks Construction Co.
Detroit, MI
Rolar Property Services
Troy, MI
Base Bid #1- Playground Site Constructions
$277,075.00
$310,100.00
Allowance - Playground Equipment
$158,000.00
$158,000.00
Alternate #1- Log Cabin
$8,200.00
$11,800.00
Alternate #2- Shade Structures
$42,000.00
$27,300.00
Add Alternate #3- Decorative Concrete
$16,500.00
$21,900.00
Base Bid 92- Landscaping
$15,600.00
$19,800.00
Alternate #1- Landscaping
$17,900.00
$9,400.00
Grand Total
$535,275.00
$558,300.00
Recommended Total
$467,175.00
$509,800.00
10-1
After meeting with Commissioners McCulloch and Palmer, and staff from Oakland County Purchasing,
staff recommends awarding the contract to Clarks Construction Company, in the amount of $467,175, with a 5%
contingency of $23,360, for a total approved amount of $490,535, pending Contractor's agreement to the following:
1. Contractor and sub -contractors recognition of the importance and their obligation to meet and
exceed all requirements according to the approved "Access to Recreation" grant.
2. The Contractor, granting OCPRC final authorization of sub -contractors who demonstrate their
qualifications, understanding and ability to construct their relevant portions of this project as
outlined in Oakland County's Standard Construction Contract, Section 7.26.1.
3. The Contractor's accountability to address any punch list items that are required to meet the
"Access to Recreation" grant initiative at no additional cost to the project.
4. Identify and maintain a single on -site foreman as the primary project contact throughout the
duration of the project.
The 2009 Capital Improvement Budget for this project is $540,000.00. With design/engineering and
construction, the total project costs are $559,069, less $250,000 from the "Access to Recreation" grant, which equals
a total expenditure of $309,069.
This project ties in with the strategic plan 1.10 which directs staff to create a balance of park types across
the county that provide residents with a variety of park experiences and promotes equity of access. Staff is
continuing to research potential earned income opportunities to further reduce expenditures.
10-2
Item #10
Preliminary Ballot Language — 2010 Millage Renewal
Attached is the preliminary ballot language for the proposed 2010 millage
renewal.
The table below outlines the approximate millage revenue projected for specific mill
amounts. The projected revenue is based on the current projection for taxable value as of
12/31/2011 at $47,547,276,792 as provided by Oakland County Management and
Budget.
Specific mill amount
Amount per $1000 of
assessed value
Revenue projected for
2012
.25
$ 0.25
$ 11,886,819
.2415
$ 0.2415
$ 11,482,667
Item #8
Waterford Oaks
2009 `The Fridge' Refrigerated Tobo-aan Slide Repair
Upon review of the three vendor qualification submittals, there appears to be two
refrigeration options for the long-term repair of `The Fridge':
1. Concrete Encased refrigeration Tubing (similar to Pokagon State Park, IN)
2. Aluminum Panel System
Both options directly affect the fiberglass flume repair and potentially the S- I m
structure, tower, stanchions, etc_
Vendor reN ie�v included their understanding of the problem, approach to the pr(�
work plan, prior experience, staff qualifications and capabilities, fee, and any additional
information,
Therefore, based upon the vendor qualifications and previous maintenance expenditures
(see attached), staff recommends awarding a contract to Pro -Slide, Ottawa, Canada (flume
repair) and Custom Ice, Burlington, Ontario (refrigeration system) for the engineering of the
long-term repair solution in the amount of $100,000. Upon determination of the necessary repair
costs, staff will present the costs for commission approval.
M;
The Fridge Comparison Summary
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
Waterford Oaks Toboggan Complex - 1997 to 2009
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
*Revenue & Expenses are approximate
Approximate Yearly Staff Costs - $95,000
Approximate Yearly Utility Costs - $23,000
* REVENUE
* EXPENSE
The Fridge Comparison Summary
*Revenue & Expenses are approximate
Approximate Yearly Staff Costs - $95,000
Approximate Yearly Utility Costs - $23,000
Item # 11
Springfield Oaks
Utility Update
With the Michigan Department of Environmental Quality's (MDEQ) requirement for state-wide
Event Campgrounds to be licensed as a public campground, staff has been working to update the various
utility issues at Springfield Oaks. Utilities included are electrical, sanitary, water quality and sound
systems. In cooperation with the Oakland County Health Department (OCHD) and MDEQ, and
assistance from Oakland County's contracted engineer, Bada Engineering, Inc., staff will complete the
following prior to the 2009 Oakland County Fair to be held July 7-14:
1. Main -line water system testing —Completed and passed November 30, 2008
a. Testing, cleaning and inspections of the supply well, water tower and 6" water main were
completed last fall in cooperation with OCPRC staff, engineering consultants, MDEQ,
OCHD, and contractors.
2. Seasonal Water System testing and repair —Due June 15, 2009
a. With the assistance of Mike Lalone Well Drilling and the Oakland County Water
Resource Commissioner's office, OCPRC staff completed testing of the five seasonal
water lines that are used for drinking water supply connections.
i. Three of the five drinking water lines showed significant water loss, potentially
due to underground leaks.
ii. Staff is continuing to test and repair drinking water supply lines in cooperation
with OCHD.
b. Staff expects a portion, if not all drinking water supply lines, to be open by the above due
date.
3. Electrical system inventory and as -built plans — Due June 15, 2009
a. With the assistance of OCPRC staff, Bada Engineering, Inc. is completing this inventory
and as -built plans by the above due date.
b. Bada Engineering has identified deficiencies which may be addressed by staff and
contractors before the fair; however some campground areas may not have electrical
service.
c. Bada Engineering will be recommending a preliminary electrical improvement plan
based upon the campground layout prior to the fair.
d. The electrical improvement plan will be completed during FY2010 and FY2011.
4. Campground Improvements —Due June 15, 2009
a. Due to utility improvements and campground usage during the fair, staff will submit a
Campground Construction Permit to the MDEQ for a designated Carnival Group
Camping Area, Water Line Replacement and Electrical Improvements.
5. PA System inventory and improvement plans —Due December 31, 2009
a. With the assistance of OCPRC staff, Bada Engineering, Inc. will be completing the
inventory and as -built plans by the above due date
b. Even though this has no health and safety concerns, OCPRC is addressing this issue for
necessary sound improvements throughout the fairgrounds.
c. PA System Improvements will be according to the 2009 Master plan and are scheduled to
be completed during FY2010 and FY2011.
Current improvements are being completed with the approved FY2009 Capital Improvement
Budget of $360,000.
Item # 12
Strategic Plan Update
Phil Castonia, Business Development Representative, will present an update on
the Strategic Plan.
12-1
ITEM # 15
Executive Officer's Report
A. The parks system was highlighted in the media in the days surrounding the Memorial
Day weekend. Highlights include the Groveland Oaks campground being full for the
holiday (Channel 7 News), the fact Oakland County Parks provides lifeguards at its
beaches (Detroit Free Press), the summer job hunt in Michigan's tough economy (The
Oakland Press) and Guest Appreciation Days at Waterford Oaks Waterpark (The Detroit
Free Press). Additionally, Hour Detroit Magazine interviewed Executive Officer Dan
Stencil about how Oakland County Parks provides regional recreation offerings and its
commitment to a Strategic Master Plan. The magazine also shot photos on outdoor
entertaining at Addison Oaks County Park using the rental cabins as a backdrop. The
story and photos will appear on newsstands at the end of June.
B. Local students set reading records as participants in the 2009 Oakland County Parks
Reading Ranger Program held in March, which is National Reading Month. This year,
11,524 students from 163 schools participated in the program, up from 6,100 students in
2008. Students read a total of 3,571,630 pages or 1,266,747 minutes. North Hill
Elementary School in Rochester had the greatest participation with 623 readers, the entire
school population. Students and reading coordinators were each awarded a free entry
pass to Red Oaks or Waterford Oaks Waterpark. The value of the passes totaled
$148,500. Based upon past data, we expect a redemption of 18%, which will result in an
increase of $24,888 additional revenue.
C. As a follow up to the April 8 meeting, attached for your review is the Oakland County
Board of Commissioners resolution #01231, pertaining to the procedure for sale and
purchase of property. Item 2, section (d) states:
"No written offer to acquire property may be made prior to the receipt of
the necessary appraisals, and no offers to acquire property shall be made
in an amount more than the highest appraised value, except by the Board
of Commissioners' approval. A written Offer to Purchase property
contingent upon Paragraphs 2.(b) — 2.(e) may be made with approval of
the Planning and Building Committee.
D. 2009 Michigan Recreation and Park Association Membership Directories are available.
Please see Sue Kici if you are interested in a directory.
E. Upcoming Events: Attached for your information is a list of upcoming events.
15-1
APPENDIX G (previously Appendix C)
MISCELLANEOUS RESOLUTION #01231
BY: Planning and Building Committee, Charles E. Palmer, Chairperson
IN RE: DEPARTMENT OF FACILITIES MANAGEMENT - REVISION OF APPENDIX "C"
PROCEDURES FOR THE SALE, PURCHASE AND LEASING OF PROPERTY
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS pursuant to Miscellaneous Resolution #91090, #93048, and #95213,
the Oakland County Board of Commissioners established procedures for the sale,
purchase, and leasing of property; and
WHEREAS the present real estate transaction procedures for the Oakland
County Board of Commissioners require amending and/or updating to meet current
accepted real estate transaction practices; and
WHEREAS current generally accepted real estate transaction practices
dictate real estate appraiser licensing and proper environmental testing prior
to the consummation of the sale or purchase of property; and
WHEREAS the Departments of Facility Management and Corporation Counsel
recommend that the Board of Commissioner's Procedures for the Sale, Purchase
or Lease of Property (Appendix "C") be revised and adopted as follows:
Appendix C
PROCEDURE FOR SALE AND PURCHASE OF PROPERTY
(Adopted Per Miscellaneous Resolution #91090, as amended per Miscellaneous
Resolution #93048 and Miscellaneous Resolution #95213)
(SUPERSEDES ANY PREVIOUSLY ADOPTED RESOLUTIONS)
SALE OF PROPERTY
1. If there are no statutory restrictions on the sale, it may be conducted
as follows:
(a) The County Executive, with the concurrence of the Planning and
Building Committee, shall perform or obtain an appraisal, and
shall employ properly licensed and qualified real estate
appraisers, and pay the standard fee thereof, or as an
alternative, the properly licensed and qualified County appraisal
staff may be utilized by the County Executive if authorized by the
Board of Commissioners Planning and Building Committee.
No land shall be sold at less than the lowest appraised value
unless such appraised value is waived by the Board of
Commissioners.
(b) No formal negotiations for the sale of any interest in real
property, shall be undertaken until such time as the Planning and
Building Committee has authorized negotiations.
(c) All recommendations regarding sales of land shall be made in one
of the following ways at the discretion of the Planning and
Building Committee:
(1) Sale to Local Public Agencies: Prior to offering the
property for sale to the general public or via private sale
the County Executive, with the concurrence of the Planning
and Building Committee, may first offer the property for
sale to the local public agency in which the property is
located. The sale price shall not be less than the lowest
appraised value in accordance with Paragraph 1. (a) above.
The Local Agencies shall be provided written notification of
available property and be given thirty (30) days to respond.
(2) Private Sale: The County Executive, with the concurrence of
the Planning and Building Committee, may sell at private
sale for not less than the lowest current appraised value
placed upon the property in accordance with Paragraph 1. (a)
above.
(3) Public Sale: The County Executive, with the concurrence of
the Planning and Building Committee, may advertise once each
week for two successive weeks (unless otherwise prescribed
by statute) to either hold a public auction or accept sealed
offers for the sale of the property up to, but not later
than, the time fixed for opening of same in accordance with
15-2
the Oakland County Purchasing Division Procedures. The
Planning and Building Committee shall fix a minimum
acceptable value at which said property can be sold. The
minimum value shall not, unless otherwise authorized by the
Board of Commissioners, be less than the lowest appraised
value under Paragraph l.(a) above.
(4) In the case of limited use parcels (non -conforming parcels)
acquired for water, sewer and County Drains, the County
Executive, with the concurrence of the Planning and Building
Committee, shall notify the local units of government,
public agencies and adjacent property owners that the County
is proposing to sell said parcel. If the local units of
government, public agencies and adjacent property owners are
interested the County Executive shall advise them of all
information that the County has in regard to said
properties' easements being retained, soil conditions, etc.
and shall advise the local units of government, public
agencies and adjacent property owners of the deadline to
make purchase offers. If no offers to purchase are received
from the local units of government, public agencies or
adjacent property owners, the County Executive will then
advertise for public sale of such limited use property in
accordance with Paragraph 1.(c)(3) above. The Planning and
Building Committee shall make their recommendations for the
disposal of the property to the Board of Commissioners.
(5) Whenever the requirements of Paragraphs 1.(c)(1), 1.(c)(2),
1.(c)(3), or 1.(c)(4) above have been fulfilled and no sale
made thirty (30) days thereafter, the Planning and Building
Committee may authorize the County Executive to notify the
licensed brokers in the area that the lands are for sale at
not less than the lowest appraisal or highest offer
received. The County Executive shall be authorized to pay
from the proceeds of the sale the customary broker's fee.
(d) The Planning and Building Committee shall determine the amount and
type of advertising to be done, the time and place of sale,
provide for such terms as it deems reasonable, the manner in which
it is to be conducted and make reasonable rules and regulations
pertaining to the same not in conflict with the requirements of
the Rules for Oakland County Board of Commissioners.
(e) In all cases, the Planning and Building Committee may withdraw any
land authorized for sale up to the time the County Executive shall
have received a commitment thereon. At any public sale, the
Planning and Building Committee reserves the right to reject any
or all offers received.
LEASE AND PURCHASE OF PROPERTY
2. All leasing and purchasing of property shall be under the jurisdiction
of the Planning and Building Committee and shall be as follows:
(a) No formal negotiations, for the acquisition of any interest in
real property, including lease and options to purchase, shall be
undertaken until such time as the Planning and Building Committee
has authorized such negotiations.
(b) For property acquisition under $500,000 in value, the Planning and
Building Committee may rely upon the properly licensed and
qualified county appraisal staff of the County Equalization
Division or the Property Management Unit of the Department of
Facilities Management or as an alternative a properly licensed and
qualified real estate appraiser.
(c) For property acquisition over $500,000 in value the County
Executive, with the concurrence of the Planning and Building
Committee, shall employ two properly licensed and qualified real
estate appraisers or as an alternative the properly licensed and
qualified County appraisal staff, who shall appraise the property
under consideration and submit a written report concerning the
appraisal to the Planning and Building Committee.
No written o±ter to acquire property may be made prior to the
receipt of the necessary appraisals, and no offers to acquire
15-3
property shall be made in an amount more than the highest
appraised value, except by the Board of Commissioners' approval.
A written Offer to Purchase property contingent upon Paragraphs
2.(b) - 2.(e) may be made with approval of the Planning and
Buildinq Committee.
(e) Purchases for Public Utility Easements shall follow procedures in
Paragraphs 2.(b) and 2.(c).
(f) Any offer to purchase real property shall contain an environmental
due diligence period and associated contingency that would allow
the County to terminate the purchase agreement without penalty in
the event that adverse environmental conditions were encountered
during the due diligence period. During the due diligence period,
at a minimum, a written Phase One Environmental Site Assessment
shall be prepared consistent with applicable American Society of
Testing and Materials standards by a qualified professional. If
the Phase One Environmental Site Assessment identified adverse
environmental conditions, a Phase Two Environmental Site
Assessment shall be prepared and submitted. Real property rights
for sewer, water, drainage, and utility easements, and/or rights
of way may be obtained without a Phase One or Phase Two
Environmental Site Assessment if waived by the Planning and
Building Committee (and the Office of Corporation Counsel.)
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners hereby revises its Procedures for the Sale, Purchase and Lease
of Property (Appendix "C") as described above.
BE IT FURTHER RESOLVED that the said procedures as described above shall
supersede all previous procedures relative to the sale, purchase, or lease of
property.
Chairperson, on behalf of the Planning and Building Committee, I move
the adoption of the foregoing resolution.
PLANNING AND BUILDING COMMITTEE
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Upcoming Events — June 2009
Golf
June 12
Nine & Dine Couples Golf, Lyon Oaks
June 15-19
TGA Junior Golf Camp, Glen Oaks
June 14
Lesson on Golf Interview with PGA Professional Paul Simpson
June 17
Top 50 Junior Golf Tour, Lyon Oaks
June18
U.S. Kids Golf Tour, Glen Oaks
June24
First Tee Junior Golf Camp, Lyon Oaks
June25
Senior/Retirees Open, Glen Oaks
Wint Nature Center -Independence Oaks - Public Interpretive Programs:
June 6
Hearty River Hike
June 13
Tails, Tackle, and Tactics
June 20
Father's Day Canoe & Campfire
June 27
Story Time in the Garden
Mobile Recreation
June 6
Great Farmington Hills Campout - Go Fish, Go Cache, & Mobile Units
@ the Expo
June 13
Junior Counseling Program Training
June 19
Great Berkley Campout - Tower, Go Fish, Go Cache
June 20
Addison Oaks Campground Recreation - Music In The Air -
Celebrate music in all its forms & find rhythm at a campground drum
circle!
June 20
Groveland Oaks Campground Recreation - Great Outdoors - Celebrate the
outdoor playgrounds, Go Fish, Go Bike, Go Hike!
June 22-26
T.O.G.A. Extreme Teen Day Camp (1st week of camps)
June 27
Great Troy Campout - Go Fish, Go Cache
June
Summer Concert Series Kickoff
Therapeutic Recreation
June 1
Golf at Beechwoods for Individuals with Disabilities
June 5
Life Skills In-service for Individuals with Visual Disabilities
June 8
Golf at Beechwoods for Individuals with Disabilities
June 9
Golf at White Lake Oaks for Individuals with Disabilities
June 15
Golf at Beechwoods for Individuals with Disabilities
June 16
Golf at White Lake Oaks for Individuals with Disabilities
June 22
Golf at Beechwoods for Individuals with Disabilities
June 23
Golf at White Lake Oaks for Individuals with Disabilities
June 25
TGIT Social at Independence Oaks for Individuals with Developmental
Disabilities
June 26
Goalball at John Grace in Southfield for Individuals with Visual
Impairments
June 26-27
Gus Maker Tournament
June 29
Golf at Beechwoods for Individuals with Disabilities
June 30
Golf at White Lake Oaks for Individuals with Disabilities
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