FINANCE, CLAIMS AND ACCOUNTS COMMITTEE
MEETING MINUTES
November 7, 2002
A regular meeting of the Chippewa County Board of Commissioners' Finance, Claims and Accounts
Committee was held on Thursday, November 7, 2002 at the Chippewa County Courthouse in Sault Ste.
Marie, Michigan. Chairperson Dale called the meeting to order at 5:00 p.m. with a quorum present.
MEMBERS PRESENT: Rita Dale, Aaron Hopper, Earl Kay (voting), Don Cooper, and Bernard
LaJoie
MEMBERS ABSENT: Gary McDowell and Ted Postula
OTHERS PRESENT: Tim Dolehanty, County Controller, Dave Carpenter, Finance Director,
Richard Timmer, Charles Moser and Akemi Gordon
Additions / Deletions to the Agenda
Chairperson Dale called for changes to the agenda. Hearing none, the agenda was declared approved as
presented.
Correspondence and Information Items
The monthly Treasurer's Report and notice of 2003 standard mileage rate decline were acknowledged.
Agenda Items: Two Percent Funds - Physical Therapy Joint Partnership
Controller Tim Dolehanty reviewed supplemental information provided by Dr. Mary Beth Skupien
regarding the physical therapy joint partnership. In response to an earlier inquiry from the Board of
Commissioners, it was noted that the beneficiaries of the project would be tribal members, non-Tribal
spouses, family members, Tribal employees and Medicaid patients. The Controller also quoted from
Section 8 of the Consent Judgment that established two percent payments stating, "Each tribe shall
determine which local unit or units of government shall receive payments and the amounts thereof;
provided, however, the guidelines governing the tribes in making said determinations shall be based upon
compensating said local units of government for governmental services provided to the tribes and the
impacts associated with the existence and location of the tribal casino in its vicinity."
The Committee questioned the appropriateness of describing this request as a county project. Chairperson
Dale observed that the contract included with the supplemental information had more to do with War
Memorial Hospital than it did with the County. Commissioner Kay observed the $49,544 project includes
$41,544 for costs to renovate and equip the Chi Mukwa facility, which is owned by the Tribe.
It was moved by Commissioner Kay, supported by Commissioner Hopper, to recommend returning
the check submitted for the physical therapy joint partnership to the Tribe because the project does
not fulfill the intended purpose of payments to be made to local units of government under the
Consent Judgement. On a voice vote, the motion was CARRIED.
Ongoing Agreement
Controller Dolehanty presented a draft local impact funds agreement between the County and the Sault Ste.
Marie Tribe of Chippewa Indians. He stated the purpose of such an agreement would be to establish an
annual general fund contribution, allowance of specific project funding in addition to the general fund
contribution, and establishment of a committee to process funding requests for specific projects. Mr. Dolehanty also noted the draft agreement was consistent with Section 8 of the Consent Judgment that
established two percent payments which states, "each local unit of government shall receive no less than an
amount equivalent to its share of ad valorem property taxes that would otherwise be attributed to the class III
gaming facility is that site were subject to such taxation."
Commissioner Cooper stated the annual general fund contribution should take into consideration all Tribal
lands located in the County. Richard Timmer commented that ongoing negotiations between the Tribe and
the State regarding the sales tax might have an impact on an agreement with the County. Chairperson Dale
stated the draft contract needs work, but is moving in the right direction.
Resolution to Approve Annual MERS Benefit E Increase
The Committee confirmed this is the annual resolution provided by MERS, the County's pension carrier, to
allow for a 2% increase in the retirement allowance.
It was moved by Commissioner Cooper, supported by Commissioner LaJoie, to recommend
approval of the Uniform Resolution for Adopting Benefit Program "E" Increase to be Effective on
adjustment date of January 1, 2003. On a voice vote, the motion was CARRIED.
Sick and Accident Insurance Carrier
Controller Dolehanty reviewed several proposals submitted by insurance carriers interested in providing
short term and long-term disability insurance. He reported that the carrier recommended for the short-term
disability coverage, the Baltimore Life Insurance Company, will waive the one year pre-existing condition
limitation if the County agrees utilize their company as its life insurance carrier. The Controller also stated
the cost of the short-term disability and long-term disability policy proposed by Unum Provident were less
than projected.
The Committee discussed various components of the recommended insurance plans. It was confirmed that
both of the proposed programs complied with the provisions of County labor contracts.
It was moved by Commissioner Hopper, supported by Commissioner LaJoie, to recommend
approval of the short-term disability and life insurance policies proposed by the Baltimore Life
Insurance Company, and the long-term disability insurance policy proposed by Unum Provident.
On a voice vote, the motion was CARRIED.
Accumulated Sick Leave Payment Schedule
Controller Dolehanty asked the Committee to considered the method by which accumulated sick leave
would be paid out to applicable employees. He stated the County could make a single, lump sum payment
to the employees or may pay in three equal annual installments.
The Committee discussed the advantages and disadvantages of each option. It was also noted that both
options are consistent with the reporting requirements of Government Accounting Standards Board (GASB)
statement number 34.
It was moved by Commissioner LaJoie, supported by Commissioner Hopper, to recommend
providing accumulated sick leave compensation to applicable employees in three equal annual
installments. On a voice vote, the motion was CARRIED.
Carpet Installation
The Committee reviewed carpet purchase and installation quotes gathered by the County Clerk. Proposals
from Shunk Furniture, The Carpet Mart, Northern Hospitality and Floors & Moore were considered.
It was moved by Commissioner Cooper, supported by Commissioner Kay, to recommend approval
of the quote submitted by The Carpet Mart for $1,300.73 as the most complete proposal. On a voice
vote, the motion was CARRIED.
Contract and Agreements: Personal Computers
Controller Dolehanty presented the results of a request for proposals (RFP) for ten personal computers. Bids
were received from five prospective vendors. A list of computers to be replaced was also reviewed.
It was moved by Commissioner Cooper, supported by Commissioner LaJoie, to recommend
acceptance of the proposal from National Office Products for ten personal computers at a cost of
$16,999.70.
Commissioner Kay asked about the process to be followed to assure all required components are present on
the new computers. The Controller stated the information systems department staff would test each
machine prior to installation to determine the presence of the required components.
On a voice vote, the motion was CARRIED.
FY 2003 Budget
Controller Dolehanty distributed revised budget worksheets resulting from discussions at the previous
budget work session. A revised draft of the appropriations resolution was also presented.
Commissioner Hopper stated representatives of the rural bus program were present to discuss the impact
elimination of funding would have on their programs. Commissioner Cooper suggested moving $25,000
out of the correctional facility budget. He stated this could be done without harming jail operations.
Commissioner Kay suggested allocating funds from the fund balance. Commissioner Cooper reminded the
Board of their policy to set the minimum fund balance of the general fund at no less than fifteen percent of
baseline revenue.
Akemi Gordon, Finance Director for the Eastern Upper Peninsula Transportation Authority (EUPTA),
stated her organization continues to review options to reduce expenses. She indicated health insurance was
a major expense.
Charles Moser, Director of EUPTA, said the organization would appreciate any funding received from the
County.
The Committee stated they would continue to search for ways to fund EUPTA in fiscal year 2003. It was
suggested that inclusion of EUPTA in the County's health insurance pool should be explored to determine if
a cost savings would be realized.
Resolution to Continue Participation in S.A.N.E.
A resolution to continue Chippewa County's participation in the Straits Area Narcotics Enforcement
program was considered by the Committee. It was noted that the County already approved a contractual
agreement to continue its participation.
It was moved by Commissioner Kay, supported by Commissioner Hopper, to recommend approval
of the Resolution to Approve the Intergovernmental Task Force Agreement to continue participation
in the Straits Area Narcotics Enforcement program. On a voice vote, the motion was CARRIED.
Claims and Accounts
Finance Director Carpenter reviewed the monthly claims and accounts report.
It was moved by Commissioner Kay, supported by Commissioner Cooper, to recommend the
approval of general fund claims totaling $165,279.23, other fund claims of $628,389.41, payroll of
$483,097.66 and health department claims of $408,806.74, vouchers 32215 through 32394 and K-1
through K-163, with amended totals to be presented at the regular Board meeting scheduled for
November 12. On a voice vote, the motion was CARRIED.
Collective Bargaining Strategies
It was moved by Commissioner Hopper, supported by Commissioner Kay, to enter into a closed
session to discuss strategies connected with the negotiation of a collective bargaining agreement with
the American Federation of State, County and Municipal Employees, AFL-CIO Local 946 of
Michigan, pursuant to Section 8(c) of the Open Meetings Act, Act 267, P.A. 1976, as amended, being
MCL 15.268(c). A roll call vote was taken as follows: LaJoie - Yes; Hopper - Yes; Kay - Yes;
Cooper - Yes; Dale - Yes. Motion CARRIED.
It was moved by Commissioner LaJoie, supported by Commissioner Postula, to resume the open
session meeting of the Personnel Committee. A roll call vote was taken as follows: Hopper - Yes;
Kay - Yes; Cooper - Yes; LaJoie - Yes; Dale - Yes. Motion CARRIED. Motion CARRIED.
Committee Comments
Committee members offered no additional comments.
Chairperson's Comments
Chairperson Dale had no additional comments.
Adjourn
It was moved by Commissioner Kay, supported by Commissioner Cooper, to adjourn the meeting.
On a voice vote, the motion was CARRIED. The meeting was adjourned at 6:15 p.m.
__________________________________ __________________________________
Timothy J. Dolehanty, AICP, Recorder Rita Dale, Chairperson