FINANCE, CLAIMS AND ACCOUNTS COMMITTEE

MEETING MINUTES

December 4, 2003

A regular meeting of the Chippewa County Board of Commissioners' Finance, Claims and Accounts Committee was held on Thursday, December 4, 2003 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, Chairperson, Aaron Hopper, Richard Timmer, Don Cooper and Ted Postula

OTHER

COMMISSIONERS PRESENT: Earl Kay and James Moore

MEMBERS ABSENT: None

OTHERS PRESENT: Tim Dolehanty, County Controller, Dave Carpenter, Finance Director, Sue Short, Court Administrator, and Bonnie Southworth

Additions / Deletions to the Agenda

Chairperson Dale called for additions or deletions to the agenda.

It was moved by Commissioner Hopper, Seconded by Commissioner Timmer, to approve the agenda as presented. On a voice vote, the motion was CARRIED.

Public Comments

Chairperson Dale called for pubic comments. No public comments were offered.

Correspondence and Information Items

The monthly Treasurer's Report and Travel Report were acknowledged.

Agenda Items: Multi-Purpose Collaborative Body Presentation

Ms. Bonnie Southworth, Chairperson of the Chippewa County Multi-Purpose Collaborative Body (MPCB), asked the Committee to support the MPCB application for $5,000 in 2% funds from the Bay Mills Indian Community to fund a Prevention Coordinator position. She explained that State funding for the position was terminated on October 1, but each collaborative body was required to continue to function. Ms. Southworth reviewed the MPCB budget and ongoing coordination with Mackinac County.

Commissioner Kay noted the State has placed the County in a bad position by cutting funds for the MPCB, and yet requiring Counties to continue the function. Commissioner Cooper stated his opinion that the MPCB program was an ill-conceived plan that was not properly implemented or funded by the State.

Commissioner Timmer suggested tabling any action until other State budget cuts are known. Ms. Southworth said the MPCB would consider cutting the Prevention Coordinator position to part time if funds for a full-time position were not available. Commissioner Kay advised that it would be helpful to know more detail about grant funds generated by the MPCB. Ms. Southworth agreed to attend a future Committee meeting to discuss the funding petition.

FY 2004 Budget Report and Meeting Date

County Controller Tim Dolehanty told the Committee a final budget recommendation could not be made until cuts in State funding were made known. State officials postponed announcing cuts for another week, making it impossible to complete a realistic County budget. Mr. Dolehanty reported a fee increase of more than 87% for stop-loss coverage in the Blue Cross/Blue Shield health insurance premium, meaning an additional $87,000 would have to be budgeted for this coverage.

Committee members agreed to hold a special meeting on Monday, December 22 to discuss and consider adoption of the 2004 budget.

Blue Cross/Blue Shield Administrative Services Contract

The Committee continued discussion about the fee increase imposed by Blue Cross. Commissioner Timmer suggested contacting the Attorney General to protest the extreme nature of the fee increase. Commissioner Cooper commented that it may be time to review other health insurance programs.

It was moved by Commissioner Timmer, seconded by Commissioner Hopper, to recommend sending a letter to Blue Cross / Blue Shield of Michigan voicing disapproval of the fee increase, and sending a letter to the Michigan Attorney General questioning the validity of the increase. On a voice vote, the motion was CARRIED.

Hartford Life Administrative Services Agreement

Mr. Dolehanty briefly reviewed the annual Administrative Services Agreement submitted by Hartford Life Insurance Company for a voluntary pension program.

It was moved by Commissioner Timmer, seconded by Commissioner Hopper, to recommend approval of the Administrative Services Agreement submitted by the Hartford Life Insurance Company as presented. On a voice vote, the motion was CARRIED.

P.A. 511 Community Corrections Program

The Committee reviewed the proposed annual P.A. 511 Community Corrections Program contract. It was noted that the amount budgeted for Chippewa County included $28,219 for community service work and $23,244 for electronic monitoring.

It was moved by Commissioner Postula, seconded by Commissioner Timmer, to recommend approval of the P.A. 511 Community Corrections Program contract as presented. On a voice vote, the motion was CARRIED.

Fixed Assets Management Program

Mr. Dolehanty asked the Committee to consider a revision to the Fixed Assets Management Program policy to set the minimum value of fixed assets included in the inventory at $5,000. He noted this was the figure recommended by the Auditors several years ago, but the adopted policy stated the value was $500.

It was moved by Commissioner Timmer, seconded by Commissioner Postula, to set the minimum value of fixed assets included in the County inventory at $5,000.

Commissioner Cooper expressed concern that the $5,000 figure might be too high. Finance Director Dave Carpenter said the County would continue to document all capital items purchased, but only those items with a value of $5,000 or higher would be included in the fixed assets inventory submitted for auditing purposes.

On a voice vote, the motion was CARRIED.

FY 2003 Budget Transfers

Mr. Carpenter presented the following amendments to the Fiscal Year 2003 General Fund and Animal Shelter Construction Fund budgets and recommended their approval.

It was moved by Commissioner Hopper, seconded by Commissioner Timmer, to recommend approval of the Fiscal Year 2003 budget amendments as presented. On a voice vote, the motion was CARRIED, 4-1.

Claims and Accounts

Mr. Carpenter reviewed the monthly claims and accounts report.

It was moved by Commissioner Postula, seconded by Commissioner Timmer, to recommend the approval of general fund claims totaling $151,019.92, other fund claims of $90,853.54, payroll of $515,309.78 and health department claims of $372,947.66, vouchers 34694 through 34875 and L-1 through L-163. On a voice vote, the motion was CARRIED.

Committee Comments

Commissioner Kay read acknowledgements received from State Senator Jason Allen and Congressman Bart Stupak.

Commissioner Cooper stated it would be appropriate to adopt the 2% pay increase for non-union employees independent of the 2004 budget.

It was moved by Commissioner Cooper to adopt the 2% pay increase for non-union employees. The motion DIED for lack of a second.

Committee members noted the pay increase was incorporated into the proposed 2004 budget.

Chairperson's Comments

Chairperson Dale had no additional comments.

Adjourn

It was moved by Commissioner Timmer, seconded by Commissioner Hopper, to adjourn the meeting. On a voice vote, the motion was CARRIED.

Chairperson Dale declared the meeting adjourned at 6:17 p.m.

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Timothy J. Dolehanty, AICP, Recorder Rita Dale, Committee Chairperson