FINANCE, CLAIMS AND ACCOUNTS COMMITTEE
MEETING MINUTES
March 6, 2003
A regular meeting of the Chippewa County Board of Commissioners' Finance, Claims and Accounts
Committee was held on Thursday, March 6, 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, Jim Moore (voting), Don Cooper
and Richard Timmer
MEMBERS ABSENT: Ted Postula
OTHER
COMMISSIONERS PRESENT: Earl Kay
OTHERS PRESENT: Tim Dolehanty, County Controller, Dave Carpenter, Finance Director, Richard Askwith,
Friend of the Court, Joy Anderson, Friend of the Court Office Manager, ad Tim McKee,
OES/E-9-1-1 Director
Additions / Deletions to the Agenda
Chairperson Dale called for additions or deletions to the agenda. It was noted that a request from the Friend
of the Court to establish a part-time clerical position was referred from the Personnel Committee, and that the
request would be added to the agenda. The agenda was declared approved as amended.
Public Comments
Chairperson Dale called for pubic comments. No public comments were offered.
Agenda Items: Friend of the Court Request for Part-Time Employee
Friend of the Court Richard Askwith and Office Manager Joy Anderson appeared before the committee to
follow-up on their proposal to end the co-op student position and replace it with a regular part-time employee.
Ms. Anderson stated the change would be beneficial to the department because the employee would be more
committed to the work of the office. She asked that the change take place on May 1, with the part-time
employee working 20 hours per week at grade 6 as a clerk-typist.
The Committee reviewed the fiscal impact of the proposed change. Mr. Askwith noted most of the cost
associated with the change would be offset with funds from the State cooperative reimbursement program.
He calculated the additional cost to the County to be approximately $225 annually.
Commissioner Cooper stated the co-op student program was good for the student and for the County. He
expressed concerns about the potential for permanent part-time positions to become full-time positions.
Mr. Askwith explained there was not intention of letting the position evolve to full-time.
It was moved by Commissioner Hopper, supported by Commissioner Moore, recommendation of
approval of the request to establish a permanent part-time clerk typist position in the Friend of the
Court office.
Commissioner Timmer suggested investigating other opportunities for filling the position, such as JTPA.
Chairperson Dale asked that the Friend of the Court report back to the committee regarding their workload
after six months.
On a voice vote, the motion was CARRIED, 4-1.
Substance Abuse Education Contract
A memorandum from Sheriff Jeff Moran regarding the substance abuse education contract was reviewed. It
was noted that the proposed agreement would cost $5,280, an increase of $5.00 per hour over the 2002 rate.
Controller Tim Dolehanty relayed Sheriff Moran's recommendation that the contract renewal be approved.
Commissioner Cooper asked to have the agency or statute mandating this service identified for future
reference.
It was moved by Commissioner Cooper, supported by Commissioner Hopper, to recommend approval
of substance abuse education contract with Upper Michigan Behavioral Health Service at a cost not to
exceed $5,280.00. On a voice vote, the motion was CARRIED.
MMRMA Renewal
County Controller Tim Dolehanty presented a proposed contract to renew a liability insurance premium with
the Michigan Municipal Risk Management Authority. In addition to the renewal cost, he explained that
insurance underwriters suggested adding to the member loss fund deposit. Mr. Dolehanty explained these
funds are used to offset the cost of claims against the County up to $75,000, and that the suggested amount is
based on the County's past experience. Mr. Dolehanty recommended utilizing a recent credit from the
insurance agency to increase the member loss fund.
It was moved by Commissioner Hopper, supported by Commissioner Timmer, to recommend renewal
of the liability insurance policy with the Michigan Municipal Risk Management Authority as presented
at a cost of $129,136, and to apply the $9,625 credit to the member loss fund. On a voice vote, the
motion was CARRIED.
Meridian Consultants Liability Coverage and Professional Services Agreement
The Committee reviewed a letter from Meridian Consultants concerning the required professional liability
insurance coverage necessary for their contract for services on the remonumentation program. Mr. William
Lohff of Meridian Consultants stated in his letter that Meridian has not carried professional liability insurance
since 1991 and that they cover their mistakes at their cost to the satisfaction of their clients.
Controller Dolehanty stated the coverage required is consistent with that required for all service contracts
with the County. He also stated the County Surveyor, as the official designate to oversee the project, has
recommended this coverage be required of all contractors working on the remonumentation project.
It was move by Commissioner Moore, supported by Commissioner Timmer, to recommend approval of
the professional services agreement with Meridian Consultants for work on the remonumentation
program, and that the professional liability insurance requirement not be waived. On a voice vote, the
motion was CARRIED.
Blue Cross Amendment to Administrative Services Contract
Controller Dolehanty presented a draft amendment to the administrative services contract between the County
and Blue Cross and Blue Shield of Michigan. He stated the County was asked to approve this amendment in
order to document consistency with requirements of the Health Insurance Portability and Accountability Act
of 1996 (HIPAA). Without the amendment, Blue Cross would not be permitted to provide information
needed by the County in order to properly invoice participants in the health insurance pool.
It was moved by Commissioner Hopper, supported by Commissioner Moore, to recommend approval
the amendment to the administrative services contract between the County and Blue Cross and Blue
Shield of Michigan as presented. On a voice vote, the motion was CARRIED.
FEMA Supplemental Grant
OES/E-9-1-1 Director Tim McKee appeared before the committee to seek authorization to apply for federal
funds under the Supplemental Appropriations Act for Further Recovery From and Response to Terrorist
Attacks. He stated Chippewa County is eligible to receive $17,318.15 to be used for the purpose of updating
Emergency Operations Plans.
It was moved by Commissioner Hopper, supported by Commissioner Moore, to recommend
authorizing OES/E-9-1-1 Director Tim McKee to apply for federal funds as presented.
Chairperson Dale asked Mr. McKee to explain what supplies he would acquire under this program. After a
brief discussion, she reminded Mr. McKee of his obligation to follow the purchasing procedure adopted by
the Board of Commissioners.
On a voice vote, the motion was CARRIED.
CORE Technologies LEIN Interface
Mr. McKee asked the committee to authorize purchase of the CORE Technology software to access the Law
Enforcement Information Network (LEIN). He stated this change would allow more convenient access to
LEIN information for many users including the City of Sault Ste. Maries, the Bay Mills Tribe, and the County
Sheriff's Department. Mr. McKee also mentioned the migration of State users to this software and would
ultimately result in a cost savings to the County.
Commissioner Cooper confirmed the involvement on the Information Systems Department with this project.
Mr. McKee explained how various agencies would be able to utilize this system when it is installed.
It was moved by Commissioner Hopper, supported by Commissioner Timmer, to recommend
authorizing the purchase of the CORE Technology software at a cost not to exceed $12,000. On a voice
vote, the motion was CARRIED.
Environmental Health Fee Changes
Commissioner Hopper, a member of the Board of Health, explained why that Board recommended doubling
most environmental health fees. He referred to a fee schedule provided to the entire Committee as he
discussed anticipated revenue enhancements.
Committee members discussed a general reluctance to raise fees to the levels proposed, but stated their
recognition of budget concerns faced by the Health Department. Commissioner Hopper stated these fees
were last increased about four years ago. Commissioner Kay stated the proposed increases were
recommended by the Board of Health in response to revenue cuts at the state level. Commissioner Timmer
suggested strategies should be developed to ensure increases of this magnitude occur infrequently.
It was moved by Commissioner Hopper, supported by Commissioner Moore, to recommend approval
of the environmental health fees as proposed, and that the fee schedule be reviewed annually.
The Controller was directed to include a review of county fees in the annual budget development process.
On a voice vote, the motion was CARRIED.
Joint Building Authority Funding Request
Controller Dolehanty presented a letter from the Joint Building Authority JBA requesting release of their fund
balance of $29,908. The JBA stated the funds would be used to replace the front doors of the City-County
Building, making the entrance compliant with the American with Disabilities Act.
Controller Dolehanty informed the Committee that the JBA did not include a quote for the work with their
request to use the funds. He added that the amount quoted by the JBA as the fund balance was in error.
According to the most recent audit, Mr. Dolehanty reported the fund balance was actually $202,264. The
Controller then advised the Committee that the current fund balance was amassed in violation of the JBA
Article of Incorporation. He stated the fund balance of the JBA is supposed to be capped at $50,000; with the
excess balance being applied as a credit to the following years rental payments due from the City and the
County.
Commissioner Cooper suggested responding to the request by calling the JBA's attention to the fund balance
issue, and requesting quotes for the replacement of the doors. Commissioner Kay proposed that the County
request a refund of the fund balance as required in the Article of Incorporation.
It was moved by Commissioner Cooper, supported by Commissioner Moore, to recommend asking the
JBA to refund the prorated portion of the fund balance amount less the receivable amount due to the
JBA for rent, and that no funds be allocated for replacement of the doors until proper quotes are
received. On a voice vote, the motion was CARRIED.
Budget Amendments
Finance Director Dave Carpenter presented budget amendments for consideration by the Committee. He
recommended adding a revenue amount of $20,000 in anticipation of plat book sales, and to allocate an
additional $15,000 in expenses to the remonumentation cost center (no. 245) and $15,000 to the
miscellaneous cost center (no. 884) to offset the cost of the Alcalde and Fay contract.
It was moved by Commissioner Moore, supported by Commissioner Timmer, to recommend approval
of the budget amendments as proposed by the Finance Director. On a voice vote, the motion was
CARRIED, 4-1.
Claims and Accounts
Finance Director Carpenter reviewed the monthly claims and accounts report.
It was moved by Commissioner Cooper, supported by Commissioner Timmer, to recommend the
approval of general fund claims totaling $328,746.86, other fund claims of $109,777.65, payroll of
$500,201.43 and health department claims of $352,595.97, vouchers 32939 through 33060 and C-1
through C-165. On a voice vote, the motion was CARRIED.
MMRMA Board of Directors
Controller Dolehanty referred to a letter from the Michigan Municipal Risk Management Authority
concerning an open seat reserved for an elected or appointed county official. He stated he was interested in
serving on that board if such service met with the approval of the Board of Commissioners. Mr. Dolehanty
explained that, if selected to complete the term of office, any expenses incurred would be borne by the
Authority and not by Chippewa County.
It was moved by Commissioner Hopper, supported by Commissioner Cooper, to recommend approval
of the County Controller's candidacy to serve on the Michigan Municipal Risk Management Authority
Board of Directors. On a voice vote, the motion was CARRIED.
Travel
Commissioner Cooper asked to have a summary of travel requests prepared each month for review by the
Committee. The Controller was requested to see that the monthly travel summary is prepared.
Committee Comments
Commissioner Cooper asked about the jail expansion issue that appeared in the recent report provided by
Alcalde and Fay. Chairperson Dale explained that the proposal was exploratory and would be overseen by
the Building, Grounds and Jail Committee if it were to come to fruition.
Commissioner Timmer asked that the Controller prepare projected revenue reports each month for review by
the Committee. He stated he is concerned about additional revenue reductions as the State trims its budget.
Commissioner Kay stated his intention to have a work session to review the fiscal situation and to establish
goals for the coming year. He anticipated this work session would happen in April.
Chairperson's Comments
Chairperson Dale had no additional comments.
Adjourn
Chairperson Dale declared the meeting adjourned at 6:43 p.m.
__________________________________ __________________________________
Timothy J. Dolehanty, AICP, Recorder Rita Dale, Committee Chairperson