FINANCE, CLAIMS AND ACCOUNTS COMMITTEE

MEETING MINUTES

September 9, 2004

A regular meeting of the Chippewa County Board of Commissioners’ Finance, Claims and Accounts Committee was held on Thursday, September 9, 2004 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, Don Cooper, Ted Postula, Aaron Hopper, and Richard Timmer

OTHER

COMMISSIONERS PRESENT: Earl Kay and James Moore

MEMBERS ABSENT: None

OTHERS PRESENT: Tim Dolehanty, County Controller, Dave Carpenter, Finance Director, Hon. Lowell Ulrich, Phil Wolf, Dr. James Terrian, Susan Short, Debbie Sirk, Barbara Fortin, Wayne Fortin, Rosemary Blashill, Margie Hank, Kelly Beaune, Brian Peppler, Brian Bartlett, Dave Jones, Michelle Brosco, Diane Cork, Marilyn McDonald, Vicky Gage, Sharon Kennedy, Richard Rathke, Jenny Lipponen, Linda Hoath, and Tim McKee

Additions / Deletions to the Agenda

Chairperson Dale called for additions or deletions to the agenda.

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

Public Comment

Chairperson Dale called for public comment. No one in attendance asked to speak.

Correspondence and Information Items: Audit Presentation

Phil Wolf of Anderson, Tackman and Company presented an overview of the 2003 county audit. He discussed changes in the audit format, audit findings, and future considerations including post-employment benefit accounting.

Agenda Items: Motel Owners RE: Clean Indoor Air Ordinance Amendment

Richard Rathke, owner of LaFrance Terrace, stated the requirements of the recently adopted Clean Indoor Air Ordinance would impose a hardship on local hotel/motel owners. He said he was particularly concerned about the requirement that no more than 20% of available rooms could be designated as smoking rooms. Mr. Rathke claimed this requirement would cause a loss in revenue and force hotel/motel owners to cover the expense of converting rooms to non-smoking quarters.

It was moved by Commissioner Cooper to repeal the maximum designated smoking room requirement from the Clean Indoor Air Ordinance. The motion DIED for lack of a second.

In response to a question posed by Commissioner Kay, Mr. Rathke stated he submitted a letter in opposition to the ordinance prior to its adoption. Commissioner Kay said the Health Department conducted three public meetings about the ordinance in addition to the public hearing. He noted the lack of participation in these meetings by the hotel/motel owners.

Commissioner Timmer said he agreed with Mr. Rathke’s position, but he would like to hear from other hotel/motel owners as well. Commissioner Kay suggested assigning the matter to the Legislation and Natural Resources Committee.

Linda Hoath, Director of the Convention and Visitors Bureau, said she polled members of her organization and found that the majority believed the regulation was unfair. She stated the rules would have a more severe impact on smaller hotel/motel operations.

It was moved by Commissioner Postula, seconded by Commissioner Timmer, to forward the request to amend the Clean Indoor Air Ordinance to the Legislation and Natural Resources Committee for further deliberation, and to schedule a public hearing on the amendment for October 11. On a voice vote, the motion was CARRIED.

Sunset Manor Proposal

Dr. James Terrian, Health Officer/Medical Director, distributed and reviewed supplemental material related to Sunset Manor. The previously submitted pro forma and operational suggestions were also discussed. Dr. Terrian reported that the owners of Sunset Manor were willing to transfer the facility to the County in exchange for payment of back taxes.

Commissioner Kay said the Health Department considered the proposal in response to sanitary conditions at the facility and concerns for patient medical care. He said moving forward with the proposal to construct a new facility was a separate issue, and that the proposal before the Committee only concerned acquisition of the Sunset Manor property.

Commissioner Cooper said the facility could not be characterized and unsanitary and unsafe because it passed all state inspections. Commissioner Timmer asked whether a new owner would be required to bring the facility into compliance with applicable codes. Dr. Terrian said the regulating agencies would be cooperative with new owners.

Chairperson Dale asked what would happen if the current manager left the facility. N response, Dr. Terrian stated problems such as that would be dealt with as they arose. Commissioner Postula asked about wage and benefit programs for Sunset Manor employees. Dr. Terrian said it would be the responsibility of the Board of Health to develop and implement a compensation plan.

It was moved by Commissioner Hopper, seconded by Commissioner Postula, to recommend that the Board proceed with the Sunset Manor purchase as presented, and that responsibility for implementing the process be assigned to the Health Department.

Commissioner Timmer suggested it would be appropriate for the Health Department to investigate financing options. Chairperson Dale said she needs assurance that the County would not be asked to provide funding for the purchase and would be held harmless in the transaction. Commissioner Cooper agreed with Commissioner Timmer and Chairperson Dale, and said these matters should be resolved before the County proceeds with the purchase.

It was moved by Commissioner Cooper to table the previous motion to proceed with the Sunset Manor purchase. The motion to table DIED for lack of a second.

On a voice vote, the motion to proceed with the Sunset Manor purchase was CARRIED, 4-1.

Court Administrator Salary Request

Commissioner Kay stated Judge Nicholas Lambros would appear before the Board at the September 13 meeting to discuss his proposal to advance the salary of the newly appointed court administrator.

Public Defender Contract

Controller Dolehanty reported that the Chief Public Defender was not available to meet with the Committee.

Deputy Clerk Vacancy

County Clerk Diane Cork reported that an employee of her office recently transferred to another department. She said she was seeking guidance from the Committee about filling the position. Ms. Cork said she was concerned about whether she would be allowed to fill the position. As an alternative, Ms. Cork proposed allowing two other employees in her office to work 40 hours per week, which would save approximately $8,800.

Chairperson Dale said Ms. Cork should fill the vacant position as quickly as possible. Commissioner Timmer suggested three to five layoffs would be necessary in order to balance the 2004 budget. Commissioner Cooper noted the past precedent of leaving vacant positions unfilled.

It was moved by Commissioner Cooper, seconded by Commissioner Hopper, to recommend increasing the hours of the County Clerk’s office to 40 hours per week until a permanent solution is found. On a voice vote, the motion was CARRIED.

Juvenile Division Work Hours

Probate Court Judge Lowell Ulrich addressed the Committee concerning a recommendation from the Personnel Committee to reduce the hours of the Circuit Court Juvenile Division from 40 hours per week to 35. He reviewed budget measures undertaken earlier in the year to address the County’s fiscal concerns. Judge Ulrich stated his department was one of few to meet budget reduction targets.

Judge Ulrich stated the reduction of hours proposed by the Personnel Committee would result in the termination of the intensive probation program. He reviewed the impact of this change on the childcare fund, and said at least one position in the Juvenile Division would be eliminated. Judge Ulrich said he recognized the external pressure the Board faced from persons within County government who claim the situation is unfair. He said the issue is not about fairness, but was about what is right for the youth and county finances.

Commissioner Kay said it was the intent of Board to see that no one lost a job as a result of the most recent budget reductions. He added that it was important for everyone to work as a team because the situation will be worse in 2005.

Commissioner Cooper reviewed the history of the 40-hour workweek in the Juvenile Division. He said it would be a mistake to eliminate the intensive probation program. Commissioner Kay said the Personnel Committee motion to place all employees on a 35-hour workweek did not include those departments operating 24-hours per day.

Chairperson Dale stated the Juvenile Division work schedule would be discussed further at the September 13 board meeting.

Interoperable Communications Consortium Proposal

OES/E 9-1-1 Director Tim McKee proposed that the County join with other U.P. Counties to form the Upper Peninsula Interoperable Communications Commission. The purpose of the new commission would be to purchase communications equipment for public safety agencies in order to enhance current systems, and enable and enhance interoperability and data sharing between jurisdictions.

It was moved by Commissioner Hopper, seconded by Commissioner Postula, to recommend approval of Resolution Number 04-17 to participate in the Interoperable Communications Consortium as presented. On a voice vote, the motion was CARRIED.

Mr. McKee then discussed the upcoming deadline impose by the State for all entities to upgrade their access to the Law Enforcement Information Network (LEIN). He reported that the Sault Tribe proposed using the County server to access the LEIN system, and that the OES/E 9-1-1 Board approved of the concept. Hardware Operations Analyst Brian Bartlett explained it would be necessary to define the County’s responsibilities in the form of a contractual agreement.

It was moved by Commissioner Timmer, seconded by Commissioner Postula, to allow the Sault Tribe and other police agencies to access the LEIN system through the County server.

Commissioner Kay asked Mr. McKee to see that a draft contract is prepared for consideration by the Board of Commissioners.

On a voice vote, the motion was CARRIED.

Mr. McKee discussed a previously approved Homeland Security grant application. He stated the grant application was approved by the State and needed to be accepted by the County.

It was moved by Commissioner Hopper, seconded by Commissioner Postula, to accept the Michigan 2004 Homeland Security Grant as presented in the amount of $526,739. On a voice vote, the motion was CARRIED.

Prosecuting Attorney Business: Budget Amendment Request – Maximus Contract

Prosecuting Attorney Brian Peppler asked that his budget be increased by $4,800 to cover the cost of the Maximus, Inc. contract approved late last year. He explained that the 2004 budget request for the department was submitted before the contract was approved, and the request was not amended to reflect the new contract. Mr. Peppler stated Maximus worked to increase revenue brought into the County from $59,000 to $71,000 in the first year of the contract.

Commissioner Postula stated the County is obligated to pay for the services rendered under the contract. Commissioner Cooper asked about the source of funds for the budget amendment.

It was moved by Commissioner Timmer, seconded by Commissioner Hopper, to approve the budget amendment as requested with the funds to be taken from the General Fund. On a voice vote, the motion was CARRIED.

Budget Amendment – Printing and Publishing

Mr. Peppler discussed charges applied against his budget for use of the copy machine in the MSU Extension budget. He claimed that the number of copies charged to his office was higher than the actual usage. He asked that his budget be amended to cover the charge for use of the copier.

Commissioner Kay suggested that copy machines in the Prosecutor’s Office and MSU Extension be switched. Commissioner Cooper stated the machine located in the MSU Extension office was placed there out of convenience for several other offices. He added that charges for copy machine use should be based on meter readings and not on an estimate of use.

Family and Domestic Violence Crime Reduction Grant

Mr. Peppler stated it was premature to discuss the Family and Domestic Violence Crime Reduction Grant because changes needed to be made to the application. Commissioner Cooper asked if the grant request included any financial obligation for the County. Mr. Peppler stated there would be no obligation until the grant was approved.

Budget Amendment - Overtime

Mr. Peppler stated he recently authorized overtime in his department because of employee absences. He stated this was necessary in order for his office to keep up with existing workload.

Commissioner Kay stated the budget should have excess funds in light of staffing reductions. Controller Dolehanty noted that the overtime line item in the Prosecuting Attorney’s budget had no funds allocated, and that the budget resolution required Board approval for amendments to any salary or wage line item.

It was moved by Commissioner Cooper, seconded by Commissioner Timmer, to recommend that funds be transferred from the salary line item to the overtime line item to cover overtime hours worked by employees in the Prosecuting Attorney’s office. On a voice vote, the motion was CARRIED.

Chairperson Dale recognized Barbara Fortin, President of AFSCME Local 1552, who asked to address the Committee. Ms. Fortin said she appreciated everyone’s passion regarding finances, but wished to assure the Committee that the Union has never targeted anyone. The Union membership took the position that the 40-hour workweek matter is a fairness issue. She said the County owes fairness to the employees, to the community, and to the Union. Ms. Fortin said the Union wants to work with the Board and would do anything to prevent layoffs, as was stated when the Union met informally with all Commissioners.

Title IV-D Cooperative Reimbursement Contract

The Committee received a request from the Prosecuting Attorney to renew the Title IV-D Cooperative Reimbursement Contract for the Support Coordinator program.

It was moved by Commissioner Cooper, seconded by Commissioner Hopper, to recommend renewal of the Title IV-D Cooperative Reimbursement Contract, as presented. On a voice vote, the motion was CARRIED.

Request for Part-Time Employee Health Insurance

Controller Dolehanty stated he recently received a request from a part time employee to be included in the County’s health insurance benefit, with the full cost to be paid by the employee. He said there is currently no policy in place that addresses the health insurance benefit, and that he was not authorized to make the decision on behalf of the County.

Commissioner Postula noted that the action would present added liability to the County because the insurance pool is self-funded. Commissioner Hopper suggested that the matter be referred to the Personnel Committee.

It was moved by Commissioner Cooper, seconded by Commission Hopper, to table the part-time employee health insurance benefit proposal. On a voice vote, the motion was CARRIED.

Pathways Substance Abuse Services RE: P.A. 2 Liquor Tax

The Committee reviewed a letter from Pathways Substance Abuse Services requesting that the County release P.A. 2 Liquor Tax funds as required by statute.

It was moved by Commissioner Cooper, seconded by Commissioner Hopper, to recommend that P.A. 2 Liquor Tax funds be released to Pathways Substance Abuse Services as required by statute. On a voice vote, the motion was CARRIED.

Copy Machine Maintenance Agreements

Controller Dolehanty noted the copy machine maintenance agreements covered repairs to all of the County’s copy machines and had to be renewed each year.

It was moved by Commissioner Timmer, seconded by Commissioner Postula, to recommend approval of the annual copy machine maintenance agreements as presented. On a voice vote, the motion was CARRIED.

Claims and Accounts

Finance Director Dave Carpenter reviewed the monthly claims and accounts report.

It was moved by Commissioner Cooper, seconded by Commissioner Postula, to recommend the approval of general fund claims totaling $233,760.72, other fund claims of $217,695.73, payroll of $522,746.77 and health department claims of $426,076.30, total claims of $1,400,279.52, vouchers 36587 through 36787 and I-1 through I-181. On a voice vote, the motion was CARRIED.

Set Date to Discuss Collective Bargaining Strategies

The Committee discussed available dates to discuss collective bargaining strategies.

It was moved by Commissioner Timmer, seconded by Commissioner Cooper, to meet on Thursday, September 16 at 5:00 p.m. to discuss collective bargaining strategies. On a voice vote, the motion was CARRIED.

Committee Comments

Commissioner Hopper suggested that the resolution regarding the summer tax collection be discussed at the September 13 Board of Commissioners meeting.

It was moved by Commissioner Hopper, seconded by Commissioner Postula, to place the summer tax collection resolution on the September 13 Board of Commissioners meeting agenda. On a voice vote, the motion was CARRIED.

Chairperson’s Comments

Chairperson Dale offered no additional comments.

Adjourn

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

Chairperson Dale declared the meeting adjourned at 7:37 p.m.

__________________________________ __________________________________

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

RESOLUTION NO. 04-16

RESOLUTION TO SUPPORT THE PROPOSAL TO COLLECT

COUNTY GENERAL FUND TAXES IN JULY AND

TO CONTINUE COUNTY REVENUE SHARING

WHEREAS, Governor Granholm, in her proposed FY 2004/2005 budget for the state of Michigan, completely eliminated $183.5 million in revenue sharing payments to counties, and proposed that the county general fund millage be collected in July instead of December, with the funds collected twice within the counties’ fiscal year to be reserved so that counties may withdraw down an amount each ensuing year equal to the eliminated revenue sharing payment plus inflation, and

WHEREAS, many counties and legislators voiced opposition to the July tax collection due to concern about the effect it would have on taxpayer’s escrow accounts, and many counties were skeptical that the state would actually restore revenue sharing when the reserve accounts were depleted, and

WHEREAS, counties worked closely with the Michigan Department of Treasury to modify the proposal to have the summer tax collection phased in over a three year period, thereby lessening the impact upon taxpayers, and

WHEREAS, the elimination of county revenue sharing without any method of replacement would create a shortfall of $1.1 million in the county’s 2004 Budget and $1.7 million in the 2005 Budget, and would be financially devastating to county programs and services, and

WHEREAS, if the amount eliminated from the state budget was spread equally among local units that receive statutory revenue sharing, Chippewa County would receive a 17% reduction, and if that amount was spread among local units according to the revenue sharing formula, Chippewa County would receive a 35.6% reduction, and

WHEREAS, any one of these other alternatives would threaten Chippewa County’s ability to provide many of its current non-mandated services to the residents, and the revised proposal establishes a revenue sharing reserve fund that will replace the loss of state revenue sharing dollars until approximately 2011 for Chippewa County, and

WHEREAS, the revised proposal to move the collection date of the county general fund millage to July would result in no annual tax increase for residents, other than that which occurs through inflation, but would require that residents pay one-third of the county general fund millage amount in July over a three year period, which would result in the early payment of $84 on $100,000 home with a taxable value of $50,000, and

WHEREAS, farmers and senior citizens are allowed to defer paying summer taxes until the