FINANCE

Amended 5/4/05

FINANCE

April 20, 2005

Minutes

Members Present: Lisa Dedden, Chris Swope, Curtis Hertel, Andy Schor, Marc Thomas, Steve Dougan and Board Chairperson Grebner

Members Absent: None

Others Present: Jerry Ambrose, Bruce Bragg, Bob Smith, Doug Stover, Patricia Cook, Jared Cypher, Tim Gill, Sue Pigg and others

The meeting was called to order by Chairperson Dedden at 6:05 p.m. in the Personnel Conference Room of the Human Services Building, 5303 S. Cedar, Lansing.

Approval of the March 16 and April 6, 2005 Minutes

MOVED BY COMM. DOUGAN, SUPPORTED BY COMM. SCHOR, TO APPROVE THE MARCH AND APRIL 6 MINUTES AS AMENDED. MOTION CARRIED UNANIMOUSLY.

Additions to the Agenda

1. Substitute Resolution

7b. Additional Information

7c. Resolution as approved by the County Services Committee.

7d. Facilities – Resolution Authorizing the Emergency Purchase of a Domestic Hot Water Boiler at the Ingham County Correctional Facility

9a. EDC – Resolution Conditionally Approving the Establishment of a Joint Local Development Finance Authority (LDFA) Tax Increment Financing Area by the City of East Lansing and the City of Lansing, to be known as the Lansing Regional Smartzone

9b. EDC – Resolution to Exempt County Property Tax Revenues from Capture in the Expanded East Lansing Downtown Development Authority District

MOVED BY COMM. DOUGAN, SUPPORTED BY COMM. SWOPE, TO APPROVE A CONSENT AGENDA FOR THE FOLLOWING ITEMS:

3. Equalization

a. Resolution to Adopt the 2005 County Equalization Report as Submitted with the Accompanying Statements

b. Resolution Designating County Representatives at the State Tax Commission Hearings

4. Health Department

b. Resolution to Reorganize Work in the Bureau of Environmental Health

d. Resolution to Create a Three-Quarter Time Health Plan Assistant Position

MOTION CARRIED UNANIMOUSLY.

MOVED BY COMM. DOUGAN, SUPPORTED BY COMM. SWOPE, TO APPROVE THE ITEMS ON THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY.

1. Circuit Court/Family Division – Substitute Resolution to Authorize Controller to Advertise for and Seek Proposals for a Feasibility and Needs Study for a Juvenile Treatment Center

MOVED BY COMM. SWOPE, SUPPORTED BY COMM. DOUGAN, TO APPROVE THE SUBSTITUTE RESOLUTION TO AUTHORIZE CONTROLLER TO ADVERTISE FOR AND SEEK PROPOSALS FOR A FEASIBILITY AND NEEDS STUDY FOR A JUVENILE TREATMENT CENTER.

Comm. Schor asked why this study was not included in the Cincinnati Report (Report). Mr. Ambrose explained the feasibility and needs study was not a part of the Report. This study is the next step in the process. There may be two more steps to this process. The end result of this study will allow the Board to make recommendations.

Board Chairperson Grebner explained the Report did not make a decision regarding the need for a new facility or a contract arrangement. Mr. Ambrose explained the $30,000 amount in the Resolution is a guess. Once the RFP’s have been issued and responses have been received, staff will have a better understanding of the prospective costs. If proposals indicate costs beyond $30,000, this matter will come back before this Committee.

The Committee held a general discussion regarding this item. Comm. Thomas asked who would receive the RFP’s. Mr. Ambrose explained staff will not know until the RFP has been drafted. Staff would speak with CCJR regarding the RFP. The County will hold an open RFP process.

MOTION CARRIED UNANIMOUSLY.

2. 911 Advisory Board – Resolution Authorizing an Additional Appropriation for the Necessary Site Preparation Work for the Ingham County Radio Communications System Project

MOVED BY COMM. SCHOR, SUPPORTED BY COMM. SWOPE, TO APPROVE THE RESOLUTION AUTHORIZING AN ADDITIONAL APPROPRIATION FOR THE NECESSARY SITE PREPARTION WORK FOR THE INGHAM COUNTY RADIO COMMUNICATIONS SYSTEM PROJECT.

Comm. Dougan expressed his concern regarding the cost over-run. Mr. Ambrose explained the project budget anticipated that some items could not be defined until later into the project. This project has a contingency fund for such matters. In response to Comm. Hertel, Mr. Ambrose stated he would have the project contingency fund balance information at the Board meeting.

MOTION CARRIED UNANIMOUSLY.

4. Health Department

a. Resolution to Authorize Adjustments to the Budget and Staffing for the Office for Young Children

MOVED BY COMM. HERTEL, SUPPORTED BY COMM. SCHOR, TO APPROVE THE RESOLUTION TO AUTHORIZE ADJUSTMENTS TO THE BUDGET AND STAFFING FOR THE OFFICE FOR YOUNG CHILDREN.

Mr. Bragg explained the Resolution recognizes the loss of contract funds for the Office. In December 2004, the UAW-GM Center for Human Resources (CHR) announced they were cutting back funding at all 40 of the on-site Child Care Resource and Referral Service locations across the country. GM is re-aligning funding based on the current smaller workforce.

Comm. Thomas asked about the role of the Office. Mr. Bragg explained that in the past the Health Department has recommended the elimination of the Office for Young Children. The Human Services Committee has not approved this recommendation to date. Comm. Thomas stated he strongly supports the core mission of the Office. He then expressed his concern regarding enhanced services to specialized areas in the long-term. Comm. Hertel explained the contract for enhanced services benefits the budget. If this Resolution is not approved, specific services to County residents would decline.

MOTION CARRIED UNANIMOUSLY.

c. Resolution to Amend Resolution #05-016 and Expand Outreach Funding from the Ingham Health Plan

MOVED BY COMM. HERTEL, SUPPORTED BY COMM. SCHOR, TO APPROVE THE RESOLUTION TO AMEND RESOLUTION #05-016 AND EXPAND OUTREACH FUNDING FROM THE INGHAM HEALTH PLAN.

Comm. Schor asked how this specific money was being spent. Mr. Bragg explained that funds are not being expended at this time. Tentative plans for allocation of the funds have been made. The intent is to build on current relationships between the Health Department and neighborhood associations and community organizations. In response to Comm. Schor, Mr. Bragg stated he would have someone contact him regarding the tentative plans.

Comm. Dougan stated he would like more information regarding out-County services. Mr. Bragg stated the Department is reaching out to the out-County areas.

MOTION CARRIED UNANIMOUSLY.

5. Tri-County Metro Narcotics Squad – Resolution Authorizing Adoption of a New Interlocal Agreement for the Tri-County Metro Narcotics Squad

MOVED BY COMM. DOUGAN, SUPPORTED BY COMM. HERTEL, TO APPROVE THE RESOLUTION AUTHORIZING ADOPTION OF A NEW INTERLOCAL AGREEMENT FOR THE TRI-COUNTY METRO NARCOTICS SQUAD.

Chairperson Dedden asked about the withdrawal of two agencies from the Squad. Mr. Gill, MSP, stated the City of Mason withdrew in July 2004 for economic reasons. Lansing Township withdrew as of January 2005 for the same reason. The Township is supportive of the Squad and hopes to reinstate their participation status. He further explained that Mr. Wriggelsworth has proposed the difference in the funding level be picked up by the contingency fund while the Squad seeks other funding sources.

MOTION CARRIED UNANIMOUSLY.

(Comm. Dougan left the meeting at this time to attend the parade in Mason.)

6. Ingham County MSU Extension/Youth Violence Prevention Coalition – Resolution to Create Three Temporary, Part-Time Summer Staff at the Baker Donora Focus Center Under the Juvenile Justice Title V Prevention Grant

MOVED BY COMM. HERTEL, SUPPORTED BY COMM. SWOPE, TO APPROVE THE RESOLUTION TO CREATE THREE TEMPORARY, PART-TIME SUMMER STAFF AT THE BAKER DONORA FOCUS CENTER UNDER THE JUVENILE JUSTICE V PREVENTION GRANT.

Chairperson Dedden proposed the following amendment to the Resolution’s first THEREFORE BE IT RESOLVED paragraph:

Add to end of that sentence – “to be paid out of the $150,000 budget described above.”

MOTION CARRIED UNANIMOUSLY as amended. Absent: Comm. Dougan

9. Economic Development Corporation

a. Resolution Conditionally Approving the Establishment of a Joint Local Development Finance Authority (LDFA) Tax Increment Financing Area by the City of East Lansing and the City of Lansing, to be known as the Lansing Regional Smartzone

MOVED BY COMM. HERTEL, SUPPORTED BY COMM. SWOPE, TO APPROVE THE RESOLUTION CONDITIONALLY APPROVING THE ESTABLISHMENT OF A JOINT LOCAL DEVELOPMENT FINANCE AUTHORITY (LDFA) TAX INCREMEANT FINANCING AREA BY THE CITY OF EAST LANSING AND THE CITY OF LANSING, TO BE KNOWN AS THE LANSING REGIONAL SMARTZONE.

Comm. Thomas asked what this Resolution would cost the County. Mr. Ambrose stated it would cost approximately $1 million over approximately 15 years. Ms. Pigg, EDC, stated with federal funding, the County’s portion may be reduced. The TIF would only apply to the increased value of the improved property for a limited time. Ms. Pigg explained the required process to receive the Smartzone designation.

Chairperson Dedden expressed her concern that the tax captures should not cut into the County’s revenue. Therefore, she was pleased to hear that tax would only be captured on improved property, not existing property.

Comm. Schor stated he proposed an amendment to this Resolution during the County Services meeting. The motion to amend failed with Comm. Schor voting yes. He then stated there should be some form of tax sharing arrangement. Comm. Thomas stated he liked Comm. Schor’s proposed amendment as it would show consistence with County policy.

Mr. Ambrose stated the County Attorney indicated that placing conditions on this issue is appropriate; however, they would be subject to challenge. The LDFA would have a County Commissioner on its board. Comm. Schor repeated his concern that the County be consistent with its tax sharing policy.

MOVED BY COMM. SCHOR, SUPPORTED BY COMM. THOMAS, TO AMEND THE RESOLUTION AS FOLLOWS:

STRIKE: FIRST THEREFORE BE IT RESOLVED.

ADD:

WHEREAS, the creation of the Authority requires the approval by resolution of the Ingham County Board of Commissioners; and

WHEREAS, the Ingham County Board of Commissioners will not approve the creation of the Authority except upon the conditions that (a) the Authority is designated by the MEDC as a “Certified Technology Park,” and (b) that the Authority shall not capture any Ingham County ad valorem property taxes except pursuant to a tax sharing agreement complying with Ingham County’s revised policy on tax sharing agreements as set forth in Resolution #05----, adopted April 12, 2005.

THEREFORE BE IT RESOLVED, that the Ingham County Board of Commissioners approves the establishment of the Local Development Finance Authority of the Cities of Lansing and East Lansing for the purpose of operating within the Lansing Regional Smartzone, but only on the following conditions: (1) the MEDC has designated the Authority District as a Certified Technology Park under Public Act 281 of 1986, as amended, and (2) the Authority shall not capture any Ingham County ad valorem property taxes except pursuant to a tax sharing agreement complying with Ingham County’s revised policy on tax sharing agreements as set forth in Resolution #05- ---.

BE IT FURTHER RESOLVED, that any attempt by the Authority to capture Ingham County ad valorem property taxes other than by way of a tax sharing agreement complying with Ingham County’s revised policy on tax sharing agreements as set forth in Resolution #05- ---, adopted April 12, 2005.

Mr. Ambrose stated the County’s policy does address the issue of using captured taxes for technological purposes. A tax sharing agreement would give the County a way to specifically know where its funds are being spent. Chairperson Grebner stated he supports having a tax sharing agreement in this situation. Also, units of government should sign tax sharing agreements with the County so that it knows where the funds are being spent.

Chairperson Dedden asked if the County has tax sharing agreements with other TIFA other than DDA’s. Comm. Swope expressed his concern that this project must be completed by the end of this year. Placing conditions on the process will delay the process. This is a unique arrangement and the County will have a presence on the LDFA board.

Comm. Schor stated his proposed amendment would not delay the process. The Resolution would be adopted on the condition that a tax sharing agreement is implemented sometime in the near future. Developing a tax sharing agreement in this situation would be fairly easy.

Ms. Cook explained the Smartzone process will sunset at the end of this year. The proposed amendment was not addressed two years ago when this matter was first discussed. Mr. Ambrose stated the County did approve a Smartzone two years ago. At that time, the Board did not have legal authority to opt out. Chairperson Dedden expressed her concern that the proposed amendment may jeopardize community improvement.

Comm. Hertel stated he doesn’t understand the major concern to have a tax sharing agreement. Ms. Cook stated she doesn’t believe an agreement would be agreed to easily. The process could take months. Comm. Thomas stated this item deals with a fairly small amount of money. The parties to this issue also have to meet State requirements. Trust is not an issue. He further stated he does not think the Lansing Township Manager would ever allow anything other than the appropriate process to take place.

Comm. Thomas suggested that, instead of a tax sharing agreement, the Township could come back before this Committee with information regarding the period of time of the LDFA, what the money would be used for and the total amount to be captured.

Chairperson Dedden expressed her concern that the Committee is losing track. The County is trying to take advantage of an opportunity with the State to improve the community. Comm. Schor stated the County should be concerned regarding the capture of tax funds which are paid by County residents.

MOTION TO AMEND FAILED with Comms. Swope, Dedden and Hertel voting NO. Absent: Comm. Dougan

MAIN MOTION CARRIED with Comm. Thomas voting NO. Absent: Comm. Dougan

b. Resolution to Exempt County Property Tax Revenues from Capture in the Expanded East Lansing Downtown Development Authority District

MOVED BY COMM. SWOPE, SUPPORTED BY COMM. SCHOR, TO APPROVE THE RESOLUTION TO EXEMPT COUNTY PROPERTY TAX REVENUES FROM CAPTURE IN THE EXPANDED East Lansing DOWNTOWN DEVELOPMENT AUTHORITY DISTRICT.

Mr. Ambrose stated approval of this item would mean the County is opting out until a tax sharing agreement is developed.

MOTION CARRIED UNANIMOUSLY. Absent: Comm. Dougan

7. Controller’s Office

a. Discussion of 2006 Budget Guidelines – Draft Resolution

Mr. Ambrose stated the guidelines have been reviewed by the liaison Committees. The next step in this process will be to approve a resolution adopting the 2006 Budget Guidelines. Concerns from other Committees will be addressed by staff.

b. Discussion of 2006 Update of County Fees

Mr. Ambrose stated revised information regarding the Fees is contained in the blue packet. A Resolution will be submitted at the next round of meeting to adopt the 2006 Fees. The Health Department’s fee recommendations will be submitted in June of this year.

c. Resolution Authorizing a Contract to Provide Benefit Management Service for Employees and Retirees of Ingham County

Mr. Ambrose stated the Health Coalition issued a Request for Proposals in February 2005 regarding proscription drug benefits. Nine responses were received. The Coalition reviewed the responses and has recommended 4D Pharmacy Management Systems, Inc. (4D) for an 18 month period beginning July 1, 2005 to provide Pharmacy Benefit Management Services to eligible employees and retirees of Ingham County.

4D offers services which will meet members’ needs and respond to concerns that have recently arisen such as allowing 90-day prescription fills on most maintenance medications at retail pharmacies and even the option of retail for some specialty pharmacy items. The anticipated savings from this arrangement is approximately $400,000, or 10% of current costs.

Comm. Schor stated this contract will allow employees to obtain three-month prescriptions through their local pharmacies.

Mr. Smith stated this is the first time in two years that an RFP was issued for pharmacy services. Vision coverage will be addressed next.

MOVED BY COMM. HERTEL, SUPPORTED BY COMM. SWOPE, TO APPROVE THE RESOLUTION AUTHORIZING A CONTRACT TO PROVIDE BENEFIT MANAGEMENT SERVICE FOR EMPLOYEES AND RETIREES OF INGHAM COUNTY. MOTION CARRIED UNANIMOUSLY. Absent: Comm. Dougan

d. Facilities – Resolution Authorizing the Emergency Purchase of a Domestic Hot Water Boiler at the Ingham County Correctional Facility

MOVED BY COMM. THOMAS, SUPPORTED BY COMM. SCHOR, TO APPROVE THE RESOLUTION AUTHORIZING THE EMERGENCY PURCHASE OF A DOMESTIC HOT WATER BOILER AT THE INGHAM COUNTY CORRECTIONAL FACILITY. MOTION CARRIED UNANIMOUSLY. Absent: Comm. Dougan

8. Board Referrals

a. Letter from the City of Lansing Regarding Public Hearing on April 4, 2005 Considering the Approval of an Obsolete Property Rehabilitation Exemption Certificate for the Property Located at 1131-1134 S. Washington Avenue

b. Letter from the Capital Regional Airport Authority Regarding its Mill Levy Certificate Township’s Master Plan

The Committee spoke briefly regarding item 8b.

The Board Referrals were received and placed on file.

Announcements: None

Public Comment: None

The meeting adjourned at 7:40 p.m.

Respectfully submitted,

Debra Neff