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Meeting Minutes

FINANCE & PHYSICAL RESOURCES COMMITTEE MINUTES

Tuesday, October 3, 2000 - 8:30 a.m.

Board Room - County Administration Building

MEMBERS PRESENT: Chair David Morren; Commissioners Jack Boelema, Elaine Buege, Harold Mast, Pat Malone, Paul McGuire, Michael Sak, and Fritz Wahlfield.

MEMBERS ABSENT: Commissioner Katherine Kuhn (excused).

ALSO PRESENT: County Administrator Daryl Delabbio; Assistant County Administrator Alan Vanderberg; Executive Assistant to the Board Jim Day; Management Analyst Deborah Kauffman; Human/Community Services Coordinator Mary Swanson; Purchasing Manager Jon Denhof; Fiscal Services Director David Waichum; Financial Supervisor Marvin VanNortwick; Solid Waste Operations Director at Public Works Doug Wood; Finance Division Director at Public Works Dan Kendall; WTE Administration Manager at Public Works Bill Allen; Director of Administrative Services at Community Mental Health Cindy Lowe; and Senior Administrative Specialist Sandra Winchester.

NEWS MEDIA: Kyla King, Grand Rapids Press.

Mr. Morren called the meeting to order at 8:30 a.m.

I. PUBLIC COMMENT

None.

II. CONSENT AGENDA

  1. Approval of the Minutes of September 19, 2000
  2. Auditing of Checks and Purchase Order Activity - See Attachment A

    Road Commission - $1,602,044.02

    Warrants - 2479 to 2765 for period ending September 22, 2000

  3. Various - CIP Expenditures

Mr. Sak moved to approve the Consent Agenda as presented.

Supported by Mr. Boelema.

Motion carried.

III. COMMUNITY MENTAL HEALTH - 2000 BUDGET INCREASE FOR ADDITIONAL REVENUES

Mr. Delabbio stated approval is requested to recommend to the Board of Commissioners a $1,190,777 increase to the 2000 CMH Budget to recognize additional revenues and expenditures earned and incurred during the current fiscal year. This item is proposed to go to the Board on October 12, 2000. A summary of the request follows.

  • The Department of Community Health (DCH) has identified $789,987 of PEPM (Per Eligible Per Month) Medicaid revenue that was not allocated previously.
  • OBRA (Omnibus Budget Reconciliation Act) PASARR (Pre Admission Screening Annual Residential Review) activity is billed to the State Department of Community Health on a fee for service basis. The number of OBRA assessments is higher than originally planned, therefore CMH will receive more revenue than originally planned. The increase in the OBRA budget is $16,130.
  • CMH became the coordinating agency for substance abuse services for the MINK region this year. The Kent County Health Department was the coordinating agency in prior years. The Health Department transferred the Liquor Tax balance, the Liquor Tax Risk Pool balance, and the carry over from the previous year to CMH during FY99/00. These amounts were not originally planned for in the CMH budget. The total transfers from the Kent County Health Department are $217,921.
  • Actual interest income has been significantly higher than originally budgeted. Adjustment to recognize $80,000 of additional interest income in the budget is reasonable based on current earnings. This increase will be used for the Substance Abuse program.
  • The Community Mental Health Dept. recently received notice of an increase in its allocation of Medicaid-Children's Waiver Funds ($86,739) from the Department of Community Health for the 1999/2000 budget.
  • The proposed changes adjust the revenues for the various programs and account for the expenditures associated with each.

Mr. Boelema moved to recommend to the Board of Commissioners a $1,190,777 increase to the 2000 CMH Budget to recognize additional revenues and expenditures earned and incurred during the current fiscal year.

Supported by Mr. McGuire.

Motion carried.

IV. FISCAL SERVICES - DEFEASANCE AGREEMENT - KENT COUNTY SEWAGE DISPOSAL - CALEDONIA SEWAGE DISPOSAL SYSTEM

Mr. Delabbio stated approval is requested to recommended to the Board of Commissioners to approve a contract with Caledonia Township and the Village of Caledonia for defeasance of the 1994 Kent County Sewage Disposal Bonds-Caledonia Sewage Disposal System (Limited Tax General Obligation) originally issued in the principal amount of $3,790,000 (Bonds). This item is proposed to go to the Board on October 12, 2000. A summary of the request follows.

  • The restated agreement (Contract), dated February 1, 1994, obligated Caledonia Township and the Village of Caledonia to make payments to the County at times and amounts necessary to pay the principal and interest on the bonds when due.
  • The contract also contained a provision for termination of the contract in the event that the bonds and interest were paid in full or provisions were made therefor.
  • The two units have requested to exercise this condition of the contract and make provision for payment of the bonds causing the contract to be terminated.
  • The County has determined to provide for the defeasance of all outstanding bonds that will be in the aggregate amount of $2,530,000 at the time of the deposit in escrow.
  • This defeasance agreement will be dated December 1, 2000.

No funding required.

Mr. McGuire moved to recommend to the Board of Commissioners to approve a contract with Caledonia Township and the Village of Caledonia for defeasance of the 1994 Kent County Sewage Disposal Bonds-Caledonia Sewage Disposal System (Limited Tax General Obligation) originally issued in the principal amount of $3,790,000 (Bonds).

Supported by Mr. Malone.

Mr. Wahlfield asked if this action will affect the County's bond rating.

Mr. Delabbio answered that it will not have a negative effect on our rating.

Mr. Malone asked if the County is currently responsible for the operation and maintenance of the system.

Mr. Dan Kendall of Public Works answered that the County is not responsible for the operation and maintenance.

Motion carried.

V. HEALTH - APPROVAL TO CONTRACT WITH MDEQ FOR WATER MONITORING AND ON-SITE SEWAGE EVALUATION

Mr. Delabbio stated approval is requested to recommend to the Board of Commissioners to approve the Health Department's request to enter into a contract with the Michigan Department of Environmental Quality for water monitoring and on-site sewage evaluation. This item is proposed to go to the Board on October 12, 2000. A summary of the request follows.

  • The Environmental Health Division performs certain technical services relating to non-community water supply, drinking water, swimming pools, and on-site sewage.
  • Funding for these activities was previously provided by the Department of Community Health (DCH) as part of the Comprehensive Plan and Budget Contract (CPBC). Beginning with FY00, funding for these activities at the State level was moved from DCH to the Department of Environmental Quality (DEQ).
  • The requirements in the proposed contract are consistent with the past program requirements.
  • Total funding for FY01 is $423,619, which represents a 1.55 percent increase from the FY00 funding level.

Funds have been requested in the 2001 Health Department Budget.

Mr. Mast moved to recommend to the Board of Commissioners to approve the Health Department's request to enter into a contract with the Michigan Department of Environmental Quality for water monitoring and on-site sewage evaluation.

Supported by Mr. Sak.

Motion carried.

VI. HEALTH - HEALTHY KENT 2010 GRANT APPLICATION SUBMISSION TO THE GRAND RAPIDS COMMUNITY FOUNDATION

Mr. Delabbio stated approval is requested to recommend to the Board of Commissioners to approve the Health Department's request to submit a grant application to the Grand Rapids Community Foundation for support of Health Kent 2010 activities. This item is proposed to go to the Board on October 12, 2000. A summary of the request follows.

  • Healthy Kent is a community health initiative, which has been facilitated by the Health Department since 1993. The initiative began with a community health assessment, which identified five areas for improvement: violence, substance abuse, infant mortality, chronic disease, and sexually transmitted diseases, including HIV/AIDS.
  • To address these health problems, five Implementation Teams (I-Teams) were formed to identify community health improvement goals and objectives, and to develop strategies to meet them. The I-Teams have been in place since 1995 and include citizens, stakeholders, provider staff, and Health Department personnel.
  • With the consent of the Healthy Kent Steering Committee, the Health Department has been encouraged to apply for multi-year funding from local foundations. The Health Department has already requested $50,000 over a three-year period from both the Steelcase and Frey Foundations, and is now submitting its application to the Grand Rapids Community Foundation.
  • Funding will be used to support I-Team activities and initiatives (e.g. health promotion campaigns, violence prevention activities, community meetings and assessments, etc.).

Mr. Sak moved to recommend to the Board of Commissioners approval to accept the Health Department's request to submit a grant application to the Grand Rapids Community Foundation for support of Healthy Kent 2010 activities.

Supported by Mr. McGuire.

Mr. Sak stated that the Health Kent Steering Committee is doing a good job in trying to impact the positive well being of our community.

Motion carried.

VII. PUBLIC WORKS - AMEND 2000 BUDGET FOR DISTRICT HEATING AND COOLING OPERATION

Mr. Delabbio stated approval is requested to recommend to the Board of Commissioners to amend the 2000 Budget for the District Heating and Cooling Operation recognizing an additional $780,000 in revenues and expenses. This item is proposed to go to the Board on October 12, 2000. A summary of the request follows.

  • The cost of fuel oil and natural gas for the boilers at the DHCO has risen dramatically during 2000.
  • The average cost of spot market natural gas has increased 34% above the monthly average cost for calendar year 1999. These additional costs have been tied to reduced production, increased demand and speculation.
  • The staff of DHCO has aggressively pursued practices to mitigate the impact this has had on the steam pricing.
  • Steam customers were informed in May 2000 that the monthly fuel cost rate adjustment would be in effect beginning with the June billings.
  • The higher fuel cost is expected to continue. This adjustment would increase the Utilities-Gas expense budget to the amount of $3,805,990.

Mr. Wahlfield moved to recommend to the Board of Commissioners to amend the 2000 Budget for the District Heating and Cooling Operation recognizing an additional $780,000 in revenues and expenses.

Supported by Mr. Sak.

Motion carried.

VIII. ADJOURNMENT

There being no other business for discussion, Mr. Morren declared the meeting adjourned at 8:45 a.m.