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HomeMy WebLinkAboutResolutions - 2018.04.19 - 23423MISCELLANEOUS RESOLUTION #18127 BY: Commissioners Doug Tietz, District #11; Phil Weipert, District #8; Janet Jackson, District #21; Tom Berman, District #5; Hugh Crawford, District #9; Adam Kocheliderfer, District #15; David Bowman, District #10; Michael Spisz, District #3; Bob Hoffman, District #2; 4747,4 2 ,ice/c; #1,?? IN RE: BOARD OF COMMISSIONERS — CONTINUATION OF THE LOCAL ROAD IMPROVEMENT MATCHING FUND PROGRAM To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS beginning with the adoption of MR #16103 in 2016, Oakland County has voluntarily provided limited funding assistance to its cities and villages for road maintenance, improvements and safety projects on non-county roads; and WHEREAS through participation in the Local Road Improvement Matching Fund Program, Oakland County has ensured that these investments are multiplied by requiring that the Oakland County appropriation for each project is matched by the participating municipality at a minimum of 50% of the cost of the total project award; and WHEREAS since inception, the Local Road Improvement Matching Fund Program has proven to be an effective means to encourage improvements to the transportation infrastructure and successful economic development tool for those cities and villages in Oakland County; and WHEREAS chronic underfunding of road repairs by the State of Michigan has resulted in poor conditions on many roadways throughout Oakland County and the region; and WHEREAS a quality transportation system is critical to economic development and the overall quality of life for Oakland County residents; and WHEREAS over the last two years, Oakland County's investment in its cities and villages have leveraged an estimated $20 million dollars toward funding targeted road maintenance/improvement projects throughout the County; and WHEREAS promised funding improvements from the state and federal government are woefully inadequate to meet the costs of repairing the chronically underfunded local road system in our local cities and villages; and WHEREAS the Local Road Improvement Program is set to discontinue following the 2019 Fiscal Year; and WHEREAS the Local Road Improvement Program has proven to be a wise investment, leveraging a limited investment in county funding into major infrastructure spending that promises to improve the economic vitality of our communities and Oakland County. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners does hereby declare their intention to cancel the planned elimination of the Local Road Improvement Program following Fiscal Year 2019 and requests the Local Road Improvement Program Subcommittee to update the policies and procedures of the program to indicate it has moved beyond the "pilot" phase of the program. Chairperson, I move the adoption of the foregoing Resolution. CommissionerikraTh Kochenderfer District#15 — Commissioner D6-7id-bowman District #10 missioner District* f e C LA6 Commissioner District # 1 Commissioner Janet Jackson District #21 Commissioner District # ComtNs—g District # sioner Commissioner District # 3 VV ommissioner Phil eipert Commissioner Di ict # / Commissioner District # Commissioner Commissioner District # District # Commissioner Commissioner District # District # Commissioner Commissioner District # District # Attachment "A" PILOT LOCAL ROAD IMPROVEMENT MATCHING FUND PROGRAM STATEMENT OF PURPOSE Oakland County Government recognizes that Michigan law places the primary responsibility for road funding on the State and non-county local units of government. However, the County also recognizes that the law does permit a limited, discretionary role for the County in assisting a road commission and local units within a county by supporting some road maintenance and improvement efforts. Accordingly, for many years Oakland County has voluntarily provided limited assistance to its cities, villages and townships (CVT's) and to the Road Commission of Oakland County (RCOC) by investing in a discretionary Tr- Party Road Program. Authorized under Michigan law, the County's tri-party funding contributions primarily facilitate safety improvement projects on CVT roads under the jurisdiction of the RCOC. By law, tri-party funds cannot be used to fund projects on roads solely under the jurisdiction of CVT's. Recognizing a continuing need to better maintain local CVT streets and roads, yet being ever mindful of the County's limited responsibility for and jurisdiction over non-County roads and streets, Oakland County Government wishes to pilot a discretionary program that is more flexible than the current Tr-Party Road Program, one that will allow Oakland County to assist its cities and villages with maintenance and safety projects on non- County roads. Not being the funding responsibility of County government, local CVT roads generally cannot be maintained or improved using County funds because doing so would be considered to be the "gifting" of County resources. However laudable the purpose, Michigan law generally forbids the gifting of government resources. To avoid application of the constitutionally-based gifting restriction, the state legislature must, and in this arena has, determined that a public benefit results from a taxpayer investment, one that provides a quid pro quo sufficient to avoid application of the gifting prohibition. Here, the legislature has determined that the economic development benefit presumed to accrue to a county as a result of local street and road investments can provide a sufficient quid pro quo to county taxpayers justifying a discretionary county investment in a non-county road, a benefit that constitutes a fair exchange for value and not a gift. This legislative determination is set forth in 1985 P.A. 9, which amended 1913 RA. 380, by adding a new section 2, which in pertinent part provides: "(1)...A county may grant or loan funds to a township, village or city located within that county for the purpose of encouraging and assisting businesses to locate and expand within the county... (2) A loan or grant made under subsection (1) may be used for local public improvements or to encourage and assist businesses in locating or expanding in this state, to preserve jobs in this state, to encourage investment in the communities in this state, or for other public purposes." Communities that wish to attract, retain and grow business, retain jobs and encourage community investment, needs a safely maintained road infrastructure. This road infrastructure must include both residential and commercial roads as workers and consumers need to get to and from work, shopping, schools and recreation. In a fiscally prudent and limited manner, the County wishes to help its cities and villages accomplish this objective by test-piloting a new local road improvement matching fund program. Any such program must be mindful of the limits imposed under Public Act 9. One important restriction Public Act 9 imposed on grants or loans made pursuant to Subsection 2 of the Act is the mandate that, "A grant or loan under this Subsection shall not be derived from ad valorem taxes except for ad valorem taxes approved by a vote of the people for economic development." This means that funding for an expanded local road assistance program cannot utilize proceeds from any of Oakland County's ad valorem tax levies since no levy has been approved by voters specifically for economic development. Given this limitation, it appears that the state statutory revenue sharing appropriated to the County can provide a non-ad valorem source of funds that legally can be used to support the pilot program. Competition for those funds, which are limited in amount, is fierce and their yearly availability is subject to the state legislative process. In the recent past, the State stripped all of those funds away from Michigan counties. Understanding that reality, it shall be the policy of the Oakland County Board of Commissioners that the Board shall not appropriate any County funds for a local road improvement matching fund program for non-County roads in any year where the State of Michigan fails to appropriate statutory revenue sharing funds to Oakland County in an amount sufficient to allow the County to first prudently address its core functions. Act 9 imposes additional conditions on grants and loans. These include requirements that the loan or grant shall be administered within an established application process for proposals; that any grant or loan shall be made at a public hearing of the county board of commissioners and that the Board shall require a report to the county board of commissioners regarding the activities of the recipient and a report as to the degree to which the recipient has met the stated public purpose of the funding. Understanding all of the above, the Oakland County Board of Commissioners hereby establishes the following Pilot Local Road Improvement Matching Fund Program: PROGRAM SUMMARY The Board of Commissioners establishes a Pilot Local Road Improvement Matching Fund Program for the purposes of improving economic development in Oakland County cities and villages. The County intends this Program to assist its municipalities by offering limited matching funds for specific, targeted road maintenance and/or improvement projects on roadways under the jurisdiction of cities and villages. A city or village participating in the Local Road Improvement Matching Fund Program shall match any fund authorized by the Board of Commissioners in an amount equal to a minimum of 50% of the cost of the total project award. County participation shall be limited to a maximum of 50% of the cost of the total project budget. Funding shall be utilized to supplement and enhance local road maintenance and improvement programs. Funding is not intended to replace existing budgeted local road programs or to replace funding already committed to road improvements. PROJECT GUIDELINES Program funding shall be utilized solely for the purposes of road improvements to roads under the jurisdiction of local cities and villages. Road improvements may include, but not be limited to, paving, resurfacing, lane additions or lengthening, bridges, or drainage as such improvements relate to road safety, structure or relieving congestion. Program funding: May be utilized to supplement a local government's matched funding for the purposes of receiving additional federal transportation funding; May not be utilized to fulfill a local government's responsibility to fund improvements to state trunklines; Shall be limited to real capital improvements to roadways and shall not be utilized for other purposes, such as administrative expenses, personnel, consultants or other similar purposes; Shall not be utilized for non-motorized improvements, unless these improvements are included in a project plan for major improvements to a motorized roadway; Shall be utilized for projects that will result in a measurable improvement in the development of the local economy and contribute to business growth. Recipients shall be responsible for providing an outline of the economic benefits of the project prior to approval and for reporting to the Board of Commissioners after the completion of the project on the benefits achieved as a result of the projects. ADMINISTRATION Local Road Improvement Matching Fund Program projects may be appropriated by the Board of Commissioners in compliance with the County budget process. The amount of funds to be dedicated for the Pilot Program shall be determined by the Board of Commissioners on an annual basis. Program funding may be reduced or eliminated based upon the ability of the County government to meet primary constitutional and statutory duties. The Board of Commissioners expressly reserves the right to adjust the County matching funds share at any time based upon County budget needs. In accordance with MCL 123.872, funds dedicated to the Local Road Improvement Matching Fund Program shall not be derived from ad valorem tax revenues. Program funding shall be limited to funds derived from the County's distribution from the Michigan General Revenue Sharing Act. Reduction or elimination of the County's distribution of revenue sharing funds may result in the elimination or suspension of the program. Funding availability shall be distributed based upon a formula updated annually. The formula will consist of: 1. A percentage derived from the number of certified local major street miles in each city and village divided by aggregate total of certified local major street miles of all cities and villages in the County. 2. A percentage derived from the population of each city and village as determined by the last decennial census conducted by the U.S. Census Bureau divided by the aggregate total population of cities and villages in the County. 3. A percentage derived from the three-year roiling total of the number of crashes on city and village major local streets divided by the aggregate three-year rolling crash numbers for all city and village major local streets or most recent data available. The crash data will be supplied by the Road Commission for Oakland County using data from the Traffic Improvement Association. Each city and villages percentage allocation shall be determined by adding each factor percentage and dividing that total by three. The amount of funds available for match shall be determined by the total amount of funds allocated by the Board of Commissioners added to an equal amount representing the match provided by local cities and villages. The Chairman of the Finance Committee of the Board of Commissioners shall establish a Subcommittee on the Local Road Improvement Program. This Subcommittee shall consist of three members, with two members representing the majority caucus and one member representing the minority caucus. It shall be the responsibility of the Subcommittee to direct the administration of this program, receive applications for program funding and make recommendations of acceptance to the Finance Committee and Board of Commissioners. The Subcommittee may consult with County departments, staff and the Road Commission for Oakland County in the conduct of its business. DISBURSEMENT The Subcommittee shall forward recommendations for approval of Local Road Improvement Matching Fund Program projects to the Chairman of the Board of Commissioners. This recommendation shall include a cost participation agreement between the County and participating municipality. Minimally, cost participation agreements shall include: responsibility for administering the project, the project location, purpose, scope, estimated costs including supporting detail, provisions ensuring compliance with project guidelines, as well as disbursement eligibility requirements. The cost participation agreement shall also require the maintenance of supporting documentation to ensure compliance with the following provisions: 1. Any and all supporting documentation for project expenditures reimbursed with appropriated funding shall be maintained a minimum of seven years from the date of final reimbursement for actual expenditures incurred. 2. The Oakland County Auditing Division reserves the right to audit any and all project expenditures reimbursed through the program. Upon receipt of recommendation of project approval from the Subcommittee, the County Commissioner or Commissioners, representing the area included in the proposed project, may introduce a resolution authorizing approval of the project and the release of funds. Resolutions shall be forwarded to the Finance Committee of the Board of Commissioners, who shall review and issue a recommendation to the Board on the adoption of the resolution. The Chairperson of the Finance Committee shall schedule a public hearing before the Board of Commissioners prior to consideration of final approval of the resolution. The deadline for projects to be submitted for consideration shall be established by the Subcommittee. The Subcommittee may work with participating municipalities to develop a plan for projects that exceed that municipality's annual allocation amount. This may include a limited plan to rollover that municipality's allocation for a period of years until enough funding availability has accrued to complete the project, subject to funding availability. Upon completion of project plans and execution of the local participation agreement by the County and governing authority of the local municipality, the participating municipality shall submit an invoice in accordance with the terms and conditions included in the agreement. The Oakland County Department of Management and Budget Fiscal Services Division shall process payments in accordance with policies and procedures as set forth by the Department of Management and Budget and the Oakland County Treasurer. In the event an eligible local unit of government chooses not to participate in the Local Road Improvement Matching Fund Program, any previously undistributed allocated funding may be reallocated to all participating local units of government at the discretion of the Subcommittee on the Local Road Improvement Program. At the completion of each project, the participating local government shall provide a report to the Board of Commissioners regarding the activities of the recipient and the degree to which the recipient has met the stated public purpose of the funding as required by MCL 123.872. LOCAL ROAD IMPROVEMENT SUBCOMMITTEE FINANCE COMMITTEE, OAKLAND COUNTY BOARD OF COMMISSIONERS Provision regarding existing funded local road programs and projects. The standard project agreement shall require participating municipalities to acknowledge that the Local Road Improvement Program is meant to supplement and to not replace funding for existing road programs or projects. Fulfillment of economic benefit provisions of MCL 123.872. The Pilot Local Road Improvement Program has been established by the Oakland County Board of Commissioners under the authority granted by MCL 123.872, which provides that "A county may grant or loan funds to a township, village or city located within that county for the purposes of encouraging and assisting businesses to locate and expand within the county". It shall be the responsibility of the municipality to outline the extent to which the project included in their application will meet these standards. The Subcommittee shall only consider projects that meet the standards provided in MCL 123.872. The standard project agreement shall include a provision requiring the participating municipality to fulfill the statutory requirement included in MCL 123.872 that, "the grant or loan contract made by county shall require a report to the county of board of commissioners regarding the activities of the recipient and the degree to which the recipient has met the stated purpose of the funding." Multi-year projects. The Local Road Improvement Program has been expressly established as a pilot program. There is no guarantee the program will be continued from year to year. The Subcommittee recognizes that the allocation authorized for local governments may not provide adequate funding in a single year to allow a project to move forward. Local governments shall be offered the opportunity to submit project plans that would necessitate the accumulation of multiple years of the community's allocation amount to fulfill the county's share of a project budget. A multi- year project plan submittal shall not exceed two years in duration. The allocation amount available to each community is subject to change annually based upon the factors utilized in the formula. Consideration of multi-year project plans does not obligate Oakland County in any way to funding any project or program in the future. These plans are meant to be utilized for planning purposes and for consideration by the Oakland County Board of Commissioners regarding authorizing a limited carryover of a community's allocation year to year. Completion of projects and submittal of post-project report. The standard cost participation agreement shall include a provision requiring the municipality to complete the project and submit the required post-project completion report prior to the end of the next calendar year following the date of project approval. An alternative schedule may be approved for a project by action of the Board of Commissioners, upon recommendation of the Subcommittee. $13,500 si9050 $98,700 $8;700 $10,050 $20;250_ $13,050 $273,900 $44,100 $225,750 $255,450 $323 • $4,711 $2,362 _ $208, $241 $485. $312 $6,555 $1,055 $5,443: $6,11.3 LRIP DISTRIBUTION FORMULA Attachment "B" 2018 City! Village Cert Major Local Road Mi Miles Wm Population Pop) rVilles+Pop Proposed Allocation Rollover Allocation Max County Matching 70,995. 63.96 9.54% 57,236 7.49% . 4.43. 0.56%. 11,327 1.48% 54.71 9.65% 71,739 9.39% 2.58 • 0.38% . 7 1,720 023% = - 57.34 8.55% 80,980 10.60% • 5.34 0.80% 5,999 10.49 1.56% 13,498 1.77% - 3.69: 0.55%:.-, '4312% :0,56% 3952 5.90%. • 18.35 2.74% 29,319 3.84% 1.8 0.27% 2375,- 0.31%- 3.21 0.48% 1,442 .6.O1 0.90% - 3,436 3.59 0.54% 2,526 7Q.21: 59,515 859 1.28% 12,711 38.61'1 0.1.9% 0.45% 0.33% 7:79% 1.66% 0.53% 2.35% P-92% 0.93% 0.34% 0.00% 0.40% 0.82% 0.20% 3.55% 0.95% 0.45% 6.57% 3.29% 0.29% 0.34% 0.68% 0.44% 9.13% 1.47% 7.53% 8.52% 1.07% 9.52% 0.31% 9.58% 1.67% 0.56%1 $768 $6,835 $219: $6,874 :'• $017- $1,195 $398 $2,549 .9661 $668 $244 Auburn Hills Berkley•- Beverly Hills Bingham Farms Birmingham BlOornfield Hills Clarkston ClaviiSOn. Farmington Farmington Hills • Ferndale Flank in _ Hazel Park Huntington Woods Keegc Harbor-Lake Angelus Lake Orion' Lathrup Village Madison Heights Milford Northville* Novi: Oak Park Okhard lake-Ortonville axfrind - Pleasant Ridge Pontiac Rochester Rochester Hills. - Royal Oak South Lyon - Southfield Sylvan Lake Troy Walled Lake Wixom Wolverine- • $114,300 $64;350; $44,700 : $4,500 $88,350 -$27,450 $5,100 $44;850 $36,900 $287;100 $85,950 $15;900 $70,500 -427;600:' $27,900 $1.6,200.. $0 $12,000 $24,450 $6,000 $106,500 • $32;100- $285,600 $287,250 $49,950 116,650.1 59,885 33;725. 23,420 , . 46,289 - 14;382 2,672 23,498 19,333 150,44: 45,032 8,331 36,937 .14,461 14,618 : 5,349 : ,6;287, 12,810 3444: 55,799 14,932- 7,073 103,188 51,712 4,558 5,266 6,837 : 143;05. 23,105 118;278 133,838 16,818 149,635 71044 150,499 13,5171 26,170 ,..8;723,1 32.33 4.82% 21,412 2.80% 15.63 -:233% 14,970 1.96% 10.99 1.64% 10,267 1.34% 1.02 0.15% 1;111 21.87 3.26% 20,103 2.63% 883 1.32% 3,869 -0.51% 1.48 0.22% 882 0.12% 3.81% 2.15% 1.49% 0.15% 2.95% 6.92% 0.17% 1.50% 1.23% 9.57% 2.87% 9.62 11,825. 7.86 10,372 1.36% 58.36 79,740 i043Y. 20.99 19,900 2.60% 4.34 - 0.65% 17.12 2.55% ; 7 : 1.04% 6.95 1.04% 1.93. 0.29% 0 0.00% 2.74. OA1% 7.36 1.10% .035%. 21.5 3.21% 7.3 1.09% 0.8 0.12% 29,694 3.89% 0:81% 5,970 0.78% -55;714 • 7:23% 3450....0;4i% 16,422 2.15% 16,Q86- 080% 6,238 0.82% - 2,970 0:39% 290 0.04% 2,973 4,075 0.53% 403 0:05% $2,735 $1,540 $1,070 $108- $2,114 . $657 $122 • $1,073: $883 $6,871 $2,057 $381. $1,687 TOTAL - 670.29 100,00%. 764,2511E100.00c' 100.00% $3,000000 -$7.1.;794 1,..$74,794 2018 Resolution #18127 April 19, 2018 The Chairperson referred the resolution to the Finance Committee. There were no objections.