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HomeMy WebLinkAboutResolutions - 2000.08.10 - 25933August 10, 2000 Miscellaneous Resolution # 00 201 BY: General Government Committee, Shelley G. Taub, Chairperson RE: Board of Commissioners - Metropolitan Arts and Culture Council TO: Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS, the Michigan Metropolitan Councils Act, Public Act 292 of 1989, being MCL 124.651 through 124.729; MSA 5.4086(51) through MSA 5.4086(129) (the "Act") was amended by Public Act 375 of 1998, being MCL 124.693 through 124.713; MSA 5.4086(93) through MSA 5.4086(113), to authorize the creation of a metropolitan region council which shall consist of one (1) or more qualified cities and two (2) or more qualified counties; and WHEREAS, Section 43(h) of the Act, defines "qualified county" as a county with a population of not less than 780,000 which contains a qualified city within its geographic boundaries or is contiguous to a county with a qualified city within its geographic boundaries; and WHEREAS, Section 43(g) of the Act, defines "qualified city" as a city with a population of not less than 700,000 persons which is located within a participating qualified county and which owns two (2) or more regional cultural institutions; and WHEREAS, Section 43(i) of the Act, defines a "regional cultural institution" as a structure, fixture, or activity provided by a tax exempt entity that has been in existence for at least eighteen (18) consecutive months and which may include a zoological institute; a science center, whether or not it is affiliated with a private educational institution; a public broadcast station, whether or not the public broadcast station is affiliated with an institution of higher education; a museum, whether or not it is affiliated with a private educational institution; a historical center; a performing arts center; a visual or performance art instruction center affiliated with an independent institution of higher education in the arts; an orchestra; a chorus; a chorale; or an opera theater; and General Government Committee Vote; Motion carried on roll call vote Taub, Dingeldey, Law, Patterson, Sever, Friedman Appel and Melton — yes. Garfield — no McPherson - absent 3. To be conducted as a governmental entity, including all activities incident to its purposes, pursuant to Section 115 of the United States Internal Revenue Code, being 26 USC 115, or any successor law (the "Code"). Notwithstanding any other provision of these Articles, the Corporation shall not carry on any other activity not permitted to be carried on by a governmental instrumentality exempt from federal income tax under Section 115 of the Code or by a nonprofit corporation organized under the Act and other laws of the State of Michigan. 4. To enhance regional cultural institutions and to develop and/or enhance local recreation and cultural programs and facilities that are not primarily designed or used for professional sports, within the geographic boundaries of the participating city and counties. ARTICLE HI The Corporation is organized on a non-stock, directorship basis. The value of assets which the Corporation possesses is: Real Property: None Personal Property: None The Corporation is to be financed under the following general plan: 1. Proceeds from an ad valorem tax approved, pursuant to the requirements of the Act, by a majority of the qualified and registered electors residing in the council area and voting collectively on the question. However, notwithstanding any other provision of these Articles, should a majority of the qualified and registered electors residing in any participating qualified county voting on the issue disapprove a proposal to levy an ad valorem tax, the Corporation shall immediately be dissolved and no tax shall be levied. 2. Grants, loans, or contributions from the Federal government or any of its agencies, the State of Michigan, or other public or private agencies where funds received would be used for any of the purposes set forth in the Act or in these Articles. 3. Other lawfully received funds. ARTICLE IV The street address and mailing address of the registered office is: 39577 Woodward Avenue Suite 300 Bloomfield Hills, Michigan 48304 The name of the resident agent at the registered office is: Thomas B. Spillane, Jr. ARTICLE V The names and addresses of the incorporators are as follows: The Detroit City Council, do The Detroit City Clerk, 200 Coleman A. Young Municipal Center, Detroit, Michigan 48226. The Oakland County Board of Commissioners, do The Oakland County Clerk, 1200 N. Telegraph Road, Pontiac, Michigan 48431-0413. The Wayne County Commission, do The Wayne County Clerk, 201 Coleman A. Young Municipal Center, Detroit, Michigan 48226. ARTICLE VI The Corporation is a public corporate body. The fiscal year for the Corporation shall be October 1st through September 30th. ARTICLE VII The Corporation and its incorporators, Council Board members, officers, agents, and volunteers are entitled to governmental immunity as provided in Section 7 of Public Act 170 of 1964, being MCL 691.1407; MSA 3.996(107). 7. Writings prepared, owned, used, in the possession of, or retained by the Council in the performance of an official function shall be made available to the public in compliance with the Michigan Freedom of Information Act, Public Act 442 of 1976; MCL 15.231 through 15.246; MSA 4.1801(1) through 4.1801(16). ARTICLE IX 1. The Corporation possesses all the powers necessary for carrying out the purposes of its formation. 2. The Corporation shall have the power to adopt bylaws for the Council's administration. Among other operational matters, the Corporation's bylaws shall require one (1) annual meeting, and shall include a process for an ongoing advisory role for the Regional Cultural Institutions identified in Article IX, Section 5 of these Articles (or a recognized coalition of these institutions). 3. The Corporation shall have the power to provide funding to Regional Cultural Institutions. 4. "Regional Cultural Institution" means a structure, fixture, or activity provided by a tax exempt entity located within the council area that has been in existence for at least eighteen (18) consecutive months before becoming eligible for funding under the Act. "Regional Cultural Institution" may include a zoological institute; a science center, whether or not it is affiliated with a private educational institution; a public broadcast station as defined by Section 397 of Subpart E of Part IV of Title III of the Communications Act of 1934, being 47 USC 397, whether or not the public broadcast station is affiliated with an institution of higher education; a museum, whether or not it its affiliated with a private educational institution; a historical center; a Performing arts center; a visual or performance art instruction center affiliated with an independent institution of higher education in the arts; an orchestra; a chorus; a chorale; or an opera theater. "Regional Cultural Institution" does not include a professional sports arena or stadium; a labor organization; a political organization; a library; a public, private, or charter school; or an exhibition, performance, or presentation that is obscene. 5. The Corporation shall have the power to provide funding or to supplement funding received from other sources, to the following regional cultural institutions from the funds identified in Article X, Section 5 of these Articles: a. Cranbrook Art Museum. b. Cranbrook Institute of Science. c. Cranbrook House and Gardens. -5- d. Charles H. Wright Museum of African-American History. e. Center for Creative Studies, for use in Community and Outreach Programs. f. Detroit Historical Museums. g. The Detroit Institute of Arts. h. Detroit Public Television. i. Detroit Science Center. j. Detroit Symphony Orchestra. k. Detroit Zoological Institute. 1. Henry Ford Museum/Greenfield Village. m. Holocaust Memorial Center. n. Meadow Brook Hall. o. Meadow Brook Theater. P. Michigan Opera Theatre. q. Music Hall Center for the Performing Arts. r. Any other organization or program that meets the definition and requirements of "Regional Cultural Institution" defined in this Article IX, Section 4 of these Articles provided that the institution is added by a vote of the Council Board using the weighted vote methodology set forth in Article XL, Section 2 of these Articles. 6. The Corporation shall have the power to levy on all the taxable real and personal property within the Council area an ad valorem tax of not to exceed 0.5 mils of the taxable value of the taxable property. A tax authorized to be levied by the Council under the Act shall be levied and collected at the same time and in the same manner as provided by the general property tax act, Public Act 206 of 1893, as amended, being MCL 211.1, et seq; MSA 7.1, et seq. The Council shall not levy a tax except on the approval of a majority of the qualified and registered electors residing in the Council area and voting collectively on the question. However, should a majority of the qualified and registered electors residing in any participating qualified county voting on the issue disapprove a -6- proposal to levy an ad valorem tax, the Corporation shall immediately be dissolved and no tax shall be levied. 7. The Corporation shall have the power to apply for and accept grants, loans, or contributions from the Federal government or any of its agencies, the State of Michigan or any of its agencies, or other public or private agencies to be used for any of the Corporation's purposes. 8. The Corporation shall have the power to sell or lease property acquired for the Corporation's purposes but not needed for those purposes. 9. The Corporation shall have the power to sue or be sued in any court in Michigan. 10. The Corporation shall have the power to hire employees, attorneys, accountants, and consultants. 11. The Corporation shall have the power to acquire and hold by purchase, lease, grant, gift, devise, land contract, installment purchase contract, bequest, condemnation, or other legal means, real and personal property within or without the participating qualified city and qualified counties. The property may include franchises, easements, or rights-of-way on, under, or above any property. The Council may pay for the property from revenue of the Council. In order to acquire and hold real and personal property by condemnation, the Council must adopt a resolution which approves the acquisition by a vote of not less than two-thirds (2/3) of the Directors serving on the Council Board including at least one (1) Director from each participating qualified city and qualified county. 12. The Corporation shall not condemn public property. 13. The Corporation, through its Council Board, shall establish Accountability Standards for itself and for the institutions it funds. As a condition of receiving funds, the Chief Operating Officer and the Chairperson of the Board of Directors of each regional cultural institution shall be required to sign a contract that incorporates the Council Board's Accountability Standards. Among the Accountability Standards, which may be set forth in their entirety in a separate document are: a. The regional cultural institutions agree to maintain as their primary focus the delivery of the highest quality education, conservation, performance, and other cultural programs that enhance the lives of the region's residents, with special emphasis on families and children. b. The regional cultural institutions agree not to use the funds raised through the tax levy authorized under the Act, in whole or in part, to engage in or conduct exhibitions, performances, or presentations that are "obscene" as this term is defined in Section 43(e) of the Act, being MCL 124.693; MSA 5.4086(93). -7- c. The regional cultural institutions must annually present to the Council Board a written report of public programs and services. The regional cultural institutions must also annually appear before the Council Board to present a financial and program report and address questions. d. As a condition of continued funding, within one hundred eighty (180) days of the close of each regional cultural institution's fiscal year, it shall submit to the Council Board a certified audit of its financial statements completed by an independent certified public accounting firm. ARTICLE X 1. No part of the net earnings of the Corporation shall inure to the benefit of or be distributable to its Council Board members, officers, or other private persons, except that the Corporation shall be authorized and empowered to pay reasonable compensation for services rendered and to make payments and distributions in furtherance of the purposes set forth in Article II of these Articles. 2. The Council Board shall not expend money collected under the tax levy for administrative costs or for distributions to the qualified regional cultural institutions unless the specific expenditure is included in the Council's annual budget. For administrative costs, the annual budget shall be determined and approved by a vote of the Council Board members using the weighted vote methodology set forth in Article XI, Section 2 of these Articles. For distributions to the qualified regional cultural institutions, the annual budget shall be as determined pursuant to Article X, Section 6 of these Articles. 3. The Council Board shall authorize that not more than three percent (3%) of revenues received under the Act may be expended annually for administrative costs incurred under the Act. In accordance with the Act, not more than three percent (3%) of annual revenues received under the Act may be expended annually for those administrative costs. This section shall never be amended to include a higher percentage. 4. Pursuant to the Act, Oakland County shall receive one-third (1/3) of any net revenues collected within that county. However, notwithstanding that Oakland County shall receive such revenues, Oakland County's one-third (1/3) of the net revenues shall be returned to each city, village, or portion of a township within that county, and those net revenues shall be expended by the affected cities, villages, and portions of townships to fund only cultural and recreational programs and facilities that are not primarily designed or used for professional sports. In the event that this provision is determined to be in violation of the Act, then Oakland County shall distribute the revenues in accordance with the Act. -8- Wayne County shall not receive any net revenues collected within that county. Instead, one-third (1/3) of the net revenues collected in each city, village, or portion of a township within that county, shall remain in that city, village, or portion of a township, and those net revenues shall be expended by the affected cities, villages, and portions of townships to fund only cultural and recreational programs and facilities that are not primarily designed or used for professional sports. 5. Two-thirds (2/3) of the revenues collected from the one-half (1/2) mill levy, less administrative costs (as determined pursuant to Article X, Section 2 of these Articles), shall be appropriated to regional cultural institutions listed in or approved pursuant to Article IX, Section 5(a) through (r) of these Articles. Those funds shall be allocated proportionally to those institutions, based on a plan described in Section 6 of this Article. In the first year of distributions, no regional cultural institution shall receive more than $4 Million ($4,000,000) from this distribution. In subsequent years, the $4 Million ($4,000,000) cap shall be increased in the same proportion that the revenues from the ad valorem tax increases. 6. In the first year, the revenues collected under the ad valorem tax levied by the Council under the Act shall be distributed under the plan described in this section. For purposes of the distribution, terms used in this section are defined as follows: "Distribution Cap" means $4 Million ($4,000,000) in the first year of distributions. For subsequent years, the Distribution Cap shall be increased proportionately as described in Section 5 of this Article. "Operating Expenses" means the operating expenses for a Regional Cultural Institution for a given fiscal year as determined by each Regional Cultural Institution in its annual audited financial statements. For those Regional Cultural Institutions under contract with concessionaires for food or other concessions or both, Operating Expenses include those costs and expenses associated with those contracts. For those Regional Cultural Institutions that are a -component part of a system of related organizations, Operating Expenses include administrative services fees paid to a related organization. "Proportionate Share" means the ratio of each Regional Cultural Institution's Operating Expenses to the Total Operating Expenses of all Regional Cultural Institutions, such ratio to be represented as a percentage and attributed to each Regional Cultural Institution. "Regional Cultural Institutions" means those institutions identified in Article DC, Section 5 of these Articles. "Total Distribution Amount" means two-thirds (2/3) of the total revenues collected under the ad valorem tax levied by the Council under the Act minus administrative costs. -9- "Total Operating Expenses" means the sum of the Operating Expenses of all of the Regional Cultural Institutions using an average of the three (3) most recent fiscal years as submitted to the Council Board by each of the Regional Cultural Institutions. Each Regional Cultural Institution shall submit to the Council Board its Operating Expenses for the three (3) most recent fiscal years. Together with a statement of its Operating Expenses for the three (3) most recent fiscal years, each Regional Cultural Institution must include a calculation by which it determined the three (3) year average. Using the submitted information and after verifying the calculations, the Council Board shall determine the Total Operating Expenses of all Regional Cultural Institutions. In the first year, the distribution to each Regional Cultural Institution shall be calculated by multiplying each Regional Cultural Institution's Proportionate Share by the Total Distribution Amount (the "Calculation"), provided that no distribution to a Regional Cultural Institution may exceed the Distribution Cap. If, based on the Calculation, a Regional Cultural Institution would receive more than the Distribution Cap, that Regional Cultural Institution shall receive a distribution equal to the Distribution Cap and the remaining amount shall be placed in a "Redistribution Fund." The Redistribution Fund shall be distributed in proportionate amounts to the Regional Cultural institutions receiving less than the Distribution Cap. The same calculation formula shall be used except that the Operating Expenses of the Regional Cultural Institutions whose distribution is equal to the Distribution Cap shall not be included in the Total Operating Expenses. In the event any Regional Cultural Institution would receive more than the Distribution Cap because of a redistribution, the same Distribution Cap will remain and a subsequent Redistribution Fund shall be established and distributed in the manner described. For distributions after the first year, the Council Board shall develop a distribution formula, such formula to be adopted by a vote of not less than two-thirds (2/3) of the Directors serving on the Council Board including at least one (1) Director from each participating qualified city and qualified county. In the event that in any year following the first year's distribution, a distribution formula cannot be agreed upon, then the immediately prior year's approved distribution formula shall be utilized and shall include any institutions that were added pursuant to Article IX, Section 5(r) and were not part of the prior year's distribution formula. ARTICLE XI 1. Except to amend these Articles and to adopt a distribution formula described in Article X, Section 6 of these Articles, all votes of the Board of Directors shall be by a majority of weighted or valued votes of the Directors as described in Section 2 of this Article. -10- 2. Except as provided by Section 1 of this Article and otherwise required by law, each vote of the Directors shall be on a weighted or valued basis. The weight or value to be given to each Director's vote shall be determined by utilizing the dollars collected and contributed by the ad valorem tax to the Corporation from the participating qualified city or county that the Director represents. The weight or value to be given to each Director's vote shall be calculated using the following formula: a. For each participating and qualified city and county, the dollars collected and contributed from the ad valorem tax shall be totaled. b. The total contributions from the ad valorem tax for all of the participating city and counties shall then be added together. c. The total for Subsection (a) of this section (the numerator) shall be divided by the total of Subsection (b) of this section (the denominator) for each qualified county and city to determine the percentage of total contributions from the ad valorem tax, to the eligible institutions for each qualified and participating city and county. d. For each qualified and participating city and county, the quotient determined under Subsection (c) of this section shall be divided by three (3) (the number of directors from that specific jurisdiction) and then multiplied by ten (10) to determine the value of each director's vote for that city or county. ARTICLE XII The Corporation shall not participate in, or intervene in (including the publishing or distribution of statements) any political campaign on behalf of or in opposition to any candidate for public office nor shall the Corporation intervene, promote, endorse, raise or solicit funds for, or in any way be involved in ballot proposals, referenda, initiatives, recall of elected officials or participate in any other ballot or political issues. ARTICLE XIII Upon the dissolution of the Corporation, the Board shall dispose of all of the assets of the Corporation, after paying or making provisions for the payment of all of the liabilities of the Corporation, exclusively for the purpose of the Corporation in such manner, or distribute the assets to the State of Michigan or a political subdivision as the Council Board shall determine. Any such -1 1- assets not so disposed of shall be disposed of by the circuit court of the county in which the principal office of the Corporation is then located exclusively for such purposes or to such organization or organizations as said court shall determine which are organized and operated exclusively for such purposes. ARTICLE XIV 1. The Council Board shall prepare and publish annually a report of its finances. Such report shall include distributions, highlights of activities for the year, and summaries of audiences, programs, services, and facilities of funded regional cultural institutions. The report shall be mailed to one (1) or more newspapers of general circulation in the region. 2. The following documents shall be available for public review during regular business hours at the registered office of the Council Board: a. Current and past financial statements of the Council, and of regional cultural institutions; and b. Required operating, financial, and other reports of the regional cultural institutions receiving funds pursuant to the Act. ARTICLE XV Unless otherwise provided in these Articles or in the Act, these Articles may be amended by the adoption of a resolution by a vote of not less than two-thirds (2/3) of the Directors serving on the Council Board, including at least one (1) Director from each participating qualified city and qualified county; and an affirmative vote of a majority of the members elected to and serving on the legislative body of each participating qualified city and qualified county. Before the amendments are adopted by the participating city or county, they must be published at least once by the Clerk of the participating city or county in a newspaper generally circulated in that city or county. Upon adoption of the amendments, the clerk of each of the participating counties shall file a printed copy with the county and with the Michigan Secretary of State. As set forth in the Act, these Articles must be amended to add a qualified city or county and to evidence the withdrawal of a qualified city or county. ARTICLE XVI The duration of the Corporation shall be ten (10) years from the effective date of incorporation. -12- These Articles of Incorporation were adopted by an affirmative vote of a majority of the members serving on the City Council of the City of Detroit, Michigan at a meeting duly held on the day of Jackie L. Currie Detroit City Clerk These Articles of Incorporation were adopted by an affirmative vote of a majority of the members serving on the Board of Commissioners of the County of Oakland, Michigan at a meeting duly held on the day of , A.D., G. William Caddell Oakland County Clerk These Articles of Incorporation were adopted by an affirmative vote of a majority of the members serving on the Wayne County Commission, County of Wayne, Michigan at a meeting duly held on the day of , A.D., Teola P. Hunter Wayne County Clerk DASDATA\MY DOCUM:ENTS \GENERAL GOVERNMENTMETRQ fg.TS ARTICLES 0.DOC A sufficient majority having voted therefor, the adopted. resolution was SOLUT 21//a NE FOREGOING R I HEREBy Brookerson, County Extive Date Resolution #00201 August 10, 2000 Moved by Taub supported by Obrecht the resolution be adopted. Moved by Millard supported by Causey-Mitchell the resolution be tabled until the next Board meeting, August 24, 2000. Discussion followed. The Chairperson stated a " YES" vote would table the resolution until the next Board meeting and a "NO" vote would not. Vote on Millard's motion: AYES: Galloway, Millard, Moffitt, Causey-Mitchell, Douglas. (5) NAYS: Gregory, Jensen, Law, McCulloch, McPherson, Melton, Obrecht, Palmer, Patterson, Sever, Suarez, Taub, Amos, Appel, Buckley, Colasanti, Coleman, Dingeldey. (18) A sufficient majority not having voted therefor, the motion failed. The Chairperson stated a " YES" vote would place the issue on the ballot and a " NO" vote would not. Vote on resolution: AYES: Gregory, Jensen, Law, McCulloch, McPherson, Melton, Obrecht, Palmer, Patterson, Sever, Suarez, Taub, Amos, Appel, Buckley, Colasanti, Coleman, Dingeldey. (18) NAYS: Millard, Moffitt, Causey-Mitchell, Douglas, Galloway. (5) STATE OF MICHIGAN) COUNTY OF OAKLAND) I, G. William Caddell, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on August 10, 2000 with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 10t4 f day 90e August, 2000. G. William Caddell, County Clerk OAKLAND COUNTY, MICHIGAN GENERAL ELECTION NOVEMBER 7, 2000 PROPOSAL A METROPOLITAN ARTS AND CULTURE COUNCIL CULTURAL, ARTS AND RECREATIONAL PROGRAMS MILLAGE PROPOSAL COUNTY OF OAKLAND AND COUNTY OF WAYNE The Metropolitan Arts and Culture Council, will support nonprofit regional cultural institutions and local arts and recreational programs within its operating area of Oakland and Wayne Counties. As provided for in Public Act 292 of 1989, as amended, the levy of a 0.5 mill ad valorem tax (50 cents per thousand dollars of taxable value) will be on the taxable value of taxable real and personal property located within Oakland and Wayne Counties, for ten years, 2001 — 2010, inclusive. If approved and levied, this new additional millage will generate approximately $44,000,000 in 2001. Shall this proposal be adopted? YES NO