HomeMy WebLinkAboutResolutions - 2021.06.17 - 34610MISCELLANEOUS RESOLUTION; #21221 June 17, 2021
BY: Commissioner David T. Woodward, District #19
IN RE: BOARD OF COMMISSIONERS — LOCAL ROAD IMPROVEMENT PROGRAM FISCAL YEAR
2021 APPROPRIATION WITH THE CITY OF BERKLEY — PROJECT NO. 2021-02
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen;
WHEREAS the Oakland County Board of Commissioners has authorized the Local Road Improvement
Program to assist Oakland County's cities and villages with the construction, maintenance and repair of
roads under the supervision, direction and control of cities and villages; and
WHEREAS Miscellaneous Resolution #16103 provides that any Oakland County appropriation in support
of the Local Road Improvement Program shall be distributed only after completion of all requirements of
the Program are met.
WHEREAS on December 7, 2020, the Board of Commissioners approved Miscellaneous Resolution
#20635 which designated $2,000,000 in fund balance for the Local Road Improvement Program for projects
managed by the Board of Commissioners; and
WHEREAS Oakland County's share of the Fiscal Year 2021 authorized amount of the Local Road
Improvement Program funding for Project No. 2021-02 in the City of Berkley is $39,245, and
WHEREAS a public hearing regarding the project has been held before the Board of Commissioners in
accordance with the requirements of MCL 123.872; and
WHEREAS upon review of the project application, the Board of Commissioners has determined that the
completion of the project will encourage and assist businesses to locate in Oakland County.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby approves
the project submitted by the City of Berkley and authorizes the release of Local Road Improvement Program
funds from the Oakland County Assigned Fund Balance.
BE IT FURTHER RESOLVED that the Chairman of the Board of Commissioners is authorized to execute
the cost participation agreement with the City of Berkley prepared by Corporation Counsel for the Local
Road Improvement Program Project No. 2021-02.
BE IT FURTHER RESOLVED that the Oakland County Clerk is requested to forward copies of this
resolution to Oakland County Fiscal Services and the City of Berkley.
BE IT FURTHER RESOLVED the FY 2021 budget will be amended as follows:
GENERAL FUND (#10100) FY 2021
Revenue
9010101-196030-665882 Planned Use of Balance $39,245
Total Revenue U9.24
Expenditures
9010101-153000-740085 Local Road Funding Program 39 245
Total Expenditures 2h
Chairperson, I move the adoption of the foregoing Resolution
Commissioner David T. Woodward
District #19
ECONOMIC DEVELOPMENT AND INFRASTRUCTURE COMMITTEE VOTE:
Motion carried on a roll call vote with Markham absent.
LOCAL ROAD IMPROVEMENT MATCHING FUND PROGRAM
COST PARTICIPATION AGREEMENT
Spray Patch and Mastic Road Repairs on Various City of Berkley Jurisdiction Streets
City of Berkley
Board Project No. 2021-02
This Agreement, made and entered into this 17T" day of JUNE, 2021, by and between the Board
of Commissioners of the County of Oakland, Michigan, hereinafter referred to as the BOARD,
and the City of Berkley, hereinafter referred to as the COMMUNITY, provides as follows:
WHEREAS, the BOARD has established the Local Road Improvement Matching Fund Program,
hereinafter the PROGRAM, for the purposes of improving economic development in Oakland
County cities and villages. The terms and policies of the PROGRAM are contained in Attachment
A. The BOARD intends the PROGRAM to assist its municipalities by offering limited funds, from
state statutory revenue sharing funds, for specific, targeted road maintenance and/or
improvement projects on roadways under the jurisdiction of cities and villages; and
WHEREAS, the BOARD shall participate in a city or village road project in an amount not
exceeding 50% of the cost of the road improvement, hereinafter referred to as the PROJECT, and
also not exceeding the Preliminary Distribution Formula as it relates to the COMMUNITY,
(Attachment B); and
WHEREAS, the COMMUNITY has identified the PROJECT as the spray patch and mastic road
repairs on various City of Berkley jurisdiction streets, which improvements involve roads under
the jurisdiction of and within the COMMUNITY and are not under the jurisdiction of the Road
Commission for Oakland County or state trunk lines; and
WHEREAS, the COMMUNITY has acknowledged and agreed to the BOARD's policies regarding
the PROGRAM, Attachment A, and further acknowledge and agree that the PROJECT's purpose
is to encourage and assist businesses to locate and expand within Oakland County and shall
submit a report to the BOARD identifying the effect of the PROJECT on businesses in the
COMMUNITY at the completion of the PROJECT. In addition, the COMMUNITY acknowledges
that the program is meant to supplement and not replace funding for existing road programs or
projects, and
WHEREAS, the COMMUNITY has acknowledged and agreed that the PROGRAM is expressly
established as an annual program and there is no guarantee that the PROGRAM will be
continued from year to year. The BOARD anticipates that most PROJECTS funded under the
PROGRAM will be completed by the end of calendar year 2021. There is no obligation on behalf
of the BOARD to fund either the PROJECT or the PROGRAM in the future, and
WHEREAS, the COMMUNITY has acknowledged and agreed that the COMMUNITY shall
assume any and all responsibilities and liabilities arising out of the administration of the PROJECT
and that Oakland County shares no such responsibilities in administering the PROJECT, and
WHEREAS, the estimated total cost of the PROJECT is $150,000; and
WHEREAS, said PROJECT involves certain designated and approved Local Road Improvement
Matching Funds in an amount not to exceed $39,245, which amount shall be paid to the
COMMUNITY by the BOARD; and
WHEREAS, the BOARD and the COMMUNITY have reached a mutual understanding regarding
the cost sharing of the PROJECT and wish to commit that understanding to writing in this
Agreement.
NOW, THEREFORE, in consideration of the mutual covenants set forth herein and in conformity
with applicable law and BOARD resolution(s), it is hereby agreed between the COMMUNITY and
the BOARD that:
1. The BOARD approves of the PROJECT, and in reliance upon the acknowledgements
of the COMMUNITY, finds that the PROJECT meets the purpose of the PROGRAM.
2. The BOARD approves of a total funding amount under the PROGRAM for the
PROJECT in an amount not to exceed $39,245. The COMMUNITY shall submit an invoice to the
COUNTY in an amount not to exceed $39,245.
a. The Invoice shall be sent to:
Lynn Sonkiss, Manager of Fiscal Services
Executive Office Building
2100 Pontiac Lake Road, Building 41 West
Waterford, MI 48328
3. Upon receipt of said invoice and upon execution of this Agreement, the BOARD shall
pay the COMMUNITY in an amount not to exceed $39,245 from funds available in the
PROGRAM.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and date first
written above.
OAKLAND COUNTY BOARD OF COMMISSIONERS
By:
David T. Woodward
Its: Chairman
COMMUNITY
By
Its:
Attachment "A"
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 Tri-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 is continuing the success of the pilot program launched in
2016 that was more flexible than the current Tri-Party Road Program, one that allowed 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 P.A 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
Page 1 of 5
help its cities and villages accomplish this through its Local Road Improvement Matching Fund
Program, commonly known as the Local Road Improvement Program (LRIP).
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 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 Local Road Improvement Matching Fund Program:
PROGRAM SUMMARY
The Board of Commissioners established a Pilot Local Road Improvement Matching Fund
Program through Miscellaneous Resolution #16103 for the purposes of improving economic
development in Oakland County cities and villages. The County intends to continue 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.
Page 2 of 5
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 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.
Page 3 of 5
3. A percentage derived from the three-year rolling 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, using the most recent data available. The crash data
will be supplied by the South East Michigan Council of Governments (SEMCOG).
Each city and village's 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 Board of Commissioners shall establish a Special Committee on the Local
Road Improvement Program. This Special Committee 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 Special Committee to direct the administration of this program,
receive applications for program funding, and make recommendations of acceptance to the Board
of Commissioners. The Special Committee may consult with County departments, staff, the South
East Michigan Council of Governments (SEMCOG), and the Road Commission for Oakland
County in the conduct of its business.
DISBURSEMENT
The Special Committee 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:
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 Special Committee, 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 Economic Development and Infrastructure Committee of the Board of
Commissioners, who shall review and issue a recommendation to the Board on the adoption of
the resolution. A public hearing shall be scheduled 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 Special
Committee. The Special Committee 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.
Page 4 of 6
Upon completion of project plans and execution of the cost 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 Local Road
Improvement Program Special Committee.
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.
Page 5 of 5
LR|PDISTRIBUTION FORMULA
2021
/o*^xmmot^a^
'
2021 Local Road Improvement Program
Application
BACKGROUND: Oakland County has established a Local Road Improvement Program (LRIP) 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.
PROJECT POLICIES AND GUIDELINES: The Oakland County Board of Commissioners and the Local Road
Improvement Program Special Committee have established policies, procedures and guidelines for
project consideration. This document has been included as Attachment "A". View this document here:
hitos://drive.aooale.com/file/d/1 g8so8VJ7HamUzPSSM62Ci2QKMU608XhU/view?usp=sharing
AVAILABLE FUNDING: Oakland County's maximum contribution for projects in eligible cities or villages
has been established within the distribution formula included as Attachment "B". The table shows you
how LRIP funding is distributed for 2021 and the amount allocated to your community. The MAX
COUNTY MATCH column is each community's allocation. If your project does not meet the MINIMUM
PROJECT COST column amount, then your MAX COUNTY MATCH will be reduced. View this document
here: httDs:Hdrive.aooate.com/file/d/l8JiDvtBoEJNl 6lixiGKN6WMPo48Kr1 sQ/view?uso=sharinq
REQUIRED MATCHING FUNDS: A city or village participating in the Local Road Improvement Program
shall match any funds authorized by the Oakland County Board of Commissioners in an amount equal to
a minimum of 50% of the cost of the total project award. 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.
QUESTIONS regarding the application and approval process should be directed to Amy Aubry at
aubr a oakgov.com or by phone at 248-452-7056.
MUNICIPALITY *
City of Berkley
MUNICIPALITY ADDRESS *
Please include: STREET, CITY, and ZIP CODE
3338 Coolidge Hwy., Berkley 48072
CONTACT PERSON (Name) *
Please include the primary contact person for this program. All communications will flow through this individual. If
communications should he sent to multiple persons, please include all names.
Derrick Schueller
CONTACT TELEPHONE *
2486583499
CONTACT EMAIL ADDRESS(ES) *
dschuc-Iler@berkleym!ch.net
PROJECT DESCRIPTION *
Briefly identify which roads will be improved and describe the improvements being made as a part of your project plan.
Spray patch and mastic road repairs on various City of Berkley jurisdiction streets.
The Local Road Improvement Program has been established under MCL 123.872, the Gifts of
Property Act, which provides that "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." *
DESCRIBE HOW THE PROJECT MEETS THE STATUTORY REQUIREMENT OF MCL 123.872, ENCOURAGING AND
ASSISTING BUSINESSES TO LOCATE AND EXPAND IN THE COUNTY.
This project will improve economic development within the City of Berkley by providing a smooth and
safe road surface on numerous City streets. Many of the streets directly lead to the downtown business
district on 12 Mile Road and Coolidge Highway.
PROJECT BUDGET *
Provide a brief project budget that identifies your program allocation, your matching funds, and the total cost of your
project. Follow the link to view "Attachment B" for the 2021 Program Allocations. hltpaLLdLi.v-e_g000le.com/file/d
/18JiDvtBa EJN16hxiGKNbWM Po48Kr1 so/view?uso=shannq
$39,245 is the funding requested (full amount). The local match will be approximately $110,000. The
total project budget is estimated at $150,000.
If you have any supporting documentation you would like to include, please email files to
aubrya@oakgov.com.
ADDITIONAL INFORMATION (optional)
The Local Road Improvement Program Subcomittee of the Oakland County Board of Commissioners has been tasked
with managing this program and making recommendations for project approval. Please supply any additional
information you believe may be helpful in the consideration of your application.
County funding will be used to offset contractor costs hired by the City for road repairs. Specific streets
will be determined based on current surface conditions and latest PASER rankings.
REPORTING REQUIREMENT *
MCL 123.872 requires that "the grantor loan contract made by a county shall require a report to the county 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"
I, on behalf of the MUNICIPALITY stated above, understand and agree to comply with the
requirement to provide the Oakland County Board of Commissioners with a report following the
iscompletion of an approved project outlining the degree to which the project met the stated
purpose of the funding.
LOCAL ROAD IMPROVEMENT PROGRAM POLICY *
I, on behalf of the MUNICIPALITY stated above, have been provided with a copy of the Policies and
fSProcedures of the Local Road Improvement Program (Attachment "A") and agree to comply with
these terms and conditions.
By checking this box, I am certifying that the above information is true and accurate and agree to
12 the terms of the Local Road Improvement Program Policy.
This content Is neither created nor endorsed by Google.
Resolution #21221 June 17, 2021
Moved by Gingell seconded by Hoffman the resolutions on the amended Consent Agenda be adopted.
AYES: Charles, Gershenson, Gingell, Hoffman, Jackson, Joliet, Kochenderfer, Kowall, Kuhn,
Long, Luebs, Markham, McGillivray, Miller, Moss, Nelson, Spisz, Weipert, Woodward, Cavell. (20)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions on the amended Consent Agenda were adopted.
aa.4A Q L'
I HEREBY APPROVE THIS (RESOLUTION
CHIEF DEPUTY COUNTY EXECUTIVE
ACTING PURSUANT TO MCL 45.559A (7)
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown, 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 June 17, 2021,
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 Circuit Court at Pontiac,
Michigan this 17th day of June, 2021.
Lisa Brown, Oakland County