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HomeMy WebLinkAboutResolutions - 2023.11.16 - 40697 AGENDA ITEM: 2023 No-Cost Amendment to NOTA Public Transportation Agreement DEPARTMENT: Economic Development - Oakland County Transit Division MEETING: Board of Commissioners DATE: Thursday, November 16, 2023 9:30 AM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2023-3501 _ 23-150 Motion to adopt the attached suggested resolution. ITEM CATEGORY SPONSORED BY Amendment Yolanda Smith Charles INTRODUCTION AND BACKGROUND After voters approved the Oakland County Transit Millage in 2022, the County entered into agreements with five public transportation service providers. Those Public Transportation Agreements expire on December 31, 2025, per Article 18.8. The Agreements contain Exhibit A- Scope of Services to be provided and Exhibit B- Budget which describes the payment terms to be rendered for those services, respectively. Exhibit B states that "except as extended, modified or amended...the Terms of Payment...shall expire on December 31, 2023." The scope of services and payment terms may be amended from time to time since it was anticipated that the County would work collaboratively with the providers to effectuate the expansion of transportation services throughout the term of the Agreement, as expressed in subsection 2.2, and consequently it was anticipated that amendments to the Agreements would be implemented to effectuate agreed upon changes in services. The North Oakland Transportation Authority (NOTA) has been working diligently with local communities to expand their service area and has made a formal request for a "no cost" amendment to the Agreement. Throughout the course of 2023, NOTA has expanded select services for residents of Brandon Township, Village of Ortonville, Independence Township, City of the Village of Clarkston, and Springfield Township. NOTA's expanded service area is shown on the map in the amended Exhibit A. The no-cost budget adjustments to the budget as presented in the amended Exhibit B total $859,200, by proposing to add: • $113,057 in increased Revenue Total • $3,500 in increased Operating Expenses Total and reallocate: • $415,577 in Salary and Benefits Total • $164,866 in Program Cost Total • $20,000 in Building Cost Total to: • $640,000 in increased Capital Costs - Vehicles to purchase 2 Transit vans, 7 minivans, and an F-250 snow plow truck • $70,000 Capital Costs - Other: Capital Costs for vehicle depreciation Subsequent to the Transit Ad hoc committee, two minor adjustments have been made to the Exhibits as follows. In Exhibit A, the “Mobile Mechanic” was deleted from the description at NOTA’s request. In Exhibit B, Administrative Adjustments were made to the proposed budget line items addressing spreadsheet data entry issues. There is no overall adjustment in the $710,000 increased expense amendment for Vehicle acquisition and Depreciation Expense as the adjustments only impacted the reporting of the Revenue items. Transit Division and Corporation Counsel staff have reviewed the proposed adjustments with NOTA staff to discuss the process of this amendment request for the addition and reallocation of revenue for vehicle acquisition and ensure the expenditures are allowed within the Transit Millage and Public Transportation Agreement language, among other items. Any amendments to the Agreements must be in writing (subsection 14.1). Therefore, Corporation Counsel has recommended that staff present a "no-cost " amendment in support of those providers' request. This item includes a Miscellaneous Resolution and proposed Amended Exhibit A and Amended Exhibit B for consideration and approval. BUDGET AMENDMENT REQUIRED: No Committee members can contact Michael Andrews, Policy and Fiscal Analysis Supervisor at 248.425.5572 or andrewsmb@oakgov.com, or the department contact persons listed for additional information. CONTACT Eli Cooper, Manager Transit ITEM REVIEW TRACKING Aaron Snover, Board of Commissioners Created/Initiated - 11/16/2023 David Woodward, Board of Commissioners Approved - 11/16/2023 Hilarie Chambers, Executive's Office Approved - 11/17/2023 Lisa Brown, Clerk/Register of Deeds Final Approval - 11/17/2023 AGENDA DEADLINE: 11/16/2023 9:30 AM ATTACHMENTS 1. 2023 Amendment of Interlocal contract NOTA 2023 1a 2. NOTA ExhibitA Oct Amendment_101923 3. NOTA Exhibit B Oct Amendment_101923 COMMITTEE TRACKING 2023-10-16 Transit Ad Hoc - Refer to Economic Development & Infrastructure 2023-11-08 Economic Development & Infrastructure - Recommend to Board 2023-11-16 Full Board - Adopt Motioned by: Commissioner Yolanda Smith Charles Seconded by: Commissioner Philip Weipert Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Kristen Nelson, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson, Janet Jackson, William Miller III, Yolanda Smith Charles, Brendan Johnson, Ajay Raman (17) No: None (0) Abstain: None (0) Absent: Charles Cavell (1) Passed November 16, 2023 RESOLUTION #2023-3501 _ 23-150 Sponsored By: Yolanda Smith Charles Economic Development - Oakland County Transit Division - 2023 No-Cost Amendment to NOTA Public Transportation Agreement Chair and Members of the Board: WHEREAS after voters approved the Oakland County Transit Millage in 2022, the County entered into agreements with five public transportation service providers; and WHEREAS the Public Transportation Agreements contain Exhibit A: Scope of Transportation Services and Exhibit B: Budget which may be amended from time to time; and WHEREAS the North Oakland Transportation Authority (NOTA) requested a no-cost amendment to Exhibit A to expand their service area and Exhibit B to increase revenues and reallocate their expenses by reallocating budget funds; and WHEREAS the North Oakland Transportation Authority will increase revenue, $113,057, and reallocate budgeted funds from Salary and Benefits, Program Cost, and Building Cost to Capital Costs - Vehicles, $640,000, to purchase 2 Transit vans, 7 minivans, and an F-250 snow plow truck and to Capital Costs - Other: Capital Costs, $70,000, for vehicle depreciation, as shown in Amended Exhibit B. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby approves the no-cost amendment to the attached Amended Exhibit A and Amended Exhibit B from the Public Transit Agreement between NOTA and Oakland County. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners authorizes the Chair of the Board to execute the Amendment of Agreement on behalf of Oakland County. BE IT FURTHER RESOLVED that no budget amendment to the Oakland Transit Fund is required at this time. Chair, the following Commissioners are sponsoring the foregoing Resolution: Yolanda Smith Charles. Date: November 16, 2023 David Woodward, Commissioner Date: November 17, 2023 Hilarie Chambers, Deputy County Executive II Date: November 17, 2023 Lisa Brown, County Clerk / Register of Deeds COMMITTEE TRACKING 2023-10-16 Transit Ad Hoc - Refer to Economic Development & Infrastructure 2023-11-08 Economic Development & Infrastructure - Recommend to Board 2023-11-16 Full Board - Adopt Motioned by Commissioner Yolanda Smith Charles seconded by Commissioner Philip Weipert to adopt the attached Amendment: 2023 No-Cost Amendment to NOTA Public Transportation Agreement. Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Kristen Nelson, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson, Janet Jackson, William Miller III, Yolanda Smith Charles, Brendan Johnson, Ajay Raman (17) No: None (0) Abstain: None (0) Absent: Charles Cavell (1) Passed ATTACHMENTS 1. 2023 Amendment of Interlocal contract NOTA 2023 1a 2. NOTA ExhibitA Oct Amendment_101923 3. NOTA Exhibit B Oct Amendment_101923 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 November 16, 2023, 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 on Thursday, November 16, 2023. Lisa Brown, Oakland County Clerk / Register of Deeds Page 1 of 3 INTERLOCAL AGREEMENT OAKLAND COUNTY EXECUTIVE, DAVID COULTER AMENDED EXHIBIT A 2023 NORTH OAKLAND TRANSPORTATION AUTHORITY SCOPE OF TRANSPORTATION SERVICES Scope of Work Summary: Current Services The North Oakland Transportation Authority (NOTA) has been providing transportation services since 2001 to qualifying residents of Addison Twp, Oxford Twp, Orion Twp, Lake Orion, Leonard, and Oxford Village and has recently expanded their service area to provide select services for residents of Brandon Township, Village of Ortonville, Independence Township, City of the Village of Clarkston, and Springfield Township. Eligible riders include seniors over 60, people with disabilities, and low-income residents along with a companion rider. NOTA accommodates trips to work, medical appointments, shopping, and community events within the driving boundary. In addition, NOTA operates a trolley with limited service between Downtown Oxford and Downtown Lake Orion. Currently, there is a staff of 9 full time and 29 part time employees that provide administration, dispatch and vehicle operation services. The fleet of 25 vehicles provided 40,897 rides in 2022 (average 150-200 rides per day); weekdays from 6:00 a.m. – 9:00 p.m. and weekends from 8:00 a.m. – 4:00 p.m. The cost was $1 for all one-way rides to Orion, Oxford, and Addison Twp and $2 for all other one-way rides in the service area. NOTA did not charge fares from April 2020 to January 2023 due to COVID. 2023 Service Expansion Utilizing Oakland County Millage Funds •Increase hourly wage rates and benefits to become more competitive in the current job market. •Increase number of routes and frequency. •Adjust cost per stop to $2.00 (two dollars) for all riders. Page 2 of 3 INTERLOCAL AGREEMENT OAKLAND COUNTY EXECUTIVE, DAVID COULTER •Hire and train additional staff (drivers and dispatch). •Improve and expand existing parking lot to accommodate new transit vehicles, fuel center and electric vehicle charging station infrastructure. •Improve existing office space to accommodate new employees. •Begin to implement services in expanded geographic service areas on limited basis. •Collaborate with other transportation providers, Oakland County and local communities to identify expanded geographic service areas and transfer stops to offer eligible riders expanded seamless service to other areas of the county. Page 3 of 3 INTERLOCAL AGREEMENT OAKLAND COUNTY EXECUTIVE, DAVID COULTER Page 1 of 3 INTERLOCAL AGREEMENT OAKLAND COUNTY EXECUTIVE, DAVID COULTER AMENDED EXHIBIT B 2023 NORTH OAKLAND TRANSPORTATION AUTHORITY BUDGET Oakland County Public Transportation Millage Funds: $2,847,605 to Maintain Current Services plus 2023 Expansion of Services (not to exceed) Terms of Payment for Services: Payment for the Scope of Work as described in Amended Exhibit A will be as follows: Oakland County will distribute an amount not to exceed $2,847,605 (Two Million Eight Hundred Forty-seven Thousand Six Hundred and Five Dollars) in Public Transportation Millage Funds to the North Oakland Transportation Authority (NOTA) for the scope of work that is incorporated into this Agreement as Amended Exhibit A. NOTA will receive a lump sum payment to be disbursed by the County within 30 days of this Agreement being fully executed. Except as extended, modified or amended pursuant to Article II and/or Article III of the Agreement, the Terms of Payment set forth herein shall expire on December 31, 2023. Page 2 of 3 INTERLOCAL AGREEMENT OAKLAND COUNTY EXECUTIVE, DAVID COULTER Page 3 of 3 INTERLOCAL AGREEMENT OAKLAND COUNTY EXECUTIVE, DAVID COULTER *NOTA under-budgeted its Revenues by $113,057 and over-budgeted its Expenses by $563,943, leading to an excess of $710,000 which is being reallocated for vehicle purchase and the associated vehicle depreciation cost. *