Crystal Report Viewer

1000 Rochester Hills Dr.

Rochester Hills, MI

48309

(248) 656-4600

Home Page:

www.rochesterhills.org

Rochester Hills

Minutes - Final

Police and Road Funding Technical

Review Committee

Don Cline, Jr., John Dalton, Dale Hetrick,

Tim Jacobson, Walter Johnson, Nancy Soisson, Ted Zellers

Council Members: Greg Hooper, Michael Webber

Youth Member: Ishan Patel

6:00 PM

1000 Rochester Hills Drive

Wednesday, February 24, 2010

CALL TO ORDER

Chairperson Cline called the Police and Road Funding Technical Review

Committee meeting to order at 6:02 p.m. Michigan Time.

ROLL CALL

John Dalton, Greg Hooper, Tim Jacobson, Don Cline, Walter Johnson,

Michael Webber and Ted Zellers

Present

7 -

Dale Hetrick and Nancy Soisson

Absent

2 -

Others Present:

Paul Shumejko, Transportation Engineer

Keith Sawdon, Director of Finance

PUBLIC COMMENTS

None.

APPROVAL OF MEETING MINUTES

2010-0098

Approval of Meeting Minutes - February 4, 2010

020410 Minutes.pdf

Resolution.pdf

Attachments:

A motion was made by Hooper, seconded by Cline, that this matter be Approved

as Presented. The motion CARRIED by the following vote:

Aye

Dalton, Hooper, Jacobson, Cline, Johnson, Webber and Zellers

7 -

Absent

Hetrick, Soisson and Patel

3 -

Resolved, that the Minutes of the Police and Road Funding Technical Review Committee

meeting held on February 4, 2010 be approved as presented.

DISCUSSION ITEM

2010-0063

Police and Road Funding Discussion

Police Road Recom 030711(1)(1).pdf

Rochester Hills Road Video outline (3).pdf

Rochester Hills Road Video outline-tlz-dah - r1 (3).pdf

Rochester Hills Road Video outline-tlz-r1 (2).pdf

2010_PQI_Map_Locals.pdf

Gravel_Roads.pdf

Street_Jurisdiction (2).pdf

Assesrol.xls

CC MTG_1994-01-25.pdf

Decling Rate Methodology_1988-02-24.pdf

Flyer from 1998.pdf

Local Rd Guidelines_1993-02-03.pdf

Local Rd Improvement Policy_1998-04-29.pdf

Local Rd Improvement_1998-05-08.pdf

Local Rd Policy Purpose and Intent_1998-05-08.pdf

Paving Gravel Stds_1998-04-29.pdf

Questions_Local Rd Forum_1997-05-14.pdf

Road Repair Costs.xls

SAD Apportionment Ltr_1990-05-23.pdf

SAD Checklist.pdf

SAD Info_Jan-2001.pdf

SAD Practices in MI_1994.pdf

2010 Survey SAD.pdf

Preliminary Millage Forecast #2.pdf

Spreadsheet Sorted by CC Ranking.pdf

Spreadsheet Sorted by Area.pdf

Spreadsheet Sorted by Timing.pdf

Spreadsheet Sorted by No Action Needed.pdf

Purpose and Charge.pdf

Mayor's memo w attachments.pdf

Attachments:

Chairperson Don Cline stated the discussion would begin with the SAD Policy

and that the committee members should have all received the 2010 Survey

SAD.

Mr. Paul Shumejko was present at the meeting to answer any questions

regarding the City's SAD Policies and stated that the 2010 Survey SAD was

prepared by the City's Engineering Department. Don Harning, City Engineer

had prepared the spreadsheet and Barbara Smith communicated with the

various communities that were included in this Survey.

Member Greg Hooper asked Mr. Shumejko if there was anything specific that

caught his attention about the other communities.

Mr. Shumejko stated that he had not reviewed it prior to this meeting.

Mr. Keith Sawdon commented that most of the communities had no funding

matches and were primarily funded by the district.

Member Hooper asked about the City's SAD Policy history and the amount of

funding matches.

Mr. Shumejko reported his recollection from 1998 or 1997 which was not a

local road policy but approval had been for the residents' individual costs to be

capped at $4,000.00 per assessment. He gave a brief description of the

calculation determinations that were made and reported that by the last SAD

which to his recollection was 2002, that some of the subdivisions were much

larger and accounted for larger frontages which resulted in an increase to the

City's construction expenditures. He stated that historically, most of the SADs

involving the City were for the paving of gravel roads and had not involved the

repavement of existing subdivisions.

Discussion ensued regarding the SAD processes, subdivision projects and how

residents would request to pursue a special assessment. The question was

asked if it was possible to research the affect on property values where the

roads had been repaved.

Mr. Shumejko responded that the Assessing Department has been collecting

data where roads had been paved from gravel and where roads had been

reconstructed, such as Shadow Woods. He recalled that the appreciation was

noticeable but not until two to three years had passed and homes were being

sold.

The committee members present discussed that the residents who elect

improvements will take care of the appearance of their properties. Discussion

moved to the difference in cost when paving whole subdivisions versus portions

of subdivisions. It was noted that heavy traffic flow would move from gravel

roads to the paved roads and that conflicts could occur between subdivisions

due to increased traffic concerns. From a cost and efficiency standpoint, It was

determined that it would be better to pave the subdivision as a whole rather than

in portions. Questions were asked by committee members if there are any

specific rules involved in setting up a special assessment district and Mr.

Shumejko responded that he thought the district could be set up as directed by

City Council.

A committee member asked if there is a maintenance plan in place for

emergency repairs such as potholes and other similar breakdowns in the road

surface and Mr. Shumejko spoke about the City's capital improvement plan

addressing some of the problem areas. Mr. Sawdon stated that funding

continues to be an issue as the City attempts to maintain and repair

deteriorations in the road surfaces. The committee members determined the

importance of having special assessments to be another way the residents

could set priorities and take an active part in the financial responsibility for the

roads to be reconstructed. Mr. Shumejko commented that one of the

challenges among homeowners would be the cost sharing issue of dividing the

financial responsibility equally among all of the homeowners for reconstruction

of concrete slabs in a subdivision rather than the financial cost falling solely on

the homeowner whose home is directly located at the site of the concrete slab to

be reconstructed.

Member Hooper stated that quick repair fixes to road surfaces will not last and

will result in the residents paying off their assessments on roads that are

deteriorating.

The question was asked, if the preparation of a SAD program would mean that

homeowners would fund the full cost of the road reconstruction and payments

could be spread out over a fifteen-year period.

Mr. Shumejko stated that part of the SAD programs used in the past were to

guarantee that the roads paved (from gravel) would last for the life of the

assessment payment cycle. He continued that because four inches of asphalt

was applied onto gravel roads, it was determined that within a certain time frame,

the subdivisions that had paved roads from gravel would also be eligible for an

application of an inch and a half of overlay funded by the City through its regular

maintenance program. He commented that it had been a cost effective road

program in the past, application of the overlays to pavement while it was still in

good condition extended the life of the road surface conditions and aided in the

preservation of the road before deterioration had set in.

Conversation ensued regarding the general public being shocked by the actual

costs for road reconstruction and the importance of road construction

educational programs to make this information well known to residents. It was

discussed whether Oakland Township and other communities were

experimenting with different types of gravel mixtures as well as crushed

limestone.

Member Walter Johnson suggested that the committee include in its

recommendations to Council for the combined use of a SAD with a Tax

Increment Financing (TIF) to give residents potential to receive a reduction in

their taxes in the future.

The committee members proceeded to inquire about the use of TIF, sharing

information about TIF, the structure and application of TIF, and that an oversight

board would determine the expenditure of TIF monies.

Member Hooper suggested that TIFs might operate similar to the operations of

the Brownfield Plan, as the value increases, the tax increases and the net

increase is captured into the Brownfield Plan and remains in the Brownfield Plan.

Mr. Sawdon commented that the questions would be good to address to the

City Assessor.

Chairperson Cline asked if there was anything further regarding the SAD

discussion.

Member Tim Jacobson stated that clarification needs to be made if the

committee determination is between gravel to pavement or reconstruction and

repair of existing concrete or asphalt roads and what those differences would be

so that the residents have a clear thought process. Residents have a tendency

to think in terms of what type of particular road surface they are currently living

with. People will have differences of opinion of how and when various types of

road surfaces should be fixed, paved, reconstructed or as to the performance of

scheduled maintenance.

The committee members then discussed their varying opinions as to the costs

for the different types of paving, gravel, reconstruction and reworking of existing

paved roads. The committee members asked Mr. Shumejko for a breakdown

of the miles of City road surface that is gravel and the miles of City road surface

that has been paved. Mr. Shumejko estimated approximately 26 miles of

gravel road which would be a little over 10% of the roads located in the City

which would leave approximately 230 miles of paved road. Comments were

made regarding possibly having the City offer a small percentage of seed

money from maintenance funds to subdivisions willing to fund the reconstruction

of its roads. Discussion turned to the residents' thought process of having

purchased paved roads and not wanting to pay for road paving again whereas

gravel road residents seem to understand that they have not purchased paved

roads. It was suggested by some committee members that if the paved road

surfaces were left unmaintained, the paved roads would return to gravel; other

members suggested that some residents believe that the City taxes should be

more than sufficient to fund the road repair and reconstruction costs. The

questions and ideas discussed by the committee members was to involve the

community as a whole for the road care and maintenance through a millage

vote but the realization that the community as whole would not feel that all roads

would be fairly maintained. It was suggested further that possibly a SAD

program would involve the community as a whole, subdivision by subdivision.

One committee member stated that there will always be residents who are not

interested in road maintenance, regardless of the location.

Mr. Shumejko stated that one of the challenges the funding committee faced

back in 2004 and 2005 was the fact that residents employed by the automotive

industry were only located in the City for 7 to 8 years and then moving onto

other cities. Therefore, those residents were not interested in a 15-year funding

plan if they did not expect to be residing within the City for that full length of time.

Member Ted Zellers suggested that while having the SAD program policy in

place is a good plan, it is important to choose a plan and be thoroughly

consistent. He gave an example that if several subdivisions have funded their

own road reconstruction and repair through the use of the SAD program, then in

3 or 4 years, if the City's finances were to improve and resulted in a neighboring

subdivision (from the original in the example) having its roads reconstructed

and repaired at the City's expense would result in controversy. This would be

the case for not allowing the SAD program policy to change year after year.

Member Hooper reported that the City Council had voted at its February 22,

2010 City Council Regular Meeting to put the .35 mills on the August 2010 ballot

and the language includes road reconstruction granting SADs, the generation of

over $1 million dollars which will not solve the City's road problems but would

provide funding for research of creative solutions or to use the funding toward

road repair.

Member Johnson asked if there was any benefit in taking the millage and

turning it into a bond.

Discussion ensued as to calculations for debt millage, debt schedule, taxable

value for spread millage rate and that the original millage rate had been higher

than the .35 being requested on the August 2010 ballot.

Member Hooper stated the importance of the educational campaign to make

sure the residents know that this millage is replacing an expiring millage and not

raising taxes. He stated further that the City's Attorney had advised against

using the word 'renewal' in the ballot language but that using 'replace expiring

rates' would be acceptable.

The committee members asked if there are any other millages expiring and it

was suggested that the Older Persons' Commission has an expiring millage

and would be submitting an item to be placed on the August 2010 ballot. It was

mentioned that Green Space has a millage that would be expiring in 2016.

Member Johnson asked about the City using American Bond products

because of the rebate offers.

Mr. Sawdon responded that those bonds are designed for use by entities who

have a lower credit rating. He stated his hesitation at using federal government

bonds wherein monies are promised to be sent every year but expressed his

hesitation if funding problems were to arise.

Chairperson Cline inquired if there will need to be separate approval to do this

bond assuming the millage is passed at election.

Mr. Sawdon responded that the bonds could be issued as a capital

improvement bond under General Obligation Limited Tax Capital Improvement.

The committee members then discussed about the best possible use of the

millage monies obtained to get the best possible use from them, the possibility

of fund matching, federal government funds for long term road projects and the

Act 51 funds.

Mr. Shumejko cautioned that the City has certain restrictions with the Act 51

funds because of its matching requirement as to some of the funding and with

all of the projects in the future, if the major road fund balance gets too low, the

City has committed to project obligations but would not have the funding for

those projects. He explained that for the M-59 road widening, there was

stimulus funding but for the Crooks interchange, Walton Boulevard and some

other upcoming commitments, the City has a contribution commitment for a

portion of the funds.

The question was posed regarding the availability of federal or state monies to

use for the City's local roads.

Mr. Shumejko stated his belief that federal and state monies are earmarked for

the roads in the federal highway system.

Member Michael Webber commented that for the Tienken Road Project, the

City's portion is 10% of the total project cost, which is still unknown at this time.

Mr. Shumejko stated that under initial road requests, the cost breakdown

assumption is always 80% federal, 10% City and 10% Road Commission, and if

the total expenditure comes under the earmark amount, the fund difference

goes back to the federal government.

Member Hooper suggested that the City could formulate an SAD Policy, the

money does not have to be spent and the millage would pass this policy.

Mr. Sawdon added because its earmarked.

Member Hooper continued that the 15% match from the City to the residents

could come from this money, the information could be provided to the

community to see if there is any interest from the residents in doing this.

Discussion among the committee members commenting that this would be a

good idea because if the money is spent in the first year, its gone and the

residents would question how the money was spent.

Mr. Shumejko added that one benefit would be giving the residents an active

role of determining which roads and how the money should be expended on the

roads and would help to eliminate competition among the subdivisions.

Mr. Sawdon commented that the 15% would not be generating a large enough

pool for all the work to be done.

Member John Dalton commented that he was in support of putting the

program together because if left up to the residents, they will wait until the road is

gone completely and reconstruction will be an absolute necessity rather than

performing overlay work which would be a much higher expense.

Member Hooper suggested that application of the millage monies could go

toward the overlay work in asphalt subdivisions.

One of the committee members added that the cost would be lower now at

$2,000 per unit or could inform the residents that if they wait 8 more years, it will

cost them $15,000.00.

Mr. Shumejko suggested that once a road has failed, the road has to be

completely reconstructed. However, applications of overlay to a road surface

can extend the life of a road.

A committee member commented that the committee seems to be in

agreement that various issues in the City will be in aggressive competition for

funding because the availability of resources have grown smaller. He stated

that performance of a better sales job regarding the important issues in the City

will be necessary because the City cannot afford to drift from whim to whim and

that the sooner the residents are educated about priorities, the sooner the SAD

policy needs to be in place and connected to expiring millages which would

create a history to follow, the necessity of creative fund raising and the

expenditure of such funds.

Member Hooper responded that it could be difficult to control an SAD policy

from change because the members of City Council change every two years

and can change the policy. He suggested that the committee could prepare a

policy recommendation that if the ballot is successful in August 2010, that the

City formulate an SAD Policy regarding shares presented and contributed. He

added that this could be part of the education campaign prior to August 2010.

Mr. Shumejko suggested that he could provide the committee with the past

SAD policies that could be tweaked to incorporate the 15%.

Discussion ensued that the money would be used on a yearly basis because

the City would have to go through a bonding process.

Member Webber asked if any committee members knew of any communities

that had been forced to take a tough stance with its residents because of the

condition of its roads.

Mr. Shumejko recounted a situation in Farmington Hills where the road was so

bad that the City informed the subdivisions that if monies could not be raised,

the City would go back to gravel roads and mill the asphalt into the mix and call

it good.

Member Webber responded that the City would not take that approach with

subdivisions but that some of the residents may have not resided in the City

long enough to know the history and condition of their subdivision roads.

Mr. Shumejko suggested that an education campaign would be ideal to notify

the homeowners associations of the status of their roads while the roads are still

in fairly good environmental condition and at lower costs for maintenance of the

road conditions.

Discussion continued regarding the schedules of homeowner association

meetings, it was suggested that flyers could be distributed and that the City

maintains a database of the City's roads and their conditions. It was suggested

that the pavement condition maps which are part of the City's Capital

Improvement Plans on the City's website could be used as part of the various

road condition reports. This would coincide with City Council moving toward

forecast planning, the residents would be involved in the planning process and

encourage further movement away from planning on a year-by-year basis.

Mr. Shumejko added that the City's software could allow him to set a base year

of 2010 and project forecasts of road conditions which could include the

conditions of various roads if nothing is done to maintain the integrity of the

roads.

Discussion moved along to the importance of educating residents regarding the

reconstruction and new construction of roads, the timelines, the costs and

funding plans, the need for the residents to share in the responsibility for the

condition of the roads.

One of the committee members asked if it would be Council's intention that with

the millage going out later this year, that the 2011 Budget would not reflect any

funds toward local road rehabilitation.

Member Hooper suggested that there may not be available monies in the

Mayor's budget and Mr. Sawdon responded that the budget can be amended if

the ballot is adopted before October 1, the County can be notified.

It was determined that more information would be available once the ballot is

voted upon and Budget projections are prepared.

Member Hooper asked Chairperson Cline if he would like the City Staff to

provide SAD Policy information and Mr. Sawdon to bring some numbers.

Chairperson Cline concurred and added that he is interested in how the

percentages would work.

Mr. Sawdon added that the capture could be analyzed and Member Hooper

added then ranges on percentage shares could be determined along with

average reconstruction and overlay cost. Member Hooper continued that the

committee's recommendation for a SAD Policy could have two parts to it, one

part would be for gravel surfaces to new pavement and the other part would be

for the reconstruction of existing asphalt surfaces.

Discussion continued that the Policy should address concrete replacement,

asphalt replacement and asphalt overlay and the different percentages along

with the City's contributions assuming the millage gets passed. Various

marketing and educational points were discussed as how best to reach the

residents, the incentives that could bring residents' participation particularly with

subdivisions that have been reconstructed.

Member Hooper gave an example of the OPC tax stating that for someone in

his age range would not be in receipt of immediate benefits but that the OPC tax

is an example of future planning.

It was suggested that for the committee's education campaign, the City's cable

channel could broadcast information including promotional videos regarding the

road surface condition updates as a communication medium to inform residents

of future road maintenance planning. Other suggestions were discussed

regarding information being made available to the schools, flyers stuck on

mailboxes and information available on the large screen tv that is utilized at

Festival of the Hills.

Discussion then evolved to determination of cost estimates for the road

projects, the sizing to be used whether its in miles, feet or lot sizes. Then

concrete and asphalt prices were discussed along with the grading work and

aggregate base being included in the overall construction costs and whether

asphalt overlay would be included in the cost estimates.

It was requested that the tax increment financing seminar should be put together

as well.

Discussion then turned to the City's website, the design and the information to

be posted and possible limitations as to the City's web capabilities and financial

limitations for expenditures of this nature.

Mr. Sawdon reported that there may be limitations as to specific promotion of

ballot language and Member Hooper added that members of City Council

would also have to exercise caution as to endorsement, promotion, display or

approval of ballot language. Discussion continued as to the information simply

being presented as factual information and defensible trends.

Member Hooper requested City Staff to check on the next homeowner

associations' meeting so that determination if a presentation could be made to

that group and what the target date might be.

The committee determined that the focus of its next couple of meetings would

be the educational campaign and formation of an SAD Policy.

2010-0096

2010 Election of Vice Chairperson

Resolution.pdf

Attachments:

It was the consensus of the committee to wait until the next meeting to move

forward with the election of a Vice Chairperson.

Postponed.

Resolved, that Dale Hetrick is appointed Vice Chairperson of the Police and Road

Funding Technical Review Committee for 2010.

ANY OTHER BUSINESS

Mr. Webber commented on the importance of the committee addressing the

police discussion to optimize the Sheriff's contract and once a meeting

schedule is in place, then one of the scheduled meetings could be planned so

that Captain Johnson could attend. He stated his understanding that the parks

discussion will have to be on the committee's back burner for the time being but

that he would like to revisit that topic in the future.

Chairperson Cline concurred stating that one of the topics would be police

funding, approximately three or four meetings from this date. He agreed that

the parks millage discussion would be revisited at a later date.

It was determined by a consensus of the committee members present, that the

meeting schedule would be determined at the next meeting when all of the

members would be in attendance.

NEXT MEETING DATE

Tuesday, March 16, 2010 - 6:00 p.m.

ADJOURNMENT

There being no further business before the Police and Road Funding Technical

Review Committee, Chairperson Cline adjourned the meeting at 7:45 p.m.

____________________________________

DON CLINE, JR., Chairperson

Prepared by Christine A. Wissbrun

Administrative Secretary, City Clerk's Office