Minutes meeting Called to Order

Wastewater Treatment Plant Ottotorium

1300 Market Avenue SW

September 22, 2014 – 3:00 p.m.

Rick Baker, Lamont Cole, Kim Frost, Howard Hansen, Tammy Helminski, Cindy Irving, Erick Kind, Josh Leffingwell, Mark Lewis, Mary Milanowski, Mark Miller, Beth Paskiewicz, Theresa Petko, Eric Pratt, Mark Rambo, Alex Smart, Tom Tilma, John Weiss, Tom Wesholski, Kevin Wisselink

(Presentation on file with official minutes)

Eric DeLong explained that the commission is here as a result of the process of transformation. The Transformation Advisors developed a plan with recommendations which included addressing the structural deficit, reforming public safety, investing in streets and infrastructure, and focusing on quality of life. The Transformation Advisors report led to the creation of the Sustainable City Platform which was approved by the City Commission.

Phase One of the Sustainable City Platform involved Sustainable Operations. Staff set goals of reducing total compensation and cost of operations. There were 77 different value streams. In order to achieve ongoing revenues from the general fund, revenues would need to meet or exceed ongoing expenditures. After four years of hard work, city staff achieved that. Phase two involved finding resources for Parks, which were in bad shape. Thanks to Friends of GR Parks and a group of citizens who did a lot of work to maintain the parks, plant trees, etc., we now have a viable park system. In November of 2013, there was an election. 67% of voters were in favor of it. Mark Miller was key to this, working through a group called Neighbors for Parks, Pools and Playgrounds. That gave us the opportunity to think about mobility, which includes vital streets, sidewalks and bike lanes.

The Sustainable Streets Task Force (SSTF) worked for over two years. In December, members of the SSTF came forward and said we have delivered our recommendations, we know what our vision for vital streets is, and we are ready to move forward. There was an election in May which won by 66%, giving City staff the ability to invest money in the public area and take additional revenue from the general fund to help achieve sustainable asset management. The City can now say that Parks are in good shape. They have taken mobility and have turned it into a positive. On the public side, the city has the resources to take care of the street lighting system, buildings, stormwater and other public facilities. Part of the role here in Vital Streets is to make sure investments help with Parks or Stormwater. Having this worked out and the ability to start saving money, we are on our way to achieving financial resiliency. We now have the opportunity to look at phase three, which is never going back. It is about making sure we have systems in place to ensure we can build this into a sustainable city platform. In that platform, City staff is here to make sure members of the Vital Streets Oversight Commission can achieve what they want to achieve.

Sustainable Streets Task Force- Rick Devries and Suzanne Schulz

Rick Devries and Suzanne Schulz gave a report on the Sustainable Streets Task Force. In 2002 the City appointed a 21^st Century Infrastructure Task Force to look at the condition of city streets and to make recommendations. Rick and Suzanne highlighted the recommendations and the key findings. – (Presentation on file with official minutes)

Tom Wesholski asked about the role of the independent auditors. Eric DeLong

replied that they will conduct an audit of the expenditure of funds. It will be in

the normal course of the annual audit.
Executive Order 2014-01- Vital Streets Implementation
After the election success, the City Commission started taking action. Staff created

Executive Order 2014 -01, which focuses on the implementation of the Vital Streets

Program. This is critical and mission driven. Rick Devries is in charge, supported by

his team.

the guidelines that the commission should be looking at.

The Vital Streets Oversight Commission was established on May 20^th. Some

members were appointed by the Mayor or City Commissioners, while some represent important stakeholder groups. Twenty of the twenty-five member Commission have completed the appointment process. The additional new members will come on as the commission moves forward. There is a charge that talks about the kind of things the commission will be doing. Eric DeLong asked commission members to read the charge to enable the understanding of the general scope of things to be accomplished with the Vital Streets Oversight Commission.
Fund Structure and Accounting

Scott Buhrer noted that part of the guidelines of the Sustainable Streets Task Force include setting up a separate fund structure. These funds will be isolated into a separate fund. There will be two separate funds in the CAFR (Comprehensive Annual Financial Report). Every dime needs to be accounted for. There will be an annual report. Looking at accounting, several criteria needed to be met. They had to meet accounting principles for reporting the CAFR, and they had to be consistent with the SSTF financing plan.

Bonds were issued for the purpose of conducting work that would be done immediately. Each year there will be a report that shows where the money is going. The money will come from income tax, gas and weight tax and bonds and the state level of commitment. Had we not done the advanced funding, we would not have been able to do any material work until calendar year 2016. We would have missed both the 2014 and 2015 construction seasons. We issued $17 million of bonds at 1.33% interest. This will actually save money by doing it in advance because we are saving those streets that can be saved now using lower cost fixes rather than waiting until they have degraded to the point of needing full reconstruction.

Mary Milanowski asked if there would be a report issued allowing access to the financial information. Scott Buhrer replied that staff will provide a report on the web site. Separate reports will account for all of the VSOC’s activities.

Eric Delong indicated that the longer you wait the more it costs to repair streets. There is a point where you can bring an asset back with a minor investment. He went through the 2014 Bond Uses and showed a Summary of Sources and Uses of Investment for 2015.

Regarding contract awards, Eric DeLong noted that July and August were big months. There have now been three rotomilling/resurfacing contracts awarded. A news release is included in the agenda packet.

Eric DeLong noted that we now have a Sidewalk Business Plan. At the time of the successful election in May, there was a backlog of projects to be completed.. John Hayes and his staff have devoted this construction season to cleaning up the backlog of projects and getting those out of the way. Next year we will look at extension of the sidewalk system. We will break the city into three areas. The inspectors will go out and do inspections. The idea is to put together a series of streets and do production work which will result in lower prices on sidewalk work.

Beth Paskiewicz explained that she did not want more sidewalks developed for business owners. She was more concerned with the sidewalks in the neighborhoods for people that need them. Eric DeLong stated that is what we need to look at. It is about making connections. Suzanne Schulz and Rick DeVries have been working with Erick Kind, of MDOT, on mobility on 28^th Street which is making a huge difference. We definitely want to talk about sidewalk priorities.

Kim Frost stated, as much as you think about getting people to the bus stops from their homes, it is also important to focus on the sidewalks when individuals get off the bus and into shopping malls, stores and doctor’s offices. Beth added she did not want to see the focus in front of storefronts and businesses, but rather make sure that everybody has good sidewalks.

Mary Milanowski noted that it was important how they get the public engaged. Down on the corner of Colindale and Leonard there is an area that often floods. It appears like the water is coming out of the ground. Mark DeClercq, City Engineer stated he would take a look at it. Cindy Irving indicated there was a 311 app where an individual could take a picture and send it to the City of the problem area.

Eric Pratt referred to the bond sale. He asked if that was planned to go to the market or has the sale occurred. Eric DeLong replied that they have been sold. That is how they accomplished 1.33%. Eric Pratt asked if commission members will have an opportunity to provide input on how the funds will be used. Eric DeLong replied that they try to set the context of the framework of the recommendation within that framework. Staff will bring recommendations and committee members can help develop them.

Tom Wesholski asked for an explanation of wedging and cape sealing. Eric DeLong stated that James Hurt and his crew started this work in June. Wedging is similar to triage, where we go out and put asphalt on top of the existing pavement. That is a temporary fix and not meant to be a permanent fix. The City has done about 40 sections of wedging. Cape sealing is a different approach involving gravel with a sealer coat. That has been done on about 16 miles of streets. By doing this we have done a lot to stabilize the condition for the next winter.

Old Business – None

New Business

Roles and Responsibilities

Regarding roles and responsibilities, Eric DeLong referred to the handout from the Committee of the Whole which describes the roles and responsibilities of the Vital Street Oversight Commission. Responsibilities include monitoring progress and reporting to the Commission on outcomes. One of the things that the SSTF put in their recommendations was to diversify sources of investments in streets. Just because we invested with income tax, we still need to keep looking for better solutions. One example is the State of Oregon and the State of Washington are experimenting with a per mile fee that is activated electronically. The idea that the task force had was to drive the nexus between consumption to paying so people are paying for their consumption. Income tax was as close as we could get at this time. As we go forward, there may be new ways or new sources of investments.

Josh Leffingwell stated that one of his concerns with using income tax is that it is not linked to use. People who drive very little are paying the same as someone who is driving a lot. It is not an equitable solution. The gas tax is linked to the actual use.

Eric DeLong specified that it was important for commission members to ensure that the vision of vital streets is implemented. We have to keep the vision in front of us as we are making investments. That is what the commission would like us to do. Advising on asset management strategies, balance and distribution through all areas of the city is also very important.

Eric Pratt noted that the downtown area is one destination. In looking at transportation comprehensively, we are talking about the movement of goods individuals and services; there is always an origin and destination. That was important keep in mind. Eric DeLong added that is why ITP is here because they are doing work on the Silverline and Lakerline.

Eric DeLong indicated that all materials will be shared with the City Commission. The background and charge to the VSOC incorporates what the investment guidelines state. The financial information in the packet can be talked about at the next meeting. It is a summary of investments and how they are being made. The statements represent the funds that Scott Buhrer was discussing. The first one is the Vital Street Statement of Operations. Then there is the Capital Projects Fund which is where the bond proceeds went. The commission will spend time on these at the next meeting.

Eric DeLong noted that most major boards have bylaws. The proposed bylaws of the Vital Streets Oversight Commission are patterned after the bylaws of the Planning Commission, the DDA and the Stormwater Oversight Commission. The bylaws of the Vital Streets Oversight Commission put forth a composition of 25 members with three-year terms and the expiration of terms. The bylaws talk about how City staff will support the VSOC, similar to the SSTF, staff will provide the commission with information for proper oversight. The bylaws also discuss recommendations and the role of the VSOC which is to monitor, review, recommend, advise and assist. There will be a chairperson who will lead the meeting and help manage the meeting process. There will be a vice chairperson who will chair the meetings if the chairperson can’t be present. The vice chairperson will have responsibility for signing the minutes. The VSOC has the responsibility to have regular meetings. The commission will meet monthly, for now, as there is a lot of work to do. Eventually, quarterly meetings may be possible. There can also be special meetings called if necessary. All of our records are public. The commission will be using Robert’s Rules of Order with formal motions and seconds. Voice votes will be recorded. There will be a regular agenda and an annual report.

Motion by Mary Milanowski, supported by Lamont Cole, to approve the bylaws for the Vital Streets Oversight Commission.

MOTION CARRIED.

Motion by John Weiss, supported by Howard Hansen, to nominate Cindy Irving as Chairperson of the Vital Street Oversight Commission.

Cindy Irving accepted the nomination.

Motion by Tom Wesholski, supported by Kim Frost, to nominate Josh Leffingwell as Chairperson of the Vital Streets Oversight Commission.

Josh Leffingwell accepted the nomination.

Cindy Irving stated that the opportunity to sit on the SSTF was very enlightening. The committee made a lot of decisions and commitments and was a diverse group with differing opinions. It is important to her that everyone’s opinions be respected as they move forward. She had the opportunity to present with the City of Grand Rapids to several community groups, including Senior Advocates. There were 150 members in the room and she stood as a representative of the task force and made promises to everyone about how the taxes are going to be spent. It is really important to adhere to those promises.

Josh stated that his work with the SSTF was very educational. They learned about how streets are funded. Also living in the City of Grand Rapids and being an advocate for the neighborhoods and someone who uses all forms of transportation he feels this work is important.

Motion by Lamont Cole, supported by Alex Smart, that first runner up for Chairperson be made Vice Chairperson

MOTION CARRIED.

Cindy Irving was voted Chairperson of the Vital Streets Oversight Commission.

Josh Leffingwell will be Vice-Chairperson of the Vital Streets Oversight Commission.

Future Meeting Schedule

Motion by Beth Paskiewicz., supported by Mark Rambo, that the remaining meetings for the calendar year of the Vital Streets Oversight Commission take place on the third Monday of the month. (October 20, November 17 and December 15)

MOTION CARRIED.

If a member of the VSOC is not available to attend a meeting, a representative can attend but will not be able to vote. There was discussion regarding changing the location of the meeting. John Weiss offered to host the October meeting at the Grand Valley Metropolitan Council.

The Chair will work together with staff on the agenda. Mary Milanowski suggested general public engagement. A distribution list of commission members’ contact information will be distributed to commission members.

Eric DeLong thanked commission members. He stated that this is a great group and he is looking forward to working with everyone.

The Vital Streets Oversight Commission was adjourned at 4:51 p.m.

Submitted by,

Alicia Bernt

Approved by,

Josh Leffingwell, Vice-Chairperson