2015 Strategic Plan Adopted December 2014 Revised January 2015

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1 2015 Strategic Plan Adopted December 2014 Revised January 2015

2 TABLE OF CONTENTS Executive Summary 2 Introduction 2 Finance 2 Routine Maintenance.. 3 Winter Maintenance. 3 Road and Bridge Conditions. 4 Traffic and Safety. 5 Buildings and Equipment 5 Advocacy and Communication.. 5 Summary 6 Strategic Plan 8 Benefits of Strategic Plan.. 9 Strategic Objectives and Performance Measures. 10 Kent County Road Network. 13 Finance.. 13 Revenues. 13 Expenditures Fund Balance 16 Routine Maintenance.. 17 Winter Maintenance 17 Engineering. 20 Primary Road Conditions Local Road Conditions 23 Traffic and Safety. 24 Buildings and Equipment 25 Advocacy and Communication.. 28 Summary 30 Appendix 32 Capital Improvement Schedule: Buildings. 33 Capital Improvement Schedule: Equipment 34

3 INTRODUCTION The intent of the 2015 Kent County Road Commission Strategic Plan is to establish a set of objectives and performance measures that will guide the Kent County Road Commission in determining how best to allocate resources in accordance with its mission, values, and vision. MISSION VALUES VISION To serve Kent County with a safe, reliable, and efficient transportation network KENT COUNTY ROAD NETWORK Safety High-Quality Service Preservation of Assets Collaboration and Coordination Sound Financial Management To Be the Premier County Transportation Network in Michigan The Kent County Road Commission (KCRC) is responsible for safe and efficient operation of Michigan s second largest county road network. Consisting of 1955 miles of roads and 172 bridges within the County of Kent, the network is exclusive of those roadways and bridges that fall under the jurisdiction of the State of Michigan, cities and villages. The Commission also provides routine maintenance services, including snow and ice removal, for 436 miles of state trunklines under a multi-year contract with the Michigan Department of Transportation (MDOT). FINANCE KCRC revenues peaked in 2004 and declined through Since then, revenues have continued to increase modestly at approximately 1.25% annually, but funding has not been restored to 2004 levels. A history of insufficient funding coupled with ongoing increases in costs have curtailed construction and preservation work. As a result, over the 10-year period, the KCRC Expenditure Trends FY2004 FY2012 condition of the road system has declined. While KCRC remains steadfastly committed to pavement preservation, the level of completed improvements is ultimately determined by available financial resources. OBJECTIVE Provide sound financial management emphasizing efficiency and transparency 2

4 ROUTINE MAINTENANCE Maintaining 1955 road miles and 172 bridges has become an increasing challenge in recent years with the trend of declining revenues and increasing costs. This has required KCRC to prioritize services and operations according to the following guidelines: KCRC prioritizes routine maintenance work from the centerline out Priority is placed on serving the largest number of motorists as quickly as possible, balancing quality with quantity Despite the implementation of several cost-cutting efficiencies and innovative strategies, most routine maintenance activities have been limited to those identified as Priority Level I Critical, rather than projects identified as Level II High or Level III Preventative. Level I. Critical Correct conditions that have failed and/or pose a serious threat to public health and safety Level II. High Address conditions that could fail in the near future and if left unattended may pose a threat to public health and safety Level III. Preventive Proactively repair assets to prolong their service life OBJECTIVES Maintain road and bridge assets in a state of good repair within the constraints of available financial resources in accordance with the following levels of priority: Level I - Critical; Level II - High; and Level III - Preventative Monitor the condition of Kent County s paved and gravel road networks WINTER MAINTENANCE Maintaining safety and mobility during the winter season is one of KCRC s highest priorities. Currently, KCRC strives to complete winter operations on the entire road network within 36 hours following the end of a winter storm. Cost efficiency in winter operations has been significantly increased with advancements in equipment and training, as evidenced by a 30% reduction in salt usage over the last five years. OBJECTIVES Maintain current levels of service during winter operations on the county road network Work cooperatively with the Michigan Department of Transportation to maintain Kent County s trunklines in accordance with the state maintenance contract 3

5 ROAD AND BRIDGE CONDITIONS Primary Road Condition Forecast Percent of network in Good & Fair Condition Beginning in the mid-1990 s, KCRC began to systematically rate the condition of its road network using the Pavement Surface Evaluation and Rating (PASER) system. The trend in PASER ratings shows that KCRC s road network improved in the late 1990 s and peaked in With the downturn in revenues after 2004, KCRC was forced to reduce services and cutback on road improvements, which resulted in the decline of the overall condition of the road network. To return primary road conditions to the level of 2004 (89% Good & Fair), an additional $10 million investment in road improvement is needed. To sustain current conditions (66% Good & Fair), an additional $3 million investment in primary road improvements is required. KCRC is committed to partnering with townships; this is reflected in the condition of the local road network which closely mirrors that of the primary road network. The local road network is supported by KCRC s partnership with townships and the matching program, through which KCRC shares approximately 50% of the cost of local road improvement and maintenance projects with the township. Primary Road Conditions Local Road Conditions OBJECTIVES Preserve primary road conditions and expand the Economic Support Network through the implementation of the Long-Range Plan for Primary Roads and Bridges Preserve paved local roads to achieve a system condition level similar to that of the primary road system 4

6 TRAFFIC AND SAFETY KCRC continually monitors vehicle crashes and trends at both the intersection and network levels to assess overall performance and ensure proper traffic control measures are in place. This information is also used to identify areas for improvement, many of which are funded with federal safety grants. Historically, KCRC has been able to maintain its Traffic and Safety Vehicle Crashes assets - signs, signals, and pavement markings - in good condition and in compliance with state and federal regulations. However, new federal regulations are costly and maintaining consistency with them will be challenging given anticipated budgetary constraints. Currently, data shows that serious injury and fatal crashes have trended downward over the last several years. OBJECTIVE Proactively manage traffic operations to minimize vehicle crashes and maximize mobility BUILDINGS AND EQUIPMENT In order to operate successfully, KCRC must keep its buildings and equipment in good condition through proper maintenance and timely replacement. While KCRC has done an effective job of maintaining the condition of these assets, a comprehensive Capital Improvement Program has been targeted to provide a thorough inventory of assets, an analysis of their condition and a prioritized multi-year plan for maintenance, improvement and replacement. OBJECTIVE Adopt a Capital Improvement Program for KCRC Equipment, Buildings and Grounds addressing energy efficiency and a repair and replacement schedule for major capital items ADVOCACY AND COMMUNICATION KCRC prides itself on transparent and open communication with the community. Methods of outreach have evolved, however, and public demand for timely communication through multiple platforms has grown. In response, KCRC has begun to implement a communications strategy that increases proactive outreach; enhances interactive engagement; expands the methods of communication used; and supports KCRC s commitment to advocate for additional resources and funding. 5

7 OBJECTIVES Work with state and federal legislators to pursue KCRC s equitable share of a statewide increase in transportation funding of at least $1 billion Adopt a Complete Streets policy to guide corridor improvements in cooperation with local units of government in Kent County Maintain active participation with Kent County townships, Grand Valley Metro Council, the Greater Grand Rapids Chamber of Commerce, local service organizations, the Michigan County Road Association, and the National Association of County Engineers Enhance communication activities by improving access to information about KCRC s programs and services; expanding outreach to employees, stakeholders, and the public about KCRC services and needed improvements; and establishing consistent messaging and branding SUMMARY Annual Expenditures & Unmet Needs (millions) Current Expenditures $32.5M Unmet Needs 36.4M Total $68.9M In 2011, Michigan Governor Rick Snyder delivered his special message on infrastructure advocating an increase of $1.2 billion statewide in additional revenue for transportation. Since that time, the Michigan Legislature has yet to reach a consensus on a new funding package. Without the enactment of state or federal legislation providing a significant long-term revenue increase, this Plan reflects the recent allocation of resources to sustain current levels of service in routine and winter maintenance as well as scheduled replacement of equipment. The unfortunate consequence of inadequate funding will be the continued decline in road conditions on both the primary and local road systems. If either the state legislature or Congress enacts a significant long-term transportation funding package, the welcomed challenge will be to decide how to allocate those new resources. 6

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9 Kent County Road Commission Strategic Plan THE PLAN The Kent County Road Commission s Strategic Plan is the product of a cyclical process of building consensus about the organization s mission, values, and vision. The key component of the Plan is a set of objectives to achieve the vision as well as performance measures to gauge progress. The Plan s objectives provide valuable guidance in the development of the annual budget. Because the process is cyclical, modifications to the vision and/or objectives are accommodated as needs and conditions change. The chart below illustrates the process, the major elements of the Plan, and the relationship between them. Mission Statement Defines the organization s primary purpose Why do we exist, what do we do? Vision Describes the future consistent with our Mission Where should we be in 10 years? Strategic Objectives Specific measureable outcomes that need to be implemented to achieve our Vision How will we get there? Performance Measures Gauge progress toward completing our Strategic Objectives Are we making progress? 8

10 BENEFITS OF THE STRATEGIC PLAN Builds consensus among the Board, management team, and employees to establish a clear direction for the organization. Contains the rationale for funding priorities during the budget development process. Delivers concise information about KCRC s mission, values, vision, strategic objectives, and performance measures to employees, townships, County Commission, legislators, stakeholders and public. Mission To serve Kent County with a safe, reliable, and efficient transportation network Values Safety High-Quality Service Preservation of Assets Collaboration and Coordination Sound Financial Management Vision To Be the Premier County Transportation Network in Michigan KCRC will achieve its vision through the implementation of the following strategic objectives and performance measures which assume existing levels of funding from state and federal sources. 9

11 STRATEGIC OBJECTIVES AND PERFORMANCE MEASURES ROAD AND BRIDGE CONDITIONS 1. Preserve primary road conditions and expand the Economic Support Network (ESN) through the implementation of the Long-Range Plan for Primary Roads and Bridges. a. Maximize the number of lane mile improvements per year by emphasizing pavement preservation treatments. b. Maintain zero percent Structurally Deficient bridges as defined by the Federal Highway Administration. c. Monitor the performance of completed road and bridge improvements. 2. Preserve paved local roads to achieve a system condition level similar to that of the primary road system. a. Match all available township investment. b. Sustain a minimum of $2.5 million in annual township contributions. ROUTINE MAINTENANCE 3. Maintain road and bridge assets in a state of good repair within the constraints of available financial resources in accordance with the following levels of priority: Level I. Critical Correct conditions that have failed and/or pose a serious threat to public health and safety. Level II. High Address conditions that could fail in the near future and if left unattended may pose a threat to public health and safety. Level III. Preventive Proactively repair assets to prolong their service life. 4. Monitor the condition of Kent County s paved and gravel road networks. a. Develop a gravel road rating system and review results with township officials. 10

12 WINTER MAINTENANCE 5. Maintain current levels of service during winter operations on the county road network. a. Serve the largest number of motorists as quickly as possible during winter storms, balance quality with quantity. b. Complete winter maintenance operations on the county road network within 36 hours of the conclusion of a storm. 6. Work cooperatively with the Michigan Department of Transportation to maintain Kent County s trunklines in accordance with the state maintenance contract. TRAFFIC & SAFETY 7. Proactively manage traffic operations to minimize vehicle crashes and maximize mobility. a. Monitor the location and number of crashes and calculate system-wide crash rates annually. b. Compare annual accident rates on Kent County roads to other jurisdictions. c. Develop a comprehensive Corridor Safety Audit process; document results and improvements. d. Maintain signs, signals, and pavement markings consistent with state and federal regulations to the maximum extent possible with available resources. i. Evaluate staffing levels to ensure timely response to sign repairs, replacements, and upgrades ii. Upgrade 20% of signs per year to federal standards. iii. Upgrade 20% of traffic signals per year requiring LED lights, countdown pedestrian signals, and/or box span configurations. iv. Monitor changes in Federal Highway Administration (FHWA) pavement marking retro-reflectivity standards and develop a program to meet any new requirements. 11

13 BUILDINGS AND EQUIPMENT 8. Adopt a Capital Improvement Program for KCRC Equipment, Buildings and Grounds addressing building space requirements and energy efficiency as well as the repair and replacement schedule for major capital items. ADVOCACY AND COMMUNICATION 9. Work with state and federal legislators to pursue KCRC s equitable share of a statewide increase in transportation funding of at least $1 billion. 10. Adopt a Complete Streets policy to guide corridor improvements in cooperation with local units of government in Kent County. 11. Maintain active participation with Kent County townships, Grand Valley Metro Council, the Greater Grand Rapids Area Chamber of Commerce, local service organizations, the Michigan County Road Association, and the National Association of County Engineers. 12. Enhance communication activities by improving access to information about KCRC s programs and services; expanding outreach to employees, stakeholders, and the public about KCRC services and needed improvements; and establishing consistent messaging and branding. 13. Attend Township Board meetings as requested to discuss current issues and assistance. ADMINISTRATION AND FINANCE 14. Evaluate KCRC s current safety procedures and training to create and sustain a safe and secure work environment for all employees. 15. Provide sound financial management emphasizing efficiency and transparency. a. Certify compliance with the Michigan Legislature s Best Practice initiative (MCL j). b. Fully fund KCRC s liabilities for other post-employment benefits (OPEB) and old pension program. c. Maintain KCRC fringe benefit rate as the lowest of the urban county road commissions. d. Maintain a fund balance reasonably sufficient to provide an essential level of service during unusually severe circumstances. 12

14 KENT COUNTY ROAD NETWORK The Kent County Road Commission (KCRC) is responsible for safe and efficient operation of Michigan s second largest county road network. This network consists of 1955 miles of roads and 172 bridges within the County of Kent, exclusive of those roadways and bridges that fall under the jurisdiction of the State of Michigan, cities and villages. In addition, KCRC provides routine maintenance services, including snow and ice removal, for 436 miles of state trunklines under a multi-year contract with the Michigan Department of Transportation (MDOT). Table 1.0 Kent County Primary and Local Road Miles Primary Roads (miles) Local Roads (miles) Urban Rural Urban Rural Table 1.0 shows that the county road network is categorized as either primary or local. The 656 miles of primary roads, many of which are multi-lane corridors, are generally the longer distance higher volume roadways of the county. The 1299 miles of local roads are typically the shorter distance two-lane collector roads and residential streets within townships. To support this large network of roads, bridges, and state trunklines, KCRC is organized and staffed to perform a wide range of functions and services. These include: engineering, construction, routine maintenance, pavement preservation, winter maintenance, traffic engineering, finance, building and equipment maintenance. FINANCE - REVENUES Michigan Transportation Fund The largest source of revenue for KCRC is the Michigan Transportation Fund (MTF). This statewide fund is supported by taxes on the sale of gasoline and diesel fuel as well as the fees collected by the Secretary of State for vehicle registrations. Chart 1 Revenue Categories FY2012 $49.1 million Chart 1 shows KCRC s major revenue categories for FY2012. The amounts in each category have been relatively consistent over the last 5 years as shown in Chart 2 (next page) which compares FY2012 to the previous seven fiscal years. 13

15 Chart 2 KCRC Revenue Trends FY2004 FY2012 (millions) MTF Revenues peaked in FY2004 and declined through FY2009. After that period, revenues began to rebound at a modest rate of 1.25% annually. Despite this trend, MTF revenues have not recovered to the FY2004 level; currently they are at the same level they were in FY2002. Federal and State Grants The next largest source of revenue for KCRC is Federal and State Grants for road and bridge improvements. Chart 2 shows fluctuations in the level of grant funding per year which is due to the competitive process among the transportation agencies in Kent and Ottawa Counties. This process is administered by the Grand Valley Metropolitan Council (GVMC). From year to year, there have been substantial changes in the number, scope, and cost of projects funded by grants. Over the last several years, KCRC has secured approximately 35% of available grant funds to this area. Contributions from Local Government include funds that the townships of Kent County contribute toward construction and other road improvements. Over the last three years, these contributions have trended upward as townships are investing more in road improvements and pavement preservation treatments to maintain roads in good condition. State Trunkline Maintenance Contract While revenue from the State Trunkline Contract has remained relatively constant over the last five years, the manner in which those funds are used has changed considerably. Currently, more of those revenues are being used to support winter maintenance operations rather than routine summer maintenance activities because of the higher cost of items such as fuel, salt, and equipment. Other Revenue represents the smallest source of funding to KCRC. This category consists of a variety of revenue-generating activities including: sale of excess equipment, material sales such as salt to other agencies, interest income, and work that KCRC performs for other agencies. 14

16 FINANCE EXPENDITURES Routine Maintenance Chart 3 shows that currently KCRC s largest grouping of expenditures is Routine Maintenance. This includes basic activities to maintain roads in good repair such as: pot-hole patching, roadside mowing, sign and signal maintenance, tree trimming/cutting and ditching. Chart 3 Expenditure Categories FY2012 $53.3 million Construction and Preservation The next largest expenditure class is Construction and Preservation. This consists of a wide range of projects to improve the quality of KCRC s road and bridge network including: reconstruction, resurfacing, and pavement preservation (e.g., micro-surfacing, thin overlays, and chip-sealing). State Trunkline Maintenance, Winter Maintenance (County) and Other The third largest category expenditure is maintenance of the State Trunklines. Chart 4 shows that those expenditures have remained fairly consistent over the last few years. Much more yearly variation is shown in the areas of Winter Maintenance and Other Expenditures. The level of Winter Maintenance expenditure is affected by the severity of the winter season while Other Expenditures are determined by the level of demand by other agencies for KCRC services. Expenditure Trends Chart 4 shows two significant trends since FY2004: a steady increase in expenditures for Routine Maintenance and a corresponding decrease in Construction & Preservation. Chart 4 Expenditure Trends FY2004 FY2012 (millions) 15

17 Increasing expenditures for Routine Maintenance can be primarily attributed to significant increases in the cost of fuel, materials, and equipment since FY2004. These cost increases are illustrated in Chart 5. To make up for the lack of an increase in revenue, KCRC has had to reduce expenditures in several areas of the organization, especially road improvements. Chart 5 Cost Increases FY2004 FY2012 FUND BALANCE Defined Fund Balance is defined as the difference between current assets and current liabilities. Infrastructure, fixed assets and long-term debt are excluded. The KCRC accounting records show individual fund balance amounts for Primary, Local, and County Road funds. However, in most reports Fund Balance is shown as the total of all three as shown in Chart 6.0 to the right. Chart 6.0 FY2013 Fund Balance Non-spendable items - Inventories and pre-paid items Restricted Primary and Local Fund Balances are restricted for those purposes Assigned A plan to utilize a portion of the Fund Balance Unassigned The residual Fund Balance not otherwise identified Target The Michigan Transportation Fund (MTF) is KCRC s largest source of revenue. The budgeted fund balance is targeted to be approximately one-half of the annual MTF revenue. At this level, there is reasonable confidence in the ability to provide essential levels of service during unusually severe circumstances. 16

18 ROUTINE AND WINTER MAINTENANCE Maintenance Priorities Transportation law for Michigan emphasizes proper maintenance of roads and bridges, mandating that these assets be kept in reasonably safe and efficient condition. Courts have interpreted this to limit the liability of transportation agencies to the traveled portion of the roadway designed for vehicular use which does not include features such as sidewalks and crosswalks. Using this mandate as a basis for prioritizing service delivery and expenditures, KCRC has operated with the following guidelines for Routine and Winter Maintenance. KCRC prioritizes routine maintenance work from the centerline out. Priority is placed on serving the largest number of motorists as quickly as possible, balancing quality with quantity. Winter Maintenance Maintaining safety and mobility during the winter season is one of KCRC s highest priorities. Because timing and level of effort are such critical factors in the removal of snow and ice across the network, especially during severe storms, Winter Maintenance has a significant impact on determining the number of KCRC employees as well as the type of equipment and location of its facilities. Currently, KCRC strives to complete winter operations on the entire road network within a 36 hour timeframe following the end of a winter storm. This level of service has been downgraded in recent years from 24 hours due to staffing reductions as a result of one of many KCRC s cost control measures. Chart 7 shows that KCRC full-time staffing levels have steadily decreased over the last 38 years despite the fact that the road system has expanded significantly. Chart 7 Staffing Levels and Centerline Miles Number of employees County Centerline Miles Note: The County Parks Department was part of KCRC until

19 To maintain efficient winter operations on state and county roads, KCRC deploys staff and equipment across a total of 114 snowplow routes. State trunklines are maintained by both day and night crews while county routes are typically maintained day crews. KCRC has determined that in order to complete plowing operations across the entire state and county network within a 36 hour period that 109 full-time driver/operator positions, supplemented by seasonal and part-time workers, are required. During severe winter storms other KCRC personnel (both supervisory and non-supervisory) who have maintained their commercial driver s license (CDL) certifications are called upon to assist. Currently, KCRC budgets $4.1 million annually for primary and local road winter maintenance operations. To enhance the level of service of network coverage within a 24 hour period following a winter storm would require approximately $1.0 million more annually. Material Application Cost efficiency of winter maintenance operations has been increased significantly with advancements in equipment and training. Granular salt is pre-wetted with a liquid chloride solution to reduce bouncing from the road surface and to lower the melting point. Trucks are also equipped with groundspeed computers to more efficiently control the rate of material application. As a result, KCRC has reduced salt usage by 30% over the last five years. Collaboration and Coordination KCRC has led the way in collaboration and coordination efforts with other transportation agencies in and around Kent County to reduce costs and increase efficiency. These efforts include leading the area s roadway maintenance committee with the area s central cities to coordinate construction projects, winter maintenance activities, and emergency response. In addition, KCRC has established mutual-aid agreements with surrounding road commissions to assist each other during storms. Purchasing materials and services is another area where KCRC has taken a leadership role. This allows area transportation agencies, local units of government, and other institutions to take advantage of lower unit pricing through higher volume buying. 18

20 Chart 8 below shows estimated budget allocation figures for major routine maintenance activities, exclusive of winter maintenance and pavement preservation treatments. This provides a relative perspective on the resources required to address these activities according to three levels of priority: Level I. Critical Correct conditions that have failed and/or pose a serious threat to public health and safety. Level II. High Address conditions that could fail in the near future and if left unattended may pose a threat to public health and safety. Level III. Preventive Proactively repair assets to prolong their service life. The bolded figures reflect current budgeted amounts. The figures in red text reflect the additional resources needed to accomplish those tasks. Chart 8 Major Routine Maintenance Activities Annual Budget Allocation Estimates* Major Activity Surface Maintenance Structure Maintenance Shoulder Maintenance Drainage & Backslopes Trees & Shrubs Other Total Budgeted Total Additional Need Activities Repair potholes, seal cracks, replace deteriorated pavement sections. Resurface bridge decks, repair riprap, footings and abutments. Add and re-grade gravel, apply dust layer, pave gravel shoulders. Clean ditches, remove berms, repair underground structures. Trim/remove dead and dying trees along right-of-way. Control weeds and grasses, repair guardrail, clean roadsides. Priority Level I. II. III. $2,600,000 $600,000 $1,000,000 $3,000,000 $200,000 $400,000 $100,000 $1,400,000 $1,300,000 $200,000 $200,000 $1,200,000 $1,000,000 $2,000,000 $1,900,000 $2,000,000 $1,800,000 $200,000 $1,000,000 $2,000,000 $7,700,000 $900,000 $5,100,000 $0 $8,300,000 Total $3,200,000 $4,000,000 $200,000 $400,000 $500,000 $1,200,000 $1,400,000 $3,000,000 $1,300,000 $3,900,000 $2,000,000 $3,000,000 $8,600,000 $15,400,000 Total Need *Figures do not include fringe or overhead costs $24,000,000 19

21 ENGINEERING - PRIMARY ROAD CONDITIONS The entire primary road network is paved and the overall condition of that system is illustrated in Chart 9. It shows that one-third of the network is rated Poor, over one-half rated Fair, and the remainder is rated Good. These rating categories are based on the PASER methodology which is an objective engineering based rating scale of a paved road s surface condition. PASER is supported by Michigan s Transportation Asset Management Council (TAMC) for statewide application. Chart 9 Primary Road Conditions 2012 Pavement Preservation PASER ratings describe where the paved surface is positioned in its overall lifecycle. Its primary purpose is to identify the type and timing of road improvements to sustain the roadway in a state of good repair. The practice of applying appropriate treatments at the right time to sustain a road in a state of good repair (PASER categories Good and Fair) is termed pavement preservation. Routine Maintenance Preservation Resurface/Reconstruct PASER 10 8 = Good PASER 7 5 = Fair PASER 4 1 = Poor Condition Trends Chart 10 on the following page shows the historical and forecasted trend in the condition of primary roads. The trend line is the combination of roads rated Good and Fair. The chart shows that conditions improved in the late 1990s and peaked in This trend can be attributed to two primary factors. First, there was a significant increase in MTF revenue as a result of enactment of a statewide fuel tax increase of 4 cents, which brought Michigan s gasoline tax to 19 cents per gallon. Second, KCRC established a pavement management program and commitment to keeping existing roads in a state of good repair. After 2004, MTF revenues began a decline caused by a downturn in the economy and rising fuel prices. With fewer financial resources, KCRC was forced to reduce services and cutback investments in road improvements. The result was a decline in the condition of the road network. Presently, KCRC invests about half as much in primary road improvements on the primary road system compared to 10 years ago. 20

22 Chart 10 Primary Road Condition Forecast Percent of network in Good & Fair Condition Funding Need In 2011, Governor Snyder delivered his special message on infrastructure advocating an increase of $1.2 billion statewide in additional revenue for transportation. Since that time the Michigan Legislature has debated the Governor s plan as well as various other revenue generating options but has yet to reach a consensus on a new funding package. If the Governor s plan is approved, KCRC would receive approximately $20 - $25 million in additional resources based upon the current Act 51 distribution formula. To return primary road conditions to the level of 2004, total investment in road improvements should be $20.5 million per year, which is $10 million over the current investment level of $10.5 million per year. To sustain conditions at the level of 65% Good and Fair, KCRC needs to invest an additional $3.0 million in annual primary road improvements. Subsequently, to achieve the level of 75% Good and Fair, $6.5 million of additional investment over current primary road spending is necessary. Resurfacing, Reconstruction, and Widening With MTF levels being insufficient to fully fund KCRC s total road improvement needs, state and federal grants have become a more significant source of revenue for road improvements. Currently, the majority of KCRC s resurfacing, reconstruction and widening projects are funded with federal aid grants through the Grand Valley Metro Council (GVMC). However, the allocation of these grant funds to this area is limited and is not at a high enough level to address all of KCRC needs. In addition, other transportation agencies in the area (cities within Kent County and neighboring Ottawa County Road Commission) are eligible to receive these grants as well. 21

23 Preservation Treatments With the majority of reconstruction, resurfacing, and widening projects being funded with available federal and state grants, KCRC utilizes MTF revenues to fund pavement preservation treatments. MTF revenues are also the primary funding source for most of KCRC s other services including routine maintenance. The result is that the miles of pavement preservation completed each year with MTF revenues have been heavily influenced by expenditures for winter maintenance (i.e., fewer improvements following extreme winters, more improvements following mild winters). Economic Support KCRC has identified a network of county primary road corridors that provide essential access and routing for economic activity in Kent County. This sub-network of the primary road system is referred to as the Economic Support Network (ESN). This network consists of over 300 miles of county primary roads. A significant portion of this network (132 miles) is subject to seasonal weight restrictions. The business community continues to request expansion of KCRC s all-season network to eliminate these weight restrictions. Complete Streets Experience in Kent County indicates that public demand for alternative modes of travel (e.g., biking, walking, and transit) and enhanced aesthetics along major corridors is increasing. Federal and state regulations now require consideration of alternative modes as well as the context of the adjacent environment during the planning and design phases of major road improvements. In 2012, the Michigan Legislature adopted a Complete Streets policy and recommended that local transportation agencies do the same. While KCRC has established a good track record of working cooperatively with local townships, citizens, and businesses to identify corridors that warrant consideration of alternative modes of travel and aesthetic improvements, it has not formally adopted a Complete Streets policy. 22

24 LOCAL ROAD CONDITIONS KCRC shares financial responsibility with Kent County s townships for major and minor construction work on the local road system. Chart 11 shows the overall condition of the local road system according to PASER rating categories. It is noteworthy that the percentages of Good, Fair, and Poor surface conditions are very similar to those of the primary road system. This reflects KCRC s long-term commitment to partnering with township officials to improve and maintain the quality of the county s local roads. Matching Program A key element of this commitment is financial support. KCRC transfers 30% of its MTF revenue to local road improvement and maintenance, the maximum amount allowed under Act 51. A portion of those dollars are used to fund the township matching program for major and minor road construction work as listed below. Chart 11 Local Road Conditions 2012 Construction 45% KCRC 55% Twp. Minor Construction 50% KCRC 50% Twp. Townships in Kent County have demonstrated their support for the concept of pavement preservation and have used the matching program to invest in treatments to help maintain roads in good condition. Over the last five years, county wide township participation has averaged $2.5 million annually. This contribution coupled with KCRC match brings total investment in local road improvements to approximately $6.5 million annually. Funding Need Similar to primary road conditions, local road conditions are projected to decrease with no statewide revenue increase. To sustain conditions at the level of 65% Good and Fair, current estimates indicate that $4.0 million in additional investment is required. To achieve higher levels of 75% and 85% Good and Fair, additional investment of $6.5 million and $9.0 million, repectively, is needed. Additional analysis of local road condition trends is required to confirm these estimates. 23

25 TRAFFIC & SAFETY KCRC continually monitors vehicle crashes and trends at both the intersection and network levels. At the intersection level, this information is essential to insure that proper traffic control measures are installed when warranted. This information is also used to identify areas for improvement, many of which are funded with federal safety grants. At the network level, trends are identified to monitor overall performance. Currently, the data shows that serious injury and fatal crashes have trended downward the last several years as shown on Chart 12. Chart 12 Vehicle Crashes Signs, Signals, Pavement Markings A substantial portion of KCRC s Traffic and Safety budget is dedicated to the maintenance of signs, signals, and pavement markings. Historically, KCRC has been able to maintain these assets in good condition and in compliance with state and federal regulations. Maintaining consistency with new federal regulations will be costly and, therefore, challenging given anticipated budgetary constraints. The City of Grand Rapids maintains individual traffic signals as well as network wide coordination for KCRC and many other transportation agencies in Kent County. This relationship has proven to be financially beneficial. Liability and Loss Control KCRC regularly investigates serious traffic crashes. One of the primary objectives of these investigations is to identify road conditions and traffic controls present at the time of the crash as well as any needed improvements. The results of these accident investigations also assist in any potential litigation. Funding Need KCRC currently budgets $400 $500 thousand annually for safety-related road improvements. Typically, these are intersection improvements to add turn lanes and/or modernize signal equipment. These funds are also available to provide required local match for federal grants. KCRC anticipates maintaining this level of investment in the foreseeable future. 24

26 BUILDINGS AND EQUIPMENT KCRC owns and maintains several buildings as well as a large variety of equipment needed to carry out its primary responsibility of maintaining a safe and efficient county road system. The insured replacement value of these assets is currently $57.4 million as shown in Chart 13. This does not include the value of road and bridge infrastructure and property. According to governmental reporting standards (GASB), KCRC has invested over $1.5 billion in road and bridge infrastructure since Chart 13 Replacement Value of Buildings & Equipment (millions) Capital Improvement Program Protecting the investment in buildings and equipment through proper maintenance and timely replacement is critical for KCRC to fulfill its mission. This requires a thorough inventory of those assets, analysis of their condition, and a prioritized multi-year plan for maintenance, improvement, and replacement in the form of a comprehensive Capital Improvement Program. While KCRC has done an effective job of maintaining the condition of its building and equipment, it needs a Capital Improvement Plan. Maintenance Complexes KCRC s operations are based at four facilities strategically located around Kent County to efficiently serve the area s 615,000 residents dispersed across 872 square miles as shown in the map to the right. Complex Year Built (Expansion) Central 1924 (1956, 1964, 1987) North 1980 South 1990 Southwest 2004 The Central complex contains the KCRC s administrative offices as well as a large maintenance garage for equipment storage and repair. The North, South, and Southwest complexes are primarily maintenance garages. With the exception of the Southwest complex built in 2004, the Road Commission s complex buildings exceed 20 years of age. 25

27 In addition to the four complexes, KCRC maintains an equipment storage building in Ada Township and 17 gravel pits located around the county. In total, KCRC owns over 700 acres of property. Chemical Storage KCRC maintains a chemical storage facility for salt and other de-icing materials at each of the four complexes. Total salt storage capacity of these four facilities is 26,000 tons. This represents approximately 70% of KCRC s average annual salt usage of 36,000 tons, which includes maintenance of the state trunkline system. Equipment KCRC s maintenance operation is anchored by a fleet of 97 heavy duty trucks. These vehicles provide year-round utility for both summer and winter operations. 81 Single-axle Trucks 9 Tri-axle Trucks 7 Flow-boy Trucks 97 Total Truck Fleet For several years, KCRC has budgeted 6 heavy duty trucks for replacement per year to maintain a fleet turnover rate of years or an average age of 6.5 years. In 2009 and 2010, however, replacement trucks were not purchased due to budget reductions as shown in Chart 14, below. The result is that the average age of the fleet is currently 7.7 years. Chart 14 Single Axle Truck Fleet 40K GVW Age Distribution 26

28 Listed below are the other significant equipment items owned, leased, or rented by KCRC. Maintaining this equipment in proper working condition is essential to providing timely and efficient service to the public and safe operating conditions for employees. EQUIPMENT OWN LEASE RENT CARS 13 VANS/SUBURBANS 7 PICK-UP TRUCKS Three Qrt. Ton 47 One Ton 22 LOADERS One Yard 5 1 Three Plus Yard 4 1 LOADER BACKHOE 1 EXCAVATOR 1 1 MOTOR GRADERS 3 3 GRADALLS 3 DOZERS 3 COMPRESSORS 3 1 SCRAPER 1 ROLLERS 5 1 ATTENUATORS 2 HI-RANGERS 2 2 TORO MOWERS 2 PAVER 1 CHIPPERS 4 3 MESSAGE BOARDS 4 Funding Need Preliminary assessment of buildings, grounds, and equipment needs over the next five years indicates that, to sustain a schedule of timely repair and replacement, KCRC needs to budget approximately $600 thousand per year for buildings and grounds and $2.8 million per year for equipment. The figure for equipment does not account for the significant backlog that has accumulated over recent years due to postponed replacement. Currently, that backlog is estimated to be $5.5 million. A Capital Improvement Program needs to be developed to substantiate these costs according to a prioritized repair and replacement schedule. 27

29 ADVOCACY AND COMMUNICATION Communication for KCRC is wide-ranging in purpose and varied in technique. In all situations, KCRC strives for excellent customer service by being accessible, personable, timely, respectful, and informative. For instance, when KCRC receives a phone call, the caller is not greeted by a recording but, rather, a person. That person either responds directly or the caller is transferred to another staff person with the appropriate expertise. Another example occurs prior to completion of final construction plans for major road improvement projects. KCRC hosts information open houses (in addition to a public hearing when required) to give affected residents and businesses the opportunity to ask questions and, in some cases, work with staff to lessen a project s impact. KCRC s communication activities have historically been spread among existing employees with other primary job responsibilities. This has proven to provide both advantages and disadvantages. Advantages include timely access to the appropriate person(s) and the accuracy of the information that is disseminated. This is particularly evident in regard to the status of road improvement projects or when working with the media during major storm events. Disadvantages include the fact that communication duties are in addition to other work responsibilities. Described below is a partial list of functions that highlight KCRC s communication activities. Township Interaction As noted in the earlier section of local road conditions, townships participate financially with KCRC on various types of road improvement projects. In addition, they receive and disseminate a great deal of information with their constituents on transportation issues. Communication with townships is, therefore, among KCRC s highest priorities. Staff meets with township officials regularly to review road condition issues, discuss cost sharing arrangements, analyze potential impacts of land use developments, and examine proposed nonmotorized trail projects. In addition, staff provides township officials with frequent updates on road maintenance issues, seasonal weight restrictions, and road/lane closures. Meetings with townships officials occur throughout the year in various forms ranging from road tours in the spring to the annual November dinner. In addition, members of the KCRC Management Team meet frequently with township officials at chapter meetings of the Michigan Township Association. 28

30 Newsletter For many years, KCRC has published a monthly newsletter containing periodic division updates, information of general interest to employees, and specific announcements pertaining to employee birthdays, weddings, and retirements. The responsibility for newsletter design and content has been assigned to an in house committee of employees. Each division is periodically assigned the responsibility of contributing new articles. The newsletter has been distributed to all employees, retirees and Board members as well as to each township. Printing and postage costs approximately $10,000 per year. Website Finance Division staff designed and now updates the KCRC website with much of the informational content provided by Division staff. In additional to general information about the activities and policies of the organization, the website allows visitors to comments and questions. These messages are reviewed and many times responded to by the Managing Director or division directors. Performance Dashboard KCRC was one of the first road commissions in Michigan to produce a performance dashboard consistent with the objective of being accessible and transparent to the public. In a single page format, this document quantifies various metrics and trends related to the major functions of the organization which include: traffic safety, road and bridge conditions, revenues and expenditures, routine maintenance, and staffing. Social Media KCRC has recently established a Facebook and Twitter account. Traditional Media Most of KCRC s interaction with traditional media (newspaper, local television and radio) is reactive in the sense that initial contact is generated by the media for coverage of a story. When the media does contact KCRC on an issue, responses are typically handled by the Managing Director or the appropriate division director. KCRC does distribute a list of daily road and lane closures to the media; however, press releases are infrequently generated. Project Open Houses and Public Hearings For major reconstruction/widening improvement projects, open houses are held in the corridor several months ahead of the start of construction. The public is offered the opportunity to review draft construction plans and meet with staff to ask questions and make comments. Public hearings are also held by the Board prior to construction. 29

31 SUMMARY Current expenditure levels and unmet need estimates are shown in Chart 15 according to the four major functional areas of the organization. These figures include direct expenses for products and services while distributive expenses for fringe benefits and administrative overhead are not included. Costs for the state maintenance contract are also not included. Chart 15 Annual Expenditures and Unmet Needs (millions) Current Expenditures $32.5M Unmet Needs 36.4M Total $66.9M Clearly, KCRC s largest areas of expenditure and need are in Routine Maintenance and road improvement activities (Construction and Preservation). The backlog of need in these two areas has grown substantially since 2004 with the decline of MTF revenues and the escalated cost of fuel and materials. Conversely, expenditure and need are more closely aligned in the areas of Capital Outlay and Winter Maintenance. This reflects the reality of our business when, during the winter season, snow and ice must be cleared from the road network which requires reliable equipment and support facilities. The primary challenge ahead is deciding the allocation of resources among these four major functions. Without the enactment of state or federal legislation providing a significant longterm revenue increase, this Plan reflects the recent history in the allocation of resources to sustain current levels of service in routine and winter maintenance as well as scheduled 30

32 replacement of equipment. The unfortunate consequence of inadequate funding will be the continued decline in road conditions on both the primary and local road systems. If either the state legislature or Congress enacts a significant long-term transportation funding package, the welcomed challenge will be to decide how to allocate those new resources. 31