HomeMy WebLinkAboutResolutions - 2010.09.23 - 10330MISCELLANEOUS RESOLUTION #10220
BY: Commissioner Thomas F. Middleton, District #4
IN RE: WATER RESOURCES COMMISSIONER - REQUEST FOR $125,000 LOAN FROM
THE LONG TERM REVOLVING FUND FOR ADMINISTRATION, DESIGN AND
CONSTRUCTION OF THE LOWER PETTIBONE LAKE SANITARY DRAIN
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
WHEREAS, Lower Pettibone Lake is an inland lake located in the Charter Township of
Highland, County of Oakland, State of Michigan; and
WHEREAS, residents living on Lower Pettibone Lake are currently served by individual
septic systems that are in various stages of disrepair posing potential health and environmental
concerns affecting the water quality of Lower Pettibone Lake; and,
WHEREAS, residents living on Lower Pettibone Lake have filed and application and petition with
the Oakland County Water Resources Commissioner to proceed with the establishment. design,
constructron of a new drain designated as the Lower Pettibone Lake Sanitary Drain that would
provide collection and disposal of domestic sewage from properties within the proposed Lower
Pettibone Lake Sanitary Drain Drainage District ("Drainage District"); and
WHEREAS. the Water Resources Commissioner has prepared an estimated cost that
includes the administration, legal proceedings, design and construction of the sewage collection
system ("Project") in the amount of $750,000 attached hereto as Exhibit A; and
WHEREAS the proposed Drainage District intends to issue a series of Bonds pursuant to
Section 275 through Section 280 of the Drain Code (MCL 280275 through 280.280) to finance
costs of the Project in anticipation of the collection of special assessments against properties
within the drainage district in accordance with the applicable provisions of the Drain Code of
1956, as amended (MCL 280.1 at seq.), and pledge the full faith and credit of the Drainage
District for the prompt payment of the principal thereof and the interest thereon; and
WHEREAS, pursuant to Miscellaneous Resolution #02019, adopted February 21, 2002,
established a Long Term Revolving Fund to assist in the financing of water and sewer projects;
and
WHEREAS, Miscellaneous Resolution #02019 authorized loans up to $150,000; and,
WHEREAS, in order to pay for the initial costs associated with administration and design
of the Project, the proposed drainage district requests a loan from the Long Term Revolving Fund
in the amount of $125,000 with the understanding that the proposed drainage district agrees to
pay back to the County upon the issuance of bonds and or upon collection of assessments
against properties within the proposed Drainage District; and,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF
THE COUNTY OF OAKLAND, MICHIGAN, as follows:
1. The County Board of Commissioners hereby authorizes loan not to exceed $125,000
from the County's Long Term Revolving Fund to the proposed Lower Pettibone Lake
Sanitary Drain Drainage District with an annual interest rate to be determined in
accordance with County policy at the time the funds are disbursed for the costs
associated with the administration, legal proceedings and construction of the Project.
2. The loan shall be applied to interim costs for administration and design of the Project.
3. The loan with applicable interest shall be paid in full upon the issuance of bonds for
the Project. In the event, bonds are not issued, then the amount of loan shall be
assessed in five (5) annual installments against the properties within the Drainage
District beginning with 2011 tax year.
4. The proceeds of the loan shall not be disbursed to the drainage district until and only
after all proceedings for establishing the drain and special assessment district as
provided in the Drain Code of 1956, as amended (MCL 280,1 et seq.) have been
completed and the time for contesting the validity of said proceedings has passed.
Disbursal of said funds will occur when the Water Resources Commissioner provides
notice to County Treasurer and County Fiscal Services that all necessary drainage
proceedings have been completed.
Chairperson. I move the adoption of the foregoing resolution.
Thomas F. Middleton
Commissioner, District #4
Resolution #10220 September 1, 2010
The Chairperson referred the resolution to the Finance Committee, There were no objections.
FISCAL NOTE (MR. #10220) September 23, 2010
BY: FINANCE COMMITTEE ; TOM MIDDLETON, CHAIRPERSON
IN RE: WATER RESOURCES COMMISSIONER— REQUEST FOR $125,000 LOAN FROM THE
LONG TERM REVOLVING FUND FOR ADMINISTRATION, DESIGN AND CONSTRUCTION
OF THE LOWER PETTIBONE LAKE SANITARY DRAIN
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed the above
referenced resolution and finds:
1. The resolution authorizes a loan from the Long-Term Revolving Fund for an
amount not to exceed $125,000 for the Lower Pettibone Lake Sanitary Drain; a
recently petitioned Drainage District.
2. Miscellaneous Resolution #02019 authorized that monies be made available for
loans for water and sewer projects up to $150,000 for each project requested.
3. The total project is currently estimated at $750,000 but a loan of $125,000 is
being requested to cover interim costs for administration and design of the
Project.
4. The loan will be paid in full upon the issuance of bonds for the project. In the
event that bonds are not issued, the loan will be paid back from a five (5) year
assessment against the properties within the Drainage District beginning with the
2011 tax year.
5. Miscellaneous Resolution #89276 states that an interest rate no less than the
prevailing six-month Treasury Bill rate should be charged. The six-month
Treasury Bill rate is currently lower than the average interest rate from the
Treasurer's pooled investments and therefore the rate to be charged will be the
last published Treasurer's pooled investment average monthly rate as of August
2010 of 1,443%.
6. Funding is currently available in the Long-Term Revolving Fund to issue a loan
for an amount not to exceed $125,000 for Lower Pettibone Lake Sanitary Drain
project.
7. Management and Budget will not disburse funds until all proceedings for
establishing the drain and special assessment district as provided in the Drain
Code of 1956, as amended (MCL 280.1 et seq), have been completed and the
time for contesting the validity of said proceedings has passed.
8. No budget amendment is required.
FINANCE COMMITTEE
FINANCE COMMITTEE
Motion carried unanimously on a roll call vote with Coulter absent.
Resolution #10220 September 1, 2010
Moved by Middleton supported by Long the resolution (with fiscal note attached) be adopted.
AYES: Cabello, Coleman, Coulter, Douglas, Gershenson, Gingell, Gosselin, Greimel, Hatchett,
Jackson, Jacobsen, Long, McGillivray, Middleton, Nash. Potts, Runestad, Schwartz, Scott, Taub,
Woodward, Zack, Burns. (23)
NAYS: None. (0)
ABSTAIN: Bullard. (1)
A sufficient majority having voted in favor, the resolution (with fiscal note attached) was adopted.
I HEREBY APPROVE 1TIEJOREGOING REaUTION
/ 7/7 r/1 p
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Ruth Johnson, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true
and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on
September 23, 2010, with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at
Pontiac, Michigan this 23 rd day of September, 2010.
eat
Ruth Johnson, County Clerk