HomeMy WebLinkAboutResolutions - 1979.12.06 - 12265Miscellaneous Resolution November )9, 1979
BY: PLANNING AND BUILDING COMMITTEE - Richard R. Wilcox, Chairperson
IN RE: SOLID )::AST - RESOURCE RECO= r!=:--;,osAL SYSTEM - PAINT,
JACKSON, 451 CURTIS, INC., ACRITMTNT
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS, the Oakland County Board of Commissioners by Miscellaneous
Resolution /8544, adopted duly 6, 1975, authorized the County Executive to
receive consulting engineering and financial advisory proposals for a. Phase.
I financial feasibility study and to have the proposals evaluated by an
Evaluation Committee. comprised of Mr. James B. Menahan, P.E., Chairman of
the Solid Waste Advisory Group, Mr. Harold A. Meininger, appointed bv the
Chairperson of the Board of Commissioners, and Mr. hilliam M, Spinelli,
appointed by the County Executive; and
WHEREAS, invitations to submit Statement Qualifications were sent
to twelve (12) firms who offer financial. man-,ent or financial advisory
service or 'lay 25, 1979; and
191-1 La, Statement of Qualifications were received from eight (8) firms
hcfc.:1 the June 18, 1979, deadline; and
WHEREAS, the Evaluation Committee reviewed the 1 n (8) Stai..ent of
0e:11rications proposals of which the top four (4) cand:m!aL we -ctally
interviewed; and
WHEREAS, the Evaluation Committee selected the firm of Paine, Wehhor,
Jackson, and Curtis, Inc. of New Yorf, 7 York for financial advisory services;
and
WHEREAS, the County Executive Staff has negotiated an agreement for
financial advisory services at a reasonable cost; ane
, the program anticipates four (4) distinct engineoriag and Finan-
cial advisory phases of which $65,000 is for Phase IA financial advisory services
as outlined in the attached agreement, dated November 8, 1979 and
WHEREAS, the financial advisory agreement is designed to interface un
coordinate with the solid waste program engineering activities currently i 0 .-
dcv
bv Camp, Dresser, and McKee, Inc; and
',:lIEREAS, it is recognized that the solid waste supply must he secured
before a resource recovery disposal system can be he implemented: and
WHEREAS, upon completion of Phase IA by Camp, Dresser, and McKee, Inc.,
engineering consultants, and Paine, Webber, Jackson, and Curtis, Inc., as
financial advisors, sufficient information will be developed permitting contracts
to he prepared an(1 ,,.cutod between the County and each participating municipal-
ity in order to secure the solid waste supply.
NOW THEREFORE BE IT RESOLVED that the Char-m et the Oakland County
Board of Commissioners is hereby authorized and directed to execute the said
agreement for financial advisory services by and between the County of ::.:L!:wa
a. Pinc, Webber, Jackson, and Curtis, Inc.
BE IT FURTUER RESOLVED, that the effective date of the agreement shall
be January 1, 1980.
BE IT FURTHER RESOLVED that the maximum fee for Phase IA financial advisor
services shall not exceed $65,000.
BE IT FURTHER RESOLVED that the County Executive is hereby authorized
and directed to act as the County's representative with respect to the work
performed under this agreement.
The Planning and Building Committee by Richard R. Wilcox, Chairperson,
moves the adoption of the foregoing resolution.
PLANNING AND BUILDING COMITITE
,
,
Ri,hard R. Wilcox, Ca rp
FISCAL NOTE
BY: FINANCE COMMITTEE, DENNIS MURPHY, CHAIRPERSON
IN RE: MISCELLANEOUS RESOLUTION #9205 - SOLID WASTE RESOURCE RECOVERY
DISPOSAL SYSTEM - PAINE, WEBBER, JACKSON, AND CURTIS, INC.
AGREEMENT
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
Pursuant to Rule XI-C of this Board, the Finance Committee has re-
viewed Miscellaneous Resolution #9205 and finds the total cost of subject
agreement is $65,000 for the period January 1, 1980 through May 31, 1980.
Further, the Finance Committee finds the subject agreement was anticipated
in the 1980 Budget and $65,000 was provided in the Professional Services
item in the 1980 Sewer, Water and Solid Waste Division - Solid Waste Unit
Budget. No additional funds are required at this time.
FINANCE COMMITTEE
Dennis Murphy, Chairperson
1,
7"
140 -- New Y04-,, N.Y. (217-; ,27-7121
Advisory Services
This - -t-meatent, tde and -ad into this 8th do v of 70-v1. ott, 1979,
and ItT--• Pa-The, & Curtis Incorpet: •d and the
of 0s11 .::,rd, ]'it.n .:_gan (the "Conaty").
Whereas the County is invcatigatipp, the possibility of imple ,Innting a.
recovery plan and facilities to serve the solid waste disposal v -s1s of the citi-
zens of Oakdnnd County; and
Whereas, the County is csae 4 doming various alternatives for the financing of
such facilities; and
Wherea s. the County dee- it to be in thebest i .At -r:-.nt of the citizens it
serves to retain expert fintInctial advice ib with future investi gations
relative to the feasibility. and 1--n1emmtation of its "program";
Whereas the County at the comp.otion of Phase lA efforts by their consultants
intends to present contracts, pro -gored by the Cenn:., and its covres1 and including
an outlined schedule of estimated tipping foes, to municipalities in the CsoPty,
in order to secure commitments for the delivery of solid waste to the (.--•y•
facilities; and
Whereas, PWJC is en:vgol in the field of municipal finance and has adott -uttte
resources, sl<-111 and expertise in the spocific arons of resource recovery and
implem:mtatien.
B .--; IT THAT:
1) PWjC shall act as financial m -'-e'son to the Coo s ty with respect to its
resource recovery project, ancl. sall be c. de t,t,J108 bct iow.
NOW
:end stodies as mutnally
and ocette,
2) PWJC shall promptly proceed with in—: M• ''t
agreed to in order to advtise the County es to the.
feasibility of its resource recovery projr.
Cor•T::c on
of the I,
t
coed costs
to charge,
3) PWjC shell paomptly precee(ito conduct the scope of work at hereto
which by reM ,•-aroo is made a part of hercoL
4) PWJC shall ceml : •.-ite with ell attorneys, ngin —rs, officials and repre-
sentatives of the (.unty relative to the preparati‘m of all pertinent infor-
mation as required in the Scope of Work-
5) The County, and its advisors, will disclose and •••••ahc available to
all ii .................yinfou -stina relating to the project as well as to the C•—• e• -
and its reaorces.
6) PWje has revii
the County and
with the Projec
as to not delay
arc. to the
the Agreement for Rngirecring
tod May 18, 1979, and will mcfa
'out Team, and will deliver Th.•
orderly pro ,:=ssion of the _
by and 1 .--•Ln
sly coordinatice
ca.ilpet products so
ef the c-ng Final
The total project is divided :ulto severLl phases, and the County wishcq, to
retain the right to discuss and cl-qlcp a -ocatior on further work.:
PlqjC agrees to a compensati. agr.--cat for Phase 1A. of the project on the
basis that the County will, in -:-m2d tilt P erter into negotiations with PWJC to
continue to act in the role as financial —7 visor to the Connt -; on this project
at a. compensation plan to be developed prior to or shortly of
Phase 1A.
1.) PWJC i s total fees for Phase lA shell not exceed $65,000, including time
charges, out of pocket expenses, and payments to special conriultents.
2) PWJC shall keep an acccs•nt of all charges and s.
the Coemty detailing expena by work task and type.
l'ay a::•t for services provided by outside advisors ret .ained by PWJC for
purpos3s of this project shall he -paid by the County upon receiving a due
bill, provided such services as to their nature and cost have been agreed
to by the County in writing in advance.
4) The scope of work contains an estimate, by tad
of PWJC's services during Phase 1A. This is an esti•
depending upon the develop-ants during Phase 1A. m •
5) The County has the riht to expand or accelerate the 1A tasks, and PWJC,
in such a case, shall smim -it to the County an estimate of additional costs
should any be required.
6) PWJC will perform all the tasks within Phase IA (see attachment) within
the maxiao , nilowed fee (1 above).
7) All. rep Is developed during Phase IA by PWJC will Inc submitted in draft
form for 71 ,-VieW by the County
i. a monthly bill to
as :he
JACNc7 !T:- CURTIS PAINE,
WITNESS: BY:
1Z.,'flut E. A!Tkich
Senior Vice President
WITNESS: BY
Wal lac e IV C , Jr
Oakland CounLy :1 of
Persn ,
PJC sh211
need:
n the fed .,;.ersonnel to this imej -uE. on the basis of
MT. RobeTt H. Aldrich, Senior Vice Presidemt
Mr. Rene RD -fe l , A.,---;5istnt Vice. President
It is further a greed that Mr, Aldrich will personally be in-o'••H in a
MI:171 of 50% of the actual time logged and will be the primary revnm.- Sative at
the meetings of the task force,
In PWJC plans to utilize the services of:
Ms; 1:nncy Narkiewicz who currently is providing consulting services to PWJC
in the field of solid waste management planning ,and;
Mr, Gary Larson, of Price Waterbfluse, for specific functions relating to
economic evaluations of financial plating
Terms of Agre -
and shall con-
ihe parties hereto mutually
nor vritten notice by
:erminates this agreement,
This agree•t- shall become effective as of
tinue in effect until temminated as provided herein.
ogre.•-•- may be terminated upon 30
the other provided that if the County
PWJC the total of:
1) all bills outstanding to the County;
2) all cm7-nnes as of the date of notice; and
agree that this
either party to
it shall pay to
3) all work output :9 or docr --n:-s completed at day of termination, shall be
forwarded to and become the proyurrty of the County.
IN 71. - the parties hereto have executed this Agr.
day and yEr first o•nve written.
COUNTY OF OAKLAND, MI (SHY:
APPROVED AS TO FORM:
-Lk.
r 4 4 AMMXPAte - '1;bér- P. Allen
Civil Counsel
County of Oakland
Prcpssai Sco -ss of W•tk of Paine, Webber, Jackson. & Curtis
ineornorat
In Phdae A. the Financial Advisor should actively partic i L in the Project
Citia,ons Partieim,tHe Program and will atto-1 all meetings
at the of the Project fleinag(.: such as Act 641 Planning Committee, public
hearings, nagetiainions of contracts, etc.
Advisor to the County of Oakland,
The foiar -ing Tasks will be pellt
the Project W.- .ap for his appru
will be issue on each task. A
months where no task report is sC .titted.
and presle.-s presented to
aoval, 50 copies of final reports .
iapart will be issued in those
101 tl Task I - TdentificatIon and knalysis of lik,der;l
At the cntrent time, there are significant ck:ages oceirring in
I egislation and regulations on resource ratovery which could have 1
short term and lobg term financing of Re-en -cc Recctery
laws and regolati' .- are currently under development, it is
County be a;2iare of the trends and be able to participate whe, e
Preheat mina_
on the
theses
that the
appropriate.
In Task 1, the Financial Advisor shall prepare for the Task Force a report
OD existing and proposed Federal Laws on Resource Recovery as they relaie to the
project. Particular emphasis will be placed upon the following demilapm:n's:
1) Availability of short and long term finaineinl. assist-
ance for planning and evaluation_ (EPA and DOE lean
and grants);
2) The status of the use of tan-examnt financing (Tndustrial
Revenue P •••js) for projects in ,Zaich the private sector
or Feden7a1 C are purcha'.at - of energy or mater-
ials, or operators of the facility (New IRS Rules and
-s);
The availability of special tax incentives to private
industry and gTvsx mm•al bodies for new energy systems
(Windfall Tax Lou);
4) Regulati. and rules on liTvestment Tex Credit and de-
precioafen oh facilities for evaluating prinato
ship and operation vs, public ownership. This wcild
include a. review of IRS regulations OR 1,7 -
5) The availability of special price i•m:ami-- on new . am
of energy or guarms'..- i- of debt of pehlic or privat.•
Lodi es. -
c Pr n1 Tpai,- 2- Fin7ATICji:t and Fee- of Alt..
base et -
viii. p •--• •
cis ions
will b.a used ia
an in.-1 m:
ric and fin
r -:ns' by Paine .•-, we will
models of n a -mai project sconaricasn
'nich to mi.:, institutional and. fi
'.tivity of fey vertables„ The
for cc n:Tni5 evaluations of alt -
The model will incl•
1) Short term fincrn needs;
2) Cost of carii -al under varyins scenarios;
3) n t of c: tal and O&M cost variables;
4) vari:,YLES;
5) r.':Vnt7P vs. public participation includius tax lacmefirs and profit
raquiremcutso
P'-ld it be deemed advat' - - to Camp & McYce (fl .>1 thit
compu - 1 n,-2, also be utiliz -al by CDM fc,r the Oak-land C-I m.y P--
Task 3 - Risk Analysis
We will prepare a c ----f.l.cto report reviewing the various risk --:spects to the
lc- -- the pTnl- -T to identify and risks to tie various par-
tica ••'; to measure the costs or price of P,F,01;7. these
In this we will outline the rael -ced contract forms nen:essea ., to
tion risk betnmen participants, Also -7a:eluded will he a study of the use
insurance to cover risks not assi?reb'a ruder the ccutracts,
- Financial feasibility of the prcject will be de -c in-d. by integrating this
task into the ca,atcr me:lal and alternative str-atm-ea, Debt strua-
ture will he dotnm,*e: by the risk Vs, tax advmafs.. etc.
Task 4 - Tipping Fees
The financial consultant is to develop several Ca 1rppre -:hes for the
tipping foe to be charged to entities utilizing the rcta na.ac ---,amery facility,
which will indicate the manner by which the Coraty will reco -vcc the espital and
0T4 costs assecieted with the prolect,
Task 5 - Finn Alternatives and Str--tasY
We wdll prepare a report on the severs* fin•asiMg alternatives nvallahle for
this project%, Inelndod in this Task vi LL be studies on
debt; a) Federally guaranteed.
b) Project fl
c) Ts:1 p ea: 7--:1
ds
e) VCS,
The
- cussed
laws and nil! Pe on a hie
esl-s of ea:11 alternative will he (Us-
' 1 le:sod on existing Federal and state
basis,
The Finanail Strategy emerge from the
dation of the Task Force,, A f .ival, but preliminary,
developed. and be the primary r of the Phase IA i
Task P7-7 ••(1 Cortraets .
Frocn ,.. of the site and facilities and Che o" 0y to en-te into contrnats
will be stmd -: ..he Task FOrt" We will, in cosy -
and Bond pro:rua- vsesa. alternatives, - An:''ihr produc± of IA
will be a mr• emmi -e ,t plan for the project, end the required capital and
for the pracue ,eaan phase,
Task 7- Phase IA Report
At the end. of Phase IA, PWJC will prepare a report of Phisel activitleu and
an outline of a plan for Phase IB, II and future phasing IrAliiing:
1) Interim fim-eselug strategy;
2) Long term financing strategy;
3) Pi. • pi ,ccduros;
and format;
5)
6) Eceie
7) Fin2r(7 . and 77 vi.,'-
8) Public partioiation prs
PWJC will deliver 500 copies of the Final Report,
11 Phase 1A Acti,7itie Estimate of Time Charzes for Tasks and Duties Associated
nate Task Man-da
1 As above 6
2 10
3 U 7
4 5
5 UI 10
6 5
7 -2
8 Meetings with Task Force 20
9 Outside Meetings 5
10 Outside Consultant Fees
11 Travel Expanses
12 Final Report Preparation
$ Estimate
$ 4,320
7,200
5,040
3,600
7,200
3,600
1,440
14,400
3,600
5,000
6,000
3,600
$65,000
Guaranteed maximum charges for Phase 1A, subject to contract is $65,000.
#9205 December 6, 1979
Moved by Wilcox supported by Patterson the report be accepted and Resolution
#9205 be adopted.
AYES: Fortino, Gabler, Gorsline, Hobart, Hoot, Kasper, Kelly, Lewand, McDonald,
Moffitt, Montante, Moore, Moxley, Murphy, Page, Patterson, Perinoff, Pernick,
Peterson, Price, Roth, Wilcox, Caddell, DiGiovanni, Doyon. (25)
NAYS: None. (0)
A sufficient majority having voted therefor, the report was accepted and
Resolution #9205 was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lynn D. Allen, Clerk of the County of Oakland and
having a seal, do hereby certify that I have compared the annexed copy of
Miscellaneous Resolution #9205 adopted by the Oakland County Board of
sego*. too*. *es" o*********9 9•1n 64 .0.0400104.4a 461a14044 60 4,68" OBBOIT“ 6.• ad 0 Oa*
Commissioners at their meeting held on December 6, 1979
0.60.4,440,0 644[0044•004414 oaeaass am sae". see et 4780 Vatl)ea a 4,4•44 WOO es,a se it ea aim a.
with the ori7ina1 record IThosseff no
office. - zrooodce
then 's of of the whole thoreof ,
ning in my
transcript
In Testimony Whereof, I have hereunto set my hand and
affixed the seal of said County at Pontiac, Michigan
6th December 79
Lynn P.
Cierh By v .1, • Se a.4a.sa• ...lobe a saara. sae sX.