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HomeMy WebLinkAboutResolutions - 1974.08.08 - 14968RESOLUTION NO. 6773 Aulzust 8, 1974 BY: Mr. Patnales IN RE: GRONKOWSKI DRAIN TO: THE OAKLAND COUNTY BOARD Or COMMISSIONERS MR. CHAIRMAN, LADIES AND GENTLEMEN: WHEREAS, proceedings have been taken by the Statutory Drainage Board for the construction of the Gronkowski Drain under the provisions of Chapter 20 of Act No. 40 of the Public Acts of _ 1956, as amended, pursuant to a petition filed by the City of South- field on April 19, 1972; and WHEREAS, the said Drainage Board by resolution adopted on July 24, 1974, authorized and provided for the issuance of bonds in the aggregate principal amount of $140,000 in anticipation of the collection of an equal amount of special assessments against the City of Southfield and the County of Oakland on Supplement To Special Assessment Roll No. 1 for Gronkowski Drain, said special assessments having been duly confirmed by said Drainage Board; and WHEREAS, said bonds are to be designated Drain Bonds, Series 1974, are to be dated August 1, 1974, will bear interest at a rate not exceeding 8% per annum and will be subject to redemption . prior to maturity in accordance with the provisions of the bond reso- lution; and WHEREAS, said Drainage Board deems it advisable and neces- sary to obtain from this Board a resolution consenting to the pledge of the full faith and credit of the county on the aforesaid bonds; and WHEREAS, the said drainage project is immediately necessary to protect and preserve the public health and therefore it is in the best interest of the County of Oakland that said bonds be sold. NOW, THEREFORE, BE IT RESOLVED BY THE OAKLAND COUNTY BOARD OF COMMISSIONERS: 1. Pursuant to the authorization provided in Section 474 of Chapter 20 of the Drain Code of 1956, as amended, the Oakland County Board of Commissioners does hereby irrevocably pledge the full faith and credit of the County of Oakland for the prompt payment of - the principal of and interest on the said Drain Bonds, Series 1974, and does agree that in the event the City of Southfield or the County of Oakland shall fail or neglect to account to the County Treasurer of the County of Oakland for the amount of any special assessment in- stallment and interest, for the Gronkowski Drain, when due, then the amOunt thereof shall be immediately advanced from County Funds, and the County Treasurer is directed to immediately make such advancement to the extent necessary. 2. In the event that, pursuant to said pledge of full faith and credit, the County Oakland advances out of County Funds, all or any part of an installment or interest, it shall be the duty of the County Treasurer, for and on behalf of the County of Oakland, to take all actions and proceedings and pursue all remedies permitted or authorized by law for the reimbursement of such sume so advanced. MR. CHAIRMAN, on behalf of the Public Works Committee, I move the adoption of the foregoing resolution. PUBLIC WORKS COMMITTEE -2- $217,186.00 424,007.00 43,500.00 3,000.00 4,000.00 300.00 22,000.00 3,500.00 400.00 80.00 140.00 750.00 720.00 $641 ,193.00 $ 50,800.00 $ 25,500.00 $ 1,370.00 $ 720.00 $ 20,000.00 $ 7,000.00 $ 6,000.00 $ 400.00 $ 250.00 $ 39,700.00 $ 47,067.00 $840,000.00 GRONKOWSKI DRAIN • Construction Bids Section "A" Section "B" 2. Engineer's Design Fee Resident Engineer Soil Testing Services Soil Borings 3. Inspection Staking and Layout 4. Publishing Daily Tribune Southfield Sun Michigan Contractor & Builder Bond Buyer 5. Printing of Bonds 6. Rights of Way (Incl. cost of Negotiator) 7. Bond Attorney 8. Financial Consultant 9. Bond Prospectus 10. Drainage Board Meeting Costs 11. Capitalized Interest (8%x140,000)+$28,500.00 12. Contingencies (5.936%) TOTAL ESTIMATED COST Prepared by: James E. Pemberton Chief Engineer & Deputy Revised June 20, 1974 Moved by Patnales supported by Lennon'the resolution be adopted,: ADOPTED: Yeas — Lennon, Mathews; Moffitt, Montante, Nowak, Olson, Patnales, Perinoff, Pernick, Quinn, Richardson, Wilcox, Berman, Brotherton, Burley, Button, Coy, Dearborn, Douglas, Dunleavy, Gabler, Hoot, Houghten. (23) Nays — None. (0) Absent — Hobart, Kasper, Vogt, Walker. (4) STATE OF MICHIGAN ) ) SS: COUNTY OF OAKLAND ) I, the undersigned, the duly qualified and acting County Clerk of the County of Oakland, do hereby certify that the foregoing is a true and complete copy of a resolution adopted by a-two-thirds vote of the members elect at a regular meeting of the Oakland County Board of Commissioners, held on the 8th day of August , 1974, the original of which is on file in my office. IN WITNESS WHEREOF, I have hereunto affixed my official signature this 8th day of August A.D., 1974. County Clerk GEORGE E. HUBBELL THEODORE G BIEHL JAMES,,V HUBBELL 6,..'FRANK M. BARNES GEORGE S. ROTH FRANKLIN A. BURN M. DAVID WARING DONALD R. MCCORMACK CLARENCE W. HUBBELL Principals HUBBELL, ROTH 8c CLARK, INC. CONSULTING ENGINEERS 2323 Franklin Road, Bloomfield Hills, Michigan 48013 TELEPHONE 338-9241 • 566-2690 JAMES E. BEUERLE FRANK M BIEHL DAVID BRODY RAMA RAO V. CHERUKURt GERALD F. KNAPP MYKOLA LAWRIN ()FILM C. LEWIS DAVID MCPHEE CLARENCE W. MYROLD VERON W. RAYMOURE THOMAS H. RITCHIE FREDERICK A. SYNK :satiates June 11, 1974 Gronkowski Drainage Board No. 1 Public Works Drive Pontiac, Michigan Re: Rebid of Section B Gronkowski Drain City of Southfield Attention: Mr. George W. Kuhn, Chairman Gentlemen: 'Attached is a tabulation of bids received on June 5, 1974 from ten (10) contractors for the subject project. The bids ranged from a high of $690,668.75 down to a low of $424,007.00. The low bid, in the amount of $424,007.00, was submitted by Dane Construction Co. of Clawson, Michigan. The bid conforms to the requirements of the specifications and reflects the value of the work. We recommend that you award the Contract to the low bidder, Dane Construction Company, subject to the completion, of financial arrangements. The bid holding period is 45 days. • Very truly yours, IIUBBELL, ROTH & CLARK, INC, Franklin A. Burn FAB/rnm encl. cc: Mr. James E. Pemberton, Chief Engineer & Deputy Commissioner City of Southfield Mayor & Council, Administrator, Clerk PUBLIC WORK'S COMMT_TTErE , By Chairman ,16 1 21 8422 , Tir1 RCOE ,u"ri--471ELD , OAKLAND COuNTY, MICHIGAN TO SPECIAL ROLL NO.1 WOODS DR/-.11'..! DISTE(ICT LIMITS • r x 0 :).,v1r:CHESTER :CONCORD -TULLER DRi CORAL GABLES- DRAINAGE DISTRICT LIMITS REVISED JULY 29, 1974 „ APriC_ ;AKLAND 11:HFIELD 0' EMERSON Chief rh,p1) • • • •,rer GEORGE W. KUHN OAKLAND COUNTY DRAIN COMMISSIONER PLII3LIC WORKS DRIVE PONTIAC., MICHIG('N 48054 858-(r JAMES F. P1---•• Deplay wr,d : June 13, 1974 City of Southfield 26000 Ever g reen Road Southfield, Michigan 48070 Attention: Reference: Gentlemen: Mr. Robert Caldwell, Assistant City Administrator Gronkowski Drain .- The Drainage Board for the Gronhowski Drain received new construction bids for Section "B" of this Project on June 5, 1974. A total of .10 bids were received and the apparent low bidder was the Dane Construction Company in the amount of 9424,007.CO. I have enclosed a copy of these Drainage Board ninutes for your information. As you are aware, the original Contractor for Section "B" of the Gronhowshi Drain withdrew from this contract based on Article VII A-5 of the Contract Documents: "The Contract is executed and delivered subject to the sale of the necessary bonds to complete Section "B" of the Drain. If such sale shall not be affected prior to 180 days from date of award of the Contract, then either party may terminate this Contract without liability." I also point out we did not receive the necessary right-of-way from Congregation Shaarey Zedek until March 5, 1974. To better understand the situation, I will present the following chronological run down of the facts: 1. Bids were received for Sections A & B of the Gronkowshi at 10:30 A.M., April 10, 1973. G & M Construction is low bidder. 2., A Special Assessment Roll in the amount of $700,000.00 was approved by the Drainage. Board on April 24, 1973. OAKLAND COUNTY DRAIN C11SSIONER City of Southfield June 13, 1974 Page 2 3. A Full Faith and Credit resolution for the Gronkowski Bond issue was presented to the Public Works Committee on May 10, 1973. 4, The Oakland County Board of Commissioners, on May 18, 1973, by resolution It-'6331 pledged the County's full faith and credit for the Cronkowski Drain Bond issue. 5. On June 11, 1973 the Drainage Board authorized the institution of a condemnation action to secure parcels l , 4, 8 and 9. It is interjected that normally before seeking construction bids we have secured our rights-of-way; however, the City requested we proceed immediately with Section A so construction could be coordinated with the Lahser - 11 Mile inter- section improvement and the Post Office development, 6. On July 2, 1973 I signed the Municipal Finance Commission application. Subsequently we were in- formed that we required a Department of Natural Resources permit pursuant to Act 346 before the Municipal Finance Commission would grant their ap- proval even though the Act seemed to indicate any project in process when the Act became effective (1-1-73) would be exempt from this requirement. 7. Our Consulting Engineers prepared and submitted a request to the Department of Natural Resources for an Act 346 permit. 8. On 'October 23, 1973 the Department of Natural Resources issued permit No. 73-14-212 for the Gronkowski Drain. 9. On October 26, 1973 a copy of this permit was for- warded to our Financial Consultant with the request he add this permit to the pending Gronkowski Drain' Municipal Finance Commission application, 10. The Municipal Finance Commission, by letter dated October 30, 1973, granted permission for the sale of Gronkowski Drain bonds. 11. Bids for Gronkowski Drain bonds were received at 11:00 A.M. November 27, 1973. Low bidder was First of Michigan at an average net interest rate of 4.8523%. OAKLAND COUNTY DRAIN COMMISSIONER City of Southfield June 13, 1974 Page 3 12. Reference is made to Board Meeting of December 18, 3973 to several right-of-way parcels still being litigated. As mentioned the final right-of-way was secured on March 5, 1974. 13. Letter dated March 8, 1974 was sent to the Contractor ordering him to proceed with construction as at this point in time we had secured all necessary rights-of• way and financing. In the interim, however, because of inflation material prices had risen to the point where the Contractor elected not to proceed and exercised Article VII A-5 of the Contract. In reviewing the original bidding, it would appear the original bid for Section "B" was extremely low. Seventeen bids were received ranging from $275,386.60 to $560,081.00 - the mean average of all being $400,215.82. The immediate problem is a new bid has been received and the monies from the original bond issue are not sufficient to award a new contract. We have met with our Consultinc , Engineers, Hubbell, Roth & Clark, Inc., and our financial people to determine what monies are needed. It was determined that an additional $140,000.00 will be rerluired before the Drainage Board can order the Contractor to proceed. We understand we can bond for this deficiency; however, as we only have a 45 day hold on the construction bid we do not feel we can market bonds within this period of time. In order to start con- struction immediately the Drainage Board, if assured by the City of Southfield they will advance this $140,00.00, will order the Contractor to proceed. If you require additional information, please feel free to contact my office. Most sincerely, George T. Kuhn JEP:gp Enclosure cc: Hubbell, Roth & Clark, Inc.