HomeMy WebLinkAboutResolutions - 2011.03.24 - 16672MISCELLANEOUS RESOLUTION #11048 March 9,2011
BY: PLANNING AND BUILDING COMMITTEE, DAVID POTTS, CHAIRPERSON
IN RE: WATER RESOURCES COMMISSIONER - REQUEST FOR $150,000 LOAN
FROM THE LONG TERM REVOLVING FUND FOR THE DRAYTON PLAINS
DRAIN REPAIR PROJECT
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
WHEREAS, the Drayton Plains Drain was established, designed and constructed under
the Michigan Drain Code of 1956, MCL 280.1 et seq., as amended ("Drain Code") and is located
in Waterford Township; and
WHEREAS, the Drayton Plains Drain is in serious need of repair due to flooding that has
affected private properties and public roads within the drainage district and vehicular travel on
Williams Lake Road; and
WHEREAS, the Water Resources Commissioner has prepared an estimated cost to
repair the Drayton Plains Drain ("Project") in the amount of $150,000 plus interest attached hereto
as Exhibit A; and
WHEREAS, the Project consists of constructing approximately 300 lineal feet of 18" dia.
concrete pipe and approximately 530 lineal feet of ditch cleanout along the original route of the
drain; and
WHEREAS, Miscellaneous Resolution #02019, adopted February 21, 2002, established
a Long Term Revolving Fund to assist in the financing of infrastructure projects; and
WHEREAS, Miscellaneous Resolution #02019 authorized loans up to $150,000; and
WHEREAS, in order to pay for the costs associated with the Project, the Drayton Plains
Drainage District requests a loan from the Long Term Revolving Fund in the amount of $150,000
plus interest with the understanding that the drainage district agrees to pay back to the County
over a period of five (5) years with assessments on properties and municipalities benefiting from
the Project.
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 a loan not to exceed $150,000
plus interest from the County's Long Term Revolving Fund to the Drayton Plains 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 Project.
2. The loan shall be applied to all costs for the Project including interest and evidenced by
an inter-local agreement between the County and the Drayton Plains Drain Drainage
District.
PLANNING & BUILDING COMMITTEE VOTE:
Motion carried unanimously on a roll call vote.
1
3. The proceeds of the loan shall not be disbursed to the drainage district until and only
after all proceedings approving the Project as provided in the Drain Code have been
completed and the time for contesting the validity of said proceedings, if any, 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.
4. The Chairperson is hereby authorized to execute an inter-local agreement between the
County and the Drayton Plains Drain Drainage District subject to the approval as to the
form by Corporation Counsel.
Chairperson, on behalf of the Planning and Building Committee, I move the adoption of
the foregoing resolution.
PLANNING AND BUILDING COMMITTEE
CONTRACT
THIS CONTRACT (hereafter, this "Contract") is made and entered into
between the COUNTY OF OAKLAND, a Michigan Constitutional and Municipal
Corporation, whose address is 1200 North Telegraph Road, Michigan 48341
(hereafter, the "County"), and DRAYTON PLAINS DRAIN DRAINAGE DISTRICT
(hereafter, the "Drainage District"). In this Contract, either the County and/or the
Lake Board may also be referred to individually as a "Party" or jointly as
"Parties."
Recitals:
WHEREAS, the Drayton Plains Drain was established, designed and
constructed under the Michigan Drain Code of 1956, MCL 280.1 et seq., as
amended ("Drain Code") and is located in Waterford Township; and,
WHEREAS, the Drayton Plains Drain is in serious need of repair due to
flooding that has affected private properties and public roads within the drainage
district and vehicular travel on Williams Lake Road; and,
WHEREAS, the Water Resources Commissioner has prepared an
estimated cost to repair the Drayton Plains Drain ("Project") in the amount of
$150,000 plus interest attached hereto as Exhibit A; and
Page 1 of 5
WHEREAS, the Project consists of constructing approximately 300 lineal
feet of 18" diameter, concrete pipe and approximately 530 lineal feet of ditch
cleanout along the original route of the drain; and
WHEREAS, Miscellaneous Resolution #02019, adopted February 21,
2002, established a Long Term Revolving Fund to assist in the financing of
infrastructure projects; and,
WHEREAS, Miscellaneous Resolution #02019 authorized loans up to
$150,000; and,
WHEREAS, in order to pay for the costs associated with the Project, the
Drayton Plains Drainage District has requested and the County has agreed to
provide an advance from the Long Term Revolving Fund in the amount of
$150,000 plus interest with the understanding that the Drainage District agrees to
pay back to the County over a period of five (5) years with assessments on
properties and municipalities benefiting from the Project:
WHEREAS, pursuant to Miscellaneous Resolution # (hereinafter
"MR # "), the County Board of Commissioners agrees to advance an
amount not to exceed $150,000 to the Drainage District upon the terms and
conditions set forth in this Contract.
NOW, THEREFORE, pursuant to MR #02019 and MR # , which
are incorporated herein, and in consideration of the mutual promises,
Page 2 of 5
representations, and agreements set forth in this Contract, and for other good
and valuable consideration, the receipt and adequacy of which is hereby
acknowledged, the Parties agree as follows:
1. The County hereby agrees to advance an amount not to exceed $150,000
to the Drainage District in connection with a Project that consists of
constructing approximately 300 lineal feet of 18" diameter, concrete pipe
and approximately 530 lineal feet of ditch cleanout along the original route
of the drain.
2. The amount advanced by the County shall be applied to the allowable
costs as authorized for the project as approved by the Drainage District in
accordance with Drain Code.
3. The Drainage District shall reimburse the County for all funds advanced
including interest, in accordance with the attached Loan Repayment
Schedule, with the special assessments levied and collected from the
properties within the drainage district established and approved by the
Drainage District in accordance with the procedures set forth in the Drain
Code.
4. Principal and interest payments are due , with the first
payment due on , 2012 and last payment due
, 2017, in accordance with the attached repayment
schedule. The annual interest rate is %, which is based
on the six-month treasury bill rate.
Page 3 of 5
5. If any funds raised pursuant to the special assessment district are
insufficient to meet the obligation under this contract, the Drainage District
shall proceed in accordance with the procedures set forth in the Drain
Code to make additional special assessments in order to fulfill its
obligations under this contract.
6. If any provision of this contract or the application to any person or
circumstance is, to any extent, judicially determined to be invalid or
unenforceable, the remainder of the Contract, or the application of the
provision to persons or circumstances other than those as to which it is
invalid or unenforceable, is not affected and is enforceable, provided the
invalid provision does not substantially alter the contract or make
execution impractical.
FOR AND IN CONSIDERATION of the mutual assurances, promises,
acknowledgments, warrants, representations, and agreements set forth in this
Contract, and for other good and valuable consideration, the receipt and
adequacy of which is hereby acknowledged, the undersigned hereby execute this
Contract on behalf of the Parties, and by doing so legally obligate and bind the
Parties to the terms and conditions of this Contract.
IN WITNESS WHEREOF, John P. McCulloch, Water Resources
Commissioner, hereby accepts and binds the Drayton Plains Drainage District to
the terms and conditions of this Contract.
Page 4 of 5
DRAYTON PLAINS
DRAINAGE DISTRICT DATE:
By:
John P. McCulloch
Oakland County Water Resources
Commissioner
DATE:
IN WITNESS WHEREOF, Michael J. Gingell, Chairperson, Oakland
County Board of Commissioners, hereby acknowledges that he has been
authorized by a resolution of the Oakland County Board of Commissioners, a
copy of which is attached, to execute this Contract on behalf of the Oakland
County, and hereby accepts and binds the Oakland County to the terms and
conditions of this Contract.
COUNTY OF OAKLAND
DATE:
Michael J. Gingell, Chairperson
DATE:
Bill Bullard, Jr.
County of Oakland Clerk/Register of Deeds
Page 5 of 5
$
1,600.00
2,500.00
3,000.00
13,000.00
3,500.00
23,600.00
114,900.00
9,100.00
26,000.00
$ 150,000.00
$ 15,749.00
$ 165,749.00
Exhibit A
Drayton Plains Drain Repair
January 25, 2011
A. CONTRACTED SERVICES - CONSTRUCTION
As-Needed Contractor's Quotation
Estimated Cost to Relocate 8" Water Main
Subtotal - Construction
B. CONTRACTED SERVICES-PROJECT DEVELOPMENT
Consulting Engineer
Subtotal - Project Development
C. LEGAL & FINANCIAL
Bond Counsel
Financial Consultant
Subtotal - Legal and Financial
D. COUNTY SERVICES - PROJECT MANAGEMENT
Administration
Engineering
Right of Way Purchase Costs
Appraisals
Right of Way
Construction Inspection
Surveying
MDNRE Permit
Soil Erosion Review Fee (Inspection Included w/ Construction lnsp)
Subtotal - County Services
Subtotal (Items A, B, C & D)
Contingencies (10% of Construction Cost)
Maintenance Fund Deficit
TOTAL ESTIMATED PROJECT COST:
Interest (estimated 5 year repayment at 4%)
TOTAL PROJECT COST INCLUDING INTEREST
Prepared by:
Glenn R. Appel, P.E.
Assistant Chief Engineer
$ 79,545.00
$ 11,755.00
$ 91,300.00
Resolution #11048 March 9, 2011
The Chairperson referred the resolution to the Finance Committee. There were no objections.
FISCAL NOTE (mISC . #11048) March 24, 2011
BY: FINANCE COMMITTEE, TOM MIDDLETON, CHAIRPERSON
IN RE: WATER RESOURCES COMMISSIONER — REQUEST FOR $150,000 LOAN FROM THE
LONG TERM REVOLVING FUND FOR THE DRAYTON PLAINS DRAIN REPAIR PROJECT
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 Drayton Plains Drainage District is requesting a $150,000 loan from the
Long-Term Revolving Fund to be used to repair the Drayton Plains Drain.
2. Miscellaneous Resolution No. 02019 authorized that monies be made available
for loans to local units for amounts up to $150,000.
3. The Water Resources Commissioner is authorized to compute all the costs and
prepare a special assessment roll for all the lands benefited by the Drayton
Plains Drain.
4. The drain repair project will be managed by the Drayton Plains Drainage District
and full repayment of the loan, with applicable interest, will come from the 5 year
special assessment roll approved by the Water Resources Commissioner for this
project.
5. Also, MR# 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
quite a bit lower than the average interest rate from the Treasurer's pooled
investments and therefore the rate to be charged will be the Treasurer's pooled
investment average annual rate as of March 2, 2011, which is 1.47%.
6. Funding is currently available in the Long-Term Revolving Fund to issue a loan in
the amount of $150,000 to the Drayton Plains Drainage District.
7. No budget amendment is required.
FINANCE COMMITTEE
FINANCE COMMITTEE
Motion carried unanimously on a roll call vote.
Resolution #11048 March 24,2011
Moved by Quarles supported by McGillivray the resolutions (with fiscal notes attached) on the Consent
Agenda be adopted (with accompanying reports being accepted).
AYES: Dwyer, Gershenson, Gingell, Gosselin, Greimel, Hatchett, Hoffman, Jackson, Long,
McGillivray, Middleton, Nash, Nuccio, Potts, Quarles, Runestad, Scott, Taub, Weipert,
Woodward, Bosnic, Covey, Crawford. (23)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the Consent
Agenda were adopted (with accompanying reports being accepted).
I HERE' .`‘( :'ROVE THE FU'EGOING RESOLUT:ON
ACTING PURSUANT TO 1973 PA 139
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Bill Bullard Jr., 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 March 24,
2011, 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 24th day of March, 2011.
Bill Bullard Jr., Oakland County