HomeMy WebLinkAboutResolutions - 2011.07.21 - 18645Miscellaneous ReSolution#1.1135 July 6, 2011
BY: PLANNING AND BUILDING COMMITTEE,
DAVID W. POTTS, CHAIRPERSON
IN RE: WATER RESOURCES COMMISSIONER —
OAKLAND-MACOMB IN fERCEPTOR DRAIN DRAINAGE DISTRICT
FULL FAITII AND CREDIT RESOLUTION
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS:
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS, pursuant to the authorization provided in Chapter 21 of the Drain Code, the
Drainage Board of the Oakland-Macomb Interceptor Drain Drainage District (the "Drainage
District") expects to provide For the issuance of one or more series of bonds to finance costs
relating to the project described on Schedule 1 (the "Project"), and the costs of issuance of such
bonds; and
WHEREAS, all or a portion of such bonds will be sold to the Michigan Finance
Authority ("Authority") under the State Revolving Fund Program; and
WHEREAS, such bonds will be payable in part from the collection of special
assessments against public corporations in Oakland and Macomb Counties in the Drainage
District, said special assessments to be duly confirmed as provided in the Drain Code; and
WHEREAS, pursuant to a Corrected Final Order of Apportionment dated July 20, 2010
adopted by the Drainage Board for the Drainage District, the cost of the Project has been
apportioned against public corporations in Oakland County as follows: City of Auburn Hills
(3.3059%), Independence Township (includes City of Clarkston) (3.1622%), City of Lake
Angelus (0.0359%), City of Rochester (2.9035%), City of Rochester Hills (12.9326%), Oakland
Township (2.0159%), Orion Township (4,6139%), Oxford Township (2.4184%), Village of Lake
Orion (0.6612%), Village of Oxford (1.1499%), Waterford Township (13.4608%), and West
Bloomfield Township (1.8398%); and
WHEREAS, pursuant to a Corrected Final Order of Apportionment dated July 20, 2010
adopted by the Drainage Board for the Drainage District, the cost of the Project has been
apportioned against public corporations in Macomb County as follows: Chesterfield Township
(3.9434%), City of Fraser (2,3239%), City of Sterling Heights (16.4901%), City of Utica
(0.9289%), Clinton Township (11.2458%), Harrison Township (3.0015%), Lenox Township
(0.2519%), Macomb Township (6.7545%), Shelby Township (4.7641%), Village of New Haven
(0.5379%), and Washington Township (1.2580%); and
WHEREAS, the Drainage Board of the Oakland-Macomb Interceptor Drain has or will
authorize and provide for the issuance by the Oakland-Macomb interceptor Drain Drainage
District of its Drain Bonds, Series 2011A, in the aggregate principal amount of not to exceed
S50,000,000 (the "Series 2011A Bonds") to defrity part of the costs of the Project; and
PLANNING & BUILDING COMMITTEE VOTE:
Motion carried unanimously on a roll call vote with Potts and Weipert absent.
619053_4. DOC
WHEREAS, Section 526 of Act 40, Public Acts of Michigan, 1956, as amended (the
"Drain. Code"), authorizes a county to pledge its full faith and credit for the payment of
obligations issued under Chapter 21 of the Drain Code, if the county board of commissioners has
adopted a resolution by two-thirds (2/3) vote of its members-elect to that effect; and
WHEREAS, the Series 2011A Bonds are to be designated Oakiand-Macomb Interceptor
Drain Drainage District Bonds (Limited Tax General Obligation), Series 201 1A, with such
modifications and other designations as may be approved by resolution of the Drainage Board, in
an aggregate principal amount not to exceed 550,000,000, with such bonds expected to be issued
in approximately September 2011, bearing interest at the rates and maturing in such amounts and
at such times as may be determined pursuant to the resolution of the Drainage Board; and
WHEREAS, said Project is immediately necessary to protect and preserve the public
health, and it is in the best interest of Oakland County that the Drain Bonds be sold and secured
by a pledge of the full faith and credit of Oakland County, as authorized by Section 526 of the
Drain Code; and
WHEREAS, the Board of Commissioners of Macomb County is expected to adopt a
similar resolution pledging its full faith and credit for the payment of the Drain Bonds.
NOW, THEREFORE, BE IT RESOLVED BY THE OAKLAND COUNTY BOARD OF
COMMISSIONERS:
1.Pursuant -to the authorization provided in Section 526 of the Drain Code, the
Oakland County Board of Commissioners, by a majority vote of at least two-thirds (2/3) of its
members-elect, does hereby irrevocably pledge the full faith and credit of Oakland County for
the prompt payment of the principal of and interest on the Series 20 Ii A Bonds, in one or more
series, not to exceed in the aggregate 550,000,000, and does agree that in the event any public
corporations in Oakland County shall fail or neglect to account to the Oakland County Treasurer
for the amount of any special assessment installment and interest (in anticipation of which the
bonds are issued) when due, then the amount thereof shall be advanced from the funds of
Oakland County, and the Oakland County Treasurer is directed to make such advancement to the
extent necessary.
2. In the event that, pursuant to said pledge of its full faith and credit Oakland
County advances out of Oakland County funds all or any part of the principal and interest due on
the bonds, it shall be the duty of the Oakland County Treasurer, for and on behalf of Oakland
County, to take all actions and proceedings and pursue all remedies permitted or authorized by
law for the reimbursement of such sums so paid.
3. All resolutions and parts of resolutions insofar as they conflict with the provisions
of this resolution be and the same hereby are rescinded.
Mr. Chairperson, on behalf' or the Planning and Building Committee, I move adoption of
the foregoing resolution.
PLANNING AND BUILDING COMMITTEE
SCHEDULE 1
Structural rehabilitation of the Oakland-Macomb Interceptor Drain and necessary ancillary construction:
Contract No. I — Segment 2 repair work is located along the Edison Corridor Interceptor and Oakland
Arm Interceptor extending from the Northeast Sewage Pumping Station in the City of Detroit, through
various private properties and the Amber Road Rights-of-Way, through International Transmission
Company (ITC) corridor in the City of Warren, City of Sterling Heights, and through the 15 Mile Road,
Dodge Park Road and Utica Road Rights-of-Way in the City of Sterling Heights. The work is within the
City of Detroit, City of Sterling Heights and the City of Warren, Michigan. The proposed contract work
for the OM1D Segment 2 program generally includes preliminary rehabilitation efforts including flow
control, leak sealing, grouting of potential voids, pipe surface re-lining and spot repairs and consist of the
following construction:
Control Structure No. II- PC:1 5 Access Structure:
This is a 29-foot inside diameter cylindrical access shaft is located on the DWSD North East Pump
Station property just south of 8 Mile Road. The construction of the PC1 5 access structure will include
temporary dewatering, excavation, construction of a temporary circular earth retention system, temporary
flume in sewer, concrete base slab and walls, back-fill, and site restoration. The shaft cover will be
constructed from precast concrete units. The shaft walls will include guide rails/grooves for future gate
installation.
2. Access Manhole # 104A - PCI 6 Access Structure:
The structure is approximately 12 foot diameter, cylindrical access shaft located south of Interstate 696
near Palomino Avenue. The construction of Manhole #104A will include temporary dewatering,
excavation, construction of a temporary circular earth retention system, concrete and steel walls, backfidl,
and site restoration. The shaft cover will be constructed of reinforced concrete.
3. North East Pump Station Modifications and Implementation of Flow Control:
Modifications to the Northeast Sewage Pumping Station include the installation of a new 1250 HP
variable speed pump, electrical variable speed drive, switch gear, 130 HP pump, controls, piping, wiring,
SCADA radio and internet networking, valves and related appurtenances, for both pumps, required for
d.ewatering the OM ID sewage transmission system, allowing the contractor to enter the 100 feet deep
interceptor to perform structural rehabilitation of the piping. As part of the work, the Contractor will also
be responsible for the operation of these new pumps, along with existing upstream flow control gate
structures and a temporary pump station, to manage flow in the interceptor system in accordance with a
comprehensive flow control scheme.
4. Structural Piping Rehabilitation:
The contractor will perform various types of structural pipe repair and rehabilitation at selected locations
along PCI-5, PCI-6, PCI-7, and PC1-8. These will include eementitious grouting of voids outside the
interceptor, sealing of leaks with chemical grout in areas where there is running or gushing infiltration,
isolated liner repairs, repair of holes and localized wall erosions at locations as directed by the Engineer.
Additionally, in specified sections, glass fiber reinforced shoterete will be applied to the inner surface of
the pipe wall. This work also includes the repair and rehabilitation of' the existing control structure CS-4.
The construction of small diameter drop shafts at various locations along the sewer alignment will be
constructed to aid in delivery of relining. chemical and eementitious material in order to accomplish the
work.
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Resolution #11135 July 6, 2011
The Chairperson referred the resolution to the Finance Committee. There were no objections.
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FISCAL NOTE (MISC #11135) JULY 21, 2011
BY: FINANCE COMMITTEE, TOM MIDDLETON, CHAIRPERSON
IN RE: WATER RESOURCES COMMISSIONER - OAKLAND-MACOMB INTERCEPTOR DRAIN DRAINAGE DISTRICT
FULL FAITH AND CREDIT RESOLUTION
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:
The Drainage Board for the Oakland-Macomb Interceptor Drain Drainage District is requesting that the
Board of Commissioners pledge the full faith and credit of the County of Oakland for the payment of
principal and interest on the Oakland-Macomb Interceptor Drain Drainage District Bonds (Limited Tax
General Obligation), Series 2011A. Macomb County is expected to adopt a similar resolution pledging its
full faith and credit.
2. Oakland and Macomb Counties will be secondary obligors with the Drainage District as primary obligor,
with Special Assessments to the Public Corporations as determined by the Final Order of Apportionment
percentages approved by the Drainage Board on July 20, 2010.
3. Chapter 21 of the Drain Code Section 526 of Act 40, Public Acts of Michigan, 1956, as amended (the
Drain Code) authorizes the County Board of Commissioners to pledge its full faith and credit requires a
two-thirds vote of its members-elect.
4. The Drain Bonds for the series 2011A are not to exceed $50,000,000 and to be used for design,
construction of certain projects and rehabilitation of the Oakland-Macomb Interceptor.
5. The Drain Bonds shall bear an interest rate, mature in such amounts and times pursuant to a resolution
determined by the Drainage Board.
6. All total or a portion of the Drain Bonds will be sold to the Michigan Finance Authority under the State
Revolving Fund Program at approximately 2.50% interest for twenty years.
7, The statutory limit for County debt is $5,245,346,034 (10% of State Equalized Value). As of June 2,
2011, the total pledged debt is $315,447,212 or approximately 0.60138% of the S.E.V.
8. The estimated project cost of $50,000,000 will have 48.50% or $24,250,000 apportioned to Public
Corporations within Oakland County and 51.50% or $25,750,000 to Public Corporations within Macomb
County as indicated in the chart:
Public Corporation
City of Auburn Hills
Independence Township (includes City of Clarkston)
City of Lake Angelus
City of Rochester
City of Rochester Hills
Oakland Township
Orion Township
Oxford Township
Village of Lake Orion
Village of Oxford
Waterford Township
West Bloomfield Township
Total Oakland County - Public Corporations
Total Macomb County - Public Corporations
Grand Total
Percent
3.3059%
3,1622%
0.0359%
2.9035%
12,9326%
2.0159%
4.6139%
2.4184%
0.6612%
1.1499%
13.4608%
1.8398%
48.5000%
51.5000%
100.0000%
$ Amount
$1,652,950
$1,581,100
$17,950
$1,451,750
$6,466,300
$1,007,950
$2,306,950
$1,209,200
$330,600
$574,950
$6,730,400
$919,900
$24,250,000
$25,750,000
$50,000,000
9 The Public Corporations will pay for the Drain Bonds through a Special Assessment Roll for the Oakland-
Macomb Interceptor Drain Project. Public Corporations that want to pay cash for their cost of the project
must provide a resolution to the Oakland Macomb Drainage Board by the date set forth by the Drainage
Board to formally notify of their intent to pay cash up front.
10. No budget amendment is required. No General Fund appropriation is required.
FINANCE COMMITTEE
FINANCE COMMITTEE
Motion carried unanimously on a roll call vote with Greimel absent.
Resolution #11135 July 21, 2011
Moved by Runestad supported by Zack the resolutions (with fiscal notes attached) on the Consent
Agenda be adopted (with accompan ying reports being accepted ).
AYES: Crawford, Dwyer, Gin gell, Gosselin, Greimel, Hatchett, Hoffman, Jackson, Lon g , Matis,
McGillivray , Middleton, Nash, Nuccio, Potts, Quarles, Runestad, Scott, Weipert, Woodward, Zack,
Bosnic, Covey. (23 )
NAYS: None. (0)
A sufficient majority havin g voted in favor, the resolutions (with fiscal notes attached) on the Consent
Ag enda were adopted (with accompanyin g reports bein g accepted).
I HEREBY APPROVE THE FOREGOING RESOLUTION
STATE OF MICHIGAN)
COUNTY OF OAKLAND )
I, Bill Bullard Jr., Clerk of the Count y of Oakland, do hereb y certify that the foregoing resolution is a true
and accurate cop y of a resolution adopted by the Oakland County Board of Commissioners on July 21,
2011, with the ori g inal record thereof now remainin g in my office.
In Testimon y Whereof, I have hereunto set m y hand and affixed the seal of the County of Oakland at
Pontiac, Michi gan this 21st da y of July, 2011.
0Q4,
Bill Bullard Jr., Oakland County