HomeMy WebLinkAboutResolutions - 2011.09.22 - 18740REQUEST TO SUSPEND THE
RULES FOR IMMEDIATE
CONSIDERATION
MISCELLANEOUS RESOLUTION #11231
BY: Commissioner Jim Runestad, District #6
IN RE: BOARD OF COMMISSIONERS - REQUEST FOR ADDITIONAL $97,65.0 LOAN FROM THE
LONG TERM REVOLVING FUND FOR CONTRUCTION OF THE LAKE NEVA LAKE LEVEL CONTROL
STRUCTURE
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
WHEREAS Lake Neva is an inland lake located in the Charter Township of White
Lake, County of Oakland, State of Michigan, and
WHEREAS the lake level is regulated, among other things, by a stand pipe
structure ("lake level structure") that is in serious need of repair and/or
replacement, and
WHEREAS the Michigan Department of Environmental Quality has indicated that
the lake level structure poses a substantial risk of failure which poses a
risk to people and property, and
WHEREAS MR4 02019 established a Long Term Revolving Fund to assist in
financing water and sewer projects, and
WHEREAS MR* 11173 approved a loan from the Long Term Revolving Fund not to
exceed $150,000 for the design and repair of the Lake Neva lake level control
structure, and
WHEREAS the total cost estimate for the project is now $247,641, and
WHEREAS MR# 02019 limits Long Term Revolving Fund loans to $150,000 and an
exception is being requested to authorize an additional loan to the Lake Neva
project in the amount of $97,650, and
WHEREAS the Charter Township of White Lake ("Township") intends to establish
a special assessment district in accordance with 1954 PA 188, as amended and
its charter to make the necessary repairs to the lake level control structure
and agrees to pledge the full faith and credit of the Township for the prompt
repayment of the principal and interest of the loan from the County.
NOW THEREFORE BE IT RESOLVED by the Oakland County Board of Commissioners as
follows:
1. The County Board of Commissioners authorizes an additional $97,650
to the loan previously approved in the amount of $150,000, for a
total of $247,650, pursuant to MR4 11173. Said addition shall not
exceed $97,650 from the County's Long Term Revolving Fund to the
Charter Township of White Lake 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, design and repair of the lake level control
structure for Lake Neva_
2. The loan shall be applied to all costs for administration, legal
proceedings, design and repair of the Project.
3. The loan with applicable interest shall be paid in full and shall be
assessed against the Township in five (5) annual installments
beginning with the 2012 tax year.
4. The Chairperson is authorized to execute the agreement between the
County and the Charter Township of White Lake, in the form
recommended and approved. by Corporation. Counsel with terms and
conditions necessary for repayment of the loan provided herein.
BE IT FURTHER RESOLVED that no funds will be distributed from the Long Term
Revolving Fund until after the appropriate Special Assessment District is
legally established.
Chairperson, I move the foregoing resolution.
Jim Runestad, District 6
WATER RESOURCES COMMISSIONER
Water Resources Commissioner — John McCulloch, Ext. 8-0968
WRC Insurance Administrator - Joseph Colaianne, Ext. 2-2027
Financial Analyst — Leo Lease, Ext. 8-0971
BOARD OF COMMISSIONERS — REQUEST FOR ADDITIONAL $97,650
LOAN FROM THE LONG TERM REVOLVING FUND FOR CONSTRUCTION
OF THE LAKE NEVA LAKE LEVEL CONTROL STRUCTURE
Initiated by the Board of Commissioners.
Resolution authorizes the Lake Neva Lake Level Control Structure Project an
additional loan amount of $97,650 from the Long-Term Revolving Fund.
Miscellaneous Resolution 11173 approved $150,000 for the Lake Neva Lake
Level Control Structure but the estimated cost came in higher than anticipated;
requiring that the loan be increased by $97,650 for a total loan not to exceed
$247,650. An exception is being requested in this case to exceed the $150,000
loan limit established in MR #02019 and request a loan for the amount not to
exceed $247,650. 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
last published Treasurer's pooled investment average monthly rate for the month
of August 2011 is 1.121%. The loan amount and applicable interest rate
repayment will come from a 5 year special assessment roll established by the
Charter Township of White Lake for this project. No budget amendment is
required.
County Executive Recommendation - Approve Fiscal Note.
FISCAL NOTE
BY: Finance Committee, Tom Middleton, Chairperson
IN RE: BOARD OF COMMISSIONERS — REQUEST FOR ADDITIONAL $97,650 LOAN FROM THE
LONG TERM REVOLVING FUND FOR CONSTRUCTION OF THE LAKE NEVA LAKE LEVEL
CONTROL STRUCTURE
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 an additional $97,650 loan from the Long-Term Revolving Fund for the
Lake Neva Lake Level Control Structure Project.
2. The County Board of Commissioners previously approved $150,000 for the Lake Neva Lake
Level control structure pursuant to Miscellaneous Resolution #11173, an additional $97,650 is
necessary to complete the project for a loan amount that shall not exceed $247,650.
3. Miscellaneous Resolution No. 02019 authorized that monies be made available for loans to local
units for amounts up to $150,000 and exception is being requested to authorize a loan to the
Charter Township of White Lake for Lake Neva Lake Level Control Structure in an amount not to
exceed $247,650.
4. The full repayment of the loan, with applicable interest, will come from the 5 year special
assessment roll prepared by the Charter Township of White Lake.
5, None of the $150,000 loan amount previously authorized in Miscellaneous Resolution #11173
has been released to the project to date; therefore applicable interest charges will be based on
the updated total loan amount of $247,650.
6. Also, 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 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 last published Treasurer's pooled investment average monthly rate for the
month of August 2011 is 1.121%,
7. Funding is currently available in the Long-Term Revolving Fund to issue a loan in the amount of
$247,650 for the Lake Neva Lake Level Control Structure Project.
8. No budget amendment is required.
Resolution #11231 September 22, 2011
Moved by Runestad supported by Middleton to suspend the rules and vote on Miscellaneous Resolution
#11231 — Board of Commissioners — Request for Additional $97,650 Loan From the Long Term
Revolving Fund for Construction of the Lake Neva Lake Level Control Structure.
Vote on motion to suspend the rules:
AYES: Hoffman, Long, Matis, Middleton, Nuccio, Potts, Runestad, Scott, Taub, Weipert, Bosnic,
Dwyer, Gingell, Gosselin. (14)
NAYS: Jackson, McGillivray, Nash, Quarles, Woodward, Zack, Covey, Gershenson, Greimel,
Hatchett. (10)
A sufficient majority having voted in favor, the motion to suspend the rules and vote on Miscellaneous
Resolution #11231 - Request for Additional $97,650 Loan From the Long Term Revolving Fund for
Construction of the Lake Neva Lake Level Control Structure carried.
Discussion followed.
Moved by Runestad supported by Middleton the resolution be adopted.
AYES: Long, Matis, Middleton, Nuccio, Potts, Runestad, Scott, Taub, Weipert, Bosnic, Covey,
Dwyer, Gingell, Gosselin, Hoffman. (15)
NAYS: Jackson, McGillivray, Nash, Quarles, Woodward, Zack, Gershenson, Greimel, Hatchett. (9)
A sufficient majority having not voted in favor, the resolution failed.