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HomeMy WebLinkAboutResolutions - 2011.10.05 - 18753MISCELLANEOUS RESOLUTION #11240 October 5, 2011 BY: Finance Committee, Thomas F. Middleton, Chairperson IN RE: SUPPLEMENTAL FUNDING FOR 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 MR# 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 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, and no budget amendment is necessary; and WHEREAS none of the $150,000 loan amount previously authorized in MR #11173 has been release to the project to date; charges will be based on the updated total loan amount of $247,650; and WHEREAS MR #89276 states that an interest rate no less than the prevailing six-month Treasury Bill rate should be charged; and WHEREAS 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, which is 1.121%; 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 the Oakland County Board of Commissioners authorizes an additional $97,650 to the loan previously approved pursuant to MR# 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. BE IT FURTHER RESOLVED the loan shall be applied to all costs for administration, legal proceedings, design, and repair of the project. BE IT FURTHER RESOLVED 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. BE IT FURTHER RESOLVED 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, on behalf of the Finance Committee, I move the foregoing resolution. FINANCE COMMITTEE Motion carried unanimously on a roll call vote with Woodward, Potts and Quarles absent. Resolution #11240 Moved by Middleton supported by Hatchett the resolution be adopted. Discussion followed. October 5, 2011 AYES: Crawford, Dwyer, Gershenson, Gingell, Gosselin, Greimel, Hatchett, Hoffman, Jackson, Long, Matis, McGillivray, Middleton, Nash, Potts, Quarles, Runestad, Scott, Weipert, Zack, Bosnic, Covey. (22) NAYS: (None). (0) A sufficient majority having voted in favor, the resolution was adopted. I LIME APPHNE WE FOREGOING RESOU 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 October 5, 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 5th day of October, 2011. Bill Bullard Jr., Oakland County