HomeMy WebLinkAboutResolutions - 2014.02.06 - 21184MISCELLANEOUS RESOLUTION #14024
BY: Commissioner Robert Gosselin, District #11, Commissioner Shelley G. Taub, District
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IN RE: BOARD OF COMMISSIONERS — PROPOSAL TO UNTILIZE 1955 PA 233 TO
ESTABLISH A GREAT LAKES REGIONAL WATER AND SEWER AUTHORITY TO LEASE
AND OPERATE THE WHOLESALE CUSTOMER ASSETS OF THE DETROIT WATER
AND SEWER DEPARTMENT
TO: Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS Representatives of the City of Detroit through the Office of the
Emergency Manager approached Oakland County officials in the second quarter
of 2013 with a proposal to have Oakland County join Wayne County, Macomb
County and the City of Detroit to form the Great Lakes Regional Water and
Sewer Authority (GLRWSA) to assume the operations and liabilities of the Detroit
Water and Sewer Department (DWSD); and
WHEREAS the legal mechanism proposed for the establishment of the regional
municipal authority is found in 1955 PA 233 (Act 233), which authorizes any 2 or
more municipalities to incorporate an authority for the purpose of acquiring and
operating a sewage disposal system and water supply system by the adoption of
articles of incorporation by the legislative body of each municipality; and
WHEREAS under Act 233, only the Oakland County Board of Commissioners,
subject to the County Executive's participation as set forth in 1973 PA 139,
Section 11, may authorize Oakland County to become a constituent municipality
of the proposed GLRWSA: and
WHEREAS the County Executive, as the official charged under Section 13(c) of
Act 139 with preparing comprehensive plans for the overall development of the
county, with supervising economic development functions and with representing
the County in joint planning activities with other jurisdictions, and the Water
Resources Commissioner, as the official charged to act as the County's agent in
managing water and sewer operations have joined as Oakland County's
representatives to negotiate Oakland County's possible participation in the
formation of the GLRWSA; and
WHEREAS the County Executive staff and legal counsel and the Water Resource
Commissioner staff and legal counsel have repeatedly requested full access to
timely, accurate and audited financial records of the City of Detroit's DWSD; and
WHEREAS 1968 PA 2, the Uniform Budgeting and Accounting Act requires
municipalities to maintain timely, accurate financial records, and mandates that
a local unit having a population of 4,000 or more to obtain an annual audit of its
financial records, accounts and procedures, said audit to be filed with the state
treasurer within six months after the end of the fiscal year; and
WHEREAS no timely, accurate and audited DWSD financial records for FY 2013
have been provided or made available to Oakland's representatives during the
negotiating process; and
WHEREAS Oakland County cannot perform responsible due diligence on the
GLRWSA proposal without meaningful access to such records including but not
limited to actuarial information, audited financial information for FY 2013,
unaudited financial information for period from July 1, 2013 to present, labor
status reports, legal status reports, and other related reports and analyses.; and
WHEREAS Oakland's representatives cannot and will not make a
recommendation to the Oakland County Board of Commissioners supporting the
establishment of the proposed regional authority without performing
responsible due diligence.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners joins the demands of its representatives and requests
immediate, meaningful access to all financial records of the City of Detroit
relevant to the consideration of Oakland County's participation in the
establishment of a GLRWSA including but not limited to actuarial information,
audited financial information for FY 2013, unaudited financial information for
period from July 1, 2013 to present, labor status reports, legal status reports,
and any and all other related reports and analyses; and
BE IT FURTHER RESOLVED that the Chairman of the Board of Commissioners is
authorized to appoint a study group of 4 members of the majority party and 2
members of the minority party to help address these concerns.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners will
not join in the formation of an Act 233 regional water and sewer authority
absent a fully transparent and informed negotiation and deliberation process
demonstrating that the formation of such authority is in the best interest of
Oakland County ratepayers and Oakland County residents.
ommissioner IlloberjGosselin, District #11
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Resolution #14024 February 6, 2014
Moved by Gosselin supported by VVeipert to suspend the rules and vote on Miscellaneous Resolution
#14024 — Board of Commissioners — Proposal to Utilize 1955 PA 233 to Establish a Great Lakes
Regional Water and Sewer Authority to Lease and Operate the Wholesale Customer Assets of the Detroit
Water and Sewer Department.
Vote on motion to suspend the rules:
AYES: Gingell, Gosselin, Hatchett, Hoffman, Jackson, Long, Matis, McGillivray, Middleton,
Quarles, Runestad, Scott, Spisz, Taub, VVeipert, Woodward, Zack, Bosnic, Crawford,
Dwyer. (20)
NAYS: None. (0)
A sufficient majority having voted in favor, the motion to suspend the rules and vote on Miscellaneous
Resolution #14024 — Board of Commissioners — Proposal to Utilize 1955 PA 233 to Establish a Great
Lakes Regional Water and Sewer Authority to Lease and Operate the Wholesale Customer Assets of the
Detroit Water and Sewer Department carried.
Moved by Gosselin supported by McGillivray the resolution be adopted.
Discussion followed.
Moved by Woodward supported by Gosselin the resolution be amended as follows:
I hereby appoint Commissioner Gosselin (to act as committee chair) and Commissioners Taub,
Scott, Bosnic, Hatchett, and McGillivray and Woodward to the Regional Water Authority Study
Committee.
Vote on amendment:
AYES: Gosselin, Hatchett, Hoffman, Jackson, Long, Matis, McGillivray, Middleton, Quarles,
Runestad, Scott, Spisz, Taub, Weipert, Woodward, Zack, Bosnic, Crawford, Dwyer, Gingell (20)
NAYS: None. (0)
A sufficient majority having voted in favor, the amendment carried.
Vote on resolution, as amended:
AYES: Hatchett, Hoffman, Jackson, Long, Matis, McGillivray, Middleton, Quarles, Runestad,
Scott, Spisz, Taub, Weipert, Woodward, Zack, Bosnic, Crawford, Dwyer, Gingell, Gosselin. (20)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolution, as amended, was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown, 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 February 6,
2014, 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 61h day of February 2014.
DOES NOT REQUIRE COUNTY EXECUTIVE ACTION Lisa Brown, Oakland County