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HomeMy WebLinkAboutResolutions - 2014.03.06 - 21193MISCELLANEOUS RESOLUTION #14040 March 6, 2014 BY: PLANNING AND BUILDING COMMITTEE, JIM RUNESTAD, CHAIRPERSON IN RE: OAKLAND COUNTY WATER RESOURCES COMMISSIONER — APPROPRIATION OF FUNDS FOR THE ESTABLISHMENT OF A FEASIBILITY STUDY FOR THE NORTH OAKLAND COUNTY WATER AUTHORITY TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mr. Chairperson, Ladies and Gentlemen: WHEREAS, it is recognized that the water systems for the Cities of Pontiac, Auburn Hills, Rochester Hills and the Township of Orion are in need of improvements to increased water pressure and enhance system reliability; and WHEREAS, these communities are customers of the Detroit Water and Sewerage Department (DWSD) and that the needed water system improvements have been postponed to future years; and WHEREAS, the current DWSD water contract contains provisions that allow for the creation of a collaborative Water Authority that could improve services as well as control and minimize future wholesale water rate increases; and WHEREAS, the Cities of Pontiac, Auburn Hills, Rochester Hills and the Township of Orion are actively pursuing a regional initiative to establish a North Oakland County Water Authority (NOCWA) under the Michigan Constitution of 1963 and the Urban Cooperation Act of 1967; and WHEREAS, the concept of establishing NOCWA has been presented to the DWSD that supports this initiative; and WHEREAS, funding is needed to cover a portion of the administrative, technical, and legal expenses concerning the feasibility study for NOCWA; and WHEREAS, Miscellaneous Resolution #07095 previously appropriated $125,000 for the establishment of a project for the study of the feasibility of a regional water authority; and WHEREAS, the study was not conducted and the Water Resources Commissioner (WRC) concluded that the project would not provide a positive economic benefit to Oakland County communities and ceased its participation in this initiative; and WHEREAS, these funds remain available to pursue a similar regional water authority initiative that will provide a significant economic benefit to Oakland County communities, enhance community collaboration regarding infrastructure utilization, and reduce capital expenditures for water system improvements, NOW THEREFORE BE 1T RESOLVED, that the Oakland County Board of Commissioners hereby authorizes funding in the amount of $125,000 for costs associated with the establishment of a feasibility study for the North Oakland County Water Authority. Mr. Chairperson, on behalf of the Planning and Building Committee, 1 move the adoption of the foregoing resolution. PLANNING AND BUILDING COMMITTEE PLANNING AND BUILDING COMMITTEE Motion carried on a roll call vote with Runestad voting no and Bosnic absent. Form DC-001 OAKLAND COUNTY WATER RESOURCES COMMISSIONER MEMORANDUM TO: Jim Runestad, Chairperson, Planning and Building Committee FROM: Steven Korth, P.E,, Manager SUBJECT: Appropriation of Funds for the Establishment of a Feasibility Study for the North Oakland County Water Authority DATE: February 25, 2014 Enclosed is a resolution requesting that the $125,000 appropriation previously authorized by M.R. #07095 (attached) for a study to determine the feasibility of a regional water supply system be re- appropriated to establish a new study with proposed authority called the North Oakland County Water Authority (NOCWA). Background In 2007, the Water Resources Commissioner (WRC) designated County funds to study the feasibility of a regional water authority. This authority proposed to construct a water supply line to serve some Oakland and Genesee County communities Subsequently, the WRC concluded that the project would not provide a positive economic benefit to Oakland County communities and ceased its participation in this initiative. Present initiative The Cities of Pontiac, Auburn Hills, Rochester Hills and the Township of Orion are water customers of the Detroit Water and Sewerage Department (DWSD). In recent years, they have contemplated the creation of an authority to provide system improvements to address water pressure issues, improve system reliability and reduce expenses. This can be accomplished by utilizing excess storage capacity in the City of Pontiac's water storage tanks to offset peak water demand in the other three communities. Although the DWSD planned to construct system improvements to address these issues, the timing of these improvements continues to be pushed out to future years. Creation of an authority will expedite the improvements at a lower cost. In addition, the authority would be a single DWSD customer and would receive water rates that are lower than could otherwise be received by any of the four communities alone. The communities are actively working to create the authority. Provisions are being made for the inclusion of additional Oakland County communities, provided benefits are demonstrated, and the concept has been presented to, and well received by, the DWSD. OAKLAND COUNTY WATER RESOURCES COMMISSIONER Page 1 of 1 Rev.: 11/05/08 MISCELLANEOUS RESOLUTION # wags April 26, 2007 BY: PLANNING AND BUILDING COMMITTEE, SUE ANN DOUGLAS, CHAIRPERSON IN RE: DRAIN COMMISSIONER: DESIGNATION OF DRAIN COMMISSIONER AS COUNTY AGENCY FOR JOINT PROJECT BETWEEN OAKLAND COUNTY AND GENESEE COUNTY FOR REGIONAL WATER SUPPLY SYSTEM FEASIBILITY STUDY TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: WHEREAS, it is recognized that an additional major water supply line is required to provide safe and reliable water service to the region; and, WHEREAS, studies completed by the City of Detroit, Genesee County and Oakland County's Master Plan all confirm the need for an additional water supply; and, WHEREAS, the Governor of this State has cited the importance of and encouraged regional cooperation as a cost-effective means of supplying water to the citizens of this State while allowing our region to be more competitive in the global market; and, WHEREAS, pursuant to County Public Improvement Act, Act 342 of the Public Acts of 1939, as amended ("Act 342"), the governing body of a county, by resolution may authorize and direct the establishment of a system or systems of water improvements and services within or between cities, villages, townships or any duly authorized and established combinations thereof within or outside the county; and, WHEREAS, pursuant to Section 17 of Act 342 (MCL 46,187) two or more adjoining counties may contract for the joint establishment of a system or systems of water improvements and services; and, WHEREAS, as an extension of Oakland County's Water and Sewer Master Plan, and in accordance with Act 342, the Oakland County Drain Commissioner hereby proposes a joint project with the Genesee County Drain Commissioner, and any other adjoining counties that desires to participate for the purpose of determining the feasibility of a regional water supply system ("Project"); and WHEREAS, the cost of the regional water supply feasibility project related to the County of Oakland is not to exceed $125,000. NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of Oakland County, Michigan, as follows: I. APPROVAL OF PROJECT AND DESIGNATION OF COUNTY AGENCY This Board of Commissioners by majority vote of its members-elect does hereby approve, under and pursuant to Act 342 or as otherwise provided by law, the establishment of the Project which shall consist of a study to determine the feasibility of a regional water supply system (the "Project*); and that the Oakland County Drain Commissioner is hereby designated and appointed as the "County Agency" for the Project; and as County Agency shall have all the powers and duties with respect to the Project as are provided by law and especially by Act 342; and that all obligations incurred by the County Agency with respect to the Project are not to exceed $125,000, unless otherwise authorized by this Board of Commissioners, 2. Pursuant to Act 342 or as otherwise provided by law, the Drain Commissioner, on behalf of the County of Oakland, is hereby authorized to enter into a joint agreement with the County of Genesee and any other adjoining counties that may hereafter desire to participate in the Project. 3. CONFLICTING RESOLUTIONS AP resolutions and parts of resolutions insofar as they may be in conflict herewith are rescinded. Chairperson, on behalf of the Planning and Building Committee, I move adoption of the foregoing resolution. PLANNING AND BUILDING COMMITTEE PLANNING & BUILDING COMMITTEE VOTE: Motion carried unanimously on a roll call vote. FISCAL NOTE MSC. 107095) April 26, 2007 BY: FINANCE COMMITTEE, MIKE ROGERS, CHAIRPERSON IN RE: DRAIN COMMISIONER - DESIGNATION OF DRAIN COMMISSIONER AS COUNTY AGENCY FOR JOINT PROJECT BETWEEN OAXLAND COUNTY AND GENESEE COUNTY FOR REGIONAL WATER SUPPLY SYSTEM FEASIBILITY STUDY TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: Pursuant to Rule III-C of this Board, the Finance Committee haa reviewed the above referenced resolution and finds: 1. This resolution approves a joint project between Oakland County and Genesee County to conduct a regional water supply system feasibility study. 2. In order to be proactive in Oakland County's water resources, the Drain Commissioner has recognized the need for an additional major water supply line to provide safe and reliable water service to the region. 3. Under Act 342 the Oakland County Drain Commissioner is designated as the County Agent to conduct the regional water supply system feasibility study which is not to exceed $125,000, unless otherwise authorized by the Oakland County Board of Commissioners. 4. Funds are available in fund #10100 designated account 9010101-371401 FB Drain Strategic Water Initiative Loan. 5. The following General Fund budget amendment is recommended for Fiscal Year 2007. FY 2007 General Fund (10100) Revenue 9010101-196030-665882 Planned Use of Fund Balance $125,000 Total Revenue t125.409 Expense 6010101-149015-788001-26880 Transfer to Reg. Water Sup. Study $125,000 Total Expenses $125,000 Regional Water Supply Study (26880 Project 100000001021 Activity ADM) Revenue 6010301-149015-695500-10100 Transfer from General Fund $125,000 Total Revenue .0.25,000 Expense 6010301-149015-730373 Contracted Services Total Expenses p25,000 $125,000 FINANCE COMMITTEE FINANCE COMMITTEE Motion carried unanimously on a roll call vote with Coulter absent. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 26th day of April, 2007. Ruth Johnson, County Clerk Resolution #07095 April 26, 2007 Moved by Middleton supported by Gershenson the resolutions (with fiscal notes attached) on the amended Consent Agenda, be adopted (with accompanying reports being accepted). AYES: Burns, Coleman, Coulter, Crawford, Douglas, Gershenson, Gingell, Gosselin, Gregory, Greirnel, Hatchett, Jacobsen, KowaII, Long, Middleton, Nash, Potter, Potts, Rogers, Scott, Spector, Suarez, Woodward, Zack, Bullard. (25) NAYS: None. (0) A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the amended Consent Agenda, were adopted (with accompanying reports being accepted). I HEREBY APPROVE THE FOREGOING RESOLUTION STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Ruth Johnson, 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 April 26, 2007, with the original record thereof now remaining in my office. (Eik/S,9 Bill Ireland, DPW Director Orion Twp City of Auburn Hills Allan E. Schneck, Public Services Director City of Rochester Hills Sincere WRC City of Pontiac Ron Meichert, blic Services Director November 21, 2013 Jim Nash, Water Resources Commissioner Oakland County One Public works Drive Building 95 West Waterford, MI 48328 Re: Collaborative Funding Dear Commissioner Nash, In January of 2012, Auburn Hills, Orion Two, Rochester Hills and the Oakland County Water Resources Commission (OCWRC) met to discuss the feasibility as well as the benefits of creating a water authority. As you know, the Detroit Water and Sewerage Department's (DWSD) water system serves the communities of Auburn Hills, Orion Township, Pontiac, and Rochester Hills. Collectively, the communities consume 22.2 million gallons of water per day (MGD) while servicing a population of 184,341 within the respective boundaries of said communities. Within the current DWSD model contract, provisions exist that would allow the creation of a collaborative Water Authority that could improve services as well as control and minimize future wholesale water rate increases from the DWSD, As we understand it, Oakland County had previously budgeted some funding that supported a regional water initiative similar to that which is outlined above and some of that funding may still be available. We are requesting your consideration to allocate funding to further said initiative. If we can provide any additional information on this request, please do not hesitate to contact us at your earliest convenience. CITY OF DFTRorr WATER AND SEWERAGE DEPARTMENT OFFICE OE THE DIRECTOR 735 RANDOLPH STREKI DETRour, TvlICERGAN 48226 Ivsvtv.DEf ROITMLCiOV August 27, 2013 Mr. Jody Caldwell, Chief Engineer Oakland County Water Resources Commission One Public Works Drive Waterford, Michigan 48328-1901 Mr. Ronald Melchert, Director of Public Services City of Auburn Hills 1827 North Squirrel Road Auburn Hills, Michigan 48326 Mr. Bill Ireland, DPW Director Charter Township of Orion 2525 Joslyn Road Lake Orion, Michigan 48360 Mr. Allan Schneek, Public Services Director City of Rochester Hills 1000 Rochester Hills Drive Rochester Hills, Michigan 48309 Dear Messrs. Caldwell, Ireland, Melcheit, Schneck: Regarding: Detroit Water and Sewerage Department Support for Proposed North Oakland County Water Authority would like to thank the members of the proposed North Oakland County Water Authority (NOCWA) for their collaborative efforts in addressing the service needs in their respective communities. I understand that members of my staff met with members of NOCWA on July 29, 2013 for the purpose of discussing its initial proposal. I have been briefed on the proposal and offer the following guidance in support of NOCWA moving forward. In order for an entity to be considered an "authority" for purposes of contracting and rate-making with the Detroit Water and Sewerage Department (DWSD), the proposed authority must, as a threshold matter, show that: 1. The proposed authority members are geographically contiguous; and 2. The authority will have a formal governance structure and status as a legal entity which can contract in its own right; and 3. The management and coordinated efforts of the authority provides a tangible benefit to be realized by the DWSD system, for example and without limitation, an improvement to system reliability and/or performance, a collective moderation of the demand placed on the system by the authority members, joint planning positively impacting the system, or an expansion of the DWSD service area. If DWSD determines that the proposal submitted by the proposed authority meets the threshold for consideration, DWSD will preliminarily accept the proposal and forward it to the Analytical Work Group (AWG) for evaluation and recommendation. The AWG will have 90 days to make to DWSD its non-binding recommendation regarding the proposal. August 27, 2013 Page 2 1 am happy to report that DWSD finds that Option 2 and Option 3 of the NOCWA proposal dated July 29, 2013 meets the threshold guidelines set forth above. As a result, the referenced portions of the NOCWA proposal will be forwarded to the AWG for its evaluation and recommendation. DWSD is appreciative of your members collective efforts and creativity, as DWSD and this region moves forward in new and positive .directions. We extend to you our willingness to provide any assistance necessary to assist NOCWA in bringing its proposal to fruition. Sincerely, Sue F. McCormick Director cc: R. Burlett, R. Chirolla, L. Koester, rf, Newman, C. Porter, B. Saparia, N. Spieles Jim Nash Oakland County Water Resources Commissioner WRC WATER RESOURCES COMMISSIONER Jim Nash December 6, 2013 NOCWA Community Representatives Re: Your letter of Nov. 21, collaborative funding Dear NOCWA Community Representatives: Thank you for your letter dated November 21, 2013 regarding North Oakland County Water Authority (NOCWA) concept. Please know that I am strongly in favor of collaborative initiatives to create this regional authority that will maximize existing Infrastructure, create more efficiencies, allow for increased cooperation, and be fair and representative to all of the stakeholders. There is movement on these efforts and I look forward to continued progress toward the establishment of an authority. My office does support the reallocation of the balance of County funds, previously allocated to a regional a water initiative, to these efforts as well. We are drafting a request to the Oakland County Board of Commissioners to do exactly that. I expect that the request will be heard by the Board very soon. We will keep you apprised of progress toward our goal. Cc: Bill Ireland, DPW Director, Orion Twp. . _ Ron MerChert; Public Servicei DiFe-ctOF, City of Auburn Hills Allan E. Schneck, Public Services Director, City of Rochester Hills C. Cox One Public Works Drive • Buiidiri. 95 West • Waterford, MI 4832a-1907 Resolution #14040 March 6, 2014 The Chairperson referred the resolution to the Finance Committee. There were no objections.