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HomeMy WebLinkAboutResolutions - 2014.06.11 - 21364Miscellaneous Resolution #14136 June 11, 2014 BY: Planning and Building Committee, Jim Runestad, Chairperson IN RE: WATER RESOURCES COMMISSIONER — RESOLUTION TO AUTHORIZE ADVANCE FROM LONG-TERM REVOLVING FUND TO THE LOWER PETTIBONE LAKE SANITARY DRAIN DRAINAGE DISTRICT FOR CONSTRUCTION OF LOWER PETTIBONE LAKE SANITARY DRAIN To the Oakland County Board of Commissioners Mr. Chairperson, Ladies and Gentlemen: WHEREAS, the Lower Pettibone Lake Sanitary Drain Drainage District (the "Drainage District") has been established pursuant to Act No. 40, Public Acts of Michigan, 1956, as amended ("Act 40"), particularly Chapter 4 thereof, for the purpose of constructing a sanitary drain improvement known and designated as the Lower Pettibone Lake Sanitary Drain (the "Project"); and WHEREAS, the Project has been determined to be necessary and conducive to public health, convenience and welfare and necessary to the protection of the public health in the Drainage District; and WHEREAS, the current estimated cost of the Project is $996,770.00, but the Oakland County Water Resources Commissioner will approve a final estimated cost of the Project and will confirm a special assessment roll for the Lower Pettibone Lake Sanitary Drain (the "Roll") in which each of the owners of property in the Drainage District will be assessed a share of the cost of the Project; and WHEREAS, Section 434 of Act 40 authorizes the Drainage District to borrow money or accept the advance of money from a public corporation for the payment of, or in connection with the construction of, any part of a drain project, with reimbursement by the Drainage District, with or without interest as may be agreed, when funds are available; and WHEREAS, the obligation of the Drainage District to make the repayment or reimbursement may be evidenced by a contract, which contract may pledge the full faith and credit of the Drainage District and may be made payable out of the drain assessments made against lands in the Drainage District; and WHEREAS, pursuant to Miscellaneous Resolution 492252, the Board of Commissioners of the County of Oakland (the "Board") established a Long-Term Revolving Fund for the purpose of providing financing for specific capital projects as approved by the Board with the funds advanced being recovered through special assessments, or contracts with municipalities or drainage districts; and WHEREAS, pursuant to Miscellaneous Resolution #14112, the Board (i) affirmed its commitment to provide funding options by offering loans and advances from the County's Long- Term Revolving Fund to finance sanitary sewer projects constructed in accordance with the provisions of Chapter 4 of Act 40 that do not require the issuance of bonds, which loan or advance shall be evidenced by an agreement between the County and the drainage district, and (ii) transferred an additional $1,000,000 from the County's General Fund Assigned Fund Balance titled WRC Long-Term Revolving Fund to the Long-Term Revolving Fund for sanitary sewer projects constructed in accordance with Chapter 4 of Act 40, bringing the total funding in such Long-Term Revolving Fund to $2,491,000; and PLANNING AND BUILDING COMMITTEE Motion carried unanimously on a roll call vote. WHEREAS, in order for the Drainage District to construct the Project in the most efficient manner and at the lowest possible cost, the Drainage District has requested that the County advance money to the Drainage District to pay costs of the Project, such advance to be repaid to the County with interest as set forth in a contract between the County and the Drainage District; and WHEREAS, the advance will be repaid by the Drainage District from the special assessment revenues received by the Drainage District pursuant to the Roll (the "Special Assessment Revenues"), and will be further secured by the full faith and credit pledge of the Drainage District; and WHEREAS, the special assessments on the Roll will be payable in twenty (20) annual installments, the first of which will be due and payable on December 1, 2014, and the several subsequent installments of which will be due and payable on each succeeding December 1, and all unpaid installments of the assessments will bear interest from September 1, 2014, or such earlier date on which funds are advanced by the County to the Drainage District as provided in the contract. THEREFORE, BE IT RESOLVED by the Board of Commissioners of the County of Oakland, Michigan, as follows: 1. The Board hereby authorizes the advance from the County's Long-Term Revolving Fund to the Drainage District in an amount not to exceed the lesser of (i) the total assessments on the Roll as finally confirmed or (ii) $1,200,000 to pay costs of the Project in accordance with the provisions of Act 40, such advance to be repaid by the Drainage District in annual principal installments over a period not to exceed 20 years from the date of the advance with interest on the unpaid balance from time to time at a rate to be determined by the Chairperson of the Board and County Clerk which determination shall be evidenced by their signatures on the hereinafter described contract. 2. The advance shall be repaid from the Special Assessment Revenues and shall be further secured by the full faith and credit of the Drainage District. The Drainage District may prepay principal installments in whole or in part on any date without penalty. 3. The Chairperson of the Board and the County Clerk are hereby authorized to execute and deliver a contract with the Drainage District for the advance of money by the County and repayment by the Drainage District as described in this resolution, and such contract is hereby approved. The contract may be executed in counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 4. The contract shall be approved by the County Department of Corporation Counsel prior to its effectiveness. 5. All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution are rescinded. Mr. Chairperson, on behalf of the Planning ajll Building Committee, I move adoption of the foregoing resolution. CONTRACT FOR ADVANCEMENT OF FUNDS THIS CONTRACT FOR ADVANCEMENT OF FUNDS (hereinafter the "Contract"), dated as of , 2014, is between the COUNTY OF OAKLAND, a county corporation in the State of Michigan (hereinafter referred to as the "County"), and the LOWER PETTIBONE LAKE SANITARY DRAIN DRAINAGE DISTRICT, a public corporation established under the provisions of Act No. 40, Public Acts of Michigan, 1956, as amended (hereinafter referred to as the "Drainage District"); WITNESSETH: WHEREAS, the Drainage District has been established pursuant to Act No. 40, Public Acts of Michigan, 1956, as amended ("Act 40"), particularly Chapter 4 thereof, for the purpose of constructing a sanitary drain known and designated as the Lower Pettibone Lake Sanitary Drain (the "Project"); and WHEREAS, the Project has been determined to be necessary and conducive to public health, convenience and welfare and necessary to the protection of the public health in the Drainage District; and WHEREAS, the owners of property in the Drainage District have been each assessed a share of the cost of the Project; and WHEREAS, the Water Resources Commissioner has approved and adopted a Computation of Cost of Construction for the Project in the amount of $ and has confirmed a special assessment roll for the Lower Pettibone Lake Sanitary Drain (the "Roll") in the aggregate amount of $ ; and WHEREAS, the special assessments on the Roll are payable in twenty (20) approximately equal annual installments, the first of which is due and payable on December 1, 2014, and the several subsequent installments of which are due and payable on each succeeding December 1, and all unpaid installments of the assessments bear interest from September 1, 2014, or such earlier date on which funds are advanced by the County to the Drainage District as provided in this Contract, at a rate of % per annum; and WHEREAS, Section 434 of Act 40 authorizes the Drainage District to borrow money or accept money from a public corporation for the payment of, or in connection with the construction of, any part of a drain project, with reimbursement by the Drainage District, with or without interest as may be agreed, when funds are available; and WHEREAS, the obligation of the Drainage District to make the repayment or reimbursement may be evidenced by a contract, which contract may pledge the full faith and credit of the Drainage District and may be made payable out of the drain assessments made against lands in the Drainage District; and WHEREAS, pursuant to Miscellaneous Resolution #92252, the Board of Commissioners of the County (the "Board") established a Long-Term Revolving Fund for the purpose of providing financing for specific capital projects as approved by the Board with the funds advanced being recovered through special assessments, or contracts with municipalities or drainage districts; and WHEREAS, pursuant to Miscellaneous Resolution #14112, the Board (i) affirmed its commitment to provide funding options by offering loans and advances from the County's Long- Term Revolving Fund to finance sanitary sewer projects constructed in accordance with the provisions of Chapter 4 of Act 40 that do not require the issuance of bonds, which loan or advance shall be evidenced by an agreement between the County and the drainage district, and (ii) transferred an additional $1,000,000 from the County's General Fund Assigned Fund Balance titled WRC Long-Term Revolving Fund to the Long-Term Revolving Fund for sanitary sewer projects constructed in accordance with Chapter 4 of Act 40; and WHEREAS, in order for the Drainage District to construct the Project in the most efficient manner and at the lowest possible cost, the parties hereto have determined that the County shall advance $ from the County's Long-Term Revolving Fund to the Drainage District to pay costs of the Project, such advance to be repaid to the County with interest as set forth in this Contract; and WHEREAS, the advance will be repaid by the Drainage District from the special assessment revenues received by the Drainage District pursuant to the Roll (the "Special Assessment Revenues"), and will be further secured by the full faith and credit pledge of the Drainage District. NOW, THEREFORE, the parties hereto agree as follows: 1. Advance of County Funds, The County shall advance $ to the Drainage District on September 1, 2014, or such earlier date as determined by the County Water Resources Commissioner, to finance costs of the Project. The Drainage District shall apply such money to pay for costs of constructing the Project in accordance with applicable proceedings for the Project under the provisions of Act 40. 2. Repayment of Advance by the Drainage District. The Drainage District shall repay the advance to the County in the principal amounts and on the dates set forth in Exhibit A attached hereto, together with interest due and payable on each principal payment date at the rate of % per annum on the unpaid principal balance; provided, however, that all unpaid principal and interest thereon shall be due and payable on June 1, 2034. 3. Nature of Drainage District Obligation. The Drainage District agrees to pay the amounts required pursuant to paragraph 2 above from the Special Assessment Revenues, and the 2 Drainage District hereby pledges the Special Assessment Revenues for that purpose. In addition, the Drainage District pledges its full faith and credit to the repayment of the advance in the event that the Special Assessment Revenues are insufficient. The Drainage District's obligation to make payments shall be absolute and unconditional and shall not be subject to any abatement, reduction, setoff, defense, counterclaim or recoupment for any reason whatsoever, including, without limitation, abatements or reductions due to any present or future claims of the Drainage District against the County. This Contract shall not terminate, nor shall the obligation of the Drainage District be affected by reason of any defect in or damage to or destruction of all or any part of the Project from whatever cause, it being the intention of the parties hereto that the foregoing payments payable hereunder shall be payable in all events. 4. Lawsuits and Claims. The parties hereto agree that the costs and expenses of any lawsuits or Claims (as hereinafter defined) arising directly or indirectly out of this Contract or the construction or financing of the Project, to the extent that such costs and expenses are chargeable against the County or the Drainage District, shall be deemed to constitute a part of the cost of the Project and shall be paid by the Drainage District in the same manner as other costs of the Project. In this Contract, "Claims" means any alleged losses, claims, complaints, demands for relief or damages, liability, penalties, costs, and expenses, including, but not limited to, reimbursement for reasonable attorney fees, witness fees, court costs, investigation expenses, litigation expenses, amounts paid in settlement, andJor other amounts or liabilities of any kind which are imposed on, incurred by, or assessed against the County or the Drainage District, or for which the County or the Drainage District may become legally and/or contractually obligated to pay or defend against, whether direct, indirect or consequential, whether based upon any alleged violation of the federal or State of Michigan constitution, any federal or State of Michigan statute, rule, regulation, or any alleged violation of federal or State of Michigan common law, whether any such claims are brought in law or equity, tort, contract, or otherwise, and/or whether commenced or threatened. 5. Prepayment of Principal. The Drainage District may prepay principal installments in whole or in part on any date without penalty. All prepayments shall be applied in such order of principal installments as determined by the Drainage District. 6. Surplus Construction Funds. Any unexpended balance of the County's advance pursuant to this Contract remaining after completion of the Project shall be used as provided in Section 283 of Act 40. 7. Survival of Provisions. If any provision of this Contract or the application to any person or circumstance is, to any extent, judicially determined to be invalid or unenforceable, the remainder of this Contract, or the application of the provision to persons or circumstances other than those as to which it is invalid or unenforceable, is not affected and is enforceable, provided the invalid provision does not substantially alter this Contract or make execution impractical. 3 8. Effectiveness and Counterparts. This Contract shall become effective upon its execution by each of the parties hereto. This Contract may be executed in one or more counterparts, which together shall constitute one and the same Contract. IN WITNESS WHEREOF, the County and the Drainage District have caused this Contract to be executed and delivered by the undersigned, being duly authorized by their respective governing bodies. COUNTY OF OAKLAND By: Its: Chairperson, Board of Commissioners And: Its: Clerk LOWER PETTIBONE LAKE SANITARY DRAIN DRAINAGE DISTRICT By: Oakland County Water Resources Commissioner 4 EXHIBIT A The principal amounts and maturity dates for the contract to which this Exhibit A is attached are as follows: MATURITY DATE June 1,2015 June 1,2016 June 1, 2017 June 1, 2018 June 1,2019 June 1,2020 June 1, 2021 June 1, 2022 June 1, 2023 June 1,2024 June 1, 2025 June 1,2026 June 1, 2027 June 1,2028 June 1, 2029 June 1, 2030 June 1,2031 June 1,2032 June 1, 2033 June 1,2034 PRINCIPAL AMOUNT BLOOMFIELD 9007-402 1395350v3 5 FISCAL NOTE (1413C. 114136) June 11, 2014 BY: FINANCE COMMITTEE, TOM MIDDLETON, CHAIRPERSON IN RE: WATER RESOURCES COMMISSIONER — RESOLUTION TO AUTHORIZE ADVANCE FROM LONG-TERM REVOLVING FUND TO THE LOWER PETTIBONE LAKE SANITARY DRAIN DRAINAGE DISTRICT FOR CONSTRUCTION OF LOWER PETTIBONE LAKE SANITARY DRAIN TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: Pursuant to Rule X1I-C of this Board, the Finance Committee has reviewed the above referenced resolution and finds: 1. The Lower Pettibone Lake Sanitary Drain Drainage District is requesting an advance in an amount not to exceed $1,200,000 from the Long-Term Revolving Fund to be used to construct a sanitary drain known and designated as the Lower Pettibone Lake Sanitary Drain. 2. Miscellaneous Resolution #14112 authorized a transfer of $1,000,000 to the Long-Term Revolving Fund for loans and advances to finance sanitary sewer projects constructed in accordance with Chapter 4 of the Michigan Drain Code. 3. The Water Resources Commissioner is authorized to compute costs and prepare a special assessment roll for the lands benefited by the Lower Pettibone Lake Sanitary Drain Drainage District. 4. The construction of the sanitary drain project will be managed by the Water Resources Commissioner and full repayment of the advance, with applicable interest, will come from a special assessment roll approved over the next 20 years by the Water Resources Commissioner for this project. 5. Additionally, MR #89276 states that an interest rate no less than the prevailing six-month Treasury Bill rate should be charged; however, because this is a longer term loan of 20 years, the County will utilize the Treasury Long Term Rate of 3.12% which is based on the most recent published date of May 23, 2014. 6. Funding is currently available in the Long-Term Revolving Fund to issue an advance in the not to exceed amount of $1,200,000 to the Lower Pettibone Lake Sanitary Drain Drainage District. 7. No budget amendment is required. FINANCE COMMITTEE VOTE: Motion carried unanimously on a roll call vote. Resolution #14136 June 11,2014 Moved by VVeipert supported by Jackson the resolutions (with fiscal notes attached) on the Consent Agenda be adopted (with accompanying reports being accepted). AYES: Dwyer, Gershenson, Gingen, Gosselin, Hatchett, Hoffman, Jackson, Long, Matis, McGillivray, Middleton, Scott, Spisz, Taub, Weipert, Woodward, Zack, Crawford. (18) NAYS: None. (0) A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the Consent Agenda were adopted (with accompanying reports being accepted). 4 I HEREBY APPROVE THIS RESOLUTION CHIEF DEPUTY COUNTY EXECUTIVE ACTING PURSUANT TO MCL 45.559A (7) 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 June 11, 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 11 th day of June 2014. Lisa Brown, Oakland County