Loading...
HomeMy WebLinkAboutResolutions - 2014.10.08 - 21535Miscellaneous Resolution #14239 October 8, 2014 BY: PLANNING AND BUILDING COMMITTEE, JIM RUNESTAD, CHAIRPERSON IN RE: WATER RESOURCES COMMISSIONER — CITY OF PONTIAC WASTEWATER TREATMENT FACILITY DRAINAGE DISTRICT DRAIN BONDS, SERIES 2014 — FULL FAITH AND CREDIT RESOLUTION TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS: Chairperson, Ladies and Gentlemen WHEREAS, the Drainage Board for the City of Pontiac Wastewater Treatment Facility Drainage District, by resolution adopted on September 23, 2014, authorized and provided for the issuance by the City of Pontiac Wastewater Treatment Facility Drainage District of its Drain Bonds, Series 2014 (the "Bonds") in the aggregate principal amount of not to exceed $9,000,000 to defray part of the cost of the acquisition and construction of improvements to the City of Pontiac Wastewater Treatment Facility; and WHEREAS, the Bonds will be dated as of such date, will bear interest at such rates or rates, will be in the aggregate principal amount, will mature in such years and principal amounts, and will be subject to redemption prior to maturity as shall be determined by the Oakland County Water Resources Commissioner as Chairperson of the Drainage Board for the City of Pontiac Wastewater Treatment Facility Drainage District; and WHEREAS, the Drainage Board deems it advisable and necessary to obtain from this Board a resolution pledging the full faith and credit of the County of Oakland (the "County") for the payment of the principal of and interest on the Bonds; and WHEREAS, the improvements to the City of Pontiac Wastewater Treatment Facility are necessary to protect and preserve the public health and, therefore, it is in the best interest of the County that the Bonds be sold. NOW, THEREFORE, BE IT RESOLVED: 1. Pursuant to the authorization provided in Section 474 of the Drain Code of 1956, as amended, the Board of Commissioners of the County hereby pledges irrevocably the full faith and credit of the County for the prompt payment of the principal of and interest on the Bonds, and agrees that, in the event the City of Pontiac shall fail or neglect to account to the County Treasurer of the County for the amount of any special assessment installment and interest when due, the amount thereof shall be advanced immediately from County funds, and the County Treasurer is directed to make such advancement to the extent necessary. 2. In the event that, pursuant to the pledge of full faith and credit, the County advances out of County funds all or any part of an installment and interest, it shall be the duty of the County Treasurer, for and on behalf of the County, to take all actions and proceedings and pursue all remedies permitted or authorized by law for the reimbursement of such sums so paid. 3. The County Treasurer or the financial consultant, Municipal Financial Consultants Incorporated, is authorized, if necessary, to file with the Department of Treasury of the State of Michigan on behalf of the County an Application for State Treasurer's Approval to Issue Bonds with respect to the Bonds. Mr. Chairperson, on behalf of the Planning and Building Committee, I move adoption of the foregoing resolution. PLANNING AND BUILDING COMMITTEE PLANNING AND BUILDING COMMITTEE Motion carried unanimously on a roll call vote. Form DC-001 OAKLAND COUNTY WATER RESOURCES COMMISSIONER MEMORANDUM TO: Jim Runestad, Chairperson Planning and Building Committee FROM: Sid Lockhart, P.E. Chief Engineer SUBJECT: CITY OF PONTIAC WASTE WATER TREATMENT IMPROVEMENTS — PHASE 1 BOND ISSUE DATE: September 19, 2014 The Drainage Board for the Pontiac Waste Water Treatment Facility has taken action to promote a series of improvement projects for critical work needed at this facility. This facility serves around 20,000 residents for the City of Pontiac. Soon, the Perry Street Diversion Project that was previously approved by the County Board of Commissioners is poised to send 30% of the sanitary sewer flow from the County's Clinton-Oakland Sanitary Sewer Interceptor to this facility. A series of scheduled projects for this facility will enable the plant to meet current regulations and accept the flow from the noted diversion. The amount of the diversion is capped at 30% due to current contractual conditions with the Detroit Water and Sewage Department. Enclosed is the corresponding resolution for the approval of Bonds in the amount of $9 million that will be sold to the Michigan Finance Authority as part of the MDEQ State Revolving Fund loan program, with an interest rate capped at 2.5%. We are requesting that the Board of Commissioners pledge the full faith and credit of the County for the subject bond issue. A map of the project area and a project description are also attached. The City of Pontiac is the entity that will be assessed for the project and the Clinton-Oakland communities will be charged a portion of this cost once the flow is diverted to the Perry Street Project. The bond will be repaid from user fees of the system. On behalf of the Drainage District, we request that this matter be placed on your Planning and Building Committee Agenda for September 30, 2014 and also request that this packet is forwarded on to the Finance Committee on October 16, 2014. It is intended for the resolution to be presented for approval to the full Board of Commissioners on October 23, 2014. Sid Lockhart and/ or Steve Korth will attend the meetings to answer any questions that may arise. Commissioner Nash and the Drainage District thank you for your assistance with this matter. Sincerely, Sid Lockhart, P.E. Chief Engineer c: Michael Gingel, Chairperson, Oakland County Board of Commissioners Thomas Middleton, Chairperson, Finance Committee James VerPloeg, Administative Director JOHN P. McCULLOCH OAKLAND COUNTY WATER RESOURCES COMMISSIONER Page 1 of 1 Rev.: 11/05/08 2014 Pontiac WWTP Improvements Phase 1 Project Description 09/10/14 The Pontiac Wastewater Treatment Plant (WW1P) consists of two geographically separate WWTPs - the East Boulevard WWTP and the Auburn WWTP. These W1ATTPs are interconnected and operate as one WWTP. The East Boulevard WWTP is the older of the two and is located north of M-59 and east of Martin Luther King Boulevard in the City of Pontiac. It was placed into services in 1921 and was renovated in 1952, 1968, 1973, and in the 1980's. The Auburn WWTP is located south of M-59 and west of Opdyke Road and was constructed in 1962 with renovations in 1972 and the 1980's. Upgrades were recently constructed at both facilities in 2010 and in 2012. The majority of the equipment at the plant is beyond its useful life and is not performing at optimal levels. Moreover, the Perry Street Pump Station will begin pumping flow diverted from the Clinton Oakland Interceptor to the Pontiac WWTP in July of 2015, and improvements are necessary in order accommodate this flow and the associated loading. If further improvements are not made, it is likely the plant will violate its National Pollution Discharge Elimination System permit. To address these issues, on October 7, 2013, the WRC introduced a comprehensive improvement project for the Pontiac WWTP for the purpose of accepting the flow from the Perry Street Pump Station and for the plant's continued reliability. WR_C solicited proposals for engineering services from several prequalified firms for the project and selected EINTB Corporation as the engineer. The final project plan develOped by HNTB and submitted to the MDEQ on July 1, 2014 identified numerous improvements and divided the work into two projects - the 2014 Pontiac WWTP Improvements — Phase 1 and Phase 2. The 2014 Pontiac WWTP Improvements - Phase 1 project consists of the following: Waste Activated Sludge (WAS) Thickening Facilities, including WAS disk thickeners, end-suction centrifugal WAS pumps, rotary lobe thickened WAS pumps, dual disk BFP feed pumps, filtrate sump pumps, piping and valves, controls, control panels, electrical work, and other related equipment. (Auburn WWTP) Chemical Feed Facilities, including chemical feed pumps, storage tanks, piping and valves, controls, electrical, heating and ventilation, other related equipment, roof replacement, and other architectural improvements. (Auburn and East Blvd. WWTPs) Screw Pump Replacement, including new screw pumps, motors, gear reducers and bearings, electrical motor control centers, conduit and cable, and other related equipment. (Auburn WWTP) Supervisory Control and Data Acquisition (SCADA) improvements to fully automate and integrate the work into the existing SCADA system, and other related equipment. (Auburn and East Blvd. WWTPs) Construction of the Phase I project was advertised for bid on September 4, 2014, and bids will be received on October 6, 2014. The notice to proceed will be issued to the most responsible bidder on or before December 17, 2014, and final completion of the project is expected by November 15, 2015. The total estimated cost of the project is $9.0 million as detailed in the attached cost estimate. This project will be funded through a loan from the Clean Water State Revolving Fund (SIG). Cedzi;Si ' Eaatplvd. VONTR.f., Ksiclanteei purn-WVVIV OpcIA FGURE NO. 211KIMIU LOCATION MAP XXXXX—XX-XXX—XxX HNT9 CORPDRATIoN 535 Grisvadd Strool, DeFrolt, glchEga, 4e446 Resolution #14239 October 8, 2014 The Chairperson referred the resolution to the Finance Committee. There were no objections.