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HomeMy WebLinkAboutResolutions - 2018.09.05 - 237691 Apr LZommissioner ip J. Weipert, District #8 Chairperson, Planning and Building Committee MISCELLANEOUS RESOLUTION #18314 September 5, 2018 BY: Commissioner Philip J. Weipert, Chairperson, Planning and Building Committee IN RE: WATER RESOURCES COMMISSIONER - REQUEST FOR A NOT TO EXCEED $45,000 LOAN FROM THE LONG TERM REVOLVING FUND FOR THE FIVE POINTS DRAIN EMERGENCY PIPE REPAIR PROJECT To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS, the Five Points Drain was established, designed and constructed under the Michigan Drain Code of 1956, MCL 280.1 et seq., as amended ("Drain Code") and is located in Oakland Township; and WHEREAS, the Five Points Drain was in need of repair due to a partial pipe collapse beneath the intersection of Orion Road and Adams Road; and WHEREAS, the Water Resources Commissioner responded to the emergency; procured the services of a contractor; performed the work; and inspected the work for compliance with contract documents and WRC standard specifications to repair the Five Points Drain ("Project") in the amount of $417,838 attached hereto as Exhibit A, with $41,403 of the project cost being the responsibility of the residents of Oakland Township; and WHEREAS, the Project consisted of replacing approximately 250 lineal feet of 12-inch diameter clay pipe; and WHEREAS, Miscellaneous Resolution #02019, adopted February 21, 2002, established a Long Term Revolving Fund to assist in the financing of infrastructure projects; and WHEREAS, Miscellaneous Resolution #02019 authorized loans up to $150,000; and WHEREAS, in order to pay for the costs associated with the Project, the Five Points Drain Drainage District has requested and the County has agreed to provide an advance from the Long Term Revolving Fund in the amount not to exceed $45,000 to cover the Oakland Township Residents' portion of the project cost with the understanding that the Drainage District agrees to pay back to the County, with applicable interest, over a period of five (5) years with assessments on properties benefiting from the Project. NOW, THEREFORE BE IT RESOLVED that the Board of Commissioners of the County of Oakland, State of Michigan, agrees to the contractual terms as follows: 1. The County hereby agrees to advance an amount not to exceed $45,000 to the Drainage District in connection with a Project that consisted of replacing approximately 250 lineal feet of 12-inch diameter pipe. 2. The loan shall be applied to all costs for the Project including interest and evidenced by an inter- local agreement between the County and the Five Points Drain Drainage District. 3. The proceeds of the loan shall not be disbursed to the drainage district until and only after all proceedings approving the Project as provided in the Drain Code have been completed and the time for contesting the validity of said proceedings, if any, has passed. 4. Disbursal of funds will occur when the Water Resources Commissioner provides notice to the County Treasurer and the County's Fiscal Services Department that all necessary Drain Code proceedings have been completed. BE IT FURTHER RESOLVED that the Chairperson is hereby authorized to execute an inter-local agreement between Oakland County and the Five Points Drain Drainage District subject to the approval as to form by Corporation Counsel. Chairperson, on behalf of the Planning and Builsting—Sommittee, I move the adoption of t foregoing resolution. PLANNING AND BUILDING COMMITTEE Motion carried unanimously on a roll call vote. Form DC-001 OAKLAND COUNTY WATER RESOURCES COMMISSIONER MEMORANDUM TO: Philip J. Weipert, Chairperson, Planning and Building Committee FROM: Geoff S. Wilson, P.E. - Drain Maintenance Engineer SUBJECT: Five Points Drain Emergency Repair Financing DATE: August 6, 2017 The Oakland County Water Resources Commissioner's Office (WRC) responded to an emergency situation at the Five Points Drain (Charter Township of Oakland, Chapter 4 Drain) and determined that approximately 250 feet of pipe replacement was necessary to alleviate flooding. The Michigan Drain Code allows the WRC to expend the necessary funds to repair the drain and recoup costs through a special assessment to the drainage district in such emergency situations. The Five Points Drain Drainage District is comprised of 34 individual parcels in the Charter Township of Oakland. The drainage district is a special assessment district established under Chapter 4 of the Michigan Drain Code. If the funds are recouped by a single special assessment on the winter 2019 tax roll, each resident will pay the amount summarized on the enclosed sheet. The enclosed sheet also identifies the estimated amount each resident would pay if the loan is repaid over a five-year period. On behalf of the Five Points Drain Drainage District, we are requesting a loan in the amount summarized on the enclosed sheet to allow Oakland Township residents the option to repay the project cost over a five-year period rather than in a single assessment. The loan request is made pursuant to Miscellaneous Resolution 402019 authorizing loans of up to $150,000 to assist in the financing of infrastructure projects. OAKLAND COUNTY WATER RESOURCES COMMISSIONER Page 1 of 1 Rev.: 11/05108 CONTRACT THIS CONTRACT (hereafter, this "Contract") is made and entered into between the COUNTY OF OAKLAND, a Michigan Constitutional Corporation, whose address is 1200 North Telegraph Road, Pontiac, Michigan 48341 (hereafter, the "County"), and the FIVE POINTS DRAIN DRAINAGE DISTRICT, a statutory public corporation established under the provisions of the Drain Code of 1956, as amended, MCL 280.1 et seq. (hereafter, the "Drainage District"). In this Contract, either the County and/or the Drainage District may also be referred to individually as a "Party" or jointly as the "Parties." WHEREAS, the Five Points Drain was established, designed, and constructed under the Michigan Drain Code of 1956, as amended, MCL 280.1 et seq.(hereafter, the "Drain Code") and is located in the Charter Township of Oakland; and, WHEREAS, the Drainage District is a special assessment district established under Chapter 4 of the Drain Code; and, WHEREAS, the Five Points Drain runs underneath the intersection of Orion Road and Adams Road diagonally from northwest to southeast and was in need of repair due to a partial pipe collapse beneath the intersection; and, WHEREAS, the Water Resources Commissioner had responded to the emergency; procured the services of a contractor; performed the work; and inspected the work to ensure compliance with contract documents and WRC standard specifications to repair the Five Points Drain (hereafter, the "Project") in the amount of $417,838, with $41,403 of the Project cost being the responsibility of properties within the special assessment district located in the Charter Township of Oakland; and, WHEREAS, the Project consisted of replacing approximately 250 lineal feet of 12-inch diameter clay pipe; and, WHEREAS, Miscellaneous Resolution No. 02019, adopted February 21, 2002, established a Long Term Revolving Fund to assist local units of government by offering loans to finance water or sewer projects that do not require the issuance of bonds; and, WHEREAS, Miscellaneous Resolution No. 02019 authorized project loans up to $150,000; and, WHEREAS, in order to pay for the costs associated with the Project, the Drainage District has requested a loan from the County's LongTerm Revolving Fund in an amount not to exceed $45,000; Page 1 of 3 and, WHEREAS, the loan shall be repaid by the Drainage District from special assessment revenue received by the Drainage District pursuant to the Loan Repayment Schedule attached hereto as Exhibit A, and will be further secured by the full faith and credit pledge of the Drainage District; and, WHEREAS, pursuant to Miscellaneous Resolution No. , the County Board of Commissioners agrees to advance an amount not to exceed $45,000 to the Drainage District upon the terms and conditions set forth in this Contract. NOW, THEREFORE BE IT RESOLVED, pursuant to Miscellaneous Resolutions Nos. 02019 and which are incorporated herein, and in consideration of the mutual promises, representations, and agreements set forth in this Contract, and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the Parties agree as follows: 1. The County hereby agrees to advance an amount not to exceed $45,000 to the Drainage District in connection with the Project that consists of replacing approximately 250 lineal feet of 12-inch diameter clay pipe. 2. The amount advanced by the County shall be applied to the allowable costs as authorized for the Project as approved by the Drainage District in accordance with the Drain Code. 3. The Drainage District shall reimburse the County for all funds advanced including interest, in accordance with the Loan Repayment Schedule attached hereto as Exhibit A, with the special assessments levied and collected from certain properties within the drainage district established and approved by the Drainage District in accordance with the procedures set forth in the Drain Code. 4. Principal and interest payments are due , with the first payment due on , and last payment due on , in accordance with the Loan Repayment Schedule attached hereto as Exhibit A. The annual interest rate is percent, which is based on the six-month treasury bill rate. 5. If any funds raised pursuant to the special assessment district are insufficient to meet the obligation under this Contract, the Drainage District shall proceed in accordance with the procedures set forth in the Drain Code to make additional special assessments in order to fulfill its obligations under this Contract. Page 2 of 3 6. 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 the 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 alterthe Contract or make execution impractical. FOR AND IN CONSIDERATION of the mutual assurances, promises, acknowledgments, warrants, representations, and agreements set forth in this Contract, and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the undersigned hereby execute this Contract on behalf of their respective Parties, and by doing so legally obligate and bind the Parties to the terms and conditions ofthis Contract. IN WITNESS WHEREOF, Jim Nash, Water Resources Commissioner, hereby accepts and binds the Five Points Drain Drainage District to the terms and conditions ofthis Contract. FIVE POINTS DRAIN DRAINAGE DISTRICT By: DATE: Jim Nash Oakland County Water Resources Commissioner IN WITNESS WHEREOF, Michael J. Gingell, Chairperson, Oakland County Board of Commissioners, hereby acknowledges that he has been authorized by a resolution of the Oakland County Board of Commissioners, a copy of which is attached, to execute this Contract on behalf of Oakland County, and hereby accepts and binds Oakland County to the terms and conditions of this Contract. COUNTY OF OAKLAND By: Michael J. Gingell Chairperson, Board of Commissioners By: Lisa Brown Clerk/Register of Deeds DATE: DATE: Page 3 of 3 Exhibit A By: GSW Date: 8/1/18 Five Points Drain Emergency Repair - As-Built Project Costs 1) Contracted Services: Unit Qty Unit Price Cost Overall Construction Cost Easement Acquisition LS 1 $ 372,817 $ - $ Sub-Total $ 372,817 372,817 2) WRC Emergency Response Cofferdam Construction Cleaning, Jetting, CCTV Bypass Pumping 9,460 7,706 7,800 24,966 3) Contracted Services: Project Financing Bond Counsel Financial Consultant Official Statement Bond Rating Fees Bond Discount (11/2%) Sub-Total $ Sub-Total $ 4) County Services: Administration 960 Engineering 8,087 Right-Of-Way Construction Inspection 9,398 Surveying 1,610 Sub-Total $ 20,055 GRAND SUBTOTAL $ 417,838 5) 0% Contingency Final Project Cost 417,838 Exhibit A Five Points Drain Emergency Repair - Total Assessment - $417,838.00. Prepared by GSW 8/1/2018 PROPOSED ANNUAL AMOUNT PIN SITE ADDRESS AMOUNT (5 INSTALLMENTS*) 1017300003 2940 W BUELL RD 3.1118022 $13,002.29 $2,960.68 1017300004 2700 W BUELL RD 0.34235629 $1,430.49 $325.73 1017302002 2961 SPRING CT 0.21181412 $885.04 $201.53 1017302003 2949 SPRING CT 0.1608861 $672.24 $153.07 1017302004 2937 SPRING CT 0.04066876 $169.93 $38.69 1017302012 2960 PLUM CREEK DR 0.09329451 $389.82 $88.76 1017302013 2920 PLUM CREEK DR 0.18217237 $761.19 $173.33 1017302014 2900 PLUM CREEK DR 0.17762263 $742.17 $169.00 1017302015 2870 PLUM CREEK DR 0.0875704 $365.90 $83.32 1017303001 2921 PLUM CREEK DR 0.18717435 $782.09 $178.08 1017303002 2901 PLUM CREEK DR 0.21558885 $900.81 $205.12 1017303003 2871 PLUM CREEK DR 0.2244896 $938.00 $213.59 1017303004 2851 PLUM CREEK DR 0.40283056 $1,683.18 $383.27 1017303005 2821 PLUM CREEK DR 0.12967243 $541.82 $123.38 1017303006 2761 PLUM CREEK DR 0.08554807 $357.45 $81.39 1017303007 2741 PLUM CREEK DR 0.10098805 $421.97 $96.08 1017303008 2721 PLUM CREEK DR 0.2102331 $878,43 $200.07 1018426001 2630 ADAMS RD 0.28839217 $1,205.01 $274.39 1018426004 2708 ADAMS RD 0.10162545 $424.63 $96.69 1018426005 2738 ADAMS RD 0.16160092 $675.23 $153.75 1018426006 2756 ADAMS RD 0.21762032 $909.30 $207.05 1018426007 2766 ADAMS RD 0.16150427 $674.83 $153.66 1018426008 2788 ADAMS RD 0.37250886 $1,556.48 $354,42 1018426009 2650 ADAMS RD 0.32028249 $1,338.26 $304.73 1018476001 2800 ADAMS RD 0.42269639 $1,766.19 $402.17 1018476002 0.24477656 $1,022.77 $232.89 1018476005 2881 ORION RD 0.15631081 $653.13 $148.72 1018476006 0.36337835 $1,518.33 $345.73 1018476008 2900 ADAMS RD 0.25400918 $1,061.35 $241.67 1018476009 7950 ADAMS RD 0.23777049 $993.50 $226.22 1019226001 0.02538925 $106.09 $24.16 1020101001 0.44585714 $1,862.96 $424.20 1020101002 3130 ORION RD 0.13741339 $574.17 $130.74 1020101003 3160 ORION RD 0.03306091 $138.14 $31.46 TOTAL LOAN REQUEST - $41,403.19 *assumes 4.5% annual interest REMAINING PROJECT CONTRIBUTORS (NOT INCLUDED IN LOANED AMOUNT) CHARTER TOWNSHIP OF OAKLAND 50 $208,919.00 RCOC 40.0910911 $167,515.81 Resolution #18314 September 5, 2018 The Chairperson referred the resolution to the Finance Committee. There were no objections.