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HomeMy WebLinkAboutResolutions - 2018.11.14 - 23882sioner RIiIip Weipert, District #8 rson, Planning and Building Committee MISCELLANEOUS RESOLUTION #18392 November 14, 2018 BY: Commissioner Philip Weipert, Chairperson, Planning and Building Committee IN RE: WATER RESOURCES COMMISSIONER — INTERJURISDICTIONAL PROPERTY INSURANCE AGREEMENT WITH THE CITY OF KEEGO HARBOR To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS the City of Keego Harbor owns a sanitary sewer system which is operated and maintained by Oakland County through the office of the Water Resources Commissioner pursuant to an operations and maintenance agreement; and WHEREAS as part of the City of Keego Harbor's sanitary sewer system, the City owns three sanitary sewer lift stations for which Oakland County currently obtains property insurance coverage on a non-profit basis paid for by the City's system revenue; and WHEREAS the City of Keego Harbor desires to continue the property insurance coverage obtained by Oakland County for the benefit of the City; and WHEREAS the City of Keego Harbor executed the Interjurisdictional Property Insurance Agreement on September 20, 2018. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby agrees that Oakland County will continue to obtain property insurance coverage for the City of Keego Harbor's sanitary sewer lift stations on a non-profit basis and charge the cost to the City's sanitary sewer system enterprise fund. BE IT FURTHER RESOLVED that the Board of Commissioners hereby directs its Chairperson or designee to execute the Interjurisdictional Property Insurance Agreement with the City of Keego Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the jar6going resolution. PLANNING AND BUILDING COMMITTEE Motion carried unanimously on a roll call vote. INTERJURISDICTIONAL PROPERTY INSURANCE AGREEMENT THIS AGREEMENT is made and entered into as of the 20 th day of September, 2018, by and between the COUNTY OF OAKLAND, a Michigan constitutional corporation ("County"), whose address is 1200 N. Telegraph, Pontiac, Michigan, 48341 and the City of Keego Harbor, a Michigan municipal corporation, whose address is 2025 Beechmont, Keego Harbor, Michigan 48320 ("City"). In this Agreement, either the County and/or the City may also be referred to individually as a "Party" or jointly as "Parties." WHEREAS, the City owns a sewer system which is known as the Keego Harbor sewer system and as it may be expanded or altered from time to time (the 'System"), and which is operated and maintained by the County pursuant to an ancillary operation and maintenance agreement between the Parties; and, WHEREAS, the City owns three sewer lift stations, (the "Property"); and, WHEREAS, the City desires to engage the County to obtain insurance for the Property on behalf of the City on a non-profit basis and in accordance with the terms and conditions set forth in this Agreement. NOW, THEREFORE, in consideration of these premises and the mutual promises, representations, and agreements set forth in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the County and the City mutually agree as follows: 1. In lieu of the City purchasing real and personal property insurance for its System and related Property, if commercially available to the County and subject to the availability of funds necessary for the County to operate and maintain the System, the County, on behalf of the City, may purchase and maintain real and personal property insurance. 1 2. The County shall obtain real and personal property insurance with limits that the City, in its discretion, deems necessary and appropriate for the City's System and related Property. 3. The cost of insurance, including any premium, self-insured retention or deductible, shall be charged as a cost to the City's System enterprise fund held by the County on behalf of the City. 4. The current annual premium is $558.00 for the June 1, 2018 to June 1, 2019 coverage period. The premium amount is subject to change at annual renewal. IN WITNESS WHEREOF, this Agreement if executed by the Parties on the date hereafter set forth in the opening paragraph of this Agreement. COUNTY OF OAKLAND By: Michael J. Gingell, Chairperson Oakland County Board of Commissioners CITY OF KEEGO HARBOR By: By: .4444, II- r. lce- 2 RESOLUTION # 18-22 TO EXECUTE THE INTERJURISDICTIONAL PROPERTY INSURANCE AGREEMENT BETWEEN THE CITY OF KEEGO HARBOR AND THE COUNTY OF OAKLAND WHEREAS, at a regular meeting of the City of Keego Harbor, City Council, on September 20, 2018 at 7:00 p.m. at the City Hall, 2025 Beechmont, Keego Harbor, Michigan, Oakland County; and WHEREAS, the City Council voted unanimously and approved the Interjurisdictional Property Insurance Agreement between the City of Keego Harbor and the County of Oakland; and, WHEREAS, the current premium for such property insurance coverage is $558 for the coverage period of June 1,2018 to June 1,2019; and, NOW THEREFORE BE IT RESOLVED, that the City Council hereby authorizes and grants binding authority to the Acting City Manager, Mark Gilbert, to execute the approved Interjurisdictional Property Insurance Agreement between the City of Keego Harbor and the County of Oakland on behalf of the City of Keego Harbor; BE IT FURTHER RESOLVED, that an executed copy of said resolution by the Acting City Manager, Mark Gilbert, shall be forwarded to the Oakland County Water Resources Commissioner, located at One Public Works Drive, Waterford, Michigan 48328 to the attention of the Senior Attorney. YEAS: 5 NAYS: 0 ABSENT: 0 RESOLUTION DECLARED ADOPTED CERTIFICATION I, Joel Yoder, duly elected Mayor of the City of Keego Harbor, hereby certify that the foregoing resolution is a true copy of the resolution duly adopted by the City Council of the City of Keego Harbor at a Regular Board Meeting on September 20, 2018 at 7:00 p.m. at the City Office, 2025 Beechmont, Keego Harbor, Michigap-("Th Form DC-001 OAKLAND COUNTY WATER RESOURCES COMMISSIONER MEMORANDUM TO: Commissioner Philip J. Weipert, Chairperson Planning and Building Committee, Board of Commissioners FROM: Kelsey Cooke, WRC Senior Attorney SUBJECT: City of Keego Harbor Interjurisdictional Property Insurance Agreement DATE: October 30, 2018 Working with Oakland County Risk Management and Corporation Counsel, the Water Resources Commissioner conducted a review of property insurance coverage for water and sewer systems that the WRC operates and maintains by contract with certain communities. One of the services that the WRC provides to the communities is facilitation of payment of property insurance premiums from enterprise funds managed by Oakland County's Fiscal Services for the benefit of the communities served by the WRC. These property insurance premiums are paid pursuant to an Oakland County property insurance coverage policy administered through Risk Management. Given the large number of assets included in the program, the County is able to obtain property insurance coverage at a lower cost for these communities' water and sewer system assets than the community would be able to obtain on their own. The City of Keego Harbor, whose sanitary sewer system is operated by the WRC, desires to have the County continue to obtain property insurance coverage for its three sewer lift stations located throughout the City. The City will pay the related premium from its enterprise fund held by the County. In order to continue this coverage, on September 20, 2018, the City signed an interjurisdictional property insurance agreement specifying that it will be responsible for all costs of insurance while consenting to the County obtaining this coverage. Any premium, self-insured retention or deductible will be charged as a system cost to the City of Keego Harbor's enterprise fund held by the County on behalf of the City. Requested Committee Action: Recommend adoption of the attached Resolution to the Board of Commissioners. Contact: Kelsey Cooke cookek@oakgov.com 248-452-2013 OAKLAND COUNTY WATER RESOURCES COMMISSIONER Page 1 of 1 Rev.: 11/05/08 Resolution #18392 November 14, 2018 The Chairperson referred the resolution to the Finance Committee. There were no objections.