HomeMy WebLinkAboutResolutions - 1998.08.06 - 25288G COMMITTEE PIANNING
August 6, 1998 •
MISCELLANEOUS RESOLUTION # 98176 •
BY: PLANNING & BUILDING COMMITTEE - Charles E. Palmer, Chairperson
IN RE: THE NORTH ARM RELIEF DRAIN DRAINAGE DISTRICT.
To The Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS, pursuant to Act 40 of the Public Acts of 1956, as amended [hereinafter referred to
as the Drain Code], the Cities of Birmingham and Royal Oak have petitioned the Drain Commissioner's
office to construct the North Arm Relief Drain to reduce basement flooding; and
WHEREAS, pursuant to Chapter 20 of the Drain Code, the Drainage Board, having determined
that a drainage project is necessary for the public health, and further determined that drainage facilities be
located, established and constructed with the costs thereof to be assessed wholly against the public
corporations [as defined by the Drain Code] benefiting from said project; and
WHEREAS, there is an urgent need for said drainage facilities to alleviate flooding thereby
promoting the health and welfare of the residents located within the North Arm Relief Drain Drainage
District [hereinafter referred to as the Drainage District]; and
WHEREAS, the total project costs for the North Arm Relief Drain is estimated to be $17,920,000;
and
WHEREAS, pursuant to Chapter 20 of the Drain Code, by final order of apportionment issued by
the Drainage Board, the public corporations to be assessed for said Drain include the Cities of Birmingham,
Clawson, Madison Heights, Royal Oak, Southfield, and Troy; the Village of Beverly Hills; the County of
Oakland; and the State of Michigan; and
WHEREAS, until the present time, the Drainage District has not been able to issue bonds to
finance construction of the North Arm Relief Drain because of litigation instituted by the City of Clawson,
a public corporation to be assessed with a portion of the total project cost for the Drain; and
WHEREAS, in order to proceed with the construction of the Drain, the City of Royal Oak has
agreed to sell revenue bonds to the Michigan Bond Authority, as a part of the State Revolving Funds [SRF]
Program at a favorable interest rate of 2-1/4%; and
WHEREAS, the 2-1/4% favorable interest rate bonds from the State Revolving Fund (SRF)
includes the City of Clawson's portion of the total assessment to construct the North Arm Relief Drain; and
WHEREAS, the City of Clawson has indicated their willingness to dismiss and settle all litigation
pursuant to this contract (letter attached); and
WHEREAS, the necessary documents for the issuance of the (SRF) 2-1/4% loan must be
accomplished prior to August 17, 1998.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners urges
the City of Clawson and the remaining members of the North Arm Drainage District to reach a settlement
of their disagreement over the allocation costs for the North Arm Drainage District so that the City of
Clawson's citizens may be benefited by participating in the 2-1/4% bonds being issued as a part of the
State's Revolving Fund.
BE IT FURTHER RESOLVED that the Oakland County Drain Commissioner and Oakland County
Corporation Counsel involve themselves in resolving the remaining issues so all the people of the North
Arm Drain District may be benefited.
BE IT FURTHER RESOLVED that upon settlement of the litigation between the City of Clawson
and the Drain Commissioner's Office and the communities of the North Arm Drainage District that the
project be turned over entirely to the Drain Commissioner to be handled by his office.
Chairperson, I move the adoption of the foregoing resolution.
Planning and Building Committee Vote:
Motion carried unanimously on a roll call vote.
HOWARD & HOWARD
ATTORNEYS
Established 1869
Ps,
The Pinehurst Office Center
Suite ;01
1400 North Woodward Axenue
Bloomfield Hi11,, N(11 48304-2856
Telephone n 2481 645,1483
Fax ( 248 645-1568
Jon H. Kingsepp
The s,tiehigan Building
Suite 200
100 Portage Street
Kalamazoo. MI 44007-480:1
Telephone (6161382-1483
Fax 616i 382-1568
The Phoenix Building
Suite
222 WaNhing.ion Square, North
Lan-one. MI 48933-1817
---
Telephone 17t 485-L483
Fax (517( 485-1568
The Creve Coeur Building
Suite 200
321 Liberty Street
Peoria, IL 61602-1403
Telephone (3(19) 672-1483
Fax (309) 672.1568
Bloomfield Hills °Mee Direct Dial: (248) 723-0319
July 24, 1998
Via facsimile and U.S. mail
Charles Semchena, Jr.
City of Royal Oak
P. O. Box 64
Royal Oak, MI 48068-0064
Timothy J. Currier, Esq.
200 E. Long Lake Road
Suite 110
Bloomfield Hills, MI 48304-2361
John J. Martin Ill, Esq.
Assistant City Attorney
500 W. Big Beaver Road
Troy, MI 48084-5254
John E. Beras, Esq.
26000 Evergreen Road
Southfield, MI 48037
Larry H. Sherman, Esq.
30600 Telegraph Road
Suite 2345
Bingham Farms, MI 480254532
Thomas J. Ryan, Esq.
2055 Orchard Lake Road
Sylvan Lake, MI 48320
RE: Twelve Towns SOCSDS Retention Treatment Facility;
North Arm Relief Drain
Gentlemen:
In an attempt to resolve the present litigation involving the City of Clawson and the
Oakland County Drain Commissioner regarding the Chapter 20 apportionment and assessment,
I have been authorized to submit the following proposal for consideration as a final offer by the
City of Clawson.
Clawson is agreeable to dismissing the present matter in the Michigan Court of Appeals
and the pending matter before Judge Howard, Oakland County Circuit Court. In return,
Clawson will be allowed to participate in the SRF fmancing available to all other participants
without any precondition. In addition, the City of Royal Oak and the Oakland County Drain
Commissioner will surrender, release and waive any claim for the payment of legal fees and
Page 2
July 24, 1998
services against the City of Clawson as outlined in the attached letter from Mr. Semchena dated
July 21, 1998. Clawson will agree to the regular method in which the Drain Commissioner's
fees are assessed.
I am informed that if the parties reach a resolution, the necessary documentation to have
the bonds issued through the County of Oakland can be accomplished within the time restraints
that still exist. I have been informed that an outside time limit exists of August 17, 1998,
however, in order to allow counsel an appropriate time in which to prepare the bond
documentation there should be a decision and resolution of these issues before the end of the
month.
It is my assumption that the City of Royal Oak will be considering this proposal at its
meeting of the 27th and hopefully on the 28th I will be able to inform you all that this matter
has been resolved.
Very truly yours,
JHK/tp
cc: George W. Kuhn, Oakland County Drain Commissioner
(via facsimile no. (248) 858-1066 and first class mail)
Sue Ann Douglas, Oakland County Board of Commissioners
(via first class mail)
John McCulloch, Oakland County Board of Commissioners
(via first class mail)
Charles Palmer, Oakland County Board of Commissioners
(via first class mail)
Clawson City Council c/o Leonard Hendricks
(via facsimile and first class mail)
Paul Green, Esq./Kelly A. Allen, Esq.
(via facsimile and first class mail)
b316\clawsonN12town\counsel.724
HOWARD & HOWARD
ATTORNEYS
. 07/ 21 /1998 16:16 2485461542 R.O. C:TY ATTORNel PAGE 01.
July 21, 1998
Jon Kingsepp
Howard & Howard
1400 N. Woodward, #101
The Finehurat Office Center
Bloomfield Hills, MI 48304
RE: North Arm Relief Drain
Dear Mr. Kingsepp:
Based on our conversation this morning you requested an estimate
of legal expenses incurred by the Drainage District of the North
Arm Relief Drain. The following legal expenses are rough estimates
that can more accurately be verified at a later date:
1. $160,000 - Litigation - legal fees for the law firs of
Dickinson Wright regarding the two lawsuits filed by the
City of Clawson against the Drainage District and the
appellate action for the first lawsuit.
2. $ 50,000 - Interlocal - legal fees for interlocal
financing agreements that allowed for the SRF loan
application to be processed and deadlines met in May and
June of 1998.
3. $ j - Other - legal expenses incurred by the cities
to rev ew and approve the interlocal agreements.
4. $ 30,000 - Other - legal expenses for Royal Oak City
Attorney, Charles Semchena.
As I indicated, these are rough estimates. Final billings have not
yet been submitted to the Drainage District. Once they are
received, these estimates can be more accurately verified.
211 Williams Street • P.O. Box 64 Royal Oak, MI 48068-0064 Phone 248-544-8626
marcled °New
R.O. CITY ATTORNEY PAGE 02 ..07/21/1998 16:16 2485461542
Jon Kingsepp
July 21, 1998
Page Two
Please discuss these expenses at your City Commission meeting
tonight and fax a settlement proposal to me tomorrow.
Very truly yours,
Charles Seachena
City Attorney
CS/eh
? %
FISCAL NOTE (MSC. #98176) August 6, 1998
BY: PLANNING AND BUILDING COMMITTEE, CHARLES E. PALMER, CHAIRPERSON
IN RE: THE NORTH ARM RELIEF DRAIN DRAINAGE DISTRICT
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
Pursuant to Rule XII-F of this Board, the Finance Committee has reviewed
the above referenced resolution and finds:
1. The Interlocal Agreement among Oakland County, the North Arm Relief
Drain Drainage District, the State of Michigan, and the six local
municipalities identified in the Interlocal Agreement have entered
into an agreement to permit the immediate construction of the North
Arm Relief Drain project.
2. In order to proceed with the construction of the Drain, this
resolution was proposed to urge the City of Clawson and the
remaining members of the North Arm Drainage District to reach a
settlement of their disagreement over the allocation costs for the
North Arm Drainage District so that the City of Clawson's citizens
may be benefited by participating in the 2-1/4% bonds being issued
as a part of the State's Revolving Fund.
3. The resolution, as proposed, does not result in any financial
implications for Oakland County.
FIN CE COMMIT TE "14:„.177
FINANCE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote with Coleman absent.
Resolution #98176 August 6, 1998
Moved by Palmer supported by Jensen the resolution be adopted.
AYES: Jacobs, Jensen, Johnson, Kaczmar, Kingzett, Law, McCulloch,
McPherson, Millard, Moffitt, Obrecht, Palmer, Schmid, Taub, Wolf, Amos, Coleman,
Dingeldey, Douglas, Garfield, Gregory, Hoffman, Holbert, Huntoon. (24)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lynn D. Allen, 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 August 6, 1998 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 6th day qX August (1.9.8.
D. Allen, County Clerk