HomeMy WebLinkAboutResolutions - 1998.07.16 - 25373July 16, 1998
MISCELLANEOUS RESOLUTION # 98171
BY: Charles E. Palmer, County Commissioner, District #16
IN RE: THE NORTH ARM RELIEF DRAIN DRAINAGE DISTRICT; EXECUTION OF THE
INTERLOCAL AGREEMENT; EXECUTION OF CONTRACT TO ADVANCE AND REPAY FUNDS
NOT TO EXCEED THREE MILLION TWO HUNDRED EIGHTY-SIX THOUSAND FIVE HUNDRED
TWENTY-EIGHT ($3,286,528.00) DOLLARS; AUTHORIZATION FOR COUNTY OF OAKLAND TO
PAY ITS ASSESSMENT FOR COUNTY ROADS LOCATED WITHIN 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, at the present time, the Drainage District is not able to issue bonds to finance
construction of the North Arm Relief Drain because of pending 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 [SRF1
Program at a favorable interest rate of 2-1/4%; and
WHEREAS, in order to finance and construct the North Arm Relief Drain, all public agencies and
corporations to be assessed the costs for said Drain, except the City of Clawson, have been requested to
execute the attached Interlocal Agreement; and
WHEREAS, at the Village of Beverly Hills and the cities of Birmingham, Madison Heights, Royal
Oak, Southfield and Troy have or will have executed the attached Interlocal Agreement; and,
WHEREAS, pursuant to Chapter 20 of the Drain Code, specifically Section 479 [MCL 280.479],
the County of Oakland is authorized to advance moneys for the payment of any part of the cost of the
drainage project constructed under Chapter 20 of the Drain Code of 1956 and be reimbursed by the
Drainage District with interest when funds are available therefor; and
WHEREAS, pursuant to Chapter 20 of the Drain Code of 1956, Section 479, the County of
Oakland is willing to advance moneys for the estimated share of the North Arm Relief Drain to be assessed
against the City of Clawson by the Drainage District, in an amount not to exceed $3,286,528, to the
Drainage District, and be reimbursed by the Drainage District in accordance with the terms of the attached
Contract between the Drainage District and the County of Oakland [Appendix 3 of the Interlocal
Agreement]; and
WHEREAS, the County of Oakland has been assessed on account of the County roads located
within the Drainage District $180,275.20; and
WHEREAS, the citizens of Clawson should not be penalized for following what their City Council
believes is their Constitutional right.
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.
Chairperson, I move the adoption of the foregoi
District #16
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Resolution #98171 July 16, 1998
The Chairperson referred the resolution to the Planning and Building
Committee and the Finance Committee. There were no objections.