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HomeMy WebLinkAboutResolutions - 2004.07.22 - 27519June 17, 2004 REPORT (MISC. #04127) BY: PLANNING & BUILDING COMMITTEE, CHARLES E. PALMER, CHAIRPERSON RE: LAKE IMPROVEMENT BOARD FOR LAKE NEVA — REQUEST FOR $80,000 LOAN FROM LONG TERM REVOLVING FUND FOR AUGMENTATION WELL PROJECT To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: The Planning & Building Committee having reconsidered MR #04127 on June 8, 2004 Reports to the Board with the recommendation the Resolution be adopted Chairperson, on behalf of the Planning & Building Committee, I move the acceptance of the foregoing Report. PLANNING & BUILDING COMMITTEE Planning & Building Committee Vote: Motion carried on unanimous roll call vote with Coulter absent MISCELLANEOUS RESOLUTION # 04127 BY: Commissioner Eileen T, KowaII, District #8 IN RE: LAKE IMPROVEMENT BOARD FOR LAKE NEVA- REQUEST FOR $80,000 LOAN FROM LONG TERM REVOLVING FUND FOR AUGMENTATION WELL PROJECT To the Oakland County Board of Commissioners Chairmen, Ladies and Gentlemen: WHEREAS Lake Neva, is an inland lake located in the Township of White Lake, Oakland County, Michigan; and WHEREAS the Lake Neva Improvement Board following a Public Hearing held on February 24, 2004, approved and confirmed a Special Assessment roll for Lake Neva Augmentation Well for a total cost of $203,840; and WHEREAS the Drain Commissioner, is the county delegated authority under Part 307 of the Michigan Natural Resources and Environmental Protection Act, 1994 P.A. 451, as amended, MCL 324.30701 et seq.; and WHEREAS the Lake Improvement Board for Lake Neva, a public agency established pursuant to Part 309 of the Michigan Natural Resources and Environmental Protection Act, 1994 P.A. 451 ("Part 309"), as amended, MCL 324.30901 et seq., has determined that construction of an augmentation well is necessary in order to properly attain and maintain the legal level for Lake Neva; and WHEREAS Oakland County Board of Commissioners adopted Miscellaneous. Resolution #02019 on February 21, 2002, establishing a Long Term Revolving Fund to assist local units of government to finance water and sewer projects that do not require the issuance of bonds; and WHEREAS Miscellaneous Resolution #02019 provides that each project loan shall not exceed $150,000; and WHEREAS pursuant to Section 30922 of Part 309, the Lake Improvement Board is authorized to borrow money and collect special assessments to defray the costs of any improvement made under Part 309; and WHEREAS Lake Neva Improvement Board, has requested a $80,000 loan from the County's Long Term Revolving Fund to pay for the design and construction of an augmentation well to attain and maintain the legal and normal level of Lake Neva, NOW THEREFORE BE IT RESOLVED, that this Board of Commissioners does hereby authorize the advance of a sum not to exceed $80,000 to the Lake Neva Improvement Board and Special Assessment District from the County Long Term Revolving Fund for the design and construction of an augmentation well for Lake Neva, consistent with prior established policy covering the loan of County funds, with the actual amount of the loan, including applicable interest rate and repayment schedule to be determined and set forth in a contract to be approved at some time in the future by action of this Board of Commissioners. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners authorizes its Chairperson to execute a contract, prepared by Corporation Counsel and consistent with Miscellaneous Resolution #02019, for the repayment of this loan. Chairperson, I move adoption of the foregoing resolution. . Kowall, Commissioner District #6 Ti CONTRACT THIS CONTRACT (hereafter, this "Contract") is made and entered into between the COUNTY OF OAKLAND, a Michigan Constitutional and Municipal Corporation, whose address is 1200 North Telegraph Road, Michigan 48341 (hereafter, the "County"), and LAKE IMPROVEMENT BOARD FOR LAKE NEVA (hereafter, the "Lake I mprovement B oard"). I n this Contract, e ither the County and/or the Lake Board may also be referred to individually as a "Party" or jointly as "Parties." INTRODUCTION WHEREAS, Lake Neva is an inland lake located in the Charter Township of White Lake, Oakland County, Michigan; and, WHEREAS, pursuant to Part 309 of the Michigan Natural Resources and Environmental Protection Act, 1994 P.A. 451, as amended, MCL 324.30901 et seq, a Lake Improvement Board for Lake Neva was established for the purpose of undertaking improvements to Lake Neva; and, WHEREAS the Lake Improvement Board has determined that construction of an augmentation well is necessary in order to properly attain and maintain the legal level for Lake Neva; and, WHEREAS, following a Public Hearing held on February 24, 2004, the Lake Improvement Board approved and confirmed a Special Assessment roll for Lake Neva Augmentation Well for a total cost of $203,840; and WHEREAS, the County Board of Commissioners, pursuant to Miscellaneous Resolution No. 02019 (hereafter MR #02019) on February 21, 2002, established a Long Term Revolving Fund to advance funding for lake level control projects for the protection of the health safety and welfare of the public, to protect the natural resources of the State, and to protect the value of properties around lakes; and, WHEREAS pursuant to Section 30922 of Part 309, the Lake Improvement Board is authorized to borrow money and collect special assessments to defray the costs of any improvement made under Part 309; and WHEREAS Lake Neva Lake Improvement Board, has requested a $80,000 loan from the County's Long Term Revolving Fund to pay for the design and construction of an a ugmentation well to attain and maintain the I egal a nd normal level of Lake Neva. WHEREAS, pursuant to Miscellaneous Resolution No. 04127 (hereinafter "MR #04127"), the County Board of Commissioners agrees to advance an amount not to exceed $80,000 to the Lake Neva Lake Improvement Board upon the terms and conditions set forth in this Contract. NOW, THEREFORE, pursuant to MR #02019 and MR #04127, which are incorporated herein, and in consideration of the mutual promises, representations, a nd agreements s et forth i n this C ontract, a nd for other g ood 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 $80,000 to the Lake Improvement Board in connection with an augmentation well 2 project that is has been determined to be necessary in order to attain and maintain the legal level for Lake Neva. 2. The amount advanced by the County shall be applied to the allowable costs as authorized for the project as approved by the Lake Improvement Board in accordance with Part 309. 3. The Lake Improvement Board shall reimburse the County for all funds advanced including interest, in accordance with the attached Loan Repayment Schedule, with the special assessments levied and collected from the properties within the special assessment district established and approved by the Lake Improvement Board in accordance with the procedures set forth in Part 309. 4. Principal and interest payments are due March 1, with the first payment due on March 1, 2005 and last payment due March 1, 2006, in accordance with the attached repayment schedule. The annual interest rate is 1.73%, 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 Lake Improvement Board shall proceed in accordance with Section 30919 (MCL 324.30919) to make additional special assessments in order to fulfill its obligations under this contract. 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 3 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 alter the 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 the Parties, and by doing so legally obligate and bind the Parties to the terms and conditions of this Contract. IN WITNESS WHEREOF, 4.3z)10//g- Z. E-1.1--/Li1r, Chairperson of the Lake Improvement Board for Lake Neva, hereby accepts and binds the lake Improvement Board and its Special Assessment District to the terms and conditions of this Contract. LAKE IMPROVEMENT BOARD FOR LAKE NEVA By )6(en4m,.‘ 130..0 g L. E LLit, Chairperson DATE: 1- WITNESSED: DATE: S e/61, ZL1 2t.X.1/ 4 G. William Caddell, County of Oakland Clerk/Register of Deeds DATE: 607/t,y IN WITNESS WHEREOF, Thomas A. Law, 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 the Oakland County, and hereby accepts and binds the Oakland County to the terms and conditions of this Contract. COUNTY OF OAKLAND loiAA1(446 - T mas A. Law, Chairperson DATE: cl /sock 5 July 22, 2004 FISCAL NOTE (M.R. #04127) BY: FINANCE COMMITTEE, CHUCK MOSS, CHAIRPERSON IN RE: LAKE IMPROVEMENT BOARD FOR LAKE NEVA-REQUEST FOR $80,000 LOAN FROM LONG TERM REVOLVING FUND FOR AUGMENTATION WELL PROJECT TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed the above referenced resolution and finds: 1. The Neva Lake Improvement Board is requesting a $80,000 loan from the Long-Term Revolving to be used for the design and construction of an augmentation well in order to properly attain and maintain the legal level for Neva Lake. 2. Miscellaneous Resolution No. 02019 authorized that monies be made available for loans to local units for amounts up to $150,000 for each project requested. 3. A contract between Oakland County and the Neva Lake Improvement Board is yet to be completed. The contract is to be reviewed by Corporation Counsel and is to contain the applicable interest rate and repayment schedule consistent with the County's loan policy. 4. The interest rate to be included in the contract is to be based on the prevailing six-month Treasury Bill rate at the time the contract is executed. 5. The augmentation well project will be managed by the Neva Lake Improvement Board and full repayment of the loan, with applicable interest, will come from the 5 year special assessment roll confirmed 2/24/2004 for this project. 6. Funding is currently available in the Long-Term Revolving Fund to issue a loan in the amount of $80,000 to the Neva Lake Improvement Board. 7. Management and Budget will not disburse funds until the contract is reviewed by Corporation Counsel and fully executed by the Chairperson of the Board of Commissioners. 8. No budget amendment is required. FINANCE COMMITTEE /( Finance Committee Vote: Motion carried on unanimous roll call vote Resolution #04127 May 20, 2004 The Chairperson referred the resolution to the Planning and Building Committee. There were no objections. 1.• I t, Resolution #04127 June 17, 2004 The Chairperson referred the resolution to the Finance Committee. There were no objections. G. William Caddell, County Clerk Resolution #04127 July 22, 2004 Moved by Palmer supported by KowaII the resolution be adopted. Moved by Palmer supported by Wilson the Planning and Building Committee Report be accepted. A sufficient majority having voted therefore, the report was accepted. Moved by KowaII supported by Bullard the resolution be amended in the NOW THEREFORE BE IT RESOLVED paragraph to put a period after the word schedule and strike the language "to be determined and set forth in a contract to be approved at some time in the future by action of this Board of Commissioners". A sufficient majority having voted therefore, the amendment carried. Vote on resolution, as amended: AYES: Jamian, Knollenberg, KowaII, Law, Long, McMillin, Middleton, Moffitt, Moss, Palmer, Patterson, Potter, Rogers, Scott, Suarez, Webster, Wilson, Zack, Bullard, Coleman, Coulter, Douglas, Gregory, Hatchett. (24) NAYS: None. (0) A sufficient majority having voted therefore, the resolution, as amended, was adopted. Y APPROVE TIE F01601116 1ES1JWTA1 7/2- ?/OL( STATE OF MICHIGAN) COUNTY OF OAKLAND) I, G. William Caddell, 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 July 22, 2004 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 22nd day of July, 2004. Move to Amend in the NOW THEREFORE BE IT RESOLVED to strike the language "to be determined and set forth in a contract to be approved at some time in the future by action of this Board of Commissioners". ,ee J