HomeMy WebLinkAboutResolutions - 2020.04.29 - 33133MISCELLANEOUS RESOLUTION #20120 April 29, 2020
BY: Commissioner David T. Woodward, Chairperson, Emergency Operations and Oversight Committee
IN RE: WATER RESOURCES COMMISSIONER — RESOLUTION TO AUTHORIZE ADVANCE FROM
LONG-TERM REVOLVING FUND TO THE VILLAGE OF LAKE ORION FOR REPLACEMENT OF ITS
SUPERVISORY CONTROL AND DATA ACQUISITION (SCADA) SYSTEM
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the Village's Sewage Disposal System is served by 16 sanitary sewer lift stations throughout
the Village; and
WHEREAS each lift station is connected to a series of Supervisory Control and Data Acquisition (SCADA)
units which provide critical "real time" information about the status and operation of each lift station; and
WHEREAS the existing SCADA system is a complex network of radios, servers, and computers utilized to
monitor the operations of the sanitary sewer system; and
WHEREAS the SCADA system is designed to provide site-specific alarms to Oakland County's Safety
Dispatch, which is staffed at all times, 24 -hours per day, seven days per week; and
WHEREAS the existing SCADA system is more than 20 years old having been installed during the 1990s;
and
WHEREAS the existing SCADA system is dependent on outdated equipment and technology that is no
longer supported by the manufacturer; and
WHEREAS the Village's existing SCADA system will be decommissioned in October 2020 and replaced
with the new system identical to systems that have been installed in all of the other Oakland County
municipalities where the SCADA systems are operated and maintained by the Oakland County Water
Resources Commissioner's office; and
WHEREAS the Village's existing SCADA system must be upgraded to allow uninterrupted and continuing
service to its residents; and
WHEREAS the cost of upgrading the system is estimated to be $350,800; and
WHEREAS the Village of Lake Orion desires to borrow $300,000 from Oakland County's Long -Term
Revolving Fund; and
WHEREAS Miscellaneous Resolution No. 02019 authorized that monies be made available for loans to
local units for amounts up to $150,000 and exception is being requested to authorize a loan to the Village
of Lake Orion for the replacement of its SCADA System in an amount not to exceed $300,000; and
WHEREAS Miscellaneous Resolution No. 89276 states that an interest rate no less than the prevailing six-
month Treasury Bill rate should be charged. The six-month Treasury Bill rate is quite a bit lower than the
average interest rate from the Treasurer's pooled investments and therefore the rate to be charged will be
the last published Treasurer's pooled investment average monthly rate for the month of February 2020 is
1.784 percent; and
WHEREAS the loan will be repaid over alive -year period with funds generated from rates paid by customers
of the Village of Lake Orion sewage disposal system; and
WHEREAS funding is currently available in the Long -Term Revolving Fund to issue a loan in the not to
exceed amount of $300,000 to the Village of Lake Orion.
NOW THEREFORE BE IT RESOLVED that the Board of Commissioners of the County of Oakland,
Michigan, as follows:
1. The Board hereby authorizes the advance from the County's Long -Term Revolving Fund to the
Village of Lake Orion in an amount not to exceed $300,000 to pay the costs of replacement of
its SCADA system, such advance to be repaid by the Village in annual principal installments
over a period not to exceed five years from the date of the advance with interest on the unpaid
balance from time to time as a rate to be determined by the Chairperson of the Board and
County Clerk which determination shall be evidenced by their signatures on the hereinafter
described contract.
2. The advance shall be repaid from the revenue of rates assessed against customers of the
Village's sewage disposal system and shall be further secured by the full faith and credit of the
Village. The Village may prepay principal installments in whole or in part on any date without
penalty.
EMERGENCY OPERATIONS AND OVERSIGHT COMMITTEE VOTE:
Motion carried unanimously on a roll call vote.
3. The Chairperson of the Board and the County Clerk are hereby authorized to execute and
deliver a contract with the Village for the advance of money by the County and repayment by
the Village as described in this resolution, and such contract is hereby approved. The contract
may be executed in counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.
4. The contract shall be approved by the County Department of Corporation Counsel prior to its
effectiveness.
5. All resolutions and parts of resolutions insofar as they conflict with the provisions of this
resolution are rescinded.
BE IT FURTHER RESOLVED that no budget amendment is required.
Chairperson, on behalf of the Emergency Operations and Oversig mmittee, I m the ad tion of the
foregoing resolution.
J
Commissioner David T. Woodward, District 19
Chairperson, Emergency Operations and
Oversight Committee
CONTRACT FOR ADVANCEMENT OF FUNDS
THIS CONTRACT FOR ADVANCEMENT OF FUNDS (hereinafter the "Contract"),
dated as of the day of 2020, is between the COUNTY OF OAKLAND,
a Michigan constitutional corporation ("County"), whose address is 1200 N. Telegraph, Pontiac,
Michigan 48341 and the VILLAGE OF LAKE ORION, a Michigan municipal corporation, whose
address is 21 East Church Street, Lake Orion, Michigan 48362 ("Village"). In this Agreement,
either the County and/or the Village may also be referred to individually as a 'Party" or jointly as
"Parties."
Recitals:
WHEREAS the Village's Sewage Disposal System is served by 16 sanitary sewer lift
stations throughout the Village; and
WHEREAS each lift station is connected to a series of Supervisory Control and Data
Acquisition (SCADA) units which provide critical "real time" information about the status and
operation of each lift station; and
WHEREAS the existing SCADA system is a complex network of radios, servers, and
computers utilized to monitor the operations of the sanitary sewer system; and
WHEREAS the SCADA system is designed to provide site-specific alarms to Oakland
County's Safety Dispatch, which is staffed at all times, 24 -hours per day, seven days per week;
and
WHEREAS the existing SCADA system is more than 20 years old having been installed
during the 1990s; and
WHEREAS the Village intends to undertake a Project to replace its existing SCADA
system which has been determined to be necessary and conducive to public health, convenience
and welfare and necessary to the protection of the public health in the Village; and
WHEREAS the existing SCADA system is dependent on outdated equipment and
technology that is no longer supported by the manufacturer; and
WHEREAS the Village's existing SCADA system will be decommissioned in October
2020 and replaced with the new system identical to systems that have been installed in all of the
other Oakland County municipalities where the SCADA systems are operated and maintained by
the Oakland County Water Resources Commissioner's office; and
WHEREAS the Village's existing SCADA system must be upgraded to allow
uninterrupted and continuing service to its residents; and
WHEREAS the cost of upgrading the system is estimated to be $350,800.00; and
WHEREAS the Village of Lake Orion desires to borrow $300,000.00 from Oakland
County's Long -Term Revolving Fund; and
WHEREAS pursuant to Miscellaneous Resolution #92252, the Board of Commissioners
of the County (the "Board") established a Long -Term Revolving Fund for the purpose of providing
financing for specific capital projects as approved by the Board with the funds advanced being
recovered through special assessments, or contracts with municipalities or drainage districts; and
WHEREAS in order for the Village to replace its existing SCADA system in the most
efficient manner and at the lowest possible cost, the parties hereto have determined that the County
shall advance $300,000.00 from the County's Long -Term Revolving Fund to the Village to pay
costs of the Project, such advance to be repaid to the County with interest as set for this contract;
and
WHEREAS the advance will be repaid by the Village from the rates collected by the
Village and will be further secured by the full faith and credit of the Village.
NOW, THEREFORE, the parties hereto agree as follows:
1. Advance of Countv Funds. The County shall advance $300,000.00 to the Village on
the day of , 2020, or such earlier date as determined by the
County Water Resources Commissioner, to finance the Project. The Village shall apply
such money to pay for costs of constructing the Project in accordance with applicable
proceedings for the Project.
2. Renavment of Advance by the Villaee. The Village shall repay the advance to the
County in the principal amount and on the dates set forth in Exhibit A attached hereto,
together with interest due and payable on each principal payment date at the rate of
percent per annum on the unpaid principal balance; provided however, that all
unpaid principal and interest thereon shall be due and payable on the day of
,202—.
3. Nature of Villaee Oblieation. The Village agrees to pay the amounts required pursuant
to paragraph 2 above from the rates assessed, and the Village hereby pledges the rates
for that purpose. In addition, the Village pledges its full faith and credit to the
repayment of the advance in the event that the rates collected are insufficient. The
Village's obligation to make payments shall be absolute and unconditional and shall
not be subject to any abatement reduction, setoff, defense, counterclaim, or recoupment
for any reason whatsoever, including without limitation, abatements or reductions due
to any present or future claims of the Village against the County. This Contract shall
not terminate, nor shall the obligation of the Village be affected by reason of any defect
in or damage to or destruction of all or any part of the Project from whatever cause, it
being the intention of the parties hereto that the foregoing payments payable hereunder
shall be payable in all events.
4. Lawsuits and Claims. The parties hereto agree that the costs and expenses of any
lawsuits or Claims (as hereinafter defined) arising directly or indirectly out of this
Contract or the construction or financing of the Project, to the extent that such costs
and expenses are chargeable against the County or the Village, shall be deemed to
constitute a part of the cost of the Project and shall be paid by the Village in the same
manner as other costs of the Project. In this Contract, 'claims" means any alleged
losses, claims, complaints, demands for relief, or damages, liability, penalties, costs,
and expenses, including, but not limited to, reimbursement for reasonable attorney fees,
witness fees, court costs, investigation expenses, litigation expenses, amounts paid in
settlement and/or other amounts or liabilities of any kind which are imposed on,
incurred by, or assessed against the County or the Village, or for which the County or
the Village may become legally and/or contractually obligated to pay or defend against,
whether direct, indirect or consequential, whether based upon any alleged violation of
the federal or State of Michigan constitutions, any federal or State of Michigan
common law, whether any such claims are brought in law or equity, tort, contract, or
otherwise, and/or whether commenced or threatened.
2
5. Pavment of Principal. The Village may prepay principal installments in whole or in
part on any date without penalty. All prepayments shall be applied in such order of
principal installments as determined by the Village.
6. Survival of Provisions. If any provision of the Contract or the application to any person
or circumstance is, to any extent, judicially determined to be invalid or unenforceable,
the remainder of this 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 alter this
Contract or make execution impractical.
7. Effectiveness and Counterparts. This Contract shall become effective upon its
execution by each of the parties hereto. This Contract may be executed in one or more
counterparts, which together shall constitute one and the same Contract.
IN WITNESS WHEREOF, the County and the Village have caused this Contract to be
executed and delivered by the undersigned, being duty authorized by their respective
governing bodies.
COUNTY OF OAKLAND
Its Chairperson, Board of Commissioners
�C
Its Cleric
VILLAGE OF LAKE ORION
By:
Its President
And By:
Its Clerk
3
Form DC -001
OAKLAND COUNTY MEMORANDUM
WATER RESOURCES COMMISSIONER
TO: Commissioner David Woodward, Chairperson, Emergency Operations and
Oversight Committee
FROM: John Basch, Senior Attorney
SUBJECT: Advance from the Long -Term Revolving Fund to the Village of Lake Orion
DATE: April 6, 2020
The Village of Lake Orion would like to borrow $300,000.00 from Oakland County's Long -Term
Revolving Fund to help fund the upgrade of its obsolete Supervisory Control and Data Acquisition
(SCADA) system.
The Village's existing SCADA system, a complex network of radios, servers, and computers which
make up the Village's more than 20 -year-old system, is dependent on outdated equipment and
technology that is no longer supported by the manufacturer. The Village's existing SCADA system
must be upgraded to allow continuing and uninterrupted service to Lake Orion residents.
Lake Orion's sewage disposal system, which is operated and maintained by the Oakland County
Water Resources Commissioner's office, utilizes 16 sanitary lift stations. Each lift station is connected
to a series of SCADA electronic panels which provide critical "real time" information about the status
and operation of each lift station.
Cost of upgrading the Village's existing SCADA system is estimated to be $350,800.00. To help fund
this critically important project, the Village desires to borrow $300,000.00 from Oakland County's
Long -Term Revolving Fund at a rate set by the County to be repaid over a five-year period from funds
generated from rates paid by users of the sewage disposal system and further secured by the full
faith and credit of the Village.
Requested Action: Authorize a loan of $300,000.00 from Oakland County's Long -Term
Revolving Fund to the Village of Lake Orion to help fund the upgrade of the Village's obsolete
SCADA system at an interest rate determined by Oakland County to be repaid over a five-year
period from funds generated from rates paid by users of the Village's sewage disposal system
and further secured by the full faith and credit of the Village.
OAKLAND COUNTY WATER RESOURCES COMMISSIONER
Page 1 of 1 Rev: 02/12/2018
EXHIBIT A
Oakland County, Michigan
Village of Lake Orion - SCADA System Replacement - Loan from The Long -Term Revolving Fund
Loan Repayment Schedule
Loan Amount $300,000.00 Compounded Quarterly Date of Issuance 1 -May -2020
Interest Rate 1.784% County Resolution #
Due Date I Payment I Principal I Interest I Principal Balance
$300,000.00
1 -Jul -2020
15,892.00
15,000.00
892.00
285,000.00
1 -Oct -2020
16,271.10
15,000.00
1,271.10
270,000.00
1 -Jan -2021
16,204.20
15,000.00
1,204.20
255,000.00
1 -Apr -2021
16,137.30
15,000.00
1,137.30
240,000.00
1 -Jul -2021
16,070.40
15,000.00
1,070.40
225,000.00
1 -Oct -2021
16,003.50
15,000.00
1,003.50
210,000.00
1 -Jan -2022
15,936.60
15,000.00
936.60
195,000.00
1 -Apr -2022
15,869.70
15,000.00
869.70
180,000.00
1 -Jul -2022
15,802.80
15,000.00
802.80
165,000.00
1 -Oct -2022
15,735.90
15,000.00
735.90
150,000.00
1 -Jan -2023
15,669.00
15,000.00
669.00
135,000.00
1 -Apr -2023
15,602.10
15,000.00
602.10
120,000.00
1 -Jul -2023
15,535.20
15,000.00
535.20
105,000.00
1 -Oct -2023
15,468.30
15,000.00
468.30
90,000.00
1 -Jan -2024
15,401.40
15,000.00
401.40
75,000.00
1 -Apr -2024
15,334.50
15,000.00
334.50
60,000.00
1 -Jul -2024
15,267.60
15,000.00
267.60
45,000.00
1 -Oct -2024
15,200.70
15,000.00
200.70
30,000.00
1 -Jan -2025
15,133.80
15, 000.00
133.80
15,000.00
1 -Apr -2025
15,066.90
15,000.00
66.90
-
Total
313,603.00
300,000.00
13,603.00
Interest: 10100-9010101-182200-630994
Principal: 46200-6010101-155010-153100-40210
J:\BOC\General\20 Committee Agenda Items\04 APRIL'20\WRC EXHIBIT A - Vlg Lake Orion - SCADA
Replacement Long Term Rev Fund Payment Schedule
Resolution #20120 April 29, 2020
Moved by Taub seconded by Jackson the resolutions on the Consent Agenda be adopted (with
accompanying reports being accepted).
Discussion followed.
AYES: Hoffman, Jackson, Kochenderfer, Kowall, Kuhn, Long, Luebs, Markham, McGillivray,
Middleton, Miller, Nelson, Powell, Quarles, Spisz, Taub, Weipert, Woodward, Zack, Gershenson,
Gingell. (21)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions on the Consent Agenda were adopted (with
accompanying reports being accepted).
I HEREBY APPROVE THIS RESOLUTION
CHIEF DEPUTY COUNTY EXECUTIVE
ACTING PURSUANT TO MCL 45.559A (7)
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown, 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 April 29, 2020,
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 Circuit Court at Pontiac,
Michigan this 29th day of April, 2020. p
Lisa Brown, Oakland County