HomeMy WebLinkAboutResolutions - 2020.05.13 - 33215REPORT (MISC. #20145)
May 13, 2020
BY: Commissioner Helaine Zack, Chairperson, Finance and Infrastructure Committee
IN RE: WATER RESOURCES COMMISSIONER — OAKLAND-MACOMB INTERCEPTOR DRAIN
DRAINAGE DISTRICT FULL FAITH AND CREDIT RESOLUTION
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
The Finance and Infrastructure Committee, having reviewed the above -referenced resolution on May 6,
2020, reports with the recommendation that the resolution be adopted.
Chairperson, on behalf of the Finance and Infrastructure Committee, I move the acceptance of the
foregoing report.
/ti� �11 • 3�
Commissioner Helaine Za District #18
Chairperson, Finance Committee
FINANCE AND INFRASTRUCTURE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote with Markham absent.
MISCELLANEOUS RESOLUTION #20xxx May 13, 2020
BY: Commissioner Penny Luebs, Chairperson, Health, Safety and Human Services Committee
IN RE: WATER RESOURCES COMMISSIONER — OAKLAND-MACOMB INTERCEPTOR DRAIN
DRAINAGE DISTRICT FULL FAITH AND CREDIT RESOLUTION
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS pursuant to petitions filed by the City of Sterling Heights, Macomb County, and the Charter
Township of Waterford, Oakland County (collectively, the "Petitions') requesting the Maintenance,
Extension and Improvement of the Oakland -Macomb Interceptor Drain (the "Drain") pursuant to Section
535 of the Michigan Drain Code of 1956 ("Drain Code'), as amended, MCL 280.535 and filed with the
Director of the Michigan Department of Agriculture on December 20, 2018, proceedings have been
carried out by the Augmented Drainage Board and Drainage Board for the Oakland -Macomb Interceptor
Drain Drainage District (the "Drainage District') to acquire, finance, construct, improve, and replace
certain wastewater facilities (the "Project"), and said Project having been determined to be necessary for
the public health; and
WHEREAS pursuant to the authorization provided in Chapter 21 of the Drain Code, the Drainage Board
for the Drainage District proposes that the Drainage District issue its Drain Bonds, Series 2020 (the "Drain
Bonds") in the aggregate principal amount not to exceed $99,500,000 to finance all or part of the cost of
the design and construction of improvements, the costs relating to the Project, and the costs of issuance
of such bonds as described on Attachment I; and
WHEREAS such bonds will be payable in part from the collection of special assessments against public
corporations located in Oakland and Macomb Counties and in the Drainage District, said special
assessments to be duly confirmed as provided in the Drain Code; and
WHEREAS pursuant to a Final Order of Apportionment dated August 21, 2019, adopted by the Drainage
Board for the Drainage District, the estimated project cost of $99,500,000 will have 33.10% apportioned
to Public Corporations within Oakland County, and 66.90% to Public Corporations within Macomb County
as indicated in the Chart below:
Public Coroorations:
City of Auburn Hills
4.9705%
4,945,647.50
Independence Township (includes Village of Clarkston
2.4213%
2,409,193.50
City of Lake Angelus
0.0185%
18,407.50
Village of Lake Orion
0,3409%
339,195.50
Oakland Township
1.0393%
1,034,103.50
Orion Township
3.1494%
3,133,653.00
Oxford Township
1.2468%
1,240,566.00
Village of Oxford
0.5928%
589,836.00
City of Rochester
1.9526%
1,942,837.00
City of Rochester Hills
8.1106%
8,070,047.00
Waterford Township
7.6159%
7,577,820.50
West Bloomfield Township
1.6414%
1.633.193.00
Total: Oakland County 33.1000% 32.934.500.00
HEALTH, SAFETY AND HUMAN SERVICES COMMITTEE VOTE:
Motion carried unanimously on a roll call vote.
Chesterfield Township
4.7983%
4,774,308.50
Clinton Township
14.1538%
14,083,031.00
City of Fraser
2.7237%
2,710,081.50
Harrison Township
4.1556%
4,134,822.00
Lenox Township
0.6353%
632,123.50
Macomb Township
9.4344%
9,387,228.00
Village of New Haven
0.5475%
544,762.50
Shelby Township
6.6490%
6,615,755.00
City of Sterling Heights
20.8081%
20,704,059.50
City of Utica
1.1036%
1,098,082.00
Washington Township
1.8907%
1.881 246.50
Total — Macomb County 66.9000% 66.565 500.00
WHEREAS the statutory limit for County debt is $7,671,600,230 (10% of State Equalized Value). As of
April 23, 2020, the total pledged debt is $578,243,540 or approximately 0.75375% of the S.E.V.; and
WHEREAS Section 526 of Act 40, Public Acts of Michigan, 1956, as amended (the "Drain Code"),
authorizes a county to pledge its full faith and credit for the payment of obligations issued under Chapter
21 of the Drain Code, if the county board of commissioners has adopted a resolution by two-thirds (2/3)
vote of its members -elect to that effect; and
WHEREAS the Drain Bonds are to be designated as the Oakland -Macomb Interceptor Drain Drainage
District Bonds (Limited Tax General Obligation), Series 2020, will be dated as of such date, will bear
interest at such rates not to exceed 6%, will be in the aggregate principal amount not to exceed
$99,500,000, will mature in such years and principal amounts, and will be subject to redemption prior to
maturity, as shall be determined by resolution of the Drainage Board; and
WHEREAS said Project is immediately necessary to protect and preserve the public health, and it is in
the best interest of Oakland County that the Drain Bonds be sold and secured by a pledge of the full faith
and credit of Oakland County, as authorized by Section 526 of the Drain Code; and
WHEREAS the Board of Commissioners of Macomb County is expected to adopt a similar resolution
pledging its full faith and credit for the payment of the Drain Bonds.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners, pursuant to
the authorization provided in Section 526 of the Drain Code, by a majority vote of at least two-thirds (2/3)
of its members -elect, does hereby irrevocably pledge the full faith and credit of Oakland County for the
prompt payment of the principal of and interest on that portion of the Drain Bonds not to exceed
$32,934,500 and representing 33.10% apportioned to Public Corporations within Oakland County (which
said total amount of the Drain Bonds shall not exceed the aggregate amount of $99,500,000), and does
agree that in the event any Public Corporations in Oakland County shall fail or neglect to account to the
Oakland County Treasurer ("County Treasurer') for the amount of any special assessment installment
and interest (in anticipation of which the bonds are issued) when due, then the amount thereof shall be
advanced from the funds of Oakland County, and the County Treasurer is directed to make such
advancement to the extent necessary.
BE IT FURTHER RESOLVED that in the event that, pursuant to said pledge of its full faith and credit
Oakland County advances out of Oakland County funds all or any part of the principal and interest due on
the bonds, it shall be the duty of the County Treasurer, for and on behalf of Oakland County, to take all
actions and proceedings and pursue all remedies permitted or authorized by law for the reimbursement of
such sums so paid.
BE IT FURTHER RESOLVED that the County Treasurer or the Drainage District's financial consultant,
Municipal Financial Consultants, is authorized to file with the Department of Treasury of the State of
Michigan on behalf of the County an Application for the State Treasurer's Approval to Issue Bonds with
respect to the Drain Bonds.
BE IT FURTHER RESOLVED that the County Treasurer is authorized, if necessary, to approve the
circulation of a preliminary and final official statement for the Drain Bonds, to cause the preparation of
those portions of the preliminary and final official statement that pertain to the County, and to do all other
things necessary for compliance with Rule 15c2-12 issued under the Securities Exchange Act of 1934, as
amended (the "Rule"). The County Treasurer is authorized to execute and deliver such certificates and to
do all other things that are necessary to effectuate the sale and delivery of the Drain Bonds.
BE IT FURTHER RESOLVED that the County Treasurer is hereby authorized, if necessary, to execute
and deliver in the name and on behalf of the County (i) a certificate of the County to comply with the
requirements for a continuing disclosure undertaking of the County pursuant to subsection (b)(5) of the
Rule and (ii) amendments to such certificate from time to time in accordance with the terms of such
certificate (the certificate and any amendments thereto are collectively referred to herein as the
"Continuing Disclosure Certificate"). To the extent a Continuing Disclosure Certificate is executed and
delivered, the County hereby covenants and agrees that it will comply with and carry out all of the
provisions of such Continuing Disclosure Certificate. The remedies for any failure of the County to comply
with and carry out the provisions of the Continuing Disclosure Certificate shall be as set forth therein.
BE IT FURTHER RESOLVED that all resolutions and parts of resolutions insofar as they conflict with the
provisions of this resolution be and the same hereby are rescinded.
BE IT FURTHER RESOLVED no budget amendment is required. No General Fund appropriation is
required.
Chairperson, on behalf of the Health, Safety and Human Services Committee, I move adoption of the
foregoing resolution. .
C mis i er Penny Luebs, District 16
Chairperson, Health, Safety and Human
Services Committee
ATTACHMENT
OMIDDD Project
North Interceptor -East Arm (NIEA) & North East Pump Sanitary Sewer Pump Station (NESPS) —
Great Lakes Water Authority Repairs (GLWA).
The NIEA and NESPS were constructed in the early 1970s and based on recent inspections, are
undergoing significant deterioration in certain sections as well as major equipment failures of the NESPS
that are the responsibility of the Oakland Macomb Interceptor Drain Drainage District (OMIDDD). These
systems convey the sanitary sewer flow of approximately 800,000 people in Oakland and Macomb
Counties.
North Interceptor East Arm Sewer.
The Project includes design and rehabilitation of approximately 1600 lineal feet of lining of the existing 17.5 -
foot diameter PCI4 interceptor, lining of approximately 800 lineal feet of the existing 12 -foot diameter PCI -
19 interceptor.
The Project will consist of construction earth retention systems, shafts, gates, manholes, new piping,
electrical, control and communication systems. In also consists of related modifications to gain access to
the interceptor in the NIEA and GLWA systems as well as upstream OMIDDD flow control system
operations and modifications to facilitate the downstream work. Contracted work also includes various spot
repairs and other ancillary work in the NIEA including the transition point of the and OMIDDD and GLWA
systems. Related surface repairs of existing infrastructure to access the underground interceptor will also
be needed along with various agreements with other government and private corporations for permitting,
access and managing the flow in order to commence the work.
Northeast Sewage Pump Station (NESPS) Repairs
The purpose of the Northeast Sewage Pumping Station (NESPS) Pumping and Electrical Upgrades Project
is to improve redundancy and efficiency to the pumping operations at the pump station. This will be
achieved through the replacement of the existing pumps, motors, process piping, plumbing, electrical
service, transformers, gear, starters, controls, communications, computer, software and all appurtenances
to completely rehabilitate the pump station process from service power into the facility to wastewater leaving
the facility. Five new pumps that will be approximately 1000 horsepower each will be installed with new
discharge piping, controls, valves, actuators and other appurtenances. The station will utilize best
management practices with pumping units that are better sized to match the expected flow along with some
alternative energy features. Demolition of the old pumps and related piping and electrical gear and service
will also be required.
Civil/ Site Work for new drainage, concrete access drive, earthwork, landscaping, lighting, fencing and
security features are also included in the project. A new roof for the existing pump station will be required
to protect the new equipment inside the facility along with a new electrical building which will allow
concurrent operations of the pump station while phasing over to the new system. The new building will
include restroom, storage, cleaning and control rooms and office facilities for staff to properly maintain the
new assets.
NESPS M&E Upgrades and NI -EA Rehabilitation Project Budget Summary
Oakland -Macomb Interceptor Drain Drainage District
6/14/2019 Rev 4/6/20
7) CVT Shares/Allocation: Bonded
I hereby certify the period of usefulness of
these facilities to be thirty (30) years and upwards.
By: n `
Joel Brown, P.E.
Project Engineer
NESPS M&E
NI -EA
Upgrades
Rehabilitation
1) Construction (FAC)
Project Construction Cost (Est)
$ 47,000,000
$
27.000,000
Sub -Total
$ 47,000,000
$
27,000,000
2) Project Development: Engineering Consulting (ENG CON)
ASI/NTH Design Effort
$ 1,319,213
$
2,205,063
CM Preconstrucbon Services -Walsh
$ 575,000
$
-
SchedulingConsultantPlaceholder(Estimated)
$ 124,000
$
169,000
Consultant CCA (Assume 10% Construction Costs)
$ 4,700,000
$
-
Consultant CCA (Assume 10% Construction Costs)
$ -
$
2,700,000
Sub -Total
$ 6,718,000
$
5,074,000
3) Project Financing & Legal (LEGAL)
Project Insurance
$ 650,000
$
350,000
Bondlssuance(Legal)
$ 90,000
$
67,000
Bond Issuance (Financial Consultant)
$ 73,000
$
55,000
Bond Ratings
$ 25,000
$
25,000
Legal Fees (communities contract agreements)
$ 20,000
$
120,000
Sub -Total
$ 858,000
$
617,000
3) Right -of -Way Services (ROW)
Easement Fees
$ 25,000
$
128,000
Permits
$ 325,000
$
90,000
County Personnel Time
$ 29.241
$
49,486
Sub -Total
$ 379,000
$
267,000
4) Exclusive County Services:
Administration (ADM)
$ 251,011
$
306,295
Public Works (MACOMB)
$ 167,749
$
314,330
Engineering-OCWRC(ENG)
$ 300,211
$
509,233
Construction Inspection (INS)
$ 127,294
$
282,473
Surveying (SUR)
$ 22,132
$
33,382
O&M/Equipment-MCPW (STD)
$ 29,881
$
-
O&M/Equipment-OCWRC(STD)
$ 29,881
$
20,955
Startup and Training/Corrections-MCPW/OCWRC(STD)
$ 24,191
$
20.955
Sub -Total
$ 952,000
$
1,488,000
5) Subtotal:
$ 55,907,000
$
34,446,000
6) Contingency (10%)
$ 5,591,000
$
3,445,000
Final Project Cost
$ 61,498,000
$
37,891,000
TOTAL
$
99,389,000.00
7) CVT Shares/Allocation: Bonded
I hereby certify the period of usefulness of
these facilities to be thirty (30) years and upwards.
By: n `
Joel Brown, P.E.
Project Engineer
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0101 EDSTMG MANHOLE LOCATION B NUMBER OF DEBRIS REMOVAL
1 I P a e e OAKLAND MACOMB INTERCEPTOR DRAIN DRAINAGE DISTRICT
Resolution #20145 May 13, 2020
Moved by Spisz seconded by McGillivray the resolutions on the Consent Agenda be adopted (with
accompanying reports being accepted).
Discussion followed.
Vote on Consent Agenda:
AYES: Jackson, Kochenderfer, Kowall, Kuhn, Long, Luebs, Markham, McGillivray, Middleton,
Miller, Nelson, Powell, Quarles, Spisz, Taub, Weipert, Woodward, Zack, Gershenson, Gingell,
Hoffman. (21)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions on the Consent Agenda were adopted (with
accompanying reports being accepted).
w,,,(�L
1 HEREBY APPROVE THIS RESOLUTION
CHIEF DEPUTY COUNTY EXECUTIVE
ACTING pURSUANTTO 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 May 13, 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 13th day of May, 2020.
Lisa Brown, Oakland County