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HomeMy WebLinkAboutResolutions - 2022.03.10 - 35336• BOARD OF COMMISSIONERS March 10, 2022 MISCELLANEOUS RESOLUTION #22-057 Sponsored By: William Miller III IN RE: Water Resources Commissioner - Resolution Intent to Reimburse Project Costs from Bond Proceeds Chairperson and Members of the Board: WHEREAS the County of Oakland (the "County") is in urgent need of water supply system facilities constituting a part of the County's City of Pontiac Water Supply System (the "System") as described in the notice attached hereto (sometimes referred to herein as the "Project"), in order to promote the health and welfare of the residents served by the System, which water supply system facilities also would benefit the County and its residents, and such facilities can be financed most economically and efficiently by the County through the exercise of the powers conferred by Act 34, Public Acts of Michigan, 2001, as amended ("Act 34"); and WHEREAS the County is authorized pursuant to the terms of Act 34 to issue its tax exempt bonds to finance the cost of the acquisition and construction of the Project, which bonds will be secured by revenues of the System and the County's full faith and credit pledge; and WHEREAS it is anticipated that the County will advance all or a portion of the costs of the Project prior to the issuance of the bonds, such advance to be repaid from proceeds of the bonds upon the issuance thereof, and WHEREAS Section 1.150-2 of the Treasury Regulations on Income Tax (the "Reimbursement Regulations") specifies conditions under which a reimbursement allocation may be treated as an expenditure of bond proceeds, and the County intends by this resolution to qualify amounts advanced by the County to the Project for reimbursement from proceeds of the bonds in accordance with the requirements of the Reimbursement Regulations. NOW THEREFORE BE IT RESOLVED 1. DECLARATION OF INTENT TO REIMBURSE PROJECT EXPENDITURES. The County hereby declares its official intent to issue its limited tax general obligation bonds in one or more series in the aggregate principal amount of not to exceed $5,000,000 to finance all or part of the cost of the Project. The County hereby declares that it reasonably expects to seek reimbursement for its advances to the Project as anticipated by this resolution. The bonds shall be authorized by proper proceedings subsequent to this resolution. 2. NOTICE OF INTENT TO ISSUE BONDS. The County Clerk is hereby instructed to publish the notice attached hereto once in a newspaper of general circulation in the County of Oakland, which notice shall not be less than'/4 page in size in such newspaper. 3. CONFLICTING RESOLUTIONS. All resolutions and parts of resolutions insofar as they may be in conflict herewith are rescinded. BE IT FURTHER RESOLVED that no budget amendment is required. NOTICE OF INTENT TO ISSUE BONDS BY THE COUNTY OF OAKLAND, MICHIGAN NOTICE IS HEREBY GIVEN, that the County of Oakland, Michigan, intends to issue bonds in one or more series in the aggregate principal amount of not to exceed $5,000,000 for the purpose of defraying all or part of the cost of acquiring, constructing and installing water supply system improvements and facilities to improve the County's City of Pontiac Water Supply System (the "System") to serve the users of the System and the residents of the County of Oakland, which improvements shall include without limitation the replacement of lead water service lines and improvements to related facilities as well as all work necessary and incidental to these improvements, including without limitation the restoration of property, streets, rights -of -way, and easements affected by the improvements. The bonds will bear interest from their date at a rate or rates to be determined at competitive and/or negotiated sales but in no event to exceed such rates as may be permitted by law. The bonds will be issued under and pursuant to the provisions of Act No. 34, Public Acts of Michigan, 2001, as amended, and the principal of and interest on the bonds are expected to be paid from revenues of the System. In addition, the full faith and credit of the County will be pledged to pay the principal of and interest on the bonds as the same shall become due. The County will be obligated, as a first budget obligation, to advance moneys from its general funds or to levy ad valorem taxes on all taxable property within its corporate boundaries to pay the principal of and interest on the bonds as the same shall become due to the extent that the revenues of the System are not sufficient for such purpose; provided, however, that the ability of the County to raise such moneys is subject to applicable constitutional and statutory limitations on the taxing power of the County. RIGHT TO PETITION FOR REFERENDUM This notice is given, by order of the Board of Commissioners of the County of Oakland, to and for the benefit of the electors of the County of Oakland in order to inform them of their right to petition for a referendum upon the question of the issuance of the aforesaid bonds. The bonds will be issued without submitting such a question to a vote of the electors, unless within 45 days after the date of publication of this notice a petition requesting a referendum upon such question, signed by not less than 10% or 15,000 of the registered electors residing within the County of Oakland, whichever is the lesser, shall have been filed with the undersigned County Clerk. In the event that such a petition is filed, the bonds will not be issued unless and until the issuance thereof shall have been approved by the vote of a majority of the electors of the County of Oakland qualified to vote and voting thereon at a general or special election. FURTHER INFORMATION Further information relative to the issuance of said bonds and the subject matter of this notice may be secured at the office of the Clerk of the County of Oakland, 1200 North Telegraph Road, Pontiac, Michigan 48341. This notice is given pursuant to the provisions of Act 34, Public Acts of Michigan, 2001, as amended. LISA BROWN, Clerk County of Oakland Chairperson, the following Commissioners are sponsoring the foregoing Resolution: William Miller III. Date: March 10, 2022 David Woodward, Commissioner ,� .�1� Lisa Brown, County Clerk / Register of Deeds Date: March 21, 2022 COMMITTEE TRACKING 2022-03-02 Economic Development & Infrastructure- recommend and forward to Finance 2022-03-02 Finance - recommend to Board 2022-03-10 Full Board VOTE TRACKING Motioned by Commissioner Penny Luebs seconded by Commissioner Charles Cavell to adopt the attached Resolution: Intent to Reimburse Project Costs from Bond Proceeds. Yes: David Woodward, Michael Spisz, Karen Joliat, Kristen Nelson, Eileen Kowall, Christine Long, Philip Weipert, Gwen Markham, Angela Powell, Thomas Kuhn, Chuck Moss, Marcia Gershenson, William Miller III, Yolanda Smith Charles, Charles Cavell, Penny Luebs, Janet Jackson, Gary McGillivray, Robert Hoffman, Adam Kochenderfer (20) No: None (0) Abstain: None (0) Absent: (0) The Motion Passed. ATTACHMENTS 1. 2022-03-02 memo to accompany intent resolution 2. 2022-03-02 Map of Project Area 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 March 10, 2022, 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 on Thursday, March 10, 2022. Lisa Brown, Oakland County Clerk/Register of Deeds Form DC-001 OACOUNTY MEMORANDUM WATERTERRESOURCES COMMISSIONER TO: William Miller, Chairperson Economic Development and Infrastructure Committee FROM: Sid Lockhart, P.E., Deputy & Special Projects Manager SUBJECT: Intent to Reimburse Project Costs from Bond Proceeds and Notice of Intent to Issue Bonds for Improvements to the City of Pontiac Water Supply System DATE: March 2, 2022 The City of Pontiac is in urgent need of improvements to the water supply system facilities which is currently owned by Oakland County with Water Resources Commissioner Jim Nash acting as the County's Agent. Improvements are needed to promote the health and welfare of the residents served by the water supply system facilities which also would benefit the County and its residents. Such improvements can be financed most economically and efficiently by the County through the exercise of the powers conferred by Act 34, of the Public Acts of Michigan, 2001, as amended to issue bonds to finance the cost of the acquisition and construction of this project. Bonds will be secured by revenues of the System and the County's full faith and credit pledge. It is anticipated that the County will advance all or a portion of the costs of the project prior to the issuance of the bonds and that system fund advances would be repaid from proceeds of the bonds. It further is expected that the $5 million loan principle will be forgiven at the conclusion of the project through the State's Water Infrastructure Fund Transfer Act, also referred to as" Booker" funds. These limited tax general obligation bonds would be issued in one or more series in the aggregate principal amount not to exceed $5 million. That amount is expected to be sufficient to finance a portion of eligible construction project costs and the County can reasonably expect to seek reimbursement for its advances to the project as anticipated by the accompanying resolution. I offer the accompanying resolution and respectfully request its adoption. Presenters: Sid Lockhart, P.E., Deputy and Special Projects Manager Phone: 248-858-1082 Amy Ploof, P.E., Chief Engineer Phone: 248-452-2271 Eric McGlothlin, Esq., Dickinson Wright, PLLC Phone: 248-433-7566 Steven A. Burke, CFA, MFCI, LLC Phone: 313-782-3011 OAKLAND COUNTY WATER RESOURCES COMMISSIONER j Page 1 of 1 Rev.: 11/05/08 J 2/14/2022 PROJECT: DWSRF Service Line Replacements Summary 1,000 services to be replaced as part of DWSRF Program $ 5,000 funded (on average) per replacement $5.0 M total DWSRF funded Project Map Number of Replacements In project Total DWSRF Year In City Total area Funded 2021- 324 24 348 Not eligible 2022 316 32 348 348 _ 2023 _ 280 68 348 348 2024 266 82 348 304 2025 253 95 348 Not eligible ' 2021 replacement program is currently in progress Legend Description and notes Grant funding through the DWSRF program is limited to $5,000 (on average) for service line replacements (construction costs only) up to $5 million. The service line replacement program has been broken up into three (3) densely populated lead service line areas to correspond with planned water infratructure improvement programs in the areas shown on the above project map. Additional replacements to meet the annual goal of 348 service line replacements will be from strategically selected areas throughout the City. The water infrastructure improvement programs were developed to remove lead service lines In the first year of the program and replace the water main in the following year. \\hrc-engr\hrc\ProjDocs\202110\2021L056\03 Studies\Working\20220208_pmjarts FY22 to_FY26.xlsx DWSRF SLR summary