HomeMy WebLinkAboutResolutions - 2022.06.23 - 37407NFiA
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BOARD OF COMMISSIONERS
June 23,2022
MISCELLANEOUS RESOLUTION #22-212
Sponsored By: William Miller III
Water Resources Commissioner - Resolution Assigning American Rescue Plan Act - Local Fiscal
Recovery Funds for Northwest Oakland Sanitary Drain Drainage District Phase I
Chairperson and Members of the Board:
WHEREAS the United States Treasury allocated Oakland County $244,270,949 of Local Fiscal Recovery
Funds (LFRF) established raider the American Rescue Plan Act (ARPA) of 2021: and
WHEREAS under the guidance of the Final Rule. the County may use these frauds at its discretion to support
eligible investments in public health expenditures. address negative economic impacts caused by a public health
emergency; replace lost public sector revenue; provide premium pay for essential workers; and invest in water,
sewer, and broadband infrastructure: and
WHEREAS the Oakland County Water Resources Commissioner ("WRC") has conducted conceptual studies
regarding the protection of the environment and the provision of sanitary sewer service to serve certain areas
located within the Village of Ortonville and within the Townships of Groveland, Holly, and Brandon
(collectively the Oakland Comity "Communities'*) through an extension of service from Genesee County; and
WHEREAS the Communities have petitioned for the creation of a county drainage district formed under
Chapter 20 of Act No. 40 of the Public Acts of Michigan of 1956, as amended ("Drain Code"), to conduct a
feasibility study to extend sanitary sewer service from the Oakland Comity border with Genesee County to
serve certain areas within the Communities, negotiation of an agreement with Genesee County to determine the
feasibility of providing additional capacity consisting of the extension of services to the Oakland County border
with Genesee County, an exploration of, and request for, applicable grants and other funding sources (the
"Project"): and
WHEREAS the Project is expected to be named the Northwest Oakland Sanitary Drain Drainage District (the
"District"). The District is to be comprised of the Corurnunities pursuant to an expected Final Order of
Determination as required by the Drain Code; and
WHEREAS the Project is planned to consist of three phases:
1. Phase One involves the construction of a $33 million sanitary sever by Genesee County that will
provide pipe capacity for Oakland County. The construction cost allocation is based on each participant's share
of sewage flow. Genesee County is allocated approximately S 10 million based on expected flow. The cost
allocation to the District based on expected sewer flow is S23 million. The District requests an initial $10
million to acquire permanent capacity in the sewer. The remaining $13 million will be financed by the District.
2. Phase Two involves the construction of a sewer extension along Dixie Highway and Grange Hall Road
at an estimated cost of $49 million.
3. Phase Three involves the construction of a sewer extension along Perryville Road at an estimated cost of
S59 million; and
WHEREAS the WRC. through its contracted engineer. produced a report which shows the clear need for the
Project: and
WHEREAS the Project promotes the public health, safety, and welfare by reducing the environmental dangers
of failing septic systems and further promotes the appropriate treatment of sanitary sewage from homes,
buildings, and schools in the Conuuunities; and
WHEREAS the Project promotes the protection of the environment in Oakland Counter, especially its lakes,
streams, and headwaters of the Flint River Watershed through elimination of failing septic systerus; and
WHEREAS Phase One of the Project will allow the District to acquire capacity in the Genesee County sewer
system known as the Kearsley Creek Interceptor to allow future phases of construction to sert°e the
Communities; and
WHEREAS Genesee County intends to proceed with the design of the Project in June 2022 to allow for the
constriction of the first phrase of the project to begin in 2023; and
WHEREAS the District is responsible for an initial payment of $10 million at the time of the construction
award to be matched with an additional S 13 million financed by the District: and
)WHEREAS the District, and not Oakland County. will pay any other costs associated with Phase I, and the cost
of Pliase II and Phase III, which will be apportioned by the District to the Communities as may be petitioned
under the Drain Code; and
WHEREAS American Rescue Plan Act (" ARPA') funding is appropriate to spend on the allocated cost
because sewer infrastructure is a designated use of ARPA funding.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby assigns
S10.000,000 in ARPA funds for future appropriation to the proposed District to match the $13,000,000 financed
by the District to further the Project and acquire the needed sanitary sewer capacity.
BE IT FURTHER RESOLVED that the appropriation by the Board of Conrnrissioners and subsequent release
of funds for the Project is contingent on the execution of an agreement between Genesee County and the
District for the sewer capacity.
BE IT FURTHER RESOLVED that the Water Resources Commissioner shall seek and apply for any other
appropriate sources of federal and state funds that could be utilized to offset some or all of the $10.000,000 in
Oakland County ARPA-funded costs.
BE IT FURTHER RESOLVED that the use of ARPA — Local Recovery Funds shall not obligate a
conrruitmant of Oakland County's General Fund; the District shall meet all federal, state, and local legal
requirements, Oakland County policies and procedures, and Department of Treasury guidelines for the eligible
expenditure of ARPA — Local Recovery Funds.
BE IT FURTHER RESOLVED that no budget amendment is required at this time as a separate resolution will
be brought forward in the future for the appropriation of ARPA - Local Recovery Funds.
Chairperson, the following Commissioners are sponsoring the foregoing Resolution; William Miller III.
duDate: June 27, 2022
David Woodward, Commissioner
Date: June 29, 2022
David Coulter, Oakland County Executive
t
Date: June 30, 2022
Lisa Brown, County Clerk / Register of Deeds
COMMITTEE TRACKING
2022-06-15 Economic Development & Infrastructure - Reconnnend and Forward to Finance
2022-06-15 Finance - recommend to Board
2022-06-23 Ftull Board
VOTE TRACKING
Motioned by Conunissioner Charles Cavell seconded by Crnnmissioner Michael Gingell to adopt the attached
Resolution: Assigning American Rescue Plan Act - Local Fiscal Recovery Funds for Northwest Oakland
Sanitary Dram Drainage District Phase I.
Yes: David Woodward, Michael Gingell, Karen Joliat, Kristen Nelson, Eileen Kowall, Angela Powell,
Thonnas Kuhn, Clmck Moss, Marcia Gershenson, Williann Miller III, Yolanda Smith Charles, Charles
Cavell, Penny Luebs, Janet Jackson, Gary McGillivray, Robert Hoffman, Adam Kochenderfer (17)
No: Christine Long, Philip Weipert (2)
Abstain: None (0)
Absent: (0)
Passed
ATTACHMENTS
1. 2022-06-15 Final EDI Memo NW Oakland Sewer ARPA Funding
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
aecmrate copy of a resolution adopted by the Oakland Comity Board of C'ommnissioners on June 23, 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. June 23, 2022,
Lisa Brown, Onklmid Countu Clerk:'Regisrer gfDeeds
Form DC-001
RESOURCESWATER • • '.
TO: Commissioner William Miller, Chairperson
Economic Development & Infrastructure Committee
FROM: Jim Nash, Water Resources Commissioner
SUBJECT: Northwest Oakland Sanitary Drain Drainage District— Phase
ARP Funding Request
DATE: June 15, 2022
My office has been working over the past two years with communities in northwest Oakland County to
study the feasibility of extending sewer service from Genesee County to several municipalities in
northern Oakland County. This project is needed to protect the lakes, streams, and headwaters of the
Flint River Watershed in these communities and others by eliminating existing aged and deteriorating
septic systems. Specifically, this project will address failing septic systems within the townships of
Groveland, Holly and Brandon and in most of the Village of Ortonville. It will provide much -needed
service to the economic corridors of these communities.
The initial findings of the report completed by my office indicate that the extension of sewer is feasible
and would likely be completed in three phases (see attached Figure 2). The initial phase of the project
is most critical and involves the drainage district entering into a contract with Genesee County to
place sanitary flow from the communities into a proposed sewer line that will be extended to the
Oakland County border. The estimated share of the cost of the sewer extension in this initial phase is
$23 million.
Collectively, the communities have invested $200,000 in the project for the study phase, preliminary
engineering, and legal services to acquire necessary sewer capacity and to negotiate an agreement
with Genesee County. The communities also have petitioned my office to create a Chapter 20
drainage district to facilitate the design and construction of the project.
am convinced that the installation of the sanitary sewer is the most feasible option for a long-term
solution to the systemic problem of failed septic systems throughout this region. Oakland County
participation in the project is essential for this project to move forward. As such, I am requesting a $10
million contribution from Oakland County's ARPA funds to be matched with approximately $13 million
that will be financed by the communities through the newly created drainage district.
Recommended Action: Reserve $10 million of ARPA funding for the Northwest Oakland
Sanitary Drain Drainage District to secure capacity from the Genesee County sewer system.
OAKLAND COUNTY WATER RESOURCES COMMISSIONER
Page 1 of 3 Rev.: 02/12/2018
Form DC-001
Figure 1. Sanitary Sewer Needs in NW Oakland
Table 1. Phase 1 Cost Allocation
Total Genesee KCI Project Cost $33,000,000
Proiect Cost Snlit (based on canacitv)
Grand Blanc Township
Drainage District/Communities
Required to Start Construction
Oakland County
Grand Blanc Township
Financed by Drainage District/ Communities
$10,000,000 31%
$23,000,000 69%
WRC
w.xex eesouvcrsc ,. -
$10,000,000 Request in the resolution
$10,000,000 Committed by the Township
$13'000,000 To be financed by Drainage District
through Genesee Agreement
OAKLAND COUNTY WATER RESOURCES COMMISSIONER
Page 2 of 3 Rev.: 02/121201 S
Form DC-001
Figure 2. Project Phase Location Map
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OAKLAND COUNTY WATER RESOURCES COMMISSIONER
Page 3 of 3 Rev.: 02/12/201 S