HomeMy WebLinkAboutResolutions - 2023.05.25 - 38242
AGENDA ITEM: Appropriation of American Rescue Plan Act Fiscal Recovery Funds for Northwest
Oakland Sanitary Drain Drainage District Phase I
DEPARTMENT: Water Resources Commissioner
MEETING: Board of Commissioners
DATE: Thursday, May 25, 2023 7:28 PM - Click to View Agenda
ITEM SUMMARY SHEET
COMMITTEE REPORT TO BOARD
Resolution #2023-2914 _ 23-92
Motion to adopt the attached suggested resolution.
ITEM CATEGORY SPONSORED BY
Resolution Yolanda Smith Charles
INTRODUCTION AND BACKGROUND
When Genesee County announced it was going to extend a major sewer interceptor to its border
with Oakland County, it revived a decades-old idea of connecting northwestern Oakland County
communities to an extended sanitary service line. In 2019, the Water Resources Commissioner
began working in earnest with Holly, Groveland, and Brandon Townships along with the Village of
Ortonville to examine the specifics associated with the extended service from Genesee County to
these municipalities.
After a report, completed in December 2021, demonstrated the feasibility of the project, all four
municipalities passed resolutions confirming their support of the project and to take the next steps
toward making it a reality. Additionally, these municipalities contributed $200,000 to help cover the
costs of early engineering studies, legal assistance, and consultant support.
The $143 million construction project, to be completed in three phases, will deliver much-needed
environmental protection to address failing septic systems in the area.
POLICY ANALYSIS
BUDGET AMENDMENT REQUIRED: Yes
Committee members can contact Michael Andrews, Policy and Fiscal Analysis Supervisor at
248.425.5572 or andrewsmb@oakgov.com, or the department contact persons listed for additional
information.
CONTACT
Steve Korth
Brian Coburn
ITEM REVIEW TRACKING
Yolanda Smith Charles, Board of Commissioners Created/Initiated - 5/30/2023
David Woodward, Board of Commissioners Approved - 5/30/2023
David Coulter, Executive's Office Approved - 5/30/2023
Lisa Brown, Clerk/Register of Deeds Final Approval - 5/30/2023
AGENDA DEADLINE: 06/04/2023 7:28 PM
ATTACHMENTS
1. Northwest Oakland Sanitary DD District 250K Match - Schedule A
2. Memo to EDI Committee NW Oakland Sewer Project
3. PROJECT LOCATION MAP
COMMITTEE TRACKING
2023-05-17 Economic Development & Infrastructure - Recommend and Forward to Finance
2023-05-17 Finance - Recommend to Board
2023-05-25 Full Board - Adopted
Motioned by: Commissioner Yolanda Smith Charles
Seconded by: Commissioner Robert Hoffman
Yes: David Woodward, Michael Spisz, Penny Luebs, Karen Joliat, Kristen Nelson, Christine
Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson,
William Miller III, Yolanda Smith Charles, Brendan Johnson, Ajay Raman (15)
No: None (0)
Abstain: None (0)
Absent: Charles Cavell, Gary McGillivray, Janet Jackson, Michael Gingell (4)
Passed
May 25, 2023
RESOLUTION #2023-2914 _ 23-92
Sponsored By: Yolanda Smith Charles
Water Resources Commissioner - Appropriation of American Rescue Plan Act Fiscal Recovery
Funds for Northwest Oakland Sanitary Drain Drainage District Phase I
Chair and Members of the Board:
WHEREAS the Oakland County Board of Commissioners adopted Miscellaneous Resolution 22-212
recognizing that the United States Treasury allocated Oakland County $244,270,949 of Local Fiscal
Recovery Funds (LFRF) established under the American Rescue Plan Act (ARPA) of 2021; and
WHEREAS MR #22-212 explained that under the guidance of the Final Rule, the County may use
these funds at its discretion to support eligible investments in public health expenditures, address
negative economic impacts caused by the 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 County Communities) through an extension of service
from Genesee County; and
WHEREAS the Communities have conducted a feasibility study to extend sanitary sewer service from
the Oakland County border with Genesee County to serve certain areas within the Communities, and
have negotiated an agreement with Genesee County to extend services to the Oakland County
border with Genesee County; and
WHEREAS the Northwest Oakland Sanitary Drain Drainage District (the District) was created and
comprised of the Communities pursuant to a Final Order of Determination as required by the
Michigan Drain Code; and
WHEREAS the Project is planned to consist of three phases:
1. Phase One involves the construction of a $35 million sanitary sewer by Genesee County to
provide pipe capacity for Oakland County. The construction cost allocation is based on each
participant’s share of sewage flow. The cost allocation to the District is $10 million.
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 $59 million; and
WHEREAS the public health, safety, and welfare are promoted 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 Communities; and
WHEREAS Phase One of the Project allows the District to acquire capacity in the Genesee County
sewer system known as the Kearsley Creek Interceptor to allow future phases of construction to
serve the communities; and
WHEREAS the District has negotiated an agreement with Genesee County for construction of Phase
One of the Project and acquisition of capacity in the completed sewer that limits the initial cost to the
District in the amount of $10 million; and
WHEREAS in order for the District to formally execute the agreement, the assigned $10 million
amount authorized by Miscellaneous Resolution 22-212 must be appropriated; and
WHEREAS the District, and not Oakland County, will pay any other costs associated with Phase
One, and the cost of Phase Two, and Phase Three, 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 Phase One of the
Project because sewer infrastructure is a designated use of ARPA funding; and
WHEREAS the District requires $250,000 in non-federal funds for a match to receive $1 million for
the design of the next phase from the Fiscal Year 2023 Congressionally Funded Community Projects
requiring a modification to the amount authorized in Miscellaneous Resolution 22-212.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby
appropriates $250,000 from the General Fund to facilitate the matching funds from the
Congressionally Funded Community Projects award and $9,750,000 in ARPA funds for the Northwest
Oakland Sanitary Sewer Project.
BE IT FURTHER RESOLVED that the appropriation by the Board of Commissioners 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 approval of the appropriation of ARPA – Local Recovery Funds
shall not obligate a commitment 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 the budget shall be amended as reflected in the attached
Schedule A-Budget Amendment.
Chair, the following Commissioners are sponsoring the foregoing Resolution: Yolanda Smith
Charles.
Date: May 30, 2023
David Woodward, Commissioner
Date: May 30, 2023
David Coulter, Oakland County Executive
Date: May 30, 2023
Lisa Brown, County Clerk / Register of Deeds
COMMITTEE TRACKING
2023-05-17 Economic Development & Infrastructure - Recommend and Forward to Finance
2023-05-17 Finance - Recommend to Board
2023-05-25 Full Board - Adopted
Motioned by Commissioner Yolanda Smith Charles seconded by Commissioner Robert Hoffman to
adopt the attached Resolution: Appropriation of American Rescue Plan Act Fiscal Recovery Funds for
Northwest Oakland Sanitary Drain Drainage District Phase I.
Yes: David Woodward, Michael Spisz, Penny Luebs, Karen Joliat, Kristen Nelson, Christine Long,
Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson, William
Miller III, Yolanda Smith Charles, Brendan Johnson, Ajay Raman (15)
No: None (0)
Abstain: None (0)
Absent: Charles Cavell, Gary McGillivray, Janet Jackson, Michael Gingell (4)
Passed
ATTACHMENTS
1. Northwest Oakland Sanitary DD District 250K Match - Schedule A
2. Memo to EDI Committee NW Oakland Sewer Project
3. PROJECT LOCATION MAP
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
25, 2023, 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, May 25, 2023.
Lisa Brown, Oakland County Clerk / Register of Deeds
Oakland County, Michigan
WATER RESOURCES COMMISSIONER - NORTHWEST OAKLAND SANITARY DRAIN DRAINAGE DISTRICT $250,000 MATCH IN NON-FEDERAL FUNDS FOR THE $9,750,000 ARPA FUNDS
Schedule "A" DETAIL
R/E Fund Name Division Name
Fund #
(FND)
Cost Center
(CCN) #
Account #
(RC/SC)
Program #
(PRG)
Grant ID
(GRN) #
Project ID #
(PROJ)
Region
(REG)
Budget
Fund
Affiliate
(BFA)
Ledger
Account
Summary Account Title
FY 2023
Amendment
FY 2024
Amendment
FY 2025
Amendment
E General Fund Non-Department FND10100 CCN9010101 SC740044 PRG155080 740000 Drain Assessments Current $(250,000)$-$-
E General Fund Non-Department FND10100 CCN9010101 SC788001 PRG196030 BFA84886 788001 Transfers Out $250,000 $-$-
Total Expenditures $-$-$-
R American Rescue Plan Non-Dept FND21285 CCN9010101 RC610313 PRG133095 PRJ-17XXX 610000 Federal Operating Grants $9,750,000 $-$-
Total Revenues $9,750,000 $-$-
E American Rescue Plan Water Resources FND21285 CCN6010101 SC788001 PRG133095 PRJ-17XXX BFA84886 788001 Transfer Out $9,750,000 $-$-
Total Expenditures $9,750,000 $-$-
R Northwest Oakland Sanitary Drain Const.Water Resources FND84886 CCN6010101 RC695500 PRG149015 BFA10100 695500 Transfers In $250,000 $-$-
R Northwest Oakland Sanitary Drain Const.Water Resources FND84886 CCN6010101 RC695500 PRG133095 PRJ-17XXX BFA21285 695500 Transfers In $9,750,000 $-$-
Total Revenue $10,000,000 $-$-
E Northwest Oakland Sanitary Drain Const.Water Resources FND84886 CCN6010101 SC730373 PRG149015 PRJ-17XXX 730000 Contractual Services $9,750,000 $-$-
E Northwest Oakland Sanitary Drain Const.Water Resources FND84886 CCN6010101 SC730373 PRG149015 730000 Contractual Services $250,000 $-$-
Total Expenditures $10,000,000 $-$-
Form DC–001
OAKLAND COUNTY WATER RESOURCES COMMISSIONER
Page 1 of 1 Rev.: 02/12/2018
OAKLAND COUNTY
WATER RESOURCES COMMISSIONER MEMORANDUM
TO: Commissioner Yolanda Smith Charles, Chairperson
Economic Development and Infrastructure Committee
FROM: Jim Nash, Oakland County Water Resources Commissioner
SUBJECT: ARPA Funds for Northwest Oakland Sewer
DATE: May 17, 2023
In June 2022, the Oakland County Board of Commissioners allocated $10 million toward the
Northwest Oakland Sanitary Sewer project. The project will extend sanitary sewer service into
Oakland County in three phases making it available for Brandon, Groveland, and Holly Townships
and the Village of Ortonville in accordance with their Master Plans for Land Use. The municipalities
have petitioned to create the Northwest Oakland Sanitary Drain Drainage District to oversee the
project through my office. This presents an extraordinary opportunity to provide sewer service in
discrete areas of the communities to eliminate failed septic fields in the environmentally sensitive
headwaters of the Flint River.
A purchase agreement has been negotiated with Genesee County to allocate the total project cost of
$35 million for the construction of a sewer to the Oakland County border which will be performed in
the first phase of the project as depicted in the attached map. The agreement provides sewer
capacity to northwest Oakland County and limits the financial obligation of the Drainage District to
$10 million. Finally, the agreement provides the Drainage District with the first right of refusal for
future purchases of reserve capacity held by Genesee County.
Upon execution of the agreement, Genesee County will begin final design of the project. Bidding is
expected to occur in mid-2024, with construction to commence soon thereafter.
Requested Action: Authorize the appropriation of a one-time payment of $10 million with no
further financial obligation by Oakland County.
Presenters: Steve Korth, P.E., Chief Manager Brian Coburn, P.E. Manager
korths@oakgov.com coburnbr@oakgov.com
248-858-7598 248-452-9846
248‐858‐0958 | One Public Works Drive Building 95 West Waterford, MI 48328 | www.oakgov.com/water
PROJECT LOCATION MAP