HomeMy WebLinkAboutResolutions - 2023.07.20 - 40337
AGENDA ITEM: Clinton River Water Resource Recovery Facility Optimization Project
DEPARTMENT: Water Resources Commissioner
MEETING: Board of Commissioners
DATE: Thursday, July 20, 2023 6:00 PM - Click to View Agenda
ITEM SUMMARY SHEET
COMMITTEE REPORT TO BOARD
Resolution #2023-3083 _ 23-114
Motion to adopt the attached suggested resolution.
ITEM CATEGORY SPONSORED BY
Resolution Yolanda Smith Charles
INTRODUCTION AND BACKGROUND
POLICY ANALYSIS
The resolution is requesting the County’s pledge of full faith and credit for the payment of the
principal and interest on the bonds for the Clinton River Water Resource Recovery Facility Drain
Optimization Project (CRWRR) (initiated by the CRWRR Drainage Board) for the location,
establishment and construction of an intra-county drain project. The issuance of the bonds is in the
aggregate principal amount of not to exceed $75,000,000 with an anticipated 20-year repayment
(maturity of bonds). The bonds will be designated as the “Clinton River Water Resource Recovery
Facility Drain Bonds, Series 2023” and will bear interest at a rate not to exceed 6% per annum.
The project will consist of improving the previously established Clinton River Water Resource
Recovery Facility, an intra-county drain for the treatment of sanitary sewage located in the City of
Pontiac. The wastewater treatment plant is in desperate need of upgrades, rehabilitation, and
replacement of much of its obsolete equipment. The project includes replacing the old electrical
equipment and centralize a new power source for the facility and move it to higher ground out of the
flood plain, where the current power source is located. In addition, about 10 smaller generators will
be removed and two new larger and more reliable units will be installed. The project includes a new
electrical building that will house a biogas cleaning skid along with combined heat and power
generators used to burn the biogas produced by the facility. This process will provide power for up
to 30% of the facility’s electrical demand. It also will produce steam that will deliver heat for the
facility’s current biosolids processing system. Also, is the optimization of the hydraulic capacity of
the plant’s
secondary clarifiers. This component of the project was mandated by the Michigan Department of
Environment, Great Lakes, and Energy. To meet the state’s requirement, the project also includes
the construction of new clarifiers and related electrical and mechanical equipment as well as a new
sludge pumping station. See detail in Exhibit A.
The bonds are to finance all or part of the costs of the Project, in anticipation of the collection of an
equal amount of installments of special assessments against the Cities of Auburn Hills, Lake
Angelus, Pontiac, Rochester, and Rochester Hills, along with the Charter Townships of
Independence, Oakland, Orion, Oxford, Waterford, and West Bloomfield, and the Villages Lake
Orion and Oxford, said special assessments to be duly confirmed by the Drainage Board. See
Exhibit A for details. A budget amendment is not required.
BUDGET AMENDMENT REQUIRED: No
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
Sid Lockhart
Steven Burke
Laura Bassett
ITEM REVIEW TRACKING
Aaron Snover, Board of Commissioners Created/Initiated - 7/20/2023
David Woodward, Board of Commissioners Approved - 7/20/2023
Hilarie Chambers, Executive's Office Approved - 7/28/2023
Lisa Brown, Clerk/Register of Deeds Final Approval - 7/31/2023
AGENDA DEADLINE: 08/02/2023 8:35 PM
ATTACHMENTS
1. Exhibit A
2. CRWRRF Optimization Map
3. 2023-07-12 CRWRRF Optimization Project Memo
4. Exhibit B Final Order of Apportionment
COMMITTEE TRACKING
2023-07-12 Economic Development & Infrastructure - Recommend and Forward to Finance
2023-07-12 Finance - Recommend to Board
2023-07-20 Full Board - Adopt
Motioned by: Commissioner Robert Hoffman
Seconded by: Commissioner Angela Powell
Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Kristen
Nelson, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia
Gershenson, Janet Jackson, Charles Cavell, Brendan Johnson, Ajay Raman (16)
No: None (0)
Abstain: None (0)
Absent: Gary McGillivray, William Miller III, Yolanda Smith Charles (3)
Passed
July 20, 2023
RESOLUTION #2023-3083 _ 23-114
Sponsored By: Yolanda Smith Charles
Water Resources Commissioner - Clinton River Water Resource Recovery Facility
Optimization Project
Chair and Members of the Board:
WHEREAS proceedings have been taken by the Drainage Board for the Clinton River Water
Resource Recovery Facility Drain Optimization Project (the “Drainage Board”) for the location,
establishment and construction of an intra-county drain project consisting of improving the previously
established Clinton River Water Resource Recovery Facility, an intra-county drain for the treatment of
sanitary sewage located in the City of Pontiac, as further described in Exhibit A attached hereto, and
that serves property located entirely within the limits of the Cities of Auburn Hills, Lake Angelus,
Pontiac, Rochester, and Rochester Hills, along with the Charter Townships of Independence,
Oakland, Orion, Oxford, Waterford, and West Bloomfield, and the Villages Lake Orion and Oxford, in
the County of Oakland (the “County”), under the provisions of Chapter 20 of the Drain Code of 1956,
as amended, pursuant to a petition filed with the Oakland County Water Resources Commissioner
(the “Project”); and
WHEREAS the Drainage Board has authorized the issuance by the Clinton River Water Resource
Recovery Facility Drainage District of one or more series of bonds (the "Bonds") in the aggregate
principal amount of not to exceed $75,000,000 to finance all or part of the costs of the Project, in
anticipation of the collection of an equal amount of installments of special assessments against the
Cities of Auburn Hills, Lake Angelus, Pontiac, Rochester, and Rochester Hills, along with the Charter
Townships of Independence, Oakland, Orion, Oxford, Waterford, and West Bloomfield, and the
Villages Lake Orion and Oxford, said special assessments to be duly confirmed by the Drainage
Board; and
WHEREAS the specific apportionment assigned to the aforementioned municipalities is detailed in
Exhibit B; and
WHEREAS the Bonds are to be designated “Clinton River Water Resource Recovery Facility Drain
Bonds, Series 2023”, with such other designations, including, without limitation, designations for
multiple series, as determined by an officer duly authorized by the Drainage Board; provided that, if
any series of the Bonds are not issued in calendar year 2023, an officer duly authorized by the
Drainage Board may re-designate such series of Bonds to reflect the year in which such series of
Bonds are issued; and
WHEREAS the Bonds shall bear interest at a rate not to exceed 6% per annum; and
WHEREAS the statutory limit for County debt is $9,768,281,836, i.e., 10% of the State Equalized
Value (S.E.V.). As of June 27, 2023, the total pledged debt is $588,291,377 or approximately
0.60225% of the S.E.V.; and
WHEREAS, the Oakland County Board of Commissioners may, by resolution adopted by a two-thirds
vote of its members elect, pledge the full faith and credit of the County for the prompt payment of the
principal of and interest on the Bonds pursuant to Section 474 of the Drain Code; and
WHEREAS the Drainage Board deems it advisable and necessary to obtain from this Board a
resolution pledging the full faith and credit of the County on the Bonds; and
WHEREAS the Project is necessary to protect and preserve the public health and, and therefore, it is
in the best interest of the County of Oakland that the Bonds be sold.
NOW THEREFORE BE IT RESOLVED that pursuant to the authorization provided in Section 476 of
the Drain Code of 1956, as amended, provided that the Bonds are issued within the parameters set
forth above, the Oakland County Board of Commissioners, by a two-thirds vote of its members elect,
does hereby irrevocably pledge the full faith and credit of the County of Oakland for the prompt
payment of the principal of and interest on the Bonds, and does agree that in the event that any
public corporation assessed shall fail or neglect to account to the County Treasurer of the County of
Oakland for the amount of any special assessment installment and interest, when due, then the
amount thereof shall be immediately advanced from County funds, and the County Treasurer is
directed to immediately make such advancement to the extent necessary.
BE IT FURTHER RESOLVED in the event that, pursuant to said pledge of full faith and credit, the
County advances out of County funds, all or any part of said installment and interest, it shall be the
duty of the County Treasurer, for and on behalf of the 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 is hereby authorized, if necessary, to
execute a certificate of the County to comply with the continuing disclosure undertaking of the County
with respect to the Bonds pursuant to paragraph (b)(5) of SEC Rule 15c2-12 issued under the
Securities Exchange Act of 1934, as amended, and 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. The County hereby covenants
and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure
Certificate.
BE IT FURTHER RESOLVED that all resolutions and part of resolutions, insofar as the same may be
in conflict with the provisions of this resolution, be and the same hereby are rescinded.
BE IT FURTHER RESOLVED that no budget amendment is required.
Chair, the following Commissioners are sponsoring the foregoing Resolution: Yolanda Smith
Charles.
Date: July 20, 2023
David Woodward, Commissioner
Date: July 28, 2023
Hilarie Chambers, Deputy County Executive II
Date: July 31, 2023
Lisa Brown, County Clerk / Register of Deeds
COMMITTEE TRACKING
2023-07-12 Economic Development & Infrastructure - Recommend and Forward to Finance
2023-07-12 Finance - Recommend to Board
2023-07-20 Full Board - Adopt
Motioned by Commissioner Robert Hoffman seconded by Commissioner Angela Powell to adopt the
attached Resolution: Clinton River Water Resource Recovery Facility Optimization Project.
Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Karen Joliat, Kristen Nelson,
Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia
Gershenson, Janet Jackson, Charles Cavell, Brendan Johnson, Ajay Raman (16)
No: None (0)
Abstain: None (0)
Absent: Gary McGillivray, William Miller III, Yolanda Smith Charles (3)
Passed
ATTACHMENTS
1. Exhibit A
2. CRWRRF Optimization Map
3. 2023-07-12 CRWRRF Optimization Project Memo
4. Exhibit B Final Order of Apportionment
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 July
20, 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, July 20, 2023.
Lisa Brown, Oakland County Clerk / Register of Deeds
Exhibit A
Clinton River Water Resource Recovery Facility Drain Optimization Project
As set forth in the petition filed with the Oakland County Water Resources Commissioner pursuant to
the provisions of Chapter 20 of the Drain Code of 1956, as amended, to be located as specified in
Schedule 1 hereto, the intra-county drain project shall include, without limitation, one or more of the
following:
1. At the Auburn Resource Recovery Facility:
a. Additions to and/or refurbishments of the facility’s peak flow storage capacity along with
additions and modifications to the secondary clarifier processes that satisfactorily meet the
requirements of the State of Michigan Department of Environment, Great Lakes, and Energy, as well
as all work, rights of way, easements, site work, equipment and appurtenances necessary or
incidental thereto;
b. Improvements to pump stations and appurtenances related to the sewage treatment process,
and the addition of new secondary clarifiers including all sludge conveyance related channels and
pipes;
c. Installation of new piping, electrical, controls and modifications to the existing blower system
including building modifications;
d. Improvements to electrical system, backup generators and cogeneration units to centralize the
power supply; and installation of new switchgear, primary and secondary power lines, low and
medium voltage, related electrical gear; and the removal and replacement of obsolete generators,
electrical wiring, conduit, poles and equipment to optimize the plant power supply from DTE Energy
to all buildings and components of the facilities along with related control work;
e. Biogas cleaning and scrubbing equipment and related infrastructure additions and
improvements to maximize and optimize plant operations and efficiencies relating to the sludge
digestion processes including digester modifications and the thermal and microbial hydrolysis
treatment trains;
f. All work, rights of way, easements, site work, electrical and mechanical improvements,
equipment and appurtenances necessary or incidental thereto.
2. At the East Boulevard Recovery Facility:
Installation of new switchgear, primary and secondary power lines and gear; and removal and
replacement of obsolete generators, electrical wiring, conduit, poles and equipment to optimize the
plant power supply from DTE Energy to all buildings and components of the facilities, along with
related control work.
Clinton River Water Resource Recovery FacilityEast Blvd Plant274 Martin Luther King Jr. Blvd.Pontiac, MI
Clinton River Water Resource Recovery FacilityAuburn Plant155 N. Opdyke Rd.Pontiac, MI
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The information displayed in this map is compiled from recorded deeds, plats, ta x map s, surveys and other public records. Although this information is intended to accurately reflect public information, it is not a legally recorded ma p or survey and is not intended to be used as one. Users should consult primar y/original information sources where appropriate.
DISCLAIMER:
Date: 6/20/2023
Water Resources Commissioner ’s OfficeClinton River Water Resources Recovery Facility Optimization ProjectCity of Pontiac
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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 Charles Smith, Chairperson Environment, Development
and Infrastructure Committee
FROM: Sid Lockhart, P.E., Deputy and Special Projects Manager
SUBJECT: Clinton River Water Resource Recovery Facility Optimization Project
DATE: July 12, 2023
The Clinton River Water Resource Recovery Facility, a wastewater treatment plant in Pontiac, is in desperate need
of upgrades, rehabilitation, and replacement of much of its obsolete equipment. In fact, some of its electrical
equipment is so outdated that replacement parts are no longer available. A much-needed, multi-faceted project
being undertaken by the Water Resources Commissioner will cure many of those deficiencies.
This estimated $75 million project will, among other things, replace the old electrical equipment. It also will centralize
a new power source for the facility and move it to higher ground out of the flood plain, where the current power
source is located. Additionally, about 10 smaller generators will be removed and two new larger and more reliable
units will be installed.
Also included in the project is a new electrical building which will house a biogas cleaning skid along with combined
heat and power generators used to burn the biogas produced by the facility. That process will provide power for up
to 30% of the facility’s electrical demand. It also will produce steam that will deliver heat for the facility’s current
biosolids processing system. Overall, the optimization project will result in reliable, redundant power for the building
while working toward a renewable, sustainable energy source. Ultimately, this will lead to the energy independence
for the facility while reducing its carbon footprint. In fact, a first-in-the-world study conducted two years ago,
concluded that the use of the microorganism, Caldicellulosiruptor bescii, a species of thermophilic, anaerobic
bacteria, can further reduce the biosolids and boost gas production. In other words, these waste-eating bugs can
thrive at very high termperatures without oxygen as they help the facility achieve energy neutrality.
A less esoteric, but equally important aspect of the project is the optimization of the hydraulic capacity of the plant’s
secondary clarifiers. This component of the project was mandated by the Michigan Department of Environment,
Great Lakes, and Energy. To meet the state’s requirement, the project also includes the construction of new
clarifiers and related electrical and mechanical equipment as well as a new sludge pumping station. These upgrades
will extend the existing plant’s piping and open channel networks to the new infrastructure. Additionally, the project
will rehabilitate and reduce hydraulic inefficiencies in the existing clarifiers while exploring different technologies to
ensure that any secondary treatment is performed both efficiently and economically.
To make this ambitious project possible, the Water Resources Commissioner’s staff has been working toward
securing a low-interest $38 million loan from Michigan’s State Revolving Fund. The anticipated interest rate will be
1.875% coupled with a 10% principal forgiveness component. Recognizing there is a financial gap between the cost
of the project and the funds available from the state, it is anticipated that public bond sales will be necessary to
bridge that gap. Additional funding sources for this project will come from sewer rates paid by residents of the City of
Pontiac as well as those in the 13 municipalities served by the Clinton-Oakland Sewage Disposal System. A
breakdown of the apportionment is provided in the attached resolution.
Requested Action: Adopt the resolution as presented pledging the full faith and credit of the County for the
prompt payment of the principal of and interest on a series of bonds issued by the Clinton River Water
Resource Recovery Facility Drainage District in the aggregate principal amount not to exceed $75,000,000
to finance all or part of the costs of the project.
FINAL ORDER OF APPORTIONMENT IN RE CLINTON RIVER WATER RESOURCE RECOVERY FACILITY DRAIN OPTIMIZATION PROJECT
In accordance with a resolution adopted by the Drainage Board for the Clinton River
Water Resource Recovery Facility Drain Optimization Project on the 27th day of June, 2023, the
apportionment of the cost of the Clinton River Water Resource Recovery Facility Drain
Optimization Project to be borne by the several public corporations is as follows:
City of Auburn Hills 5.257% Charter Township of Independence 4.090% City of Lake Angelus 0.000% Village of Lake Orion 0.570% Charter Township of Oakland 1.315% Charter Township of Orion 4.487% Charter Township of Oxford 1.841% Village of Oxford 0.572% City of Pontiac 54.800% City of Rochester 2.486% City of Rochester Hills 10.242% Charter Township of Waterford 11.198% Charter Township of West Bloomfield 3.142% 100.000% DRAINAGE BOARD FOR THE CLINTON RIVER WATER RESOURCE RECOVERY FACILITY DRAIN OPTIMIZATION PROJECT By____________________________ Chairperson Dated: June 27, 2023 Filed: June 27, 2023