The URL can be used to link to this page

Home My WebLink AboutResolutions - 2023.12.07 - 40849 AGENDA ITEM: Appropriating American Rescue Plan Act – Local Fiscal Recovery Funds for Royal Oak Township Drinking Water & Sewer System Improvement Projects DEPARTMENT: Water Resources Commissioner MEETING: Board of Commissioners DATE: Thursday, December 7, 2023 6:00 PM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2023-3580 _ 23-171 Motion to adopt the attached suggested resolution. ITEM CATEGORY SPONSORED BY Budget Amendment Gwen Markham INTRODUCTION AND BACKGROUND The Oakland County Board of Commissioners adopted Miscellaneous Resolution 22-212 recognizing that the United States Treasury allocated Oakland County approximately $244 million of Local Fiscal Recovery Funds (LFRF) established under the American Rescue Plan Act (ARPA) of 2021. Miscellaneous Resolution also explained that under the guidance of the Final Rule, Oakland 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. Residents of the Charter Township of Royal Oak are served by an aging drinking water system that is in dire need of improvement. The existing water mains are at the end of their useful life, as evidenced by the many main breaks that disrupt water service. The project will result in improved public health, safety, and access to high quality drinking water. Existing water mains are undersized and provide extremely low water pressure, in addition to being a major daily inconvenience, and it is insufficient in times of an emergency to adequately fight fires. This project will improve the drinking water system and will include several water main replacements. These improvements to the drinking water system will provide an immediate public health benefit by improving water quality and enhancing reliability. This project will have a direct positive impact on customers’ drinking water by reducing the number of occasions residents are required to boil their water due to water main breaks. The existing drinking water system serves a significantly financially overburdened Township where many of its approximately 2,400 residents were disproportionately impacted by the COVID-19 pandemic. Current water and sewer bills are already unaffordable for many residents and the increase in the rates to finance the cost of this drinking water system improvement project is not a viable option. The total cost of the project is $3,083,000 and the ARPA funding request is $600,000. The project was awarded a Congressional appropriation of $2,400,000 for construction through community project funding in FY 2022 and FY 2023. The Charter Township of Royal Oak lacks the financial resources necessary to cover the cost of required engineering and professional services to complete the construction. The requested $600,000 will be used to cover the cost of engineering and professional services needed to leverage the available federal funding. A sewer system rehabilitation and improvement project is necessary to provide a public health benefit, improve water quality, and enhance system reliability. The existing sewer system serves a financially overburdened municipality of approximately 2,400 residents, many of whom were disproportionately impacted by the COVID-19 pandemic. Current water and sewer bills are already unaffordable for many residents and the higher rates needed to finance the cost of this sanitary sewer system improvement project are not a viable option. The focus of the project is to rehabilitate and improve sections of the township’s sanitary sewer system, including, cleaning and televising of sanitary sewers; manhole inspections along with GIS updates. The project also includes excavation spot repairs and installing full liners and partial spot liners in sewers to extend their useful life. There will be full-time construction inspectors on site to perform administrative tasks related to this project. The total cost of the project is $1,700,000 and the ARPA funding request is $700,000. The Charter Township of Royal Oak received a Clean Water State Revolving Fund loan in the amount of $1,000,0000 for sanitary sewer system rehabilitation and improvements. The requested $700,000 will be used to expand the project scope to include additional portions of the sanitary sewer system. 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 Brian Coburn Amy Ploof ITEM REVIEW TRACKING Aaron Snover, Board of Commissioners Created/Initiated - 12/11/2023 David Woodward, Board of Commissioners Approved - 12/12/2023 David Coulter, Executive's Office Approved - 12/12/2023 Lisa Brown, Clerk/Register of Deeds Final Approval - 12/13/2023 AGENDA DEADLINE: 12/07/2023 6:00 PM ATTACHMENTS 1. Schedule A - Budget Amendment 2. Memo: RO Twp Drinking Water Improvements Project 3. Memo: RO Twp Sewer Rehabilitation Project 4. PowerPoint Presentation COMMITTEE TRACKING 2023-11-29 Finance - Recommend to Board 2023-12-07 Full Board - Adopt Motioned by: Commissioner Gwen Markham Seconded by: Commissioner Yolanda Smith Charles Yes: David Woodward, Michael Gingell, Penny Luebs, Karen Joliat, Kristen Nelson, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ajay Raman, Ann Erickson Gault (17) No: Michael Spisz (1) Abstain: None (0) Absent: (0) Passed December 7, 2023 RESOLUTION #2023-3580 _ 23-171 Sponsored By: Gwen Markham Water Resources Commissioner - Appropriating American Rescue Plan Act – Local Fiscal Recovery Funds for Royal Oak Township Drinking Water & Sewer System Improvement Projects 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 approximately $244 million of Local Fiscal Recovery Funds (LFRF) established under the American Rescue Plan Act (ARPA) of 2021; and WHEREAS that Miscellaneous Resolution also explained that under the guidance of the Final Rule, Oakland 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 NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby appropriates $600,000 in ARPA funds to the Charter Township of Royal Oak for its drinking water system rehabilitation and improvements project. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners hereby appropriates $700,000 in ARPA funds to the Charter Township of Royal Oak for its sewer system rehabilitation and improvements project. 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 township 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 Schedule A - Budget Amendment. Chair, the following Commissioners are sponsoring the foregoing Resolution: Gwen Markham. Date: December 12, 2023 David Woodward, Commissioner Date: December 12, 2023 David Coulter, Oakland County Executive Date: December 13, 2023 Lisa Brown, County Clerk / Register of Deeds COMMITTEE TRACKING 2023-11-29 Finance - Recommend to Board 2023-12-07 Full Board - Adopt Motioned by Commissioner Gwen Markham seconded by Commissioner Yolanda Smith Charles to adopt the attached Budget Amendment: Appropriating American Rescue Plan Act – Local Fiscal Recovery Funds for Royal Oak Township Drinking Water & Sewer System Improvement Projects. Yes: David Woodward, Michael Gingell, Penny Luebs, Karen Joliat, Kristen Nelson, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ajay Raman, Ann Erickson Gault (17) No: Michael Spisz (1) Abstain: None (0) Absent: (0) Passed ATTACHMENTS 1. Schedule A - Budget Amendment 2. Memo: RO Twp Drinking Water Improvements Project 3. Memo: RO Twp Sewer Rehabilitation Project 4. PowerPoint Presentation 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 December 7, 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, December 7, 2023. Lisa Brown, Oakland County Clerk / Register of Deeds Oakland County, Michigan BOARD OF COMMISSIONERS - ARPA - FUNDS FOR ROYAL OAK TOWNSHIP SEWER IMPROVEMENT PROJECT AND WATER IMPROVEMENET PROJECT 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 2024 Amendment FY 2025 Amendment FY 2026 Amendment R ARP Local Fiscal Recovery Fund Non-Departmental FND21285 CCN9010101 RC610313 PRG133095 GRN-1004367 PRJ-17473 610000 Federal Operating Grants $700,000 $-$- R ARP Local Fiscal Recovery Fund Non-Departmental FND21285 CCN9010101 RC610313 PRG133095 GRN-1004366 PRJ-17474 610000 Federal Operating Grants $600,000 $-$- Total Revenues $1,300,000 $-$- E ARP Local Fiscal Recovery Fund Non-Departmental FND21285 CCN9010101 SC788001 PRG133095 GRN-1004367 PRJ-17473 BFA57491 788001 Transfer Out $700,000 $-$- E ARP Local Fiscal Recovery Fund Non-Departmental FND21285 CCN9010101 SC788001 PRG133095 GRN-1004366 PRJ-17474 BFA57291 788001 Transfer Out $600,000 $-$- Total Expenditures $1,300,000 $-$- R Royal Oak Township Sewer Water Resources FND57491 CCN6010101 RC695500 PRG133095 GRN-1004367 PRJ-17473 BFA21285 695500 Transfers In $700,000 $-$- R Royal Oak Township Water Water Resources FND57291 CCN6010101 RC695500 PRG133095 GRN-1004366 PRJ-17474 BFA21285 695500 Transfers In $600,000 $-$- Total Revenue $1,300,000 $-$- E Royal Oak Township Sewer Water Resources FND57491 CCN6010101 SC730373 PRG149662 GRN-1004367 PRJ-17473 730000 Contractual Services $700,000 $-$- E Royal Oak Township Water Water Resources FND57291 CCN6010101 SC730373 PRG149662 GRN-1004366 PRJ-17474 730000 Contractual Services $600,000 $-$- Total Expenditures $1,300,000 $-$- Form DC–001 OAKLAND COUNTY WATER RESOURCES COMMISSIONER Page 1 of 1 Rev.: 02/12/2018 OAKLAND COUNTY WATER RESOURCES COMMISSIONER MEMORANDUM TO: Commissioner Gwen Markharm, Chairperson, Finance Committee FROM: Jim Nash, Oakland County Water Resources Commissioner SUBJECT: ARPA Funds for Royal Oak Township Drinking Water Improvements Project DATE: November 29, 2023 Today, the approximately 2,400 residents of the Charter Township of Royal Oak are being served by an aging drinking water system that is in dire need of repair and/or replacement. Many of the residents in this economically disadvantaged municipality are unable to shoulder the estimated $3,083,000 cost needed to finance the necessary water system improvements. In short, increasing their financial burden through higher water and sewer rates is not a viable option. That’s why I am seeking a $600,000 appropriation in ARPA funds to help relieve the financial weight placed on the Township’s residents for water and sewer services. Fortunately, the Township has received federal funding from the United States Environmental Protection Agency through community project grants for FY 2022 and FY 2023. Adding $600,000 in ARPA funds will make this project a reality and will dramatically improve the services provided to township residents. The anticipated benefits are dramatic. Improvements to public health, safety, and access to high quality drinking water will be realized. Residents will see significant reductions in the number of occasions they are required to boil their water due to water main breaks. Water pressure will be increased to acceptable levels. In addition to eliminating the daily inconveniences associated with low pressure, safety will be improved because the township will have sufficient water pressure in an emergency to adequately fight fires. Requested Action: Appropriate $600,000 in ARPA funds to the Charter Township of Royal Oak to help cover the cost of its drinking water improvements project. Presenters: Brian Coburn, P.E., Manager Amy Ploof, P.E., Chief Engineer coburnb@oakgov.com ploofa@oakgov.com 248-452-1022 248-452-2271 Form DC–001 OAKLAND COUNTY WATER RESOURCES COMMISSIONER Page 1 of 1 Rev.: 02/12/2018 OAKLAND COUNTY WATER RESOURCES COMMISSIONER MEMORANDUM TO: Commissioner Gwen Markham, Chairperson, Finance Committee FROM: Jim Nash, Oakland County Water Resources Commissioner SUBJECT: ARPA Funds for Royal Oak Township Sewer Rehabilitation Project DATE: November 29, 2023 Today, the approximately 2,400 residents of the Charter Township of Royal Oak are being served by an aging sewer system that is in dire need of repair and/or replacement. Many of the residents in this economically disadvantaged municipality are unable to shoulder the estimated $1,860,000 cost needed to finance the necessary system improvements. In short, increasing their financial burden through higher water and sewer rates is not a viable option. That’s why I am seeking $700,000 in ARPA funding to help relieve the financial impact placed on this disadvantaged municipality. Fortunately, in FY 2022, the Township received a $856,184 Clean Water State Revolving Fund loan for sanitary sewer system rehabilitation and improvements. Adding $700,000 in ARPA funds will enhance this project and will significantly improve the lives of Township residents. The anticipated benefits are dramatic. Completion of this project will mean sections of the township’s sanitary sewer system will be cleaned and inspected using closed circuit TV cameras. Needed repairs will be made to extend the useful life of the system. Overall, the sewer system operations will be improved as a result of the increased inspections and repairs. A proactive, rather than reactive, approach is long overdue. Requested Action: Appropriate $700,000 in ARPA funds to the Charter Township of Royal Oak to help cover the cost of its sewer rehabilitation project. Presenters: Brian Coburn, P.E., Manager Drew Sandahl, P.E., Chief Engineer coburnb@oakgov.com sandahlm@oakgov.com 248-452-1022 248-285-8375 248-858-0958 | One Public Works Drive Building 95 West Waterford, MI 48328 | www.oakgov.com/water WRC ARPA Eligible Projects Oakland County Board of Commissioners Finance Committee Meeting November 29, 2023 Introduction Commissioner Nash Overview of Projects Royal Oak Township Royal Oak Township Water System Improvements $600,000 Royal Oak Township Sewer System Improvements $700,000 Total $1,300,000 All Oakland County Communities WRC Hardship Assistance Program – Direct Utility Assistance $200,000 WRC Hardship Assistance Program – Marketing, Communications, Outreach $100,000 Total $300,000 GWK Drainage District (14 Oakland County Communities) George W. Kuhn Drainage District Backflow Prevention Pilot Project $200,000 $1.3M - Royal Oak Township Water System Improvements $600k ................ .......... Drinking Water System Improvements Sewer System Improvements o Administrative services o Engineering services o Leverage $3M in federal grants o Leverage nearly $1M state SRF loan o Expand scope and extent of system improvements $700k Countywide program Customers experiencing hardship that fall within 200-300% poverty level Applications will be processed on a first-come, first- served basis based on current funding Residents may apply once every 12 months Benefits include plumbing repairs, up to three months of water services, and/or water debt forgiveness Program administered by United Way of Southeastern Michigan $300,000 - Hardship Assistance Program $200,000 Direct Utility Assistance $100,000 Outreach and Marketing Compared to Other Water Programs Low-Income Household Water Assistance Program $1,500 towards arrearage (program ended 9-30-2023) 150% FPL GLWA’s Water Residential Assistance Program $2,400 toward arrearage + income-based monthly bill credit + plumbing repairs Short-term two-year program, GLWA service area 200% FPL WRC’s Hardship Assistance Program 3-month bill payments + plumbing repairs + arrearage payments Oakland County ALICE residents 200%-300% FPL ALICE In Oakland POVERTY 9% ABOVE ALICE THRESHOLD 69% BELOW ALICE THRESHOLD 31% ALICE 22% The ALICE Report focuses on key expenses in a survival budget including housing, childcare, food, transportation, health care, technology and taxes. §31% of households in Oakland County fall below the ALICE threshold. §9% of Oakland County households fall beneath the federal poverty level. §The remaining 22% do not have incomes high enough to cover what the ALICE report considers a survival budget. HARDSHIP VIDEO Backflow Prevention Pilot Project: $200,000 Household Application Households in the City Berkely will be invited to apply for the pilot program. WRC Inspection Households with existing leaks or damages will not be eligible to participate until repaired. Household Pays $100 Participant Fee Applied to installation and plumbing services. Approved Plumber Installs Backflow Preventer Valve Service valued at up to $15,000. Household Maintains the Valve No continuing public maintenance.