HomeMy WebLinkAboutResolutions - 2024.04.11 - 41128
AGENDA ITEM: Notice of Intent to Issue Bonds to Construct Improvements to the City of Pontiac
Sewage Disposal System
DEPARTMENT: Water Resources Commissioner
MEETING: Board of Commissioners
DATE: Thursday, April 11, 2024 6:31 PM - Click to View Agenda
ITEM SUMMARY SHEET
COMMITTEE REPORT TO BOARD
Resolution #2024-3991 _ 24-21
Motion to adopt the attached suggested resolution.
ITEM CATEGORY SPONSORED BY
Bonds Yolanda Smith Charles
INTRODUCTION AND BACKGROUND
The County of Oakland intends to issue bonds in one or more series in the aggregate principal
amount of not to exceed $5 million for the purpose of defraying all or part of the cost of acquiring,
constructing and installing sewage disposal system improvements and facilities to improve the
County’s City of Pontiac Sewage Disposal System.
POLICY ANALYSIS
The City of Pontiac is in urgent need of improvements to the sewage disposal system. The system
is owned by Oakland County. Improvements are needed to promote the health and welfare of
Pontiac residents served by the sewage disposal system in the city’s southeast quadrant, a high-
density neighborhood. The area is bordered by South Blvd (south), Woodward Ave (west), M-59
(north), and Martin Luther King Jr. Blvd (east).
Improvements shall include without limitation the structural rehabilitation and reconstruction of
sanitary sewer mains, manholes, and related structures, installation of structural pipelining for
approximately 46,000 lineal feet of sanitary sewer mains and approximately 2,700 vertical feet of
manhole pipes, pre-liner chemical grouting, bypass sewer facilities, 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.
These limited tax general obligation bonds would be issued in one or more series in an amount not
to exceed $5 million and sold to the State of Michigan pursuant to the state’s clean water revolving
fund program. A portion of the debt is expected to be forgiven by the state at the time the bonds are
issued. The amount borrowed is expected to finance the cost of a portion of the construction project.
Remaining project costs would be paid with grant funds and system reserves.
This item will return to the Board at a future meeting with a bond resolution that authorizes issuance
of the County’s bonds and sets the parameters within which the bonds may be sold.
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
Joel Brown
Eric McGlothlin
ITEM REVIEW TRACKING
Aaron Snover, Board of Commissioners Created/Initiated - 4/11/2024
David Woodward, Board of Commissioners Approved - 4/11/2024
Hilarie Chambers, Executive's Office Approved - 4/12/2024
Lisa Brown, Clerk/Register of Deeds Final Approval - 4/16/2024
AGENDA DEADLINE: 04/21/2024 6:31 PM
ATTACHMENTS
1. 2024-04-03 Map of Project Location
2. 2024-04-03 EDI Memo Re Intent to Issue Bonds
3. 2024-04-03 Notice of Intent to Issue Bonds
COMMITTEE TRACKING
2024-04-03 Economic Development & Infrastructure - Recommend to Board
2024-04-11 Full Board - Adopt
Motioned by: Commissioner Michael Gingell
Seconded by: Commissioner Penny Luebs
Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Kristen Nelson, Christine
Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson,
Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ajay Raman, Ann Erickson Gault,
Linnie Taylor (17)
No: None (0)
Abstain: None (0)
Absent: Karen Joliat, William Miller III (2)
Passed
April 11, 2024
RESOLUTION #2024-3991 _ 24-21
Sponsored By: Yolanda Smith Charles
Water Resources Commissioner - Notice of Intent to Issue Bonds to Construct Improvements
to the City of Pontiac Sewage Disposal System
Chair and Members of the Board:
WHEREAS the County of Oakland (the "County") is in urgent need of sewage disposal system
facilities constituting a part of the County’s City of Pontiac Sewage Disposal 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 sewage disposal
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 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 ¼ 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.
Chair, the following Commissioners are sponsoring the foregoing Resolution: Yolanda Smith
Charles.
Date: April 11, 2024
David Woodward, Commissioner
Date: April 12, 2024
Hilarie Chambers, Deputy County Executive II
Date: April 16, 2024
Lisa Brown, County Clerk / Register of Deeds
COMMITTEE TRACKING
2024-04-03 Economic Development & Infrastructure - Recommend to Board
2024-04-11 Full Board - Adopt
Motioned by Commissioner Michael Gingell seconded by Commissioner Penny Luebs to adopt the
attached Bonds: Notice of Intent to Issue Bonds to Construct Improvements to the City of Pontiac
Sewage Disposal System.
Yes: David Woodward, Michael Spisz, Michael Gingell, Penny Luebs, Kristen Nelson, Christine
Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell, Marcia Gershenson,
Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ajay Raman, Ann Erickson Gault,
Linnie Taylor (17)
No: None (0)
Abstain: None (0)
Absent: Karen Joliat, William Miller III (2)
Passed
ATTACHMENTS
1. 2024-04-03 Map of Project Location
2. 2024-04-03 EDI Memo Re Intent to Issue Bonds
3. 2024-04-03 Notice of Intent to Issue Bonds
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 April
11, 2024, 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, April 11, 2024.
Lisa Brown, Oakland County Clerk / Register of Deeds
CW5901-01
PROJECT
LOCATION
Form DC–001
OAKLAND COUNTY WATER RESOURCES COMMISSIONER
Page 1 of 1 Rev.: 02/12/2018
4891-0679-7485 v2 [9007-452]
OAKLAND COUNTY
WATER RESOURCES COMMISSIONER MEMORANDUM
TO: Commissioner Yolanda Charles Smith, Chairperson, Economic Development and
Infrastructure Committee
FROM: Joel Brown, P.E., Chief Engineer
SUBJECT: Intent to Reimburse Project Costs from Bond Proceeds and Publish Notice of
Intent to Issue Bonds for improvements to the City of Pontiac Sewage Disposal
System
DATE: April 3, 2024
The City of Pontiac is in urgent need of improvements to the sewage disposal system. The system is
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 Pontiac residents served by
the sewage disposal system in the city’s southeast quadrant, a high-density neighborhood.
Improvements in this area will give the greatest benefit to both Pontiac and Oakland County.
Such improvements can be financed most economically and efficiently by Oakland County by issuing
bonds to finance the cost of the acquisition and construction of this project.
Bonds will be secured by the county’s full faith and credit pledge and will be repaid with revenues of
the system. 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 from system funds and those system fund advances would be repaid
from proceeds of the bonds. The county can reasonably expect to seek reimbursement for its
advances to the project as anticipated by the accompanying resolution.
These limited tax general obligation bonds would be issued in one or more series in an amount not to
exceed $5 million and sold to the State of Michigan pursuant to the state’s clean water revolving fund
program. A portion of the debt is expected to be forgiven by the state at the time the bonds are
issued. The amount borrowed is expected to finance the cost of a portion of the construction project.
Remaining project costs would be paid with grant funds and system reserves. State law requires
publication of a notice of intent to issue bonds and expiration of a 45-day referendum period before
any bonds can be sold.
Requested Action: Adopt the resolution as presented approving the publication of a notice of
intent to issue limited tax general obligation bonds in the aggregate principal amount not to
exceed $5 million to finance a portion of the cost of improvements to the City of Pontiac
sewage disposal system and declaring an intent to reimburse project costs from bond
proceeds.
Note: This notice must be not less than ¼ page in size in the newspaper.
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 sewage disposal system
improvements and facilities to improve the County’s City of Pontiac Sewage Disposal 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 structural rehabilitation and reconstruction of sanitary
sewer mains, manholes, and related structures, installation of structural pipelining for approximately
46,000 lineal feet of sanitary sewer mains and approximately 2,700 vertical feet of manhole pipes, pre-
liner chemical grouting, bypass sewer facilities, 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. Sources of repayment of the
principal of and interest on the bonds may also include any other monies lawfully available for the
repayment thereof.
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