HomeMy WebLinkAboutResolutions - 2024.07.18 - 41369
AGENDA ITEM: Notice of Intent to Issue Bonds for Improvements to the Huron Rouge Sewage
Disposal System
DEPARTMENT: Water Resources Commissioner
MEETING: Board of Commissioners
DATE: Thursday, July 18, 2024 6:00 PM - Click to View Agenda
ITEM SUMMARY SHEET
COMMITTEE REPORT TO BOARD
Resolution #2024-4263 _ 24-56
Motion to adopt the attached suggested resolution.
ITEM CATEGORY SPONSORED BY
Bonds Yolanda Smith Charles
INTRODUCTION AND BACKGROUND
POLICY ANALYSIS
These bonds would be issued in one or more series in the aggregate principal amount of not to
exceed $30,000,000 for the purposes of (i) defraying all or part of the cost of acquiring, constructing
and installing sewage disposal system improvements and facilities to improve the County’s Huron
Rouge Sewage Disposal System (the “System”) to serve the users of the System and the residents
of the County. Improvements shall include without limitation structural rehabilitation and installation
of pipelining for approximately 16,700 lineal feet of sanitary sewer system interceptor infrastructure
and related structures and facilities. 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.
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
Jen Cook
Eric McGlothlin
Steven Burke
ITEM REVIEW TRACKING
Aaron Snover, Board of Commissioners Created/Initiated - 7/19/2024
David Woodward, Board of Commissioners Approved - 7/19/2024
Hilarie Chambers, Executive's Office Approved - 7/24/2024
Lisa Brown, Clerk/Register of Deeds Final Approval - 7/24/2024
AGENDA DEADLINE: 07/18/2024 6:00 PM
ATTACHMENTS
1. 2024-07-10 EDI Memo for HRSDS Lining
2. HRSDS Map
3. Notice of Intent - Huron Rouge Sewage Disposal System
COMMITTEE TRACKING
2024-07-10 Economic Development & Infrastructure - Recommend to Board
2024-07-18 Full Board - Adopt
Motioned by: Commissioner Christine Long
Seconded by: Commissioner Ann Erickson Gault
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, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ajay
Raman, Ann Erickson Gault, Linnie Taylor (19)
No: None (0)
Abstain: None (0)
Absent: (0)
Passed
July 18, 2024
RESOLUTION #2024-4263 _ 24-56
Sponsored By: Yolanda Smith Charles
Water Resources Commissioner - Notice of Intent to Issue Bonds for Improvements to the
Huron Rouge 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 Huron Rouge 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 the statutory limit for County debt is $10,664,998,561 (10% of State Equalized
Value). As of May 31, 2024, the total pledged debt is $561,317,769 or approximately 5.263% of the
S.E.V.; 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 $30,000,000 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: July 19, 2024
David Woodward, Commissioner
Date: July 24, 2024
Hilarie Chambers, Deputy County Executive II
Date: July 24, 2024
Lisa Brown, County Clerk / Register of Deeds
COMMITTEE TRACKING
2024-07-10 Economic Development & Infrastructure - Recommend to Board
2024-07-18 Full Board - Adopt
Motioned by Commissioner Christine Long seconded by Commissioner Ann Erickson Gault to adopt
the attached Bonds: Notice of Intent to Issue Bonds for Improvements to the Huron Rouge Sewage
Disposal System.
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, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ajay
Raman, Ann Erickson Gault, Linnie Taylor (19)
No: None (0)
Abstain: None (0)
Absent: (0)
Passed
ATTACHMENTS
1. 2024-07-10 EDI Memo for HRSDS Lining
2. HRSDS Map
3. Notice of Intent - Huron Rouge Sewage Disposal System
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
18, 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, July 18, 2024.
Lisa Brown, Oakland County Clerk / Register of Deeds
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 of the Economic
Development and Infrastructure Committee
FROM: Jen Cook, P.E., Civil Engineer III, Project Manager
SUBJECT: Intent to Reimburse Project Costs from Bond Proceeds and Publish Notice of
Intent to Issue Bonds for Improvements to Huron Rouge Sewage Disposal
System
DATE: July 10, 2024
The Huron Rouge Sewage Disposal System (HRSDS) Novi Trunk Extension extends from the north
side of Interstate Freeway I-96 and east of Taft Road to Chattman Street north of Nine Mile Road in
Novi, Michigan. A 2019 closed-circuit television inspection found significant structural defects
including loss of concrete pipe thickness resulting from microbial-induced-corrosion, infiltration,
exposed aggregate, and surface spalling. These defects present long-term concern of the structural
integrity of the sewer pipe. To address these conditions, the proposed HRSDS Novi Trunk Extension
No. 1 Sewer Rehabilitation Project has been developed to reline certain reaches of sewer. A portion
of the HRSDS called the Eleven Mile Arm, is a smaller 12-inch diameter sewer that is in better
condition and is not included in the scope of this project. The sections of HRSDS identified for
rehabilitation are constructed of 36-inch diameter precast reinforced concrete pipe and are
approximately 16,700 feet in combined length.
The Water Resources Commissioner is seeking to publish a notice of intent to issue bonds in an
amount not to exceed $30 million. Publication of a notice of intent, as authorized by the attached
resolution, and expiration of a 45-day referendum period are required before the County can sell and
issue bonds to finance the project.
Bonds will be issued in one or more series and secured by the County’s full faith and credit pledge
and 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 that 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.
Requested Action: Adopt the resolution as presented approving the publication of a Notice of
Intent to Issue Bonds in an amount not to exceed $30 million, to finance a portion of the cost
of improvements to the HRSDS and declaring its intent to reimburse project costs from bond
proceeds.
Presenters: Jen Cook cookjm@oakgov.com 947-955-6560
Eric McGlothlin EMcGlothlin@dickinson-wright.com 248-433-7566
Steven Burke steveb@mfci.com 804-986-1419
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 (the “County”), intends to issue bonds in one
or more series in the aggregate principal amount of not to exceed $30,000,000 for the purposes of (i) defraying all or
part of the cost of acquiring, constructing and installing sewage disposal system improvements and facilities to
improve the County’s Huron Rouge Sewage Disposal System (the “System”) to serve the users of the System and the
residents of the County, which improvements shall include without limitation structural rehabilitation and installation
of pipelining for approximately 16,700 lineal feet of sanitary sewer system interceptor infrastructure and related
structures and facilities, as well as all work, equipment, and appurtenances necessary or incidental to these
improvements, including without limitation the restoration of property, streets, rights of way, and easements affected
by the improvements, and such other System improvements as the County Water Resources Commissioner, acting as
County Agency for the County, shall determine to make and (ii) paying the costs of issuing the bonds.
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, to and for the benefit of the electors
of the County 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, 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 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