HomeMy WebLinkAboutResolutions - 2026.03.11 - 42805
AGENDA ITEM: Notice of Intent to Issue Bonds for Replacement of Lead Service Lines in the City of
Pontiac
DEPARTMENT: Water Resources Commissioner
MEETING: Board of Commissioners
DATE: Wednesday, March 11, 2026 6:00 PM - Click to View Agenda
ITEM SUMMARY SHEET
COMMITTEE REPORT TO BOARD
Resolution #2026-6229 _ 26-7
Motion to adopt the attached suggested resolution.
ITEM CATEGORY SPONSORED BY
Bonds Yolanda Smith Charles
INTRODUCTION AND BACKGROUND
In accordance with the Lead and Copper Rule section of the Michigan Safe Drinking Water Act, the
City of Pontiac has undertaken an ambitious citywide project to replace all lead service lines
throughout the city’s water distribution system. The system is owned by Oakland County with Water
Resources Commissioner Jim Nash acting as the County’s Agent. It is estimated that 500 lead
service lines will be replaced at a total estimated cost of $5,340,200. The Michigan Department of
Environment, Great Lakes, and Energy has awarded $5 million for the project. Of that amount,
$1,258,596 will be from grants, and $1,241,404 will come from a principal forgiveness loan, leaving
a loan balance of $2,500,000. The remaining project costs would be paid with grant funds and
system reserves.
POLICY ANALYSIS
State law requires utilities to inventory and replace known lead service lines at an average rate of
5% per year. The most recent inventory identified 1,048 “known” lead water service lines and 4,540
lines with “unknown” material status, which under the statutory minimum would require
approximately 52 replacements annually. However, this request seeks financing to replace 500 lead
service lines — substantially exceeding the minimum requirement and accelerating progress toward
full compliance. To date, the Oakland County Water Resources Commissioner's Office (WRC) has
replaced approximately 1,200 lead service lines in the City of Pontiac, and based on current field-
verified data, 548 known lead service lines remain. The WRC continues to refine and update the
inventory, particularly within the “unknown” category where material verification is ongoing.
The proposed project supports continued compliance while concentrating work within defined
geographic areas to minimize neighborhood disruption and improve construction efficiency. The
total estimated project cost is $5,340,200, with a proposed bond issuance of $5,000,000.
Approximately half of the project cost will be supported through grant funding and principal
forgiveness from the Michigan Department of Environment, Great Lakes, and Energy (EGLE), with
remaining costs covered through Pontiac’s water system funds held by Oakland County. The project
represents a major public health and infrastructure investment that leverages regulatory compliance,
state financial assistance, and local bonding authority to modernize aging water infrastructure.
Timeline: In accordance with the Drinking Water State Revolving Fund schedule, a notice to
proceed must be issued no later than October 26, 2026 and construction is anticipated to be
completed within approximately 1.5 years.
This item will return to the Board at a future meeting with a bond resolution that authorizes the
issuance of the County’s bonds and sets the parameters within which the bonds may be sold.
FISCAL IMPACT: No Budget Amendment Needed
Committee members can contact Barbara Winter, Policy and Fiscal Analysis Supervisor at
248.821.3065 or winterb@oakgov.com or the department contact persons listed for additional
information.
CONTACT
Zach Earp
Ben Lewis
Eric McGlothlin
Steven Burke
ITEM REVIEW TRACKING
Aaron Snover, Board of Commissioners Created/Initiated - 3/11/2026
David Woodward, Board of Commissioners Approved - 3/11/2026
Walt Herzig, Executive's Office Approved - 3/17/2026
Lisa Brown, Clerk/Register of Deeds Final Approval - 3/25/2026
AGENDA DEADLINE: 02/25/2026 4:30 PM
ATTACHMENTS
1. EXHIBIT A
2. 2026-03-04 Memo Notice of Intent
3. Map of Service Line Replacement Area
COMMITTEE TRACKING
2026-03-04 Economic Development & Infrastructure - Recommend to Board
2026-03-11 Full Board - Adopt
Motioned by: Commissioner Christine Long
Seconded by: Commissioner Linnie Taylor
Yes: Charles Cavell, Ann Erickson Gault, Marcia Gershenson, Robert Hoffman, Karen Joliat,
Christine Long, Penny Luebs, Gwen Markham, Kristen Nelson, Angela Powell, Robert Smiley,
Yolanda Smith Charles, Michael Spisz, Linnie Taylor, Philip Weipert, David Woodward (16)
No: None (0)
Abstain: None (0)
Absent: Michael Gingell, Brendan Johnson, William Miller III (3)
Passed
March 11, 2026
RESOLUTION #2026-6229 _ 26-7
Sponsored By: Yolanda Smith Charles
Water Resources Commissioner - Notice of Intent to Issue Bonds for Replacement of Lead
Service Lines in the City of Pontiac
Chair and Members of the Board:
WHEREAS the County of Oakland (the “County”) is in urgent need of capital improvements to water
distribution system facilities constituting a part of the County’s City of Pontiac Water Distribution
System (the “System”) as described in the notice attached as Exhibit A hereto (sometimes referred to
herein as the “Project”), in order to promote the health and welfare of the residents served by the
System, which capital improvements to such water distribution 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 are expected to be repaid with
revenues of the System and will be secured by 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 as Exhibit A 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: March 11, 2026
David Woodward, Commissioner
Date: March 17, 2026
Walt Herzig, Chief Deputy County Executive
Date: March 25, 2026
Lisa Brown, County Clerk / Register of Deeds
COMMITTEE TRACKING
2026-03-04 Economic Development & Infrastructure - Recommend to Board
2026-03-11 Full Board - Adopt
Motioned by Commissioner Christine Long seconded by Commissioner Linnie Taylor to adopt the
attached Bonds: Notice of Intent to Issue Bonds for Replacement of Lead Service Lines in the City of
Pontiac.
Yes: Charles Cavell, Ann Erickson Gault, Marcia Gershenson, Robert Hoffman, Karen Joliat,
Christine Long, Penny Luebs, Gwen Markham, Kristen Nelson, Angela Powell, Robert Smiley,
Yolanda Smith Charles, Michael Spisz, Linnie Taylor, Philip Weipert, David Woodward (16)
No: None (0)
Abstain: None (0)
Absent: Michael Gingell, Brendan Johnson, William Miller III (3)
Passed
ATTACHMENTS
1. EXHIBIT A
2. 2026-03-04 Memo Notice of Intent
3. Map of Service Line Replacement Area
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 March
11, 2026, 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 Wednesday, March 11, 2026.
Lisa Brown, Oakland County Clerk / Register of Deeds
EXHIBIT A
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 TO THE ELECTORS OF THE COUNTY OF OAKLAND, 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 $5,000,000 for the purpose of defraying all or part of the cost of designing,
acquiring, constructing and installing water distribution system improvements and facilities to improve the
County’s City of Pontiac Water Distribution System (the “System”) to serve the users of the System and
residents of the County, which improvements shall include without limitation the removal, abandonment,
replacement, and installation of water service lines in portions of the System to comply with the Michigan
Department of Environment, Great Lakes, and Energy’s Lead and Copper Rules 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, utilities, 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, 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
Form DC–001
OAKLAND COUNTY WATER RESOURCES COMMISSIONER
Page 1 of 2 Rev.: 02/12/2018
4926-7923-8679 v2 [9007-455]
OAKLAND COUNTY
WATER RESOURCES COMMISSIONER MEMORANDUM
TO: Yolanda Charles Smith, Chairperson of the Economic Development and
Infrastructure Committee
FROM: Zach Earp, Civil Engineer II
SUBJECT: Intent to Reimburse Project Costs from Bond Proceeds and Publish Notice of
Intent to Issue Bonds for a lead service line replacement project within the City of
Pontiac’s Water Distribution System
DATE: March 4, 2026
In accordance with the Lead and Copper Rule section of the Michigan Safe Drinking Water Act, the City of
Pontiac has undertaken an ambitious citywide project to replace all lead service lines throughout the city’s
water distribution system. The system is owned by Oakland County with Water Resources Commissioner Jim
Nash acting as the County’s Agent.
According to the Safe Drinking Water Act, lead water service lines must be inventoried and replaced at a rate
averaging 5% per year. Replacement of known lead service lines in the project area described in the attached
map will ensure that the system continues to comply with this state requirement while minimizing neighborhood
disruption. Within the three distinct areas identified on the map, an estimated 500 lead service lines will be
replaced at a total estimated cost of $5,340,200.
Project costs can be financed most economically and efficiently by Oakland County through the exercise of the
powers conferred by Act 34, of the Public Acts of Michigan, 2001, as amended to issue bonds to finance the
project. The Michigan Department of Environment, Great Lakes, and Energy has awarded $5 million for the
project. Of that amount, $1,258,596 will be from grants, and $1,241,404 will come from a principal forgiveness
loan, leaving a loan balance of $2,500,000.
Bonds will be secured by the County’s full faith and credit pledge and repaid with revenues from 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.
These limited tax general obligation bonds would be issued in one or more series in an amount not to exceed
$5 million. 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 project. The remaining project costs would
be paid with grant funds and system reserves. State law requires publication of a notice of intent and expiration
of a 45-day referendum period before any bonds can be sold.
Requested Action: Adopt the resolution as presented approving the form and publication of notice of
intent to issue bonds of Oakland County in the maximum aggregate principal amount not to exceed $5
million to finance the cost of the lead service line replacement project within the City of Pontiac Water
Distribution System and declaring intent to reimburse project costs from bond proceeds.
Form DC–001
OAKLAND COUNTY WATER RESOURCES COMMISSIONER
Page 2 of 2 Rev.: 02/12/2018
4926-7923-8679 v2 [9007-455]
Presenters: Zach Earp earpz@oakgov.com 248-904-6399
Ben Lewis, P.E., lewisb@oakgov.com 248-292-9357
Eric McGlothlin, EMcGlothlin@dickinson-wright.com 248-433-7566
Steven Burke, steveb@mfci.com 804-986-1419
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Sources: Esri, TomTom, Garmin, Safegraph, FAO, NOAA, USGS, (c) OpenStreetMap contributors, and the GIS User Community1/28/2026
Water Service Line
Replacement Areas
85A
B
C
Replacements
235
Replacements
180
Replacements
0 0.8 1.60.4 Miles
City of Pontiac
Replacement quantities are estimated based on best available
current information.
DWSRF FY26 Project 7911-01