HomeMy WebLinkAboutResolutions - 2026.03.11 - 42806
AGENDA ITEM: Notice of Intent to Issue Bonds for Replacement of the City of Pontiac Sewage
Disposal System
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 #2026-6284 _ 26-8
Motion to adopt the attached suggested resolution.
ITEM CATEGORY SPONSORED BY
Bonds Yolanda Smith Charles
INTRODUCTION AND BACKGROUND
Multiple sections of the City of Pontiac’s sanitary sewer system are in critical condition and require
immediate repair or replacement to ensure reliable service to residents and businesses. To address
these deficiencies, a comprehensive rehabilitation project has been initiated that includes the full
replacement of approximately 10,000 linear feet of structurally compromised sanitary sewer pipes
ranging in diameter from 8 to 15 inches. To finance this critical infrastructure investment, it is
requesting that Oakland County pledge its full faith and credit in support of a Clean Water State
Revolving Fund loan in the amount of $19,400,000. The total loan amount of $19,400,000 includes
$2,522,000 in principal forgiveness, reducing the repayable amount to $16,878,000. In addition, the
City will contribute $1,575,000 from its Capital Reserves (Force Account) toward project costs.
POLICY ANALYSIS
This is a request to undertake a critical sanitary sewer rehabilitation project in the City of Pontiac.
The project strategically focuses on only the most critically rated (Grade 4 and 5) sewer segments,
as identified through the nationally recognized PACP evaluation methodology developed by the
National Association of Sewer Service Companies, ensuring that resources are directed toward the
areas of greatest structural concern. At the same time, implementation across 37 geographically
dispersed sites introduces construction complexity, requiring careful coordination to manage traffic
control, utility conflicts, and potential disruptions to residents and businesses. Despite these
logistical challenges, the investment represents a significant modernization of aging infrastructure
that is expected to reduce inflow and infiltration, minimize emergency repairs, and lower long-term
maintenance costs, thereby improving overall system reliability and operational efficiency.
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
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. 2026-03-04 Memo re Bonding for Pontiac sewer improvements
2. EXHIBIT A
3. CWSRF Project Map
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 #2026-6284 _ 26-8
Sponsored By: Yolanda Smith Charles
Water Resources Commissioner - Notice of Intent to Issue Bonds for Replacement of 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 $19,400,000 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: 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 the City of Pontiac Sewage
Disposal System.
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. 2026-03-04 Memo re Bonding for Pontiac sewer improvements
2. EXHIBIT A
3. CWSRF Project Map
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
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 of the Economic Development and
Infrastructure Committee
FROM: Ben Lewis, P.E., Chief Engineer
SUBJECT: Notice of Intent to Issue Bonds for Pontiac’s Sewage Disposal System Improvements
DATE: March 4, 2026
Multiple sections of the City of Pontiac’s sanitary sewer system are in critical condition and require immediate repair
or replacement to ensure reliable service to residents and businesses. To address these deficiencies, a
comprehensive rehabilitation project has been initiated that includes the full replacement of approximately 10,000
linear feet of structurally compromised sanitary sewer pipes ranging in diameter from 8 to 15 inches.
To finance this critical infrastructure investment, it is requesting that Oakland County pledge its full faith and credit in
support of a Clean Water State Revolving Fund (CWSRF) loan in the amount of $19,400,000. The total loan amount
of $19,400,000 includes $2,522,000 in principal forgiveness, reducing the repayable amount to $16,878,000. In
addition, the City will contribute $1,575,000 from its Capital Reserves (Force Account) toward project costs.
The scope of work includes trench excavation; removal and proper disposal of deteriorated infrastructure;
installation of new sanitary sewer mains; and complete surface restoration. Replacement piping will be installed with
proper bedding and backfill in accordance with industry standards. The project also includes reconnection of all
existing sanitary sewer laterals, manholes, and related appurtenances. Continuous sanitary service will be
maintained throughout construction via bypass pumping operations. Traffic control measures, safe site access, and
public safety protocols will be implemented to minimize disruption to residents, businesses, and motorists.
The sewer segments selected for replacement were evaluated using the National Association of Sewer Service
Companies (NASSCO) Pipeline Assessment and Certification Program (PACP). This nationally recognized rating
system assigns structural grades on a scale of 1 (“Excellent – Minor Defects”) to 5 (“Immediate Attention Required”).
All pipes included in this project have received structural grades of 4 or 5, indicating significant deterioration and
urgent need for rehabilitation. Documented defects include broken pipes, multiple perforations, fractures, sags, and
structural deformities.
Project locations were further prioritized based on challenging soil conditions, limited site access, environmental
considerations, and coordination requirements with existing utilities. In total, the project encompasses 37 locations
throughout the City.
This investment will address critical infrastructure deficiencies, reduce the risk of system failure, and ensure reliable
sanitary sewer service for the residents and businesses of Pontiac for decades to come.
Requested Action: Adopt the resolution as presented authorizing the form and publication of notice of
intent to issue bonds in an amount not to exceed $19,400,000 to finance the cost of improvements to the
City of Pontiac Sewage Disposal System.
Presenters: 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
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, that the County of Oakland, Michigan, intends to issue bonds in
one or more series in the aggregate principal amount of not to exceed $19,400,000 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 removal or abandonment of existing sanitary sewer
mains, manholes, and related structures, acquisition and construction of new sanitary sewer mains,
manholes, and related structures, bypass sewer facilities, and improvements to related structures and
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