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HomeMy WebLinkAboutResolutions - 1983.06.23 - 11580JUNE 23rd 1 1983 RESOLUTION NO. 83166 BY: Planning and Building Committee - Anne M. Hobart, Chairperson IN RE: HURON VALLEY WASTEWATER CONTROL SYSTEM - OAKLAND COUNTY TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS MR. CHAIRMAN, LADIES AND GENTLEMEN: WHEREAS, the City of Novi, City of Wixom and Charter Township of Commerce (herein the "municipalities) are in urgent need of the sewage disposal improvements and facilities to be acquired and constructed in Oakland County and the acquisition of capacity in the existing Huron Rouge Sewage Disposal System in Wayne and Oakland Counties and of capacity in new facilities in Wayne County which are described in the form of proposed contracts hereinafter mentioned as constituting the "Huron Valley Wastewater Control System - Oakland County" (hereinafter sometimes referred to as the "county system" or the "system"), in order to abate pollution of the waters of the county in the • municipalities and thus to promote the health and welfare of the residents thereof, which improvements and facilities would like- wise benefit the county and its residents, and the parties to said proposed contracts have concluded that such improvements and facilities can be most economically and efficiently provided and financed by the County through the exercise of the powers conferred by Act 342, Public Acts of Michigan, 1939, as amended, and especially Section 5a, 5b and 5c thereof; and WHEREAS, the County Drain Commissioner (hereinafter sometimes referred to as the "County Agency") has accordingly caused to be prepared a proposed contract between the county and the municipalities, dated as of June 23, 1983, providing for the acquisition, construction and financing of said county system and has been furnished a form of contract among Wayne County and municipalities therein and Oakland County, dated as of June 14, 1983, and has also caused to be prepared by the county's consulting engineers, plans for the construction thereof and estimates of $17,475,000 as the total cost thereof to Oakland County and its municipalities and forty (40) years and upwards as the period of useflness thereof, all of which have been submitted to this Board of Commissioners for its approval and adoption and have been placed on file in the office of the County Agency, a description of such facilities and said estimates being respectively set forth in Exhibits A and B attached to said proposed contracts; and WHEREAS, this Board of Commissioners desires to pro- ceed with the establishment of said system and the acquisition, construction and financing of said system as provided in said contracts; THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF OAKLAND COUNTY, MICHIGAN, as follows: 1. That this Board by majority vote of its members- elect does hereby authorize and direct that there be established, and there is hereby established, under and pursuant to Act No 342, Public Acts of Michigan, 1939, as amended, a system of sewage disposal improvements and services to serve the City of Novi, City of Wixom and the Charter Township of Commerce, Oakland County, Michigan, to be known as the "Huron Valley Wastewater Control System - Oakland County", which system shall consist of sewage disposal facilities acquired in Oakland County to serve the municipalities and capacities in existing facilities I ,A14 / in Wayne and Oakland County and new facilities in Wayne County as specified and to be located as stated in the forms of pro- posed contracts above mentioned; that the Oakland County Drain Commissioner is hereby designated and appointed as the "County Agency" for said County system; that the said County Agency shall have all the powers and duties with respect to said County system as are provided by law and especially by said Act 342; and that all obligations incurred by the County Agency with respect to said system, unless otherwise authorized by this Board, shall be payable solely from funds derived from State and/or Federal grants or payments to be made by the municipalities as provided in the said contract. 2. That the actions of the County Agency in causing the-plans and estimates for the system to be prepared are hereby ratified and confirmed and said plans and estimates are hereby approved and adopted. 3. That the proposed Huron Valley Wastewater Control Contract - Oakland County among the County of Oakland and the City of Novi, City of Wixom and the Charter Township of Commerce, dated as of June 23, 1963, is hereby approved and adopted, and the proposed Huron Valley Wastewater Control System Financing, Construction and Operating Contract among Wayne County, City of Flat Rook, City of Gibraltar, City of Romulus, City of Woodhaven, Township of Brownstown, Township of Canton, Township of Huron, Township of Northville, Township of Plymouth, Township of Van Buren and County of Oakland, dated as of June 14, 1983, and the Oakland County Drain Commissioner (as the County Agency for the system) is hereby authorized and directed to execute and deliver each of said contracts for and on behalf of the county, in as many counterparts as may be deemed advisable. 4. That the copies of said proposed contracts as submitted to and approved by this Board be identified by endorse- ment thereon by the County Clerk of the statement "Approved by Board of Commissioners on -zriv-e- .23"- , 1983", and each be attached to the minutes of this meeting. MR. CHAIRMAN, on behalf of the Planning and Building Committee, I move the adoption of the foregoing resolution. PLANNING AND BUILDING COMMITTEE I HEREBX APPROVE THE FOREGOING RESOLUTION DariferT, Cobrity .1Pi(ecytr•Ve Date Commissioners, held on the 23rd day of June , 19 83, STATE OF MICHIGAN ) ss: COUNTY OF OAKLAND ) I, the undersigned, the duly qualified and acting County Clerk of the County of Oakland, do hereby certify that the foregoing is a true and complete copy of a resolution adopted at a regular meeting of the Oakland County Board of the original of which is on file in my office. IN WITNESS WHEREOF, I have hereunto affixed my official signature this 23rd day of June , A.D. 1983, County Clerk HURON VALLEY WASTEWATER CONTROL SYSTEM CONTRACT - OAKLAND COUNTY THIS CONTRACT, made as of the 23rd day of June, 1983, by and between the COUNTY OF OAKLAND, a Michigan county corporation (hereinafter called the "county") by and through its County Drain Commissioner as county agency, party of the first part, and the City of Novi, a Michigan city, the City of Wixom, a Michigan city, the Charter Town- ship of Commerce (only on behalf of the area of the township not incorporated as a city or village), a Michigan township (hereinafter called the "municipalities"), parties of the second part. WITNESSETH: WHEREAS, the Board of Commissioners of the County of Oakland has heretofore established the Huron-Rouge Sewage Disposal System to provide sewage disposal services to areas in the County pursuant to Act 185, Public Acts of Michigan, 1957, as amended (hereinafter sometimes referred to as "Act 185 System"); and WHEREAS, the Oakland County Drain Commissioner (hereinafter sometimes referred to as the "county agency") has been designated as the county agency in connection with the establishment, financing, maintenance and operation of county sewage disposal systems pursuant to Act 342, Public Acts of Michigan, 1939, as amended (hereinafter sometimes referred to as "Act 342 " ) ; and WHEREAS, it is necessary for the public health to acquire and construct an interceptor sewer in Oakland County and to acquire capacity in the existing Act 185 System in Oakland County and Wayne County and to acquire capacity in a new sewage treatment plant and related interceptor sewers and other facilities to be located in Wayne County, all as shown on Exhibit "A", hereunto attached and by this refer- ence made a part hereof (herein called the "Oakland County Project"); and WHEREAS, by the terms of Act 342, the county and the municipalities are authorized to enter into a contract for the acquisition, construction and financing of the aforementioned Oakland County Project and for the payment of the cost thereof by the municipalities, with interest, over a period of not exceeding forty (40) years, and the county is then authorized, pursuant to appropriate action of its Board of Commissioners, to issue its bonds to provide the funds therefor, secured primarily by the full faith and credit contractual obligations of the municipalities and, if the bond resolution so provides, secured secondarily by the full faith and credit of the county; and WHEREAS, Act 342 provides, in the opinion of the municipalities and the county, the fairest and most equit- able means of acquiring the Oakland County Project, neces- sary for the public health and welfare of the residents of the county within the municipalities, at the most reasonable cost; and -2- WHEREAS, plans and estimates of the cost and the period of usefulness of the Oakland County Project to be ac- quired, financed and constructed have been prepared by the consulting engineers for the county agency; and WHEREAS, in order to issue such bonds, it is necessary that the county and the municipalities enter into this contract. NOW, THEREFORE, in consideration of the premises and the covenants of each other, the parties hereto agree as follows: 1. The county and the municipalities hereby approve and agree to the acquisition, construction and financing of the Oakland County Project to serve areas in the municipalities under and pursuant to Act 342, and ap- prove the designation of "Huron Valley Wastewater Control System-Oakland County" as the name of said Oakland County Project. The municipalities, by way of compliance with Section 29, Article VII, Michigan Constitution of 1963, con- sent and agree to the establishment and location of the Oakland County Project and any extension, improvement or enlargement thereof within their respective corporate boundaries and to the use by the county of their streets, highways, alleys, lands, rights-of-way or other public places for the purpose and facilities of the Oakland County Project and any improvement, enlargement or extension thereof, and the municipalities further agree that, in order to evidence and effectuate the foregoing agreement and consent, they will execute and deliver to the county such -3- grants of easement, right-of-way, license, permit or consent as may be requested by the county. 2. A. The Oakland County Project shall consist of the interceptor sewers, capacity rights and related facili- ties described and specified on Exhibit "A" and as are more particularly set forth in the plans which have been prepared and submitted by the consulting engineers, which plans are on file with the county agency and are hereby approved and adopted. The Oakland County Project shall be acquired and constructed substantially in accordance with the said plans and in accordance with final plans and specifications to be prepared and submitted by the consulting engineers, but variations therefrom which do not materially change the location, capacity or overall design of the Oakland County Project, and which do not require an increase in the total estimated cost of the said project, may be permitted on the authority of the county agency. Other variations or changes may be made if approved by the county agency and by resolu- tion of the governing bodies of the municipalities and if provisions required by paragraph 5 hereof are made for payment or financing of any resulting increase in the total estimated cost. The estimate of cost of the Oakland County Project and the estimate of period of usefulness thereof as set forth on Exhibit "B", hereunto attached and by this reference made a part hereof, are likewise hereby approved and adopted. 2. B. The acquisition by Oakland County of capacity in the existing Act 185 System located in Oakland County and Wayne County involves the use of the interceptor -4- and related facilities of the Act 185 System in the City of Novi and in Wayne County and the county and said city hereby expressly agree to such use by the county to serve all of the municipalities party hereto. The acquisition by Oakland County of capacity in the Huron Valley Wastewater Control System (herein called the "Wayne County System"), and in particular in the interceptors and related facilities and in the sewage treatment plant to be located in Wayne County as components of the Wayne County System is governed by the terms and provisions of the Huron Valley Wastewater Control System, Financing, Construction and Operation Contract, dated as of June 14, 1983, to which Oakland County is a party and the form of which has been approved by the munici- palities party hereto. A copy of said Contract is attached hereto and it is sometimes referred to herein as the "Wayne Contract." The county and the municipalities acknowledge that the Oakland County Project is a part of the entire "System" and "Project" described in and governed by the Wayne Contract and recognize that the terms "Local Unit" or "Local Units" as used in said Wayne Contract include, and make the terms thereof applicable to, the municipalities, especially as said terms apply to Federal and State grants and other aspects of the acquisition and financing of the Wayne System and the Oakland County Project. 3. The county agency shall take or cause to be taken all actions required or necessary, in accordance with Act 342, to procure the issuance and sale of bonds by the county, in one or more series, in whatever aggregate princi- pal amount is necessary to be so financed to defray the total cost of the Oakland County Project. Such bonds shall -5- the county or the munici- expended with the County by the county or acquisition and Project and to be issued in anticipation of, and be payable from, the payments to be made by the municipalities to the county as provided in this contract, and the said bonds shall be pay- able in annual maturities the last of which shall be not more than forty years from the date thereof. 4. The county agency shall proceed to take con- struction bids for the portions of the Oakland County Project to be constructed and, subject to the sale and delivery of said bonds, enter into construction contracts with the lowest responsible bidder or bidders, procure from the contractors all necessary and proper bonds, cause those portions of the Oakland County Project to be constructed within a reasonable time, and do all other things required by this contract, the Wayne Contract and the laws of the State of Michigan. All certificates for required payments to contractors shall be approved by the consulting engineers before presentation to the county agency and the latter shall be entitled to rely on such approval in making pay- ment. Acquisition of the Oakland County Project shall be deemed to include reimbursement to palities for funds which have been the municipalities in connection construction of the said Oakland include payments in cash to Wayne County as provided in the Wayne Contract. S. In the event that it shall become necessary to increase the estimated cost of the Oakland County Project for any reason, including application of any provisions of the Wayne Contract, or if the actual cost of the said -6- Oakland County Project shall exceed the estimated cost, whether as the result of variations or changes made in the approved plans or otherwise, then (without execution of any further contract or amendment of this contract) county bonds (upon the adoption of an authorizing resolution therefor by the Board of Commissioners) shall be issued to defray such increased or excess cost, to the extent that funds therefor are not available from other sources: Provided, however, that no such increase or excess shall be approved and no such increased or additional county bonds shall be authorized to be issued, nor shall the county enter into any contract for acquisition or construction of the Oakland County Project or any part thereof or incur any obligation for or pay any item of cost therefor, where the effect thereof would be to cause the total cost of the Oakland County Project to exceed by more than 10% the total esti- mated cost as hereinbefore approved, unless the governing bodies of the municipalities shall have previously adopted resolutions approving such increase or excess and agreeing that the same (or such part thereof as is not available from other sources) shall be defrayed by the issuance of increased or additional county bonds in anticipation of increased or additional payments agreed to be made by the municipalities to the county in the manner hereinafter provided: Provided, further, that the adoption of such resolutions by the governing bodies of the municipalities shall not be required prior to or as a condition precedent to the issuance of additional bonds by the county, if the county has previously issued or contracted to sell bonds to pay all or part of the cost of the Oakland County Project and the issuance of the additional bonds is necessary (as -7 determined by the county) to pay such increased, additional or excess costs as are essential to completion of the said Oakland County Project according to the plans as last approved prior to the time when the previous bonds were issued or contracted to be sold. The provisions of this paragraph are intended to be parallel to and coordinated with similar provisions in the Wayne Contract which pertain to the entire System and Project of which this Oakland County Project is a part. As stated in the Wayne Contract, it is understood that the offers of and the agreements for Federal and/or State grants to provide funds for the plan- ning, design and/or construction of the facilities of the entire System and Project as described in the Wayne Con- tract, including the Oakland County Project herein described, will place upon Wayne County and thereby upon Oakland County an obligation to complete as follows: "It is anticipated between the parties hereto that the Project to be built shall qualify for a segmented federal grant in accordance with the Code of Federal Regulations, Part 40 §35.2108. For purposes of financing the Project, it is anticipated that the Project shall be eligible for federal grants with respect to Phase I, Phase II and Phase III in the amounts as noted on Table II. The applicant, Wayne County, in ac- cordance with the requirements of said 05.2108, agrees to complete the treat- ment works regardless of whether or not grant funding is available for Phases II and III, in accordance with the require- ments of said §35.2108." 6. The municipalities agree to pay to the county their respective shares of the cost of the Oakland County Project as hereinafter provided based upon their respective rights to capacity in the facilities of the entire System -8- and Project in Wayne and Oakland Counties. The shares of the cost of the Oakland County Project to be paid by the municipalities are as follows: Share of Cost City of Novi City of Wixom Charter Township of Commerce 45.7468% 24.8168% 29.4364% Total 100.0000% City of Novi City of Wixom Charter Township of Commerce 19.36 cfs. (including 4 cfs. in Wayne County Rouge System) 8.69 cfs. 10.30 cfs. 7. The cost of the Oakland County Project will be defrayed by the issuance of county bonds as provided in paragraphs 3 and 5 hereof. The municipalities hereby covenant and agree to pay their respective shares of the principal of and interest on such bonds and all paying agency and transfer fees and other expenses and charges (including the county agency's administrative expenses) which are payable on account of said bonds (such fees, expenses and charges being herein called "bond service charges"). Such payments shall be made to the county in annual installments which shall be due and payable at least thirty days prior to the day of the month specified in the county bonds as the annual principal maturity date thereof. Such annual installments shall be so paid in each year if any principal or non-capitalized interest on said bonds falls due during the twelve-month period beginning on such principal maturity date in said year, and the aggregate amount of the installments so due and payable shall be at -9- least sufficient to pay all principal and interest thus falling due and all bond service charges then due and pay- able The county agency shall, within thirty days after delivery of the county bonds to the purchaser, furnish the treasurer of each municipality with a complete schedule of the principal of and interest on the bonds, and the county agency shall also, at least thirty days before each payment is due to be made by the municipalities, advise the treasurer of each municipality of the amount payable to the county on such date. If a municipality fails to make any payment to the county when due, the same shall be subject to a penalty of 1% thereof for each month or fraction thereof that such amount remains unpaid after due. Failure of the county agency to furnish the schedule or give the notice as above required shall not excuse the municipalities from the obligation to make payments when due. Payments shall be made by the municipalities when due whether or not the Oakland County Project has then been completed or placed in operation. The foregoing obligations shall apply to all bonds issued by the county to defray the cost of the Oakland County Project. 8. If any municipality shall pay its share of the cost of the Oakland County Project or any portion thereof, prior to the issuance of bonds, then the obligations of the municipalities shall be adjusted accordingly. A municipal- ity may pay in advance of maturity all or any part of an annual installment due the county on the bonds by surrender- ing to the county bonds issued hereunder of a like principal amount maturing in the same calendar year, with all future due interest coupons attached thereto. -10- 9. The proceeds of sale of the bonds shall be used solely and only to pay the cost of the Oakland County Project, and after completion thereof and payment of all costs in connection therewith, any surplus remaining from the sale of the bonds shall be (1) used to purchase the bonds on the open market or (2) retained by the county agency as a reserve for the payment of the bond principal and interest maturities next falling due, and in such event the contract obligations of the municipalities in respect to such bonds or such maturities shall be reduced by the prin- cipal amount of bonds so purchased or of said reserve, said reduction in case of the purchase of bonds, to be applied as to year, in accordance with the year of the maturity of the bonds so purchased. Any bonds so purchased shall be canceled. In the alternative, such surplus may be used, on request of the municipalities and approval by the Board of Commissioners of the county, to extend, enlarge or improve the Oakland County Project. 10. Each municipality, pursuant to the authoriza- tion of Section Sa of Act 342, does hereby pledge its full faith and credit for the prompt and timely payment of its obligations expressed in this contract and shall each year levy a tax in an amount which, taking into consideration estimated delinquencies in tax collections, will be suf- ficient to pay its obligations under this contract becoming due before the time of the following year's tax collections: Provided, however, that the annual tax levy may be reduced by the amount of special assessment installments, principal and interest, to be collected and available for the payment of such obligations and by the amount of cash or other funds -11- which the municipality has on hand (or to its credit in the hands of the county) and available for the payment of such obligations. The governing body of each municipality shall each year, at least 90 days prior to the final date provided by law or charter for the making of the annual tax levy, submit to the county agency a written statement setting forth the amount of its obligations to the county which become due and payable under this contract prior to the time of the next following year's tax collections, the amount of the funds which the municipality has or will have on hand (or to its credit in the hands of the county) which are or will be available for payment of said obligations to the county, and the amount of the taxes next proposed to be levied for the purpose of raising money to meet such obliga- tions. The county agency shall promptly review such state- ment and, if it finds that the proposed tax levy is insuf- ficient, after taking into account such other available funds, it shall so notify the governing body, and each municipality hereby covenants and agrees that it will there- upon increase its levy to such extent as may be required by the county agency. Taxes levied by the municipalities for the payment of their obligations to the county pursuant to this contract shall be subject to limitation as to rate or amount as required by law in effect at the time each levy is to be made. Inasmuch as the Charter Township of Commerce is not entering into this contract on behalf of any area of the township incorporated as a city or as a village which area of the township located in a city or village will not be served by the Oakland County Project, any taxes imposed by -12- the Charter Township of Commerce shall be levied only upon property located in the area of the township outside such a city or village. 11. In the event that a municipality shall fail for any reason to pay to the county agency at the times herein specified, the amounts herein required to be paid, the state treasurer or other official charged with the disbursement of unrestricted state funds returnable to the defaulting municipality pursuant to the Michigan constitu- tion is hereby authorized to withhold sufficient funds make up any default or deficiency in funds. In addition to the foregoing, the county shall have all other rights and remedies provided by law to enforce the obligations of the municipalities to make payments in the manner and at the times required by this contract. It is specifically recog- nized by the municipalities that the payments required to be made by them pursuant to the terms of this contract are to be pledged for the payment of the principal of and interest on bonds to be issued by the county, and the municipalities covenant and agree that they will make their required pay- ments to the county promptly and at the times herein speci- fied, without regard as to whether the Oakland County Project herein contemplated is actually completed or placed in operation; provided, only that nothing herein contained shall limit the obligation cordance with the covenants the Wayne Contract, Wayne of the county to perform in ac- contained herein. As provided in County will also have similar rights as to any amounts due to it. -13- 12. No change in the jurisdiction over territory in a municipality shall in any manner impair the obligations of this contract. In the event all or any part of the territory of a municipality is incorporated as a new city or is annexed to or becomes a part of the territory of another municipality, the municipality into which such territory is incorporated or to which such territory is annexed, shall assume the proper proportionate share of the contractual obligations and right to capacity in the Oakland County Project of the municipality from which such territory is taken, based upon a division determined by the county agency which shall make such determination after taking into con- sideration all factors necessary to make the division equit- able, and in addition shall, prior to such determination, receive a written recommendation as to proper division from a committee composed of one representative designated by the governing body of the municipality from which the territory is taken, one designated by the governing body of the new municipality or the municipality annexing such territory, and one independent registered engineer appointed by the county agency. Each municipality shall appoint its repre- sentative within fifteen (15) days after being notified to do so by the county agency and within a like time the county agency shall appoint the engineer third member. If either municipality shall fail to appoint its representative within the time above provided, then the county agency may proceed without said recommendation. If the committee shall not make its recommendation within forty-five (45) days after its appointment or within any extension thereof by the county agency, then the county agency may proceed without such recommendation. As provided in the Wayne Contract, -14- Wayne County may participate in the foregoing provided procedures. 13. The county shall not be obligated to acquire or construct any facilities other than those described in paragraph 2 hereof. The responsibility for providing such additional facilities as may be needed shall be that of the municipalities which shall have the right to cause to be constructed and maintained, either directly or through the county such necessary additional facilities. 14. After completion, the operation and main- tenance of the Oakland County Project shall be in accordance with applicable agreements between the parties and in ac- cordance with the Wayne Contract. 15. The parties hereto agree that the costs and expenses of any lawsuits arising directly or indirectly out of this contract or the construction or financing of the Oakland County Project, to the extent that such costs and expenses are chargeable against the county or the county agency, shall be deemed to constitute a part of the cost of the Oakland County Project and shall be paid by the munici- palities in the same manner as herein provided with respect to other costs of the Oakland County Project. In the event of such litigation, the county agency shall consult with the municipalities and shall retain legal counsel agreeable to the county and the municipalities to represent the county; provided that if the county and the municipalities cannot agree as to such representation within a reasonable time, -15- the county agency shall exercise its discretion as to the retention of such counsel. 16. If bonds are not sold to finance the acquisi- tion and construction of the Oakland County Project within three years from the date of this contract through no fault of the county or if the Oakland County Project is abandoned for any reason the municipalities shall pay all engineering, legal and other costs and expenses incurred by the county agency in connection with the Oakland County Project and the municipalities shall be entitled to all plans, specifica- tions and other engineering data and materials. 17. All powers, duties and functions vested by this contract in the county shall be exercised and performed by the county agency, for and on behalf of the county, unless otherwise provided by law or in this contract. The parties expressly reserve the right to amend this paragraph and/or subsequently to agree, as provided in paragraph 14, to substitute another public corporate entity or agency in place of the county or the county agency and to delegate thereto all powers, duties and functions of either or both created pursuant hereto or pursuant to law. 18. In the event that any one or more of the provisions of this contract or of the Wayne Contract shall for any reason be held to be invalid, illegal or unenforce- able in any respect, such invalidity, illegality or unen- forceability shall not affect any other provisions hereof, but these contracts shall be construed as if such invalid, -16- illegal or unenforceable provisions had never been contained herein. 19. The county and the municipalities each recog- nize that the holders from time to time of the bonds issued by the county under the provisions of said Act 342, Public Acts of Michigan, 1939, as amended, and secured by the full faith and credit pledges of the municipalities to the pay- ment of the principal of and interest on the bonds as set forth in this contract, will have contractual rights in this contract and in the Wayne Contract and it is therefore covenanted and agreed by each of them that so long as any of said bonds shall remain outstanding and unpaid, the pro- visions of either contract shall not be subject to any alteration or revision which would in any manner adversely affect either the security of the bonds or the prompt pay- ment of principal or interest thereon. The right to make changes in either contract, by amendment, supplemental contract or otherwise, is nevertheless reserved insofar as the same do not have such adverse affect and as provided in paragraph 17 hereof. The municipalities and the county agency further covenant and agree that they will each comply with their respective duties and obligations under the terms of this contract and the Wayne Contract promptly, at the times and in the manner herein set forth, and will not suffer to be done any act which would in any way impair the said bonds, the security therefor, or the prompt payment of principal and interest thereon. It is hereby declared that the terms of this contract and the Wayne Contract insofar as they pertain to the security of any such bonds, shall be deemed to be for the benefit of the holders of the bonds. -17- 20. This contract shall become effective after its execution by each party hereto and the expiration of 45 days after the date of publication of the notice required by Section 5b of Act 342; provided, however, that if, within the 45 day period, a proper petition is filed with the Clerk of a municipality in accordance with the provisions of Section 5b of Act 342 then this contract shall not become effective until approved by the vote of a majority of the electors of the municipality qualified to vote and voting thereon at a general or special election. This contract shall terminate forty (40) years from its date or on such earlier date when the municipalities are not in default hereunder and the principal, interest and bond handling charges on the bonds issued as hereinabove described are fully paid and discharged. It shall be binding upon and inure to the benefit of the parties hereto and their respec- tive successors and assigns. Nothing herein contained, how- ever, shall require the county to acquire and construct the Oakland County Project if it is unable to sell bonds to finance the same. This contract may be executed in any number of counterparts. IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed and delivered by their respec- first above written, CITY OF WIXOM By: Mayor By: COUNTY OF OAKLAND By: Its County Drain Commissioner as County Agency By:. County Drain Commissioner By: Mayor tive duly authorized officers, all as of the day and year City Clerk CHARTER TOWNSHIP OF COMMERCE (only on behalf of the area of the township not incorporated as a city or village) CITY OF NOVI By: By: Supervisor City Clerk By: Township Clerk HURON VALLEY WASTEWATER CONTROL. SYSTEM. Description of OAKLAND COUNTY PROJECT (a) An Interceptor commencing at Sieeth Road near Broadway Road in Commerce Township, thence southerly to Oakley Park Road, thence westerly to Benstein Road, thence southerly along Benstein Road extended to the Chesapeake & Ohio Railroad, thence southeasterly along the Chesapeake and Ohio Railroad, connecting to the existing Novi Interceptor at the 1-96 expressway. (b) An Interceptor commencing at the existing Wixom Wastewater Treatment Plant, thence east along ChaLms Road, thence south along Wixom Road, thence east along Porter Road, and connect- ing to the interceptor described in Section (a) above. (c) An Interceptor commencing at the existing Walled Lake Central High School in Commerce Township, extending westerly along Oakley Park Road, and connecting to the interceptor descrned in Section (a) above. Exhibit "A" Rage 3 1.7e- • ---1 Service Area Limit • Proposed ,Interceptors Volley sys:tern) , 7 ) r!'t ;/4 1-J - -4 44n1417- Excluded from Service Area 1 1 f. NO VI -3 rP • 1 :1 : 1.1 1 • HURON VALLEY WASTEWATER CONTROL SYSTEM PROPOSED AND EXISTING INTERCEPTORS AND SERVICE AREA OAKLAND COUNTY I MICHIGAN Exhibit A t r o ro-- .Z 5I;!, iree6R LAND ,mit,40n1)-::.. ::;., 1-L .fl• ; wrtiTE. LAKE c 044 R.911CE 4 n LYON I oz. L.,04 LIVINGSTON CO. WASKTENAW CO.; NORTHFIELO SALEH 1. _ FiO F` NORTH ARM*JAYNE-- :6 PLYmouirn COUNTY CONNECTION ------ t.0 z N CFS /I: R CH, rt,4 r 4 YOR If auGVSTA _L WASHTENAW CO MONROE CO P4.4.111.,J 0E AR BORN mEiGmTS 1,.. '0A1( LAND - CO. CO T — ) ---HAGGEFIT 1 I 9.. i 1.3VOPtta 4:1 CA,R-Dirve CITY '4,E3TLANO i ... ,,.,,,4 7n,r..c.C!7:, e"':,... r___, '..-.----- ,,,n 51744 etre' Cr OFTqCti me.w.T.P7 OM) ARM .s, LI.L1 r ARBOR PITTSFI PITTSFIELD W EAS TER ItI)ErtTe.4, SCIO SUPERIOR 'fl CANTON HANNAN ROAD---7-7,---5't INTERCEPTOR -- TP 5 ,L ANTI r.;FFLLL LC RD heULL„!4S VAN BUREN 74. A'T 4R4TnE TAYLOR a. irscriaa r .1 SO C ,,1 5:E •nnn cC PIUR9P4 1.40NRof." CO sumPTER HURON VALLEY INTERCEPTOR :41 WAYNE HURON VALLEY WASTEWATER TREATMENT PLANT - zrf TRENTON PUMPING STATION NTON ARM irOUTFALL MINAKKKKAPKee 40C IF It: Cm ,__,M1P11111PA '44 11: T LAKE ERVE HUI32ELL, ROTH a CLARK,ING, Consutting Engineers .c,„, 1P4 miLes HURON VALLEY .WASTEWATER CONTROL SYSTEM PROPOSED WP.nTEWATER TRE.TATIV7,-.11- PLANT At)r\j""-7Rri.--"pTEN,Rr:: WITHIN 'AJAYNE COUNTY, MICHIGAN Exhibit Palic HURON VALLEY WASTEWATER CONTROL SYSTEM Financing, Construction and Operating Contract THIS CONTRACT, Made and entered into this 14th day of June 1983, by and between the COUNTY OF WAYNE, a Michigan charter county corporation (hereinafter referred to as "Wayne"), the City of Flat Rock, the City of Gibraltar, the City of Romulus, the City of Woodhaven, the Township of Brownstown, the Township of Canton, the Township of Huron, the Township of Northville, the Township of Plymouth, the Township of Van Buren, all Michigan public corporations located in the County of Wayne, State of Michigan, (hereinafter sometimes referred to as the "Wayne Local Units"), the County of Oakland, a Michigan county corporation (hereinafter referred to as "Oakland"), represqnting the City of Novi, the City of Wixom, and the Township of Commerce, all Michigan public corporations located in the County of Oakland, State of Michigan, (hereinafter sometimes referred to as the "Oakland Local Units"), and the Village of South Rockwood, a Michigan public corporation located in the County of Monroe, Michigan (hereinafter referred to as "South Rockwood"), all local units in Wayne and Oakland and the Village of South Rockwood are sometimes hereinafter referred to as the "Local Units" or individually as a "Local Unit", WITNESSETH:' WHEREAS, it is immediately necessary and imperative for the public health, safety and welfare of the residents of the above-mentioned cities, village and townships that adequate and proper sewage disposal facilities be acquired and constructed to serve said cities, village and township or parts thereof; and WHEREAS. Wayne under the provisions of Act 185, Public Acts of Michigan, 1957, as amended, has established a Department of Public Works for the administration of the powers confirmed upon the County by said Act; and WHEREAS, said Act authorizes Wayne to acquire, construct, finance, improve, enlarge, extend, and operate such systems; and WHEREAS, Wayne and Oakland and the above-named Local Units are authorized to enter into contracts for the purpose of acquiring, constructing and financing a sewage disposal system and for the payment of the cost thereof, with interest, over a period of not exceeding 40 years, and the counties are then authorized pursuant to appropriate action to issue bonds to provide the funds therefor; and WHEREAS, Oakland under the provisions of Act 342, Public Acts of Michigan 1939, as amended, is authorized to acquire sewage disposal systems as defined in said Act and to improve, enlarge, extend and operate such systems and to enter into contracts with respect to the operation of such systems; and WHEREAS, pursuant to the authority of Act 94, Public Acts of Michigan, 1933, as amended, 'provisions for the issuance of self-liquidating revenue bonds allow for the fixing, collection, segregation and disposition of the revenues of a sewage disposal system and for the payment of said bonds out of the revenues created thereby; and WHEREAS, Wayne, pursuant to the provisions of the FEDERAL CLEAN WATER ACT (33 U.S.C. 1251, etc.) is the applicant for the receipt of federal grant moneys for the purpose of acquiring, constructing, financing and operating sewerai-e facilities; and WHEREAS, the above statutes provide in the opinion of Wayne, Oakland and the Local Units the fairest and most equitable means of acquiring the sewage disposal facilities so vitally necessary for the public health, safety and welfare of the residents of the communities within the area to be served; and WHEREAS, Wayne, through its Department of Public Works, has undertaken to prepare plans and cost estimates for the proposed sewage facilities necessary to adequately serve the Local Units or portions thereof located within the service area; and WHEREAS, Oakland and the Local Units are fully advised as to these plans and cost estimates; and -2- o 34 5,/, SCA.I• II 11-CS No in Di s NoRTIhri E 111P. \\\ Pt...r!OCTH \ \-\\ NI VAN 5C7EN ra, CI3RALTAR. RD ODD tR0%,"NST0',ZN (k ) District Includes: Tt-rp. of Northville Twp. of Plymouth - Twp. of Canton :r.r1). of Van Buren .City of Romulus (Part) Twp. of Huron City of Flat Rock Tu? of BrewnFto,,:n (Part) City of Woodhaven City of Gibraltar HURON VALLEY WASTEWATER coTaoL SYSTEM DISTRICT EXHI B IT 6-13-83 WITHOUT ROCKWOOD s ^3 6 "L.. Hot in Districc N.\ ORT:.?VILT—E I ' \: \: N. \\ CANTON .30 RM73113.: n NN f 103 F, N 111T WAYPr ROCKWOOD .V.. a f`f ._..,..--n-•/"N GIW,LTAF. ) N \X --...,, 3\3N SOUTH ROCK4,00D Service Area Includes: Oakland County .TWp. of Commerce City of Wixom City of Novi Wayne Count y Twp. of Northvilla Twp. of PlyMouth Tvp. of Canton Twp of Van Buren City of Romulus (Part) Twp. of Huron Cit y of Flat Rock Twp. of Brownstown (Part) Cit y of Woodhaven • Cit y of Gibraltar Monroe County Village of South Rockwood (2) mac:: VALLEY WASTEWATER CCTCL =7E:1 sEavicEARFA. EXHIF,LT "B" 6-13-33 EXHIBIT "C" HURON VALLEY WAS1TVATER CONTROL SYSTEM SCHEDULE OF ALLOCATED CAPACITY IN EXISTING SYSTEMS ALLOC. TR.T. CAPACITY ALLOCATED TRT.CAPACITY 'ALLOCATED TRT.C.APACITY ALLOCATED TRT.CAPACITY ALLOCATED TRT,CAPACITY Z w o PURCHASED AVERAGE DAY AVERAGE DAY AVERAGE ANNUAL FLOW AVERAGE ANNUAL AVERAGE ANNUAL i- CAPACITY ANNUAL FLOW SEWERED MASTER METERED SEWERED MASTER METERED EXCESS FLOW H cl COMMUNITY .L1 (1) x 125 gpcd WATER CONSUMPTION (2) x 365 days WATER CONSUMPTION (4) - (3) (1) x 111 gpcd (3) x 365 days .,-. (1) (2) (3) (4) (5) (6) EQUIV. POP, MCD MOD MCI) MCliR MC/YR DOWNR VERIOUGE VALLEY DOWNRIVT ROUGE VALLEY DOWNR VER7ROUCE VALLEY DOWNRIVE0'ROUGE VALLEY DOWNRIVER ROUGE VATEZ:Y.., Novi Sputh RV MEI 10.000 1,250 1.110 456 05 , Northville RV !;.!1 9,000 1,125 0.999 411 365 46 Noz-zilvElle Twp. RV EEI 20,025 2.504 2.223 1914 811 10") .T.I.Zmu V MY1 12,000 1.500 2.3:32 548 436 62 -- — - Plymouth Twp. kV MI 24,000 3.000 2.664 1095 972 123 --- — Canton Twp. CV CLI 1 4,320 1 .196 1.595 655 582 73 I-- Canton Tap. RV LIU 21,555 2,694 2.391 983 L873 110 Van L...1ren Twp. RV fAl 8,000 1,000 0.888 ---- 365 324 41 — — ----- Van Burn Twp. DR ELI 13,000 1.625 1.443 593 527 66 -- TOTALS 131,950 1.625 14.869 1.443 13,204 593 6427 527 4818 66 609 RV - Rouge Valley DR - Downriver MRI Middle Rouge interc,Ttor LRI Lcwer Rouge Interceptor ERI - Eureka Road Interceptor KEY 6-13-83 fij7:;,./4/7Z;,/,./4/XJ,:..(17./. !:/.!".././,'",'.,..!;!;•,,: ...,,.• .;</,`,.! c://,,,,'..1/ Y./ 7 .<<,/,' ,',,,,N,-, I ..L. •., oti X • I ".• 1 y 44 NoArk./Y/LZA C / Y Of` Y4t0uT.W • f 0,5_1 C.,C/.0 rior‘f 4 crrY Li ve I 14 „vaxre-WiLl...e fl WA yAdovrih, y,v,f. • ro y • u ..Z.,"/ Cir.?* ce_..c.r 604 k C- i -/Z , .,••-.. , . ' Z.:LL.,' " • ,.L....' . ' 1 . .•,3 '`.\.1/2 4t.`,-----`.----1,:\ : • ' - ' -......ft... r-772,--:/7/./z,n'>///,, -.,...• , kl s ..,..,1 .. E..- r•ii" • Y.4-ro r •, DoAO rw.., nv"P.L 1 21 1;2 , ' -7- * '.. '•6.,":'-;.-.-"L ,4n.'". k ',••<2.,:•.(-%/":\•n C> - J - r o r'to.er J SZ1 11A • cr,Pro..41.5 fes,r2 ,z:zproz....,s 55PV40E 0/5P(.35,(IL 5 Y5rEA-/ — • 711, . , /./ a crTY 4,,r/S Thy 1.-ie cou.A.er .y. 4. .5,F,a-V60 -•rus ry• of ii 5TL =3 aren:C=InK=.7—.1 F,X11.1.13IT "C" 7., 41,.IA 7" / ty OA' .0• co.vrA.ocr /441 4:947 QA r FS • FRoJECT .51criood o1RE,,1 SERVED PIDS /f- p3. • D/• P57 123. 0/..P.S TA Y. rwP., • '•-• 5 - .r21- ps 7 /23- •OZ• PS /2 VA N 6 ti$ E A/ r I'd 49 R2 - fiS 47, ,„ • ..-7/ /.. - • DE.Sr / Ci r ; 5 ,34 tV14.44 tc 0451 ,4/".c0Li4 PA •44 nT let AZQics 4." TA/G.G 7'4 07ne 3/4r2 Sr, Ca, 47 rt1...e "ioNod 40%),PA • -.1 3eLs.v/4.te P3.02- PSIZ c.= cf.1 =; AO Al !IL CAS 74VP. ' ,P,er• 02 AS 4 AO ro AIN 7H,.`,0, 2 • PS ri •:.= C.=-J r: ?3"3 ."/:•-27. i',/,,,.././......, ..,...4-„, • - r ;7/ 1.7 1. • 1 1 • -V _ ‘3 s• 0 1‘ • :1- () , n A • rOive../.51.1/P5. 74 -ez..crz. sees...1A/0 iwc4r, 1-v%7. c.//, ,••n,0:4 sec./a •c' 5. /7 4,--70' /d) cyr ziir 4436.e.A/ ," 4,1L4...fG4r er • R 0 1 41!- (IS •, /CePr 5EC.5) Voirv At14.4 4,NO /3., 3 a „wc1-.) ' 0 (0,000' Z0,000 *TO 2_4A,W 1°;) v E 5ew4GE Di 5,0 054A ,$)--5rF41 C....1"--1 C-1 .1..0.5r/r10 ,rIc5Pro4 ,1 p1.4 T r,e• cfPro..45 2 •..wrzizc,..,/".1-04.5 / 1/1:-..!"•Z re/. ro .1 5 "-'1), krtNsl ) 1Z2 EXHIBIT "C" HURON VALLEY WASLTTER CONTROL SYSTEM 1.1AXI1 ALLOWABLE RATE OF DELIVERY TO SYSTEM EXIFESIT "0" 0 .... H 0 , H 0 w i.-.. 0. E H I% t., = 46- ,,,, , ,_ w ,,, . 44 , .,..- H -5 01 .4 74 0 ,._.. '7.-- in <0 is-I p -2.. O cr: .7.-_, 0 OH :--; '.7', LI ---; ,T,, < '-' < -J ;:.-, 04 E-4 -. -a a. >4 0 Tf2 ,.. < o ,--, H H 04 < 7.7. 0 , <H 0 LC ,,, < n0 HO H .-4 ' ' E 3 7: C-.) ,{77 < 0 r--1 "--. <01 '6 ''' C.) E-.' 7: L' 1 i--:-1 = '71 .-- "' ;-', •-•• F--, 74 .--7:-1 Z ,'-, .,-.. ,0 00 ... , .. = 847" c-- cc . 1 0> w = - 0<0 ca z w az -2 ‹1 Z Z,-0 i Z Z 0 . P , , < H . : U = 0 ...- 0. H t < .-.3 43 0 H CO=;;TITY c:-..; I crs cfs cfs , cfs crs czs Cfs cfs cfs Cocimerce To,.. 10.30 1 10.30 10.30 I 10.30 10.30 10.30 10.30 1 1,!ixon 8.69 1 8.69 8.6-9 1 8.69 1 8.69 8.69 8.69 1 ! Novi North 1.86 7 .86 1.86 1.86 1.86 1.86 1.86 NOVi South 18.00 18.00 14.00 I 14.00 14.00 14.00 34 .00 I e Northvill Top,11.21 I 14_1,7, ! 4,00 14.21 14.1 14,21 1 14.21 1 ,..T.:-.ourh Twr). - 1 15.95 1 15.95 15.95 15.95 1 15,95 1 Canton Too. 1 45.63 45.63 45.63 45.63 1 I Vac. Huron T.-7o. Romulus 6.80 10.00 1. 10.09 10.00 07 I i HUrell T,..7:". 12.33 12.33 , 17.33 Elat Rock 14.93 14.93 ! 14 -93 i Sou Cr, P,ockwood _I ____ 1,28 1.28 1.28 1 Rock-wod 1 - Brawnstown S. 1 2.7 ] 27.03 27.0327.03 Gibraltar 1 11.00 ! 11.00 F 11.00 1.5rovn.7ton Cent, 1 17.03 17.03 I 17.03 TOTAL FLOW- CFS ,35.55 1 50.06 65.01 1 4.00 [ 115.6 1 149.18 1 207.00 I 208.79 55.06 KEY: cfs = cubic feet per second. 6-13-83 -HURON VALLEY WASTEWATER CONTROL SYSTEM EXHIBIT "E" SCHEDULE OF ESTIMATED INITIAL USER CHARGES COMPLETION OF PHASES I & II INTERCEPTOR & PHASE I TREATMENT PLANT (Treatment at Huron Valley & Detroit Plants) Basic Rate $2,108/Mi11ion Gallons Sewered Master Metered Water Excess Flow Rate $520/Million Gallons Excess Flow* COMPLETION OF PHASE I II & III INTERCEPTORS AND PHASE I TREATMENT PLANT (All treatment at Huron Valley Plant) Basic Rate $1,987/Million Gallons Sewered Master Metered Water Excess Flow Rate $68/Million Gallons Excess Flow* COMPLETION OF PHASES I, II & III INTERCEPTORS AND PHASES IL III TREATMENT PLANT (All treatment at Huron. Valley Plant) Basic Rate with Phase III Federal Grant $2,844/Million.Gallons Sewered Master Metered Water Basic Rate without Phase III Federal Grant (1.25/.40 x Phase III Local) $5,007/Million Gallons Sewered Master Metered Water Excess Flew Rate $92/Million Gallons Excess Flow* *Excess Flow = Total Wastewater Treated - 1.125 Sewered Master Metered Water. Excess Flows will be allocated to communities in accordance with excess flow formula used in Rouse Valley and Downriver Systems. 6-13-83 EXHIBIT 1 of 1 Debt Service 2,003 Operation A Y.aintenancd 970 Replacement 177 Total Basic Services 3,130 2,804,637(1) 1,351,265(.3) '47.261(5) 4,411,613 . . 3.337 TOTAL COST B4.546,183 Debt Service 1,153 Operation A Matnteance 732 Replacement 102 Total Basic Services 1,987 - 2,804,687 1,751.502 2.7,861 4,634.050 6,666 6.666 6.665 6.666 6.666 0550 1CQ5 1,947 739 158 2.944 HnON VALLEY WASTFWATFP CONTROL SISTE,F - EXBIBIT SC7IFIDqE OF ESTMTSO INITIAL USER CHARCES 1982 .FL0W ;ATER 015310 103 CALCITLATION OFTAILS FnASES I & IT CALCBLATIONS ALL 7',_ATB9 BASFD ON 1932 FLOW' & 045E3 CONSATXBTION !MICE 057 ITT C101.71. A RATES - 7.755 020 Total Sewage Flow Rates Eased on Water Conse ,ption Rate -."$7!:!G Flow 1100 Cost 596.22 100.00 696.22 580.18 100.09 650.1,3 Easfc O&M Debt Service Transnortacion Surcharge Total Basic Services Rates based on E:SCeSS Flow Sewage Excess Flow Services Ticcleortation Surcharge TOTAL COST' 2.829 718,90671) 4.926 1.782,957(7) $1,941,863 PITON VALL:TY COSTS 4 LATSS - 5.891 TICO Total Scwase Plow Rates 5,ne3 on Water Cors.r.orida Rates Based on Excess Flow Sewage Excess Flow Services 143 2.574 114,170(6) 7AIL10 COXBISSi) :;1379 %ATES - 14.645 7,30 Tntda Fln;.; Rates Based om Water Cnsnmetion Debt Service (117 Plant) Operataon A!daintemnnc: HV & RV Replacc,ent Plant) Total Basle: Services Rates Sancd on ExcesSloe S, 2.304,DE7() 2,013,121(1),0) 27.56.1f5) 2,103 6.666 5,130.':-19 Excess Flow Services 520 7.147 1,157,327(2)+(9) TOTAL COST $6,483,045 PHASE III CALCULATIONS 117102 VALLEY COSTS A RATBS - 14.646 Total Sewage Flow PHASE T., II A ITT - I PLANT ADDITION - 1932 085F.7 033S117TION Rates Based on Water Bonsuptian Rates Based on Excess Flow Sewage Excess Flow Services 68 7.147 177.352 TOTAL COST $5,011,432 PHASE.113 III InT2,C.E7T01S 11111 AOOITIONS -15,82 ',-;,,,TER Rates Based on Water Be.nsue.nzion De.‘c,,i Service Operation A Re31,1cenent Total B.asic Sr Races Based on Fore .., sewaqe [2,804.637 (10 1) II) 1,797..573 6,9 92 7.147 TOTAL COST $7,160„:50 Races Based on Water Without Phase III So6eral Debt Setvtce Operation & Rep 13cenent [2,904,687 (F:l I) (7.19t.000 iBd 11)[1.21/.12I.! 1,791,373 5,007 6.666 S12.133.7:. E.XHIEIT "E H 2 of 2 6-13-83 6 -13 -83 WITHOUT ROCKWOOD EXHIBIT "E 3 of 3 HURON VALLEY WASTEWATER CONTROL SYSTEn , • EXHIBIT. "E " SCHEDULE OF ESTIMATED INITIAL ANNUAL USER CHARGES ESTIMATED ANNUAL DEBT SERVI C E COST SEVERED PHASE I PHASE III PHASE III MUNICIPALITY WATER LOCAL SHARE LOCAL SHARE FEDERAL SHARE USAGE AVERAGE 1 - % $2,804,687 $1,932,812 $5,263,195 MGD Commerce T. 0,000 0.0000 . - - 1 - Wixom 0.750 11.6063 1 325,520.39 224,327.95 1 - FoMoCo 0.900 13.9276 390,625.59 269,194.32 - Novi 0.330 5.1068 1 143 229,76 98,704.84 I - Novi, S. 0.650 10.0588 282,117.86 1.94,417.69 _ OAKLAND COUNTY 2.63 40.6995 - _ 2,142,094.00 AS Northville T.0.000 0.0000 0.00 0.00 - Plymouth T. 0.125 1.9344 54,253.37 37,388.12 - Canton N. o Jtall ! 9,4641 13.072.16 , 8,974.05 _ Canton, S. (L044 0.680 9_ 19,097.11 13,160.52 _ _ r an Buren, N. 0.0D0 L0.00 0,00 0.00 - 2aLe2_- -5:2----___-11-0-C-,---Th 00 H000 _I -----CLQ_Q__-=-- !Huron T7,7D. 0-376 1 5-81S6 ! 1.3.191.52 112,462.59 - I F l at Rock _......0.=1_1,59 4 1 269,098.50 185,445.58 1 - South Rockwood .0.075 I. 1.1606 1 3_2,551.20 . 22,432.22 Rockwood 'O.DD_M_D.J__--______O_tLn_.___c_:00 - 1 Brownstowm S. pn 78,124.56 53,838.48 - 2---- 225 -E1 -3-L-9-5---- _ Woodhaven 1.15.L., !Gibraltar 4 7 I 7.1660 '2 06,596.05 142,372.$6 WAYNE COUNTY ASSURANCE 3.832 59.3005 - - 3121,101.00 TOTALS 6.462 1100.0000 ! 2,804,687.00 1,932,812.00 5,263,195.00 1 1 PAGE 1 of 3 EXHIBIT "F" SCHEDULE OF INTERcEarma OBLIGATION WITHOUT FINANCING COSTS INTERCEPTORS LOCATED IN WAYNE COUNUY COMMUNIIY PHASE 1 OBLIGATION PHASE II OBLIGATION PHASE ill CBMGATION TOTAL OBLIGATION % of 'Mtal Est.Amt. of % of TEE1 ---"--M3t. Amt. of % of Meal Est. Amt. of % of lotal i Est- Amt. of 1 Co r. Tata/ Cost. Co 5t Total Cost * Cost Total Cost * Cost i Tptal Cost * .........-__+______ 1 amerce 6.00 879,911.90 6.46 1,026,845.62 8.62 1,538,683.00 7.12 3,445,440.52 Wixom 5.06 742,372.28 5.45 866,338.68 7.27 1,298,170.42 6.00 2,9.06,881.38 1.A.P1 N. 1.08 158,896.71 1.17 1WJ,430.37 1.56 277,859.25 1.29 622,186.33 Sold S. 9.04 1,125,392.44 8.73 1,39,712.50 11.71 2,091,413.80 9.94 4,812,518.74 i ';..,,..AND COUNTY 3 1p6 573.33 3,474,327.17 5.206 126.47 I, Nurthville Ti..1) 7.62 1,116,889.95 10.76 1,709,512,18 11,89 2,122,765.01 10.22 4,949,187.14 1 ,,, ,1Iroith Twp 5.77 846,616.75 10.00 1,590,115.31 13.35 2,382,717.86 9.95 4,819,449,92 C,Inton 16.53 2,422,013,94 28.63 4,549,025.81 30.57 5,459,368,95 25.67 12,430,408.70 WinRuren Twp 3.62 530,794.20 4.84 769,207.58 5.50 982,119.12 4.71 2,282,120.90 ir til.:1 us -0- -0- .46 72,A8.91 .38 68,315.70 .29 140,904,61 H0tun T....,p 4.46 654,469,25 2.21 351,752.09 3.64 649,397.80 3.42 1 (n55,619. 1 ,-; rldt, Rock 5.40 792,475.74 2.68 425,925.26 4.40 786,334.88 4-14 2,00';,735,90 35., R:ickw:xxi .46 67,941_67 .'>3 36,516.03 .38 61,415,18 .36 171,872.88 -0- -0- -0- -0- -0- -0- -0- -0- S .49 71,363.77 .45 71,914.44 .06 9,828.50 ,32 153,106.71 W .,.<.:11averi 18.53 2,724,661.45 9.76 1,552,091.15 .33 53,387.77 8.93 4,335,140.37 Gi 3 ta1 1 ar 4.18 613,570.98 1.09 173,859,07 .13 23,761.21 1,63 811,191.26 Isiwn:An Cent. 31,71 1,716,647,55 7.03 1,117, 3.45 .21 36,786.67 5.93 2,671,187.77 _ i 0'01`1,1, 1,:,1WNI: MONTY 11 557,445.35 12,420,261.30 12,647,218.65 36,624,975.30 ...... 'IX frAl, 100.00 14,664,018.68 100.00 15,894,588.47 100.00 1-7,853,345.22 100.00 48,411,952.27 _ ..... INTERCEPTORS 1D55TE3J IN OAKLAND COUNTY 'NORM AM 01E0630 COUNTY INTERCEVfOiZ' - UcJI),..rc&2 26.51 1,387,343.67 3x,:,,1 22.37 1,170,487.04 Novi N 4,79 250,530.02 NY.i S 46 ,33 2,4,90 'D., 0,k06ry0 Coun v 100,00 5 I 232 , 844.81 5,232,344,81 TOTAL OBLIGATION WITHOUT FINANCINr, COSTS . 51,644,797.08 -- C,Alfity 78.81Z 58.79 70.8.4Z ',- , _ c},ai 1,1Ikd f:,,t.lw v 21 19/. 41, 71Z 29 , 16i 5_1±,_62 4-22-83 R(:v, 4-25-83 5-10-33 6-13-83 EXHIBIT "F" PAGE 2 of 3 EXHIBIT "F" SCEEDULE OF INTERCEPTOR OBLIGATION WITH FINANCING COSTS INTERCEPTORS =am IN WAYNE COUNTY COMMUNITY PHASE I OBLIGATION PHASE II OBLIGATION * PRASE III OBLIGATION * TOTAL OBLIGATICN * ,....._.- Phase I 9 36 Months 36 Months Cap, Interest 8 10% = ' 32 Months Cap. Interest 9 10% = 20 Months Cap. Interest 8 10% = Phase II 8 32 Months Oakland County Cost x 1.25000 Cost x 1,20992 Cost x 1.09279 Phase III @ 20 Months — ...... Craoirerce. 1,099,889.88 1,242,401.05 1,681,457.40 4,023,748,33 Wixom 927,965.35 1,048,200.50 1,418,627.65 3,394,793.50 Novi N. 198,620.69 224,155.91 303,641.81 726,618.61 Novi S. 1,656,740.55 1,686,700.47 2,285,476.09 5,630,917.11 TOTAL OAKLAND COUNTY 3,883,216.67 4,203,657.93 5,689,202.95 13,776,077.55 36 Months Cap. Interest 8 12.5$ 32 Months Cap. Interest 8 12.5% 20 Months Cap. Interest 8 12.5% Wayne County_ = Cost x 1.35479 = Cost x 1.29845 = Cost x 1.13004 Northville Twp 1,513,151.34 2,219,716.09 2,398,231.97 6,131,699.40 Pipouth Twp 1,146,987.91 2,064,625.22 2,692,566.49 5,904,239.62 Canton 3,221,320.27 5,906,682.56 6,169,305.29 15,357,303.12 Vanhuren Twp 719,114.67 992,777.58 1,109,833,69 2,227,726.14 km.,,a1us -0- 94,253.07 77,199.47 171,452.54 i ik fron T,,rp 886,668.40 456,732.50 733,845.49 2,077,245.39 Fiat Rock 1,073,618.21 553,042.68 888,589,87 2,515,270.76 So. Rockwood -0- -0- -0- -0- PwkwtAxl -0- -0- -0- -0- Brwnstn S 96,682.92 93,377,30 11,106.60 201,166.82 Wck3h,wen 3,691,344.09 2,015,312.75 65,980.52 5,772,617.36 Gibraltar 231,259.83 225,747.31 26,851.12 1,033,858.26 Brwnstn Cent. 2,325,697.07 1,451,346.97 41,570.41 3,818,614.45 TOT.,,:1,— WAYNE COINTY 15,565,864.71_ 16,079,674.03 14,215,681.12 45,861,219.26 'ITYI'AL 19,449,081.38 20,283,331.96 19,904,834,07 59,637,297.41 Page 3 of 3 •FVIXJI9IT "F" SCHEDULE OF INTERCEPTOR OBLIGATION WITH FINANCING COSTS INTERCEDTORS LOCATED IN OAKLAND COUNTY "NORTH ARA OAEL,TM COUNTY INTERCEPTOR" 32 Months Cap. faerest @ 10 % = Oakland County CoF,t x 1.20992 * TOTALS* - CCEMERCE 1,678,574.85 1,dixom 1,416,195.68 N(,,ii N 303,121.28 Nvi S 2,933,431.78 Toral C4fk1and County 6,331,323.59 6,331,323.59 INTERCEPTORS LCCATED IN 16OWNE COUNTY Sagil 10CK8OOD [ 36 Months Cap. Interest 9 12.5% 32 Monthn Cap. Interest 9 12.5% = Cost x 1.35479 ,,,, Cozt x 1.29845 * 20 Months Cap. Interest 9 12.5% --, _Cost x 1.13004 * _ _ _ ::.0. kockd 92,046.70 47,414.24 76,181.85 215,642.79 iotal Oakland 4,..dyne & So. 19,541,128.08 26,662,069.79 19,981,065.92 66,184,263.79 Rockwocal EXJJIB IT F" 4-22-k fl Rev. 5-10-83 6_13_83 Without Rockwood * At the time these schedules were. prepared, sufficient federal funds had been authorized for Fiscal Years (FY) 1982, 1933, 1984 and 1985 to provide the full 75% funding of eligible costs for all rree phdes of the project, Since federal funds can only be iappropriated on an annoal basis , only 1982 and 1983 funds have been appropriated, whicll ace sufficient to fund enly Phase I at this time. FY 1984 funds should be appropriated sometime near Sept either of 1983 and FY 1985 funds should he appropriated sometime near September of 1984. 1-he schedule for FY 1984 and 1985 federal appropriations appear to be sufficient to provide 75% funding of (digit:A(2 costs of Phase II and III respectively. Wayne County advi.sors have assured that there appears to be little or no chance that the FY 1984 and 1985 appropriations will not be made; however, if FY 1984 and/or 1985 funds were not appropriated, the coat of completing the facilities, as presently designed, are shown on Table IV. TABLE Description of Facilities Included in the Project Phase Interceptors: 1. An interceptor commencing approx. 600' west of the intersection of North- ville Rd. and Seven Mll Rd. in Northville Tap,, and terminating approx. 200' east of the intersection of ccx Rd. and E. N. Hines Dr. in elymoutb Twp. 2. An interceptor commencing at the existing Flat Rock Wastewater Treatment Plant, approx. 100' northest uf the intersection of Van Riper and Heron River Dr., Flat Rock, and terminating at the proposed '.4-a5tewater Treatment Plant, east of the intersection of Jefferson Ave. and Streicher Rd., arovns- town Twp. 3. An interceptor commencing at a pumping station located at Van Horn Rd., and Renck Rd., Woodhaven, continuing west to Allen Rd. thence south to Vreeland Rd. thence east to Jefferson Ave. thence south and terminating at Jefferson Ave. and Streicher Rd., Brmolstown T. 4. An outfall interceptor commencing at the proposed wastewater treatment plant in 3ro=,.-nstown Twp. thence south to Lee Rd. (approx. 1600 ft. cast of Jeffer- son Ave.) thence east and terminating at a point in the Detroit River approx. 3500 ft. east of the west shore line. Treatment Facilities: A secondary wastewater treatment facility located north of Lee Rd. and east of Jefferson Ave., Brownstown TI:p. The pump station, solids handling building, maintenance bldg., Chemical bldg., disinfQcticn tank„ blower bldg. and ash Lagoon are for a design of 2'4 tICD. The primary tanks, biological treatment. tanks, final clarifiers and equipment in the solids handling bldg. are for a design of IZ no. Phase II Interceptors: 1. An interceptor commencing at Five Mile Rd. and Haggerty Rd. in Northville Tsp. thence south to Sclanoicraft Rd. thence west along Sehoelcraft Rd. and Wilcox Rd. and terminating approx. 200 ft. east of E. N. Hines Dr., Plymouth Twp. 2. An interceptor commencin at the Lower EICYOZEZ River and Eannan Rd., Carton Twp., thence south to a point approx. 400 ft. soucO of %;ath'2 Rd., Van 3uren Twp. thence west and south through Huron Clinton Metropolitan Authority's Lower Huron and RUles Metroparks to a point of crossing with the existing 24" Sanitary Flat aock-Huron interceptor sewer located approx. 500 ft. west of the east line of Sect. 16 T. 4 S., R. 9 E., and approx, 100 ft. north Qf the Huron River, Huron Township. 3. An interceptor commencing at Van Horn and Allen Rd. in 1;nodhaven, thence westerly to the Woodhaven westerly boundary, 4. An outfall interceptor from the teminus of the outfall described in Phas,e , I - Interceptors, para. 4, and extending east into the Detroit River an additional 3300 ft. 5. (a) An Interceptor commencing at Sleeth Road near Broadway Road in Coamerce Township, thence southerly to Oakley Park Road, thence westerly to Benstein Road, thence southerly along Benstein Road extended to the Chesapeake S Ohio Railroad, thence southeasterly along the Chesapeake and Ohio Railroad, connecting to the existing Novi. Interceptor at the I-96 expressway. - (b) An Interceptor commencing at the existing Wixom Wastewater Treatment Plant, thence east along Charms Road, thence south along ';,iixom Road, thence east along Porter Road, and connecting to the interceptor des- cribed in Section (a) above. (c) An Interceptor commencing at the existing Walled Lake Central High School in Co7..marce Township, extending westerly along Oakley Park Road, and connecting to the interceptor described in Section (a) above. Phase III Interceptors: I. An interceptor co=encing with the ferminus of the interceptor described in Phase I - Interceptors, para. 1, thence south and east along R. N. Hines Dr., to Haggerty Rd. 2. An interceptor oorrnCcclne with the terminus of the interceptor described in PI-Lase II - Interceptor, para. 2, end thence south and east through Huron Clinton Netrepolifan Authority's dillow and Oakwoods Metroparks to Telegraph Rd., thence east to the interceptor described in Phase I - Inter- ceptors, para. 2. Treatment Facilities: Additional primary tanks, biological treat m ent tanks, final clarifiers and equipment in the solids handling bldg. are ad ,,,.ed to the facility describer-3 in Phase I - Treatment Facilities, to brin::,.7, the total plant capacity to 24 NOD, An administration and laboratory bldg. are added. An addition to the Wayne County's DPU maintenance facility, located at 29500 Wick Rd., Romulus. 6-13-83 Idlt. F0 HUBBELL, ROTH & CLARK,INC. Consulting Engineers / /j / liT-GII-L,AN0 L AK / / //- • COMMEIRCE TIM?. ARM o C.1 ,• A CO M *E1R E fl ETON i n kalr LIVINGSTON CO --r- WASHITEN$W CO E RS TEA E.IGATHK n EL0 E1051T,,HVP._,_ ' C-1 S A L Eld EXISTING INTERCEPTOR OAKLAND CO wArNE CO HAGGERTY 110)ND ARM LIVON€A I 1 0 ALTMOL!TA ,./ 'LI a XIISTING INTtRCEPTOR ----7,--------- V./,-- ..,,, S UP' E 1 I C 0 13 6-11 VAN BuREN c t ; LAP.4. i'"fl 1,41 < LI\ 11( LI t/j - 1 0 A Li I s c " ‘•-•\1 Api-da* 1 I I I '71 114 .11 • 1.1,,C-11C lz -41 .:J C- il A " PIT TSFiEt0 ; / /- 11-E*411.0 DEA.990NN CrET DETA0IT EVTLAND varm-E :F10*uLu.504-71-1:.-TtC t PARK A.__ - - - II: ) -vORn i//// HURON 77;2; vTu... C - 4 A RENTON ARM 14:as C-38 0-6/ C-2A/ 'A LAKE ERIE C-28' C-3A WASH .T.K.,WAW CC; PONROS CO , . i.,o/oRoEzzto C-7 C-68 C-6A LEGEND PHASE 1 2 3 STUDY AREA 2e...NU AZignfilaglig*Aita FoonEONARWASEEMEMEEM 77777. COMMUNMES NOT 777 , / A PARTICIPATING iN HURON VALLEY LOCAL SEWER ( Phase 2 ) 0 .1 2 S 4 5 6 SEAL. E *ILE s 0 4 VINGSTON WAYNE COUNTY DEPARTMENT OF PUBLIC WORKS HURON VALLEY WASTEWATER CONTROL SYSTEM JUNE 1983 TABLE PLAN OF FAG TIES TOTALS 192,105,520 $101,537,790 WITHOUT ROCKWOOD TABLE It HURON VALLEY WASTEWATER CONTROL SYSTE COST OF PROJECT TABLE II The following estimated costs include all surveys, plans, specifications, acquisition of property for rights-of-way, physical construction necessary to acquire and construct the system, the acquisition of all materials, machinery and necessary equipment, and engineering, engineering supervision, administrative, legal and financing expenses necessary in connection with the acquisition and construction of the system and the financing thereof, included capitalized bond reserves, capitalized interest and capitalized operation and expenses as specified. INTERCEPTORS TOTAL TREATI1ENT PLANT TOTAL PEASE I Local $19,541,132 $17,950,000 Federal 37,967,650 37,792,550 $ 57,508,782 $ 55,742,550 PHASE II Local 26,662,071 *Federal 46,296,120 $ 72,958,191 PEASE III Local $19,981,066 $12,370,000 *Federal 41,657,481 33.425 240 $ 61,638,547 $ 45,795,240 TOTAL INTERCEPTORS & TREAT=I PLANT - $293,643,310 *The shares in Phases TI and III, designated as Federal, are only anticipated at this time- To the extent these grant funds would not be made available, the applicant would be required to fund these costs by its available legal authority. 6 -13 -82 TABLE III LOCAL WASTEl.;.ATFR FACILITIES Description of Local Wastewater Faullitivs BROWNSTOWN TOWNSHIP I_TERCEPTORS Treatment Plant COST: Estimated Total Cost Estimated Local Share Estimated Federal Grant COST ALLOCATION: torceptor - Brownstown Twp. - From Lee Road Pump Station 'i, Force ::aip to hV Treatment Plant Wet Well, $ 221,625 $ 64,715 $ 156.910 Brownstown Township 1005 Allen Road Interceptor - Brovnstown Township - Interceptor in Allen Road from Vreeland South to a point 1,527' south of Vreeland, COST: Estimated Total Cost Estimated Local Share Estimated Federal_ Grant $ 512,500 $ 149,650 $ 362,850 COST ALLCCATION Brownstown Township 1005 CM1ERCS TOLSSGIF COLLECTOR SRl:ERS - Cor,imerce Township - 3,375' of 12" Collector Sewers in Commerce Road, Oakley Park Road and South Coo- COST: merce Road Estimated • Total Cost $ 168,750 Estimated Local Share $ 168,750 Estimated Federal Grant 00 COST ALLOCATIC; Commerce Township 1003 CANTr)N TOVNST:TP III=CTPTC:75 Cherry Hill Interceptor - Canton Township - An Interceptor in Cherry Hill Road from the Hannan Road Interceptor to Sheldon Road, COST: Estimated Total Cost Estip.,ete.,l Local Share Estimated Federal Grant COST ALLOCATION: $ 1,952,625 $ 570,165 $ 1,382,460 Canton To,znship 1007, Warren Interceptor - Canton Township - An Interceptor in Warren Road from the Hannan Road Interceptor to Haggerty Rd. COST: Estimated Total Cost Estimated Local Share Estimated Federal Grant $ 2,809,875 $ 820,485 $ 1,989,390 COST ALLOCATION: Canton Township 100% CMALTAR ll:TERCEPTOB. Gibraltar - A Pumpig Station and Force I'tai)n. from South Cibralcar Road toiefferson Avenue. COST: Estimated Total Cost Estimated Local Share Estimated Federal Grant COST ALLOCATIO: Gibraltar $ 681,250 $ 198,925 $ 482,325 100k 6-13-83 6 61.)ia 750,050 J. 656.5) 33,425,240 19,511,16,, (59,:3 13,6D=),072 140,70-3 Censtrnetion DeFian Casitaliced Canita1icd larerean Seh-Teial Los,: Ttlicrest Fornod *Uriacncopriated Fedcral ((r u t Wayne Ccnnty \asarnnan Oakland Cogrty (Inc 10:01100 1,1.'esi))n Casitalined intcres: Soh-Total Less Interest Farnea, Bond Isiale S12,647,219 32 1do) _•_2,%9„551!(("2 1)lo) 15,61)5,7 512,421,261 l)lo) 1311,1 .16,127,059 $11,557 ,a 1.5,65 7 ):,T7 3,474,377 Daia of Issue 11 /45/63 25 Years 3/15/87 Seni -Anrud: 25 '-:c-ars • 9/157.64 5115167 Yatgci5 ' 25 'ig,ars lot Piva..ent Dun (rac,italizindi 5/15/6a Is; ?a ,r1cnt Due . 5/15:5 7 7"..77".8C1'5TC) 3O1 lb5 LaclIit_ies in 11)y:no Count:, .-,. 0akI7,n3 Shnre Fan',lit:,)s in 1.0;) 5le," Construction 7. lesion Caaitcli;:ed Inti.,cest Suh-Tnral Less intercst Bond Isnne 3,121,,577 Nol 7a,n1y 7nCen7ehLeis st 1.)3 ' 5,204,1i'6 aa..c20 No) 6a154.! 465,-1 ,3 Consrructicn 4 2.,-ian 5,232,815 C.apitnIaccd 1,563,9 71(32 'Jo:" SrhaToral . 6,/9 ,,)-6 Less Interest Farne)). 466,422 Bond Z)":5,A0 6,331,324 TOTAL)-l..NT11 1951.33 26,662,071 *Lnanarapriared Fejerdl C,77,6:7 Aapral5iatg..1 41,657,4B1 Wavne Ce):nty 27.717,13113.79'.) (133 .797.) :1911 1..3,159 370.84-1 Oakland County Assnracca 19,073351(1.21 *At the ti171). these sch).)1gl,s i Ocr pr,apare..!, ciii lie ie0t fedecol taalels bad oeen Cuibarized for Fiscol is-.cr s 4)c3 19'62, 1963, 1964 anL 1955 to previd6 the ftll 751; funding ef eligible cia,cs for all three plia,es of the proji,c.t. Since ),-)Lq-01 iund, can oal . be anpro?ciatc.5 en an annoal ba,i,, only 1962 aad 1963 iunds have been appropriated, which ore ..)alt)ii:ienc ta tunj en:y 1 it thIS toys. FY 19054 Panda ,hoold be arpropriotej somarin, near Sentcnb,r a) 1963, Jo," 759.) Sc ,Tprenc59t6e. so6tina n,,c ni 1934, The schedule fol. FY 19:64 and 1955 f.,,,derdl a,•.),eacii to be suit'igioat to prea)ae 79 londing of eligible costs 01 Phases .15 and Ill ras ..a-tiel:, WaYae ncy advisors have ass,ree. ihat theig apo2ars to be little or no that th, 1984 anl '...111 not be made; ho,gv,r, Ii 1,-)64 an2 l585 (cOdy wefe not appropriai,a. the lederal ()rani tl;)g9e)., cu,i oF conTletin)) the .F.anilities as preenity desigoed. 6-13--83 TABLE PC WITHOUT ROCKTMOD 1 June day of this 23rd #83166 June 23, 1983 Moved by Hobart supported by Foley the resolution be adopted. AYES: Olsen, Perinoff, Pernick, Price, Rewold, Wilcox, Aaron, Caddell,' Calandro, Doyon, Foley, Fortino, Geary, Hobart, Jackson, R. Kuhn, S. Kuhn, Lanni, McDonald, McPherson, Moffitt, Nelson, (22) NAYS: None, (0) A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND) 1, Lynn D. Allen, Clerk of the County of Oakland and having a seal, do hereby certify that I have compared the annexed copy of Miscellaneous Resolution #83166 adopted by the Oakland County Board of Commissioners at their meeting -held an with the original record thereof now remaining in my office, and that it is a true and correct transcript therefrom, and of the whole thereof. In Testimony Whereof, I have hereunto set my hand and affixed the seal of said County at Pontiac, Michigan LYNN DyfALLEN, County Cierk/Reyister of De.E WHERFAS, in order to secure Federal grants and finance the local share and to issue bonds, it is necessary that Wayne, Oakland and the Local Units enter into contract, in accordance with the above stated statutory authorities; NOW THEREFORE, in consideration of the premises and the covenants of each other, the parties hereto agree as follows: l. The parties hereto approve the establishment of wastewater disposal system in the counties of Wayne and Oakland, to be known as the Huron Valley Wastewater Control System. The system shall serve an area in Wayne. Oakland and Monroe Counties as described in Exhibit "B" attached hereto and made a part hereof (the "service area"), by construction of the facilities as hereinafter described (the "project"). The term "system'', as used hereinafter, shall consist of those interceptors and treat- ment facilities as are included in the "project". (see. Table I- description). For purposes for financing those facilities located in the County of Wayne there shall be established within Wayne County a district to be known as the Huron Valley Wastewater Con- trol District as described in Exhibit "A" attached hereto and made a part hereof. (the "district"). 2. The project shall be constructed as hereinafter provided in three phases. Such phases and the facilities to be constructed within each phase are described in Table I attached. 3. The parties hereto approve the total estimated cost of the entire project and the cost of each phase set out above in the estimated amounts as set forth in Table IT attached hereto and made a part - hereof. Said estimated costs include all surveys, plans, specifi- cations, acquisition of property for rights-of-way, physical con- struction necessary to acquire and construct the system, the acqui- sition of all materials, machinery and necessary equipment, and engineering, engineering supervision, administrative, legal and fin- ancing expenses necessary in connection with the acquisition and construction of the system and the financing thereof, including capitalized bond reserves, capitalized interest and capitalized operation and maintenance expenses as specified, as well as bond insurance and letter of credit costs, if necessary. 4. It is anticipated between the parties hereto that the Project to be built shall qualify for a segmented federal grant in accordance with the Code of Federal Regulations, Part 40 §35.2108. For purposes of financing the Project, it is anticipated that the Project shall be eligible for federal grants with respect to Phase I, Phase II and Phase Ill in the amounts as noted on Table II. The applicant, Wayne County, in accordance with the requirements of said §35.2108 agrees to complete the treatment works regardless of whether or not grant funding is available for Phases II and 5. Wayne and Oakland will acquire, construct and finance the Project within their respective jurisdictions, and will cause bids to be taken for such acquisition and construction and will issue county bonds in accordance herewith. Wayne and Oakland, with the consent of all Local Units, may hereafter agree, by amendment to this Contract by supplemental contract or otherwise, as provided in Section 33 hereof, to substitute another public corporate entity or agency in place of each county and to delegate thereto all powers, duties, and functions of each county created pursuant hereto or pursuant to law. In no event will any final contract or contracts be entered into for the acquisition and construction of any phase of the Project prior to the sale of bonds necessary for the financing of that phase of the Project. The System shall be acquired in accordance with plans and specifications therefor, as set out in the preamble hereto which documents are approved by this Contract. The Project shall be acquired and constructed substantially in accordance with said plans, and in accordance with the final plans and specifications to be prepared and submitted by the consulting engineers, but variations therefrom which do not materially change the location, capacity or overall design of the Project, and which do not require an increase in the estimated cost of the System, as set forth in Table II, attached and made a part hereof, may be permitted on the authority of Wayne. Other variations or changes may be made as approved by Wayne and by resolutions of the -4- governing bodies of the Local Units effective as required by Section 30 hereof. All matters relating to engineering plans and specifications, together with the making and letting of final contracts or acquisitions and construction of the Project, the approval of the work and materials therefor, and construction supervision, shall be under the exclusive control of Wayne as to those facilities in Wayne, and under the exclusive control of Oakland as to those facilities in Oakland. 6. The Local Units, by way of compliance with Section 29, Article VII, Michigan Constitution of 1963, consent and agree to the establishment and location of the Project and any extension, improvement or enlargement thereof, within their corporate boundaries and to the use by Wayne and Oakland of their streets, highways, alleys, lands, rights-of-way or other public places for the purpose and facilities of the Project and any improvement, enlargement or extension thereof, and the Local Units further agree that in order to evidence and effectuate the foregoing agreement and consent, they will execute and deliver to Wayne and Oakland such grants of easement, right-of-way, license, permit or consent as may be requested by Wayne or Oakland. 7. For the term of this Contract, South Rockwood and all Wayne and Oakland Local Units hereby agree to transmit to the System all wastewater collected within their boundaries in the Service Area, except as provided in Section 12, at reception points in the System designated by Wayne or Oakland, and Wayne agrees that the System shall accept, treat and dispose of such wastewater. Wayne and Oakland agree that all Local Units shall retain the right to deliver wastewater in amounts as hereinafter provided to the System for the term of this contract, including any extension thereof, so long as Oakland and said Local Units shall continue to pay amounts specified herein for such service. Neither Oakland nor any Local Unit shall have the right unilaterally to terminate or reduce such payments, but if such parties hereto shall breach such obligation, Wayne shall be authorized to terminate or reduce such delivery rights or to transfer such delivery rights to other -5- public corporations, whether a party hereto or not, subject to the provisions of Sections 9 and 10. 8. The parties hereto agree that Wayne will be responsible to operate, maintain and administer the facilities located in the District, and Oakland and the Local Units will pay Wayne for such service. Wayne will cause the System to be operated, maintained and administered on the basis of sound public utility operational procedure and in compliance with contractual and legal obligations applicable thereto. Wayne will use its best efforts to keep all facilities of the System in proper repair and working order. However, Wayne shall not be liable to any Local Unit or any individual user therein for any interruption in service. Wayne and Oakland will comply with all applicable federal, state and local regulations relative to the System's construction, operation and maintenance. 9. The parties hereto agree that the Project is immediately necessary to preserve and protect the public health. The parties further agree, however, that the Project is intended to serve the Local Units in the Service Area and not individual users therein, unless by special agreement between Wayne or Oakland and a Local Unit wherein a user is located. Wayne and Oakland shall place upon the Local Units the obligation to require connection to available sewer facilities and, to the extent permitted by law, to prohibit the acquisition or maintenance within the Service Area of any public sanitary sewer or public or private sewage disposal facilities which do not connect to the facilities of the System, except by specific written approval of Wayne and Oakland. The responsibility for collecting wastewater and delivering the same to the System shall be that of Oakland, South Rockwood and each Wayne Local Unit, South Rockwood and the Wayne Local Units shall cause to be constructed and maintained, in accordance with regulations of Wayne, the collector facilities, and Oakland shall place a similar responsibility upon the Oakland Local Units based upon regulations of Oakland which shall conform to and be at least as stringent as regulations of Wayne. Wayne and Oakland shall not be obligated to serve areas outside of the Service Area or to -6- construct facilities other than those described above, but Wayne and Oakland may, with the approval of the Rate Review Committee, contract to serve areas outside of the Service Area, so long as the rights of the parties hereto are not infringed upon, any revenues from such service outside of the Service Area inure to the benefit of the System and appropriate buy-in payment to the System is arranged. 10. Regardless of any provisions in this Contract to the contrary, no Local Unit shall directly or indirectly assign any part of its rights hereunder to any other Local Unit or any other municipality, person or entity without (1) according to all other Local Units a right of first refusal to take the rights proposed to be assigned and (2) receiving Wayne's consent to such assignment, and if any Local Unit involved is an Oakland Local Unit, the consent of Oakland as well. Notice of such proposed assignment, together with all relevant details thereof, shall be sent to Wayne, Oakland and all Local Units by certified mail and unless within forty-five (45) days after such mailing Wayne, and Oakland if involved, shall have sent to the assigning Local Unit written refusal of consent or any Local Unit shall have sent to the assigning Local Unit written offer to take such assignment on terms agreed upon as hereinafter provided, the assigning Local Unit may make such assignment. If any Local Unit desires to secure the rights proposed to be assigned, then in that event, the terms of such assignment shall be mutually agreed upon by the assigning party, the requesting party, Wayne and Oakland if involved. If more than one Local Unit elects to take up such proposed assignment, the assigning Local Unit may negotiate with each Local Unit so electing. The foregoing shall not prevent any Local Unit from providing wastewater disposal service to users within its boundaries in the Service Area as retail customers. 11. The facilities of the System are designed to accept a maximum rate of flow as specified in Exhibit D attached hereto, and each Local Unit shall be limited in its right to deliver wastewater to the System and the various sections thereof, as specified in said Exhibit D, and Wayne and Oakland shall -7-- be responsible to monitor the use of the Project by each Local Unit, using sewage meters or other methods as necessary to do so. Further, the parties hereto recognize that the Project will be constructed in phases, and that certain Local Units will not immediately have access to deliver wastewater to the Project until the entire Project is completed. In consideration of such fact, together with the fact that Oakland, the Wayne Local Units and South Rockwood agree to pay certain capital costs of the Project, as set forth in Exhibit "F", although they may not have immediate access, the County agrees to provide interim rights to deliver wastewater to other systems either owned or controlled by Wayne (namely - those systems commonly known as the Rouge Valley Sewage Disposal and the Downriver Sewage Disposal Systems), or to other systems within which Wayne has contractual rights (the sewage system owned and controlled by the City of Detroit - Department of Water and Sewerage), subject to the provisions of Paragraph 13 hereof. Further, the parties recognize that the providing of any interim rights to deliver wastewater to other systems shall be subject to the capacity of the other systems to accept such flows and to the rights of the parties and communities which contracted and paid for the facilities of said other systems. 12. The parties hereto recognize the existing rights to deliver wastewater to the Rouge Valley or the Down river Sewage Control Systems which 0a-kland and certain Local Units own with respect to either all or a part of the territory within their boundaries or with respect to territory within their boundaries either within or without the Service Area, which rights; all parties hereto agree, are as described in Exhibit C attached hereto. Such Local Units will not be required to deliver wastewater to the Project until such rights are fully utilized as to territory within the Service Area. The parties hereto recognize the right of Wayne to negotiate with any one or more of such Local Units or Oakland for the redistribution or reallocation of such existing delivery rights, within the conditions set forth above. 13. All parties hereto recognize that Wayne will be responsible to operate the System on a non-profit basis for the benefit of the users and is -8- without funds to finance, operate or maintain the System, except as to those funds obtained from grants or from the beneficial users of the System, namely - the Local Units. Therefore, in no event shall Wayne or its General Fund be charged with or liable for the cost of operating, maintaining and administering the System. All Wayne Local Units, South Rockwood, and Oakland, on behalf of the Oakland Local Units, shall pay to Wayne such charges for use of the facilities in the District ("Rates") as shall be sufficient to provide for the payment of all costs of operating, maintaining and administering the System, as well as all debts, service costs, coverage requirements, reserve and re-occurring finance costs in connection with any portion of the System financed by revenue bonds. Furthermore, those users of the Huron Valley Wastewater Control System whose sewage is treated on an interim basis as set forth in Section 11 supra, shall be deemed users of the Huron Valley Wastewater Control System, and shall pay the Huron Valley Wastewater Control System rates and charges as established by Wayne from time to time. Rates shall reflect not only current cost experience, but shall also recognize reasonably estimated cost levels during any period for which such Rates are applied, and may include charges paid to other systems for services provided by such other systems. Rates may be adjusted by Wayne from time to time to meet the foregoing costs. The initial Rates estimated to be as set forth in Exhibit "E", attached hereto and made a part hereof. However, these Rates will be as identified in the user charge system as approved by the U.S. Environmental Protection Agency. Operation and maintenance expenses shall include such amounts as in the judgment of Wayne are necessary to pay for any losses or legal expenses arising from the operation and maintenance of the System, including repair and replacement of System equipment, accessories, or appurtenances necessary to maintain the capacity and performance for which the facilities were originally designed and ccnstructed. In addition thereto, the Rates shall include such amounts as are necessary to pay similar expenses incurred with respect to construction or improvements made to the System. The funds obtained by Wayne from Rates -9- shall only be used for purposes necessary to the operation, maintenance or repair or replacement of the facilities as originally designed and constructed, 14. Oakland, South Rockwood and Wayne Local Units shall pay Wayne monthly in accordance with the Schedule of Rates established by Wayne. The monthly payments shall be accompanied by using a report on forms provided by Wayne showing water consumption. The payment and the report are due within forty-five (45) days after the month of service. The Wayne Local Units, South Rockwood and Oakland agree to pay these Rates promptly, without reduction, without regard to whether or not charges for the user of the System have been collected from individual users within their respective units, and without regard to any failures of the System. Any such Rates unpaid within forty-five days from the month of service shall be subject to a late charge of 1 aner 1/2 percent of each month or fraction thereof, for which such Rates remain unpaid. The payment of such Rates by the Wayne Local Units, South Rockwood and Oakland shall be a general obligation of such parties, and Wayne shall have the right to utilize any method permitted by law for the collection of such Rates, 15. Each Local Unit shall adopt a User Charge system with respect to its users which complies with the rules and rnulations promulgated by Wayne and the Federal Environmental Protection Agency (the "EPA"), with respect to a User Charge system. The User Charge system of each Local Unit will be based upon the quantity of wastewater delivered to the System for treatment, together with surcharges to be applied to individual users whose discharges of specified pollutants exceed a specified strength. Wayne shall prepare schedules specifying pollutants and discharges to be subject to surcharge and defining normal loadings with respect to specified pollutants. The Local Units recognize that their individual User Charge systems shall be subject to applicable EPA User Charge rules and regulations and shall establish charges to be collected from individual users in amounts sufficient to pay its Rates to Wayne when due. There is reserved to all Local Units the right to fix charges to their individual users in such amounts as will produce additional -10- moneys which may be used by the Local Units for any lawful purpose relating to sewage disposal services rendered by them on behalf of their own individual sewage disposal systems. Oakland shall contract with the Oakland Local Units to insure that such Local Units abide by the provisions of this Section. 16. The parties hereto agree that there shall be established a permanent Rate Review Committee ("Committee") for the purpose of assisting Wayne in efficiently operating, maintaining and administering the System for the benefit of the parties hereto. The Committee shall consist of an appointee from each Local Unit, Wayne and Oakland and shall be provided with such clerical and secretarial personnel and such other funds as may reasonably be required to carry out its functions. The Rate Review Committee will serve without compensatio'n, except that reimbursement of expenses may be provided. These costs shall be included in the Rates and considered a cost of the administration of the System as a whole. The Committee shall have access to the books, records and financial reports of the System. Wayne shall annually submit for approval to the Committee the projected budget for the System, seting forth in such detail as the Committee shall request projected costs of operating, maintaining, administering and paying all expenses of the System. Should a dispute arise between Wayne and the Committee relative to such budget, either as a whole or in any part, such dispute shall be submitted for final resolution to whatever agency in leviayne County shall be authorized by law to make final determinations as to the Rates of the System. Wayne shall, as part of the operation and administration of the System, select an outside auditor to conduct an annual audit. The results of the annual System audit shall be transmitted to each Local Unit, Oakland and the Committee. The outside auditor selected wilt be chosen for a period of not less than three (3) consecutive years, nor more than eight (8) consecutive years. Prior to initiating an audit selection process, the Committee will be notified by Wayne and requested to submit within thirty (30) days the names of a minimum of three (3) firms of outside auditors acceptable to Oakland and the Local Units. The names of auditors -11- recommended by the Committee will be included by Wayne with other outside auditors in the selection process leading to the naming of the outside auditor. Wayne shall develop a scope of work with respect to the annual audit and shall include within said scope of work the reasonable requests submitted by the Committee. Wayne will then request the qualified outside auditors named by Wayne and the Committee to submit proposals to perform the annual audit. Wayne will select a minimum of three (3) proposals from outside auditors whose names will be submitted to the Committee, and the Committee will have thirty (30) days to register any objection to Wayne with respect to those auditors selected prior to final selection by Wayne. Further, the Committee shall forward to Wayne recommendations with respect to the efficient and economical operation, maintenance and administration of the System. Such recommendations shall be considered by Wayne for implementation and shall be made a part of any reports by Wayne with respect to the operation, maintenance and administration of the System. 17. Wayne shall establish general System use rules and regulations consistent with 33 USC 1251, etc., (the Federal Clean Water Act) and the EPA rules and regulations controlling the quantity and quality of the discharge of the users to the System. Nothing herein shall prohibit Wayne from establishing rules and regulations more stringent than those required by the aforesaid Act, if, in the judgment of Wayne, ,stricter rules and regulations are necessary to protect the integrity of the System. Further, Oakland and each Local Unit agree to enforce such rules and regulations as Wayne shall from time to time adopt. 18. Except with respect to those areas within the Service Area being served at the time of the execution of this Contract by combined sewers, which areas may continue to be served by existing combined sewage facilities, Wayne shall prohibit the connection either directly or indirectly of storm water sewers to the System and shall further prohibit and prevent as nearly as is practicable the introduction of storm water into the System. It shall be Wayne's responsibility to monitor the System to carry out the prohibition and prevention of the entry of storm waters into the System. Each Local Unit by -12- the adoption of the required ordinances, shall comply with Wayne's regulations in this regard. Oakland will impose similar requirements with respect to the Oakland Local Units. 19. Wayne shall have the right to deny to any Local Unit or Oakland the use of the system, should such Local Unit or Oakland be delinquent for a period of 90 days in payment of any of the charges due from it to Wayne hereunder, such denial to continue until such delinquency ceases. The foregoing shall be accomplished by Wayne by any lawful means. 20. Each Local Unit, and Oakland for the Oakland Local Units, shall be responsible for the character of the wastewater originating within its boundaries, and shall comply with Wayne's standards, rules and regulations controlling discharge of wastewater to the System, specifically industrial and/or commercial wbstes. Each Local Unit and Oakland, by contract or by the adoption of appropriate ordinances, shall enforce such rules and regulations and shall provide for and collect appropriate surcharges. If the character of wastewater transmitted from any Local Unit or Oakland shall be such that it imposes an unreasonable additional burden upon the System, then a surcharge over and above the regular Rates shall be established by Wayne for the receipt of such discharge, or if such discharge cannot be received by the System, Wayne may require that such discharge be pretreated before transmission to the System. If necessary, Wayne shall have the right for the protection of the System and the public health or safety, to deny discharge of wastewater to the System, and Wayne may take all steps necessary to accomplish such denial. 21. Wayne and Oakland each agree to finance the Project in accordance with any lawful means available to it. In accordance with that agreement, Wayne and Oakland each will take the following general steps: (a) Wayne and Oakland each will submit to its Board of Commissioners, at appropriate times, resolutions or ordinances providing for the issuance of bonds necessary to finance the various phases of the Project, and will request that the limited tax full faith and credit of each -13-- County be pledged as secondary security for all such financings by each County other than revenue bonds. After due adoption of the appropriate resolutions or ordinances, Wayne and Oakland each will take all necessary or legal procedures and steps to effectuate sale and delivery of the bonds at the lowest possible cost. Wayne will apply for and make appropriate use of all available federal grants to pay for a part of the cost of the Project, and South Rockwood and Oakland each will pay Wayne for its part of the interceptor cost of the Project, as set forth on Table (b) Wayne will take all steps necessary to take bids for and enter into final construction contracts for the acquisition and construction of the facilities of the Project in the District as specified and approved in this Contract, ih accordance with the plans and specifications therefor as approved herein. Said contracts shall specify completion dates presently estimated to be as follows: Phase I: December 1, 1986 Phase II: December 1, 1986 Phase III: December 1, 1987 (Interceptors) April 1, 1988 (Treatment Plant) (c) Wayne will require and procure from contractors undertaking the actual construction and acquisition of the said facilities necessary and proper bonds to guarantee the performance of such contract or contracts and such labor and material bonds as may be required by law, in amounts and in such forms as may be approved by Wayne. (d) Oakland will take the same steps as Wayne, as set forth in subsections (b) and (c) above, in constructing the facilities in the Project to be located in Oakland to be a part of the System. (e) Wayne will upon rec--ipt of the proceeds of sale of the bonds, federal grant funds and cash payments comply with all provisions and requirements provided for in this agreement, any grants and any bond -14- resolution and in other applicable regulations relative to disposition and use of the proceeds of such funds. (f) Wayne may temporarily invest any bond proceeds or other funds held by it for the benefit of Oakland and the Local Units as permitted by law, and investment income shall accrue to and follow the fund producing such income. Neither Wayne, Oakland or the Local Units shall invest, reinvest, or accumulate any moneys deemed to be proceeds of bonds pursuant to Section 103(c) of the Internal Revenue Code of 1954, as amended, and the applicable regulations thereunder, in such a manner as to cause the bonds to be "arbitrage bonds" within the meaning of said Section 103(c) and the applicable regulations thereunder. (g) Oakland the the Local Units hereby agree that they will comply with all state and federal requirements in connection with grants to be secured to pay a part of the cost of the System, including specifically the establishment of appropriate User Charge and industrial cost recovery systems and the adoption of an appropriate sewer use ordinance, in accordance with prescribed timetables. (h) It is understood among the parties that certain local wastewater facilities must be constructed in order for certain portions of the Project to be eligible for federal grants. The description• and estimated costs and cost distributions of these local facilities are shown on Table Ill attached. The Local Units, which will utilize the local facilities, agree to construct these facilities under separate financing agreements in accordance with the requirements of the MDWR. 22. Wayne will finance the various phases of the Project by means of revenue bonds and contract bonds and cash payments and grants all substantially as set forth on Table IV attached hereto. The revenue bonds shall be payable solely from the Rates charged to Oakland and the Local Units for the use of the System. The balance of the costs will be paid by South Rockwood and Oakland on behalf of the Oakland Local Units and from contract bonds payable primarily from fixed obligations allocated to Wayne Local Units, -15- which obligations will be supported by the limited tax full faith and credit pledges of each such Local Unit. The manner of payment of the cost of facilities comprising the three phases of construction of the Project are estimated as set forth on Table IV attached hereto, and will be established in final form as soon as practicable and made a part hereof. 23. Oakland agrees that it will timely use any available legal means to sell its own bonds to construct that portion of the Project located in Oakland County. Oakland further agrees to take such actions as are necessary to have cash available for payment to Wayne in a timely manner. The required payments by South Rockwood and Oakland to Wayne shall be either in a lump sum or as called for by Wayne in accordance with construction schedules. However, any amounts paid by South Rockwood and Oakland to Wayne shall be invested by Wayrie to the extent possible, and the interest thereon shall accrue to the account of the party making such payments. Wayne will not enter into any construction contracts for the System until bonds are sold by South Rockwood or Oakland as such sales are needed to assure payment of their respective obligations. 24. It is understood and agreed that the contract bonds of Wayne above referred to will be issued in anticipation of the Wayne Local Units contractual obligations, herein set forth, and said Wayne Local Units will pay an amount equal to each annual maturity on the first day of each month prior to the principal due dates of said bonds, and said Wayne Local Units shall also pay to Wayne in addition to said principal installments, on the first day of each month prior to an interest due date, as accrued interest on the principal amount remaining unpaid, an amount sufficient to pay all interest due on the next succeeding interest payment date on said bonds from time to time outstanding. From time to time as Wayne is billed by the paying or registrar agent or agents for the bonds to be issued for their services as paying agent, or registering bonds, and as other costs and expenses accrue to Wayne from handling of the payments made by the Wayne Local Units, or from other actions taken in connection with said bonds, Wayne shall notify said -16- Wayne Local Units of the amount of such fees as other costs and expenses, and said Wayne Local Units shall, within thirty (30) days from such notification, remit to Wayne sufficient funds to meet such paying fees and other costs and expenses. Wayne may, at its option, include bond handling costs, bank letters of credit expenses and other annual charges. The percentage share of each Local Unit of such debt service costs and other expenses in connection with contract bonds shall be fixed and established for the life of said bonds. Exhibit F attached hereto sets forth such based on an estimate of anticipated costs and expenses. Should cash payments be required in addition to the amounts percentages specified in the preceding paragraphs to meet addclitional costs of constructing the contract bond financed portion of the System, such parties so obligated shall, upon written request by Wayne, furnish to Wayne written evidence of their agreement and ability to make such additional cash payments, and Wayne may elect not to proceed with the acquisition or financing of the contract bond financed portion of the System until such written evidence satisfactory to Wayne, has been received by it. Such parties shall pay to Wayne such additional cash payments within thirty (30) days after written request for such payment has been delivered to them by Wayne. Wayne shall, within thirty (30) days after the delivery of each series of the contract bonds hereinbefore referred to, furnish the Wayne Local Units with a complete schedule of maturities of principal and interest thereon, and Wayne shall also at least thirty (30) days prior to each interest and principal due date, advise such Local Units in writing, of the exact amount of principal and interest due on the said bonds on the next due date. If any principal installment or interest is not paid when due, the amount not so paid shall be subject to a penalty, in addition to interest, of one percent (1%) thereof for each month or fraction thereof that the same remains unpaid after the due date. 25. Oakland and each Local Unit, pursuant to authorization of Michigan law, hereby irrevocably pledge their full faith and credit for the prompt and -17- timely payment of all of their obligations as expressed in this contract. Pursuant to such pledge, if other funds are not available, the Local Unit shall be required to pay such amounts from any of its general funds as a first budget obligation and shall each year levy an ad valorem tax on all the taxable property in the Local Unit in an amount which, taking into consideration estimated delinquencies in tax collections, will be sufficient to pay such obligations under this contract becoming due before the time of the following year's tax collections, such annual levy, however, to be subject to applicable charter, statutory and constitutional tax limitations. The debt service portion of the foregoing commitments of each Local Unit are expressly recognized as being for the purpose of providing funds to meet contractual obligations as set out herein in anticipation of which the bonds hereinbefore referred to are iseued. Nothing herein contained shall be construed to prevent any Local Unit from using any, or any combination of, means and methods for the purpose of providing funds to meet its obligations under this contract, and if at the time of making the annual tax levy there shall be other funds on hand earmarked and set aside for the payment of the contractual obligations due prior to the next tax collection period, then such annual tax levy may be reduced by such amount. 26. Any Wayne Local Unit may pay in advance any of the payments required to be made by this contract to retire contract bonds, in which event Wayne shall credit the appropriate Wayne Local Unit with such advance payment on future-due payments to the extent of such advance payment. 27. Any Wayne Local Unit may pay additional moneys over and above any of the contract bond payments specified in this contract, with the written request that said additional funds be used to call contract bonds for redemption prior to maturity, in which event Wayne shall be obligated to apply and use said moneys for such purpose to the fullest extent possible Such moneys shall not then be credited as advance payments under the provisions of Section 26 of this contract. -18- ake a tax levy or rate increase to No party shall take any action to aforesaid state-returned moneys in 28. In the event Oakland or any any reason to pay to Wayne at the required to be paid by the provisions Local Unit party hereto shall fail for times specified herein the amounts of this contract, for rates or for its share of the costs of the Project as evidenced by bonds of Wayne, Wayne shall immediately give notice of such default and the amount thereof, in writing, to the Local Unit Treasurer, the appropriate County Treasurer, the Treasurer of the State of Michigan, and such other officials charged with disbursement to such party of funds returned by the State and now or hereafter under Michigan law available for pledge as provided in this paragraph, and if such default is not corrected within ten (10) days after such notification, the State Treasurer, or other appropriate officiaT charged with disbursement to the party of the aforesaid funds, is, by these presents, specifically authorized by the party, to the extent permitted by law, to withhold from the aforesaid funds the maximum amount necessary to cure said deficit and to pay said sums so withheld to Wayne, to apply on the obligations of the party as herein set forth. Any such moneys so withheld and paid shall be considered to have been paid to the party within the meaning of the Michigan Constitution and statutes, the purpose of this provision being to voluntarily pledge and authorize the use of said funds owing to the party to meet any past-due obligations of the party due under the provision of this contract. In addition to the foregoing, Wayne shall have all other rights and remedies provided by law to enforce the obligations of the party to make its payments in the manner and at the times required by this contract, including the right of Wayne to direct the party to r reimburse Wayne for any funds advanced. reduce the right of Wayne to receive the the event of default. 29. It is specifically recognized by all Local Units that the debt service - payments required to be made by them pursuant to the terms of Section 22 and Section 23 of this contract are to be pledged for and used to pay the principal of and interest on the contract bonds to be issued by Wayne or -19- Oakland as provided by this contract and authorized by law, and said Local Units covenant and agree that they will make all required payments to Wayne or Oakland promptly and at the times specified herein without regard to whether the Project is actually completed or placed in operation, 30. In the event that it shall become necessary to increase the estimated Local Unit cost of any portion of the System or Project for any reason, or if the actual Local Unit cost of any portion of the System or Project shall exceed the estimated Local Unit cost, whether as the result of variations or changes made in the approved plans or otherwise, then (without execution of any further contract or amendment of this Contract) additional Wayne bonds of the same security (upon the adoption of an authorizing resolution therefor by the Wayne County Board of Commissioners) shall be issued and additional South Rockwood and Oakland cash payments shall be made to defray such increased or excess cost, to the extent that funds therefor are not available from other sources: Provided, however, that no such increase or excess shall be approved and no such increased or additional Wayne bonds shall be authorized to be issued, nor shall Wayne enter into any contract for acquisition or construction of the System or any part thereof or incur any obligation for or pay any item of cost therefor, where the effect thereof would be to cause any Local Unit's cost of any portion of the System to exceed by more than 10% the total estimated cost to such Local Unit as previously approved, unless the governing body of Oakland and of the affected Local Unit shall have first adopted a resolution approving such increase or excess and agreeing that the same (or such part thereof as is not available from other sources) shall be defrayed by South Rockwood and Oakland cash payments and/or by the issuance of increased or additional Wayne bonds in anticipation of increased or additional payments agreed to be made by the affected Local Unit to Wayne in the manner herein provided: Provided, further, that the adoption of such Local Unit approving resolution shall not be required prior to or as a condition precedent to the issuance of additional bonds by Wayne, if Wayne has previously issued or contracted to -20- sell bonds to pay all or part of the cost of the System or has let construction bids in accordance with plans for the System as last approved, and the issuance of the additional bonds is necessary (as determined by Wayne) to pay such increased, additional or excess costs as are essential to completion of the System or any part thereof according to the plans therefor as last approved. The annual payments required to be made by the parties obligated to pay such additional bonds shall be increased in an amount so that the total payments required to be made as increased will be sufficient to meet the annual principal and interest requirements on the bonds herein authorized, plus the additional bonds to be issued. Any such additional bonds shall in all respects comply with the requirements of this Contract and authorizing legislation, and any increases in the annual payments shall be made in the manner arid at the ti?nes specified in this Contract. in lieu of said additional bonds, a party hereto may and South Rockwood and Oakland shall pay over to Wayne in cash sufficient money to pay its share of the additional costs to be financed. 31. Any surplus funds remaining from any bond issue or cash payment during the course of construction of the Project shall be used to pay costs of other portions of the Project, in the sole discretion of Wayne but with appropriate credit to the parties hereto producing such surplus. After completion of the Project and payment of all costs thereof, any such surplus funds remaining after cash refund to Oakland and South Rockwood shall be used by Wayne in its sole discretion for either of the following purposes, to wit: (a) for additional improvements in the System, or (b) credited toward the next debt service payments due hereunder (c) or purchase of bonds on the open market and appropriate credit made on the obligation of each Local Unit. 32. The obligations and undertakings of each of the parties to this Contract shall be conditioned on the successful issuance and sale of is, and if for any reason whatsoever bonds to finance Phase 1 of the Project are not issued and sold within three (3) years from the effective date hereof this -21- Contract shall be considered void and of no force and effect. The parties hereto agree that bonds to finance Phase I of the Project shall not be issued until a firm commitment has been received for a federal grant anticipated to pay the eligible costs of Phase I of the Project. 33. The parties hereto each recognize that the holders from time to time of the bonds issued by Wayne and/or Oakland to finance costs of the Project will have contractual rights in this Contract, and it is, therefore, •covenanted and agreed by each of them that so long as any of said bonds shall remain outstanding and unpaid, the provisions of this Contract shall not be subject to any alteration of revision which would in any manner materially affect either the security of the bonds or the prompt payment of principal or interest thereon. The right to make changes in this Contract, by amendment, supplemental contract, or otherwise, is nevertheless reserved insofar as the same do not have such adverse effect and as provided in Section 5 hereof. The parties hereto further covenant and agree that they will each comply with their respective duties and obligations under the terms of this Contract promptly at the times and in the manner herein set forth, and will not suffer to be done any act which would in any way impair the said bonds, the security therefor, or the prompt payment of principal and interest thereon. It is hereby declared that the terms of this Contract, insofar as they pertain to the security of any such bonds, shall be deemed to be for the benefit of the holders of said bonds. 34. No change in the jurisdiction over territory in any Local Unit shall in any manner impair the obligations of this Contract. In the event all or any part of the territory of a Local Unit is incorporated as a new city or is annexed to or becomes a part of the territory of another Local Unit or another public corporation, the Local Unit or public corporation into which such territory is incorporated or to which such territory is annexe* shall assume the proper proportionate share of the contractual obligatioe . and rights in the System of the Local Unit from which such territory is taken and such a public corporation shall become a Local Unit in this Contract, based -22- upon a division determined by Wayne which shall make such determination after taking into consideration all factors necessary to make the division equitable, and in addition shall, prior to such determination, receive a written recommendation as to proper division from a committee composed of one representative designated by the governing body of the Local Unit from which the territory is taken, one designated by the governing body of the new public corporation or the Local Unit or public corporation annexing such territory, and one independent registered engineer appointed by Wayne. Each Local Unit or public corporation shall appoint its representative within fifteen (15) days after being notified to do so by Wayne and within a like time Wayne shall appoint the engineer third member. If either Local Unit or public corporation shall fail to appoint its representative within the time above • provided, then 'Wayhe may proceed without such recommendation. If the committee shall not make its recommendation within forty-five (45) days after its appointment or within any extensions whereof by Wayne, then Wayne may proceed without such recommendation. Oakland shall make similar provisions with respect to Oakland Local Units. 35, This Contract shall remain in full force and effect for a period of forty (40) years from the date hereof, and may be extended by further agreement of all or some of the parties hereto In any event, the obligations of the Wayne Local Units to make debt service payments required by this Contract shall be terminated atsuch time as all of the aforesaid bonds are paid in full, together with any deficiency or penalty thereon. 36. Wayne and Oakland will require or procure from the contractors undertaking the actual construction of the Project insurance protecting all parties hereto from liability in connection with such construction. The cost of such insurance shall be considered to be a part of the cost of the Project. 37. This Contract shall inure to the benefit of and be binding upon the respective parties hereto, their successors and assigns. 38. This Contract shall become effective upon approval by the legislative body of Wayne, Oakland and each Local Unit hereto and when duly -23- executed by the appropriate officer or officers of each Local Unit, Wayne County and Oakland County. This Contract may be executed in several counterparts. It is the understanding of all parties hereto that the City of Rockwood may become a party hereto by the approval of this Contract by its governing body when duly executed by its appropriate officers. In such event, The City of Rockwood shall be included within the definition of "Local Unit," "Local Units" and "Wayne Local Units" and shall have the rights and obligations of a party hereto. Further it is agreed that all exhibits and tables hereto will be changed to the extent necessary as attached hereto. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed as of the date and year first above written. By Its And Its -24- 94863 0006 83.06.378 June 13, 1983