HomeMy WebLinkAboutResolutions - 1980.08.14 - 11827RHSOT TITION NO. 9517 August 14, 1980
RE: ADOPTION OF REVENUE BOND ORDINANCE
BY:
TO: THE OAKLAND COUNTY BOARD OF COMKTGSIONERS
MR. CHAIRMAN, LADIES AND GENTLEMEN:
WHEREIvS, the County Clerk presented maps prepared by
Johnson & Anderson, Inc., registered professional engineers for
the acquisition and construction of the so-called Oanand-Orlon
Sewage Disposal System, together with estimates of $4,850,000 as
the cost thereof and 40 years and upwards as the period of
fulness thereof, and also a Contract for Services, dated as of
August 1, 1980, between the County of Oakland and the Township
of Orion pertaining to said System; and
WHEREAS, it is necessary to adopt a Bond Ordinance
establishing the Oakland-Orion Sewage Disposal System.
NOW THEREFORE BE IT RESOLVED that thefollowing Ordinance
be and the same is hereby adopted:
21 ORDI —CE NO.
AN ORDINANCE TO PROVIDE FOR THE
ESTABLISHMENT, OPERATION AND MAIN-
TENANCE OF THE OAKLAND-ORION SEWAGE
DISPOSAL SYSTEM TO SERVE AREAS IN THE
TOWNSHIP OF ORION TOWNSHIP OF
OAKLAND IN SAID COUNTY ; TO PROVIDE
FOR THE ACQUISITION OF NEW AND THE
CONNECTION TO EXISTING SEWAGE DISPOSAL
FACILITIES AS A PART OF SAID SYSTEM;
TO PROVIDE FOR THE ISSUANCE AND SALE
OF REVENUE BONDS TO DEFRAY THE COST
THEREOF; TO PROVIDE FOR THE RETIREMENT
AND SECURITY OF SAID BONDS; AND TO
PROVIDE FOR OTHER MATTERS RETIVE TO
SAID SYSTEM AND SAID BONDS
THE COUNTY OF OAKLAND, IN THE STATE OF MICHIC ORDAINS:
Section 1. Whenever used in this ordinance or in the
bonds to be issued hereunder, except when otherwise indicated by
the context:
(a) The term "County" shall be construed to mean the
County of Oakland, a political subdivision of the State of
Michigan.
(b) The term "Board of Commissioners" shall be con
strued to mean the Board of Commissioners of said County - of
Oakland, the legislative and governing body thereof.
(c) The term "County Executive" shall be construed to
mean the elected County Executive in the County acting pursuant to
Act No. 139 of the Public Acts of Michigan of 1973, as amended,
providing for an optional unified form of government.
(d) - The term "Department of Public 'Works" shall be
construed to mean the department by that name established by the
County pursuant to said Act No. 139 and responsible to the County
Executive.
(e) The term "public corporation" shall be construed to
mean the Township of Orion or the Township of Oakland in the
County, or combination thereof, in whose corporate limits
facilities of the system or areas in the district are located, and
which have contracted or will contract with the County with
respect to the use of and payment for the Oakland-Orion System.
Each public corporation will be sometimes described herein as
"Orion" and "Oakland' respectively.
(f) The term "Contract for Services" shall be construed
to mean the contract to be entered into between the County and
Orion in form substantially as follows:
party of the second
OAKLAND-ORION SEWAGE DISPOSAL SYSTEM
CONTRACT FOR SERVICES
This Contract was made and entered into as of the 1st
day of August, 1980, by and between the COUNTY OF OAKLAND, a
Michigan county corporation, acting by and through its County
Executive and Department of Public Works, party of the first
(hereinafter sometimes referred to as the "County" and the
"Department of Public Works"), and the TOWNSHIP OF ORION, a
Michigan township corporation located in the County of Oakland
pi
(hereinafter referred to as the "Township"),
part, all in the State of Michigan.
WHEREAS, the County is presently engaged in carrying out
proceedings pursuant to Act No. 94 of the Michigan Public Acts
1933, as amended, to finance, construct and operate a sanitary
sewer as an extension of the Paint Creek Interceptor (herein some-
times called the "Interceptor") in the Clinton-Oakland Sewage Dis-
posal System (herein sometimes called the "System"), a sewage dis-
posal system established by the County pursuant to Act No. 185 of
the Michigan Public Acts of 1957, as amended, and more recently
extended and enlarged by the County pursuant to Act No. 342 of the
Michigan Public Acts of 1939, as amended; and
WHEREAS, the contracts and agreements among the County
and the Township and other units of government in the County
pertaining to the Paint Creek Interceptor in the Clinton-Oakland
Sewage Disposal System permit the County and the Township to
acquire additional sewage disposal facilities as extensions of and
connections to said Interceptor and System within the designated
service areas and districts thereof; and
WHEREAS, the County by ordinance enacted by its Board of
Commissioners and by resolutions duly adopted, pursuant to the
powers vested in it under the provisions of Act No, 911, Public Acts
of Michigan of 1933, as amended, will establish and finance the
acquisition of the "Oakland-Orion Sewage Disposal System"
(hereinafter referred to as the "Oakland-Orion System") for the
purpose of collecting, transporting and disposing of sanitary
sewage emanating from the areas and in the facilities
substantially as shown on Exhibit "A" hereunto attached and by
this reference made a part hereof; and
WHEREAS, in said ordinance and/or resolutions the County
Executive and the Department of Public Works under the County
Executive will be appointed the agency of the County to supervise
and control on behalf Of the County the construction and financing
of all improvements, facilities and services to be acquired and
provided as part of said Oakland-Orion System, and the County
shall continue the operation and management of the Paint Creek
interceptor in the Clinton-Oakiand Sewage Disposal System for the
transportation to and treatment of sewage by the City of Detroit;
and
WHEREAS, the County will obtain maps, plan
specifications and an estimate of cost for said Oakland-Orion
System (herein sometimes referred to as the "project") to be
prepared by Johnson & Anderson, Inc., consulting engineers of
Pontiac, Michigan., (hereinafter sometimes referred to as the
.Engineers"), which estimate of cost is set forth
herein as Exhibit "B" attached hereto and by this reference made a
part hereof; and
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WHEREAS, under the provisions of Act 94, Public Acts of
Michigan of 1933, as amended, and as authorized by Act No. 129 of
the Public Acts of Michigan of 1943, as amended; Act No, 35 of the
Public Acts of Michigan of 1951, as amended; and Act No. 7 of the
Public Acts of Michigan of 1967 (Extra Session), the aforesaid
Township is authorized to contract as a customer and wholesale
user of the Oakland-Orion System for the payment by the Township
to the County for the services provided by the Oakland-Orion
System, including the cost of construction and maintenance of said
project and of any other improvements and facilities to be
acquired by said Oakland-Orion System, from funds collected as
rates and charges from the users and beneficiaries of said
Oakland-Orion System; and
WHEREAS, for the purpose of the public health, safety
and welfare of the residents of the said Township and for the
general health, safety and welfare of the County of Oakland, there
exists an imperative need for the sewage disposal facilities
herein described to collect and transport and to treat and dispose
sanitary sewage emanating from the areas in the Township shown
on Exhibit "A"; and
WHEREAS, pursuant to Act No. 94, Public Acts of Michigan
of 1933, as amended, the County is authorized and intends to issue
self-liquidating revenue bonds for the purpose of obtaining money
to acquire said sewage disposal facilities of and for the Oakland -
Orion System and any other necessary improvements and facilities
to be acquired by said Oakland-Orion System which bonds, both the
principal thereof and the interest thereon, will be paid by the
County solely out of the payments as aforesaid, to be received
from the Township as a customer and wholesale user which 'avments
the Township obligates itself to make as a general fund limited
tax obligation as a customer and wholesale user of the Oakland-
Orion System; and
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this
WHEREAS, a part of facilities of the Oaklane-Orion
System and a part of the area to be served thereby, all a
Exhibit "A" hereto attached, will be located in the Tow
Oakland, a Michigan township corporation also located in the
County and also a participant in the Paint Creek Interceptor and
the Clinton-Oakland Sewage Disposal System, and it is necessary
and desirable to provide herein for the use of said facilities by
residents and property owners in said Township of Oakland.
NOW THEREFORE in consideration of the premises and the
covenants of each, the parties hereto agree as follows:
1. The County and the Township approve and confirm the
acquisition of said sewage disposal facilities of and for the
Oakland-Orion System and any other improvements and extensions of
the Interceptor and System, as set forth in the preambles to this
contract, and agree that the same shall be acquired and
constructed in the manner provided by and pursuant to this
contract and the maps, plans, designs and specifications therefor.
The County and the Township further hereby approve and adopt the
maps, for the project prepared by the Consulting Engineers and the
estimated cost of construction thereof, as described in the
preamble hereto, which said maps and estimate are filed with the
Oakland County Board of Commissioners as attachments to
Contract. The Township hereby expressly agrees to and permits
the approval and execution of this Contract, the use of all
streets, alleys, public places and public rightsof-way required
for the location, construction and maintenance of the facilities
of the Oakland-Orion System substantially as shown on the maps,
plans and designs therefor, including such temporary use thereof
as may be reasonably necessary or desirable for the construction
activities, which permit shall endure for the useful life of the
said facilities.
the
7.naCit
2. The County agrees to collect sewage emanating in the
areas of the Oakland-Orion System as shown on Exhibit "A" and to
deliver it for sewage treatment by means of the Paint Creek
Interceptor, and the Clinton-Oakland Sewage Disn,osal Sys
City of Detroit, within the heretofore established
limitations for the Paint Creek Interceptor.
3. After execution of this contract by the Township the
County Executive and Department of Public Works shall take the
following steps:
a. File the maps, plans, designs and specifications
for the project as obtained from the Consulting
Engineer with the Oakland County Board of
Commissioners.
b. Submit to the said Board of Commissioners
an ordinance providing for the issuance of
revenue bonds in the aggregate principal
amount of $ 4,850,000
estimated cost of the project) maturing
serially as authorized by law, over a
period of approximately thirty (30) years,
the principal of which bonds and the interest
thereon will be payable solely from the
revenues paid the County by the Township as
customer and wholesale user of sewage disposal
services established and in effect, from time
to time, pursuant to this contract and the
said ordinance in respect to such bonds, and
providing which bonds shall have such provisions for
redemption prior to maturity and other
(being the present
features, permitted by applicable law, as shall
be determined in said ordinance. The aggregate
principal amount of the bonds to be issued
will be increased or decreased, as the case
may be, because revisions in the estimated
cost of the project, or will be decreased if
other funds become available to defray part
of the cost of said project.
c. After the Board of Commissioners of Oakland
County has adopted the bond ordinance, the
County Executive and Department of Public Works
will take all necessary procedures to obtain
from the Municipal Finance Commission of the
• State - of Michigan the approval necessary to the
issuance and sale of the bonds, to obtain
construction bids for the project, and to enter
into construction contracts, subject to
the sale of bonds, with the lowest responsible
bidders, and to sell and deliver the bonds
in the manner authorized by law.
d. Complete the project and operate and
maintain the sewage disposal facilities
of the Paint Creek Interceptor and of the
Clinton-Oakland Sewage Disposal System for
transportation and treatment of sewage
collected in the Oakland-Orion System and
render services herein described to the
County and the Township for the term of
this Contract.
The term "cost" as used herein shall be construed to include the
cost of all physical structures, the acquisition of all lands,
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Township to the facilities of the Oakland-Orion Sy CM the Co:
Oakland in amounts proportionate to and not than th se
labor and materials necessary to acquire and construct Oakland-
Orion System, plant, engineering and legal fees, administration
and inspection expenses, capitalized interest during the period of
construction, financing costs, a reasonable amount for
construction contingencies and for reserves, and any other costs
incident to the acquisition and financing of the project.
4. It is understood and agreed by the parties hereto
that the Oakland-Orion System is to serve the designated area in
the Township and through the Township to serve its residents and
citizens as individual customers and users. The portions of the
Oakland-Orion System located in the Township of Oakland shall be
available to serve through that Township its individual customers
and users in the designated service area. When customers and
users in the Township of Oakland are connected through
shall collect connection and service charges from the Township of
charged or collected from the Township of Orion under this
Contract. Before connections are permitted or made in the
Township of Oakland, said Township and the County shall enter into
a Contract for Services similar to this Contract for use of the
Oakland-Orion System in which the said charges are provided and in
which credit to or proportionate reduction of the obligations of
the Township of Orion under this Contract is also provided. The
proportion to be assigned to the Township of Oakland shall be her
after agreed upon by Orion and County if and when Oakland rerz .?,-.t .
the right to use the Oakland-Orion System. The County shall t
obligated by this contract to serve any area of the Oakland-Orion
System shown on Exhibit "A", or to construct any improvements or
facilities other than those described in the maps, plans, designs
and specifications approved and adopted by the parties hereto.
open market or may be us to redeem bonds or to improve r enlarge
5. After completion of the project and payment of all
costs thereof, any surplus remaining from the sale of the bonds
therefor or otherwise may be used to purchase such bonds on the
or extend the Oakland-Orion System as provided in the revenue bond
ordinance adopted by the County. Any bonds so purchased or
redeemed shall be canceled.
6. If the proceeds of the sale of the revenue bonds to
be issued by the County to defray the cost of the project are for
any reason insufficient to complete the project in accordance with
the plans and specifications therefor, the County shall, if the
bond ordinance so provides, issue additional bonds in an amount
necessary to provide funds to complete the project. In lieu of the
issuance of such additional bonds, any other method may be agreed
upon by the County and the Township to provide the necessary funds
to complete the project. Other additional bonds may be issuedas
provided in the bond ordinance.
7. This contract is contingent upon the County issuing
its negotiable revenue bonds as set forth in subdivision (b) of
paragraph 3 of this contract, to defray the estimated or, if
known, the actual cost of the project, which bonds shall be issued
under the authorization provided in said Act No. 94, Public Acts
of Michigan, 1933, as amended. The proceeds of the sale of the
revenue bonds, except premium and accrued interest, shall be used
solely to defray the cost of the project including capitalized
interest on said bonds for the period of construction and
capitalized reserves, if any.
8. The, Township shall pay to the County, as a customer
and wholesale user of the Oakland-Orion System, a wholesale rate
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and charge in amounts and on the dates set forth on Exhibit "C",
attached hereto and by this reference made a part hereof, on
account of the revenue bonds issued by the County to finance and
acquire said System. The amounts scheduled on Exhibit "C" are
calculated to include items of expense as follows:
a. Installments of payments equal to 100%
of principal of and interest on the revenue
bonds of the County, exclusive of accrued
interest paid by the purchaser and of
capitalized interest.
b. Installments of payments to reserves as
provided in the revenue bond ordinance of
the County, exclusive of capitalized reserves.
c. Installments of expenses of the County for
administration of the Oakland-Orion System
and of its revenue bonds issued to finance same.
9. The Township shall also pay to the County, from time
to time, as requested in writing the following:
a. Any increases in the amounts shown on Exhibit
"C" made necessary by reason of increased
costs of the Oakland-Orion System and/or
increased amounts of revenue bonds issued
by the County or made necessary by reason
increases in item 8.c. above.
b. Payments required to replace or replenish
funds spent from or taken out of any reserves
as provided in the revenue bond ordinance(s)
of the County.
c. Payments required for emergency repairs to or
herein contemplated is actually completed or placed in operation.
- The County shall have the right to utilize any method permitted by
law for the collection of such rates and charges due said County
under this contract.
11. In the event that said Township shall fail for any
reason to pay the County at the times specified, the amounts
herein required to be paid, the County shall immediately notify,
in writing, both the Treasurer of the State of Michigan and the
governing body of the Township of such default and the amount
thereof, and if such default is not corrected within ten (10) days
after such notification, the State Treasurer or other official
charged with the disbursement of funds to said Township derived
from the State sales tax levy under the provisions of Act 167,
Public Acts of Michgian, 1933, as amended, and returnable to said
Township pursuant to the Constitution of Michigan, OT derived from
any other funds payable by the State to the Township, shall, upon
the basis of this contract and the covenants and agreements of the
Township, withhold sufficient funds to make up any such default or
deficiency from the moneys derived from said State sales tax levy
then on hand or to be received, or other funds in the hands of the
State and which are returnable to such Township.
12. Upon completion of the Oakland-Orion System the
County does hereby lease the same to the Township to operate and
maintain the same upon the following terms and conditions:
(a) The facilities shall be used and operated by the
Township in compliance with all contractual
legal obligations applicable to the Township, and
the Township expressly covenants and agrees to
comply with the provisions of U.S. Public Laws
92-500 and 95-217, the Federal rules and regulations
thereunder, and the rules, regulations and
orders of the Michigan Department of
Natural Resources all of which are applicable
to the System
(b) The Township, at its own expense, shall maintain
said facilities in good condition and repair to
the satisfaction of the County. The County shall
have the right to inspect the said facilities
at any time and if said facilities or any part -
thereof are not in a state of good condition and
repair, then the County shall notify the Township
in writing as to any deficiency. If the Township
shall fail to restore the facilities to a good
condition and repair within a reasonable time
thereafter, then the County shall have the right
to. perform the necessary work and furnish the
necessary mat ials, and reimbursement for any
expense incurred by the County shall be made by
the Township to the County within thirty (30)
days after the expense has been incurred.
(c) The Township shall adopt and continue in existence
and shall enforce an ordinance or ordinances con-
cerning the connections of premises in the Township
to the facilities and concerning the use Of and
the payment of charges for the use of the facilities.
(d) The Township shall make and collect from the
individual users of the facilities such charges
for sewage disposal service as shall be sufficient
to pay the cost of the operation and maintenance
of the facilities, the cost of sewage disposal
charges required to be Paid by the Township, and
to establish suitable , reserves for operation and
maintenance. Such charges may also include an
amount determined by the Township to be used
meet the obligations of the Township to the County
under this Contract and other contracts with the
County for sewage disposal services arll facilities.
The Township shall enforce prompt pay72,1t of all
such charges as the same shall become due.
(e) The Township shall secure and maintain adequa
property damage and public liability insurance
covering all facilities hereby leased to it by
the County. All policies of insurance shall pro-
vide that the Township and the County shall be
insured parties thereunder and shall contain a
provision requiring that the County be notified
at least ten days prior to cancellation thereof.
One copy of each policy Of insurance shall be
filed with the County.
The Township agrees to lease e project from the
County upon the foregoing terms and conditions and for the period
of this Contract and agrees to pay the sum of $1.00 per year
on January 1st of each year commencing January 1, 1902, and
in addition to perform its covenants and agreements set forth
in this Contract as a rental for said project.
13. The Township reserves the right to establish rates
and charges to be collected from its individual users in an
sufficient to pay its obligations hereunder and its expens:s of
operation and maintenance of the Oakland-Orion System, as lessee
thereof. Such rates and charges may be fixed and established,
(-3 i
from time to time, in such amount as will produce additional
moneys for such Township to be used for any lawful purposes.
14. It shall be the obligation of the County to provide
the Paint Creek Interceptor and the Clinton-Oakland
Disposal System to transport sewage to the treatment source
only to the extent of the capacity limits and other provisions of
its agreements pertaining thereto. All direct connections of
Private property to said Oakland-Orion System shall be only by
permit obtained from the Township, as provided by ordinance or
resolution of said Township, and upon payment of a, fee or charge as
provided in said Township ordinance. The Township shall not
construct or Permit the construction of any sewage treat•t plant
or facility within the area of the Oakland-Orion System without
the approval of the County, which approval shall not be gra
unless the same will have no effect upon the security and payment
of the revenue bonds to be issued by the County.
15. The County shall have the right to deny the use of
the Oakland-Orion System to the Township if it shall be delinot
for a period of ninety (90) days in the payment of any rates and
due from it or if said Township shall in any other manner
be in default under this contract. The foregoing be
accomplished by any lawful means, while such delinquency or
default continues.
16. The Township shall be responsible for the
character of the sewage originating therein and shall comply with
the County's standards and regulations controlling the disch
of industrial and/or commercial type wastes into the Oakland-Oriou
System or the Interceptor or the System or the Detroit treatment
facilities. If the character of sewage contributed from the
Township shall be such that it imposes an unreasonable
,ge
te
ch
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burden upon any part of said disposal systems, then an additional
charge shall be made over and above the regular service charge, or
it may be required that such sewage be treated before being
emptied into said disposal systems or the right to empty said
sewage into said disposal systems may be denied, if necesary, for
the protection of the public health and safety.
17. The parties hereto each recognize that the holde
from time to time of the revenue bonds issued by the County under
the provisions of Act No. 94, Public Acts of Michigan, 1933, as
amended, and secured by the pledge of the revenues, as set forth in
this contract, 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 revenue bonds shall remain outstanding and
the provisions of this contract shall not be subject to any
alteration or revision which would in any manner affect either the
security of the revenue bonds or the prompt Payment of principal
or interest thereon. 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 su f fer to be
done any act which would in any way impair the said re7e.eue bonds,
the security therefor, or the prompt payment of principal and
interest thereon. It is hereby declared that the terms of this
agreement insdfar as they pertain to the security of any such
revenue bonds, shall be deemed to be for the benefit of the holders
of said revenue bonds.
18. • In the event that the Township shall change its
corporate status, or change its boundaries by annexation, cee-
solidation, detachment, incorporation or otherwise, it is under-
stood and agreed that the rights of such Township to services as
herein provided for the area in the Oakland-Orion System and the
obligation of such Township to pay therefor pursuant to this
contract, shall be assets and liabilities, respectively, of such
Township to be divided and assumed in accordance with the law then
in effect pertaining thereto.
19. This contract shall become effective upon proQer
execution by the authorized officers of the Township and by the
County Executive on behalf of the County, and shall be binding
upon the successors and assigns of each party. This contract
shall terminate forty (40) years from the date hereof. This
contract may be executed in several counterparts. The charges and
rates herein provided shall become and be effective on
August 1, 1980
IN WITNESS WHEREOF, the parties hereto have caused this
contract to be executed and delivered by their respective duly
authorized officers, all as of the day and year first above
written.
COUNTY OF OAKLAND
on behalf of the Oakland-Orion
Sewage Disposal System
By
County Executive
TOWNSHIP OF ORION
By
Super via
And
Township Clerk
S
A, 4arMar.
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C.,'
Soil Erosion Permit
Administration, Orion Township
Capitalized Reserve
Contingency
Estimated Capitalized Interest
(7/1/81; 1/1/82 & 7/1/82) 848,750.00
1,850.00
10,000.00
500,000.00
238,274.00
Total Project Cost $4,850,000.00
By
7/25/80
OAKLAND-ORION SEWAGE DISPOSAL SYSTEM
ESTIMATE OF COST
Construction Cost $2,520,212.00
Contracted Services - Project Development:
Consulting Engineer
Soil Borings
Legal and Financial Services:
Legal Services
Contracts with private users and
Township Ordinances
Financial Consultant
Bond Prospectus
Bond Printing
Publication
226,523.00
12,000.00
16,200.00
3,000.00
10,925.00
2,500.00
1,000.00
2,500.00
County Services - Project Development:
Engineering 117,066.00
Easement Acquisition 150,(-0.00
Construction Inspection 151,- _CD
Administration
I hereby estimate the period of usefulness of this facility to be
forty (40) years and upwards.
JOHNSON AND ANDERSON, INC.
EXHIBIT "B"
OAKLAND-ORTON SEWAGE DISPOSAL SYSTME
Schedule of Annual Payment
Principal Payment
Year June I
1982 $ 100,000.
1983 100,0 00
1984 100,020,
1985 100,000.03
1936 150,000.00
1987 150,000.00
1988 150,000.00
1989 150,000.00
1990 150,000.00
1991 150,000.00
1992 150,000-0
1993
1994 150,000.uu
1995 150,000.00
1996 150,000.00
1997 200,000.0 3
1998 200,000.:-3
1999 200,000.( )
2000 200,000...0
2001 200,000.00
2002 200,000.00
2003 200,C -).0 D
2004 200,c
2005 200,C .
2006 200,000,l
2007 200,000.00
2008 200,0 ,.00
2009 200,0,-,
2010 200,C
Total $4,850,000.00
In addition the Township shall pay on June 1 and December 1 t:s
County interest (not capitalized) on the unpaid installments sche.2.
at the rate at which interest is due on the revenue bonds of the
paying agent fees and other bond administration costs payable b:;
EXHIBIT "G" 7/25180
(h) The term "acquired" shall be constru include
hereinafter described, and to lude all plants, works, in
(9) The term "project" shall be construed to mean the
facilities of the Oakland-Orion Sewage Disnc -l. System and related
facilities to be accluired pursuant to this ordinance.
acquisition by transfer, purchase, construction or by any other
-method.
(i) The term "Oakland-Orion System" and "System" shall -
be construed to mean Oakland-Orion Sewage Disposal System, as
instrumentalities and properties (as the same shall from time to
time exist), used or useful in connection with the providing
sewage disposal facilities and services in Orion and Oakland by
the County as extensions of the Paint Creek Interceptor and the
Clinton-Oakland Sewage Disposal System now existing and as herein
described.
(j) The term "district" shall be deemed to refer to the
service area of the Oakland-Orion System which is hereby
established and is described in the Contract for Services herein-
above set forth and by this reference made a part hereof.
(k) The term "revenues" and "net revenues" shall be
construed as defined in Section 3 of Act No. 94, Michigan Public
Acts of 1933, as now amended.
Section 2. The Board of Commissioners of the County of
Oakland hereby determines to establish and finance by the issuance
of revenue bonds a sewage disposal system to serve the district in
said County as described in the Contract for Services and hereby
gives to the said sewage disposal system the name "Oakland-Orion
Sewage Disposal System" and to the district to be served thereby
the name "Oakland-Orion Sewage Disposal District", which said
Oakland--Orion System shall be acquired, improved, enlarged and
extended by the County acting through its County Executive and
Department of Public Works under the control of its Board of
Commissioners, pursuant to Act No. 94 of the Public Act
Michigan of 1933, as amended, and Act No. 139 of the Public Acts of
Michigan of 1973, as amended. The Oakland-Orion Syst.n. .all, be
acquired and placed in operation as provided in the Contract for
Services and shall be connected to the existing Paint Creek
Interceptor and Clinton-Oakland Sewage Disposal System serving the
district pursuant to the contractual or other arrann•nnts or
rights by which the County has heretofore agreed with Orion and
Oakland to render services to residents in said -district by the
use of existing County sewage disposal systems, and the County
Executive and Department of Public Works are hereby directed to
establish, acquire and finance said Oakland-Orion System by
acquiring the sewage disposal system and facilities described in
the and in the estimate of cost prepared .under the direction of
Johnson & Anderson, Inc., registered professional engineers and
attached to the Contract for Services as Exhibit A and Exhibit 17)
and by this reference made a part hereof, such acquisition to be
substantially in accordance with further maps, plans, designs and
specifications to be prepared under the direction of said Johnson
& Anderson,- Inc., registered professional engineers. Upon
completion of said project the County Executive and Depat of
Public Works shall turn the same over to Orion, as 1,en, to
operate and maintain the same to supply sewage disposal services
to said district in compliance with the Contract for Services and
subject to the provisions therein pertaining to Oakland which is
not now a party thereto.
Section 3. The County does hereby adopt the said
engineer's estimate of forty years and upwards as the period of
usefulness of said project and also the said engineer's estjmate
-4-
($4,850,000) for the purpo of defraying the cost of the said
of Four Million Eight Hundred Fifty Thousand Dollars ($4,850,000) as
the cost of said project, both of which estimates are on file with
the County Clerk.
Section 4. There are hereby authorized to be issued and
sold pursuant to the provisions of Act - No. 94, Public
Acts of 1933, as amended, revenue bonds in the aggregate .;:rincipal
sum of Four Million Eight Hundred Fifty Thousand Dollars
project. Said bonds shall be known as County of Oakland "Oakland-
Orion Sewage Disposal System Revenue Bonds"; shall be dated as of
October 1, 1930; shall be numbered consecutively in the direct
order of their maturities from 1 to 970 , both inclusive; shall
be coupon bonds in the denomination of $5,000 each; shall be
registrable as to principal only, in the manner hereinafter set
forth in the bond form; shall bear interest at a rate or rates to
be hereafter determined not exceeding 10% per annum, payable on
J u l y 1981,- and thereafter semi-annually on the first days of
January and July in each year; and shall mature on July first in
each year as follows:
1982 - $100,000
1983 - 100,000
1934 - 100,000
1985 - 100,000
1986 - 150,000
1987 - 150,000
1988 - 150,000
1939 - 150,000
1990 - 150,000
1991 - 150,000
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
- $150,000
- 150,000
- 150,000
- 150,000
- 150,000
- 200,000
- 200,000
- 200,000
- 200,000
- 200,000
2002 - $200,000
2003 - 200,000
2004 - 200,000
2005 - 200,000
2006 - 200,000
2007 - 200,000
2008 - 200,000
2009 - 200,000
2010 - 200,000
and after July 1, 1989. Each bond called for shall be
premium in accordance with the followin to-wit:
The bonds. of said issue maturing in the years 1990 thru 2010, shall
be subject to redemption prior to maturity, at the option of the
County, in any order, on any one or more interest payment dates on
redeemed at the par value thereof and accrued interest, plus a
$250 if called to be redeemed on or after July 1, 1989, but
prior to July 1, 1994
$200 if called to be redeemed on or after July 1, 1994, but
prior to July 1, 1998
$150 if called to be redeemed on or after July 1, 1998, but
Prior to July 1, 2002
$100 if called to be redeemed on or after July 1, 2002, but
prior to July 1, 2006
$ 50 if called to be redeemed on or after July 1, 2006, but
prior to maturity.
Notice of redemption shall be given to the holders
of the bonds to be redeemed by publication of such notio ,:. not less
than thirty (30) days prior to the date fixed for redeption at
least once in a newspaper or publication circulated in the City of
Detroit, Michigan, which carries as a part of its regular serivce,
notices of the sale of municipal bonds: Provided, that where any
bond shall be registered, then notice of the redemption thereof
shall be given by registered or certified United States mail
addressed to the registered holder thereof at the address
the registration books of the paying agent, which notice shall
mailed not less than thirty (30) days prior to the date fixed for
redemption. Bonds so called for redemption shall not bear
interest after the date fixed for redemption, provided funds are
on hand with the paying agent to redeem the same.
The principal of said bonds and the interest thereon
shall be payable in lawful money of the United States of 7.'arica at
such bank or trust company which qualifies as paying agent under
Federal or Michigan law and is designated by the original
purchaser of the bonds, upon presentation and surre-'7 e - of said
bonds and attached coupons as they severally mature.
Section 5. The Chairman of the Board of Commissioners
and the County Clerk of Oakland County shall execute said bonds
for and on behalf of the County (by respectively signing and
countersigning the same) and the County Clerk of said County shall
affix the seal of the County thereto. The Chairman of the Board of
Commissioners and the County Clerk of Oakland County shall eeeeue
the interest coupons to be attached to said bonds by causing a be
affixed thereto their facsimilesignatures. The Treasurer of the
County of Oakland shall deliver said bonds and attached coupons to
the purchaser thereof as hereafter determined by the County
Executive and Department of Public Works of Oakland County, upon
receipt of the purchase price therefor.
Section 6. The bonds herein authorized shall be. sold in
the manner provided in Section 12 of Act No. 94, Michigan Public
Acts of 1933, as amended.
Section 7. Said bonds and attached coupons shall not be
a general obligation of the County or of a public corporation and
shall not be an indebtedness of the County or of a public
corporation within any state constitutional provision or statutory
limitation. The principal of and interest on said bonds shall be
payable solely the act revenues derived from the operation of
the system, inCluding future improvements, enlargements and
extensions thereof as provided in the Contract. for
Services, except as provided in Section 20 hereof. To
-7-
secure the payment of the principal of and interest on the bonds
issued hereunder (and on any additional bonds of equal standing
issued as hereinafter provided), there is hereby created in favor
of the holders of said bonds and the interest coupons pertaining
thereto, and each of such holders-, a first lien (by said Act Na
94, Michigan Public Acts of 1933, as amended, made a statutory
lien) upon the net revenues . from the said system, including future
improvements, enlargements and extensions thereof as provided in
the Contract for Services. The net revenues so pledged shall be
and remain subject to said lien until the payment in full of the
incipal of and interest on said bonds. .
Section 8. The holder or holders of any of the bonds or
interest coupons herein authorized to be issued, shall have all
- the rights and remedies given by law and particularly by said Act
No. 94, Michigan Public Acts of 1933, as amended, for the
collection and enforcement of said bonds and coupons and the
security therefor, including the right to have a receiver
appointed for the system in event of default on the part of the
County in the performance of the terms of the bond contract or on
the part of any public corporation in the performance of the terms
of the Contract for Services.
Section 9. The system shall be operated upon the basis
a fiscal year which is the same as the calendar year. The
system shall be established, acquired, operated and mainta:—
serve only public corporations in the County, as named herein, and
which have contracted with the County for services from the system
by a Contract for Services substantially in the form set forth in
the preambles to this Ordinance. Such Contract provides that each
public corporation will provide services to the individual users
and .residents in its corporate limits and will establish by
ordinance the rates, charges, use requirements and restrictions
applicable to such services. Each Public eornoration in the
-s-
ordinance adequate rates and cha. and service regulations to JL-
administration and mang t of the System at the County level
Contract for Services assumes the obligation to establish in its
pay the cost of operation and maintenance of the System by it as
lessee and to make the payments to the County as provided and
required in the Contract for Services. Each public corporation
shall operate and maintain the facilities of the System as lessee
in that part of the district in its jurisdiction and shall
supervise connection to and use of the facilities and the billing
and collection of charges, fees and rates unless it is provided in
an operating agreement for the performing of such functions by the
County Executive or Department of Public Works. Notwithstanding
the foregoing, Orion shall, as lessee, operate . and maintain all of
the facilities of the Oakland-Orion System :._.trever located until
such time as Oakland shall enter into a Contract for Service..
the County and Orion shall thereupon otherwise agree.
shall be under the immediate supervision and control of the County
Executive and Department of Public Works of Oakland County or such
other officer or board as shall be designated or crea.1:: by the
Board of Commissioners and subject to its control.
Section 10. Charges for sewage disposal service to each
public corporation in whose corporate limit are located premises
within the district connected . to the Oakland-Orion System shall be
in accordance with the Contract for Services herewith entered
into by Orion with the County dated as of August 1, 1980. Sewage
disposal services shall be rendered to and charges for services
shall be made against the occupiers of premises within the
district in accordance with Ordinances adopted by Orion and/el'
Oakland. Charges for sewage disposal services to each public
corporation and premises in the district connected to the Oakland-
Orion System shall create a lien and shall be collected as
provided in the said Contract for Services and the 0.1.:!es.
All of the foregoing, Contract for Services, resolutions and/or
Ordinances and any amendments thereto heretofore or hereafter
adopted, are hereby referred to as the means by which rates for
services by the Oakland-Orion System are fixed and established.
Section 11. No free service shall be furnished by the
system to the County or to any person, firm or corporation, public
or private, or to any public agency or instrumentalit
Section 12. Charges for services furnished by
system to any premises shall be a lien thereon, which liens are
enforceable by each public corporation as provided in the
Ordinances adopted by each public corporation, 7.nd any
thereto.
Section . The charges established in the Contract for
Services are calculated to be sufficient to provide for the
payment of the estima expenses of the administra ,)f the
System and of the transportation and treatment of sewage from
System by the Paint Creek Interceptor and the Clinton-Oakland
Sewage Disposal System; to provide for the payment of the intert
upon and the principal of all bonds payable therefrom, as and ahen
the same shall become due andpayable, and for the creation of a
reserve for the payment of principal and interest as required in
this ordinance; and to provide for such other exPenditurE
funds for the System as are required by this ordinance,
charges shall be fixed and revised from time to time by the County
so as to produce the foregoing amounts. The Contract for Services
also provides that Orion shall operate and maintain the System, as
lessee, and the County and each public corporation covenant and
agree that at all times such rates for services furnished by the
and
1. Operation and Mai ce Fund. Out of the revenues
System and other payments to be made and functions to be perT.77
by Orion shall be sufficient to provide for the foregoing in
addition to all expenses of operation, administration and
maintenance incurred by each public corporation with res:,:t to
the facilities of the system located in its corporate limits.
Section 14. revenues of the system are hereby
Pledged for the purpose of the following funds, and as collected
shall be set . aside into a fund to be known as the "Receiving Fund"
of the system, and shall be transferred therefrom periodically
into separate and special funds, as follows:
in the Receiving Fund, there shall be first set aside in each
quarter into a fund to be designated "Operation and Maintenc•
Fund", a sum sufficient to provide for the payment for the next
quarter ofall current expenses of administration by the County on
rn 11.1 account of the System. term "current expenses of
administration" shall be construed to include all reason and
necessary costs incurred on account of the issuance and payment of
the bonds and a proportionate share of the cost of operatinc7
County Executive and Department of Public Works (including with:)nt
limitation salaries, supplies and rent) as determined on the bTeis
of actual cost as described in the Contract r Services, but
shall exclude depreciation and payments into the Bond and Interes
Redemption Fund.
2. Bond and Interest, Redemption Fund. Out of the
remaining revenues in the Receiving Fund, there shallbe next set
aside each quarter into a fund to be designated "Bond and Interest
Redemption Fund", a sum proportionately sufficient to provide for
the payment as the same become due of the next maturing principal
and interest on each issue of bonds then payable from the revenues
of the System: Provided, that the amount so set aside for interest
on the bonds herein authorized, in each quarter during the first
six (6) months of each fiscal year, shall not be less than one-half
(1/2) of the total amount of interest (not capitalized) maturing
on the following July first, and during the last six (6) months of
each fiscal year, shall not be less than one-half (1/2) of the
total amount of interest (not capitalized) maturing on the
following January first, and the amount so set aside for priiLa'l
on the bonds herein authorized, in each quarter during each
year, shall not be less than one-fourth (1/4) of the amear. of
principal maturing on the July first immediately following such
fiscal year, and if there shall be any deficiency in the amount
previously set aside, then the amount of such deficiency shall
added to the current requirement. There is hereby appropriated
from the proceeds the bonds for the purpose of creating a
reserve in said Bond and Interest RedeTption Fund, for the bonds
herein authorized, the sum of $500,000. If at any time said
reserve shall be less than $500,000, then there shall be set aside
in said reserve quarterly a sum sufficient to restore said resolve
to $500,000 at the earliest possible time If any additional
bonds of equal standing shall be issued, the authorizing ordi
shall provide for a comparable reserve therefor. Moneys
Bond and Interest Redemption Fund may be used for the redeion
of bonds: Provided, that except in case of refunding, no h,anTh of
any issue less than all the outstanding bonds of said issue, hall
be called for redemption unless the County 7h.:1.l have on hand in
said fund sufficient moneys therefor not otherwise appropriated or
pledged, in excess of the amount interest and principal
maturing on all issues of bonds then
payable from the revenues of the system within the next eighteen
(13) months from the redemption date, and for the purpose of
determining the amount on hand, moneys in the reserve shall not be
considered as appropriated or pledged. In any case where m7) •-
are available for the redemption of bonds, such moneys may be ud
instead to purchase bonds on the open market at the best price or
prices obtainable, but not in excess of the then redemption Price.
When the principal amount owing upon any bonds shall be reduced to
the amount of the reserve therefor, then the principal of such
bonds shall be paid from such reserve. In respect to the
allocation and use of moneys in said Bond and Interest Pe.,:e ,rtion
if
any, between different issues or series of outstanding bonds.
The Contract for Services between the County and Orion
provides for the creation and maintenance by Orion of
replacement fund and a surplus fund and for the use of each of said
funds in connection with the System and with the obligation of the
public corporation with respect to the system-
No disbursements shall be made from said Receiving Fund
except to the special funds as above provided.
Section 15. In the event that moneys in the Receiving
Fund are insufficient to provide for the current requirements
the Operation and Maintenance Fund or the Bond ano:
Redemption Fund, the County shall call upon the public
corporations as provided in the Contract for Services to make
payment to the County to the extent of any deficits therein. Any
amount so transferred shall come from the replacement fund and
surplus fund created by each public corporation pursuant to the
Contract for Services.
Fund, due recognition shall be given as to priority
7,1
moneys in any other fund may be invested as authorized I n 7 law.
Section 16. All moneys in the several funds of the
System, except those in the Bond and inte ,t Rt ,Tettion Fund,
shall be held by the County Treasurer of Oa-land Ccunty. All
moneys from time to time in the Bond and Interest R ,--pion Fund
(including reserve moneys) shall be 'Kept on hand with the bank or
trust company at which the principal and interest on the herein
authorized bonds are •currently payable. Moneys in the Bond and
Interest Redemption Fund, over and above those being asaanalated
for the payment of the next maturing principal and intercst, and
the event of any such investment, the securities representing the
same shall be kept with the fund from which such purchase was made
and the income therefrom shall become a part f such fund.
Section 17. The County hereby covenants and agrees with
the holder or holders, from time to time, of the bonds herein
proposed to be issued ., that it will punctually perform all duties
with rence to the system and said bonds required by the
constitution and laws of the State of Michigan and by this
ordinance; that it will acquire the project herein provided for in
substantial accordance with the maps, plans and specifications
hereinbefore referred to, and will have the same in operation on
or before the 1st day of December, 1982; that it will not sell,
lease, mortgage or in any manner dispose of the system or any
substantial part thereof except to the public corporation in which
located, and not until all bonds payable from the revenues thereof
shall have been paid in full or provision shall have been made by
deposit of cash or United States Government obligations in amount
sufficient to pay all said bonds and the interest thereon at a call
date or at maturity; and that it will not permit any person, firm
or corporation to compete with it in the furnishing of
disposal services to premises within said Oakland-Orion Distr.'
-1 4-
further covenants and agrees with the holders of said Said
bonds that it will cause the public corporations to maintain said
C.747TIM System in good condition and to operate the in an efficient
manner and at a reasonable cost, so long as any of said bonds are
outstanding; that it will maintain or cause to be maintained
insurance on the System for the benefit of the holders of said
bonds in an amount which usually would be carried by priva
companies engaged in a similar type of business; that it will
prepare, keep and file such records, statements and accounts as
may be required by Act No. 94, Michigan Public Acts of 1933, as now
or hereafter amended; that it will promptly file with the original
purchasers of said bonds a copy of each annual statement which it
is required to file with the Municipal Finance Commission within
of each fiscal year; and that it
furnish a copy of the foregoing statement to any bondhnldnr
payment of the actual cost of such copy. Any such statement
six months after the close will
upon
hall
in such reasonable detail present the full finnia
condition of the System to the holders of bonds and shall include
comments on the manner in which the System's mana It has
complied with the provisions of this ordinance in respect to
several funds of the System.
-Section 18. While any of the bonds herein authorized to
be issued shall be outstanding, additional bonds payable from the
revenues of the System may be issued which shall have an ecual
standing herewith in the manner and to the extent provided in the
Contract for Services with the public corporations which includes
the right to issue additional bonds of equal standing in a sum not
to exceed Four Hundred Eighty Five Thousand Dollars ($485,000) for
the completion of the project herein described in event the bonds
herein authorized shall prove to be insufficient therefor and the
right to issue additional bonds from the net revenues
corporate rits the imprr)Y• EsEnts,
71 have .7.;% -fx2d or
corPorations in
enlargements or eytcnsions are
cih • then being bonds and for such
10 attached coca it ion
the System the purpose of ictraYing, enlarging and/ar
extending the System, or for the putpse -ss of refunding these
or anyany otherh:c .s -Tes:-7-ale from th•. 51 of the :-''c.;tem, all
provided by law, which bonds when isnr . :,.:hall have Ef .::nal stanins
with the bonds herein authori2. proviC that the public
provide
to
in
;
supplemented :or services or con's
r chars to userE for pryments to the CO
ion :17 of for all outs'. amounts require'.
additional lee..-H.E shall
default in
Fund or the Bond and
Municipal Finance
other state
the iSSUF:=--- Of: municipal
:if the county the'
to the
Peryfinb : .• n•y• see
Stat of Michigan (or such
an shall leve jurisdiction -
to zsue such additional boses
'Hng any
shall ccrEftitute a concluiee ,$)n. of the existence of
conditions permitting the
authorized to be issued, -.71 be sehstantialiy in the foil. •
form, to-wit:
of of - ,) lion
UNITED STATES OF AMERICA
STATE OF MICHIChN
COUNTY OF 0 -AT 7'
OAKLAND-ORION SEWAG1
REVENUE
DISPOSAL S'IS
OND
Number $5,000
KNOW ALL MEN BY THESE PRESENTS, that the Couy of
Oakland, Michigan, hereby acknowledges that it is indebte t or
value received promises to pay to the bearer hereof (or if this
bond be retered, to the registered holder hereof) the sum of
FIVE THOUSAND DOLLARS
on the first day of July, A.D. 19_, and to pay interest thereon at
the rate of ) per centum
per annum from the date hereof until paid, said interest being
payable on July 1, 1981, and thereafter semi-annually on Thr 'irst
day of January and July in each year, which principal and
are to be paid solely out of the revenues hereinafter specified.
Both principal and interest are payable in lawful money of the
United States of America at
, paying aget, in the
of , (or at the option of the h(;.)..: at
co-paying aec-: the
and surrender of this bond and the coupons hereto att.
severally mature.
This bond is one of a series of bonds
tenor .except as to maturity
numbered consecutively in the direct order of their matt
from 1 to 970, both inclusive, aggregating the principal ou
Four Million Eight Hundred Fifty Thousand Dollars ($4,85C,)
issued by said County of Oakland under and pursuant to and full
conformity with the Constitution and Statutes of the State of
Michigan (especially Act No. 94 of the Michigan Public ,7,-,.2ts of
1933, as amended), and Ordinance No, duly adopted t the
Board of Commissioners of said County on the Er of
, 19 . - The bonds of this series are issued irr :he
purpose of defraying the cost of the acquisition of the 0.1and-
Orion Sewage Disposal System in said County oi_riated at
$4.850,000, pursuant to a Contract for Services, dated as of
August 1, 1980, between the County and the Townshil,, of Orion,
herein called the public corporation.
This bond is a self-liquidating revenue bond, is
general obligation of said county or of any public 7c--r7,
and does not constitute an indebtedness of the said c..anoy ac of
any public corproation, within any constitutional, si -c.!-Lutory or
charter limitation. The principal of and interest on the of
this series, are payable solely from the revenues of
Orior ge Disposal Syst: (including any future
enlar -1t7, arid 6xtensi. thereof) payable
Cor'-r .at for S?rvices with the Townshir) of Orion
-17-
are a full faith and credit liit7d tax obligatic ,a of
Township,and the pant of both j-.J principal of and inters. on
said bonds, and on ,aly additional tends of equal st..erjurig wh:ch
may be issued pursuarC1 to the terms of said Ordinance, is secured
by a statutory first lien on such revenues payable to the County .
The bonds of this series maturing in the years 1990 to
2010, both inclusive, are subject to redemption prior to matu -Htv
at the option of the county, in any order, on any one or
interest payment dates on and after July 1, 1939,.. at the
value thereof and accrued interest plus a It71 ene- .1 ., bond in
accordance with the following schedule, to-wit:
$250 if called to be redse -:-1' on or after July 1, 1989, but
prior to July 1, 199'
$200 if called to be red- eT on or after July 1, 1994, but
prior to July 1, 19 t -
$150 if called to be redeemed on or after July 1, 1998, but
prior to July 1, 2002
$100 if called to be redeemed on or after July 1, 2002, but
prior to July 1, 2006
$ 50 if called to be redeemed on or after July 1, 2006, but
prior to maturity.
Notice of redemption shall be given to the holders of
bonds called to be redeemed, by publication of such notiee not
less than thirty (30) days prior to the date fixed for re.T...sption,
at least once in a newspaper or publication circulated in the City
of Detroit, Michigan, which carries as a part of its
service, notices of the sale of municipal bonds: prov:.:
where any bond shall he registeref:, then notice of th- r
thereof shall be given by regisered or certiled mLi
to the registered holder thar .Tor at the adH::a's
registration books of the inn ;1 paying m ut, which
shall be mailed not less thee thirl?: (30) days prior to
fixed for redemption. Bonds so called for rec7tion
bear interest after the date fixed for redemption, provi
are on hand with the paying agent to redeem the sie.
The County of Oakland hereby cove .J:,.7.,•ts and that
at all times while any of the bonds of this issue be
outstanding, there shall be in effect a Conl .—at for Services with
the Township of Orion establishing and 7,rovIling such rates for
services furnished by said Oakland-Orion rge D'sal System as
shall be sufficient to provide for the p. ne. of te experes of
administration of said -..ystem ned to obligate the Town2-,p, as
lessee, to pay all expem.,es of opretion and such expense fr the
maintenance thereof as 77,y be nr:cssary to preserve the in
good repair and working order; to provide for the payment cu. the
interest upon and the principal of all bonds p:y7.b1e therefrom,
and when the same become due and payable, and for the Lu:utenn
of a reserve in the bond and interest redemption fund a: recitiL
in said ordinance; and to provide for such other expenditures
funds for said system as are required by said ordinance.
shall be fixed and revised from time to :ursuant to the said
-Contract for Services so as to produce the 7 oregoing amounts.
-18-
This bond may be registered as to principal only in the
name of the holder on the books of the principal paying agent, and
such registration noted on the back hereof by an officer of said
paying agent, and thereafter no transfer shall be valid unl as
made upon the said books and likewise noted on the back
Transferability by delivery may be restored by registration to
bearer. Ny.gotiability of the interest coupons shall not h.:
affected by registration.
It is hereby certified, recited and declared that all
acts, conditions and things required to exist, happen and be
performed, precedent to and in the issuance of the bonds of this
series, existed, have happened and have been performed in due
time, form and manner as required by law.
IN WITNESS WHEREOF, the County of Oakland, Michigan, by
its Board of Commissioners has caused this bond to be signed in it
name by its Chairman and attested by its County Clerk, and
corporate seal to be affixed hereto, and has caused the annexed
interest coupons to be executed with the facsimile signature of
said Chairman and County Clerk, all as of the first day of October,
A.D. 1980.
COUNTY OF OAKLAND
By
Chairman of Board of C issionern
ATTEST:
County Clerk
(SEAL
at in the of paying a
ners
FACSIMILE
Chairman of board of
FACSIMILE
County Clerk
(COUP O N )
Number
On the first day of
County of Oakland, Michigan, will pay t
of .
Dollars, lawful money of the United States of America, aE
, A.D. 19 , the
er hereof -the sum
the option of the holder, at
in the of
cc-paying agent, same being the interest due on that day on its
Oakland-Orion Sewage Disposal System Revenue 7ond, No.
dated October 1, 1980. This coupon is not a ce -7l obligation of
said Coi,•, is payable solely from certain resnnues as set forth
in the bond to which this coupon pertains, and is subject to the
redemption provisions in said bond.
REGISTRY
Whose Name 'Regis
Signtute of Officer
ad Date of Registration of :-t Agent
Section 20. The proceeds of the sale of the bonds
herein authorized to be issued, shall. be received by the County
Treasurer and placed in the fund hereby established and designated
the Construction Fund: Provided that any portion of said pro-
ceeds, which from time to time is not required for immediate
disbursement for construction may be invested in United States
Government obligations or as otherwise provided by law upon
authorization by the County Executive and Department of Public
Works. From said moneys there shall first be transferred to the
Bond and Interest Redemption Fund, any premium and capitalized or
accrued interest paid to the County by the purchaser of said bonds
and the amount appropriated herein as a reserve. The balance of
such proceeds shall be used solely to pay the cost of the project
hereinbefore described and any engineering, legal and
expenses incident thereto, and shall be paid out only upon
authorization of the County Executive and Department of Public
Works: provided, that said County Executive and Department of
Public Works shall not authorize the payment of any such moneys
for construction work until there shall have been first filed with
it a request for payment from the contractor which is processed by
the Department of Public Works and set forth on a written construction
estimate executed and approved by authorized entati.-...s of the
consulting engineer and of the county. Said construction estimate
shall also show the amount of construction estimates which have been
theretofore approved for payment and the amount of the balance which
will be required for the completion of the project. There is hereby
appropriated from the proceeds of the sale of the bonds a sum sufficient
to pay the interest coupons due on the bonds on July 1, 1981 and
January 1 and July 1, 1982 as capitalized interest and the sum of
$500,000 as a reserve in the Bond and Interest Redemption Fund as
rovided in Section 14.2 11 ,-2r
-21-
Section 21. said Oakland-Orion Sewage
System Revenue Bonds shall not be issued until the Municipal
Finance Commission of the State of Michigan has approved such
issuance, and the County Executive and Department of Public Works
are hereby authorized and directed to make application to said
'ission for such approval.
• Section 22. Any unexpended balance of the proc S of
the sale of the bonds herein authorized, remaining after the
completion of the project, may to the extent of Seven Hundred
Twenty Five Thousand Dollars ($725,000) be used for
improvement, enlargement and/or extension of the System, if
use shall be approved by the Municipal Finance Commission, and any
remaining balance shall be paid immediately into tb sond and
Interest Redemption Fund and the same shall be used only for thi-
payment, redemption, or purchase at not more than the fair market
value of said bonds. Any bonds so acquired by peyent, redemption
or purchase shall be canceled and shall not be reissued and credit
'shall be given pursuant to the Contract to each public corporation
in reduction of the payments due to the County on account of such
bonds.
Section 23. This ordinance shall be recorded in the
minutes of the meeting of the Board of Commissioners at which it
was adopted, as soon as practicable after its passage, which
record shall be authenticated by the signatures of the Chairman of
the Board of Commissioners and County Clerk of said County, and
shall be published once in the Oakland Press, a newspaper of
general circulation within the said County. This ordinance
become effective immediately upon its adoption.
Section 24. If any section, paragraph, sentence, clause
or phrase of this ordinance shall be held invalid, the same shall
not affect any oth.,?_r part of this ordinance.
Section 25. That sealed proposals for the purchase of
$4,850.000 Oakland County "Oakland-Orion Sewage Disposal System
Revenue Bonds, to be dated October 1, 1980, be received up to
11:00 o'clock A.M, Eastern Daylight Time, on a date to be later
determined by the County Executive and Department of Public Works,
and that notice thereof be published in accordan c e with law in
The Bond Buyer, which notice shall be substantially in the
following form:
2.3
OFFICIAL
NOTICE OF SALE
$4,850,000
COUNTY OF 07,77L;-_HD, STATE OF MICH 7-C7.
OAKLAND-ORION SEWAGE DISPOSAL
REVENUE BONDS
S7-*D BIDS for the purchase of the above bonds will be received by
the. undersigned at the office of the Oakland County Department of
Public Wors located at No. 1 Public Works Drive, Pontiac,
Michigan on the day of
19 r until o'clock .M., Tim, _
at which time and place said bids will be publicly op ,:lnH and
Sealed bids will also be received, in the alternatiYa, on the
date and until the time by an agent of the
office of BendzinsH & Co., 1313 Buhl Buildin, P.*troit, Lie
where they will si.6;',:cusly- be publicly op end read. Pie
may choose either present bids and good faith checks
chore provided but not bo.h locations. The bids will be promptly
shTitted to the Oakland County Executive for award.
BOND TTAILS: Said vili be coupon bonds (registrable as to
prinl only) of the C:,<:...Anatiou of $5,000 each, datH nct:
1, 1900, numbered in dirt2t order of T.11 -_ity from 1 end
will bear interest from their date pay7')le on July 1, and
semi-annually thereafter.
Said bonds will mature on the let day of July, as
follows:
. 1982 - $100,0P
1933 - 100,00
1984 - 100
1985 - 100,0C
1986 - 150,000
1987 - 150,000
1988 - 150,000
1989 - 150,000
1990 - 150,000
1991 - 150,000
1992 - $150,000
1993 - 150,000
1994 - 150,000
1995 - 150,000
1996 - 150,000
1907 - 200,000
- 200,000
- 200,000
2000 - 200,000
2001 - 200,000
2002 - $200,00
2003 - 206,00
2004 - 200,000
2005 - 200,0
2006 - 200,00
2007 -
2008 - 200,000
2009 - 200,0 2 0
2010 - 200,000
PRIOR 7EDEMPTION: -Bonds 7.-aturing in the years 1990 thru 2010, shall
be subject to redemption pior to maturity, at the option of t::e
County, in any order, on ,TIny one or more interest Payment on
or after July 1, 1989, at par and accrued intrest to the date
fixed for redemption, plus a premium as
$250 if called to be redeemed on or after July 1, 1989, but
prior to July 1, 1994
$200 if called to be redeemed on or after July 1, 1994, but
prior to July 1, 1990
$150 if called to be recemed on or after July 1, 1993, but
prior to July 1,
.5100 if called to be on or after July 1, 2002, but
prior to July 1, 'C•
$ SO if called °-o be r c7, on or after July 1, 2onG,
t[ .„'Hriy.
Thirty days notice of redemption shall be given by
publication, at least once in a im*s:..,..T ,:‘r or publication
circulated in the City of Detroit, Michigan, which carries as part
of its regular service, notices of sale of municipal bonds, and :LI
case of registered bonds thirty (30) days notice shall given
registered or certified mail to the registered holer at
registered address. Bonds called for redemption shall not
interest after the recien date, provided funds are on hand
with the paying agent to redeem the same.
INTEREST RATE AND T)--rf)')ING ..,TIT .LS: The bonds shail bear interest
at a rate or ratee eceding 10% per annum, to be :-1.d by the
bids therefor, exps .ri in multiples of 1/8 or 1/20 cf 1%, or
both. The interest on any one bond shall be at ona rate only, all
bonds maturing in any one year must carry t ...e sae interest rate
and each coupon period shall be repro.-acJ by one interest
coupon. None of said bond shall bear int-fest at a rate par annum
which is two (2) percentae points less than the rate borne by any
other bond. No proposal for the purchase of less than all of the
bonds or at. a price less than 100% of their par value will be
considered.
PAYING AGENT: Both principal and interest shall he payable at a
bank or trust comPany locate... in Michigan qualified to act as
paying agent under State or United States law, to be desinated by
the original purchas of the bonds, who may also design:::.:- a co-
paving agent, which be located outside of Michigan,
to act as paying ac;- ,heder the law of the State in which
or of the United Stat•..-, both of which shall be subject to a-7_:val
of the undersigned.
PURPOSE AND S'ECURTTY: The bonds are issued under
of Act 94, Public Acts of Michigan, 1933, as
Ordinance No, of the county, for the pu : a:.. or 6efrayig
the cost of acquiring constructing the Oakl -A-Orion
Disposal System b::sf'c are payable priily and or -
with additional bmd standing whis!-, ccv be iss. as cat
forth in said Ore jeans :, from the net revn:!os said:
the County of Oakland and any additiona J'o, and a -H:s .tt,..ory
first lien on said revenues has been T:stablished by said
Ordinance. The county has coven:.; -nd agreed to and
maintain at all times while T7.7 of such shall be outstaling
such rates for services furn 4 hcd: L):
shall be sufficient to provde fpr payiF,et of the
expenses of administration of said System, of the princi
interest on said bonds when due, to maintain the bond rE
account therefor, and to:' provide for such other
funds for said -S .ystem arere require by said Orein-:*:L,
apPropriated frau the procea to the Bond and Interest
Redemption Fund a reserv of $500,fl0:). The Township of Orion has
covenanted and agreed in a Contract for Services to Eve 5.
maintain the facilities of the Oakland- System,
and to establish and maintain a replacnL and surplu
connection therewith and has in said Contract for Services ..'!:ged
its full faith and credit, subject to applicable tax limii7Lons
to pay for sewage disposal services from the System as ..ural
first budget oh7i7 .ion in amounts adequate to pay Pri•:=J of
and interest on LL- bonds, ta replenish and :intain th,.;
in the Bond and Interest Redtion Fund foi tS.: bonds, al -1
the expenses of administratica of the county tho proportiorte
cots of operation, maintena -,2e and sewage tr.,-_•..2nt through the
existing county sewage disc:i:1 facilities to which this Caklancl-
Orion Svstcm will be connecte:,.
T.77 -mTONAL 77DT: For the terms upon which additional bonds may
of equal standing with the bonds herein described, as to
revennos of said System, reference is made to the above described
Ordin a nce.
GOOD FAITH: A certified or cashier's check in the amount of
97,0u0, drawn upon an incorporated bank or trust comp,s,n:rnd
pa7ab7e to the order of the Treasurer of the Connty of Oar
acco -27:.)any each bid as a guarantee of good faia on the par:: th ,z
bidder, to be forfeited as liquidated damagns if sue'- Did be
accepted and the bidder fails to take up and pay for the No
interest shall be allo•:1 -_:11 the good faith checks and checks of
the unsuccessful bidders wL1 be protly returned to each
bidder's representative y registerod mail. The good faith
check of the successful bieder will be ii:m:ediately cashed and
payment for the balance of the purchase price of the bonds shall be
made at the closing.
rates specified in the bid, the dollar value
interest on the bonds from , 19 , to their L
and deducting therefrom any premium.
LEGAL OPINION: Bids shall he conditioned upon the unqualified
approving opinion of Dickinson, Wright, McKean, Cudlip nen,
attorneys of Detroit, Michigan, a copy of which opinion will be
printed on the reverse H ,HL_. of each bond, and the original of which
will be furnished without expense to the purchaser of the bonds at
the deivery thereof.
DET-17777.7 OF F:.)-Rs: The county will furnish bonds readf,. for
:ecution at its expense. Bonds will be delivered without n .n..7ny:.,e
the purchaser at Detroit, Michian, Chin7n, Illinois en. New
York, New York. The usual cling docnents, including a
certificate that no litigation a -Er-noting the issuance
of the bonds, will be a. time of the delivery of the
bonds. If the bonds are not tnnHnred for delivery by twE:lve
o'clock noon, Eastern a, on the 45th day follo
the data of sale, or the first husir.ar day thereafter if saiC
day is not a business day, the sucesful bidder may on that
or any time thereafter until. delivc.: of the bonds, withdrzn nis
proposal by serving notice of cannellation, in writing, ou lhe
undersigned in which event the ;:oJnty Treasurer shall proly
return the good faith dn..-)esit, for the bonds shall be ;Tde
in Federal Reserve FI2. iLen ,..nd interest to the bat:, of
-deliveyr of the bonds be pain.: by the purchn• at the
delivery..
,-•••
pro,lncs the la: ..t interest cost cr .:Iputedi by determining,
rate or
BONDS: The bonds will be ,7u -arded to the bidder whose bid
at the
at all
Cf-YNFriNT: Furtl
be c -tal -nd from
Advisers, 13.i °, 7nhl Build
(313) 961-8222.
7 informo±ien with respect to said
Municipal Finance
Detroit, Michigan, 48226. Tel:n .nc...
THE RIGHT IS RST.TRVED TO REJECT ANY OR ALL BIDS.
7: containinc: the bids should be plainly marked. "Proposal
..h.-,d-Crion System Revenue Bonds".
ENVET'
for
County T.ocutive, Oakland County
MicIiicrT
Dated:
AP
3TZvT7' OF MICHGI_N
MU17•27PAL F711.;\T.. ISSIQN
Section 26. All ordinances and resolutions or parts thereof,
insofar as the same may be in conflict herewith are hereby repealed.
County Clerk Cbairm of Board of Commissioners
BE IT FURTHER RESOLVED that the County Executive be and
he is hereby authorized and directed to forward the foregoinR
notice of sale and a sworn application for permission to issue
said bonds to the Municipal Finance Commission for its approval
and that the said form, upon approval, be published in The Bond
Buyer, as required by law, so as to offer the bonds therein des-
cribed on a date and time to be chosen by the County Executive.
MR. CHAIRMAN, I move the adoption of the foregoing
resolution.
STATE OF MICHIGAN )
COUNTY OF OAKLAND )
I, the undersigned, do hereby certify that the foregoing
is a true and complete copy of proceedings adopted at a regular
meeting of the Oakland County Board of Commissioners held on the
SS:
14th day Of August 1980, the original of which
proceedings is on file in my office.
IN WITNESS WHEREOF, I have hereunto affixed my official
gnature this 14th day of August , A.D. 1980.
County Clerk
Lynn D. Al len
#9517 August 14, 1980
Moved by Wilcox supported by Moxley the resolution be adopted.
Discussion followed.
Vote on resolution:
AYES: Pernick, Peterson, Price, Roth, Wilcox, Caddell, DiGiovanni, Doyon,
Dunaskiss, Gabler, Gorsline, Hobart, Kasper, Kelly, Moffitt, Montante, Moore,
Moxley, Murphy, Page, Patterson. (21)
NAYS: Perinoff, Fortino. (2)
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lynn D. Allen, Clerk of the County of Oakland and
having a seal, do hereby certify that I have compared the annexed copy of
..oiscellaneoyssolution .#.g5t7.AcmtAd .En,..the..0Ayarpty..Eipp!Apf...
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
this day
Lynn D, Allen......................Clerk
Clerk
\ PAINT CREEK
!NTERCEFTOR SEWER
OAKLAND- ,i1ON SEWAGE :3POSAL SYSTEM
EXHIBIT