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HomeMy WebLinkAboutResolutions - 1978.08.03 - 125818565 RESOLUTION NO. PE: HOLLY SEWAGE DISPOSAL SYSTEM BY: PLANNING AND BUILDING COMMITTEE TO: THE OAKLAND COUNTY BOARD OF COMMISSIONERS MR. CHAIRMAN, LADIES AND GENTI,7 1-: WHEREAS, the Oakland County Drain Commissioner, as County Agency, has approved and adopted, and has submitted to this Board of Commissioners for its approval, revised estimates of the cost for the acquisition and construction of sewage dis- posal facilities for the Holly Sewage Disposal System (which revised estimate is attached as Revised Exhibit "B" to the hereinafter mentioned contract), all prepared by Capitol Con- sultants, Inc., consulting engineers; and WHEREAS, the _Village Council of said Village of Holly has approved the said revised exhibit to said Contract by resolu- tion of its Village Council and has authorized and directed that said approval be certified for and on behalf of the Village by the President and Village Clerk, which resolution reads as fol- lows: /1/ ^ - PRESENT 7-71 ABSENT: At a ,...4,„e/ meeting of the Village Council of the Village of Holly held at the Village Ball in said Village on the /1" day of , , 1978, at 7:)0 o'clock 4L.M., Eastern Daylight Time. The Clerk presented the Revised Exhibit "B" referred to in the following resolution. The following resolution was offered by and seconded WHEREAS, the Village of Holly has heretofore entered with the County of Oakland into a Holly Sewage Disposal System Contract, dated as of August 1, 1976, to which is attached an Exhibit "B" on which the cost of the sewage disposal project was estimated to be $5,160,000, and WHEREAS, said Exhibit "B" was subsequently revised to indicate a total estimated project cost of $6,123,250.00, which cost was to be financed by a combination of Federal E.P.A. and State D.N.R. pollution abatement grants and the issuance of County bonds in the amount of $2,000,000.00 and WHEREAS, the county has issued and sold $2,000,000 of Oakland County Sewage Disposal Bonds - Holly System, dated May 1, 1973, and in the meantime the county has obtained construction bids for the project which bids have been sufficiently in excess of the project costs estimated and set forth in Exhibit "B" so that it is necessary and desirable to prepare revisions to said estimated costs and said exhibit as set forth on a Revised Exhibit "B" submitted herewith; and WHEREAS, it is provided in paragraph 8 of said Contract as follows: 8. In the event that it shall become necessary to increase the estimated cost of the system as hereinbefore stated, or if the actual cost of the system shall exceed the estimated cost, whether as the result of variations or changes permitted to be made in the approved plans or otherwise, then (without execution of any further contract or amendment of this contract) the Village Council may, by resolution adopted within fifteen days after the receipt of construction bids, direct that a portion of the system be deleted sufficient to reduce the total cost to an amount which shall not exceed the total estimated cost as hereinbefore stated by more than 5%, provided that such deletion shall not materially change the general scope, overall design and purpose of the system, or in the absence of the adoption of such a resolution the village shall pay or procure the payment of the increase or excess in cash, or county bonds in an increased or additional amount shall (upon adoption of an authorizing resolution therefor by the Board of Commissioners) be issued to defray such increased or excess cost, to the extent that funds therefor are not available from other sources: Pro- vided, 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 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 the total cost of the system to exceed by more than 5% its total estimated cost as hereinbefore stated, unless the Village Council shall have previously 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 paid or its payment procured by the village in cash or be defrayed by the issuance of increased or additional payments agreed to be made by the village to the county in the manner hereinbefore provided: Provided, further, that the adoption of such resolu- tion by the Village Council 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 project and the issuance of the additional bonds by the county, if the county has previously issued or contracted to sell 'rnds to pay all or part of the cost of the project and the -lance of the additional bonds is necessary (as determine the county) to pay such increased, additional or exces , sts as are essential to completion of the project according to the plans as last approved prior to the time when the previous bonds were issued or contracted to be sold. ; and WHEREAS, it is desirable, although not necessary, for this Village Council to approve the cost increases set forth on Revised Exhibit "B", thereby to indicate its willingness and ability to raise the additional funds necessary to pay the increased local share of the cost of said project and to assist the county in obtaining increases in the Federal EPA and State DNR pollution abatement grants for said project. THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE VILLAGE OF HOLLY, f OAKLAND COUNTY, MICHIGAN, as follows: 1. That the Revised Exhibit "B" to the Holly Sewage Disposal System Contract, as submitted, dated as of August 1, -1976, tween the County of Oakland, as party of the first part and th Village of Holly, as party of the second part, which Contract provides for the acquisition and construction of the Holly Sewage Disposal System under Act 342, Public Acts of Michigan, 1939, as amended, for the cost thereof and the manner of operation thereof, be approved as an increase in the cost of said system to be funded by the issuance by the county of additional bonds as provided in paragraph 8 of said Contract, and that the President and the Village Clerk be and they hereby are authorized and directed to certify the approval on behalf of the Village of Holly of said Revised Exhibit "B". 2. That a copy of said Revised Exhibit "B" to said Contract be attached to the minutes of this meetinc ADOPTED: Yeas -,(1 1 Nays - SS: STATE OF MICHIGAN COUNTY OF OAKLAND We, the undersigned, the duly qualified and acting Village Clerk and President of the Village of Holly, Oakland County, Michigan, do hereby certify that the foregoing is a true and complete copy of proceedings taken at a Special meeting of the Village Council of the Village of Holly held on the 18th day of July, 1978, the original of which is on file in the Village office. IN WITNESS WHEREOF, we have hereunto affixed our official signatures this 18th day of July, A.D., 1978. Village Presiden v.' Village Clerk Village Funds . . Initial Bond Issue . • . . 100,000 2,000,000 July 11, 1978 HOLLY SEWAGE DISPOSAL SYSTEM Estimate of Cost (Revised) Wastewater Treatment Plant Expansion & Improvements.. . $5,174,000 Interceptor; Collection Sewers and Rehabilitation of Existing Sewers . . . . . . . . 3,508,944 Total Construction Contract Cost . . $8,682,944 Engineering ' (Planning, Consulting Engineer (Design & Plant Inspection) . $ 593,000 Sewer Layout (by County). . . . . . 22,400 . Soil and Material Testing . . . . . . 5,000 Soil Borings & Investigation. . . . . . 30,000 Industrial Cost Recovery; User Charge Ordinance, Plan of Operation and Materials Testing.. 94,900 . 745,300 Project Administration . . . . . . . . . . . . 143,000 'ewer Inspection (by County) . . . . . . . . . . 120,000 asement Acquisition . . . . . . . . . 75,000 Act 347 Permit . - . • . . . . . . . , 2,900 Financial Consultant . . . . . . . . . ' ° . Bond Counsel - . . . . . . . . . , ., 17,750 Bond Prospectus . . . . . . . . . . . . 3,000 Bond Printing . . . . . . . . 750 Publishing . . . . . . . . . . . . . . . Oakland Press . . . . . . . . . . 500 Michigan Contractor & Builder . . . . . . 150 Bond Buyer . . . . . . : . . . . 1,000 . Holly Herald-Advertiser . . . . . . . 200 1,850 . . State Administrative Fee . . . , . 43,630 . . . . . . Contingency . . . . . . . . . . . . 229,805 Capitalized Interest on Initial Bond Issue , . . . . . 330,300 Capitalized Interest on Supplementary Bond Issue . . , 280,000 . . Total Estimated Project Cost • • 0 .$10,690,029 . • 'ederal and State Grants Step 1 . . . . . . 74,399 Step 2 . • • • .• 207,840 Step 3 . . . . . 3,841,011 Supplementary Step 3 (exclusive of contingency . 3,066,779 9,290,029 Supplementary Bond Issue Required . . • • $1,400,000 I hereby estimate the period of usefulness of this facility to be forty (40) years and upwards. CAPITOL CONSULTANTS, INC. lton D. Redick, P.E. P. E. #12362 REVISED EXHIBIT "B" THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE OAKLAND COUNTY, MICHIGAN, as follows: 1. That said resolution and revised estimate be and the same are hereby accepted and approved, that the County Clerk shall endorse thereon the fact of such approval, and that the same shall be returned to the County Agency. 2. That said approval by the County of 0:0dand and the Village of Holly be and the same hereby is accc '3 as the basis by the County for the issuance of additional " 's as provided in paragraph 8 of said Contract and for th :Tlication to the Federal EPA and State DNR for indreased grants for said sewage disposal project, the reS'olution authorizing said bonds being as follows: SERIES B BOND RESOLUTION WHEREAS, the Oakland County Board of Commissioners, by Miscellaneous Resolution No. 8301, adopted on December 15, 1977, authorized the issuance of $2,000,000 of Oakland County Sewage Disposal Bonds - Holly System, dated May 1, 1978, in anticipation of payments to the County by the :Villas , of Holly pursuant to the Contract dated as of August 1, 1976, ereby the County agrees to construct and finance said Holt. Disposal System and the Village agrees to pay the c thereof, based upon an estimated cost of $6,123,250 and as represented by the $2,000,000 of bonds issued by the County to finance the local share of the estimated cost of said project after the application of the estimated proceeds of Federal EPA and State DNR pollution abatement grants to said project cost; and WHEREAS, construction bids for the construction of said sewage disposal project pursuant to said Contract have been received in amounts substantially in excess of estimated costs so that it has been necessary to revise the said estiamted cost from $6,123,250 to $10,690,029, which revision makes necessary the issuance by said County of additional bonds in the amount of $1,400,000, after application against said increased cost of the amount of available and estimated increased Federal and State grants, as appears from the Revised Exhibit "B" submitted to and approved by this Board of Commissioners; and WHEREAS, it is provided in paragraph 8 of said Contract, as follows: "8. In the event that it shall become necessary to increase the estimated -cost of the system as here- inbefore stated, or if the actual cost of the system shall exceed the estimated cost, whether as the result of variations or changes ;Permitted to be made in the approved plans or otherwise, then (without execution of any further contract or amendment of this contract) the Village Council may, by resolution adopted within fifteen days after the receipt of construction bids, direct that a portion of the system be deleted suf- ficient to reduce the total cost to an amount which shall not exceed the total estimated cost as herein- before stated by more than 5%, provided that such deletion shall not materially change the general scope, overall design and purpose of the system, or in the absence of the adoption of such a resolution the village shall pay or procure the payment of the in- crease or excess in cash, or county bonds in an in- creased or additional amount shall (upon adoption of an authorizing resolution therefor by the Board of Commissioners) 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 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 the total cost of the system to exceed by more than 5% its total estimated cost as hereinbefore stated, unless the Village Council shall have previously 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 paid or its payment procured by the village in cash or be defrayed by the issuance of increased or additional payments agreed to be made by the village to the county in the manner hereinbefore provided: Provided, further, that the adoption of such resolution by the Village Council 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 project and the issuance of the 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 project and the issuance of the additional bonds is necessary (as determined by the county) to pay such increased, additional or excess costs as are essential to com- pletion of the project according to the plans as last approved prior to the time when the previous bonds were issued or contracted to be solcl." and it is further provided in paragraph 6 of said Contract, in referring to Exhibit "B" to said Contract and to the revision of said Exhibit "B", as follows: "In the event that additional county bonds shall be issued under the authority of this contract, to defray a part of the cost of the system, the foregoing obligations shall apply to such part of the cost and to said additional bonds insofar as appropriate thereto." ; and WHEREAS, there has been submitted to this Board of Commissioners a Revised Exhibit "B" to said Contract, dated as of July 11, 1978, which has been approved and accepted by the village and by this Board of Commissioners as the basis for the issuance of additional bonds as provided in paragraph 8 of said Contract; and WHEREAS, under said Contract of August 1, 1976, the :Village of Holly is to pay to the County the amount of each annual bond principal maturity, and in addition thereto is to pay semi-annually, the bond interest and the paying agent fees and other bond handling costs as determined pursuant to said Contract on account of any bonds issued by the county to finance said project; and WHEREAS, the County is desirous of issuing additional bonds in anticipation of the payments to be made by the Village under said Contract of August 1, 1976, on account of said in- creased sewage disposal project cost; and WHEREAS, the County Agency has approved this bond resolution and recommended its adoption by the Board of Commis- sioners. THEREFORE, BE IT RESOLVED BY THE ,BOARD OF COMMISSIONERS OF OAKLAND COUNTY, MICHIGAN, as follows: 1. That the bonds of said County of Oakland, aggregat- ing the principal sum of One Million Four Hundred Thousand Dollars ($1,400,000) be issued for the purpose of defraying part of the increased cost of acquiring the Holly Sewage Disposal System. That said bonds shall be known as "Oakland County Sewage Disposal Bonds - Holly System, Series B"; shall be dated September 1, 1978; shall be numbered consecutively in the direct order of their maturities from 1 upwards; shall be in the denominae —rn of $5,000 each; shall bear interest at a rate or rates to be - _:after determined not exceeding eight percent (8%) per anre , , payable on May 1, 1979 and semi-annually thereafter on the i est days of May and November in each year; and shall mature on the first day of May in each year as follOws: 1983 - $ 25,000 1984 - 25,000 1985 - 25,000 1986 - 25,000 1987 - 25,000 1988 - 50,000 1989 - 50,000 1990 - $ 50,000 1991 - 50,000 1992 - 50,000 1993 - 50,000 1994 - 75,000 1995 - 75,000 1996 - 75,000 1997 - $ 75,000 1998 - 100,000 1999 - 100,000 2000 - 100,000 2001 - 125,000 2002 - 125,000 2003 - 125,000 Bonds maturing on or after May 1, 1994 shall be subject to redemp- tion in any order at the option of the County prior to maturity on any one or more interest payment dates, on or after May 1, 1993. Bonds called for redemption shall be redeemed at the par value thereof and accrued interest plus a premium on each bond computed as a percentage of the face amount thereof in accordance with the following schedule: 3% if called to be redeemed on or after May 1, 1993, but prior to May 1, 1996 2% if called to be redeemed on or after May 1, 1996, but prior to May 1, 1999 1% if called to be redeemed on or after May 1, 1999, but prior to May 1, 2003 Notice of redemption shall be given to the holders of the bonds to be redeemed by publication of such notice not less than thirty , (30) days prior to the date fixed for redemption, at least once in a newspaper or publication circulated in the State of Michigan, which carries as a part of its regular service, notices of the sale of municipal bonds. 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. Bonds maturing prior to the year 1994 shall not be subject to redemption prior to maturity. All bonds shall have proper coupons attached thereto evidencing interest to their respective dates of maturity. 2. That the principal of bonds of said series and the interest thereon shall be payable in lawful money of the United States of America, at such bank and/or trust company which qualifies as a paying agent under Federal or Michigan law and which shall be designated by the original purchaser of the bonds. Such purchaser shall have the right to name a similarly qualified co-paying agent. 3. That the Chairman of the Board of Commissioners, the County Agency, and the County Clerk of the County of Oakland, are hereby authorized and directed to execute said bonds for and on behalf of the said County, and to affix the seal of said county thereto, and the County Agency is hereby authorized and directed to execute the interest coupons to be attached to said bonds by causing to be affixed thereto his facsimile signature; and that upon the execution of said bonds and attached coupons, the same shall be delivered to the Treasurer of said county who is hereby authorized and directed to deliver said bonds and attached coupons to the purchaser thereof, upon receipt of the purchase price therefor. 4. That the said bonds are to be issued pursuant to the provisions of Act No. 342 of the Michigan Public Acts of 1939, as amended, in anticipation of the payments to become due to the County from the _Village of Holly under said Contract of August 1, 1976, which payments are in the principal amount of the bonds herein authorized with interest thereon as therein provided. As provided in said Act No. 342, the full faith and credit of the Village of Holly is pledged to the making of said payments when due, and in addition, there is hereby pledged, as authorized in said Act No. 342, the full faith and credit of the County of Oakland to the payment of the bonds, both princi- pal and interest when due. 5. That the obligation of said village to make the payments provided in the Contract, in anticipation of which the Oakland County Sewage Disposal Bonds - Holly System, dated May 1, 1978, in the amount of $2,000,000, are issued is separate but equal and on a parity as a pledge of full faith and credit with the obligation of said village to make the payments set forth in the Contract, as supple=nted by the attachment thereto of the Revised Exhibit "B" thereto, in anticipation of which the Oakland County Sewage Disposal Bonds - Holly System, Series B, dated September 1, 1978, in the amount of $1,400,000 are issued. The pledge by the County of Oakland of its full faith and credit to payment of said bonds, both series, are authorized in said Act No. 342, applies equally and without preference and priority to the bonds of each series. 6. That all moneys paid to the County by the Village pursuant to said Contract of August 1, 1976, shall be set aside by the County Treasurer in a separate fund and bank account to be used solely for the payment of the principal of and interest on the two series of bonds issued in anticipation thereof. Interest payable on the bonds for thirty (30) months subsequent , to the date of delivery thereof is capitalized and is payable from the proceeds of said bonds. 7. That said bonds and attached coupons shall be sub- stantially in the following form: Number $5,000 , upon pre- UNITED STATES OF 7=7ICA STTI177 OF MICHIGAN COUL;7.: OF OAKLAND OAKLAND COUNTY SEWAGE DISPOSAL BOND - HOLLY SYSTEM, SERIES B KNOW ALL MEN BY THESE PRESENTS, that the ty of Oakland, Michigan, hereby acknowledges itself indeb. and for value received, promises to pay to the bearer herec:f, ,:he sum of FIVE THOUSAND DOLLARS on the first day of May, A.D. 19, , together with interest there- on from the date hereof until paid, at the rate of ) per centum per annum, payable May 1, 1979, and thereafter semi-annually on the first days of May and November in each year. Both principal and interest hereof are payable in lawful money of the United States of America at in the City of sentation and surrender of this bond and the coupons hereto attached as they severally mature. This bond is one of a series of bonds of like date and tenor except as to maturity , numbered consecutively in the direct order of their maturities from 1 to 280, both inclusive, aggregating the princi- pal sum of One Million Four Hundred Thousand Dollars ($1,400,000), issued under and pursuant to and in full conformity with the Constitution and Statutes of the State of Michigan, and especially Act No. 342 of the Michigan Public Acts of 1939, as amended, for the purpose of defraying part of the increased cost of acquir- ing the Holly Sewage Disposal System. Bonds of this series maturing prior to May 1, 1994 are not subject to redemption prior to maturity. Bonds maturing on or after May 1, 1994 shall be subject to redemption in any order, at the option of the County prior to maturity on any one or more interest payment dates on or after May 1, 1993. Bonds called for redemption shall be redeemed at the par value thereof and accrued interest plus a premium on each bond computed as a percentage of the face amount thereof in accordance with the following schedule: 3% if called to be redeemed on or after May 1, 1993, but prior to May 1, 1996 2% if called to be redeemed on or after May 1, 1996, but prior to May 1, 1999 1% if called to be redeemed on or after May 1, 1999, but prior to May 1, 2003 Notice of redemption shall be given to the holders of bonds called for redemption by publication of such notice not less than thirty (30) days prior to the date fixed for refae:',:ion, at least once in a newspaper or publication circulated in the State of Michigan, which carries as a Part of its regular service, notices of the sale of municipal bonds. 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. This bond as to both principal and interest, is payable from moneys to be paid to the County of Oakland by the Village of Holly, pursuant to a certain Contract dated August 1, 1976, between the County of Oakland and said village whereby said village agrees to pay to the said County the increased cost of acquiring the Holly Sewage Disposal System in annual installments in the same amounts as the annual maturities of the bonds of this issue, and semi-annually to pay the amount of the interest and bond handling charges. The full faith and credit of said village is pledged for the prompt payment of its obligations pursuant to said Contract, and in addition, by affirmative vote of a majority of the members-elect of its Board of Commissioners, the full faith and credit of the County of Oakland is pledged to the payment of this bond, principal and interest, when due. 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 the Constitution and Statutes of the State of Michigan, and that the total indebtedness of said County, including this series of bonds, does not exceed any constitutional or statutory limitation. IN WITNESS WHEREOF, the County of Oakland, Michigan, by its Board of Commissioners, has caused this bond to be signed in its name by the Chairman of its Board ofCommissioners, its County Agency, and its County Clerk, and its corporate seal to be affixed hereto, and has caused the annexed interest coupons to be executed with the facsimile signatures of said County Agency, all as of the first day of September, A.D. 1978. COUNTY OF OAKLAND, MICHIGAN By Chairman of Board of Commissioners By County Agency By (SEAL) County Clerk (COUPON) Number On the 1st day of , A.D. 19_, the County of Oakland, Michigan, will pay to the bearer hereof, the sum shown hereon in lawful money of the United States of America at the in the City of (FACSIMILE) County Agency , same being the interest due on that day on its Oakland County Sewage Disposal Bond - Holly System, Series B, dated September 1, 1978. No. 8. That the said bonds shall not be issued until the Municpal Finance Commission of the State of Michigan shal1. have first issued its order granting permission to so do, as provided in Act No. 202 of the Michigan Public Acts of 1943, as amended, and the County Agency is hereby authorized and directed to make . application to said Commission for the issuance of such order. 9. The County Agency is hereby authorized to sell said bonds at not less than par and accrued interest in accor- dance with the laws of this state and to do all things necessary to effect the sale and issuance of said bonds, subject to the provisions of this resolution. 10. All resolutions and parts of resolutions, insofar as the same may be in conflict herewith, are hereby rescinded. The Planning and Building Committee by Richard R. Wilcox, Chairperson, moves the adoption of the foregoing resolution. PLANNING AND BUILDING COMMITTEE Richard R. Wilcox, Chairperson Supported by Mr. Da 1 y AYES: Peterson, Price. WI l cox , Aaron, Daly-, Di giovann , Doyon, Fortino, Gabler, Hoot, Kasper, Kelly ,Lanni, McDonald, Moffitt:, Montente, Moxley, Murphy Olson, Page, Per inof f Perni'ck. (22„) NAYS: I mson. (11 ABSENT: Oors1 ine, McConnell, Patterson, Roth. (4) Resolution adopted. STATE OF MICHIGAN ) COUNTY OF OAKLAND ) I, the undersigned, the duly qualified and acting County Clerk of the County of Oakland, do hereby certify ;- t the forego- ing is a true and complete copy of a resolution ad( I by the Board of Commissioners at a regular meeting of saic -d, held on the 3rd day of August , 1978, the °rig!.....of which is on file in my office. IN WITNESS WHEREOF, I'have hereunto affixed my official SS: A.D. 1978. signature this 3rd , day of August County Clerk Lynn D. Al len