HomeMy WebLinkAboutResolutions - 1974.08.08 - 14969The following resolution is with reference to THE CT.,INTON -OAKLAND
SEWAGE DISPOSAL SYSTEM - WEST BLOOM FIELD EXTENSION NO. 2, AND TS TO
APPROVE THE PLANS, SPECIFICATIONS, ESTIMATE OF COST AND AGREEMENT.
and since a copy of the resolution has, prior to this meeting been mailed
all members of this Board ---- I respectfully request that reading of same be
waived.
The Public Works Committee, by
its , moves the adoption of the followin
Resolution:
Patnales presented the following resolution, Mr.
At a regular meeting of the Board of Commissioners of
Oakland County, Michigan, held in the Commissioners' Auditorium
in the County Service Center, in the City of Pontiac, Michigan,
on Thursday the 8th day of August , 1974, at
10:05 o'clock A.M., Eastern Daylight Time.
6774 Miscellaneous Resolution No.
Recommended by the Board of Public Works
Re: CLINTON-OAKLAND SEWAGE DISPOSAL SYSTEM
WEST BLOOMFIELD EXTENSIONS NO. 2
a copy of which has been sent to each member of the Board of
Commissioners.
RESOLUTION PROPOSED BY OAKLAND COUNTY
BOARD OF PUBLIC WORKS WITH RESPECT TO
CLINTON-OAKLAND SEWAGE DISPOSAL SYSTEM
- WEST BLOOMFIELD EXTENSIONS NO. 2
WHEREAS, the Oakland County Board of Public Works has
submitted to this Board plans and specifications and estimates of
the cost and period of usefulness of the Clinton-Oakland Sewage
Disposal System - West Bloomfield Extensions No. 2, prepared by Neree D.
Alix, registered professional engineer, which have been approved
by the Board of Public Works; and
WHEREAS, the Oakland County Board of Public Works has
approved a form of Contract to be dated September 1, 1973, between
the County of Oakland and the Township of West Bloomfield for the
extension of the Clinton-Oakland Sewage Disposal System to be
known as the West Bloomfield Extensions No. 2, and did authorize the
Chairman and Secretary of the Board of Public Works to execute
said Contract subject to the approval of this Board of Commissioners;
arid
WHEREAS, the aforesaid municipality will pay 100% of the
cost of the project; and
WHEREAS, the said Contract is to be executed by the
said municipality.
NOW, THEREFORE, BE IT RESOLVED, that the said plans and
specifications and estimates of cost and period of usefulness be
approved and the County Clerk is hereby authorized to endorse there-
on the fact of such approval and return same to the Board of Public
Works.
BE IT FURTHER RESOLVED, that the Chairman and Secretary
of the Board of Public Works be and they are hereby authorized and
directed to execute and deliver on behalf of said County of
Oakland, a Contract to be dated September 1, 1973, between the County
of Oakland and the Township of West Bloomfield which reads as
follows:
CONTRACT
CLINTON-OAKLAND SEWAGE DISPOSAL
SYSTEM, EXTENSIONS NO. 2 WEST
BLOOMFIELD
THIS CONTRACT, made as of the 1st day of September, 1973,
by and between the COUNTY OF OAKLAND, a Michigan county corporation
(hereinafter called the "county"), by and through its Board of
Public Works (hereinafter referred to as the "board"), party of
the first part, and the TOWNSHIP OF WEST BLOOMFIELD, a township
corporation in the County of Oakland (hereinafter called the
"municipality"), party of the second part:
WITNESSETH:
WHEREAS, Act No 185 of the Michigan Public Acts of 1957, —
as amended, grants to the board of public works in any county
having a department of public works, the power to acquire sewage
disposal systems as defined in said Act and to improve, enlarge,
and extend any system acquired pursuant thereto; and
WHEREAS, the Oakland County Board of Supervisors by
Resolution, Misc. No. 4342, adopted on June 22, 1964, did approve
of establishment of the Clinton-Oakland Sewage Disposal System
(herein called the "System") to serve the Clinton-Oakland Sewage
Disposal District, (herein called the "District"), within which
District lies all of the municipality; and
WHEREAS, the County of Oakland, through its Board of
Public Works, has acquired and constructed the said System pursuant
to the Amended Clinton-Oakland Sewage Disposal System Contract,
dated January 11, 1968, between the County of Oakland, the Charter
Township of Waterford, the Township of Avon, the Township of West
Bloomfield, the Township of Independence, the Township of Orion,
and the Township of Pontiac, (said contract hereinafter referred to
as the "Clinton-Oakland Base Contract"); and
WHEREAS, by the terms of said Act No. 185 the county
and the municipality are authorized to enter into a contract for
the acquisition, improvement, enlargement or extension of a sewage
disposal system and for the payment of the cost thereof by the
municipality; and
WHEREAS, the county and the municipality have heretofore
entered into a contract concerning the extension and enlargement of
the System in the District in the municipality which contract is as
follows:
Contract, Clinton-Oakland Sewage Disposal'
System, West Bloomfield Township Extensions,
dated April 1, 1971, as revised,
and the county has issued its bonds to finance the acquisition and
construction of the projects described in said contract which bonds
are described as follows:
$6,450,000 Oakland County Sewage Disposal Bonds - Clinton-
Oakland System - West Bloomfield Extensions,
dated November 1, 1971
; and
WHEREAS, it is now necessary for the public health and
welfare of the present and future residents of the municipality
to extend, improve and enlarge the said Clinton-Oakland sewage
Disposal System in the Township of West Bloomfield by the acquisi-
tion and construction of the so-called West Bloomfield Extensions
No. 2 under the provisions of said Act No. 185 and to issue one or
more series of county bonds to finance said West Bloomfield
Extensions No. 2 in anticipation of the collection by the county of
amounts to become due from the municipality under this contract
,between the county and the municipality; and
WHEREAS, no other municipality in the Clinton-Oakland
Sewage Disposal District will be affected by the construction of
said West Bloomfield Extensions No. 2; and
. WHEREAS, in order to issue such bonds, it is necessary
that the county and the municipality enter into this contract;
and
WHEREAS, the Oakland County Department of Public Works
(hereinafter sometimes referred to as the "DPW") has obtained
preliminary plans and cost estimates for the acquisition and con-
struction of said West Bloomfield Extensions No. 2 prepared by
Hubbell, Roth & Clark, registered professional engineers (herein-
after sometimes referred to as the "consulting engineers") which
preliminary plans and cost estimates anticipate the acquisition
and construction of said West Bloomfield Extensions No 2 will be
accomplished in accordance with the hereinafter stated provisions
of this contract.
NOW, THEREFORE, in .consideration of the premises and
the covenants of each other, the parties hereto agree as follows:
1. The county and the municipality hereby approve the
extension, improvement and enlargement of the Clinton-Oakland
Sewage Disposal System by the acquisition and construction of
sewage disposal facilities to serve the Township of West Bloomfield,
under and pursuant to the provisions of Act No.. 185 of the Michigan
Public Acts of 1957, as amended. The sewage disposal facilities
to be acquired and constructed are hereby designated the "Clinton-
Oakland Sewage Disposal System - West Bloomfield Extensions No. 2"
and are hereinafter sometimes referred to as the "Extensions".
2. The facilities constituting the entire West Bloom-
field Extensions No. 2 project and their general location within
the municipality are shown on Exhibit A, which is attached hereto
and by this reference is made a part hereof, which facilities will
be financed by the municipality and are hereinafter sometimes
referred to collectively as the "project".
.3. The county and the municipality hereby approve and
adopt the estimate of the total cost of the project in the amount
set forth in Exhibit B attached hereto, and the estimate of 40
years and upwards as the period of usefulness of the project, all
as prepared by the consulting engineers.
4. After the execution of this contract by the county
and the municipality, the board shall take the following steps:
(a) Order final plans and specifications for the
project from the consulting engineers.
(b) Submit to the Board of Commissioners of
Oakland County a resolution, duly approved
and recommended by the board, providing for
the issuance of bonds in one or more series
in the aggregate principal amount necessary
to finance the acquisition of the project as
shown on Exhibit B or such different amount
reflecting any revision in the estimate of
the cost of the project as may be agreed
upon by the parties hereto, or reflecting
the amount of other funds available to pay
the cost of the project, maturing serially
as authorized by law, over a period of not
to exceed forty (40) years, which bonds will
be secured primarily by the payments herein-
after provided to be made by the municipality,
to the making of which the full faith and
credit of each is hereby pledged, and
secondarily, if approved by a three-fifths
(3/5ths) majority of the members elect of
the Board of Commissioners, by the full
faith and credit of the County of Oakland.
(c) After the Board of Commissioners of Oakland
County has adopted the bond resolution, the
board will take all necessary procedures to
obtain the approvals necessary to the issuance
of the bonds by the Municipal Finance Com-
mission of the State of Michigan, obtain
construction bids for the project and enter
into construction contracts with the lowest
responsible bidders, and sell and deliver the
bonds in the manner authorized by law.
(d) After the issuance of said bonds and the
execution of construction contracts, the
board shall cause the project to be con-
structed within a reasonable time and do all
other things required of it under the pro-
visions of Act No. 185 of the Public Acts
of Michigan, 1957, as amended.
5. It is understood and agreed by the parties hereto
that the West Bloomfield Extensions No. 2 are to serve the munici-
pality and not the individual property owners and users thereof,
unless by special arrangement between the board and the municipality.
The responsibility of requiring connection to and use of the
facilities of the project and of providing such additional facili-
ties, as may be needed, shall be that of the municipality which
shall cause to be constructed and maintained, directly or through the
county, any such necessary additional facilities. The county shall
not be obligated to acquire or construct any facilities other than
those designated in paragraph 2 hereof. The West Bloomfield.
Extensions No. 2 are an improvement, enlargement and extension of
the Clinton-Oakland Sewage Disposal System and the Base Contract
shall apply thereto except as the same may be specifically modified
herein for specific application to the project, and, in particular
the provisions of paragraphs 9, 10, 11 and 16 through 24 shall
apply hereto as though set forth in full herein.
The county hereby agrees that it will secure, or cause
to be secured, and maintained during the period . of construction
—
adequate property damage and public liability insurance covering
all facilities to be constructed pursuant to this contract. All
policies and memorandums of insurance shall provide that the county
and the municipality shall be insured parties thereunder and shall
contain a provision requiring that the municipality be notified at
least ten days prior to cancellation thereof. One copy of each
policy and memorandum of insurance shall be filed with the munici-
pality.
6. The municipality shall pay to the county the entire
cost of the project. The term "cost" as used herein shall be
construed to include all items of cost of the type set forth on
Exhibit B attached hereto and any other items of cost of a similar
nature as may be set forth in any revision of said Exhibit B
agreed to by the parties hereto, incurred by the county in acquir-
ing and constructing the project. The cost of the project will he
represented by one or more series of bonds to be issued by the
county. as provided in paragraph 4 in the aggregate principal amount
not to exceed the cost of the project, or any portion thereof, as
determined or estimated at the time or times of such issuance.
The municipality covenants and agrees to remit the amount of the
principal and interest payments on said bonds so issued and the
paying agent fees and other charges to service said bonds (herein
called "bond service charges"), as hereinafter provided, which
amount shall be as shown on Exhibit C attached hereto, the -
schedule of annual principal payments to be made by the municipality,
as subsequently modified.
Immediately upon the issuance of said bonds by the county
to finance the cbst of the project or any part thereof, the board
shall notify the municipality, by written communications addressed
to its treasurer, of the schedule of payments of the principal of
and interest on the bonds so issued and of the bond service charges
to be paid by the municipality. The municipality hereby covenants
and agrees, not less than thirty (30) days prior to the due date
of any principal of or interest on such bonds to remit to the county
sufficient funds to pay the same along with any bond service charges
then due. The obligations herein expressed shall be applicable to
all bonds issued by the county to construct and complete the pro-
ject, or any part thereof, whether issued at one time or more than
one time. It is assumed that the aggregate principal amount of
all bonds issued will represent the cost of the project. If funds
are available from the municipality or any other source to pay the
cost of the project or any portion thereof, prior to the issuance
of bonds, then the obligations of the municipality shall be adjusted
and limited accordingly. If the municipality shall fail to make
any of such payments when due, the amount thereof shall be subject
to a penalty of one-half of one percent (1/2 of 1%) for each month
or fraction thereof that the same remains unpaid after the due
date. The municipality may pay in advance of maturity all or any
part of an annual installment due the county, (1) by surrendering
to the county, bonds issued hereunder of a like principal amount
maturing in the same calendar year, with all future due interest
coupons attached thereto, or (2) by payment in cash of the principal
amount of bonds to be called plus all interest to the first day on
which such amount of bonds can be called and the amount of premium
and charges necessary to call such amount of bonds on such date.
7. 'After completion of the project and payment of all
costs thereof, any surplus remaining from the sale of the bonds
therefor shall be used to call such bonds as are callable or
—
purchase bonds on the open market and in such event the contractual
obligation of the municipality in respect to the project shall be
reduced by the principal amount of bonds so called or purchased,
said reduction to be applied as to year, in accordance with the
year of the maturity of the bonds so called or purchased. Any
bonds so called or purchased shall be cancelled. In the alter-
native, said surplus may be used at the request of the municipality
and upon approval by the Oakland County Board of Commissioners,
to improve, enlarge or extend the System in the municipality.
8. If the proceeds of the sale of the original bonds
to be issued by the county to finance the project, or any part
thereof, are for any reason insufficient to complete the project
in accordance with the plans and specifications therefor, the board
shall, if necessary, submit to the Board of Commissioners of Oakland
County a resolution providing for the issuance of additional bonds
in an amount necessary to provide funds to complete the project in
which event the duties and obligations of the board and the munici-
pality as expressed and set forth in this contract shall be
applicable to such additional issue of bonds as well as the
original issue, it being at all times fully recognized and agreed
that the payments to be made by the municipality, in the manner
specified in paragraph 6 of this contract," shall be based upon the
aggregate amount of the b a nds outstanding. In lieu of the issuance
of such additional bonds, any other method may be agreed upon by
the county and the municipality to provide the necessary funds to
complete the project.
9. The municipality, pursuant to the authorization of
paragraph (2), Section 12 of Act 185, Public Acts of Michigan, 1957,
as amended, does hereby pledge its full faith and credit for the
prompt and timely payment of its obligations expressed in this
contract and shall each year, commencing with the year prior to
the year that it will first be required to make payments to the
county in accordance with the provisions of paragraph 6 of this
contract, levy a tax in an amount which, taking into consideration
estimated delinquencies in tax collections, will be sufficient to
pay its obligations under this contract becoming due before the
time of the following year's tax collections; PROVIDED, HOWEVER,
that if at the time of making such annual tax levy there shall be
other funds on hand earmarked and set aside for the payment of such
contractual obligations falling due prior to the next tax collection
period, then the annual tax levy may be reduced by such amount.
Such other funds may be raised in the manner provided in said para-
graph (2), Section 12 of Act 185, Public Acts of Michigan, 1957, or
any amendments thereto. The obligations of the municipality here-
under and its obligations under the Base Contract and under any
other -contract heretofore or hereafter entered into with respect
to extensions to the System in the municipality are equal and
without rank or priority, one to the other.
This contract is contingent upon the county issuing its
negotiable bonds as set forth in subparagraph (b) of paragraph 4
of this contract, to defray the estimated .cost of the project, or
a part of the project, which bonds shall be issued under the autho-
rization provided in paragraph (1), subparagraph (b), Section 11
of said Act 185, Public Acts of Michigan, 1957, as amendE
10. The municipality consents to the establishment and
location of the project entirely within its corporate limits and
consents to the use of its streets, alleys and public places for the
construction thereof by the county and its contractors for which .
purpose this contract constitutes a permit and consents to the use
of its streets, alleys and public places for the repair, replacement,
maintenance and use of the sewage disposal facilities. After com-
pletion, the West Bloomfield Extensions No. 2 shall be used for the
collection of sanitary sewage within the municipality and the trans-
portation of said sanitary sewage to the Clinton-Oakland System for
ultimate disposal all in accordance with and pursuant to the Contract
dated April 1, 1971, as revised, between the County and municipality
pertaining to West Bloomfield Extensions. It is further agreed with
respect to all West Bloomfield Extensions to the Clinton-Oakland Sewage
Disposal System that at all times during the operation thereof by the
municipality, as lessee, that it will obtain and maintain in effect
adequate property damage, public liability and workmen's compensation
insurance covering all facilities leased to the municipality under
any contract with the county now or hereafter in effect. All
policies and memorandums of insurance shall provide that the county
and the municipality 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
and memorandum of insurance shall be filed with the county.
11. The county and the municipality each recognize that
the holders from time to time of the bonds issued by the county
under the provisions of said Act 185, Public Acts of Michigan, 1957,
as amended, and secured by the full faith and credit pledge of the
municipality to the making of its payments 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 bonds shall remain outstanding and unpaid, the pro-
visions of this contract shall not be subject to any alteration or
revision which would in any manner affect either the security of
the bonds or the prompt payment of principal or interest thereon,
The municipality and the county further covenant and agree that
they will each comply with their respective duties and obligations
under the terms of this contract promptly, at the times and in the
manner herein set forth, and will not suffer to be done any act
which would in any way impair the said bonds, the security therefor,
or the prompt payment of principal and interest thereon. It is
hereby declared that the terms of this contract in so far as they
pertain to the security of any such bonds, shall be deemed to be
for the benefit of the holders of said bonds.
12. This contract shall become effective upon approval
by the legislative body of the municipality, by the Board of Public
Works of Oakland County, and by the Board of Commissioners of Oakland
County, and duly executed by the authorized officers of the municipality and
of the Board of Public Works. It shall terminate fifty (50) years from the date
of this contract. This contract may be executed in several counterparts.
The provisions of this contract shall be in full force and effect and
binding upon the successors and assigns of the parties hereto.
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
By its Board of Public Works
By
Chairman
By
Secretary
TOWNSHIP OF WEST BLOOMFIELD
By
Supervisor
By
Township Clerk
BE IT FURTHER RESOLVED, that the officers of the Board
of Public Works are authorized to execute and deliver such number
of original copies of said Contract as they may deem advisable.
PUBLIC WORKS COMMITTEE
By Robert F. Patnales, Chairman
STIIVIATE OF PROJECT COST
CLINTON-OAKIAND SEWAGE DISPOSAL SYSTEM
WEST BLOOMFIELD EXTENSIONS NO, 2
April 1974
Contract No. 1. , . • • • • • 6 a • 0 r e I $ 975,726,00
Contract No. 2. • . • . . • • • . . • • • • 638,519,00
Contract No. 3. • • . • • • • VS 9 0 0 0 0 9 1,403,341,00
Contract No. 4. . . • • ••• •0 •9 F o e 274, 050. 00
Contract No. 5. . . • • — . 536,512,00
Contract No. 6. . . • . • • . •ir ••• a. 623,146.00
Contract N3, 7. . . • . • . • . • • . • • . 680,628.00
Contract No. 8. . . • s • •• • a • •• e a 609,26 5 . 0 0
Contract No. 9. . • • • • :t o 0 6 0 •0 •• 1, 083,908.00
Contract No, 10. • . • • . •• e • 0 6 e •o 1,103,560. 00
Contract No, 11, . „ . • • • 0•• a 0 0 0 846,380,00
Contract No. 12. • . • . • e • 0 9-3 •0 •• 297,100, 00
Contract No. 13, . • • • . • • • • . a • a • 205,000.00
Sub-Total Construction $ 9,277,136.00
— Engineering • • . • • • 6*e V • •m a 698,000.00
Inspection . • . . 324,700.00
Administration • . . • • 6 0 ,••C a f e 231,900,00
Legal . . .0 9 0 0 0 0 0 0 8 0 f ) 31,500.00
Financial • . • • V 0 •9 0 0 V •• p 9,025.00
Soil Borings, . . • 4 p • * • a • • • • 20,000.00
Easement Acquisition . 80 0 9 • 0 .•• . 400,000 • 00
Contingency. . • • a ••••••••• 866,489.00
Sub-Total
Capitalized Interest
TOTAL PROJECT COST
$11,858,750.00
1,391,250.00
$13,250,000.00
I hereby estimate the period of usefulness of this facility to
be forty (40) years and upwards.
HUBBELL, ROTH & CLARK, INC.
• //
By '
M. David Waring:-
No. 9775
EXHIBIT "B"
April 18, 1974
CLINTON-OAKLAND SEWAGE DISPOSAL SYSTEM
WEST BLOOMFIELD EXTENSIONS NO. 2
Tentative Schedule of Principal and Interest Payments
Principal Interest @ 7% Total Principal
Year Due May 1 Due May 1 Due Nov. 1 and Interest
1975 $ 0 $ 463,750 (*) $ 463,750N $ -
1976 0 463,750 (*) 463,750 463,750
1977 175,000 463,750 457,625 1,096,375
1978 175,000 457,625 451,500 1,084,125
1979 200,000 451,500 444,500 1,096,000
1980 200,000 444,500 437,500 1,082,000
1981 200,000 437,500 430,500 1,068,000
1982 225,000 430,500 422,625 1,078,125
1983 275,000 422,625 413,000 1,110,625
1984 , 300,000 413,000 402,500 1,115,500
1985 400,000 402,500 388,500 1,191,000
1986 450,000 388,500 372,750 1,211,250
1987 500,000 - 372,750 355,250 1,228,000
1988 600,000 355,250 334,250 1,289,500
1989 700,000 334,250 309,750 1,344,000
1990 800,000 309,750 281,750 1,391,500
1991 800,000 281,750 253,750 1,335,500
1992 800,000 253,750 225,750 1,279,500
1993 800,000 225,750 197,750 1,223,500
1994 800,000 197,750 169,750 1,167,500
1995 650,000 169,750 147,000 966,750
1996 525,000 147,000 128,625 800,625
1997 275,000 128,625 119,000 522,625
1998 300,000 119,000 108,500 527,500
1999 300,000 108,500 98,000 506,500
2000 625,000 98,000 76,125 799,125
2001 675,000 76,125 52,500 803,625
2002 700,000 52,500 28,000 780,500
2003 800,000 28,000 0 828,000
$13,250,006
(*) Capitalized Interest
$7,570,500 $7,570,500 $28,391,000
EXHIBIT "C"
Mr. Patnales moved the adoption of the foregoing
resolution. The motion was supported by Dearborn .
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN )
) ss:
COUNTY OF OAKLAND )
I, the undersigned, the duly qualified and acting County
Clerk of the County of Oakland, do hereby certify that the fore-
going is a true and complete copy of a resolution adopted at a
regular meeting of the Oakland County Board of Commissioners,
held on the 8th_ day of Au9ust 1974, the original
of which is on file in my office.
IN WITNESS WHEREOF, I have hereunto affixed my official
signature this 8th day of Auqust A.D. 1974.
County Clerk