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HomeMy WebLinkAboutResolutions - 1973.03.14 - 15512At a regular meeting of the Board of Commissioners of Oakland County, Michigan, held in the Board of Commissioners Auditorium Building, Oakland County Service. Center, 1200 North 5 Telegraph Road, Pontiac, Michigan, on the th day of 1973, at 9:30 o'clock A.M., Eastern Standard Time, March PRESENT: Berman, Brotherton, Burley, Button, Coy, Douglas, Dunleavy, Gabler, Hobart, Hoot, Houghten, Kasper, Lennon, Mathews, Montante, Nowak, Olson, Patnales, Perinoff, Pernick, Quinn, Richardson, Vogt, Walker, Wilcox. (25) ABSENT: Dearborn, Moffitt. (2) Miscellaneous Resolution No, Recommended by Board of Public Works Re: TROY WATER SUPPLY SYSTEM mr. Patnales presented the contract mentioned in the following resolution, a copy of which contract has been sent to each member of the Board of Commissioners. Patnales The following resolution was offered by Mr. 6249 WHEREAS, the Oakland County Board of Public Works has approved and submitted to this Board of Commissioners for its approval, a proposed contract between the County of Oakland and the City of Troy relative to the acquisition and financing of said Troy Water Supply System; and WHEREAS, the City Commission of said City has approved the said Contract and has authorized and directed that it be executed for and on behalf of the City by the Mayor and the City Clerk; THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF OAKLAND COUNTY, MICHIGAN, as follows: 1. That said Contract between the County of Oakland and the City of Troy be and the same hereby is approved, and that the Chairman and the Secretary of the said Board of Public Works be and they are hereby authorized and directed to execute and deliver said Contract for and on behalf of the County of Oakland, in as many original copies as they may deem advisable, the said Contract being as follows: TROY WATER SUPPLY SYSTEM CONTRACT THIS CONTRACT, made and entered into this 1st day of February, 1973, by and between the COUNTY OF OAKLAND, a Michigan county corporation (hereinafter referred to as the "County"), acting by and through its Department of Public Works, party of the first part, and the CITY OF TROY, being a home rule city corporation located in the County of Oakland, Michigan (hereinafter referred to as the "Municipality"), party of the second part; WITNESSETH: WHEREAS, it is immediately necessary and desirable for the public health and welfare of the present and future residents of the above Municipality that water supply facilities be acquired and constructed to serve the entire area thereof; and WHEREAS, the County, under the provisions of Act 185, Public Acts of Michigan, 1957, as amended, has established a Department of Public Works for the administration of the powers conferred upon the County by said Act, which Department is under the immediate control of a Board of Public Works (hereinafter sometimes referred to as the "Board"), and under the general control of the Board of Commissioners of the County of Oakland; and WHEREAS, the County of Oakland, by Board of Commissioners Resolution Misc. No 6007, adopted May 4, 1972, established the Troy Water Supply System (herein called the "System"), which system is to consist of facilities for the supply, transportation and distribution of water to areas designated in said resolution as Troy Water Supply District and shown on Exhibit "A" attached to said resolution; and WHEREAS, said act authorizes the County to acquire water supply systems as defined in said act and to improve, enlarge, extend and operate such systems; and WHEREAS, by the terms of said act the County and the Municipality are authorized to enter into a contract for the acquisition, improvement, enlargement or extension of a water supply system in one or more sections or stages and for the payment of the cost thereof by the Municipality, with interest, over a period of not exceeding forty (40) years, and the county is then authorized, pursuant to appropriate ,action of its Board of Commis- sioners, to issue its bonds in one or more series to provide the funds therefor, secured by the full faith and credit contractual obligations of the Municipality and if the bond resolution so provides, by the full faith and credit of the County; and • WHEREAS, said act provides, in the opinion of the Muni- cipality and the County, the fairest and most equitable means of acquiring, the water supply facilities so vitally necessary for the public health and welfare of the residents of the County within the district to be served, at the most reasonable cost; and WHEREAS, the County, through the Board, has caused plans and an estimate of cost of the System to consist of water supply. facilities necessary to adequately serve the District in the Municipality,, to be prepared by Hubbell, Roth & Clark, Inc., consulting engineers of Pontiac, Michigan (hereinafter sometimes referred to as the "Consulting Engineers"), which said estimate of cost is in the amount shown on Exhibit "13" which is attached hereto and by this reference made a part hereof; and -2- WHEREAS, in order to issue such bonds, it is necessary that the County and said Municipality enter into this Contract; and WHEREAS, it is also necessary for the County and said Municipality to contract relative to the operation and maintenance of said water supply system and the location thereof entirely with- in the limits of said city. 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 approve the establish- ment of the System in the City of Troy and County of Oakland, under the provisions of Act 185, Public Acts of Michigan, 1957, as amended, which is to acquire and construct a water supply system in the area served thereby, which area consists of the areas in the City of Troy shown on Exhibit' to the resolution of the Board of Commissioners adopted May 4, 1972, and therein designated as the TROY WATER SUPPLY DISTRICT (herein sometimes referred to as the "District"). 2. The water supply system referred to in paragraph 1 above has been designated by the County Board of Commissioners as the TROY WATER SUPPLY SYSTEM and shall consist of facilities for the supply, transportation and distribution of water to areas in the District. The facilities to be acquired and constructed are described on Exhibit "A" which is attached hereto and by this reference is made a part hereof. 3. The County and the Municipality hereby approve the estimate of cost of said water supply facilities, which estimate shall consist of the items set forth in Exhibit "B", and the -3- estimate of 40 years and upwards as the period of usefulness thereof, all as prepared by the Consulting Engineers. Said water supply facilities are hereinafter sometimes referred to as the "project". 4. After the execution of this Contract by the County and the Municipality, the Board shall take the following steps: (a) Order final construction 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 of the presently estimated cost of the pro- ject, as shown on Exhibit "B" or such different amount reflecting any revision in the estimate of cost, 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 approxi- mately thirty (30) years, which bonds will be secured primarily by the payments herein- after provided to be made by the Municipality, to the making of which its full faith and credit is hereby pledged, and secondarily, if approved by a three-fifth, (3/5ths) majority of the members elect of the Board of Commissioners, by the full faith and credit of the County of Oakland. -4- (c) After the Board of Commissioners of Oakland County has adopted the bond resolution, the Board will carry out all necessary procedures to obtain the approvals necessary to the issuance of the bonds by the Municipal Finance Commission of the State of Michigan, obtain construction bids for the project and enter into construction con- tracts 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 provisions of Act 185 of the Public Acts of Michigan, 1957, as amended. (e) The county shall secure, or cause to be secured, and maintained during the period of construction adequate property damage and public liability insurance covering all facili- ties to be constructed pursuant to this contract. All policies of insurance shall provide that the county and the municipality shall be insured parties thereunder and shall contain a provision requiring that the muni- cipality be notified at least ten days prior to cancellation thereof. One copy of each -5- policy of insurance shall be filed with the municipality. 5. It is understood and agreed by the parties hereto that the System is to serve the Municipality and not the indivi- dual property owners and users thereof, unless by special arrange- ment between the Board and the Municipality. The responsiblity of requiring connection to and use of the water supply facilities of the System and of providing such additional facilities, as needed, shall be that of the Municipality which shall cause to be constructed and maintained directly or through the County, the necessary facilities for connection and metering and any additional facilities for supply and delivery of water in the city. The , County shall not be obligated by this agreement to construct any facilities other than those designated in paragraph 2 hereof. 6. The Municipality shall pay to the County the entire or any part of the cost of the facilities of the System financed by the issuance by the County of its bonds as herein provided. The term "cost" as used herein shall be construed to include all items of cost of the type set forth in Exhibit "13" attached hereto and any other items of cost of a similar nature as may be set forth in any revision of Exhibit "B" agreed to by the parties hereto. No change in the jurisdiction over any territory in the Municipality shall in any manner impair the obligations of this contract based upon the full faith and credit of the Municipality. In event all or any part of the territory of the Municipality which is in the area served by the System is incorporated as a new city or is annexed to or consolidated with or becomes a part of the territory of another municipality, the municipality into which such -6- territory is incorporated or to which such territory is annexed, shall assume the proper proportionate share of the contractual obligation and right to capacity in the System of the Municipality, from which such territory is taken, based upon a division in the same ratio as the population equivalent for water supply capacity of the property in the territory so annexed or incorporated bears to the population equivalent of the property for water supply capacity in the remaining portion of the Municipality from which said territory is taken. 7. Attached hereto as Exhibit "C", and by this reference made a part hereof, is a schedule of the annual principal payments to be made to the County by the Municipality computed on the estimated cost of the project. In addition, the Municipality shall pay interest on the unpaid principal, from time to time at the rate of interest born by the bonds of the County, plus other charges as herein provided. Immediately upon the issuance of any bonds by the County to finance the cost of the project, the Board shall notify the Municipality, by written communication addressed to its treasurer, of the schedule of actual payments of the principal of and interest on the bonds and the paying agent fees and bond handling charges (exclusive of capitalized interest) thereon, and the total amount of each annual payment to be made by said Municipality. Said municipality hereby covenants and agrees, not less than thirty (30) days prior to the due date of any principal of or interest and fees and charges (exclusive of capitalized interest) on any such bonds, to remit to the Board sufficient funds to meet said payments in full. The obligation herein expressed shall be applicable to all bonds Issued by the County to construct and complete the project, as herein defined, whether issued at one time or at more than one time -7- It is assumed that the principal of the bonds represents the cost of the project. If funds are available from the Municipality or any other source to pay the project cost, or any portion thereof, prior to the issuance of bonds, then its obligation 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 in addition to interest of one-half of one per cent (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, by surrendering to the County bonds issued in anticipation of payments to be made under this Contract, of a like principal amount maturing in the same calendar year with all future due interest coupons attached thereto. The Municipality may also prepay its obligation to the County for any year with respect to which bonds of the County are callable, at a time when such bonds are callable, by paying the principal, interest and call premium required to call the bonds on the next available call date, 8. In the event that the municipality shall fail for any reason to pay to the Board at the times specified, the amounts herein required to be paid, the Board shall immediately notify, in writing, both the Board of Commissioners of the County of Oakland and the governing body of the Municipality of such default and the amount thereof, and if such default is not corrected within ten (10) days after such notification, the County Treasurer or other county official charged with disbursement to such Munici- pality of funds derived from the state and returnable to such Municipality pursuant to law, is by these presents specifically authorized by the Municipality to withhold sufficient moneys, -8- derived from such funds returnable to the Municipality and not specifically otherwise earmarked, as may be needed to correct such default, and to pay said sums so withheld to the Board to apply on the obligation of the defaulting -Municipality as herein set forth. Any such moneys so withheld and paid shall be considered to have been returned to the Municipality within the meaning of any state law, the purpose of this provision being solely to authorize voluntarily the use of such funds to meet past due obligations of the Municipality to which said moneys are owed. In addition to the foregoing, the Board shall have all other rights and remedies provided by law to enforce the obligation of the Municipality to make payments in the manner and at the times required by this Contract. It is specifically recognized by the Municipality that the payments required to be made by it pursuant to the terms of this Contract are to be pledged for the payment of the principal of and interest on bonds to be issued by the County, and the Municipality covenants and agrees that it will make its required payments to the Board promptly and at the times herein specified, without regard as to whether the project herein contemplated is actually completed or placed in operation; provided, only that nothing herein contained shall limit the obligation of the County to perform in accordance with the promises and covenants contained herein. 9. 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 to 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 -9- year of the maturity of the bonds so called or purchased. Any bonds so called or purchased shall be cancelled. In the alternative, said surplus may be used at the request of the Municipality and upon approval by the Board of Commissioner, to improve, enlarge, or extend the System in the Municipality. 10. If the proceeds of the sale of the original bonds to be issued by the County for the project are for any reason insufficient to complete the project iniaccordance with the plans and specifications therefor, the Board shall, if necessary, submit to the Board of Commissioners of Oakland County a resolution provid- ing 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 Municipality 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 7 of this Contract, shall be based upon the aggregate amount of the bonds 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. 11. 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 first year in which any of such obligations are due, 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 -1 0- 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 paragraph (2), Section 12 of Act 185, Public Acts of Michigan, 1957, or any amendments thereto, or may be capitalized or otherwise raised. 12. This Contract is contingent upon the County issuing its negotiable bonds as set forth in subdivision (b) of paragraph 4 of this Contract, to defray the estimated cost of the project, which bonds shall be issued under the authorization provided in paragraph (1), subparagraph (b), Section 11 of said Act 185, Public Acts of Michigan, 1957, as amended. 13. The Municipality consents to the establishment and location of said System entirely within its corporate limits. Upon completion of said System the County hereby leases the said System to the Municipality during the term of this Contract, upon the following terms and conditions: (a) The System shall be used and operated by the Municipality in compliance with the contractual and legal obligations applicable to the Municipality. The Municipality shall employ qualified and competent personnel to operate the System hereby leased. (b) The Municipality, at its own expense, shall maintain said System in good condition and -11- • repair, to the satisfaction of the Board of Public Works. The Board. of Public Works shall have the right to inspect the said System at any time and if said System or any part thereof is not in a state of good condition and repair, then the Board of Public Works shall notify the Munici- pality in writing as to any deficiency. If the Municipality shall fail to restore the facilities to a good condition and repair within a reasonable time thereafter then the Board of Public Works shall have the right to perform the necessary work and furnish the necessary materials, and reimbursement for any expense incurred by the County shall be made by the Municipality to the County within thirty (30) days after the expense has been incurred. (c) The Municipality shall adopt and continue in existence and shall enforce an ordinance or ordinances concerning: the connection of premises in the Municipality to the System and concerning the use of and the payment of charges for the use of the System. (d) The Municipality shall make and collect from the individual users of the System such charges for water supply service as shall be sufficient to pay the cost of the operation and maintenance of the -12- System, to establish suitable reserves for operating and maintaining the System, Such charges may also include an amount determined by the Municipality to be used to meet the obligations of the Municipality to the County under this Contract. The Municipality shall enforce prompt payment of all such charges as the same shall become due. (e) The Municipality shall secure and maintain adequate property damage and public liability insurance covering the System hereby leased to it by the County. All policies of insurance shall provide that the Municipality and the County shall be insured parties thereunder and shall contain a provision requiring that the Director of the Oakland County Department of Public Works be notified at least ten days prior to cancellation thereof. One copy of each policy of insurance'shall be filed with the Oakland County Department of Public Works. The Municipality agrees to lease the System 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, 1974, and in addition to perform its covenants and agreements set forth in this Contract as a rental for said System. 14. The County and the Municipality each recognize that the holders from time to time of the bonds issued by the County under -13- 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 provisions 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 Munici- pality 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 pay- ment of principal and interest thereon.. It is hereby declared that the terms of this Contract insofar as they pertain to the security of any such bonds, shall be deemed to be for the benefit of the holders of said bonds. 15. 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, or on such earlier date when the Municipality is not in default hereunder and the principal, interest and bond handling charges on the bonds issued as hereinabove described, are fully paid and discharged. This Contract may be executed in several counterparts, -14- 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 CITY OF TROY By Mayor By City Clerk PROPOSED PROJECT UTAH Sc.n r. 9-000 TROY WATER SUPPLY Prepared By: H L LL OTH ri /7 '1". h'` t - SYSTEM HUBBELL, ROTH AND CLARK, INC, By M, David Wa .p! TROY WATER SUPPLY SYSTEM ESTIMATE OF COST 36" Water Main 30" Water Main 24" Water Main 20" Water Main 16" Water Main 12" Water Main Meter & '.Pressure Reducing Valve and Chambers Pressure Reducing Valves and Chambers Connection to Existing System Engineering . Pr Administration . Inspection Legal,, Financial . V e • Soil Borings „ — Easement Acquisition Contingencies . 5,300 L.E. @$ 46,00 = $ 243,800.00 4,500 L.F. @ 42.00 = 189,00040 33,900 L.F. @ 32.00 = 1,084,800,00 3,000 L.F. @ 28.00 = 84,000,00 153,800 L.P. @ 23.00 - 3,537,400.00 90,200 L.E. @ 18.00 = 1,623,600.00 3 Ea. @ 85,000.00 - 255,000.00 @ 20,000.00 = 100,000.00 @270,000.00 = 270000.00 Sub-Total . „ .= $7,387,600.00 ,= $ 510,000,00 185,000.00 •10 = 260,000.00 24,500.00 • • C C P 8,400,00 ••n• 8,625.00 VO W e :-L' 450,000.00 = 623,375.00 5 Ea, Lump Sum • E s • r e . • s ¢ • s • 0 a CC V C Sub-Total . .= $9,457,500.00 Capitalized Interest, 6% for 6 months on; $9,750,000.00 Bond Issue . ,= 292,500.00 Total Project Cost „ = $9,750,000.00 I hereby estimate the period of Usefulness of this facility to be Forty (40) years and upwards. EXHIBIT "B" 2/15/73 EXHIBIT -2/15/73 TROY WATER SUPPLY SYSTEM Schedule of Annual Principal Payments Principal Payments Year •November 1 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 ' 1990 1991 1992 J993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Total $ 125,000 125,000 150,000 150,000 /50,000 175,000 175,000 175,000 200,000 200,000 225,000 225,000 250,000 275,000 275,000 300,000 325,000 350,000 350,000 375,000 400,000 425,000 450,000 475,000 500,000 550,000 575,000 600,000 600,000 600,000 $9,750,000 Quinn It was moved by Mr, Patnales , seconded by Mr. , that the foregoing resolution be adopted. A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN ) ss: COUNTY OF OAKLAND ) I, the undersigned, the County Clerk of the County of Oakland, do hereby certify that the foregoing is a true and complete copy of the proceedings pertaining to the Troy Water Supply System, duly adopted and taken by the Board of Commissioners of said County at a regular meeting held M arch 15 , 1973, the originals of which are on file in my office County Clerk, Oakland County Dated: March 15 , 1973.