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HomeMy WebLinkAboutResolutions - 1973.09.20 - 15622Al: a regular _ meeting of the Board of Commissioners of Oakland County, Micnigan, held in the Board of Commissioners Auditorium Building, Oakland County Service Center, 1200 North Telegraph Road, Pontiac, Michigan, on the 20th day of September 1973, at 9:30' o clock A.M., Eastern Standard,Time, PRESENT: Berman, Brotherton, Burley, Button, Coy, Dearborn, Douglas, Dunleavy, Gabler, Hobart, Hoot, Houghten, Kasper, Lennon, Mathews, Moffitt, Montante, Nowak, Olson, Patnales, Perinoff, Perniek, Quinn, Vogt, Walker, Wilcox. (26) AFISIW.? Richardson. (1) Miscellaneous Resolution No. 6430 Recommended by Board of Public Works Re: PONTIAC TOWNSHIP WATER SUPPLY SYSTEM EXTENSION NO 2 Mr. Walker presented the contract mentioned in the following resolution, a. copy of which contract has been sent to each member of the Board of Co aiid Wa I ker The following resolution was offered by Mr.' 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 Township of Pontiac relative to the acquisition and .financing of Extension No. 2 to said Pontiac Township Water Supply System; and WHEREAS, the Township Board of said Township has approved the said Contract and has authorized and directed that it be executed for and on behalf of the Township by the Supervisor and the Township 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 Township of Pontiac 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: AGREEMENT PONTIAC TOWNSHIP WATER SUPPLY SYSTEM, EXTENSION NO 2 THIS AGREEMENT, made and entered into as of the first day of February, 1973, by and between the COUNTY OF OAKLAND, a Michigan county corporation (hereinafter referred to as the "County"), party of the first part, and the TOWNSHIP OF PONTIAC, a Michigan township corporation located in said county (hereinafter referred to as the "Township"), party of the second part; WITNESSETH: WHEREAS, pursuant to the provisions of Act No. 185 of the Michigan Public Acts of 1957, as amended, (hereinafter sometimes referred to as "Act 185") the County has established a Department of Public Works for the administration of the powers conferred upon the County by said Act, which Department is administered by a Board of Public Works (hereinafter sometimes referred to as the "Board") under the general control of the Board of Commissioners of the County; and WHEREAS, by the terms of Act 185 the County is authorized to acquire a water supply system within the Township and to improve, enlarge, extend, operate and maintain the same, and the County and the Township are authorized to enter into a contract or contracts for the acquisition, improvement, enlargement or extension of such water supply system and for the payment of the cost thereof by the Township, with interest, over a period of not exceeding forty (40) years, and the County is then authorized, pursuant to appropriate action of its Board of Commissioners, to issue its bonds to provide the funds therefor, secured primarily by the full faith and credit contractual obligation of the Township to pay the cost thereof and secondarily, if three-fifths (3/5ths) of the members elect of the Board of Commissioners so vote, by the full faith and credit pledge of the County; and WHEREAS, the County by Board of Supervisors (now Board of Commissioners) Resolution Misc. No. 4291, adopted March 6, 1964, approved the establishment of the "Pontiac Township Water Supply System" (hereinafter sometimes referred to as the "system") in said Township, and authorized and directed the Board to secure plans and specifications for water supply facilities therein, to negotiate a contract or contracts with the Township for constructing, operating and financing a county water supply system in one or more sections, and to submit such plans, specifications and contract or contracts to the Board of Commissioners for its approval; and WHEREAS, pursuant to Contract dated February 15, 1965, Extension No. 1, has been acquired and financed by the County as a section of the system established by the County, by the issuance of county bonds in anticipation of contract payments to be made by the Township, and said Township has now requested the County to acquire and finance, as an extension to and another section of the County's system, certain additional water supply facilities needed to distribute City of Detroit water in the certain areas of the Township; and WHEREAS, the County, through the Board, has caused plans and an estimate of the cost of acquiring the proposed extensions to the system to be prepared by Papke, Hiltz and McCliment, Inc, consulting engineers of Livonia, Michigan (hereinafter sometimes -2- referred to as the "Consulting Engineers"), which estimate of cost is attached hereto as an exhibit hereinafter described and which cost of so acquiring the extensions to the County's system shall be defrayed by the issuance of bonds by the County pursuant to Act 185, secured by the obligation of the Township pursuant to this Agreement to pay to the County the cost of acquiring the said extensions to the system (such bonds being hereinafter sometimes referred to as the "County bonds"); and WHEREAS, in order to effectuate such acquisition and financing of the proposed section of and extensions to the system, it is necessary for the County and the Township to enter into this Agreement; NOW, THEREFORE, in consideration of the premises and the covenants of each other, the parties hereto agree as follows: 1. The County and the Township ratify and confirm the establishment of the Pontiac Township Water Supply System by the County, under the provisions of Act No 185, Michigan Public Acts of 1957, as amended, to provide a water supply system in one or more sections to serve the Township and its residents, as a whole and the Township consents and agrees to the establishment and to the improve- ment, enlargement and extension herein provided of said system within its corporate boundaries and consents to the use by the County of the public streets, highways, alleys, lands and rights-of-way of the Township for the purpose of the system and any improvements, enlarge- ments and extensions thereof. The extensions herein provided are hereby designated Extension No 2 of said system. 2. The extensions to the County's system now to be acquired by the County shall consist of the water supply, connection, trans- -3- of said resolution by the Oakland County Board of Commissioners and the approval of the Municipal Finance Commission of the State of Michigan for the issuance and sale of the bonds; (d)obtain construc- tion bids for the facilities to be acquired and enter into construction contracts therefor with the lowest responsible bidders; (e) advertise, sell and deliver the said bonds and apply the proceeds as herein provided; (f) construct the said facilities within a reasonable time after execution of construction contracts and delivery of the County bonds; and (g) do all other things required of said Board under the provisions of Act 185, 4. The Township shall pay to the County the cost of acquiring the system. The term "cost" as used herein shall be construed to include all items of cost of the type set forth on Exhibit "B" 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 acquiring and constructing the project. The cost of the project will be represented by one or more series of bonds to be issued by the County as provided in paragraph 3 in the aggregate principal amount not to exceed the said cost, or any portion thereof, as determined or estimated at the time or times of such issuance. The Township covenants and agrees to remit its 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. The annual principal maturities of the bonds to be issued are set forth on Exhibit "C" which is attached hereto and by this reference is made a part hereof. -5- Immediately upon the issuance of said bonds by the County to finance the cost of the project, or any part thereof, the Board shall notify the Township, by written communication 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 it, The Township 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 project, 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 Township or any other source to pay the said cost, or any portion thereof, prior to the issuance of bonds, then the obligation of the Township shall be adjusted and limited accordingly. If the Township 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. 5. The Township may pay in advance of maturity all or any part of an annual installment due the County, (I) 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 -6- G . In the event that the actual cost.oi the project shall be less than the estimated cost, then the surplus in the construc- tion account for the project derived from the sale of the County• bonds shall be used to redeem County bonds prior to maturity or to • purchase County bonds on the open market, and in such event the bonds so retired shall be cancelled and the obligations of the Township shall be reduced by the principal amount of the bonds so retired, which reduction shall be applied upon the Township's installment payment for the year of maturity of the bonds so . retired. As an alternative, any surplus in the construction account derived from any source may be used at the request of the Township and with the consent of the Board and of the County, all expressed by resolution, to improve, enlarge or extend the system or any section . thereof. 7. 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 same 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 Township as expressed and set forth in this agreement 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 tha payments to be made by the Township, in the manner specified in paragraph 5 of this agr,eem,,T,:nt, shall be based upon the aggregate amount of the bonds outstanding. In lieu of the issuance of such additional bonds, any other method may he agreed upon by the County and the Township to provide the necessary funds to complete the project. 8. This agreement is contingent upon the County issuing its negotiable bonds as set forth in paragraph 3 hereof, to defray the estimated cast of the project, which bands 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. 9. Should the Township fail for any reason to pay the County 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 Township . Board 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 County Treasurer or other county official charged with disbursement to the Township of funds . derived from the state under the applicable provisions of the statutes of the state and returnable Co the Township pursuant to such ,provisions, or any other funds payable to the Township, is hereby authorized by the Township to withhold sufficientfunds (but in no event in an amount in excess of 25% of the amount of default) derived from such funds returnable to the Township as may be lawful and 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 Township as herein set forth. Any such moneys so withheld and paid shall be considered to have been returned to the Township within the meaning of the above-mentioned statutory provisions or other applicable law, the purpose of this provision being solely to authorize voluntarily the set-off and use of such funds to meet past due obligations of the Township 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 obliga- tions of the Township to make payments in the manner and at the times required by this contract, including the right to requeSt the .State Treasurer to withhold and pay to the County state collected sales tax proceeds payable to the Township if authorized by law to do so and including the right to 'set forth on the next annual tax roll approved by the Board of Commissioners a tax levy on all taxable property in the Township in an amount sufficient to correct said default. 10. It is understood that it is intended that the obliga- tions of the Township hereunder will be met from the revenues of Extension No. 2 provided for herein as hereinafter described. The Township, pursuant to the authorization of paragraph (2), Section 12, Act No, 185, Michigan Public Acts of 1957, as amended, does in addition hereby pledge its full faith and credit for the prompt and timely payment of its obligations expressed in this agreement and shall each year, commencing with the year prior to the first year obligations shall become due hereunder, levy a tax on all taxable property in the Township in an amount which, taking into consideration estimated delinquencies in tax collections will be sufficient to pay •, its obligations under this agreement 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. The Township . . hereby covenants and agrees that, to the fullest possible extent, it will raise such other funds in the manner provided in paragraph (2), Section 12, Act No. 185, or any amendments thereto, primarily by the exaction of direct connection charges, capital charges, debt service charges and other charges from the users of the system in the areas serviced by Exte:osion No, 2 in the Township in amounts sufficient to operate, maintain, and repair the system and to pay such contractual obligations, The Township further covenants and agrees that all funds of the system received in the form of such charges shall be and are hereby entirely pledged for the payment of said obligations. 11. The Township does hereby agree to operate and maintain the said Extension No. 2 as part of the system to serve the individual users of the system in the Township. Such operation, maintenance, repair and management of the system shall be under the immediate supervision and control of the Township Board. The facilities in the area served by this Extension No. 2 shall be operated separately from the facilities in the areas served, also separately, by Extension No 1 and all direct connection charges, capital charges, debt service charges and other Charges and proceeds of tax levies shall be received, deposited and accounted for . . separately by the Township Board. The Township will provide insurance of such types and such amounts on the system as would ordinarily be carried by private companies engaged in similar enterprise, which insurance shall include sufficient liability insurance protecting the County and the Township against loss on account. of damage or injury to persons or property imposed by reason of the ownership or operation of any sections of the system or resulting from any act of omission or commission on the part of the County or the Township, or any agents-, officers, or employees of either, in connection with the operation, maintenance or repair of any sections of the system, 12. It is understood and agreed that the supply of water for all sections of the system is to be procured and purchased by the County from the City of Detroit pursuant to a contract therefor executed by said city and the County, and the Township shall comply with all requirements and regulations thereunder. -10- 13. In order to raise the necessary funds with which to meet its obligations hereunder, and in performance of its agreement to raise moneys other than by taxation for the making of the payments herein required to be made to the County, the Township shall by appropriate ordinance establish and maintain in effect in the - Township, and the Township shall bill and collect, such connection, capital, meter, water consumption, debt service and other charges as shall be necessary in order to provide revenues sufficient for the operation, maintenance and repair of this Extension No 2 of the system (including as an operating expense the cost of water supplied by the City of Detroit and the costs of the Township for its operating and maintaining and for billing and collecting) and for the discharge of the obligations of the Township to the County as herein provided. Al]. such revenues as collected shall be set aside and paid into a fund to be established and maintained by the Township and to be known as the "Extension No. 2 Revenue Fund" which shall be set up and maintained separate and apart from the accounts for previously acquired sections of the system. The expense of operation, maintenance and repair of Extension No 2 of the system including the cost of water furnished by the City of Detroit, shall be paid by the Township from said Fund. The balance thereof shall be applied upon the obligation of the Township hereunder to pay the cost of this Extension No 2 of the system. The Township Board, shall., not later than November 1, preceding the beginning of each fiscal year, adopt a budget covering the foregoing expenses for such year and shall establish rates for water services of Extension No 2 of the system for such year on the basis thereof and of the estimated water use in such year and similar action shall be taken at such time for the other sections of the system. The system shall be operated upon the basis of a fiscal, year which begIns on January 1, and ends on December 31, of -11- each year Any and all revenues remaining in said Extension No. 2 Revenue Fund at the close of any calendar year from time to time may be used to pre-pay the contractual obligations of the Township to the County as provided herein or may, with the prior approval of the . Board, be used for the-replacexent, improvement, .enlargement or extension of Extension No 2 of the System. • 14. No change in the jurisdiction over any territory in the TownshAp shall in any manner impair the obligations of this agreement. In the event all or any part of the territory of the Township served by Extension No. 2 is incorporated as a new city or is annexed to or becomes a part of the territory of another municipality, the municipality into which such territory is incor- porated or to which such territory is annexed, shall assume the proper proportionate share of the contractual obligation of the Township to the County, and of the contractual right of the Township to water supply service hereunder, such proportionate share to be determined by the Board of Public Works. The determination by the Board shall be based primarily upon the proportion of the total design capacity of the entire Extension No 2 located within the area incorporated or annexed: PROVIDED, HOWEVER, that in making such determination the Board shall take into consideration all factors necessary to make the 'division equitable. In addition, the Board shall in the case of partial incorporation or annexation, prior to such determination, receive a written recommendation. as to the proper division from a committee composed of one representative designated by the 'governing body of the municipality from which the territory is taken, one designated by the governing body of the new munici- pality or the municipality annexing such territory, and one independent registered engineer appointed by the Dcard. Each municipality shall appoint its representative within fifteen (15) days after being -12- notified to do- so by the Board and within a like time the Board shall appoint the engineer third member. If any municipality shall fail to appoint its representative within the time above provided, then the Board may proceed without said recommendation. If the committee shall not make its recommendation within forty-five (45) days after its appointment or with any extension thereof by the Board, then the Board may proceed without such recommendation. In the consideration of the matters herein provided, including the designa- tion of the third member of the committee, any member of the Board who is also an official of either affected municipality shall be disqualified to act or vote. If territory in the Township not served by this Extension No. 2 is incorporated as a city or annexed to another municipality, such territory shall remain subject to the levy of a tax to support the full faith and credit pledge of the Township to pay its obligations to the County at the same time and to the same extent as all other territory now or then in the Township. .15. The County and the Township each recognize that the holders from time to time of the bonds to be issued by the County under the provisions of said Act No 185, Michigan Public Acts of 1957, as amended, and secured by the full faith and credit pledge of the Township to the making of its payments as set forth in this agreement, will have contractual rights in the agreement, and it is therefore covenanted and agreed by the parties hereto that so long as any of said bonds shall remain outstanding and unpaid, the pro- visions of this agreement 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 Township and the County further covenant and agree that they will each comply promptly with their respective duties and obligations -137 under the terms of this agreement 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 agreement insofar as they pertain to the security of any such bonds shall be deemed to be for the benefit the holders of the said bonds. 3.6. This agreement shall become effective upon approval by the Township Board of the Township, by the Board of Public Works of Oakland County, and by the Board of Commissioners of Oakland County, and when duly executed by the authorized officers of the Township and of the Board of Public Works. This agreement shall terminate forty (40) years from the date of this agreement or on such earlier date as shall be mutually agreed: PROVIDED, HOWEVER, that it shall not be terminated by mutual agreement or at any time when the Township is in default hereunder or at any time prior to the payment in full of the principal of and interest on the County bonds together with all paying agent fees and other charges pertaining to said bonds. This agreement may be executed in several counterparts. The provisions of this agreement .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 agreement 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. -14- TOWNSHIP OF PONTIAC Oakland County, Michigan By Supervisor By Township Clerk 1 0 7 0 11 V • t" '001- Co HE3RT-1. f/t,s,-Erv, astIVA,E:‘, s r —"="•1,. I.— I "“M A wALTOrt I .\ • 1 ft I FEATHERS-70NT ROAD r-- 0 ck• ao L X 8 • 0 ZPI-1 o : ZPI-1 A MICti SOUTH SOULE VAA ROAD ‘14 LEGEND EXISTING WATER MAIN laffelligillIMM PROPOSED WATER MAIN EXISTING 54" W.M. BY DMWS "Ex 42'` W.M. BY D RAINS. 0 EXISTING BOOSTER STATION PFtEPAREE) le,y; EXHIBIT HIV PONTIAC TOWNSHIP WATER SUPPLY SYSTEM EXTENSION NO.2 ORCHARD, PAPKE, HILTZ & McCLIMENT, INC. CONSULTING ENGINEERS $ 24.00 = 18.00 = 12,00 = 11.00 = 2,000,00 = 1,200.00 = 900.00 = 700.00 = 1,800.00 = 1,200.00 = 1,000.00 = 700.00 = 490.00 = $151,200.00 238,500.00 106,680.00 13,530.00 10,000.00 18,000.00 12,600.00 700,00 1,800.00 1,200.00 1,000,00 40,600,00 490.00 $596,300,00 = 60,000.00 = 15,000.00 = 21,000.00 5,750.00 4,400.00 1,000.00 = 30,000.00 .., 57,050.00 = $790,500.00 • EXHIBIT "B" 8/13/73 PONTIAC TOWNSHIP WATER SUPPLY SYSTEM EXTENSION NO. 2 ESTIMATE OF COST 16" Water Main 12" Water Main 8" Water Main 6" Water Main 16" Gate Valve & Well 12" Gate Valve & Well • 8" Gate Valve & Well 6" Gate Valve & Well 12" x 12" T.S. Valve & Well 12" x 8" T.S. Valve & Well 8" x 6" T. S. Valve & Well Standard Hydrant, complete Blow-off • • Engineering Administration Inspection Legal Financial Soil Borings Easement Acquisition Contingencies 6,300 L.F. 13,250 L.E. 8,890 L.F. 1,230 L.F. 5 Ea. 15 Ea. 14 Ea. 1 Ea. 1 Ea. 1 Ea, 1 Ea. 58 Ea. 1 Ea, Sub-Total Sub-Total Capitalized Interest on $850,000.00 Bond Issue Total Project Cost = $ 59,500.00 = $850,000.00 I hereby estimate the period of usefulness of this facility to be Forty (40) years and upwards. ORCHARD, PAPKE, FULTZ & MCCLIMENT, INC. By Telvin E. Orchard 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1934 1985 1986 1987 1988 1-989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Total. PONTIAC TOWNSHIP WATER SUPPLY SYSTEM EXTENSION NO. 2 Schedule of Annual Principal Payments Principal Payments YEAR Mc 1 $ 15,000 15,000 15,000 15,000 15,090 15,000 15,000 15,000 15,000 15,000 20,000 20,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 $850,000 EXHIBIT "C" 8/19/73 PUBLIC WORKS COMMITTEE Lee Walker, Vice Chairman Olson , that the foregoing resolution be adopted. J,415Vil roll call the-votes-as----follows-: It was moved by Mr. Walker seconded by Mr. yEAs: Vogt, Walker, Berman, Burley, Button, Coy, Dearborn, Douglas, Dunleavy, Gabler, Hobart, Hoot, Houghten, Kasper, Lennon, Mathews, Moffitt, Montante, Nowak, Olson, Perinoff, Pernick, Quinn. (2-Z7(....=?:,: NAYS: None. (0) STATE OF MICHIGAN ) COUNTY OF OAKLAND ) I, the undersigned, the CountyClerk of the County of Oakland, do hereby certify that the foregoing is a.:true and complete copy of the proceedings pertaining to the Pontiac Township Water Supply System, duly adopted and taken by the Board of Commissioners SS: of said County at a regular meeting held September 20 the originals of which are on file in my offie. , 1973, County Clerk, Oakland County Dated: September 20 1973.