HomeMy WebLinkAboutResolutions - 1972.06.01 - 15793At a regular
presented the plans, specifications, Mr. Lennon
meeting of the Board of Commissioners
of Oakland County, Michigan, held in the Board of Commissioners
Auditorium Building, Oakland County Service Center, 1200 North
Telegraph Road, Pontiac, Michigan, on the 1st day of June
1972, at 9:30 o'clock A.M., Eastern Standard Time.
PRESENT: Aaron, Barakat, Burley, Coy, Daly, Dearborn, Doyon, Gabler, Hamlin,
Harrison, Horton, Houghten, Kasper, Kronenberg, Lennon, Mainland,
Mathews, Olson, Paholak, Patnales, Perinoff, Pernick, Powell,
Richardson, Simson, Wilcox. (26)
ABSENT: Szabo. (1)
Miscellaneous Resolution No. 6033
Recommended by Board of Public Works
RE: CLINTON-OAKLAND SEWAGE DISPOSAL SYSTEM
GIBSON-AVON ARM
estimates, contract and agreement mentioned in the following
resolution, a copy of each of the contract and agreement having
been sent to each member of the Board of Commissioners.
The following resolution is with reference to THE GIBSON-AVON ARM
OF THE CLINTON-OAKLAND S.D. S. AND IS TO APPROVE THE PLANS, SPECIFICATIONS,
ESTIMATE OF COST AND THE TWO AGREEMENTS.
and since a copy of the resolution has, prior to this meeting been mailed to
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 following
Resolution:
The following resolution was offered by Mr. Lennon
WHEREAS, the Oakland County Board of Public Works has
approved and adopted, and has submitted to this Board of Commissioners
for its approval, plans and specifications for the extension by the
County of the Clinton-Oakland Sewage Disposal System by the acquisi-
tion and construction of sewage disposal facilities to serve the
Township of Avon, said facilities to be known as the "Gibson-Avon
Arm", together with estimates of the cost and period of usefulness
thereof (which estimates are attached as Exhibit "B" to the here-
inafter mentioned cOntract), all prepared by Johnson & Anderson,
Inc., consulting engineers; and
WHEREAS, the Board of Public Works has also approved and
submitted to this Board of Commissioners for its approval, a
proposed agreement between Aetna Life Insurance Company, the Town-
ship of Avon and the County of Oakland and a proposed contract
between the County of Oakland and the Township of Avon both of
which relate to the acquisition and financing of said Gibson-Avon
Arm; and
WHEREAS, the Township Board of said Township has approved
the said agreement and the said contract and has authorized and
directed that each be executed for and on behalf of the Township
by the Supervisor and the Township Clerk; and
WHEREAS, said agreement provides, in part, that the Aetna
Life Insurance Company will advance to the County moneys sufficient
to pay the entire cost of the project and that such advances shall
be reimbursable, with interest for the period and at the rate per
annum from the date or dates specified therein, by payments out
of bond proceeds or payments to be made by said Township of Avon
as to Section II and out of payments to be made by the Township as
to Section I; and
WHEREAS, said contract provides that the County of
Oakland will acquire the Gibson-Avon Arm using the advances made
under the agreement to pay the cost thereof and thereafter will
reimburse Aetna Life Insurance Company for the cost of Section
II from proceeds of county bonds or payments made by the Township
pursuant to the contract.
THEREFORE, BE ITRESOLVED By THE BOARD'OF COMMISSIONERS
OF OAKLAND COUNTY, MICHIGAN, as follows:
1. That said plans and specifications and said estimates
be and the same are hereby approved, that the County Clerk shall
endorse thereon the fact of such approval, and that the same shall
be returned to the Board of Public Works.
2. That said agreement between Aetna Life Insurance
Company, the Township of Avon and the County of Oakland and the
said contract between the County of Oakland and the Township of
Avon be and the same hereby is each 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
agreement and said contract for and on behalf of the County of
Oakland, in as many original copies as they may deem advisable,
the said agreement and said contract each being as follows:
CLINTON-OAKLAND SEWAGE DISPOSAL SYSTEM
GIBSON-AVON ARM CONTRACT
THIS CONTRACT, made as of the 1st day of May, 1972, 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 AVON, a township corporation
in the County of Oakland (hereinafter Called the "municipality"),
party of the second part:
WITNESSE,TH:
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 to
serve the Clinton-Oakland Sewage Disposal District, within which
district lies all of the municipality; and
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 County of Oakland, through its Board of
Public Works, is acquiring and constructing the said Clinton-
Oakland Sewage Disposal 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 "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, 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 municipality by the acquisition and
construction of the so-called Gibson-Avon Arm under the provisions
of said Act No. 185; and
WHEREAS, the municipality will enter into an Agreement
to Advance and Reimburse Sewer Construction Costs (herein called
the "Agreement") with Aetna Life Insurance Company, a Connecticut
corporation, (herein called "Aetna") (to which Agreement the county
will also be a party and in which Agreement this Contract will be
incorporated by reference) pursuant to which Aetna will agree to
advance to the county the entire cost of the Gibson-Avon Arm,
presently estimated to be $960,000, in payments as required by the
county during construction and at completion, which advances will
be divided by the terms of said Agreement into one portion allocated
to Section I of the Gibson-Avon Arm, being the portion located in
Section 26 of the TowhShip of Avon, and one portion allocated to
Section 11 of the Gibson-Avon Arm, being the remainder of the
project; and
•nnnn
WHEREAS, the municipality will agree in said Agreement
to reimburse Aetna for all advances related to Section I, with ,
interest at 5% per annum on the amount unreimbursed from completion
and acceptance of Section I by the county during the three year
period following such acceptance, to the full extent of tap-in
permit charges collected by the municipality for connections made
to Section I in Section 26; and
WHEREAS, the municipality and thecounty will agree in
said Agreement to reimburse Aetna in full for all advances related
to Section II, with interest at 5% per annum on the unreimbursed -
amount thereof from the time of advance until paid, by the use of
the -proceeds of county bonds issued pursuant to Act No. 185 and
this Contract or out of payments received from the Municipality
pursuant to this Contract prior to or in lieu of the issuance of
county bends with the understanding that the county and the
municipality will use their best efforts to issue said bonds; and
WHEREAS, no other municipality in the Clinton-Oakland
Sewage Disposal District will be affected by the acquisition,
'construction and financing of said project at this time; and
WHEREAS, in order to acquire and construct said project
and to issue such bonds, it is necessary for the county and the
said municipality, parties hereto, to enter into this Contract;
and
WHEREAS, the Oakland County Department of Public Works
(hereinafter sometimes referred to as the "DPW") has obtained _
plans, specifications and an estimate of cost for the construction
of said Gibson-Avon Arm, prepared by Johnson & Anderson, Inc.,
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22
registered professional engineers, and a plan of the approximate
route of said Gibson-Avon Arm and the areas to be served thereby
which is attached hereto as Exhibit "A" and by this reference
made a part 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, imprcvement and enlargetherrt of the Clinton-Oa k land
Sewage Disposal Systems by the acquisition and construction of
sewage disposal facilities to serve the municipality, 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 "Gibson-Avon
Arm of the Clinton-Oakland Sewage Disposal System".
2. The facilities constituting the entire Gibson-Avon
Arm 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. The portion of said facilities
located in Section 26 of the municipality is hereby designated
"Section I" and the remainder of the facilities are hereby
designated "Section II".
3. The county and the municipality hereby 'approve and
adopt the estimate of the total cost of the project in the amount
set forth on Exhibit "3" 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. When the project is
completed, the county and the municipality and Aetna shall allocate
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the final costs between Section I and Section II as provided in
the Agreement.
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 engineer.
(b) Obtain construction bids for the project and
if said bids satisfy the Agreement or are
accepted by Aetna so that the provisions of
the Agreement are satisfied and the county
has received the letter, Exhibit "D". to the
Agreement, enter into construction contracts
with the lowest responsible bidders.
(c) Submit the plans and specifications and
estimate of cost to the county .beard of .
commissioners, together with resolutions
approved by the Oakland, County Board of Public
Works, accepting and approving the Agreement
and providing for the issuance of bonds by
the county as hereinafter and in the Agreement
provided.
(d) After the Agreement is executed by all iDarties.
thereto and construction contracts have been
executed, the board shall cause the project
to be constructed within a reasonable time
and do all other things required of it under
the provisions of Act 185, Public Acts of
Michigan, 1957, as amended, the Agreement .
and this Contract.
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5. It is understood and agreed by the parties hereto
that the project is to serve the municipality 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 facilities, 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 project is 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 of the Base Contract 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 constructien
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 municiToality 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 of insurance shall be filed with the
municipality.
6. Aetna has agreed to advance on behalf of the munici-
pality to the county moneys sufficient to pay the entire cost of
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the entire project which advances as to Section II shall be
repayable out of bond proceeds or payments by the municipality as
the Agreement provides. The municipality shall ultimately pay
to the county, to cover the cost of Section II of the project
sum equal to the cost thereof plus interest and other charges
herein provided. All payments and advances shall be applied to
the cost of theeAxm. The term "cost" as used herein shall be
construed to include all items of cost of the type set forth on
Exhibit "s' 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
acquiring and constructing the project but in no event to be less
than the amount of any bonds issued by the county pursuant to Act
185 to pay all or part of the cost of the project (herein called
"bonds"). Aetna shall agree prior to the award of construction
contracts and prior to issuance of bonds to advance to the board
moneys sufficient to pay the cost of the project. The amount
to be so advanced shall be the estimated cost of the project at
the time of such Agreement or as the cost shall ultimately be
determined to be pursuant. to this Contract and the Agreement.
7. The amount to be paid by the municipality with respect
to Section I of the project shall be determined and paid as pro-
vided in the Agreement and the county shall have no obligation or
duty with respect to said payments. In the event that county bonds
are issued as provided herein, the amount to be paid by the
municipality with respect to Section II of the project shall be
divided into annual-installments, numbered in direct order of
their maturities. The amount of each installment for the munici-
pality shall beset forth on an Exhibit "C" to be adopted by the
county and the township and made a part hereof prior to issuance
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of county bonds. Said installments shall be due in consecutive
numerical order thirty days prior to the date in each year shown
on said Exhibit "C", and all amounts thereof from time to time unpaid,
shall bear interest from the date of the county bonds, at the
rate per annum payable on the bonds, which interest shall be paid
by the Municipality to the county semi-annually thirty days.prior
to the date on Which interest is payable on the bonds issued by the
county together with the annual fees and expenses connected with
the payment of said bonds. If the municipality 'shall fail to
pay to the county any installment or interest when the same becomes
due, then the amount thereof shall be subject to a penalty, in
addition to interest, of 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 at any time to Aetna before bonds are issued
and thereafter to 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. Accrued interest
upon the amount so paid upon any installment, and accrued interest
upon the bonds surrendered, shall be adjusted to the date of
surrender and any difference shall be paid in cash. All surrendered
bonds and coupons shall be canceled.
In the event county bonds are not issued as herein pro-
vided, the municipality shall make annual payments of not less
than $50,000 each to the county, the first such payment shall be
made on or before May 1, 1977 and successive payments shall be
made on each May 1st thereafter. Such annual installments shall
a
continue until the county has received the full amount of the
advances made by Aetna for Section II with interest from the
date of each advance at the rate of 5% per annum. Such payments
shall be credited first against interest and the balance against
principal.
In the event that bonds are sold after the municipality
has made a payment or payments to the County pursuant to the
foregoing paragraph, the total amount of the principal payable
to the county as set forth on Exhibit "C" shall be the unpaid
principal balance of the advances by Aetna for Section II.
8. If the moneys advanced pursuant to the Agreement are
for any reason insufficient to complete the project in accordance
with the plans and specifications therefor and bonds have not yet
been issued, the county shall make the certifications provided in
the Agreement and Aetna shall advance additional moneys - in an
amount necessary to provide funds to complete the project. If bonds
have been issued, then the additional .amount shall be paid by the
municipality and the several then remaining installments shall be
increased accordingly and the county Shall issue additional bonds
or shall, at the request of the municipality, use any other moneys
available to defray such additional cost of the project.
.9. After completion of the project and payment of all
costs thereof, any surplus remaining from the moneys advanced shall
be refunded to the municipality or in,.accordance with the Agree-
ment to Aetna. All moneys advanced for Section II shall be
reirrLursed to Aetna with interest at the rate of 5% per annum from
the date • or dates moneys were advanced, if and when county bonds
sold to defray the cost of the project. . Any surplus of bond
proceeds shall be used with approval of the Board of commissioners
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to extend, enlarge or improve the Arm or applied in payment of the
obligations next falling due of the municipality hereunder either
• to Aetna or the county, as the case may be.
The municipality consents to the establishment and
location of the project within its corporate limits and consents
to the use of the streets, alleys and public places of the munici-
pality for the location, construction, repair, replacement,
maintenance and use of the sewage disposal facilities of the pro-
ject. After completion, the project shall be used for the
collection of sanitary sewage within the municipality and the
transportation of said sanitary sewage for ultimate disposal.
Upon completion of the project the county hereby leases the facili-
ties constituting the project to the municipality during the term
of this Contract, upon the following terms and conditions:
(a) The facilities shall be used and operated
by the municipality in compliance with all
contractual and legal obligations applicable
to the municipality. The municipality shall
employ qualified and competent personnel to
Operate the facilities hereby leased.
(b) The municipality, at its own expense, shall
maintain said facilities in good condition
and repair, to the satisfaction of the
Board of Public Works., The Board of
Public Works shall have the right to
inspect the said facilities at any time
and if said facilities or any part thereof
are not in a state of good condition and
repair, then the Board.of- Public Works
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shall notify the municipality in writing
as to any deficiency. If the municipality
shall fail to restore the facilities to a
good condition and repair within a reason-
able 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
existance and shall enforce an ordinance or
ordinances concerning the connections of
premises in the municipality to the facilities
and concerning the use of and the payment of
charges for the use of the facilities.
(d) The municipality shall make and collect from
the individual users of the facilities such
charges for sewage disposal services as shall
be sufficient to pay the cost of the opera-
tion and maintenance of the facilities, the
cost of sewage disposal charges required to
be paid by the municipality, and to establish
suitable reserves for operation and
maintenance. 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 Con-
-1 1-
tract or the Base 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 all facilities
hereby leased to it by the county. All
-policies of insurance shall provide that
the township, Aetna 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
and Aetna be notified at least ten days prior
to cancellation thereof. One copy of each
policy of insurance shall be filed with -
Aetna and the Oakland county Department_
of Public Works.
The municipality agrees to lease the project from the
county upon the foregoing terms and conditions and for the period
of this Contract and agrees to pay the sum of $1.00 per year on
January 1st of each year commencing January 1, 1973, and in
addition to perform its covenants and agreements set forth in
this Contract as a rental for said project. .
11. The municipality does hereby pledge its full faith
and credit for the prompt payment of the aforesaid obligations and
shall eacy year, commencing with the year 1973, levy a tax in an
amount which, taking into consideration estimated delinquencies
in tax collections, will he sufficient for the prompt payment of
any amount falling due before the time of the following year's tax
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collection, unless at the time of making such annual levy there
shall be cash on hand (as provided for in paragraph (2), Section 12,
of Act No. 185, Public Acts of 1957, as amended) earmarked for the
payment of the current obligations for which the tax levy is to be
made, or available for the purpose as herein provided, in which case
the annual tax levy may be reduced by that amount. Funds for which
credit may be so taken, shall be raised by one or more of the methods
set forth in paragraph (2), Section 12 of said Act 185, Public Acts
of 1957, as now existing or hereafter amended, primarily by the -
exaction of connection charges which the municipality hereby agrees
to impose and collect for each sewage disposal unit connected or
developed for connection directly or indirectly to the Gibson-Avon
Arm.
12. The county shall issue its negotiable bonds to defray
the cost of Section II of said project not covered by payments made
by the municipality before bonds are issued, which bonds shall be
secured by the full faith and credit pledges of the municipality
under this Contract, as provided forin Section 11 of said Act 185,
Public Acts of 1957, as amended, and, if 3/5ths of the members
elect of the Board of Commissioners shall approve, the full faith
and credit of the County of Oakland shall be pledged to the prompt
payment of said bonds, principal and interest. Said bonds shall
be issued pursuant to the provisions Of said act and the applicable
general statutes of the state where not in conflict with said act.
13. The provisions of this Contract shall not be modified
or terminated so as to impair the security of any bonds issued by
the county upon the full faith and credit pledges of the municipality
or the county. It is hereby declared that the terms of this Contract,
insofar as they pertain to the security of any such bonds, -shall be
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deemed to be for the benefit of the holders of said bonds.
14. 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 AVON
By
Supervisor
By
Township Clerk
13. Sub-Total, Construction = $779,244.00
14. Engineering
15. Administration
16. Inspection
17. Easement Acquisition
18. Soil Borings
19. Legal .
20. Financial
21. Contingencies
= $ 50,600.00
= 21,100.00
= 23,400.00
= 8,000.00
= 2,000.00
= 6,300.00
= 5,000.00
= 64,356.00
22. Project Cost = $960,000.00
By:
EXHIBIT "B"
February 1, 1972
ESTIMATE OF COST
GIBSON-AVON ARM
of the
CLINTON-OAKLAND SEWAGE DISPOSAL SYSTEM
@ $ 1, 30" C-76 CL V Sanitary Sewer
2. '30" C-76 CL IV Sanitary Sewer
3. 30" Sanitary Sewer in Tunnel
4, 27" C-76 CL IV Sanitary Sewer
5. 24" C-76 CL IV Sanitary Sewer
6. 24" C-76 CL IV Sanitary Sewer
7. 15" C-76 CL IV Sanitary Sewer
8. 6" House Leads
9. 6" House Leads in Tunnel
10. - Standard Manhole
11. Special Manhole 4-1
12. Drop Manholes
$2,049 L.F.
4,197 L.F.
151 L.F.
910 L.F.
3,992 L.P.
in Tunnel 45 L.F.
6,666 L.F.
1,981 L.F.
45 L.F.
42 Ea.
21 Ea.
6 Ea.
62.00
53.00
125.00
34.00
30.00
100.00
23.00
12.00
60.00
800.00
1,500.00
1,800.00
= $127,038.00
= 222,441.00
= 18,875.00
= 30,940.00
= 119,760.00
= 4,500.00
= 153,318.00
= 23,772.00
= 2,700.00
= 33,600.00
= 31,500.00
= 10,800.00
I hereby estimate the period of usefulness Forty (40) years and upwards.
JOHNSON AND ANDERSON, INC.
/
EXHIBIT 0
Township of Avon
407 Pine. Street
Rochester, Michigan 48063
Oakland County Department of Public Works
1 Public Works Drive
Pontiac, Michigan 48054
Gentlemen:
Avon Township, Oakland County and Aetna Life
Insurance Company have recently entered into a contract
relating to the construction of a sanitary sewer in Avon
Township known as the Gibson-Avon Arm. This contract pro-
vides that Aetna Life Insurance Company is to disburse funds
to the Oakland County Department of Public Works through
Aetna's Detroit agent, Detroit Mortgage and Realty Company.
This letter is to advise you that upon being notified that
the Oakland County Department of Public Works has entered
into a contract for building the Gibson-Avon Arm, Detroit
Mortgage and Realty Company will make available and disburse
in accordance with the Avon Township -Oakland County-Aetna
contract a fund of not less than $2 -00,000 and as monies are
disbursed from that fund, Detroit Mortgage and Realty Company
will cause the fund to be replenished so that until Aetna's
obligations under the Avon Township-Oakland County-Aetna
contract have been paid in full, the fund on hand with
Detroit Mortgage and Realty Company will have available for
distribution not less than $200,000_1
Very truly yours,
DETROIT MORTGAGE AND REALTY
COMPANY•
T!‘ C.
T LI
AGR=1= TO A.DVANCE An) REIMBURSE
cnsTs
This Agreement made this day
11972, between Aetna Life Insurance Company, a Connecticut
Corporation of 151 Farmington Avenue, Hartford, Connecticut,
rhereinafter known as Aetna; Township of Avon, a Michiga
oration of 407 Pine Street, Rochester, Michigan, hereinafter
known as Avon, and the County of Oakland, a Michigan County
Corporation, by end through its Board of Public Works, hera
known as Oakland County,
WITNESSETH:
Whereas, Aetna has an interest inthue—develoPment-of_
lands described as Section 26 in the ToWnship of Avon, Oakland
County, Michigan, now zoned as a ,Ianned Neighborhood District,
d desires, in common with Av,on and others, public utilities to
serve said area and contigpaus areas as quickly as reaso
and
Whereas, Avon is willing to contract with Oakland
County to construct a sewer line which will run generally from
the intersection of South Boulevard and Dequindre Road to the
;northerly line of said Section 26 and will serve said Section
same can be financed,
pfter
Now, therefore, It Is Agreed as follows:
1. Aetna agrees to furnish the necessary money to
construct a sanitary sewer line as above described in accordance
ith plans and specifications prepared by Johnson E Anderson, Inc.
:being their Job No. 3694-30, dated February 6, 72, as revised,
which are incorporated as a part of this Agreement by this
,t
.reference.
2. Prior to the time construction of the sewer is
,:commenced, the plans and specifications shall be reviewed and
approved by AVOWS engineer, by Avon, by Oakland County and by
the Michigan department of Health. All necessary permits,
lincluding those from the Michigan Department of Health, sPa U 7
ecured by_and in the name of Avon. All necessary easz
lbe acquired by Avon, •
" - . 3. Avon shall arrange With u,-..Aland County to public
advertise, open and read bids taken by Oakland County for the
1!I 1 construction of the sewer. Oakland County shall enter into a
1 construction contract with the lowest responsible bidder approved
1
11 by Oakland County whose bid does not ..exceed the estimated cost
780,000.00. In the 'event that no bid is received from a con -
actor approved by Oakland County in an amount not in excess of
ae estimated cost, Aetna shall have the option to request tha
Oakland County readvertise for bids or to termdae
; 1 If the Agreement is terminated, Aetna shall pay to Avon all c.
it has incurred, including those for plans, drawings, notices,
advertising, administration and easement acquisition and that
portion of the amount thu,s/paid to Avon by Aetna which covers the
amount paid for engineering plans and drawings and the cost of
1 easement acquisition shall be repaid to Aetna by Avon no later
than the date on which construction is started on any portion
) the sewer covered by the plans referred to in Paragraph 1. of
Agreement. Once the contract has been let, the parties mutually
4
agree to do everything necessary in order to complete the con -
4 struction of the sewer as soon as possible.
t;
4. Aetna shall advance all construction costs relating!
to the described sewer. These costs shall include the cost of
labor and materials contracted for by Oakland County as provide d , e - LAW CP FF n CEf.'
7,Jm
in Par,,,,o- 0 Paragrap h 3.. and eng ineering services (including design and .:CONtiLLL tt. GC06Af.lAt4: '0 '
Trir A60.2064
74 Ai 1.6NC, LA. R44,6 4 ;
:6,2g6,Z407,1,6LA,t,",t4t,4801:;.!
64,4",,t,;;;;;400, t"
- -
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A
k H eld wor), inspection fees, casement .acquisitien and admini,,;tral
d t
11 titan. It is agreed that those costs- Shall not exceed $-960,000.00 I
unforoen circumstances should arise which result in the
costs of construction exceeding the initial contract price as -
, !provided in Paragraph 3., in which event Aetna shall advance such i ;
additional costs . on condition that prior to incurring them OaklaT1
Ito Aetna as to the necessity and reason for
ksuch additional costs. Payments shall be made by Aetna, thr(
its representative, Detroit Mortgage and Realty Company, 333
Fort Street, Detroit, Michigan, on a monthly basis upon receipt
the Monthly Estimate of Work Completed approved by Oakland Co
and certified by it that the payment is proper, due and payable.
Aetna guarantees that within five (5) days from receipt of such
plonthly Estimate of Work Completed the paymcnt_salled_for therein
shall be made to Oakland County. 'Prior,-tO-Oakiand Couhty ent
into a construction contract,. Aetna/Shall provide Avon and Oakl:
County with a letter executed by Detroit Mortgage and Realty
!Company in the form attached /hereto as Exhibit "D".
S. For the purpose of this Agreement, construction of
the sewer called for in the plans described in Paragraph 1. shall
be divided into two sections. Section I shall include that por-
tion of the sewer to be installed in Section 26 of Avon Township
and Section II shall include that portion of the sewer not
l included in Section 26. Each Monthly Estimate of Work Completed.
;shall allocate the disbursement -Called for therein between
!Section I and Section II of the sewer.
6. A. At such time as construction of the entire
Iscwer has been completed, the -total construction cost shall he
LAW CrF,C4:a OP
cdETT a ll oca t e d between Section I and Ste -Lion II. Such allocation
:CNHELL GQC;CAS;AN ,;
"c'wAh=c-u 11,shall be made on an actual cost has is
C ounty shall certif 11 -
WELZ LCKG LAKE ROAD
1,1
Avon arees to reimburse Aetna for the (.-o
- Htlon cost allocated to Section I with interest at five
(S 9..;) per annui!-1 on the unroimburse portion of such cost, such
Interest to accrue fro;o the date on which Oakland. County
dofficially accepts Section I for use .until Aetna is fully ".f771M-
Oursed or the expiration of throe (3) years from the date of ,
acceDtance whichever is sooner. • Avon shall accomplish such , - -
H H - Iirelmbursement by remitting to Aetna on a quarterly basis all
sewer capital charges . collected by Avon for issuing tap-in pormj.ts1
0
for buildings constructed in Section 26, as provided by Avon
11 Township Ordinance No. 44, as now or hereafter amended, .attached
4.
Ihereto as Exhibit "A". Such sewer capital charges shall be
H pplied -first to interest and then to the unreimbursed balance
he construction cost..
C. Avon agrees to reimburse Aetna for the construc-
tion host allocated to Section II . with interest 'thereon at five
percent '(5 96) per annum accruing from the date of each advance
L until Aetna is fully reimbursed. Such reimbursement shall be
LAWcYriCrsOr
11,1A:4, EE1171,, iiC,WLErr.S
ZONN:LL GC,e".(,ASiAN
SitifiAliaf:CN Ziff: ! ;7+:
if
1...; if', • f
accomplished as follows:
(1) Avon has entered into a contract with Oakland
County, attached hereto as Exhibit "B", which provides that
Oakland County will cause bonds to be issued, the proceeds
from the sale of,which the parties anticipate will be avail-
able within three (3) years from the date of this Agreement.
Avon shall do everything necessary to cooperate with Oakland
County to assist Oakland . County to issue and sell the bonds,
the proceeds of which shall be used when received to the
extent necessary to reimburse Aetna.
(2) Avon shall net participate in the issuance of
any bonds to .COVOT the cost of the construction of any
ii
sitary scar located within, the area designated as thc
Township's Stage III of the Township's sewer construct
plans as such area is delineated on the drawing attach
hereto and Marked Exhibit "C" unless such bond issue
sufficient funds to reimburse Aetna in full for all sums
owing for principal advanced by Aetna and interest accrued
thereon for constructing Section II.
) In the event that Aetna has not been reim-
bursed the construction cost 'allocated to Section II and the
interest thereon within .three (3) years from the date of
this Agreement, Oakland County shall thereafter pay to Aetna!,
received by Oakland County. from Avon pursuant to
the provisions of the contract between them, Exhibit "B"
attached hereto'.
7. At such time as the sewer above described has been
completed and accepted by Oakland County and by Avon Township,
Avoin shall assume responsibility for the continued operatio
h repair and maintenance r the sower. 0
8. Premises located in Section 26 connecting to pri-
vately constructed lateral sewers tying into Section I of the
sewer line shall not be liable for payment of a Lateral Benefit
ge as provided for in Ordinance No. 44.
IN WITNESS WHEREOF, this Agreement has been executed as
of the date first above written.
AETNA LIFE INSURANCE COMPAN
a Connecticut Corporation
IM
Ch
LAW OrnCE5 Of
1.3171ZR. 4-i4,',VL Ell: 7:1
;CON'iELL GC,!;;;AS3AN
T.1
I t s
t,) 4; 4 5-:<, 4 00
I
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.1
-1
•:
• II
" , '4,1` ,1 -1, 4_, 4,111%L4,4 4":' -r) Avt,i , 2.)-
niCiPal Corporation
COU7TY OF OAKLAND, a Michigan
County Corpof atio, by and thyouo.
its Board of Public Works 1
By
Jts-
LAW OFF;CLS
BrIzR.
CohNaLL
rAE L'MA7,1411M.
4 'eVIS1MC ,15/11, 1,1•4*
••
f`
i1
• 1.1.• L.)411. M•'1.5. 45(115
(313( (5415-34
!!
Feruary 1, 1972
AVM) TTINSHIP TAP CHARGES
(Including leters)
1" with 5/8' -ieter
1" 71eter
1 1/2" with 1 1/2"eter=
4. 2" with 2" leter T.C.
$350.00 each
410.10 each
750.90 each
1,450.00 each
ti
Prices for sizes larger than 2"
shall be based on current time and material costs
in accordance with Ordinance No. 44.
Above fees are based solely on 60 ft.
right of %Fay.
All prices above are subj:t to
change without notice.
NOTICE
At a Regular Meeting of the Avon Township Board, held at the
Avon Township Hall, 407 Pine Street, Rochester, Oakland
County, Michigan, May 12, 1971:
Present: Supervisor Pepper, Clerk Spencer, Treasurer Ennis,
Trustees Bell, Borden, Lamb and Trimble
Absent: None
QUORUM PRESENT.
MOTION by Bell, supported by Borden, Resolved, that Ordinance
#44 of the Ordinances of the Township of Avon and known as the
Avon Township Water and Sewer Operating Ordinance ho amended
by adding under Section 4, sub-title "WATER AND SF:7R DEBT
SERVICE RATE" the following sub-paragraph:
(d) As to new construction, the debt service charge may
not be paid before the building permit has been is- -
sued and shall be paid before connection with water
and/or sewer service. As to all existing structures,
the debt service charge shall be due at the time of
connection to water and/or sewer facilities. The
rates and charges in effect at the time of payment
shall apply, except in the case of existing residen-
tial structures electing to pay the chargesover a
period of forty (40) years. In that case, the rates
and charges shall be those in effect at the time of
connection to water and/or sewer facilities.
Inasmuch as this Ordinance protects the health and
welfare of the people of the Township of Avon, this
amendment is given immediate effect.
AYES: Bell, Borden, Lamb, Trimble, Ennis, Spencer, Pepper
NAYS: None
MOTION :'IED
MOTION by Lamb, supported by Ennis, Resolved, that Ordinance
444 of the Ordinances of the Township of Avon and known as
the Avon Township Water and Sewer Operating Ordinance be
amended as follows:
TO DELETE: Section 15 (Existing Text.)
TO ADD: Section 15, The provisions relative to the capi-
tal charges and unit charges as provided for in
Section 4 of this Ordinance shall be the same as
were in effect immediately preceeding the amend-
ment of this Ordinance, dated March 10, 1971,
and such capital and unit charges shall remain
Rochester, Michigan, 77e6nesday, May 12, 1971 Page 2
REGULAR MEETING of the :WON TO-771IP POT,RD (Cont'd)
TO ADD Section 15 (Cont'd)
in effect until July 1, 19710 On and after that
date provisions relative to capital charges and
unit charges as heretofore ,Indee on March 10,
1971 shall be in effect and shall apply equally
to all persons, firms or corporations becoming
liable for such charges after that date. In
all other respects, the Ordi:-ce as amended or
March 10, 1971 shall remain in effect as LA ,-- 3
Inasmuch as this Ordinance protects the health
and welfare of the people of the Tc,7, of
Avon, this amendment is given immediate effect.
AYES norden, Lamb, Ennis, Spencer, Pepper
NAYS: Bell, Trimble
)TION CARRIED
psop 1.ya. ,40.n ,./514
I, Thelma G. Spencer, Avon Township Clark, do hereby certify
that the fore-going is a true eopy of Resolution adopted by
the Avon Township Board at a Regular ting held Wednesday,
May 12, 1971.
Tr7ELMA G. SPENCER,
Avon Township Clerk
ba
Meter Size
5/8 Inch or 3/4 Inch
1 Inch
1 1/2 Inch
2 Inch
3 Inch
4 Inch
Minimum Quarterly Charge
9.00
12.00
18.00
24.00
36.00
67.00
44
(As Amended)
AN OPDItnE TO PROVIDE FOR THE OPER7I:2 nr n';77EnnNCE OF THE IATER
SUPPLY SYSTEn i\ND THE SUJAGE DISPOSAL SYST!7 07 TYE 77YriSIP OF AlION O 7 n
PUBLIC UTILITY RATE BASIS UNDER THE PROVISIrS OF ACT 94, PUBLIC ACTS OF
MICHIGAN, 1933, AS AMENDED.
THE OSHIP OF AVON ORDAINS:
Section 1. It is hereby determined to be desirable and necessary for the
• public health, safety and welfare of the Township of Avon to eperate all inaier
and sewer facilities of Avon Township as one combined Water Sc' and S- .
Disposal System of the Township of Avon, and to operate and meintain the s
on a public utility rate basis, subject to Ordinances No. 16 and 24 of Avon
Township and in accordance with the provisions of Act 94, Public Acts of
Michigan, 1933, as amended.
Section 2. The Hater Supply and Sewage Disposal System of said Township
shall be operated and mairtained as one system on a combi1e ,1 rate basis and
shall include all water mains and laterals, pumping -stattees, sewers, sewage
disposal facilities and all attendant facilities and equipment which are used
or useful in the operation and maintenance of the Water Supply or Sewage
Disposal System, now in existence or hereafter acquired.
Whenever the words "revenues" and net revenues" are used in this Ordinance,
they shall be -esaod to have the meanings as defined in Section 3, Act 94,
Public Acts of Michigan, 1933, as amended.
Section 3. The operation, maihtenarce, alteration, repair and management
of the System shall be under the suflervisinn and control of the Townshi[,
and administered as a regular departmant of the Township government. The
Township Board may employ such person or persons in such capacity or capacities
as it deems advisable to carry on the efficient management and operation of the
System, and may make such rules, orders and regulations as it deems advisable
and necessary to assure the efficient management and operation of the System.
Section 3.01. Premises within the ,areas served by sewer laterals which
abut upon or are crossed by existing facilities or new construction or extensions
of either, from which sewage emanates, shall not be used or occupied after the
effective date hereof, unless said premises are connected to the laterals;
provided, however, that such premises shall be connected to said laterals
within twelve (12) months after the completion of the laterals.
Section 4. The initial rates to be charged for water and sewer service
furnished by the System shall be as follows:
WATER RATE
Except as herein otherwise provided, water will be furnished by the System
toeach premises shall be measured by a meter installed and controlled by the
Township. Charges for water service to each premises connected with the water
supply system for each quarterly (3 months) period, shall be as follows:
(a) A minimum quarterly charge, depending upon the size of meter used,
as setforth below, which charge shall entitle the customer to use up to
1,800 cubic feet of water in the quarter, viz:
(b) For all water used during the quarterly period in excess of 1,800
cubic feet, the following charges for such excess water used, viz:
1,800 to 3,600 cubic feet at $0.50 per 100 cubic feet or fraction thereof;
Over 3,600 cubic feet at $0.40 per 100 cubic feat or fraction then-20f.
(c) The owner of any nrernines usinc! metered water may upon annlication
have a separate water meter Thstell•,' for use of water for area maintenance.
Such metered connection shall be by separate connection to the supply main.
All connection charges apply. This privilege shall likewise be extended to
corporations or associations who in their by-laws are charged with care and
upkeep of open spaces or grounds surrounding residential dwellings.
The Township shall pay for all water used by it at the foregoing rates,
except that for fire -en-frent service, the charge shall be Twenty Dollars
($22.00) per year for each hydrant. fThert:es against the Township shall be
naeeble in quarterly (3 month) instaUeents from the current fund of the
Tcneehip or from the proceeds of taxes, ehich the Township, within
constitutional limitations is hereby aethorized and required to levy in
an amount sufficient for that pur•nee.
TREAMENT RATE
Premises with metered eeter supply:
$3.75 per quarter plus $0.25 per 100
cubic feet of water consumption or
fraction thereof.
(b) Residential premises with non-metered water:
$10.00 per premises, per quarter, flat rate.
(c) All other premises - such rates as shall be
established by the Avon Township Board.
(d) The sewage rate shall not apply wtene water is separately
metered and used for area mainteea-ee.
WATER AND SEER DEBT SERVICE RATE
The debt service charge shall consist of:
(a) Capital Charge, which shall be as follows:
This charge shall be based upon $350.00 per unit for
Hater Service and $350.00 per unit for Sewer Service.
In no instance shall the capital charge be less than
$350.00 for water and $350.00 for Fanitary sewer. The
above ;:350.90 per unit capital charen will not be
applicable to existing premises now connected to
municipally-e-nen and operated water and/or sanitary
sewer systems.
A, unit shall be regarded as a residential dwelling
quarters. A unit residential dwelling quarters is
defined as a free-stare'..7 te single-family residence,
each residence in a townhouse or clusterhouse, each
apartment in an apartment building, each half of a
duplex house and each trailer or mobile home in a
mobile home park.
Based upon this unit charge, charges for other types
of connections are as follows:
A Residential Unit - 1 Unit
Auto Dealers - Cars - 1 Unit plus 15% of a
Unit ($52,50) per stall
Bars - 1 1/2 cents per sq. foot plus 5% of a
Unit ($17.50) per seat
Barber Shops - 1 Unit plus 10% of a Unit
($35.00) per chair
Bowling Alleys, with Bar and Lunch - 1 Unit plus
20% of a Unit (70.00) per lane
Bowlin:1 Alleys Only - 1 .nit plus 3% of a Unit
($2.80) per lane
Beauty Shoos - 1 Unit plus 15% of a Unit
($52.50) per booth
Car jash - 1 Unit plus 10 cents per square foot
Churches - 1 1/2 cents per sg.foot plus •0,8% of
a Unit ($2.80) per seat
Clinics - 1 Unit plus 50% of a Unit ($175.00)
nor examining rc.v-Ti
Factories (offices prod.) - 1 1/2 cents per sq.ft.
plus 4% of a Unit ($14.00)
per person
Groceries Supts - 1 1/2 cents per sq. foot
plus 5Y of a Unit ($175.00)
per e
Hospitals - 1 Unit plus 75% of a Unit ($262.50)
per bed
Hospitals (Convalescent Homes) - 1 Unit plus 20%
of a Unit ($70.00) per bed
Hotels & Motels - 1 Unit plus 25% of a Unit
($87.50) per bed
Office Buildings - 1 1/2 cents per sq. foot plus
25% of a Unit ($87.50)
per empl -..v
Restaurants (Food Only) - 1 1/2 cents per sq. foot
plus 8% of a Unit ($28.00)
per scat
Restaurants (with food and drinks) - 1 1/2 cents per
sq. foot plus 16% of a Unit
. ($56.00) per seat
Schools - 1 Unit plus 1 Unit ($350.00) each
additional room
Service Stations - 1 Unit plus 15% of a Unit
($52.50) per py-lo
Drive-Ins (Snack Bars, etc) - 1 U'iit -::,11J.s 4% of a
Unit ($14.00) per seat or stall
Theatres (Prive-Ins) - 1 Unit plus 4% of a Unit
($1 11.00) Per car space
For ether uses not listed, or for unusual conditions,
charges shall be determined by the Township.
SPECIAL USES
Debt Service Charges shall not apply for water service
conn ections for area maintenn-- corporations or
associations maintaining :'J'oao or c.7rn surrounding
residential dwelling units already the herein
defined Debt Service Charges.
There shall be paid on behalf of any premises making a direct
private connection to any public water and/or sanitary sewer
line which has not been either privately constructed and paid
for on behalf of said premises or publicly financed at least
in part by means of special assessments levied against the
property of which said premises are located, for the
of making use of said public water or scyfcr line as a water or
sanitary sewer lateral, at the time of a .i,pication for a tap
permit, a Lateral Benefit Charge as follows:
.00
HATER
Inspection Fee
Water Usage Fee
Heter Charge
$15.00
r rv)
(By size
For each Free-Standing Single-Family Residence:
Water
Sanitary Sewer
$ 900.00
1,150.00
For any premises other than a Free-Standing
Single-Fnily Residence:
Water $900.00 for the first 80 feet or less of property
on which said promises are located abutting said
public water line, and $180.00 for each additional
20 feet or less of such nrnnrrty so abutting.
Sanitary Sewer $1,150.00 for -ts: first BO feet or less of
property on which said pnemisos are located abutting
said public sower line and $230.00 for each additional
20 feet or less of such property so abutting.
Sub T at CHn2es in the character of the use or type of
occunsnty of said premises (including destruction, removal
or 7±-r -t-ninent of any or all irTtrnents thereon) shall not
abats the nbligation to continnnt yment of the capital
charno or the lateral benefit c.nrn hcrein setforth charged
to said premisns in the amourt 7:1'4 fnr the period herein
provided and, if subsequent ch7rnnes at the time increase the
amount of sna.ge emanating from the premises, the Township
Board may, in its discretion, increase the number of units
assigned to said premises and thereupon any additional capital
charge occasioned by such increase in units shall be payable
in cash at time of construction or other permit is issued by
the Township for such changes in use or at the time such
change in use occurs if no permit is issued or required.
(c) All new construction must pay the dnbt service charges in cash.
Existing residential structures h7V. the option of making the
Debt Service Payments in cash or mai., pay the debt service
charges over a period of 40 years in equal installments as
a part of the water and sower bill. If the time payment
method of payment is elected, the amount of the debt service
charge shall be increased 33-1/3%. Any existing structure
which elects to pay the debt service charge over a period of
years may prepay the unpaid balance of such charge at any
time, with a 25% discount on the then remaining balance.
CONNECTION RATE
(A) Water or Se.ner
Water or seer connections, whore provided by the Township
shall be 120% of actual cost.
(B) Private Crnnoctiens
Where eliinrs, subdividers, builders and developers are permitted
to mae their own connection on water and sewer lines they
install themselves to the individual houses or buildinn , the
Tap .7Issr(7n will be waived and the following charges for each
home or building will be collected in its stead:
SEWER
Inspection Fee $1!
BILLING
All customers will be billed for sewer service quarterly at the
same time that charges for water service are billed. Sue' bills
shall be due at the same time and shall be subject to thn same
penalties for late payments as are water bills.
ENFORCEMENT
The charges for water and/or sewer services which are under the
provisions of Section 21, Act 94, Public Acts of Michigan, 1933, as
amended, made a lien on all premises served thereby, unls.'ss notice is
given that a tenant is responsible, an... hareNnn recogn7e tn constitute
such lien, and ,hnnever any such c ,t,,r9n 2 ,fli-tt any pienr, pnn7rty
shall be delinnynnt for six (6) sInnts, the itn ,nnhip official or
officials in Cif ,:ii2 of the collectinn thereof shall certify annually,
on July 1st of each year, to the tax-assessing officer of the Township,
the fact of such delinquency, whnnnnnnr such chsrje shall be by him
entered upon the next tax roll as a ct ..nrqr.: an7In7t such premises and
shall be collected and the lien thernnf ,:nfercen in the same manner as
general Townshin taxes against such premses are collected and the lien
thereof enfons-4 : Provided, however, .Henn notice is given that a
tenant is rnsnnsible for such charges nil service as provided by said
Section 21, no further service shall be rendered such nrnmises until a
cash deposit in the amount of $15.00 shall have been mado as security
for payment of such charges and service.
In addition to the fornt,oinn, the Tnnthip shall have the right to
shut -off water and/or sewer ssrvice to are' nrnmises for which charges
for water and/or sewer service are more than thirty (30) days dnlinquent,
and such service shall not be re-establin nntil all delinquent charges
and penalties and a turn-on charge of $5.00 have hnnn paid. 1---n1dnr,
such charges and penalties shall constitute a. debt which may be rtcovered
by the Township through Court action.
Section 5. Ne free service shall be furnished by said System to any
person, firm or corporation, public or private, or to any public agency
or instrumentality.
Section 6. The rates hereby fixed are cstin7t.•0 to be sufficient to
provide for the payment of the expenses of administrntinn and operatinn, .
such expenses for maintenance of the said System as are necessary to prnserve
the same in good repair and working order and to provide for such
expenditures and funds for said System as this Ordinance and Ordinancn
No. 16 and 24 may require. Such rates may be revised from time to time
by the Township Board when such action becomes necessary to provide sufficient
funds.
Section 7. The System shall be operated on the basis of an operating
year commencing on April 1 and ending on the last day of March next folln ,,,.ing
Section 8. The revenues of the System shall be set aside, as collected,
and deposited in a separate depository acnnnnt in a bank duly qualified to do
business in Michigan, to be selected by the Township Board, in an account to
be desinatnd "Mater and Sewage Disposal System Receiving Fund" (hereinafter,
for breviisn:, referred to as the 'Receiving Fund"), and said revenues so
deposited shall be transferred from the Receiving Fund porindic'lly in the
fr2nner and at the times hereinafter specified.
(A) Operation and Maintenance Fund:
Out of the revenes in the Receiving Fund there shall be first set aside
semi-annually into a depository account desigr-tnd OPERATINr, MnnjENANCE
FUND, a sum sufficient to provide for the pknnnrt of the next quarter's
current expnrtns of administration and operation of the system and such
current expenses for the maintenance thnnnnf as may be necessary to preserve
the same in good repair and wnrking orr!nr.
(B) Replacement Fund:
There shall next be established nd maintained a depository account
designated REPLACEMENT FUND, which shall he used solely for the purpose
of making major repairs and replacnmnnts to the System if needed. There
shall be set aside into said fund, after provision has been made for the
Operation and Maintenance Fund, such sums as the Township Board shall deem
necessary for this purpose.
(C) Improv?mdnt Fund:
There shall next be established and maintained an Improvnment Fund for
the purpose of caing improvements, extensinns and nnlaroomeht: tn t'in System.
There shall be ddposited into said fund, after dnndinMng for the foregoing
funds, such sums as the Tn .1Thip Board shall determine,
(D)Reserve Fund:
Moneys remaining in the Receiving Fund at the end of any cdnrating year,
after full satisfaction of the roquirnmnnts of the foregnind fn-ds, may, at
the option of the Township Board, be trnnsforred to thn Tdrrynnvent Fund or
used for any other purpose of the Water and Sewer System.
(E) Nothing herein contained shall be construed to revoke the covenants of
the Township made in Ordinances Wa. 16 and 24 relative to Hater District or
System No. 1 and Hater Supply 7,r.::! Sewage DispnnT11 System No. 2, respectively,
or to alter or diminish the s••nni -v for r•n.nnue bonds for each such system
•utherized by said ordinances. Revenues from each of said systems shall
continue to be sndrogated upon the books of the combined Avon Tnwnship Water
Supply and Sewage Disposal System established hereby in the setforth
in said ordinances, and •ddrnpriato accounts shall be institute 3nd
maintained within the acc•nnt structure of said combined system for this
purpose, and revenues of said systems shall be applied to the various
expenses, liabilities and charges of said sytems as previously in said
ordinances provided.
Bank Accounts:
All moneys belonging to any of the foregoing funds or accounts may be
kept in one bank account, in which event the mnrcys shall be allocated on
the hooks and records of the Township within this single bank account in
the manner above setforth.
Section 9. All funds derived from the collection of rates for services
furnished by the System on hand in any account on the effective date of this
Ordinance shall, within fifteen (15) days thereof, be transferred to the
Receiving Fund and be distributed therefrom in accordance with the terms of
this Ordinance.
Section 10. In the event the moneys in the Receiving Fund arn insufficinnt
to provide for the current roquirn .hcnts of the Operating and M&intenahce Fnhd,
any moneys and/or securities in other funds of the System shall be transferred
to the Operation and Maintenance Fund, to the extent of any deficit therein.
Section 11. Moneys in any fund or account established by the provisions
of this Ordinance may he invested in obligations of the United States of
'America-,in the manner and subject to the limitations provided in •tt 94,
Public Acts of Michigan, 1933, as :i•ndcd. In the event such inontments are
made, the securities representing the same shall be kept on deposit with the
bank or trust cnrrn:,,ny having on dennsit the fund or funds from which such
purchase was made. Income receiving from such investments shall be credited
to the fnnd from which said investTnnts were made.
Section 12. If any section, paragraph, clause or provision of this Ordinace
shall be held invalid, the invalidity of such section, paragraph, clause or
provision shall not affect any of the other provisions of this Ordinance.
Section 13. All ordinances, resolutions or orders, or parts thereof, in
conflict with the provisions of this Ordinance, are, to the extent of such
conflict, hereby repealed.
Section 14. This Ordin a nce shall be published in full in the Rochester
Clarion, a ne1.7nper of circulation in the Township -f Avon qualified
under State law to publish legal notices, within two (2) wuts after its
adoption, and the same shall be recorded in the Ordinance Th.-,* of the Tnship
and such recordinp authenticated by the signatures of the T ,nship Superr.
and Township Clerk.
Section 15. This Ordinance shall become effective immediately upon
its adoption.
ADOPTED: Fiarch 2C, 1963
AMENDED: February 26, 1969
December 3, 1969
March 10, 1971
1, Thelma G. Spencer, Avon Township Clerk, do hereby certify that the
foregoing constitutes a true and complete copy of Ordinance #44 as adopted
by the Avon Township Board at a Meeting held on Narch 26, 1968 and amended ,
thereafter by the Avon Township Board at meetings hold February 26, 1969,
December 3, 1969, and larch 10, 1971.
THELMA G. SPENCER,
Dated: March 11, 1971 Avon Township Clerk
CLINTON-OAKLAND SEWAGE DISPOSAL SYSTEM
GIBSON-AVON ARM CONTRACT
THIS CONTRACT, made as of the 1st day of May,- 1972, 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 AVON, a township corporation
in the County of Oakland (hereinafter called the "municipality'),
party of the second part:
WITNESSETH:
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 to
serve the Clinton-Oakland Sewage Disposal District, within which
district lies all of the municipality; and
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, tne County of Oakland, through its Board of
Public Works, is acquiring and constructing the said Clinton-
Oakland Sewage Disposal 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 "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, 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 municipality by the acquisition and
construction of the so-called Gibson-Avon Arm under the provisions
of said Act No. 185; and .
WHEREAS, the municipality will enter into an Agreement
to Advance and Reimburse Sewer Construction Costs (herein called
the "Agreement") with Aetna Life Insurance Company, a Connecticut
corporation, (herein called "Aetna") (to which Agreement the county
will also be a party and in which Agreement this Contract will be
incorporated by reference) pursuant to which Aetna will agree to
advance to the county the entire cost of the Gibson-Avon Arm,
presently estimated to be $960,000, in payments as required by the
county during construction and at completion, which advances will
be divided by the terms of said Agreement into one portion allocated
to Section I of the Gibson-Avon Arm, being the portion located in
Section 26 of the Township of Avon, and one portion allocated to
Section II of the Gibson-Avon Arm, being the remainder of the
project; and
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WHEREAS, the municipality will agree in said Agreement
to reimburse Aetna for all advances related to Section I, with .
interest at 5% per annum on the amount unreimbursed from completion
and acceptance of Section I by the county during the three year
period following such acceptance, to the full extent of tap-in
permit charges collected by the municipality for connections made
to Section I inSection 26; and
WHEREAS, the municipality and the county will agree in
said Agreement to reimburse Aetna in full for all advances related -
to Section II, with interest at 5% per annum on the unreimbursed
amount thereof from the time of advance until paid, by the use of
the proceeds of county bonds issued. pursuant to Act No. 185 and
this Contract or out of payments received from the municipality
pursuant to this Contract prior to or in lieu of the issuance of
county bends with the understanding that the county and the
municipality will use their best efforts to issue said bonds; and
WHEREAS, no other municipality in the Clinton-Oakland
Sewage Disposal District will he affected by the acquisition,
'construction and financing of said project at this time; and
WHEREAS, in order to acquire . and construct said project
and to issue such bonds, it is necessary for the countyand the
said municipality, parties hereto, to enter into this Contract;
and
WHEREAS, the Oakland County ,Department of Public Works
(hereinafter sometimes referred to as the "DPW") has obtained
plans, specifications and an estimate of cost for the construction
of said Gibson-Avon Arm, prepared by Johnson & Anderson, Inc.,
-3-
registered professional engineers, and a plan of the approximate
route of said Gibson-Avon Arm and the areas to be served thereby
which is attached hereto as Exhibit "A" and by this reference
made a part 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-Oekland.
Sewage Disposal Systems by the acquisition and construction of
sewage disposal facilities to serve the municipality, 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 "Gibson-Avon
Arm of the Clinton-Oakland Sewage Disposal System".
2. The facilities constituting the entire Gibson-Avon
Arm 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. The portion of said facilities
located in Section 26 of the municipality is hereby designated
"Section 1" and the remainder of the facilities are hereby
designated "Section 11".
3. The county and the municipality hereby 'approve and
adopt the estimate of the total cost of the project in the amount
set forth on 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. When the project is
completed, the county and the municipality and Aetna shall allocate
-4--
the final costs between Section I and Section II as pro.
the Agreement.
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 engineer.
(b) Obtain construction bids for the project and
if said bids satisfy the Agreement or are
accepted by Aetna so that the provisions of
the Agreement are satisfied and the county
has received the letter, Exhibit "D". to the
Agreement, enter into construction contracts
with the lowest responsible bidders.
(c) Submit the plans and specifications and
estimate of cost to the county board
commissioners, together with resolutions
approved by the Oakland County Board of Public
Works, accep ting and approving the Agreement
and providing for the issuance of bonds by
the county as hereinafter and in the Agreement
próvided,
(d) After the Agreement is executed by all parties
thereto and construction contracts have been
executed, the board shall cause the project
to be constructed within a reasonable time
and do all other things required of it under
the provisions of Act 185, Public Acts of
Michigan, 1957, as amended, the Agreement
and this Contract.
-5-
be
enlargement and extension of th
designated in paragraph 2 hereof.
obligated to acquire or
such
constructed
necessary additional
and maintained, directly or through
facilities.
any facilities
The project is
Clinton-Oakland
construct
The county shall not be
other than those
Sewage Disposal
an improvement,
the county, any
5. It is
that the project is
individual property
arrangement between
understood and agreed by the parties hereto
to serve the municipality and not the
owners and users thereof, unless by special
the board and the municipality. The
responsibility of requiring connection to and use of the facilities
of the project and of providing such additional facilities, as may
be needed, shall be that of the municipality which shall cause to
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 of the Base Contract shall apply
hereto as though set forth in full herein.
The county hereby agrees that it will secure, or cause
to he 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 of insurance shall be filed with the
municipality.
6. Aetna has agreed to advance on behalf of the munici-
pality to the county moneys sufficient to pay the entire cost of
Aetna shall agree prior to the award of construction it "bonds
the entire project which advances as to Section II shall be
repayable out of bond proceeds or payments by the municipality as
the Agreement provides. The municipality shall ultimately pay
to the county, to cover the cost of Section II of the project, a
sum equal to the cost thereof plus interest and other charges
herein provided. All payments and advances shall be applied to
the cost of theArm. 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
acquiring and constructing the project but in no event to be less
than the amount of any bonds issued by the county pursuant to Act
185 to pay all or part of the cost of the project (herein called
contracts and prior to issuance of bonds to advance to the board
moneys sufficient to pay the cost of the project. The amount
to be so advanced shall be the estimated cost of the project at
the time of such Agreement or as the cost shall ultimately be
determined to be pursuant to this Contract and the Agreement.
7. The amount to be paid by the municipality with respect
to Section I of the project shall be determined and paid as pro-
vided in the Ac'recment and the county shall have no obligation or
duty with respect to said payments. In the event that county bonds
are issued as Tprovided herein, the amount to be paid by the
municipality with respect to Section II of the project shall be
divided into annual -installments, numbered in direct order of
their maturities. The amount of each installment for the munici-
pality shall be set forth on an Exhibit "C" to be adopted by the
county and the township and made a part hereof prior to issuance
- 7-
of county bonds. Said installments shall be due in consecutive
numerical order thirty days prior to the date in each year shown
on said Exhibit "C", and all amounts 'thereof from time to time unpaid,
shall bear interest from the date of the county bonds, at the
rate per annum payable on the bonds, which interest shall be paid
by the municipality to the county semi-annually thirty days prior
to the date on Which interest is payable on the bonds issued by the
county together with the annual fees and expenses connected with
the payment of said bonds. If the municipality -shall fail to
pay to the county any installment or interest when the same becomes
due, then the amount thereof shall be subject to a penalty, in
addition to interest, of 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 at any time to Aetna before bonds are issued
and thereafter to 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. Accrued interest
upon the amount so paid upon any installment, and accrued interest
upon the bonds surrendered, shall be adjusted to the date of
surrender and any difference shall be paid in cash. All surrendered
bonds and coupons shall be canceled.
In the event county bonds are not issued as herein pro-
vided, the municipality shall make annual payments of not less
than $50,000 each to the county, the ...first such payment shall be
made on or before May 1, 1977 and successive payments shall be
made on each May 1st thereafter. Such annual installments shall
-8-
continue until the county has received the full amount of the
advances made by Aetna for Section II with interest from the
date of each advance at the rate of 5% per annum. Such payments
shall be credited first against interest and the balance against
principal.
In the event that bonds are sold after the municipality
has made a payment or payments to the county pursuant to the •
foregoing paragraph, the total amount of the principal payable
to the county as set forth on Exhibit "C" shall be the unpaid
principal balance of the advances by Aetna for Section II.
8. If the moneys advanced pursuant to the Agreement are
for any reason insufficient to complete the project in accordance
with the plans and specifications therefor and bonds have not vet
been issued, the county shall make the certifications provided in
the Agreement and Aetna shall advance. additional moneys in an
amount necessary to provide funds to complete the project. If bonds
have been issued, then the additional amount shall be paid by the
municipality and the several then remaining installments shall be
increased accordingly and the county shall issue additional bonds
or shall, at the request of the municipality, use any other moneys
available to defray such additional cost of the project.
.9. After completion of the project and payment of all
costs thereof, any surplus remaining from the moneys advanced shall
be refunded to the municipality or in accordance with the Agree-
ment to Aetna. All moneys advanced for Section II shall be
reimbursed to Aetna with interest at the rate of 56 per annum from
the date_ or dates moneys were advanced, if and when county bonds
are sold to defray the cost of the pr6ject. Any surplus of bond
proceeds shall be used with approval of the Board of Commissioners
-9-
to extend, enlarge or improve the Arm or applied in payment of the
obligations next falling due of the municipality hereunder either
to Aetna or the county, as the case may be.
10. The municipality consents to the establishment and
location of the project within its corporate limits and consents
to the use of the streets, alleys and public places of the munici-
pality . for the location, construction, repair, replacement,
maintenance and use of the sewage disposal facilities of the pro-
ject. After completion, the project shall be used for the
collection of sanitary sewage within the municipality and the
transportation of said sanitary sewage for ultimate disposal.
- Upon completion of the project the county 'hereby leases the facili-
ties constituting the project to the municipality during the term
of this Contract, upon the following terms and conditions:
(a) The facilities shall be used and operated
by the municipality in compliance with all
contractual and legal obligations applicable
to the municipality. The municipality shall
employ qualified and Competent personnel to
Operate the facilities hereby leased.
(b) The municipality, at its own expense, shall
maintain said facilities in good condition
and repair, to the satisfaction of the
Board of Public Works. The Board of
Public Works shall have the right to
inspect the said facilities at any time
and if said facilities or any part thereof
are not in a state of good condition and
repair, then the Board of Public Works
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shall notify the municipality in writing
as to any deficiency. If the municipality
shall fail to restore the facilities to a
good condition and repair within a reason-
able 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
existance and shall enforce an ordinance or
ordinances concerning the connections of
premises in the munici: (711.ity to the facilities
and concerning the use of and the payment of
charges for the use of the facilities.
(d) The municipality shall make and collect from
the individual users of the facilities such
charges for sewage disposal services as shall
be sufficient to pay the cost of the opera-
tion and maintenance of the facilities, the
cost of sewage disposal charges required to
be paid by the municipality, and to establish
suitable reserves for operation and
maintenance. 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 Con-
-1 1--
tract or the Base 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 all facilities
hereby leased to it by the county. All
policies of insurance 'shall provide that
the township, Aetna 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
and Aetna be notified at least ten days prior
to cancellation thereof. One copy of each
policy of insurance shall be filed with
Aetna and the Oakland County Department
of Public Works.
The municipality agrees to lease the project from the
county upon the foregoing terms and Conditions and for the period
of this Contract and agrees to pay the sum of $1.00 per year on
January 1st of each year commencing January 1, 1973, and in
addition to perform its covenants and agreements set forth in
this Contract as a rental for said project.
11. The municipality does 'hereby pledge its full faith
and credit for the prompt payment of the aforesaid obligations and
shall eacy year, commencing with the year 1973, levy a tax in an
amount which, taking into consideration estimated delinquencies
in tax collections, will be sufficient for the prompt payment of
any amount falling due before the time of the following year's tax
-12-
collection, unless at the time of making such ,annual levy there
shall be cash on hand (as provided for in paragraph (2), Section 12,
of Act No. 185, Public Acts of 1957, as amended) earmarked for the
payment of the current obligations for which the tax levy is to be
made, or available for the purpose as herein provided, in which case
the annual tax levy may be reduced by that amount.- Funds for which
credit may be so taken, shall be raised by one or more of the methods
. set forth in paragraph (2), Section 12 of said Act 185, Public Acts
of 1957, as now existing or hereafter amended, primarily by the
exaction of connection charges which the municipality hereby agrees
to impose and collect for each sewage disposal unit connected or
developed for connection directly or indirectly to the Gibson-Avon
Arm.
12. The county shall issue its negotiable bonds to defray
the cost of Section II of said project not covered by payments made
by the municipality before bonds are issued, which bonds shall be
secured by the full faith and credit pledges of the municipality
under this Contract, as provided for in Section 11 of said Act 185,
Public Acts of 1957, as amended, and, if 3/5ths of the members
elect of the Board of Commissioners shall approve, the full faith
and credit of the County of Oakland shall be pledged to the prompt
payment of said bonds, principal and interest. Said bonds shall
be issued pursuant to the provisions of said act and the applicable
general statutes of the state where not in conflict with said act.
13. The provisions of this Contract shall not be modified
or terminated so as to impair the security' of any bonds issued by
the county upon the full faith and credit pledges of the municipality
or the county. 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.
14. 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) year 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 AVON
By
Township Clerk
Township of Avon
407 Pine Street
Rochester, Michigan 48063
Oakland County Department of Public Works
1 Public Works Drive
Pontiac,- Michigan 48054
Gentlemen:
Avon Township, Oakland County and Aetna Life
Insurance Company have recently entered into a contract
relating to the construction of a sanitary sewer in Avon
Township known as the Gibson-Avon Arm. This contract pro-
vides that Aetna Life insurance Company is to disburse funds
to the Oakland County Department of Public Works through
Aetna's Detroit agent, Detroit Mortgage and Realty Company,
This letter is to advise you that upon being notified that
the Oakland County. Department of Public Works has entered
into a contract for building the Gibson-Avon Arm, Detroit
Mortgage and Realty Company will make available and disburse
in accordance with the Avon Township-Oakland County-Aetna
contract a fund of not less than $200,000 and as monies are
disbursed from that fund, Detroit Mortgage and Realty Company
Will cause the fund to be replenished so that until Aetna's
obligations under the Avon Township-Oakland County-Aetna
contract have been paid in full, the fund on hand with
Detroit Mortgage and Realty Company will have available for
distribution not less than $200,000,
Very truly yours,
DETROIT MORTGAGE AND REAL
COMPANY
By
1,;\:111,11
3. That the Board of Public Works is hereby authorized
to accept advances of moneys sufficient to pay the entire cost of
the project from Aetna Life Insurance Company pursuant to the
agreement and to repay such part of the moneys advanced, with
interest at the rate, for the period and from the date or dates
all in accordance with the provisions of said agreement and said
contract hereinabove set forth in full.
It was moved by Mr. Lennon , seconded by Mr.
Houghten , that the foregoing resolution be adopted.
PUBLIC WORKS COMMITTEE
Bernard F. Lennon, Chairman
A sufficient majority haying voted therefor, the resolution was adopted.
June 1
office.
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 Clinton-Oakland Sewage
Disposal System - Gibson-Avon Arm, duly adopted and taken by the
Board of Commissioners of said County at a regular meeting held
, 1972, the originals of which are on file in my
Lynn D. Al len, (Tounty Clerk, Oakland County
Dated: , 1972