HomeMy WebLinkAboutResolutions - 1971.08.19 - 16002August , 1971, at 10:00
At a regular meeting of the Board of Commissioners of
Oakland County, Michigan, held- in the Commissioners Auditorium in
the County. Service Center, in the City of Pontiac, Michigan, on
the 19th day of
o'clock A.M., Eastern Standard Time
Thursday
PRESENT: Aaron, Barakat, Brennan, Burley, Coy, Daly, Dearborn, Edwards, Gabler,
Hamlin, Harrison, Horton, Houghten, Lennon, Mainland, Mathews, Olson,
Perinoff, Pernick, Richards, Richardson, Simson, Szabo, Wilcox. (24)
ABSENT: Kasper, Patnales, Powell. (3)
\\.#
The following resolution is with reference to THE WIXOM SEWAGE
DISPOSAL SYSTEM AND IS TO APPROVE THE PLANS SPE IF A • .
ESTIMATE OF COST AND AGREEMENT
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
it S CA,ALA/VV)
Resolution:
, moves the adoption of the following
PUBLIC WORKS COMMITTEE
By
Chairman
Misc. 5781
Recommended by Board of Public Works
Re: WIXOM SEWAGE DISPOSAL SYSTEM
EXTENSION NO. 1
Submitted by Mr. Lennon
Mr. Chairman, Ladies and Gentlemen:
I offer the following resolution, which was approved and
recommended by the Board of Public Works and the Public Works
Committee;
RESOLUTION PROPOSED BY OAKLAND
COUNTY BOARD OF PUBLIC W3RKS
WITH RESPECT TO NIXON SE'..qGE
DISPOSAL SYSTEM EXT-i.;;.NSION NO.
WHEREAS, the Oakland County Board of Supervisors by resolu-
tion, Miscellaneous No 4419 adopted on February 23, 1965, established
the Wixom Sewage Disposal System to serve all of the area in the
City of .Wixom designated as the Wixom Sewage Disposal District and
the County of Oakland through its Board of Public Works did contract
with the City of Wixom under • date. of October 1, 1965, in respect to
the construction, operation and financing of said system; and
WHEREAS, the Board of Public Works has now submitted to
this Board plans and specifications for the Wixom Sewage Disposal
System - Extension No 1, an estimate of cost and an estimate of
the period of usefulness thereof, prepared by Hubbell, Roth & Clark,
inc., registered professional engineers, all of which have been
approved by the Board of Public Works; and
WHEREAS, the Oakland County Board of Public Works has
approved a form of Contract to be datd as of April 1, 1971, between
the County of Oakland and the City of Wixom providing for the con-
struction, operation and financing of the Extension No 1 to the
Wixom Sewage Disposal System and did authorize. the Chairman and
Secretary of the Board of Public Works to execute said Contract
subject to the approval of this Board of Commissioners; and
WHEREAS, the City of Wixom constitutes the only party
needed to contract with the County- for 100% of the cost of the pro-
ject;
NOW THEREFORE, BE IT RESOLVED, that the said plans and
specifications, estimate of cost and situate of period ot uesfulnes
be approved and the County Clerk is her0y authorized to endorse on
said plans and specifications and estimate$ the fact of such approval
and return same to the Board of Public Works.
BE IT FURTHER RESOLVED, that the Chairman and Secretary of
the Board of Public Works be and they are hereby authorized and
directed to execute and deliver on behalf of said County of Oakland,
a Contract to be dated as of April 1, 1971, between the County of
Oakland and the City of Wixom, which reads as follows:
::1.:JTkACT
NIXON DISPOSAL SYSTEM
EXTENSION NO I
THIS CONTRACT, made asof the 1st c.if April, 1971, 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 CITY OF WIXOM, a home rule city corporation
in the County of Oakland (hereinafter called the "municipality"),
party of the second part:
WITNESSET H:
WHEREAS, the Oakland County Board of Supervisors by
Resolution, Misc. No, 4419, adopted on February 23, 1965, did
approve of establishment of the Wixom Sewage Disposal System to
serve the Wixom 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, has acquired and constructed the said Wixom. Sewage
Disposal System pursuant to the Wixom Sewage Disposal System
Contract, dated October 1, 1965, between the County of Oakland and
the City of Wixom-, .(said contract hereinafter referred to as the
"Base Contract"); and
by the terms of said Act No 185 the c-unty
and the.municipality are authori=Ted to enter into a contract
the acquisition, enlargement or extension of a sewage
disposal system. andfor the payment. ofthe cost thereof by the
municipality with interest, over -a period not od.i ng forty
(40) years, and the county is then authorized, pursuant to appro-
priate action of its Board of Commissioners, to issue its bonds
- to provide the funds therefor,- secured by the full faith and credit
contractual obligation of the municipality, and upon affirmative
vote of three-fifths (3/5ths) of the members elect of the Board of
Commissioners, by the full faith and credit pledge of the county;
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 Wixom Sewage Disposal
System in the municipality by the acquisition and construction of
the so-called Extension No. 1 in anticipation of the collection
by the county of amounts to become due from the municipality under
this contract between the county and the municipality: and
WHEREAS, no other municipality in the Wixom Sewage
Disposal District will be affected by the construction of said
Extension -No. 1; and
WHEREAS, in order to issue such bonds, it is necessary
that the county and the municipality enter into this contract.
NOW, THEREFORE, in consideration of the premises and
the covenants of each other, the parties hereto agree as follows:
constructed are hereby designated the "Dxteneion No. the 1" of
1. The county and the -;a1-4p,a7Xity hereby approve the
extension, improvt and eniaraement of the Wixom Sewage Disp
System by the acquisition and construQiton of sewage disposal
facilities to aerve the munioipality, under and plArsuant to the
provisions of Act No 185 of tho Michigan Public Acts of 1957 1 as
amended. The sewage disposa3, fa cilities to be acquired and
Wixom Sewage Disposal System.
2.. The facilities constituting the entire Extension No.
1 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 Extension No. 1 of the Wixom Sewage
Disposal System is hereafter sometimes referred to as the "project".
3. The county and the municipality hereby approve and
adopt the .estimate of the cost of the project in the amount set
forth on Exhibit "B" attached hereto, and the estimate of 50
years and 'upwards as the period of usefulness of the project, all
as prepared by the consulting engineer.
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) • Submit to the Board of Commissioners
Oakland County a resolution, duly approved
and recommended by the board, providing for
the issuance of bonds in one or more series
in the aggregate principal amount necessary
to finance the acauisitlon of si.z as
on Exhibit or sucth different.
refloating any revision in the estimate of
the cost of the project as may be agreed
• upon by the parties hereto, or reflecting
the amount of other funds available to pay
the cost of the project, maturing serially
as authorized by law, over •a period of not
to exceed forty (40) years, which bonds will
be secured primarily by the payments herein:-
after provided to be made by the municipality,
to the _making of 'which its full faith and
credit is hereby pledged, and secondarily,
if approved by a three-fifths (3/5ths)
majority of the members elect of the Board
of Commissioners, by the full faith and
credit of the County of Oakland.
(c) After the Board of Commissioners of Oakland
County has adopted the bond resolution, the
board will take all necessary procedures to
obtain -the approvals necessary to the
issuance of the bonds by the Municipal
Finance Commission of the State of Michigan,
obtain construction bids for the project and
enter into construction contracts with the
lowest responsible bidders, and sell and
deliver the bonds in the manner authorized
by law, .
(d) After the issuance of said bonds and the exe-
cution of construction contracts, the board
shall cause the project to be -cct -zn,d
within a reasonable time and do all
other things required of it under the pro-
visions of Act No, 185 of the Public Acts
of Michigan, 1957, as amended,
5. It is understood and agreed by the parties hereto
that the 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 Wixom 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 6 and B 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 construction
adequate property damage and public liability insurance covering
all facilities to be constructed pursuant to this contract, All
policies of insurance shall provide that the county and the
municipality shall be insured parties thereunder and shall contain
a provision requiring that the 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, The municipality hall pay to the county the entire
cost of the project. The term cost as us•d herein shall be
construed to include all items of cost of the type set forth on
Exhibit "B" attached hereto and any other it,7.r.s of cost of a
• similar nature as may be set forth in any revision of said Exhibit
"s" 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 4 in the aggregate principal
amount not to exceed the cost of the project, or any portion there-
of, as determined or estimated at the time or times of such issuance.
. The municipality covenants and agrees to remit the principal and
interest.payments on said bonds so issued and the paying agent fees
and other charges to service said bonds (herein called "bond
-service charges"), as hereinafter provided, which interest payments
shall be determined by applying to said principal payments the rate
or rates of interest borne by the county bonds when sold and
delivered. Shown on Exhibit "C I' is the schedule of annual principal
payments to be made by the municipality.
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 municipality, 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 the municipality. The municipality
hereby covenants and agrees, not less than thirty (30) days prior
to the due date of any principal of or interest on such bonds, to
remit to the county sufficient funds to pay the same along with
any bond service charges then due. The obligations herein expressed
shall be applicable to all bonds issued by the county to construct
and complete the project, or any part thereof, whetho:c issued at
one time or more than on time. It is assumed that the aggregate
principal amount of all bonds issued wIll represent. the cost of
the project. If funds are available fr Lhe municipality or any
other source to pay the cost of the project or any portion thereof,
prior to the. issuance of bonds, then the obligation of the munici-
Pality shall be adjusted and limited accordingly. If t:.:
shall fail to make any of such payments when due, the amount there-
of shall be subject to a penalty of one-half of one percent (1/2 of
1%) for each month or fraction thereof that the same remains unpaid
after the due date. The municipality may pay in advance of maturity
all or any part of an annual installment due the county,. (I) by
surrendering to the county, bonds issued hereunder of a like prin-
cipal amount maturing in the same calendaryear, with all future
due interest coupons attached thereto, or (2) by payment in cash
of the principal amount of bonds to be called plus all interest to
the first day on which such amount of bonds can be called and the
amount of premium and charges necessary to call such amount of
bonds on such date.
7. After- completion of the project and payment of all
costs thereof, any surplus remaining from the sale of the bonds
therefor shall be used to call such bonds as are callable or to
purchase bonds on the open market and in such event the con-
tractual obligation of the municipality in respect to the project
shall be reduced by the principal amount of bonds so called or
purchased, said .reduction to be applied as to year, in accordance
with the year of the maturity of the bonds o called or purchased.
Any bonds so call ed or purchased shall be cancelled, In the
alternative, said surplus may be used at the raqusst.of the muni-
cipality and upon approval by the Oakland County Board of
sioners, to improve, enlarge or extend the project.
8. If the proceed.F3 of the sale of the original bonds
to be issued by the county to finance the project, or any part
thereof, are for any reason insufficient to complete the project
in accordance with the plans and specifications therefor, the
board shall, if necessary, submit- to the Board of Commissioners of
Oakland County a resolution providing for the issuance of .additional
bonds in an amount necessary to provide funds to complete the pro-
ject in. which event the duties and obligations of the board and the
municipality as expressed and set forth in this contract shall be
applicable to such additional issue of bonds as well as the original
issue, it being at all times fully recognized and agreed that the
payments to be made by the municipality, in the manner specified in
paragraph 6 of this contract, shall be based upon the aggregate
amount of the bonds outstanding. In lieu of the issuance of such
additional bonds, any other method may be agreed upon by the county
and the municipality to provide the necessary funds to complete the
project.
9. The municipality, pursuant • to the authorization of
paragraph - (2), section 12 of Act 185, Public Acts of Michigan, 1957,
as amended, does hereby pledge its full faith and credit for the
prompt and timely payment of its obligations expressed in this
contract and shall each year, commencing with the year prior to the
year that it will first be required to make payments to the county
in accordance with the provisions of paragarph 6 of this contract,
levy a tax in an amount which, -taking into consideration est7,d
delinquencies in tax collections, will be auffent to pay it
obligation: .JArdp7f: contract 1-)E' e the time
the following year's tax collections; PROVT,DED, HCwEv,th
at the time of making such annual tax levy there -h,1,11 be other
funds on hand earmarked and set aside for the payment of such
contractual obligations falling due prior to the next tax collec-
tion period, then the annual tax levy may be reduced by such
amount. Such other funds may be raised in the manner provided in
said paragraph (2), Section 12 of Act 185, Public Acts of Michigan
1957, or any amendments thereto.
3.0. This contract-is contingent upon the county issuing
its negotiable bonds as set forth in subparagraph (b) of paragraph
4 of this contract, to defray the estimated cost of the project, or
a part of the project, which bonds shall be issued under the autho-
rizatiOn provided in paragraph (1), subparagraph (b), Section 11
of said Act, 185, Public Acts of Michigan, 1957, as amended.
11. 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, • main-
tenance and use of the sewage disposal facilities of the project.
After completion, the project shall be used for the treatment of
sanitary sewage within the municipality and for ultimate disposal
thereof. Upon completion of the project the county hereby leases
the facilities constituting the project to the municipality upon
the same terms and conditions as are set forth in paragraph 13 of
the Base Contract.
The municipality agrees to lease the project from the
county upon said terms and conditions and for the period of
if
the Base Contract and agrees-.to pay the ,•if.ditional sum of $1.00
per year on January 1st of each year comncing January 1, 1972,
and in addition to perform its covenants and agreements set forth
in this contract and the Base Contract as a rental for said project.
12. The county and the municipality each recognize that
the holders from time to time of the bonds issued by the county
under the provisions of said Act 15, Public Acts of Michigan, 1957,•
as amended, and secured by the full faith and credit pledge of the
municipality to the making of its payments as set forth in this
contract, will have contractual rights in this contract and it
is therefore covenanted and agreed by each of them that so_ long
as any of said bonds shall remain outstanding and unpaid, the
provisions of this contract shall not be subject to any alteration
or revision which would in any manner affect either the security
of the bonds or the prompt payment of principal or interest
thereon. The municipality and the county further covenant and
agree.that they will each. comply with their respective duties
and obligations under • the terms of this contract promptly, at
the times and in the manner..herein-set forth, and will not suffer
to be done any act which would in any way impair the said bonds, •
the security therefor, or.the prompt payment of principal and
interest thereon. It is hereby declared that the terms of this
contract in as far as they pertain to the security of any such
bonds, shall be deemed to be for the benefit of the holders of
said bonds.
13. 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 when the Base Contract terminates. 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.
CITY OF WIXOM
By.
Mayor
By
City Clerk
7 ,
/
July 23, 11971
V lIXOM SEWAGE DISPOSA SY ST EM
EXTENSION NO I
ESTIMATE 07 COST
7:eationt. Plant Excansion - STAGE II AND STAGE III . $6 S 2 ,
. . v Li , • B 4 1 • * • • • • 0 •
-. .....
• • • 0 • 0 • 9 .., c ._.. .,-..... n::, ,....., L. ,._ ',..) i L 0 • • ... 41 , 4, 0 0 0
„ .
SaG 5orings & Ground Water Investigation . . _ 10, 000. 10
•gency, . .
SUB-TOTAL S84 5,030. •
Less 75% Grant based on Eligible Costs of
4
SUB-TOTAL °I Rnn. , v VV. v
Capitalized -Interest @ 7.5% for 18 Months .
TOTAL PROJECT COST . $280,030.00
hby e.stirte the. period of usefulness of this facility to be
fifty(a)years and upwards.
HUBBELL, ROTH & CLARK, INC...
----Th / _
I 7- ,., .:.'
Tames W. Hubbell, P.E. 41166'1
4.)
EXI-HBIT "B"
-1 „,
v/IXOlvi SEWAGE DISPOSAL SYSTEM
EXTENSION NO I
Ti,'NTATIV.E SCHEDULE OF PRINCIPAL AND INTEREST PAYMENTS
Interest @ 7.5% Total Arircca i
Due May- 1 Due May I Due Nov. and Tnt.,,--:=.sr.
--- 1972 -- $10,500N $10,500(*)
1972 -- 10,500M 10,500 $ 10,500
574 $ 20,000 10,500 9,750 40,250
1975 20,000 9,750 9,000 38,750
1975 30,000 9,000 7,875 46,875
. 1977 30,000 7,875 6,750 44,625
1975 40,000 6,750 5,250 52,030
-1C-7,0 _,..., LT-, i.":;-,r)
-U,Q ,i1., 5,250 3,750 49,000
1980 50,000 3,750 . 1,875 55,625
1 98 7 50,000 1,875 -0- 51,875
$280,000 $54,750 - $54,750 $389,500
t*.'t CapXalized Interest
EXHIBIT "C"
BE IT FURTHER RESOLVED, that the officers of the Board of
Public Works are authorized to execute and deliver such number of
original copies of said contractas they may deem advisable.
PUBLIC WORKS COMMITTEE
Bernard F. Lennon, Chairman
Coy Supported by Mr.
AYES: Coy, Daly, Dearborn, Edwards, Gabler, Hamlin, Harrison, Horton, Houghten,
Lennon, Mainland, Mthews, Olson, Perinoff, Pernick, Richards, Richardson,
Simson, Szabo, Wilcox, Aaron, Barakat, Brennan, Burley. (24)
NAYS: None. (0)
ABSENT: Kasper, Patnales, Powell. (3)
Motion. carri„ecl.
STATE OF MICHIGAN )
COUNTY OF OAKLAND )
the undersigned, the duly qualified and acting County
Clerk of the County of Oakland, do hereby certiry that the fore
go,ing is a .true and complete copy of a resolution adopted by t!•L
Board of Commissioners at a regular z-:•,,aziting of said Board, held. on.
the 19th day of August , 1971, the original of which • — . .
is on file in .my office.
IN WITNESS WHEREOF, I have hereunto affixed my official
SS:
signature this 19th day of August AD. 1971.
Lynn D. Al len, County Clerk