HomeMy WebLinkAboutResolutions - 1971.02.04 - 16059presented the plans, specifications, Mr. Lennon
At a. regular meeting of the Board of Commis-
sioners of Oakland County, Michigan, held in the Board of Commissioners
Auditorium Building, Oakland County Service Center, 1200 North
Telegraph Road, Pontiac, Michigan, on the 4th day of February
1971, at 1000 o'clock A.M., Eastern Standard Time
PRESENT: Aaron, Barakat, Bawden, Brennan, Burley, Coy, Daly, Edwards, Gabler, Hamlin,
Harrison, Horton, Houghten, Kasper, Lennon, Mainland, Mathews, Olson, Patnales, Perinoff,
Pernick, Powell, Richards, Richardson, Simson, Szabo, Wilcox. (27)
ABSENT: None (0)
Miscellaneous Resolution No 5608
Recommended by Board of Public Works
Re: WEST BLOOMFIELD WATER SUPPLY SYSTEM
estimates and contract mentioned in the following resolution, a copy
of which contract has been sent to each member of the Board of Com-
missioners.
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 Commis-
sioners for its approval, plans and specifications for the
acquisition of water supply facilities for the West Bloomfield Water
Supply System, together with estimates of the cost and period of
usefulness thereof. (which estimates are attached as Exhibit B to
the hereinafter mentioned contract), all prepared by Neree D. Alix,
consulting engineer; and
WHEREAS, the Board of Public Works has also approved and
submitted to this Board of Commissioners for its approval, a proposed
contract between the County of Oakland and the Township of West
Bloomfield relative to the acquisition and financing of said water
supply facilities; and
WHEREAS, the Township Board of said Township has approved
the said contract and has authorized and directed that it be executed
for and on behalf.of the Township by the Township Supervisor; and the
Township Clerk;
THEREFORE, BE IT RESOLVED 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 contract between the County of Oakland and
the Township of West Bloomfield be and the same hereby is approved,
and that the Chairman and the Secretary of the said Board of Public
Works be and they are hereby authorized and directed to execute and
deliver said contract for and on behalf of the County of Oakland,
in as many original copies as they may deem advisable, the said
contract being as follows:
WEST BLOOMFIELD WATER SUPPLY SYSTEM CONTRACT
THIS CONTRACT, made and entered into this 1st day of
December, 1970, by and between the COUNTY OF OAKLAND, a Michigan
county corporation (hereinafter referred to as the "County"),
party of the first part, and the TOWNSHIP OF WEST BLOOMFIELD,
being a township corporation located in the County of Oakland,
Michigan (hereinafter referred to as the "Municipality"), party
of the second part;
WITNESSETH:
WHEREAS, it is immediately necessary and imperative for
the public health and welfare of the present and future residents
of the above Municipality that adequate and proper water supply
facilities be acquired and constructed to serve said Municipality;
and
WHEREAS, the County, under the provisions of Act 185,
Public Acts of Michigan, 1957, as amended, has established a
Department of Public Works for the administration of the powers
conferred upon the County by said Act, which Department is under
the immediate control of a Board of Public Works (hereinafter
sometimes referred to as the "Board"), and under the general
control of the Board of Commissioners of the County of Oakland;
a,nd
WHEREAS, the County of Oakland, by Board of Commissioners
Resoluti on Misc. No. 4522, adopted December 21,.1965, .established
the West Bloomfield Water Supply System (herein called the 'System"),
which system is to consist of water supply facilities for the supply,
transportation and distribution of City of Detroit water in the
Township of West Bloomfield; and
WHEREAS, said act authorizes the County to acquire water,
supply systems as defined in said act and to improve, enlarge,
extend and operate such systems; and
WHEREAS, by the terms of said act the County and the
Municipality are authorized to enter into a contract for the
acquisition, improvement, enlargement or extension of a water
supply system and for the payment of the cost thereof by the
Municipality, with interest, over a period of not exceeding forty
(40) years, and the County is then authorized, pursuant to 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 obligations of the Municipality and if the bond
resolution so provides, by the full faith and credit of the County;
and
WHEREAS, said act provides, in the opinion of the Muni-
cipality and the County, the fairest and .most : equitable means of
acquiring the water supply facilities so vitally necessary for the
public health and welfare of the residents of the County within
the district to be served, at the most reasonable cost; and
WHEREAS, the County, through the Board, has caused plans
and an estimate of cost of a project to be part of the System, to
consist of water supply facilities necessary to adequately serve
certain areas in the Municipality, to be prepared by Neree D.
Alix, consulting engineer of Southfield, -Michigan (hereinafter
sometimes referred to as the "Consulting Engineer"); and
WHEREAS, in order to issue such bonds, it is necessary
that the County and said Municipality enter into this Contract;
and
WHEREAS, it is also necessary for the County and said
Municipality to contract relative to the operation and maintenance
said water supply system and the location thereof entirely with-
in the limits of the Township of West Bloomfield.
NOW, THEREFORE, in consideration of the premises and the
covenants of each other, the parties hereto agree as follows:
1, The County and the Municipality approve the establish-
ment of the System in the Township of West Bloomfield and County of
Oakland, under the provisions of Act 185, Public Acts of Michigan,
1957, as amended, which shall transport and distribute City of
Detroit water to the area to be served thereby, which area shall
consist of all of the territory in the Township of West Bloomfield
not incorporated as a city or village, and which area is shown on
a map hereto attached marked Exhibit "A" and made a part hereof
and is hereby designated as the WEST BLOOMFIELD WATER SUPPLY
DISTRICT (hereinafter sometimes referred to as the "District"),
2. The water supply system referred to in paragraph 1
above has been designated by the County Board of Commissioners as
the WEST BLOOMFIELD WATER SUPPLY SYSTEM and the proposed project
for said System shall consist of transmission mains, and appur-
tenances to be located substantially as indicated on Exhibit "A"
attached hereto.
3. The County and the Municipality hereby approve the
plans, specifications and estimate of cost of said water supply
facilities, which estimate of cot shall consist of the items set
forth in Exhibit "B" attached hereto and by this reference made a
part hereof, and the estimate of 50. years and upwards as the period
of usefulness thereof, all as prepared by the Consulting Engineer.
Said water supply facilities are hereinafter sometimes referred to
as the "projedt",
4. .After the execution of this Contract by the County
and the Municipality, the Board shall take the following steps:
(a) Order final construction plans and
specifications for the project from
the Consulting Engineer.
(b) Submit to the Board of Commissioners of
Oakland County a resolution, duly approved
and recommended by the Board, providing
for the issuance of bonds in one or more
series in the aggregate principal amount
of the present estimated cost of the pro-
ject, or such different amount reflecting
any revision in the estimate of cost, or
reflecting the amount of other funds
available to pay the cost of the project,
maturing serially as authorized by law,
over a period of approximately thirty (30)
years, which bonds will be secured pri-
manly by the payments hereinafter pro-
vided to be made by the Municipality, to
the making of which its full faith and
credit is hereby pledged, and secondarily,
if approved_by a three-fifth, (3/5ths)
majority of the members elect of the
Board of Commissioners, by the full faith
and credit of the County of Oakland.
(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 con-
tracts with the lowest responsible bidders,
and sell and deliver the bonds in the
manner authorized by law
(1) After the issuance of said bonds and the
execution of construction contracts, the
Board shall cause the project to be con-
structed within a reasonable time and do
all other things required of it under the
provisions of Act 185 of the Public Acts
of Michigan, 1957, as amended,
5. It is understood and agreed by the parties hereto
that the System is to serve the Municipality and not the indivi-
dual property owners and users thereof, unless by special arrange-
ment between the Board and the Municipality The responsibility
of requiring connection to and use of the facilities in the project
and of the System and of providing such additional facilities, as
needed, shall be that of the Municipality which shall cause to be
constructed and maintained directly or through the County, the
necessary facilities for supply and delivery of City of Detroit
water in the Municipality. The County shall not be obligated by
this agreement to serve any areas outside the district described
in paragraph 1 hereof, or to construct any facilities other than
those designated in paragraph 2 hereof.
6. The Municipality shall pay to the County the entire
or any part of the. cost. of the facilities of the System financed
by the issuance by the County of its bonds as herein provided.
The term "cost" as used herein shall be construed to include all
items of cost of the type set forth in Exhibit "B" attached hereto
and any other items of cost of a similar nature as may be set forth
in any revision of Exhibit "B" agreed to by the parties hereto
No change in the jurisdiction over any territory in the
Municipality shall in any manner impair the obligations of this
contract based upon the full faith and credit of the Municipality .
In event all or any part of the territory of the Municipality which
is in the area served by the System is incorporated as a new city
or is annexed to or consolidated with or becomes a part of the
territory of another municipality, the municipality into which such
territory is incorporated or to which such territory is annexed,
shall.assume the proper proportionate share of the contractual
obligation and right to capacity in the System of the Municipality,
from which such territory is taken, based upon a division in the
same ratio as the population equivalent for water supply capacity
of the property in the territory so annexed or incorporated bears
to the population equivalent of the property for water supply
capacity in the remaining portion of the Municipality from which
said territory is taken. This division shall be made by the Board,
whose decision shall be final,
7.' Attached hereto as Exhibit "C", and by this reference
made a part hereof, is a schedule of the annual principal and
interest payments to be made to the County by the Municipality
computed at an assumed interest rate of 7-1/2% per annum on the
estimated cost of the project, Immediately upon the issuance of
any bonds by the County to finance the cost of the project, c,Ic any
portion thereof, the Board shall notify the Municipality, by written
communication addressed to its -treasurer, of the schedule of actual
payments of the principal of and interest on the bonds and the
paying agent fees and bond handling charges (exclusive of
capitalized interest) thereon, and the total amount of each annual
payment to be made by said Municipaiity Said Municipality hereby
covenants and agrees, not less than thirty (301 days prior to the
due date of any principal of or interest and fees and charges
(exclusive of capitalized interest) on any such bonds, to remit to
the Board sufficient funds to meet said payments in full. The
obligation herein expressed shall be applicable to all bonds
issued by the County to construct and complete the project, as
herein defined, whether issued at one time or at more than one time
It is assumed that the principal of the bonds represents the cost
of the project, If funds are available from the Municipality or
any other source to pay the project cost, or any portion thereof,
prior to the issuance of bonds, then its obligation shall be adusted
and limited accordingly. If the Municipality shall fail to make any
of such payments when due, the amount_ thereof shall be subject to a
penalty in addition to interest of one-half of one per cent (1/2
of 1%) for each month or fraction thereof that the same remains
unpaid after the due date. The Municipality - may pay in advance of
maturity all or any part of an annual installment due the County,
by surrendering to the County bonds issued in anticipation of
payments to be made under this Contract, of a like principal amount
maturing in the same calendar year with all future due interest
coupons attached theretc. The Municipality may also prepay its
obligation to the County for any year with respect to which bonds
of the County are callable, at a time when such bonds are callable,
by paying the princdpa2, interest and call premium required to
call the bonds on the next available call date.
8, In the event that the Municipality shall fail for
any reason to pay to the Board at the times specified, the amounts
herein required to be paid, the Board shall immediately notify,
in writing, both the County Treasurer of the County of Oakland
and the governing body of the Municipality- of such default and
the amount thereof, and if such default is not corrected within.
ten (10) days after such notification, the County Treasurer or
other county official charged with disbursement to such Munici-
pality of funds derived from the state sales tax levy under the
provisions of Act 167, Public Acts of Michigan, 1933, as amended,
and returnable to such Municipality pursuant to the Michigan Con-
stitution, is by these presents specifically authorized by the
Municipality to withhold sufficient funds derived from such sales
tax levy and returnable to the Municipality as may be needed to
correct such default, and to pay said sums so withheld to the
Board to apply on the obligation of the defaulting Municipality
as herein set forth. Any such moneys so withheld and paid shall
be considered to have been returned to the Municipality within
the meaning of the Michigan Constitution, the purpose of this
provision being solely to voluntarily authorize the use of such
funds to meet past due obligations of the Municipality to which
said moneys are owed. In addition to the foregoing., the Board
shall have all other rights and remedies provided by law to
enforce the obligation of the Municipality to make payments in
the manner and at the times required by this Contract. It is
specifically recognized by the Municipality that the payments re-
quired to be made by it pursuant to the terms of this Contract
are to be pledged for the payment of the principal of and interest
on bonds to be issued by the County, and the Municipality covenants
and agrees that it will make its required payments to the Board
promptly and at the times herein specified, without regard as to
whether the project herein contemplated is actually completed or
placed in operation; provided, only that nothing herein contained
shall limit the obligation of the County to perform in accordance
with the promises and covenants contained herein.
9. After completion of the project and payment of all
costs thereof, any surplus remaining from the sale of the bonds
therefor shall be used to call such bonds as are callable or to
purchase bonds on the open market and in such event the contractual
obligation of the Municipality in respect to the project shall be
10. If the proceeds of the sa f the original bonds
reduced by the principal amount of bonds so called or purchased,
said reduction to be applied as to year, in accordance with the
year of the maturity of the bonds so•called or purchased. Any bonds
so called or purchased shall be cancelled. In the alternative,
said surplus may be used at the request of the Municipality and
upon approval by the Board of Commissioner, to improve„eniarge, or
extend the System in the Municipality.
to be issued by the County for the project are for any reason
insufficient to complete the project in accordance with the pia
and specifications therefor, the Board shall, if necessary, submit
to the Board of Commissioners of Oakland County a resolution provid-
ing for the issuance of additional bonds in an amount necessary to
provide funds to complete the project in which event the duties
and .obligations of the Board and the Municipality as expressed and
set forth in this Contract shall beapplicable to such additional
issue of bonds as well as the original issue, it being at all times
fully recognized and agreed that the payments to be made by the
Municipality, in the manner specified in paragraph 7 of this
Contract, shall be based upon the aggregate amount of the bonds
outstanding. In lieu of the issuance of such additional bonds, any
other method may be agreed upon by the County and the Municipality
to provide the necessary funds to complete the project.
11. The Municipality, pursuant to the authorization of
paragraph (2), Section 12 of Act 185, Public Acts of Michigan, 1957,
as amended, does hereby pledge its full faith and credit for the
prompt and timely payment of its obligations expressed in this
is first due from the ality and is not capitalized, levy a
Contract and shall each year, commencing rece7her 1st of the year
prior to the year in which a payment as set forth on Exhibit
tax in an amount which, takirg into consideration estimated
delinquencies in tax collect .i, will be sufficient to pay its
obligations under this Contract ..,=.1.;;om1ng due before the time of
the following year's tax- colltons; PROVIDED, HOWEVER, that if
at the time of making such annual tax levy there shall be other
funds on hand earmarked and set aside for the payment of such
contractual obligations falling du ,, prior to the next tax collection
period, then the annual tax levy may be reduced by such amount,
Such other funds may be raised in the manner provided in said.
paragraph (2), Section .12 of Act 185, Public Acts of Michigan, 1957,
or any amendments thereto,
12, This Contract is contingent upon the County issuing
its negotiable bends as set forth in subdivision (b) of paragraph 4
of this Contract, to clfr.a7 the estimated cost of the project,
which bonds shall be iSued under the authorization provided in
paragraph (1), subag -,:ap% 0:)), Section 11 of said Act 185, Public
Acts of Michigan, 1957, as' amended,
13, The Municipality consents to the establishment and
lo c ation of said System entirely within its corporate limits and
consents to the use by the County of the streets, alleys, highways,
easements and public ways and places in the Municipality in which
to locate, construct, operate and maintain the facilities of the '
System, Upon completion of said System the County hereby leases
the said System to the Municipality during the term of this Con-
tract, upon the following terms and conditions:
(a) The System shall be used And operated by
the Munitipality incompliance with the
contractuaIand -legal obligations herein
. '
applicable -td.,:the Municipality.
(0). The Municipality at its own expense, shall
maintain said SystemAn good condition and
repair, and Shall employ and supervise
qualified and Competent employees therefor,
to the satisfaction of the Board of Public
Works .. The Board .of Public Works shall
have the right. to inspect the said System ,
at any time and if said System or any part
thereof is not in a state of good condition
and repair, then the Board of Public Works
shall notify the Municipality in_writing
as to any.deficiency If theMunipipality
shall fail to restore the System to a
good :condition and repair within a rea ,
son4ble time thereafter then the Boa
of Publit Works shall have the right to
perform the necessary work and furnish
the necessary materials, and reimburse-7
ment 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
(0 The Municipality shall adopt and continue
in existence and shall.enforpe an
ordinance or ordinances requiring the
connections of premises in the Municipality
to the System and concerning the use of
and the payment of charges for the use of
the System.
(d) The Municipality shall make and collect
from the individual users of the System
such charges for water supply service as
shall be sufficient to pay the cost of
the operation and maintenance of the
System, the cost of purchasing water from
the City of Detroit and to establish
suitable reserves for operating and
maintaining the System. Such charges may
also include an amount determined by
the Municipality to be used to meet the
obligations of the Municipality to the
County under this Contract. The Munici-
pality shall enforce prompt payment of
all such charges as the same shall
become due.
(e) The Municipality will provide insurance
of such types and such amounts on the
• water supply system as would ordinarily
be carried by private companies engaged
in similar enterprise, which insurance
shall include suffioient liability
insurance protecting the County and the
Municipality against loss on account of
damage or injury to persons or property
imposed by reason of the ownership or
operation of the system by either or
resulting from any act of omission or
commission on the part of the County or
the Municipality, or any agents, officers,
or employees of either, in connection
with the operation, maintenance or repair
of the system.
The Municipality agrees to lease the System from the
County upon the foregoing terms and conditions and for the period
of this Contract and agrees to pay the sum of $1.00 per year on
January 1st of each year commencing January 1, 1972, and in
addition to perform its covenants and agreements set forth in
this Contract as a rental for said System.
14. The County and the Municipality each recognize that
the holders from time to time of the bonds issued by the County
under the provisions of said Act 185, Public Acts of Michigan, 1257,
as amended, and secured by the full faith and credit pledge of the
Municipality to the making of its payments as set forth in this
Contract, will have contractual rights in this Contract and it is,
therefore, covenanted and agreed by each of them that so long as
any of said bonds shall remain outstanding and unpaid, the pro-
visions of this Contract shall not be subject to any alteration or
revision which would in any manner affect either the security of
the bonds or the prompt payment of principal or interest thereon
The Municipality and the County further covenant and agree that
they will each comply with their respective duties and obligations
under the terms of this Contract promptly, at the times and in the.
manner herein set forth, and will not suffer to be done any act
which would in any way impair the said bonds, the security there-
for, or the prompt payment of principal and interest thereon- It
is hereby declared that the terms of this Contract insofar as they
pertain to the security of any such bonds, shall be deemed to be
for the benefit of the holder of said bonds.
15. This Contract shall become effective upon approval
by the legislative body of the Municipality, by the Board of
Public Works of Oakland County, and by the Board of Commissioners
of Oakland. County, and duly executed by the authorized officers
of the Municipality and of the Board of Public Works. It shall.
terminate fifty (50) years from the date of this Contract,-or on
such earlier date when the Municipality - is not in default there-
under and the principal, interest and bond •handling charges on the
bonds issued as hereinabove described are fully paid and discharged.
This Contract may be executed in several counterparts,
The provisions of this Contract • shall be in full force
and effect and binding upon the successors and assigns of the
parties hereto.
IN WITNESS WHEREOF, the parties hereto have caused this
Contract to be executed and delivered by their respective duly
authorized officers, all as of the day and year first above
written.
COUNTY OF OAKLAND
By Its Board of .Public Works
By
Chairman
By
Secretary
TOWNSHIP OF WEST BLOOMFIELD
By
Supervisor
By
Township Clerk
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Purchase of Existing Transmission Systems . 215,865.00
o = $4 ,8 25,00 0 .0 0 Total Project Cost
December 1, 1970
WEST BLOOMFELD TOWNSHIP
WATER SUPPLY SYSTEM - SECTION I
ESTIMATE OF COST
5,815 L.F. 24" Water Main @ $ 33.00 = $ 191„,15.00
26,305 L.F. 20" Water Main @ 27.75 = 729,963.75
24,081 L.F. 16" Water Main @ 23.20 = 558,679.20
64,421 L.F 12" Water Main @ 16.40 . 1,056,504.40
6,362 L.F. 8" Water Main @ 13.00 = 82,706.00
230 L.P. 6" Water Math @ 27.00 = 6,210.00
Appurtenances 16" and over L.S. = 320,880.00
Appurtenances under 16" L.S. = 199,950.00
4 Each Meter Pits @50,000 = 200,000.00
Sub-Total Construction Cost . . = $3,346,788.35
Construction Cost — . . = $3,346,788.35
Engineering . . 6 0 0 0 = 186,372.32
Administration . . . . . . . . . . . . . = 83,669.71
Legal . . - - . 00 0 6 0 0 41 0 O ..= 14,650.00
Financial . — 0 0 0 0 P 0 0 • 7,112.50
. . = Soil Borings — 0 0 0 4 0 0 0 -0 0 0 3,000.00
Easement Acquisition — . — • . — . = 60,000.00
Inspection . • — • 66 0 6 0 O 0 . —
0 '—' 100,403.65
Contingency — — . • . . . . . . . = 324,638.47
Capitalized Interest . — 0 0 482,500.00
I hereby estimate the period of usefulness to be Fifty (50)
years and upwards,.
NEREE D. ALIX, P.E.
By //
EXHIBIT "B"
December 16, 1970
WEST BLOOMFIELD TOWNSHIP WATER SUPPLY SYSTEM -
SECTION I -
SCHEDULE OF PAYMENTS
$4,825,000 BOND ISSUE
Years Principal due on April 1st
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
19 94
1995
1996
1997
1998
1999
2000
2001
61n•
$ 75,000
75,000
75,000
75,000
75,000
75,000
75,000
100,000
100,000
125,000
125,000
150,000
175,000
200,000
200,000
225,000
250,000
275,000
275,000
300,000
300,000
300,000
300,000
300,000
300,000
300,000
$4,825,000
EXHIBIT "C"
(-7)
Bernard F. Lennon, Chairman
Frank RicharAson, Vice-Chp ,
4/
les B. Edwards„ Jr Patrick K. Daly
Robert P. Patnales orton
.",UBLIC WORKS COMMITTEE
It was moved by Mr. Lennon seconded by M.
Mainland , that the foregoing resolution be adopted.
Upon roil call the vote was as follows :::
Yeas: Aaron, Barakat, Bawden, Burley, Coy, Daly, Gabler, Hamlin, Harrison, Horton,
Kasper, Lennon, Mainland, Mathews, Perinoff, Pernick, Powell, Richardson, Simson,
Wilcox. (20)
Nays: None. (0)
STATE OF MICHIGAN )
) ss:
COUNTY OF OAKLAND )
I, the undersigned, the Clerk of the County of Oakland,
State of Michigan, do hereby certify that I have compared the
annexed copy of proceedings of the Oakland County Board of Com-
missioners taken at a regular meeting held on February 4
1971, in re: West Bloomfield Water Supply System, with the
original record thereof now remaining in my office, and that it
is -a true and correct transcript therefrom, and of the whole
thereof.
IN WITNESS WHEREOF, I have hereunto set my hand and
affixed the seal of said County at Pontiac, Michigan, this 4th
day of February A.D. 1971.
County Clerk