HomeMy WebLinkAboutResolutions - 1971.10.21 - 16271At a 17 r
Coty ho the
Fax7vice Area in the C!;:tv 0 4.7:,..-`)n Thursday
1971
the 21st day of October 0 0 (7.k
Eastern Standard Time,
Aaron, Brennan, Burley, Coy, Daly, Doyon, Hamlin, Harrison, Horton,
Houghten, Kasper, Lennon, Mainland, Mathews, Olson, Patnales, Perinoff,
Pernick, Powell, Richards, Richardson, Simson, Szabo, Wilcox. (24)
Barakat, Dearborn, Gabler. (3)
m ,-- 5840
3-sy
Re: HOLLY DI
bmitted by Mx. Lennon
--r
Kr. Chairman, Ladies and Genti
offer the fplThw -r
men
u.t.lon, which.
recommended by the Board of. Public °rko and the Pu1.7,11
Committee:
Resolution proposed by Oakland
County Board of Public Works
with respect to Holly Sewage
Disposal System
WHEREAS, the Oakland County Board of Supervisors by
resolution, Miscellaneous No. 5502, adopted on October 5, 1970,
established the Holly Sewage Disposal System to serve the entire
area in the Village of Holly and directed the Oakland County
Board of Public Works to submit a Contract with the Village of
Holly in respect to the construction, operation and financing of
said System; and
WHEREAS, the Board of Public Works has submitted to this
Board plans and specifications for the Holly Sewage Disposal System,
an estimate of cost and an estimate of the period of usefulness
thereof, prepared by Capitol Consultants, Incorporated, registered
professional engineers, all of which have been approved by the
Board of Public Works; and
WHEREAS, the Oakland County Board of Public Works on
September 27, , 1971, did approve a form of Contract to be
dated as of September 1, 1971, between the County of Oakland and
the Village of Holly for the construction, operation and financing
of the Holly 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 Village of Holly constitutes the only party
needed to contract with the County for 100% of the cost of the
project;
NOW, THEREFORE BE IT RESOLVED, that the said plans and
specifications, estimate of cost and estimate of period of useful-
ness be approved and the County Clerk is hereby authorized to
endorse on said plans and specifications and estimates 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 September 1, 1971, between the County
of Oakland and the Village of Holly, which reads as follows:
HOLLY SEWAGE DISPOSAL SYSTEM CONTRACT
THIS CONTRACT, made and entered into as of the 1st day
of September, 1971, by and between the COUNTY OF OAKLAND, a
Michigan county corporation (hereinafter referred to as the
"county"), party of the first part, and the VILLAGE OF HOLLY, being
a village 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 sewage disposal
facilities be acquired and constructed to serve the part thereof
lying within the district hereinafter described; 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 con-
trol of the Board of Commissioners of the County of Oakland; and
WHEREAS, the County of Oakland by Board of Commissioners
Resolution Misc. No 5502 adopted October 5, 1970, established the
Holly Sewage Disposal District to be served by the Holly Sewage
Disposal System (herein called the "System"), which System is to
consist of an enlarged and improved sewage treatment facility all
to bonds
faith
substantially as described on "Exhibit A" attached hereto and by
this reference made a part hereof; and
WHEREAS, said act authorizes a county to acquire sewage
disposal 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 sewage
disposal 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
provide the funds therefor, secured primarily by the full
and credit contractual obligation of the municipality and
secondarily by the full faith and credit of the county; and
WHEREAS, said act provides, in the opinion of the munici-
pality and the county, the fairest and most equitable means of
acquiring the sewage disposal 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 obtained a
diagram of the facilities of the System, as outlined on "Exhibit A",
as prepared by Capitol Consultants Incorporated, consulting engineers,
Lansing, Michigan (hereinafter sometimes referred to as the
"Engineers"), and has obtained an estimate of cost as shown on
"Exhibit B"; 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
of said sewage disposal system and the use thereof to serve
residents and customers of said village;
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 for the Village of Holly and the County of Oakland,
under the provisions of Act 185, Public Acts of Michigan, 1957, as
amended, which is to dispose of sanitary sewage originating in the
area which has been designated by the County Board of Commissioners
as the HOLLY SEWAGE DISPOSAL DISTRICT (hereinafter sometimes re-
ferred to as the "District").
2. The sewage disposal system referred to in paragraph 1
above has been designated by the County Board of Commissioners as
the HOLLY SEWAGE DISPOSAL SYSTEM and shall consist of enlargements,
additions and improvements to the existing sewage treatment
facilities substantially as indicated on "Exhibit A" attached
hereto.
3. The county and the municipality hereby approve the
estimate of cost of the System consisting of the items set forth in
"Exhibit B" attached hereto, and the estimate of 40 years and up-
wards as the period of usefulness thereof and the preliminary plans
and specifications, all as prepared by the Engineers. Said sewage
disposal facilities are herein after sometimes referred to as the
"project".
4. After the execution of this contract by the county
and the municipality, the board shall take the following steps:
(a) Obtain final construction plans and specifi-
cations for the project prepared by the
Engineers.
(b) Submit to the Board of Commissioners of
Oakland County a resolution, duly approved
and recommended by the board, providing for
the issuance of bonds in the aggregate
principal amount of the present estimated
cost of the project 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 pro-
ject, maturing serially as authorized by .
law, over a period not to exceed thirty
(30) years, which bonds will be secured
primarily by the payments hereinafter pro-
vided to be made by the, municipality, to
the making of which payments its full faith
and credit is hereby pledged, and secondarily
if 3/5ths of the members elect of the Board
of Commissioners so vote, by the full faith
and credit pledge of the county.
(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 of the Municipal
Finance Commission of the State of
Michigan necessary to the issuance of
the bonds by the county, obtain construc-
tion bids for the project, and enter into
construction contracts with the lowest
responsible bidders, and sell and deliver
the bonds in manner authorized by law, and
construct the project.
5. It is understood and agreed by the parties hereto
that the System is to serve the municipality and not the individual
property owners and users thereof, unless by special agreement
between the board and the municipality. The responsibility of
serving the individual users connected to the System shall be that
of the municipality which shall cause to be constructed and main-
tained any other facilities necessary for such purpose and shall
bill and collect all charges in connection therewith. The county
shall not be obligated by this contract to construct any facilities
other than those designated in paragraph 2 hereof.
6. The municipality shall pay to the county the entire
cost of the facilities of the System. 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 on the full faith and credit of the municipality or
the county. In the event all or any part of the territory of the
municipality in the area to be served by the System is incorporated
as a new city or is annexed to or becomes a part of the territory
or 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
capacity in the System of the municipality from which such terri-
tory is taken, based upon a division determined by the board, which
shall make such determination after taking into consideration all
factors necessary to make the division equitable, and in addition
shall, prior to such determination, receive a written recommendation
as to the proper division from a committee composed of one repre-
sentative designated by the governing body of the municipality from
which the territory is taken, one designated by the governing body
of the new municipality or the municipality annexing such territory,
and one independent registered engineer appointed by the board.
Each municipality shall appoint its representative within fifteen
(15) days after being notified to do so by the board and within a
like time the board shall appoint the engineer third member. If any
municipality shall fail to appoint its representative within the
time above provided, then the board may proceed without said recom-
mendation. If the committee shall not make its recommendation within
forty-five (45) days after its appointment or within any extension
thereof by the board, then the board may proceed without such re-
commendation. In the consideration of the matters herein provided,
including the designation of the third member of the committee, any
member of the board who is also an official of either affected
municipality shall be disqualified to act or vote.
7. A schedule of payments to be made by the municipality
based upon the estimated cost of the project and the dates of such
payments is attached hereto as "Exhibit C" and by this reference
made a part hereof. Immediately upon the issuance of any bonds by
the county to finance the cost of the project, the board shall notify
the municipality, by written communication addressed to its treasurer,
of any revision in said "Exhibit C" and of the schedule of payments
of the principal of and interest on the county bonds, and of the
paying agent fees and financing charges with respect thereto, and the
amount of such payments, fees and charges to be paid by said
municipality. Said municipality hereby covenants and agrees, not
less than thirty (30) days prior to the due date of any principal of
or interest on any such bonds, to remit to the board sufficient
funds to meet said payments in full and said fees and charges appli-
cable thereto. 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 more than
one time. It is assumed that the principal of the bonds represents
the cost of the project- If the municipality shaould pay the project
cost, or any portion thereof, or funds shall be received by grant
or otherwise to apply against the cost of the project, prior to the
issuance of bonds, then the obligation of the municipality shall be
adjusted 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 surrender-
ing 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.
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 municipality 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 Constitution or of any
other funds, is by these presents specifically authorized by the
municipality to withhold sufficient funds derived from such sales
tax levy or other funds and returnable to the municipality in
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 provided by law to enforce the obligation of the munici-
pality to make payments in the manner .and at the times required by
this contract. It is specifically recognized by the municipality
that the payments required to be made by it pursuant to the terms of
this contract are to be pledged for the payment of the principal of
and interest on bonds to be issued by the county, and the municipality
covenants and agrees that it will make its required payments to the
board promptly and at the times herein specified so long as this
contract remains in effect and operation, without regard as to
whether the project herein contemplated is actually completed or
placed in operation.
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 purchase such bonds on the open market and
in such event the contract obligation of the municipality in respect
to the project shall be reduced by the principal amount of bonds so
purchased, said reduction to be applied as to year, in accordance
with the year of the maturity of the bends so purchased. Any bonds
so purchased shall be cancelled. In the alternative, the surplus
funds may be used to improve, enlarge and extend the System on the
approval by resolution of the legislative body of the municipality
and of the board.
10. If the proceeds of the sale of the original bonds to
be issued by the county for the project are for any reason in-
sufficient 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 pro-
vide funds to complete the project in which event the duties and
obligations of the board and the municipality as expressed and set
forth in the 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 munici-
pality, in the manner specified in paragraph 7 of this contract,
shall be based upon the cost of the project. 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 com-
plete the project.
11. The municipality, pursuant to the authorization of
paragraph (2), Section 12 of Act 185, Public Acts of 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 1971, levy a tax in an
amount which, taking into consideration estimated delinquencies in
tax collections, will be sufficient topay its obligations under
this contract becoming due before the time of the following year's
tax collections: PROVIDED, HON7ATR, that if at the time of making
such annual tax levy there shall be other funds on hand earmarked
and set aside for the paym e nt. of such contractual obligations fall-
ing due prior to the next tax collection period, then the annual
tax levy may be reduced by such amount. Such other funds may be
raised in the manner provided in said -paragraph (2), Section 12 of
Act 185, Public Acts of Michigan, 1957, or any amendments thereto.
12. This contract is contingent upon the county issuing
its negotiable bonds as set forth in subdivision (b) of paragraph 4
of this contract, to defray the estimated cost of the project, which
bonds shall be issued under the authorization provided in paragraph
(1), subparagraph (b), Section 11 of said Act 185, Public Acts of
Michigan, 1957, as amended.
13. The municipality consents to the establishment and
location of said System as shown on "Exhibit A" and hereby transfers
to the county the existing facilities located in the city for the
purpose of constructing the project therein. Upon completion of
said System the county does hereby lease the same to the municipality
to operate and maintain the same upon
ditions:
the following terms and con-
(a) The System shall be used only to serve
the area in the District, which District
maybe hereafter enlarged by amendment to
this Contract.
(b) The municipality shall maintain said System
in good condition.
(c) The municipality will, at its own expense,
provide insurance of sUch types and such
amounts on the System as would ordinarily
be carried by private companies engaged
in a similar enterprise, which insurance
shall include sufficient liability
insurance protecting the municipality and
the county against loss on account of
damage or injury to persons or property
imposed by reason of the ownership or
, operation of the System or resulting from
any act of omission or commission on the
part of the municipality, its agents,
officers, or employees in connection with -
the operation, maintenance or repair of
the System.
(d) The municipality shall not permit the
discharge into said System of any sewage
in violation of the standards and regula-
tions controlling the d ischarge of
industrial and/or commercial type waste
into the Systm as said standards and regu-
lations may be promulgated from time to
time by the village.
(e) The municipality shall make and collect from
the individual users of the System such
charges for sewage disposal services as shall
be sufficient at least to pay the charges to
be made by the municipality for sewage dis-
posal services, and the cost of operating
and maintaining the System, and to establish
a fund for replacements improvements, and
major maintenance of the System. In addi-
tion, the municipality may make and collect
such charges to individual users as shall be
necessary to pay the operating and collection
costs of the municipality and to provide such
other funds for sewage disposal purposes as
are deemed desirable. The municipality shall
enforce prompt payment of all such charges
as the same shall become due.
(f) The municipality shall establish such charges
as specified in paragraph (d) to be paid to
the municipality auarterly or more often
+commencing with the first day of the calendar
quarter in which the System is put into
operation.
The municipality hereby accepts the lease of the System upon the terms
and conditions herein set forth.
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 135,.•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 pro-
visions of this contract shall not be subject to any lateration 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 ary 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 insofar as they pertain to
the security of any such bonds, shall be deemed to be for the benefit
of the holders of said bonds.
15. This contract shall become effective upon approval
by the legislative body of the municipality, by the Board of Public
Works of Oakland County, and by the Board of Commissioners of
Oakland County, and duly executed by the authorized officers of the
municipality and of the board of public works. It shall terminate
fifty (50) years from, the date of this contract. 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 au-
thorized officers, all as of the day and year first above written.
COUNTY OF OAELAND
By its Board of Public Works
By
Chairman
By
Secretary
N7ILLAGE OF HOLLY
President
By
Village Clerk
F
L.. if:4 Ci OF HOLLY ; N-1 KT HIGAN
c,Dpocd ELM_Tn,F3
()A K L.. N D COUNTY )EPATMNT OF P ;3
Pon'ic;c,
WASTEWATER REATMENT FACWITAES
Total Estimated Project Cost
Less Federal Grant
Less State Grant
$1,292,500.00
376,000.00
313,000.00
Subtotal
Capitalized Interest, 71% for 18 months
$ 603,500.00
76,500.00
Total Bond Issue $ 680,000.00
HOLLY SEWAGE DISPOSAL SYSTEM
Wastewater Treatment Facilities
ESTIMATE OF COSTS
Modifications to Existing Structures & Equipment $ 40,000.00
Chemical Treatment Tanks and Equipment 35,000.00
Control Building Structure 60,000.00
Secondary Treatment - Rotating Disc
(a) Structural 90,000.00
(b) Piping 30,000.00
(c) Mechanical Equipment 230,000.00
Tertiary Treatment
(a) Pressure Filtration System 45,000.00
(b) Activated Carbon System 165,000.00
U-tube Reaeration 10,000.00
Sludge Handfing Facilities
(a) High Rate Digestion System 70,000.00
(b) Sludge Dewatering System 45,000.00
Piping 90,000.00
Other Major Mechanical Equipment 50,000.00
Electrical 20,000.00
Site Work 25,000.00
Total Estimated Construction Cost $1,005,000.00
Engineering and Inspection 100,500.00
Legal and Financial 8,960.00
Administrative 30,000.00
Land Acquisition 40,000.00
Soil Test Borings 2,000.00
Contingency 106,040.00
I hereby estimate the period of usefulness of this facility to be forty (40)
years and upwards.
Capitol Consultants, Inc.
By: Milton D. Redick, P.E.
July 1971 Exhibit "B"
VILLAGE OF HOLLY
ESTIMATED PRINCIPAL AND INTEREST
REQUIREMENTS TO RETIRE PROPOSED
$680,000.00 WASTEWATER TREATMENT FACILITIES
BOND ISSUE FOR 30 YEARS @ 7-1-% INTEREST
TOTAL
PRINCIPAL INTEREST PRINCIPAL &
YEAR DUE MAY I DUE MAY 1 DUE NOV. 1 INTEREST
1972 -0- Capitalized Capitalized -0-
1973 -0- Capitalized 25,500.00 25,500.00
1974 -0- 25,500.00 25,500.00 51,000.00
1975 5,000.00 25,500.00 25,312.50 55,812.50
1976 10,000.00 25,312.50 24,937.50 60,250.00
1977 10,000.00 24,937.50 24,562.50 59,500.00
1978 10,000.00 24,562.50 24,187.50 58,750.00
1979 15,000.00 24,187.50 23,625.00 62,812.50
1980 15,000.00 23,625.00 23,062.50 61,687.50
1981 15,000.00 23,062.50 22,500.00 60,562.50
1982 20,000.00 22,500.00 21,750.00 64,250.00
1983 20,000.00 21,750.00 21,000.00 62,750.00
1984 20,000.00 21,000.00 20,250.00 61,250.00
1985 20,000.00 20,250.00 19,500.00 59,750.00
1986 25,000.00 19,500.00 18,562.50 63,062.50
1987 25,000.00 18,562.50 17,625.00 61,187.50
1988 25,000.00 17,625.00 16,687.50 59,312.50
1989 25,000.00 16,687.50 i 15,750.00 57,437.50
1990 30,000.00 15,750.00 14,625.00 60,375.00
1991 30,000.00 14,625.00 13,500.00 58,125.00
1992 30,000.00 13,500.00 12,375.00 55,875.00
1993 30,000.00 12,375.00 11,250.00 53,625.00
1994 35,000.00 11,250.00 9,937.50 56,187.50
1995 35,000.00 9,937.50 8,625.00 53,562.50
1996 35,000.00 8,625.00 7,312.50 50,937.50
1997 35,000.00 7,312.50 6,000.00 48,312.50
1998 40,000.00 6,000.00 4,500.00 50,500.00
1999 40,000.00 4,500.00 3,000.00 47,500.00
2000 40,000.00 3,000.00 1,500.00 44,500.00
2001
40,000.00 1,500.00 -0- 41,500.00
$680,000.00
July 1971 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 Contract as they may deem advisable.
PUBLIC WORKS COMMITTEE.
By
Bernard F. Lerma ,Chairman
Supported by Mr. . Kasper
Ayes Olson, Patnales, Perinoff, Pernick, Powell, Richards, Richardson,
Simson, Szabo, Aaron, Brennan, Burley, Coy, Daly, Doyon, Hamlin,
Harrison, Horton, Houghten, Kasper, Lennon, Mainland, Mathews. (23)
Nays: None (0)
Absent: Barakat, Dearborn, Gabler, Wilcox. (4)
The Public Works Committee, by _
its
moves the adoption of the following
Resolution:
1, the ur
Clerk of the County of
ing is a true and complete copy of a
STATE OF MacHT(Tu
ss:
COUNTY• OF OAELATM )
Board of Commissioners at a regi,liar of sad
1971
the 21st day - of October
on file in my office.
INWITNESS WHEREOF, I have herel:,_
sigrature thJ 21st day of October
1971
, -