HomeMy WebLinkAboutResolutions - 1970.12.17 - 16385At 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
Thursday 17th December . the day of , 1970, at )FTMIS4 7:00
P.M.
o'ciock Av&., Eastern Standard Time.
PRESENT: Aaron, Bawden, Benson, Brennan, Coy, Edwards, Gabler, Grba,
Horton, Houghten, Kasper, Mainland, Mastin, Mathews, O'Brien,
O'Donoghue, Olson, Patnales, Perinoff, Pernick, Powell, Richards,
Richardson, Szabo, Walker, Wilcox. (26)
ABSENT: Hamlin. (1)
- ;-/
Misc. 5566
Recommended by Board of Public Works
Re: Milford Sewage Disposal System
Extension No. 1
Submitted by Mr. Horton
Mr. Chairman, Ladies and Gentlemen:
I offer the following resolution, which was approved and
recommended by the Board of Public Works:
Resolution propoL;ed by Oakland,
County Board of Public Works
with respect to Milford Sewage
Disal System - Sewer Extensions
by resolution, Miscellaneous No 4444,, adopted on April 27, 1965,
established the Milford Sewag Disposal System to serve certain
areas in the Village of Milford and environs designated as the
Milford Sewage Disposal District and the Coun ty of Oakland through
its Board of Public Works did contract with the Village of Milford
under date of May 1, 1965, in respect to the construction, operation
and financing of said system; and
WHEREAS, the Oakland County Board of Supervisors by resolu-
tion, Miscellaneous No, 4420 adopted On February 23, 1965, as amended,
N
WHEREAS, the Board of Public Works has now submitted to
this Board plans and specifications for the Milford Sewage Disposal
System - Sewer Extensions an estimate of cost and an estimate of the
period of usefulness thereof, prepared by Hubbell, Roth & Clark,
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
November 23, 1970, did approve a new form of Contract to be dated
as of September 1, 1970 0 between the County of Oakland and the
Village of Milford providing for the •0 onstruction, operation and
financing of the Sewer • Extensions to the Milford 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 Milford constitutes the only
party needed to contract with the County for 100% of the cost of
the project; and
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 i 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, the Contract to be dated as of September 1, 1970, between
the County of Oakland and the Village of Milford, which reads as
follows:
MILFORD SEWAGE DISPOSAL SYSTEM
SEWER EXTENSIONSICONTRACT
THIS CONTRACT, made as of the 1st day of September, 1970,
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 VILLAGE OF MILFORD, a village corporation in
the County of Oakland Thereinafter called the "municipality"), party
of the second part:
WITNESSET H:
WHEREAS, the Oakland County Board of Supervisors by
Resolution Misc. No 4420, adopted on February 23, 1965,. did approve
of establishment of the Milford Sewage. Disposal System to serve the
Milford 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 Milford Sewage
Disposal System pursuant to the Milford SewageDisposal System
Contract, dated May 1, 1965, between the County of Oakland and the
Village of Milford (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_dis-
posal system and for the payment of the cost thereof by the munici-
pality with interest, over ,a period not .exceeding forty (40) years,
and the county is then authorized, pursuant to appropriate action
of its Board of Commissioners, to issue its .bonds to provide the
funds therefor, secured 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 necessaryfor the public health and
welfare of the present and future residents of the municipality to
extend, improve and enlarge the said Milford Sewage Disposal System.
in the municipality by the acquisition: and construction of the
so-called Sewer Extensions under the provisions of said Act No, 185 .
and to issue one or more series of county bonds to finance said
Sewer Extensions inanticipation 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 Milford Sewage Dis-
posal District will be affected by the construction of said Sewer
Extensions; 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:
1. The county and the municipality hereby approve the
extension, improvement and enlargement of the Milford Sewage
Disposal System by the acquisition and construction of sewage dis-
posal 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 7Sewer Extensions of the
Milford Sewage Disposal System".
2. The facilities constituting the entire Sewer Exten-
sions 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 ,Sewer Extensions of the
Milford Sewage Disposal System are hereafter sometimes referred
to as the "project."
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 50
years and upwards as the period of usefulness of the project, all
as prepared by the consulting engineers
4. Alter 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 engineers.
(b) Submit to the Board of Commissioners of
Oakland County a resolution, duly approved
and reoced by the Board, providing
for the issuance of bonds in one or more
series in the aggregate principal amount
necessary to finance the acquisition of
the project as shown on Exhibit uB" or
such different amount reflecting 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
hereinafter 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 C .,[nssioners 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
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 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 para-
graph 2 hereof. The project is an improvement, enlargement and
extension of the Milford Sewage Disposal System and the ease Con-
tract shall apply thereto except.. asthe same may be specifically
modified herein for specific application to the project, and, in
particular the provisions of paragraphs 6 and 8 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 munici-
pality 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 shall pay to the county the entire
cost of the project. 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. 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" 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 com-
plete the project, or any part thereof, whether issued at one time
or more than one time. It is assumed that the aggregate principal
amount of all bonds issued will represent the cost of the project.
If funds are available from the 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 municipality
shall be adjusted and limited accordingly. If the municipality
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,
(1) by surrendering to the county, bonds issued hereunder of a like
principal amount maturing in the same Calendar year, with all future
due interest coupons attached thereto, or (2) by payment in cash
- of the principal amount of bonds to be called plus all interest to
the first day on which such amount of bonds can be called and the
amount of premium and charges necessary to call such amount of
bonds on such date.
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 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 muni-
cipality and upon approval by the Oakland County Board of Commis-
sioners, to improve, enlarge or extend the project.
8. If the proceeds of the sale of the original bonds
to be issued by the county to finance the project, or any part
thereof, are for any reason insufficient to complete the 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 paragraph 6 of this contract,
levy a tax in an amount which, taking into consideration estimated
delinquencies in tax collections, will be sufficient to pay its
obligations under this contract becoming due before the time of
the following year's tax collections: PROVIDED, HOWEVER, that if
at the time of making such annual tax levy there shall be other
funds on hand earmarked and set aside for the payment of such
'contractual obligations falling due prior to the next tax 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 para-
graph (2), Section 12 of Act 185, Public Acts of Michigan, 1957, or
any amendments thereto.
10. 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
authorization provided in paragraph (1), subparagraph (D), Section
11 of said Act 185, Public Acts of Michigan, i957 as amendeth
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 collection of
sanitary sewage within the municipality and the transportation of
said sanitary sewage to the treatment facilities of the Milford
System for ultimate disposal. 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 the
Base 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 and
the Base Contract as a-rental for said project,
12, The county and the municipality 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, 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 party 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 munici-
pality and the county further covenant and agree that they will
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
By
Chairman
Sec.; etary
VILLAGE OF MILFORD
By
President
Village Clerk
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EXHIBIT "A"
MILFORD SEWAGE DISPOSAL SYSTEM
EXTENSION NO. I
VILLAGE OF MILFORD
OAKLAND COUNTY, MICHIGAN
MILFORD SEWAGE DISPOSAL SYSTEM - EXTENSION NO. I
ESTIMATE OF COST
INTERCEPTOR SEWER
1847 L. F. 18" Sanitary Sewer @ $ 27.00/1.. F. = $ 49,869.00
1853 L. F. 15" Sanitary Sewer @ 25.00/L. F. = 46,325,00
3387 L. F. 12" Sanitary Sewer @ , 22.00/L. F. = 74,514,00
33 Each @ 600.00/Each = 19,800.00
Lump Sum = 25,000.00
SUB-TOTAL $215,508.00
LATERAL SEWERS
2301 L. F. 10" Sanitary Sewer @ 21.00/L. F. = $ 48,321.00
2344L. F. 6" House Lead @ 12.00/L. F. = 28,128,00
10 Each Manholes Qz_n 600.00/Each = 6,000.00
1 Each Drop Manhole @ 800.00/Each = 800.00
SUB-TOTAL 83,249.00
SUB-TOTAL CONSTRUCTION COST $298.757.00
ENGINEERING = $ 25.850.00
INSPECTION = 9,000.00
LEGAL = 3,650.00
FINANCIAL 3,420.00
ADMINISTRATION = 9,000.00
SOIL BORINGS 1,000.00
EASEMENTS 2,500.00
CONTINGENCY 28,427,00
SUB-TOTAL $381,604.00
Capitalized Interest 7.5% for 18 months on
$430,000.00 48,396.00
TOTAL PROJECT COST $430,000.00
I hereby estimate the period of usefulness of this facility to be
forty (40) years and upwards.
HUBBELL, ROTH & CLARK, INC,
By: George E. *113 C
No. 2249
EXHIBIT "B"
October 1, 1970
MILFORD SEWAGE DISPOSAL SYSTEM
EXTENSION NO. 1
Tentative Schedule of Principal and Interest Payments
Year
Principal
Due May 1
Interest @ 6 1/2%
Due Nov. 1,
Total Principal
And interest
1971
1972
1973 $ 15,000
1974 15,000
1975 15,000
1976 15,000
1977 15,000
1978 15,000
1979 20,000
1980 20,000
1981 20,000
1982 20,000
1983 20,000
1984 20,000
1985 20,000
1986 25,000
1987 25,000
1988 25,000
1989 25,000
1990 25,000
1991 25,000
1992 25,000
1993 25,900
$ 13,975.00 (*)
13,975.00 (i9
13,975.00
13,487.50
13,000.00
12,512.50
12,025.00
11,537.50
11,050.00
10,400.00
9,750.00
9,100.00
8,450.00
7,800.00
7,150.00
6,500.00
5,687.50
4,875.00
4,062.50
3,250.00
2,437.50
1,625.00
812.50
$ 13,975.00 (*)
13,975.00
13,487.50
13,000.00
12,512.50
12,025.00
11,537.50
11,050.00
10,400.00
9,750.00
9,100,00
8,450.00
7,800.00
7,150.00
6,500.00
5,687.50
4,875.00
4,062.50
3,250.00
2,437.50
1,625.00
812.50
$
13,975.00
42,462,50
Al1,487.0
40,512.50
39,537.50
38,562.50
37,587.50
41,450.00
40,150.00
38,850.00
37,550.00
36,250.00
34,950.60
33,050.00
37,187.50
35,562.50
33,937.50
32,312.50
30,687.5
29,062.50
27,427.50
25,812.50
$430,000 $169,487.50 $169,487.50 $768,975.00
(*) Capitalized Interest
EXHIBIT
arrY W/ Horton, Chairman
-
/ James M. Brennan /- William M. Richards '
Mahlon Benson, Jr.
/0
BE IT FURTHER RESOLVED, that the officers of the Board
of Public Works are authorized to execute and deliver such number
rnntract as they may deem advisable.
PUBLIC WORKS COMMITTEE
E. Frank Richardson
Mr. moved the adoption of the Horton
Nays: None. (0)
foregoing resolution. The motion was supported by Mr. Mainland
On roll call the resolution was adopted by the following vote;
Yeas: Aaron, BaWden, Benson, Brennan, Coy, Edwards, Gabler, Grba, Horton,
Houghten, Kasper, Mainland, Mastin, Mathews, O'Brien, O'Donoghue,
Olson, Patnales, Perinoff, Pernick, Powell, Richards, Richardson,
Szabo, Walker, Wilcox. (26)
Absent: Hamlin. (1)
STATE OF MICHIGAN )
ss:
COUNTY OF OAKLAND )
I, the undersigned, the duly qualified and acting County
Clerk of the County of Oakland, do hereby certify that the foregoing
is a true and complete copy of a resolution adopted by the Board
of Commissioners at a regular meeting of said Board, held on the
17 th day of December
on file in my office
, 1970, the original of which is
IN WITNESS WHEREOF, I• have hereunto affixed • my official
signature this 17th day of December , A.D. 1970.
Lynn D. AlTen, County Clerk
STATE OF MICHIGAN )
COUNTY OF OAKLAND )
1, the undersigned, the duly qualified and acting County
Clerk of the County of Oakland, do hereby certify that the foregoing
is a true and complete copy of a resolution • adopted by the Board
SS:
of Commissioners at a-regular
17th day of December.
on file in my office
meeting of said Board, held on the
, 1970, the original of which is
IN WITNESS WHEREOF, 1- have hereunto affixed my official
signature this 17th day o f December A.D. 1970.
Lynn D. Al len, County C erk