HomeMy WebLinkAboutResolutions - 1970.07.02 - 164526-7—(a)
THIS RESOLUTION IS WITH REFERENCE TO THE NOVI TRUNK EXTENSION NO. 1 amanaft,„ wa moo a ki'szunan
OF THE HURON—ROUGE SEWAGE DISPOSAL SYSTEM AND IS TO APPROVE THE PLANS,
SPECIFICATIONS AND THE AGREEMENT BETWEEN THE COUNTY AND THE CITY OF
NOVI.
THE RESOLUTION HAS BEEN APPROVED BY BOTH THE BOARD OF PUBLIC WORKS
AND THE PUBLIC WORKS COMMITTEE -- AND SINCE A COPY HAS PREVIOUSLY BEEN
MAILED TO ALL MEMBERS OF THIS BOARD -- I RESPECTFULLY REQUEST THAT READING
OF SAME BE WAIVED, AND MOVE ITS ADOPTION.
on 7XicepeaSex the zsoe...4 day of \72;02 1970 at
N.,,Qrba Mahlon, Benson, Jr.
arry W.
James M. Brennan
Orton, Chaiiman )
,
O'Donoghtie L Fran'ic Ricrrctson Thomas
Wiliiim"M. Richards.
At a meeting of the Public Works Committee of the Board of Commissioners held at
A-10 o'clock .M., Eastern Standard Time, it was:
As
Moved by 4112e'.0,45 Off, , supported by
that the attached Resolution, having previously been approved by the
Board of Public Works, is approved by this Committee and transmitted
to the Board of Commissioners with the recommendation that same be
adopted.
Yeas:
Nays:
Absent:
Motion
Thursday
o'clock A—M„
At a regular meeting of the Board of Commissionrs of
Oakland County held in the Coissioner's Auditorium In County
Service ARea in the City of Pontiac, Michigan, on
the 2nd day o -F JIJIY 1970, at 9 :30 t _
Eastern Standard TiMe.
PRESENT:
Aaron, Bawden, Benson, Brennan, Coy, Edwards, Gabler, Grba,
Hamlin, Horton, Houghten, Mainland, Mastin, Mathew-s, O'Brien,
O'Donoghue, Olson, Patnales, Perinoff, PeHlick, Powell,
Richardson, Szabo, Walker, Wilcox. (25)
ABSENT:
'Kasper, Richards. (2)
M1sc. 5442
Recommendd by , OK euollc
Mr. Horton
Re: HUON-ROUGE SEWAGE DISPOSAL sysnm
- NOVI TFJ:iNT; EXT ENSION NO. I
Submitted by
Mr. Chairman, Ladies and Gentlemen:
offer the following resolution, which was approved and
recommended by the Board of Public Works:
Resolution proposed by Oakland
County Board of Public Works
with respect to Huren-Rouge
Sewage Disposal System - Novi
Trunk Extension No.
WHEREAS, the Board of Public Works has submitted to this
Board construction plans and specifications for the Huron-Rouge
Sewage Disposal System - Novi Trunk Extension No. 1 and estimates
of the cost and period of usefulness thereof, prepared by Johnson
& Anderson, Inc., registered professional engineers, and by the
engineers in the Department of Public Works all of which have been
approved by the Board of Public Works; and
WHEREAS, the Oakland County Board of Public Works on
June 15, 1970, did approve a form of Contract to be dated May 1,
1970, between the County of Oakland and the City of Novi (formerly
Village of Novi) for the extension ofIthe Huron-Rouge Sewage Dis-
posal System to be known as the Novi Trunk Extension No. 1, and
did authorize the Chairman and Secretary of the Board of Public
Werks to execute said Contract subject to the approval of this
Board of Commissioners; and
WHEREAS, the above mentioned City constitutes the only
party needed to contract with the County for 100% of the cost of
the project; and
WHEREAS, the said Contract has been executed by the said
City.
NOW THEREFORE BE IT RESOLVED, that the said construction
plans and specifications and the estimates of the cost and period
of usefulness be approved and the County Clerk is hereby authorized
to endorse on said plans and specifications and estir 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 May 1, 1970, between the County
of Oakland and the City of Novi (formerly Village of Novi), which
reads as follows:
and between the COUNTY OF OA:KL7,ND, nty corporation y.Vc
HURON-ROUCE 1.)-.10SAL S1:TEM
NOVI TRUNK E'..e.,T,r1.*T -N 3:v.:v.
THIS CONTRACT, made as of tais first day of May, 1970, by
(hereinafter called the "county"), by and through its Board of Public
Works (hereinafter referred to as the '100ard"), party of the first
part, and the CITY OF NOVI (formerly the Village of Novi), a home
rule city corporation in the County of Oakland (hereinafter called
the "municipality), party of the second part:
WITNESSETH:
WHEREAS, the Oakland County Board of Supervisors by
resolution, Misc. No 3850, adopted September 11, 1961, as amended
by resolution, Misc. No 4095, adopted December 20, 1962, did approve
of establishment of the Huron-Rouge Sewage Disposal System to serve
the Huron-gouge Sewage Disposal District within which district are
located parts of the City of Novi and Township of Novi and all of
the City of Walled Lake; and
WHEREAS, pursuant to the Huron-Rouge Sewage Disposal
System Contract, dated April 20, 1962; between the County of Oakland
and the Village of Novi and the Township of Novi, municipal cor-
porations in said County of Oakland, the said county, acting thru
its Department of Public Works, did acquire the sewage d
facilities comprising the original Huron-Rouge SzA:17.
System and did.finanm such acquieitión by the j.rsn of in •
anticipation of payments to he made by said municipal carp
to the county in accordance with 1i7. .ylu'Aiona of said, CQva-c.t,
(herein referred to as the "Base Contract"); and
Act No, 185 of the Michigan Public Acts of 1 957,
aTac.1, grants to the bcrd of 7-Jrli ,z .•orks in any county
having a Department of Public Works the to extend any system
-acquired pursuant thereto;
WHEREAS, it is now necessary to extend, improve and
enlarge said Huron-Rouge Sewage Disposal System by construction of
retention facilities and a trunk sewer with necessary appurtenances
to enable the municipality and the coUnty to serve an equivalent of
7800 additional persons residing within the city through the faci-
lities of the Huron-Rouge Sewage Disposal System all pursuant to
the provisions of Act No. 185 of the Michigan Public Acts of 1957,
as amended, and to issue bonds to finance such extension, improve-
ment and enlargement in anticipation of the collection by the county
of amounts to become due under this Contract between the county and
the municipality, parties hereto; and
WHEREAS, no other municipality in the Huron-Rouge Sewage
Disposal District is to participate at this time in the construction
of said retention facilities and trunk sewer; and
WHEREAS, in order to issue'i.such bonds, it is necessary
that the county and the municipality, parties hereto, entet into
this contract; and
WHEREAS, the Department of ',,Public Works (hereinafter
sometimes referred to as the "DPW") has obtained plans, soecifica-
tions and estimates of the cost and period of usefulness of said
.facilities, prepared by Johnson & Avjdersony Inc., registered pro-
fessional engineers fJ:
2-
"consulting engineers"), and a map showing the approximate location
of said facilities, which estimates of eOst and period of usefulness
are attached hereto as Exhibit "B" and by this reference made a
part hereof, and which map is attached hereto as Exhibit 'A" and by
this reference made a part hereof
THEREFORE, IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES
HERETO, as follows:
The county and the municipality hereby approve the
extension, improvement and enlargement Of the Huron-Rouge Sewage
Disposal System by the acquisition and Construction of retention
facilities and a trunk sewer with necessary appurtenances to serve
the municipality, under and pursuant to the provisions of Act No
185 of the Michigan Public Acts of 1957; as amended. The said
retention facilities and trunk sewer tolbe acquired and constructed
are hereby designated the "Huron-Rouge Sewage Disposal System -
Novi Trunk Extension No, 1".
2. The facilities constituting the Novi Trunk 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 Huron-Rouge Sewage Disposal
System - Novi Trunk Extension No 1 is hereinafter sometimes
referred to as the "project".
3. The county and the municipality hereby approve the
plans and specifications for the project, and approve and adopt
the estimate of the total cost of the project in the amount shown
on Exhibit "B" attached hereto, and the estimate of 20 years and
upwards as the period of usefulness of the project, all as prepared
by the consulting engineers,
F-2
-3-
4. After the execution cT tl -rti 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 cons ulting engineers.
(b) Submit to the Board of cr:issioners 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
necessary to finance the acquisition of
the project as shown onExhibit "B" 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 tolbe 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 nsbers elect of the
Board of Commissioners, by the full faith and
credit of the County of Oakland
(c) After the Board of Ccmy4ssioners of Oakland
County has adopted the bond resolution, the
board will take all necessary procedures to
obtain the approvals ncessary 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 constructed
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 indivi-
dual property owners and users thereof, unless by special
arrangement between the board and the municipality. The responsi-
bility 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. 1 The county shall not be
obligated to acquire or construct any facilities other than those
designated in pL7,.r3grph 2 hereof. The pro .iect is
enlargement and extension of the HurOn-Rouge 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 5 through 7, (except
for the population capacity and percentage allocations therein) and
15 through 23 of the Base Contract shall apply hereto as though set
forth in full herein.
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 thereof, 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 therbc7f4
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, 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 ofbonds, then the obligation of the munici-
pality 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 municipalityHmay 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 prin-
cipal 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 ponds can be called and the
amount of premium and charges necessary to call such amount of
bonds on such date.
000,
7. In the event that the municipality shall fail for any
reason to pay to the board at the tjesss specified, the esolsnts 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 official charged with
disbursement to the municipality of funds derived from the state
sales tax levy under the provisions of Act No 167 of the Michigan
Public Acts of 1933, as amended, and returnable to the municipality
pursuant to the Michigan Constitution Of 1963, is by these presents
specifically authorized by the municipality to withhold sufficient
funds derived from such sales tax levy and returnable to the muni-
cipality as may be in default, (but not to exceed in any one calendar
year 25% of the amount of such default) and to pay said sums so
withheld to the board to apply on the Obligation of said 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 of 1963, the purpose of this
provision being solely to voluntarily authorize the use of such funds
to meet past due obligations of the municipality. 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 reecuired
to be made by it pursuant to the terms of this contract are to be
pledged for the payment of principal of and interest on bonds to be
issued by the county, and the municipality covenants and agrees that
SO it will make its required pam ,7,nts to board rrcptly and at the
times herein spe::,!.:i.fied, without regard as to whether the prolect
herein cont. 4, --",11„. COMp:UF:CA or placed in operation
8. After ,;:pletion 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
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 Oakland County Board of Commissioners, to
improve, enlarge or extend the project.
9. 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 outstandin. In lieu of the issuancesuchsuchh
-9-
additional bonds, any other method may be agreed upon by the county
and the municipality to provide the necessary funds to complete the
project.
10. The municipality, pursUant to the authorization of
paragraph (2), Section 12 of Act 185, 1Public 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
funds on hand earmarked and set aside
levy there shall be other
for the payment of such
contractual obligations falling 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.
11. 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 (b), Section
11 of said Act 185, Public Acts of MiChigan, 1957, as amended..
rt a.
12. The county, subject to the terms of this Contract
and the Ease Contract, shall operate and maintain the said Novi
Trunk Extension No 1. The municipality consents to the esta-
blishment and location of the project Within its corpate limits
and consents to the use of the streets alleys and public places of
the municipality for the location, construction, repair, replacn
maintenance and use of the facilities of the project.
13. The county and the municipality recognize that the
holders from time to time of the bonds 1 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 muni-
cipality and the county further covenant and agree that they will
comply with their respective duties and obligations under the t
of this contract proD .:::,tly, 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 bon, the seCurity therefor, or the p.;cc,mçt
payment of principal and interest thereon. It is hereby cleclar
that the terms of this contract in as fa.r as they pertain to the
security of any such bonds, shall be omF,a, to be for the
of the holders of said bonds.
14. This contract shall hoc me 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 cia.Q of this contract, This
contract may be executed in several counterparts.
The provisions of this contract shall be in full force
and effect and binding upon the successors and assigns of the
parties hereto.
IN WITNESS WHEREOF, the parties hereto have caused this
contract to be executed and delivered by their respective duly
authorized officers, all as of the clay and year first above
written.
COUNTY OF OAKLAND
By Its Board of Public Works
By
Chairman
BY
Secretary
CITY OF NOVI
By
Mayor
By
City Clerk
F /
_
-
•
E)(IST.
n
SEWAGE
RE7F.:N r .4*: RESER\'
• •
P.. P.
P 3E &71.' DISPOSAL SYSTEM
NOV! TR.
.P7P
EXTENSION NO.
EXHIBT
1- ,ii2,020.00
195,250,00
:7,600.0 ,J
42,0D0.00
45,00C). 00
, .
$1
S
55,71
2
,
= $2,293 , 765., 01.,^)
, lUi aUU
= , $1 1q 1,2 00.00
$1,0:31 1230. 30
• By /
1.-TITZCN-70T_TCE SEWAGE DISPOSAL SYSTEM
NOVI TRUNK EXTENSION NO. 1
ESTIMATE OF COST
15 , R8.6 T.. F. 36" Sanitary Sewer
7S5 L.F. 36" Sewer Tunnel
4,120 LE. 12" 6.tnAary Sewer
8•0•C. 3" S sewer
3,500 L.F. 6" House Lead
45 Ea. Ma nholes
17 Ea, Manholes
Stream Reroute
70. 0D/L.
250. CO/T,.
32.00/L. F,
22. 00/L.F.
12.00/L.F.
1,000.00/Ea.
800.00/Ea.
Lump Sum
Sub-Total = $1,584,b70.00
Retention Reservoir System Complete with Roof =.5 273,430.0
• Sub-Total Construction Cost = $1,857,500,00
Er..7,1.14erIng
trw soot ion
Legal
7inarcia ,
Administration
Soil Borings
Site Acquisition
Easements
Contingency
Sub-Total
Less 55% Grant. based on eligible costs only ($2,014,655., 00)
Sub-Total
Less $100,000.00 cash advance by City of Novi •
Capitalized Interest, 8.0% for 18 months on
$1,240,000.00 bond issue
Total Project Cost = $.1,240,000.00
I hereby the useful life of substantial portions of the
above project to be 20 years and upwards.
JOHNSON AND ANDERSON, INC,
Melvin C. Strader, P.1% 124 7 0
EXHIBIT "B" .
$ 65,000
75,000
100,000
100,000
125,000
125,000
150,000
150,000
175,000
175,000
$1,240,000
June 1, 1 9 70
HURON-ROUGE SEWAGE DISPOSAL SYSTEM
NOVI TRUNK EXTENSION NO. I
TENTATIVE SCHEDULE OF PRINCIPAL AND INTEREST PAYMENTS
Year
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
Principal Interest @ 8 °/c, Total Principal
Due May I Due May I Due Nov I and Int.erest
$ 49,600(*)
49,600(*)
49,600
47,000
44,000
40,000
36,000
31,000
26,000
20,000
14,000
7,000
$314,600
49,600(*)
49,600 $ 49,600
47,000 161,600
44,000 166,000
40,000 • 184,000'
36,000 176,000
31,000 192,000
26,000 132,000
20,000 196,000
14,000 134,000
7,000 196,000
182,000
$314,600 $1,869,200
(*) Capitalized Interest
EXHIBIT "C"
William m.
,y /
E /Frank: Richaifd.son
Mahlon Benson, Jr.
4
James M. Brennan
_ — Thomas H. 0 1 Donoghue
/-
N.
BE IT FURTHER RESOLVED, that the officers of the Board
of Public Works are authorized to eute and deliver such 1::1
of original copies of said Contract as they may deem advisable.
f:/\, 4;7- , . Hari;-7. W. 1-jdrton, Chairn)an.
Supported by Mr COy
AYES:
O'Brien, O'Donoghue, Oison, Patnales, Prinoff, Pernick, Powell,
Richardson, Szabo, Walker, Wilcox, Aaron, Benson, Coy,
Edwards, Gabler, Grba, Hamlin, Horton, iouOten, Mainland, mastin,
Mathews. (24)
NAYS:
Brennan. (1)
ABSENT:
Kasper, Richards. (2)
Motion carried.
official signature this _2nd day of , A.P. 1970. July
STATE OF MICKIGAN )
) 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 cow Of a resolution adopted
at a Regular meeting of the Oakland County Board of Ccmj
missioners, hed on the 2nd day Of Jul y , 1970, the
original of which is on file in my office.
IN WITNESS WHEREOF, I have hereunto affixed my
Lynn D. Al len, County Clerk