HomeMy WebLinkAboutResolutions - 1990.06.28 - 16833Miscellaneous Resolution # 90153 June 28 , 1990
BY: PLANNING & BUILDING COMMITTEE
Larry Crake, Chairperson
IN RE: DRAIN COMMISSIONER
RESOLUTION TO AUTHORIZE EVERGREEN AND
FARMINGTON SEWAGE DISPOSAL SYSTEM POLLUTION
CONTROL FACILITIES CITY OF LATHRUP VILLAGE
EXTENSION NO 1 CONTRACT
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS, the County of Oakland (the "County") has
heretofore established and constructed and acquired the Evergreen
Sewage Disposal System pursuant to the rEvergreen Sewage Disposal
System Agreement, dated November 10, 1958, as amended, to serve
the Evergreen Sewage Disposal District, within such district lies
all of the.City of Lathrup Village (the "City"); and .
WHEREAS, the County has heretofore established and
constructed and acquired the Farmington Sewage Disposal System
pursuant to the Farmington Sewage Disposal System Agreement,
dated November 1, 1957, as amended; and
WHEREAS, the State of Michigan Department of Natural
Resources designated the areas and districts served by the
Evergreen Sewage Disposal System and the Farmington Sewage
Disposal System as a single plan of study area for the purposes
of Step I Facilities Planning; and
WHEREAS, the County established under and pursuant to
Act No 342, Public Acts of Michigan, 1939, as amended ("Act
342"), a system of sewage disposal improvements and services to
serve the Evergreen Sewage Disposal District and the Farmington
Sewaae Disposal District, which system as so established was
designated as the "Evergreen and Farmington Sewage Disposal
System" and the Oakland County Drain Commissioner was designated
and appointed as the "county agency" for the Evergreen and
Farmington Sewage Disposal System with all the powers and duties
with respect to said system as are provided by law and especially
by Act 342; and
WHEREAS, it is now necessary to improve, enlarge and
extend the Evergreen and Farmington Sewage Disposal System by the
acquisition and construction of the hereinafter described
Evergreen and Farmington Disposal System Pollution Control
Facilities City of Lathrup Village Extension No. 1; and
WHEREAS, by the terns of Act 342, the County and the
City are authorized to enter into a contract for the acquisition,
construction and financing of the Evergreen and Farmington Sewage
Disposal System Pollution Control Facilities City of Lathrup
Village System Extension No. 1 consisting of sewage disposal
facilities to serve the City and for the payment of the cost
thereof by the City, with interest, and the County is then
authorized to issue its bonds to provide the funds necessary
therefor; and
WHEREAS, there has been submitted to this Board of
Commissioners a proposed contract between the County, by and
through the County Drain Commissioner, County Agency, party of
the first part, and the City, party of the second part (the
"Contract"), which Contract provides for the acquisition,
construction and financing of the Evergreen and Farmington Sewage
Disposal System Pollution Control Facilities City of Lathrup
Village Extension No, 1 (the "Project"), and which Contract is
hereinafter set forth in full; and
WHEREAS, there have also been submitted for approval
and adoption by this Board of Commissioners, preliminary plans,
specifications and estimates of the cost and period of usefulness
of the Project; and
WHEREAS, the Contract provides for the issuance
hereafter of bonds by the County to defray part of the cost of
the Project, said bonds to be secured by the contractual
obligations of the City to pay to the County amounts sufficient
to pay the principal of and interest on the hereafter authorized
bonds and to pay such paying agent fees and other expenses as may
be incurred on account of said bonds; and
.WHEREAS, this Board of Commissioners desires to proceed
with the establishment of this Project and the approval and
execution of the Contract to acquire, construct and finance the
Project as provided in the Contract.
THEREFORE , BE IT RESOLVED BY THE BOARD OF COMMISSIONERS
OF OAKLAND COUNTY, MICHIGAN, as follows:
1. ESTABLISHMENT OF SYSTEM AND DESIGNATION OF COUNTY
AGENCY. This Board of Commissioners by majority vote of its
members-elect does hereby authorize and direct that there be
established, and there is hereby established, under and pursuant
to Act 342, sewage disposal facilities to be known as the
"Evergreen and Farmington Sewage Disposal System Pollution
Control Facilities City of Lathrup Village Extension No. 1,"
which shall consist of enlargements, additions and improvements
to the Evergreen and Farmington Sewage Disposal System, as
specified and to be located as shown in Exhibit A to the
Contract; that the Project shall serve the City; that the Oakland
County Drain Commissioner is hereby designated and appointed as
the "County Agency" for the Evergreen and Farmington Sewage
Disposal System Pollution Control Facilities City of Lathrup
Village Extension No. 1; that the County Agency shall have all
the powers and duties with respect to the Evergreen and
Farmington Sewage Disposal Pollution Control Facilities City of
Lathrup Village Extension No. 1 as are provided by law and
especially by Act 342; and that all obligations incurred by the
County Agency with respect to the Evergreen and FaL.aington Sewage
Disposal System Pollution Control Facilities City of Lathrup
Village Extension No. 1, unless otherwise authorized by this
Board of Commissioners, shall be payable solely from funds
derived from the City as hereinafter provided.
2. PLANS AND SPECIFICATIONS - ESTIMATES OF PERIOD OF
USEFULNESS AND COST. The preliminary plans and specifications
for the Project and the estimates of $13,550,000 as the cost
thereof and of 40 years and upwards as the period of usefulness
thereof, as submitted to this Board of Commissioners be and the
same are hereby approved and adopted.
3. APPROVAL OF CONTRACT. The Evergreen and Farmington
Sewage Disposal System Pollution Control Facilities City of
Lathrup Village Extension No 1 Contract dated as of January 1,
1990, between the County, by and through the County Drain
Commissioner, party of the first part, and the City, party of the
second part, which Contract has been submitted to this Board of
Commissioners, be and the same is hereby approved and adopted,
and the County Drain Commissioner is hereby authorized and
directed to execute and deliver the same for and on behalf of the
County, in as many counterparts as may be deemed advisable, after
the Contract has been executed by the appropriate officials of
the City. The Contract reads as follows:
EVERGREEN AND FARMINGTON SEWAGE DISPOSAL SYSTEM
POLLUTION CONTROL FACILITIES
CITY OF EATHRUP VILLAGE
EXTENSION NO. 1 CONTRACT
THIS CONTRACT, made and entered into as of the 1st day
of January, 1990, by and -between the COUNTY OF OAXLAND, a county
corporation in the State of Michigan (hereinafter sometimes
referred to as the "County"), by and through its Drain Commis---
sioner, County Agency, party of the first part, and the CITY OF
-14 LATHRUP VILLAGE; a home rule city corporation ih said county and
state (hereinafter sometimes referred to as the "City"), party of
the second part.
WITNESSETH:
WHEREAS, the Oakland County Board of Supervisors by
resolution, Misc. No. 3269, adopted August 12, 1957, as amended
by resolution, Misc. No. 3435, adopted October 13,- 1958, did
approve the establishment of the Evergreen Sewage Disposal System
(herein called the "Evergreen System") to serve the Evergreen
Sewage Disposal District (herein called the "Evergreen Dis-
trict'), within which Evergreen District are included areas in
each of the municipal corporations hereinafter named; and
WHEREAS, pursuant to the Evergreen Sewage Disposal
System Agreement, dated November 10, 1958, as amended by amenda-
tory agreements dated December 22, 1958 and February 9, 1959, all
between the County and the Cities of Southfield, Birmingham,
Bloomfield Hills, Lathrup Village and Troy, the Village of
Westwood (now Village of Beverly Hills), and the Townships of
Bloomfield and Pontiac (now City of Auburn Hills), municipal
corporations in the County, the County acting through its
Department of Public Works, did acquire the original Evergreen
System and did finance such acquisition by the issuance of bonds
in anticipation of payments to be made by said municipal
corporations to the County in accordance with the provisions of
said Agreement, as amended (herein referred to as the "Evergreen
Agreement"); and
WHEREAS, the Oakland County Board of Supervisors by
resolution, Misc. No. 4115, adopted March 6, 1963, did enlarge
the Evergreen District to include all of the Village of Franklin
and all of the Village of Bingham Farms within the area to be
served by the Evergreen System; and
WHEREAS, the Oakland County Board of Supervisors by
resolution, Misc. No. 3270, adopted August 12, 1957, as amended
by resolution, Misc. No. 3339, adopted January 24, 1958, did
approve the establishment of the Farmington Sewage Disposal
System (herein called the "Farmington System") to serve the
Farmington Sewage Disposal District (herein called the
"Farmington / District") within which Farmington District are
inc'luded areas in each of the municipal corporations hereinafter
named; and
WHEREAS, pursuant to the Farmington Sewage Disposal
System Agreement, dated November 1, 1957, as amended by amenda-
tory agreements dated December 22, 1958 and February 9, 1959, all
between the County and the Cities of Southfield and Keego Harbor
and the Townships of West Bloomfield and Farmington (now City of
Farmington Hills), municipal corporations in said County of
Oakland, the County acting through its Department of Public
Works, did acquire the original Farmington System and did finance
such acquisition by the issuance of bonds in anticipation of
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payments to be made by said municipal corporations to the County
in accordance with the provisions of said Agreement, as amended
(herein referred to as the "Farmington Agreement"); and
WHEREAS, by annexation of part of the former Township of
Farmington theCity of Farmington has become a user of the
Farmington System and has area included in the Farmington
District: and
WHEREAS, by contractual relationships with members of
the Farmington System, the City of Sylvan Lake and the City of
Orchard Lake Village have become users of the Farmington System;
and
WHEREAS, the State of Michigan Department of Natural
Resources designated the areas and districts served by the
Evergreen System and the Farmington System as a single plan of
study area for the purposes of Step I 'acilities Planning and
determined that there is a need to obtain studies, reports, plans
and estimates for the abatement of pollution, control of
pollutants and polluting discharges, and the relief of both the
Evergreen System and the Farmington System; and
WHEREAS, the County established under and pursuant to
Act No. 342, Public Acts of Michigan, 1939, as amended, a system
of sewage disposal improvements and services to serve the areas
and the districts heretofore designated and described in Oakland
County, Michigan, in Resolutions No, 3269, 3435 and 4115 as the
Evergreen District and in Resolutions No. 3270 and 3339 as the
Farmington District, which system as so established was desig-
nated as the "Evergreen and Farmington Sewage Disposal System"
(herein called the "System") and the Oakland County Drain
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Commissioner was designated and appointed as the "County Agency'
for the system with all the powers and duties with respect to the
System as are provided by law and especially by said Act 342; and
WHEREAS, under and subject to the terms of Act 342, the
County is authorized, through the County Agency, to acquire and
construct the project consisting of sewage disposal improvements
and pollution control facilities hereinafter described as part of
the System, the County and the City are authorized to enter into
a contract, as hereinafter provided, for the acquisition and
construction of the project and for financing all or part of the
cost thereof by the issuance of bonds by the County secured by
the pledge of the full faith and credit of the City to pay such
cost with interest to the County in installments extending over a
period not exceeding forty (40) years, and the County is autho-
rized to issue such bonds and, if authorized by majority vote of
the members-elect of its Board of Commissioners, to pledge its
full faith and credit for the payment of such bonds and the
interest thereon; and
WHEREAS, the City is in urgent need of such sewage
disposal improvements and pollution control facilities to provide
the means of collecting and disposing of sanitary sewage of the
City, in order to abate pollution of the waters of the City and
thus to promote the health and welfare of the residents thereof,
which improvements and facilities would likewise benefit the
County and its residents, and the parties hereto have concluded
that such improvements and facilities can be most economically
and efficiently provided and financed by the County through the
exercise of the powers conferred by Act 342, and especially
Sections 5a, 5b and Sc thereof; and
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WHEREAS, the County and the City desire to proceed with
acquisition and construction of facilities using a combination
of Federal and state grant moneys and local funds as needed for
the proposed project as shown on Exhibit "A" hereto attached (the
'Project"), for which Project contractual arrangements for
design, construction and financing are required only with the
City among all of the municipalities named herein above as
participants in and users of the System; and
WHEREAS, the County Agency has obtained preliminary
plans for the Project and also an estimate of $13,550,000 as the
total cost of the Project and an estimate of forty (40) years and
upwards as the period of usefulness thereof, all of which have
been prepared by Hubbell, Roth & Clark, Inc. and Giffels-Webster
Engineers, Inc. (hereinafter sometimes referred to as the
consulting engineers) and are submitted herewith for approval by
the Board of Commissioners of the County and the City Council of
the City and will be placed on file in the office of the County
Agency, said estimates being set forth in Exhibit "B" hereunto
attached; and
WHEREAS, in order to provide for the acquisition and
construction of the Project by the County and the financing of
the cost thereof by the issuance of County bonds, and for other
related matters, it is necessary for the parties hereto to enter
into this contract.
THEREFORE, IN CONSIDERATION OF THE PREMISES AND THE
COVENANTS OF EACH OTHER, THE PARTIES HERETO AGREE AS FOLLOWS:
1. The parties hereto do hereby approve and agree to
the establishment, acquisition, construction and financing of the
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Project, as herein provided, under and pursuant to Act 342. The
City, by way of compliance with Section 29, Article VII, Michigan
Constitution of 1963, consents and agrees to the establishment of
the System and the location of the Project within the corporate
boundaries of the City and to the use by the County of its
streets, highways, alleys, lands, rights-of-way or other public
places for the purpose and facilities of the system and the
Project and any improvements, enlargements or extensions thereof,
and the City further agrees that, in order to evidence and
effectuate the foregoing agreement and consent, it will execute
and deliver to the county such grants of easement, right-of-way,
license, permit or consent as may be requested by the County.
2. The Project shall consist of the facilities shown
on Exhibit A which is hereunto attached and which is hereby made
a part hereof, and as are more particularly set forth in the
preliminary plans which have been prepared and submitted by the
consulting engineers, which plans are on file with the County
Agency and are hereby approved and adonted. The Project shall be
acquired and constructed substantially in accordance with the
said preliminary plans and in accordance with final plans and
specifications to be prepared and submitted by the consulting
engineers, but variations therefrom which do not materially
change the location, capacity or overall design of the Project,
and which do not require an increase in the total estimated cost
of the Project, may be permitted on the authority of the County
Agency. Other variations or changes may be made if approved by
the County Agency and by resolution of the City Council of the
City and if provisions required by Paragraph 8 hereof are made
for payment or financing of any resulting increase in the total
estimated cost. The estimate of cost of the Project and the
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estimate of period of usefulness thereof as set forth in Exhibit
are likewise hereby approved and adopted.
3. The County Agency shall take or cause to be taken
all actions required or necessary, in accordance with Act 342, to
procure the issuance and sale of bonds by the County, in one or
more series, in whatever aggregate principal amount is necessary
to be so financed to defray that part of the total cost to the
County of the Project which is in excess of funds available from
Federal and/or State grants or other sources. Such bonds shall
be issued in anticipation of, and be payable primarily from, the
payments to be made by the City to the County as provided in this
contract, and shall be secured secondarily, if so voted by the
Board of Commissioners of the County, by the pledge of the full
faith and credit of the County, and the said bonds shall be
payable in annual maturities the last of which shall be not more
than forty (40) years from the date thereof.
4. The County Agency shall obtain and accept an offer
of grant by the EPA/DNR for the Project, proceed to take
construction bids for the Project and, subject to the sale and
delivery of said bonds, enter into construction contracts with
the lowest responsible bidder or bidders, procure from the
contractors all necessary and proper bonds, cause the Project to
be constructed within a reasonable time, and do all other things
required by this contract and the laws of the State of Michigan.
All certificates for required payments to contractors shall be
approved by the consulting engineers before presentation to the
County Agency and the latter shall be entitled to rely on such
approval in making payment.
The County hereby agrees that it will secure and main-
tain, or cause to be secured and maintained, during the period of
construction adequate prooerty damage and public liability
insurance covering all facilities to be constructed pursuant to
this contract. All policies and memoranda of insurance shall
provide that the County and the City shall be insured parties
thereunder and shall contain a provision requiring that the City
be notified at least ten days prior to cancellation thereof. One
copy of each policy and memorandum of insurance shall be filed
with the City.
5. It is understood and agreed by the parties hereto
that the System is to serve the City and not the individual
property owners and users thereof, unless by special arrangement
between the County Agency and the City. It is the responsibility
of the City to require connection to and use of the facilities of
the System and to provide such additional facilities, as may he
• needed, so that the City shall require connection to and use of
the facilities and shall cause to be constructed and maintained,
directly or through the County, any such necessary additional
facilities. The County shall not be obligated hereunder to
acquire or construct any facilities other than those designated
in paragraph 2 hereof.
6. The City shall pay to the County the total cost of
the Project, less such funds as may become available from Federal
and/or State grants or from other sources. The total cost for
this purpose shall include, in addition to the items of the
nature set forth in Exhibit B (represented by the principal
amount of the bonds to be issued by the County plus such funds as
may become available from Federal and/or State grants or other
sources), all interest payable by the County on said bonds and
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all paying agent fees and other expenses and charges (including
the County Agency's administrative expenses) which are payable on
account of said bonds (such fees, expenses and charges being
herein called "bond service charges"). Such payments shall be
made to the County in annual or semiannual installments which
shall be due and payable at least thirty days prior to the day of
the month specified in the County bonds as the annual principal
maturity date thereof or semiannual interest date. Such
installments shall be so paid in each year, if any principal
and/or non-capitalized interest on said bonds falls due during
the twelve-month period beginning on such principal maturity date
in said year, and the amount of each installment so due and
payable shall be at least sufficient to pay all such principal
and/or interest thus falling due and all bond service charges
then due and payable. The County Agency shall, within thirty
days after delivery of the County bonds to the purchaser, furnish
the City Treasurer with a complete schedule of the principal and
interest maturities thereon, and the County Agency shall also, at
least thirty days before each payment is due to be made by the
City, advise the City Treasurer of the amount payable to the
County on such date. If the City fails to make any payment to
the County when.due, the same shall be subject to a penalty of 1%
thereof for each month or fraction thereof that such amount
remains unpaid after due. Failure of the County Agency to
furnish the schedule or give the notice as above required shall
not excuse the City from the obligation to make payment when dee.
Such payments shall be made by the City when due whether or not
the Project has then been completed or placed in operation. In
the event that additional County bonds shall be issued under the
authority of this contract, to defray a part of the cost of the
Project, the foregoing obligations shall apply to such part of
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the cost and to said additional bonds insofar as appropriate
thereto.
7. The City may pay in advance any amount payable to
the County pursuant to this contract and in that event shall be
credited therefor on future-due amounts as may be agreed by the
parties hereto. The City may also pay in advance any one or more
installments or any part thereof (a) by surrendering to the
County any of said County bonds of like principal amount or (b)
by paying to the County in cash the principal amount of any
County bonds which are subject to redemption prior to maturity,
plus all interest thereon to the first date upon which such bonds
may be called for redemption, and plus all applicable call
premiums and bond service charges, and in such event the County
Agency shall call said bonds for redemption at the earliest
possible date; provided, however, that such advance cash payment
and credit therefor shall be limited in amount at any given time
to the amount of bonds available for redemption by call within
the twelve-month period succeeding the date of the adVance cash
payments. The installments or parts thereof so prepaid shall be
deemed to be the installments or parts thereof falling due in the
same calendar year as the maturity dates of the bonds surrendered
or called for redemption and bonds so surrendered or redeemed
shall be cancelled.
S. In the event that it shall become necessary to
increase the estimated cost of the Project as hereinbefore
stated, or if the actual cost of the Project shall exceed the
estimated cost, whether as the result of variations or changes
permitted or needed to be made in the approved plans or other-
wise, then (without execution of any further contract or
amendment of this contract) the City Council, by resolution
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adopted within fifteen days after the receipt of construction
bids, may direct that a portion of the Project not yet acquired
or constructed and not under contract to acquire or construct be
deleted sufficient to reduce the total cost to an amount which
shall not exceed the total estimated cost of the Project, as
hereinbefore stated, by more than 5%; provided that such deletion
shall not materially change or terminate the eligibility of the
Project for Federal and/or state grants, or change the general
scope, overall design, and purpose of the project. In the
adoption of such a resolution the City shall pay or procure the
payment of the increase or excess up to said 5% in cash or shall
agree that County bonds in an increased or additional amount
shall (upon adoption of an authorizing resolution therefor by the
Board of commissioners) he issued to defray such increased or
excess cost, to the extent that funds therefor are not available
from other sources. Where the effect of any increase in the
estimated cost of the Project or of any excess - of actual cost
over estimated cost would be to cause the total cost of the
Project to exceed by more than 5% its total estimated cost as
hereinbefore stated, the County shall not enter into any new or
further contract or change order for acquisition or construction
of the Project or any part thereof or incur any new or further
obligation for or pay any new or further item of cost thereof
until the City Council shall have adopted a resolution approving
such increase or excess and agreeing that the same (or such part
thereof as is not available from other sources) shall he paid or
its payment procured by the City in cash or be defrayed by the
issuance of increased or additional County bonds in anticipation
of increased or additional payments agreed to be made by the City
to the county in the manner hereinbefore provided; provided,
further, that the adoption of such resolution by the City Council
shall not be required prior to or as a condition precedent to the
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issuance of additional bonds by the County, if the County has
previously issued or contracted to sell bonds to pay all or part
of the cost of the Project and the issuance of the additional
bonds is necessary (as determined by the county) to pay such
increased, additional or excess costs as are essential to comple-
tion of the Project according to the plans as last approved prior
to the time when the previous bonds were issued or contracted to
be sold.
9. In the event that the actual cost of the Project is
less than the total estimated cost, then any surplus available to
the county from the sale of County bonds shall, at the option of
the City Council, be used either to improve, enlarge or extend
the System or to apply upon future payments due to the County, or
to redeem bonds maturing or callable for payment within one year
or to purchase bonds of any maturity on the open market, provided
that such surplus shall be used to improve, enlarge or extend the
System only if authorized by the Board of Commissioners. Any
such surplus may, for the purpose of improving, enlarging or
extending the System, be supplemented by cash payments to be made
by the city or by the proceeds of additional County bonds, or
such improvements, enlargements or extensions may be financed
entirely from such cash payments, where authorized by the City
Council. Where any such surplus is used to redeem or purchase
bonds, the same shall be cancelled, and the payments thereafter
required to be made by the City to the County shall be reduced so
as to reflect the resulting saving of interest and the payment
recuired to be made by the City in the calendar year of the
stated maturity of said bonds shall be reduced by the principal
amount thereof.
10. should the City fail for any reason to pay the
County at the times specified, the amounts herein required to be
paid, the City does hereby authorize the State Treasurer or other
official charged with the disbursement of unrestricted state
funds returnable to the City pursuant to the Michigan constitu-
tion to withhold sufficient funds to make up any default or
deficiency in funds. If the full faith and credit of the County
are pledged for the prompt payment of the principal of and
interest on the bonds to be issued by the County and if the
County is required to advance any money by reason of such pledge
on account of the delinquency of the City, the County Treasurer
is hereby authorized to notify the State Treasurer to deduct the
amount of money so advanced by the County from any unrestricted
moneys in the state Treasurer's possession belonging to the City
and to pay such amount to the County.
The foregoing shall not operate to limit the county's
right to pursue any other legal remedies for the reimbursement of
moneys advanced on account of the default of the City.
11. The City; pursuant to the authorization of Section
5a of Act No. 342, 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 levy a tax in an amount which,
taking into consideration estimated delinquencies in tax collec-
tions, 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 its
annual tax levy, the City shall have on hand cash or other funds
which have been set aside and pledged or are budgeted or other-
wise available for the payment of such contractual obligations
falling due prior to the time of the next tax collection, then
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the annual tax levy may he reduced by such amount. Taxes levied -
by the City shall be without limitation as to rate or amount.
The City Council each year, at least 90 days prior to the final
date provided by law for the making of the annual tax levy, shall
submit to the county Agency a written statement setting forth the
amount of its obligations to the County which. become due and
payable under this contract prior to the time of the next follow-
1
mg year's tax collections, the amount of the funds which the
City has or will have on hand or to its credit in the hands of
the County which have been or will be set aside and pledged for
payment of said obligations to the county, and the amount of the
City taxes next proposed to be levied for the purpose of raising
money to meet such obligations. The county Agency shall promptly
review such statement and, if he finds that the proposed tax levy
is insufficient, he shall so notify the City Council and the City
hereby covenants and agrees that it will thereupon increase its
levy to such extent as may be required by the County Agency.
12. No change in the jurisdiction over any territory in
the City shall •impair in any manner the obligations of this
contract or affect the obligations of the City hereunder. In the
event that all or any part of the territory of the City is incor-
porated as a new city of village or is annexed to or becomes a
part of the territory of another municicality, the municipality
into which such territory is incorporated or to which such terri-
tory is annexed shall assume the proper proportionate share of
the contractual obligations (including the pledge of full faith
and credit) of the City, which proper proportionate share shall
be fixed and determined by the County Agency and shall be binding
upon all parties concerned unless, within sixty (60) days after
such incorporation or annexation becomes effective, the governing
body of the municipality into which such territory is incorpo-
rated or to which such territory is annexed and the City Council
of the City, by mutual agreement and with the written approval of
the County Agency, shall fix and determine such proper
proportionate share. The County Agency, prior to making such
determination, shall receive a written recommendation as to the
proner proportionate share from a committee composed of one
representative designated by the City Council of the City, one
designated by the governing body of the new municipality or the
municipality annexing such territory and one independent
registered engineer appointed by the County Agency. Each
governmental unit shall appoint its representative within fifteen
(15) days after being notified to do so by the County Agency and
within a like time the County Agency shall appoint the engineer
third member. If any such representative (other than the
appointee of the County Agency) is not aopointed within the time
above provided, then the County Agency may proceed without said
recommendation. If the committee shall not make the
recommendation within forty-five. (45) days after its appointment
or within any extension thereof by the County Agency, then the
County Agency may proceed without such recommendation.
13. This contract is contingent uoon the County issuing
its negotiable bonds as herein provided, to defray such part of
the total estimated cost of the Project as is necessary to be
financed, which bonds shall be issued under the authorization
provided in Section 5a, 5b and Sc of said Act 342. Interest on
the bonds may be capitalized and paid from the bond proceeds for
a period not exceeding the estimated construction period and one
year thereafter. In the event that the bonds are not issued
within three years from the date of this contract, then unless
extended by mutual agreement it shall become null and void,
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except that the City shall pay all engineering, legal and other
costs and expenses' theretofore incurred hereunder and shell be
entitled to all plans, specifications and other engineering data
and materials.
14. Upon completion of the Project the County and the
City hereby agree that the operation and maintenance of all of
the facilities of the System shall be carried on and continued in
the same fashion and manner as integral parts of the System as
provided in paragraph 5 hereof and as are now in existence and in
effect pursuant to the Evergreen Agreement and the Farmington
Agreement, with costs thereof billed, collected and paid as at
present.
If a grant, advance or payment becomes available from
the State or Federal governments or any other source, the city
hereby agrees to adopt such resolutions or ordinances . as may be
required by State or Federal laws, regulations or orders to make
the County and the Project and System eligible to accept and
receive the grant, advance or payment, and if the terms of the
grant, advance or payment require a local contribution, the City
hereby agrees to raise and make such local contribution.
It is anticipated between the parties hereto that the
Project to he built shall qualify for a Federal grant in accor-
dance with 40 Code of Federal Regulations, Part 35.2108. For
purposes of financing the Project, it is anticipated that the
Project shall be eligible for Federal grants in the amounts as
noted on Exhibit B. The applicant, Oakland County, in accordance
with the requirements of said 35.2108, agrees to complete the
Project regardless of whether or not grant funding is available
for the Project, in accordance with the requirements of said
35.210a.
15. The County shall have no obligation or responsibil-
ity for providing facilities except as herein expressly provided
with respect to the acquisition of the Project or as otherwise
provided by contract. The City shall have the authority and the
responsibility to provide such other facilities and shall have
the right to expand the facilities of the System by constructing
or extending sewers or related facilities, connecting the sane to
the System, and otherwise improving the System. It is expressly
agreed, nevertheless, that no such connection shall be made to
the System and no improvements, enlargements or extensions
thereof shall be made without first securing a permit therefor
from the County Agency. Any such permit may he made conditional
upon inspection and approval of new construction by the County
Agency. It is further agreed that the System shall be used for
collection and conveyance of sanitary sewage only and that the
City shall take all ilecessary action to prevent entry into the
System of storm waters (except as permitted in the Evergreen
Agreement or the Farmington Agreement) and also to prevent entry
of sewage or wastes of such a character as to be injurious to the
System or to the public health and safety.
16. All powers, duties and functions vested by this
contract in the County shall be exercised and performed by the
County Agency, for and on behalf of the County, unless otherwise
provided by law or in this contract. The County Agency shall
prepare, with the aid of its consultants, such covenants,
representations and warranties and have adopted by officials of
the County and of the City such procedures for construction,
accounting, payment and operating as are necessary to comply with
-17-
the reouirements of state and federal law in order to create and
maintain the obligations of the City and of the county under this
contract and with respect to the tends as valid and binding
obligations and in order to assure that the interest on the bonds
is excludable from gross income for federal income tax purposes.
Such covenants, representations and warranties and such
procedures shall be evidenced by and set forth in certificates or
resolutions prepared for the County Agency which the City and the
County all hereby agree to approve, execute and adopt at or prior
to issuance and delivery of any bonds.
17. The parties hereto recognize that the holders from
time to time of the bonds to be issued by the County under the
Provisions of Act 342, and secured by the full faith and credit
pledge of the City to the making of the payments as set forth in
this contract, will have contractual rights in this contract, and .
it is therefore covenanted and agreed 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 adversely affect either the security of the
bonds or the prompt payment of principal or interest thereon.
The right to make changes in this contract, by amendment, supple-
mental contract or otherwise, is nevertheless reserved insofar as
the same do not have such adverse effect. The parties hereto
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 contract of said bonds, the security therefor, or
the prompt payment of principal and interest thereon. It is
hereby declared that the terms of this contract and of any
amendatory or supplemental contract and any contract entered into
-18-
pursuant hereto, insofar as they pertain to said bonds or to the
payment of the security thereof, shall be deemed to be for the
benefit of the holders of said bonds.
18. In the event that any one or more of the provisions
of this contract shall for any reason be held to be invalid,
illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other
provisions hereof, but this contract shall be construed as if
such invalid, illegal or unenforceable provision has never been
contained herein.
19. This contract shall become effective upon its
execution by each party hereto and its anoroval by the vote of a
majority of the electors of the City qualified to vote and voting
thereon at a general or special election. This contract shall
terminate forty (40) years from the date hereof or on such
earlier date as shall be mutually agreed; provided, however, that
it shall not be terminated at any time prior to the payment in
full of the principal of and interest on the County bonds
together with all bond service charges pertaining to said bonds,
This contract may be executed in several countercarts. The
provisions of this contract shall inure to the benefit of and be
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 the undersigned, being
t er,---t-ZKr,t/L)
ounty Dry .ri Commissioner
(County kgency)
By:
Mayor
duly authorized by the respective governing bodies of such
parties, all as of the day and year first above written,
CITY OF LATHRUP VILLAGE COUNTY OF /OP:ALAND
City Clerk
By:
ivit;c„, ge3, 91311-3
6- 2r-5'0
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RETzvriciv ‘TONT/OL_
TAM< I LiVit.aiNG
ACCz.7::-.S* RC-4C,
1
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EVERGREEN-FARMINGTON SEWAGE DISI,GSAL SYSTEM
POLLUTION CONTROL FACILITIES
CITY OF LATBRUP VILLAGE, EXTENSION NO. 1
RETENTION TANK
ICO'
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Pro 4,ect Description
The proposed project consists of the construction of a 3 million
gallon canacity Retention Tank_ The flows to be retained will be those
in excess of the City's purchased canacity of 3.35 cubic feet per
second (ca.'s) to the Evergreen-Farmington System.
The Retention Tank will be an underground concrete structure. Except
for an above ground Control Building, the tank's cor.--ers t^.o slab
will be covered by a lawn area.
Integral with the Retention Tank and within the Control Building,
will be a 'pumping station that will pump the flow from the sewers
into the first of two retention sections.. When the first section
f 17 , the flow spills over a weir into a second retention
The tank will be emptied by dawatering pumps intn an 18" sewer south
of tne tank. Tte rate of emptying will be contrnlled so as not to
exceed the purchased capacity to the Evergreen Intern-actor. This will
he cc by monitoring the flow in the sewer system.
To avoid odors during ,the storing and drainnc neriods, an Odor
Control system will be included which will cul' air through the upper
portion of the tank, between the stored licuid and the underside of
the ton slab. The air and odors will pass through a hypochlorite
contact tower where the odors will be eliminated before the air stream
is discharged to the atmosphere.
After the tank is drained, the remaining settled solid's will be
cleaned out by a system of pipes and nozzles distributing, by computer
controlled sequencing, a supply of high pressure City water.
EXHIBIT A Page I. of 3 6-1-89
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6-19 EXHIBIT A Page 2 of 3
p I it'd:177,1
EVERGREEN-FARMINGTON SEWAGE DISPOSAL SYSTEM
POLLUTION CONTROL FACILITIES
CITY OF LATHRUP VILLAGE, EXTENSION NO, 1
RELIEF SEWERS
EVERGREEN-FARMINGTON SEWAGE DISPOSAL SYSTEM
POLEDTION CONTROL FACILITIES
CITY OF LATHROP VILLAGE, EXTENSION 1,10 1
SEWER SYSTEM REHABILITATION & REPAIR
vrn'=ct resor'ut'on:
Removal of inflow in the sewer system is detailed in the Se',FE'"
Eys:lEm Evaluation Survey Report of May 1929, as amended, b ,-e-
paraf for the City of Lathi-.1p Villace by Giffels-Webster
Engineers, lnc. The proposed project includes removal of inflow
by:
T. Rehabilitation of system manholes
Rehabilitation of the sewer system using internal
pressure arouting at sewer pipe joints.
Excavation and repair, or re-lining of sewer pipe.
EXHIBIT A Page 3 of 3 6,1_89
111,200
50,700
178,200
48,000
6,800
=5
By ; 5,; 7
EVERGREEN/FARMINGTON SEWAGE DISPOSAL SYSTEM
POLLUTION CONTROL FACILITIES
CITY OF LATRRUP VILLAGE, EXTENSION NO. 1
ESTIMATE OF COST
.-CONTRACTED SERVICES - CONSTRUCTION - LOCAL RELIEF & RETENTION
30-inch Sewer 100 L.P. 9 $ 90.00 = $ 9,000 27-incn Sewer 1,000 L.F. 9 $ 80.00 = 80,000 24-inch Sewer 2,200 L.F. 9 $ 75.00 = 163,000 2L-3n Sewer 1,200 L.F. 9 $ 65.00 . 84,500 18-incr. Sewer 2,505 L.F. 9 $ 53.00 - 132,763
Standard Mantole 4' Die. 24 Ea. 9 $ 3,0 00.00 = 72,000 Standard Manhole 6' Die. 7 Ea. 9 $ 5,000.00 = 35,000
8-inch External Drop Conn. 5 Ea. 9 $ 4,000.00 = 20,000
Met-ring & Flow Monitoring T.c, = 100,000
3 mc Retention Tank L.S. 7,600,000
Sub-Total Construction Cost = $ 8,298,263
CONTRACTED SERVICES - CONSTRUCTION - ST...WER SYSTEM REHABILITAT7ON
Manhole sp.,=:.-4^...„ T,c. = S 418,200
Sewer Line Rehabilitation L.S. = 430,400
Sewer Line Repair/Reline 14,100 L.F. 9 S 63.00 = 916,500
Video Sewer Lines L.S. = 83,500
Sub-Total Construction Cost = S 1,848,630
TOTAL CONSTRUCTION COST = $10,146,865
CONTRACTED SERVICES - PROJECT DESIGN & MANAGEMENT
Engineering - Local Relief & Retention = $ 1,476,100
Consultinu Engineer-Design (Stec I:) $515,100
Consulting-Engineer-Construction (Stem I1I)5963,000
Engineering - SSES s 60,000
Encineering - Sewer System Rehabilitation 235,900
Consditinc Engineer-Design (Sten II) $ 96,500 -
Consulting Engineer-Construction (Step- 111)5169,400
Legal & Financial = 5 244,500
COUNTY SERVICES - PROJECT MANAGEMENT
Enoineering
Admilnistrazion
Richt-of-Way -(including Legal)
Construction Inspection
Soil Erosion Permit (Act 347)
CONTINGENCY
TOTAL ESTIMATED PROJECT COST
Less: Federal Grants (Estimated)
TOTAL - BOND IS-7.7.IE
=5 959,735
= $13,550,000
= S 5,400,000
.= $ 8,150,300
NCTE: = hereby estimate the period cf usefineas of
these facilities to be fcrt .7 (40) years and
dpwards.
Ev7 =E 77 , R•TH & CLAP, INC. G:FFELS-WEESTER ENG:NEERS, INC.
6-26-89 EXHIBIT -
NI 3g AND BUILDING COMMITTEE
4. CONFLICTING RESOLUTIONS. All resolutions and parts
of resolutions insofar as they may be in conflict herewith are
rescinded.
Mr. Chairperson, on behalf of the Planning and Building
Committee, I move adoption of the foregoing resolution.
PMW/09192/0046/AGO/4
-4-
Resolution # 90153 June 28, 1990
Moved by Crake supported by Olsen the resolution be adopted.
AYES: Wolf, Aaron, Bishop, Caddell, Chester, Crake, Gosling, Huntoon,
Jensen, Johnson, R. Kuhn, Law, McConnell, McCulloch, McPherson, Moffitt, Oaks,
Olsen, Pappageorge, Pernick, Price, Rewold, Skarritt. (23)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was
adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND
I, Lynn O. Allen, Clerk of the County of Oakland, do hereby certify that the foregoing
resolution is a true and accurate copy of a resolution adopted by the Oakland County
Board of Commissioners on June 28, 1990
with the original record thereof now remaininTirTily office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County
of Oakland at Pontiac, Michigan this 28th day 0 „ , 19 90
Lynfi D. Allen, County Clerk