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HomeMy WebLinkAboutResolutions - 1988.03.23 - 17544Miscellaneous Resolution # VX)66, March 24, 1988 BY: PLANNING & BUILDING COMMITTEE, Anne M. Hobart, Chairperson In Re: DRAIN COMMISSIONER/DEPARTMENT OF PUBLIC WORKS— . EVERGREEN AND FARMINGTON SEWAGE DISPOSAL SY 717MS . POLLUTION CONTROL FACILITIES TO THE OAXLAND COUNTY BOARD OF COMMISSIONERS Mr. Chairperson, Ladies and Gentlemen: WHEREAS, pursuant to the provisions of Act 342, Public Acts of Michigan, 1939, as amended (Act 342) the Board of Commissioners of the County of Oakland have heretofore, and from time to time, directed that there be established, acquired, financed, maintained and operated one or more county systems of water and sewer improvements and services in the county, and determined and designated the Drain Commissioner of the County to be the financing agency of the County using the powers set forth in Act 342, and the Department of Public Works to operate completed systems; 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 Sewage Disposal District and in Resolutions No 3270 and 3339 as the Farmington Sewage 'Disposal District, (herein the "Districts') which systems as so established were designated as the "Evergreen and Farmington Sewage Disposal Systems", and the Oakland County Drain Commissioner was designated and appointed as the "County Agency" for said County Systems as is provided by said Act 342; and -WHEREAS, the State of Michigan Department of Natural Resources designated the areas and districts served by the Oakland County Evergreen and Farmington Sewage Disposal Systems as a single plan of study area for the purposes of Step I Facilities 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 and Farmington Sewage Disposal Systems and has ordered that all elements of the Facilities Plan shall be acquired and financed simultaneously in order to be eligible for Federal and State grant funding; and WHEREAS, under and subject to the terms of Act 342, the county is authorized, through the County Agency, to acquire and construct the sewage disposal improvements and pollution control facilities hereinafter described as improvements to the County systems, the county and the several units of local government in the Districts are - authorized to enter into a contract or contracts as hereinafter provided, for the acquisition and construction of the facilities by the county and for financing all or part of the costs thereof by the issuance of one or more series of bonds by the county secured by the pledge of the full faith and credit. of each of the units of local government to pay its proportionate share of the costs of the facilities with interest to the county in installments extending over a period not exceeding forty (40) years, and the county is authorized 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 Step I Facilities Planning is completed in which the needed pollution control facilities in the Districts are designated as Segment 1• and Segment 2 with Stages in each Segment and on the basis thereof the county and the units of local government desire to proceed to acquisition, construction and financing of the proposed Pollution Control Facilities for which several contractual arrangements pursuant to Act 342 for design, construction and financing are required with various combinations of the units of local government in the Districts which are the participants in and users of the Evergreen and Farmington Sewage Disposal Systems (herein "Systems"); and WHEREAS, the Facilities Plan and the provisions for the issuance of Federal and State grants require contracting with the City of Detroit which will provide at the expense of Oakland County and/or Wayne County facilities and service for the transportation and treatment of sewage from the Districts served by the Systems; and WHEREAS, the County Agency has obtained preliminary plans for the several Stages of Segment 1 and Segment 2 (herein the "project") and also estimates of the total cost of the several parts 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. (hereinafter sometimes referred to as the consulting engineers) submitted herewith for approval by the Board of Commissioners of the County and the governing bodies of the several units of local government and placed on file in the office of the County Agency, said estimates being set forth in Exhibits attached to the several contracts with the units of local government; and WHEREAS, in order to provide for the accuisition and construction of the facilities and projects for the Systems 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 several units of local government and the County to enter contractual arrangements set forth in forms of documents submitted herewith; and WHEREAS, the several units of local government are each in urgent need of such sewage disposal improvements and pollution control facilities to provide the means of collecting and disposing of their sanitary sewage and in order to abate pollution of the waters of the state 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 5c thereof; and WHEREAS, is necessary, for the same reasons, that the county acting by and through its Department of Public Works contract with the City of Detroit for transportation and treatment of sewage emanating from the Districts and finance the same by the issuance of revenue bonds of the county; and WHEREAS, the forms of documents requiring approval by and authorization to execute from the Board of Commissioners, as submitted herewith have each been approved by the County Drain Commissioner as County Agent named pursuant to Act 342, by the County Department of Public Works and by the Planning and Building Committee of the Board of Commissioners and have each been approved on behalf of the several units of local government named as Parties and are further specifically described hereinafter. THEREFORE,- BE IT - RESOLVED BY THE BOARD OF COMMISSIONERS OF OAKLAND COUNTY, MICHIGAN, as follows: 1. The AGREEMENT, EVERGREEN AND FARMINGTON SEWAGE DISPOSAL SYSTEMS POLLUTION CONTROL FACILITIES, BEVERLY HILLS, dated as of March 1, 1988, between the County, by and through its County Drain Commissioner as County Agency, and the Village of Beverly Hills and the Exhibit A, pages I and 2 and Exhibit B, each dated February, 1988, and attached thereto, which agreement has been submitted to this Board of Commissioners, be and the same is hereby approved and adopted, and the County Drain Commissioner be and he hereby is 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 agreement has been executed by the appropriate officials of the Village. A copy of said Agreement as submitted shall be filed by the County Clerk with this resolution. 2. The EVERGREEN-FARMINGTON SEWAGE DISPOSAL -SYSTEMS-POLLUTION CONTROL FACILITIES-SOUTHFIELD-FARMINGToN HILLS-CONTRACT, dated as of March 1, 1988, between the County by and through its County Drain Commissioner, as County Agency, and the City of Southfield and City of Farmington Hills and the Exhibit A, Exhibit B, pages 1 and 2 and Exhibit C, marked February, 1988, each attached thereto, which Contract has been submitted to this Board of Commissioners, be and the same is hereby approved and adopted, and the County Drain Commissioner be and he hereby is 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 agreement has been executed by the appropriate officials of the two cities. A copy of said Contract as submitted shall be filed by the County Clerk with this resolution. 3. The DETROIT-OAKLAND AGREEMENT FOR USE OF CERTAIN DETROIT SEWERS FOR THE EVERGREEN-FARMINGTON DISTRICT, AMENDMENT NO. 1, between the City of Detroit by and through its Board of Water Commissioners and the County by and through its County Executive Department of Public Works, which is an amendment to an earlier Agreement between the said parties dated August 29, 1984, which Amendment No. 1 has been submitted to this Board of Commissioners, be and. the same hereby is approved and adopted, and the Chairman of the Board of Commissioners and the County Executive be and they each hereby are authorized and directed to execute and deliver the same for and on behalf of the County, after the Amendment No. 1 has been executed by the appropriate officials of the City of Detroit. A copy of said Amendment No. 1 shall be filed by the County Clerk with this resolution. Mr. Chairperson, on behalf of the Planning and Building Committee, I move adoption of the foregoing resolution. PLANNING AND BUILDING COMMITTEE 1 HEMY APPROVE THE FOREGOING RESOLUTION . . , Dmrifei tnAurph, Couray EXOCytiVO Dattz EVERGREEN AND FARMINGTON SEWAGE DISPOSAL SYSTEMS POLLUTION CONTROL FACILITIES SOUTHFIELD AND FARMINGTON HILLS CONTRACT THIS CONTRACT, made and entered into as of the first day of March , 1988, by and between the COUNTY OF OAKLAND, a county corporation in the State of Michigan (hereinafter sometimes referred to as the "county"), by and through its Drain Commissioner, County Agency, party of the first part, and the CITY OF SOUTHFIELD and CITY OF FARMINGTON HILLS, each an Home Rule city corporation in said county and state (hereinafter sometimes referred to as the "cities"), parties of the second part. WITNESSET H: 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 District"), within which 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 amendatory agreements dated December 22, 1958 and February 9, 1959, all between the County of Oakland 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, municipal corporations in said County of Oakland, the said county acting through its Department of Public Works, did acquire the original Evergreen Sewage Disposal 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 -2- 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, 1953, 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 District are included 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 amendatory agreements dated December 22, 1958 and February 9, 1959, all between the County of Oakland 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 said county acting thru its Department of Public Works, did acquire the original Farmington Sewage Disposal 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 "Farmington Agreement"); and -3- WHEREAS, by annexation of part of the former Township of Farmington the City 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 Farwington 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 Oakland County Evergreen and Farmington Sewage Disposal Systems as a single plan of study area for the purposes of Step I Facilities 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 and Farmington Sewage Disposal Systems; 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 -4- the areas and the districts heretofore designated and described in Oakland County, Michigan, in Resolutions No. 3269, 3435 and 4115 as the Evergreen Sewage Disposal District and in Resolutions No. 3270 and 3339 as the Farmington Sewage 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 said County systems with all the powers and duties with respect to said County systems 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 sewage disposal improvements and pollution control facilities hereinafter described as the County systems, the county and the cities are authorized to enter into a contract, as hereinafter provided, for the acquisition and construction of the systems by the county 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 cities to pay such cost with interest to the county in installments extending over a -5- period not exceeding forty (40) years, and the county is authorized 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 cities are 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 cities, in order to abate pollution of the waters of the cities 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 5c thereof; and WHEREAS, the county and the cities desire to proceed with acquisition and construction of facilities using a combination, of Federal and State grant moneys and local funds as needed for a part of the proposed Pollution -6- Control Facilities as shown on Exhibit "A" hereto attached, for which part contractual arrangements for design, construction and financing are required only with the two cities among all of the municipalities named herein above as participants in and users of the Evergreen and Farmington Sewage Disposal Systems (herein "Systems"); and WHEREAS, the County Agency has obtained preliminary plans for the County systems and also an estimate of $ as the total cost of the systems 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. (hereinafter sometimes referred to as the consulting engineers) submitted herewith for approval by the Board of Commissioners of the County and the city councils of the cities 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 systems 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. -7- 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 Evergreen and Farmington Sewage Disposal Systems, as herein provided, under and pursuant to Act 342. The cities by way of compliance with Section 29, Article VII, Michigan Constitution of 1963, consent and agree to the establishment and location of the systems within the corporate boundaries of each 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 systems and any improvements, enlargements or extensions thereof, and the cities further agree that, in order to evidence and effectuate the foregoing agreement and consent, each 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. In addition, the City of Southfield grants the same rights to use of its streets, highways, alleys, lands, rights-of-way or other public places to the City of -8- Detroit for location and construction of facilities to connect the Evergreen and Farmington Sewage Disposal Systems to the transportation facilities of the DETROIT SYSTEM, as provided in the DETROIT-OAKLAND AGREEMENT FOR USE OF CERTAIN DETROIT SEWERS FOR THE EVERGREEN-FARMINGTON DISTRICT entered into simultaneously herewith between the CITY OF DETROIT and the COUNTY CF OAKLAND. 2. The Evergreen and Farmington Sewage Disposal Systems Pollution Control Facilities to be acquired, constructed and financed hereunder 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 adopted. The particular facilities herein involved are to be acquired in two segments in two years as follows: 1988 Segment #1 1989 Segment #2 Stage 1 and Stage 2 Stage 3 and Stage 4 and Stage 7 South Part These segments are herein sometimes referred to as the "Project". The Project shall be acquired and constructed. -9- 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 Councils of the Cities 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 estimate of period of usefulness thereof as set forth in Exhibit B 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 -10- payments to be made by the cities 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 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, 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 and memoranda of insurance -11- shall provide that the county and the cities shall be insured parties thereunder and shall contain a provision requiring that the cities be notified at least ten days prior to cancellation thereof. One copy of each policy and memorandum of insurance shall be filed with the cities. 5. It is understood and agreed by the parties hereto that the systems facilities are to serve the cities and not the individual property owners and users thereof, unless by special arrangement between the County Agency and the cities. It is the responsibility of each of the Cities to require connection to and use of the facilities of the systems and to provide such additional facilities, as may be needed, so that the cities shall require connection to and use of the facilities 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 anyfacilities other than those designated in paragraph 2 hereof. 6. The cities 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, in local shares and for population equivalent assignments and cubic feet per second capacity equivalent assignments as described in paragraph 12 hereof and on Exhibit C hereunto -12-- attached. 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 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 payment shall be made to the county in annual or semi-annual 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 semi- annual 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 pay- able. The County Agency shall, within thirty days after delivery of the county bonds to the purchaser, furnish the Treasurer of each of the cities with a complete -13- 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 cities, advise the said Treasurer of the amount payable to the county on such date. If either of the cities 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 cities from the obligation to make payment when due. Such payments shall be made by the cities when due whether or not the system has then been completed or placed in operation but neither of the cities is responsible for any payment due from the other. 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 the cost and to said additional bonds insofar as appropriate thereto, it being understood that at all times the obligations of the cities to pay hereunder shall not be less than the amount of the county bonds outstanding and unpaid plus interest thereon. 7. The cities 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 -14- may be agreed by the parties hereto., The cities 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 with all future-due coupons attached thereto, 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. 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 and coupons so surrendered or redeemed shall be cancelled. 8. 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 system shall exceed the estimated cost, whether as the result of variations or changes permitted or needed to be made in the approved plans or otherwise, then (without execution of any further contract or amendment of this contract) the Councils of the cities may, by resolution adopted within fifteen days after -15- the receipt of construction bids, 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 cities 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) be 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 estimated cost of the Project or of any excess of actual cost over estimated cost would be to cause the total cast 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 -16- councils of the cities 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 be paid or its payment procured by the cities 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 cities or either of them to the county in the manner hereinbefore provided: Provided, further, that the adoption of such resolution by the councils of the cities shall not be required prior to or as a condition precedent to the 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 completion 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 councils of the cities, be -1 7- used either to improve, enlarge or extend the systems 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 systems only if authorized by the Board of Commissioners. Any such surplus may, for the purpose of improving, enlarging or extending the systems, be supplemented by cash payments to be made by the cities 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 councils of the cities. 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 cities to the county shall be reduced so as to reflect the resulting saving of interest and the payment required to be made by the cities in the calendar year of the stated maturity of said bonds shall be reduced by the principal amount thereof. 10. Should either of the cities fail for any reason to pay the county at the times specified, the amounts herein required to be paid, each of the cities does hereby authorize the State Treasurer or other official charged with -18- the disbursement of unrestricted state funds returnable to the cities pursuant to the Michigan constitution to withhold sufficient funds to make up any default or deficiency in funds. If the full faith and credit of the county is 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 either of the cities, 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 such of the cities 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 either of the cities. al. The cities, pursuant to the authorization of section 5a of Act No. 342, do each 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, within applicable tax limitations in an amount -19- which, taking into consideration estimated delinquencies in tax collections, will be sufficient to pay its obligations under this contract as a first budget obligation 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 cities or either of them shall have on hand cash or other funds which have been set aside and pledged or are otherwise available for the payment of such contractual obligations falling due prior to the time of the next tax collection, then the annual tax levy may be reduced by such amount. The council of each of the cities shall each year, at least 90 days prior to the final date provided by law for the making of the annual tax levy, 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 following year's tax collections, the amount of the funds which each of the cities 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 cities 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 -20- shall so notify the councils of the cities and each of the cities hereby covenants and agrees that it will thereupon increase its levy to such extent as may be required by the County Agency. 12. As shown on Exhibits A and C, the Pollution Control Facilities to be acquired by completion of the Project are to supplement, improve, extend and enlarge the systems as parts of the Evergreen System and the Farmington System and will serve additional population and provide additional capacity in each of the cities in the proportions shown on Exhibit C. The provisions of the Evergreen Agreement and of the Farmington Agreement, to the extent not specifically amended or eliminated hereby, shall apply to the total systems when completed and placed in operation and shall continue in full effect including any rights now or hereafter existing by contract on behalf of the systems by the county with the City of Detroit and/or the County,of Wayne relative to treatment or transportation of sanitary wastewater and other pollution control activities. As indicated on Exhibit A, there are other Pollution Control Facilities proposed by the Step Facilities Planning (herein "future facilities") as well as -21-- the facilities described in paragraph 2 hereof as Segment #1 and Segment #2 (herein "current facilities"). Even though the cities are the only units of local government now contracting with the county, it is understood that by reason of the Evergreen Agreement and the FaLwington Agreement and because of the Step I Facilities Planning, all of the units of local government named hereinabove as parties to those Agreements (herein "system participants") or as users or potential users of the systems are entitled to a share of capacity in, and may be obligated to participate in sharing the cost of, and in using, the Proposed Pollution Control Facilities or any part or parts thereof (including this Project). Such participation shall be administered by the county in dividing and assigning (1) shares of population to be served, (2) capacity to be available and (3) costs to be shared and the decisions of the county in this regard shall be final. However, no system participant shall be permitted by the county to use any increased systems capacity made available to it beyond its originally purchased system capacity as a result of the construction of the facilities provided for herein and paid for by the cities or by action of the county in dividing and assigning, as above, nor to add to or enlarge the Districts within the boundaries of such system participant unless and until said -22- system participant has made payment in such amount as is determined by the county. Said payment shall include all construction related costs and administrative costa incurred by the cities associated with the increment of additional system capacity utilized by the system participant and shall include interest equal to the interest amount paid by the cities in connection with the financing of the facilities provided for herein. Said payment shall be made in cash to, or by contract to pay with, the county. Payments so received by the county shall be credited as appropriate to the cities. The county further agrees annually to monitor and/or audit system flows generated from within each system participant to ensure that the cities receive proper reimbursement as provided for above and the county agrees to provide the results of said audit to the cities and the system participants. 13. This contract is contingent upon the county issuing its negotiable bonds as herein provided, to defray such part of the total estimated cost of the system as is necessary to be financed, which bonds shall be issued under the authorization provided in Section 5a, 5b and 5c of said Act 342. Interest on the bonds shall 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 -23- mutual agreement it shall become null and void, except that the cities shall pay a share of all engineering, legal and other costs and expenses theretofore incurred as part of Step I Facilities Planning and hereunder and shall be entitled to all plans, data and materials, adopted by the cities pertaining thereto. specifications and other engineering and other units of local government as provided in resolutions heretofore 14. Upon completion of the Project the county and the cities hereby agree that the operation and maintenance of all of the facilities of the systems shall be carried on and continued in the same fashion and manner as integral parts of the systems 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 cities hereby agree to adopt such resolutions or ordinances as may be required by State or Federal laws, regulations or orders to make the County of Oakland and the systems and Districts eligible to accept and receive the -24- grant, advance or payment, and if the terms of the grant, advance or payment require a local contribution, the cities hereby agree to raise and contribute its share thereof as herein provided. It is anticipated between the parties hereto that the Project to be built shall qualify for a segmented Federal grant in accordance with the Code of Federal Regulations, Part 40 Sec. 35.2108. For purposes of financing the Project, it is anticipated that the Project shall be eligible for Federal grants with respect to Segment #1 and Segment #2 in the amounts as noted on Exhibit B. The applicant, Oakland County, in accordance with the requirements of said Sec. 35.2108, agrees to complete the Project regardless of whether or not grant funding is available for both Segments, in accordance with the requirements of said Sec. 35.2108, except that the Project shall not be commenced unless a grant of at least 55% of the eligible cost of Segment #1 of the Project is received. 15. The county shall have no obligation or responsibility for providing facilities except as herein expressly provided with respect to the acquisition of the Project or as otherwise provided by contract. The cities -25-- shall have the authority and the responsibility to provide such other facilities and shall have the right to expand the facilities of the systems by constructing or extending sewers or related facilities, connecting the same to the systems, and otherwise improving the systems. It is expressly agreed, nevertheless, that no such connection shall be made to the systems and no improvements, enlargements or extensions thereof shall be made without first securing a 'permit therefor from the County Agency. Any such permit may be made conditional upon inspection and approval of new construction by the County Agency. It is further agreed that the systems shall be used for collection and conveyance of sanitary sewage only and that the cities shall take all necessary action to prevent entry into the systems 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 -26-- 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 cities such procedures for construction, accounting, payment and operating as are necessary to comply with the requirements of state and federal law in order to create and maintain the obligations of the cities and of the county under this contract and with respect to the bonds as valid and binding obligations and in order to create and maintain the bonds as tax-exempt obligations under state and federal income tax law. 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 cities 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 cities 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 out- standing and unpaid, the provisions of -2 7-- 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 teLms 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 supple- mental contract and any contract entered into 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 pro- visions 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 -28- 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 the expiration of 45 days after the date of publication of the notice required by Section 5b of Act 342; Provided, however, that if, within the 45 day period, a proper petition is filed with the City Clerk of either of the cities in accordance with the provisions of said Section 5b of Act 342, then this contract shall not become effective as to that one of the cities until approved by the vote of a majority of the electors of that one of the cities qualified to vote and voting thereon at a general or special election. This contract shall terminate forty (40) years from the date hereof oron 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 counterparts. The provisions of this contract shall inure to the benefit of and be binding upon the successors and assigns of the parties hereto. -29- CITY OF FARMINGTON HILLS By 'City Manager William M, Costick y Clerk oAn R. Reynolds 20. The Contract, dated as of July 1, 1984, and the Contract, dated as of October 1, 1986, each between the parties hereto and bearing the same name and title are each hereby cancelled and replaced in the entirety by this Contract. IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed and delivered by the under- signed, being duly authorized by the respective governing bodies of such parties, all as of the day and year first above written. COUNTY OF OAKLAND By /County Drain Commissioner / (County Agency) CITY OF SOUTHFIELD ByZ-21 City Clerk PAT Fumotem CITYCaRK CRM/09192/0036/AA9/2 -30- EXHIBIT 'A SEGMENT STAGES II - 345&7S UAA 5 z.)csTANa auTERce9ToRs E'XISTMIC MAJOR PUMP STA T/ON MO FORCE 4,13:6 PROPOE'D PUMP !,MPROVEMENTS pRoposgo puktP STATi(Th ,4NO FORCE MAW OPCISfi YOWIEL SEWER ) NO PIPE UECot4MENDEP TERCt7PTOR iMPROVEMENT55 s[zEs n FT' $EwfR A9Ea. SEPARATiOH, RE TEWNON 2 MLLEs :0?,1PREHErs,ISIVE FACILITiES PLAN OAKLAND COUNTY, MICHIGAN EVE RGFiCEN FARritHGTON POLLUTIOU CONTROL FACILATIES PROPOSED POLLUTION CONTRO lutoEit...Rani a 4E PAq FACILITIES jAN, ?9as C. ARK.4NC ESTIMATE OF COST EVERGREEN-FARMINGTON POLLUTION CONTROL FACILITIES SEGMENT 1 - Stages 1 & 2 6337 L.F. 66" Tunnel Sanitary Sewer @ $915.00 per L.F. = $ 5,798,355.00 1630 L.F. 54" Tunnel Sanitary Sewer @ 743.00 per L.F. = 1,211,090.00 1599 L.F. 48" Sanitary Sewer @ 200.00 per L.F. = 319,800.00 252 L.F. 30" Sanitary Sewer @ 121.00 per L.F. = 30,492.00 623 L.F. 27" Sanitary Sewer @ 108.00 per L.F. = 67,284.00 2644 L.F. 24" Sanitary Sewer @ 115.00 per L.F. = 304,060.00 3968 L.F. 21" Sanitary Sewer @ 110.00 per L.F. = 436,480.00 1619 L.F. 18" Sanitary Sewer @ 92.00 per L.F. = 148,948.00 2243 L.F. 15" Sanitary Sewer @ 84.00 per L.F. = 188,412.00 24 L.F. 12" Sanitary Sewer @ 81.00 per L.F. = 1,944.00 370 C.F. 10" Sanitary Sewer @ 72.00 per L.F. = 26,.640.00 5037 L.F. 42" Force Main @ 161.00 per L.F. = 810,957.00 L.S. Kendallwood Retention Tank = 7,755,000.00 L.S. Murwood Pump Station Expansion =. 1,723,000.00 L.S. Sewer Road Crossings 117,700.00 L.S. Manholes & Manhole Connections 663,600.00 L.S. Misc. Structures 94,300.00 L.S. 8 Mile Road Overflow Connection = 398,600.00 L.S. 6" House Lead Reconnections = 60,100.00 L.S. 12" Water Main Connection = 33,500.00 L.S. Road Widenings, Culverts, etc. = 125,300.00 Estimated Construction Contract Cost Engineering Plans & Specifications Construction Inspection Construction Layout Step 3 Engineering Services Easement & Land Cost Administration, Legal, Financial Soil Borings Facilities Planning & Phase I SSES Value Engineering Contingencies - Total Estimated Cost - Segment 1 Estimated Federal Grant TOTAL ESTIMATED LOCAL COST - SEGMENT 1 (Excluding Interest & Financing Costs) = $ 20,315,562.00 970,000.00 770,000.00 240,000.00 800,000.00 530,000.00 380,000.00 15,000.00 475,080.00 35,000.00 1,969,358.00 = $ 26,500,000.00 = $ 12,650,000.00 = $ 13,850,000.00 EXHIBIT "B" Page 1 2/88 ESTIMATE OF COST EVERGREEN-FARMINGTON POLLUTION CONTROL FACILITIES SEGMENT 1 - Stages 1 & 2 6337 L.F. 66" Tunnel Sanitary Sewer @ $915.00 per L.F. $ 5,798,355.00 1630 L.F. 54" Tunnel Sanitary Sewer @ 743.00 per L.F. 1,211 /090.00 1599 L.F. 48" Sanitary Sewer @ 200.00 per L.F. = 319/800.00 252 L.F. 30" Sanitary Sewer @ 121.00 per L.F. = 30/492.00 623 L.F. 27" Sanitary Sewer @ 108.00 per L.F. = 67,284.00 2644 L.F. 24" Sanitary Sewer @ 115.00 per L.F. = 304,060.00 3968 L.F. 21" Sanitary Sewer @ 110.00 per L.F. = 436 /480.00 1619 L.F. 18" Sanitary Sewer @ 92.00 per L.F. = 148,948.00 2243 L.F. 15" Sanitary Sewer @ 84.00 per L.F. = 188,412.00 24 L.F. 12" Sanitary Sewer @ 81.00 per L.F. 1,944.00 370 L.F. 10" Sanitary Sewer @ 72.00 per L.F. = 26,640.00 5037 L.F. 42" Force Main @ 161.00 per L.F. = 810,957.00 L.S. Kendallwood Retention Tank = 7,755,,000.00 L.S. Murwocd Pump Station Expansion =•1,723,000.00 L.S. Sewer Road Crossings 117,700.00 L.S. Manholes & Manhole Connections 663 /600.00 L.S. Misc. Structures 94,300.00 L.S. 8 Mile Road Overflow Connection = 398/600.00 L.S. 6" House Lead Reconnections = 60,100.00 L.S. 12" Water Main Connection = 33/500.00 L.S. Road Widenings, Culverts, etc. = 125,300.00 Estimated Construction Contract Cost = $ 20,315,562.00 Engineering Plans & Specifications . 970,000.00 Construction Inspection = 770/.000.00 Construction Layout . 240,000.00 Step 3 Engineering Services . 800,000.00 Easement & Land Cost = 530,.000.00 Administration, Legal, Financial . 380,000.00 Soil Borings . 15,000.00 Facilities Planning & Phase I SSES = 475,080.00 Value Engineering = 35,000.00 Contingencies . 1,,969/358.00 Total Estimated Cost - Segment 1 Estimated Federal Grant TOTAL ESTIMATED LOCAL COST - SEGMENT 1 (Excluding Interest & Financing Costs) $ 26,500,000.00 $ 12,650,000.00 = $ 13,850,000.00 EXHIBIT "B" Page 1 2/83 SEGMENT 2 Stages 34 44 &,7 South 6530 L.F. 54" Tunnel Sanitary Sewer @ $720.00 per L.F. = $ 4,701,600.00 5103 L.F. 54" Tunnel Sanitary Sewer @ 578.00 per L.F. = 2,949,534.00 620 L.F. 42" Sanitary Sewer @ 200.00 per L.F. .. 124,000.00 160 L.F. 42" River Crossing @ 370.00 per L.F. = 59,200.00 8634 L.F. 30" Sanitary Sewer @ 171.00 per L.F. = 1,4764414.00 385 L.F. 30" River Crossing @ 290.00 per L.F. --= 1114650.00 4646 L.F. 27" Sanitary Sewer @ 128.00 per L.F. = 5944688.00 8745 L.F. 24" Sanitary Sewer @ 100.00 per L.F. = 874,500.00 3811 L.F. 21" Sanitary Sewer @ 69.00 per L.F. . 262,959.00 4150 L.F. 18" Sanitary Sewer @ 111.00 per L.F. = 460,650.00 594 L.F. 18" Sanitary Sewer @ 74.00 per L.F. = 43,956.00 2244 L.F. 15" Sanitary Sewer @ 106.00 per L.F. = 237,864.00 3714 L.F. 15" Sanitary Sewer @ 74.00 per L.F. = 274 4 836.00 220 L.F. 12" Sanitary Sewer @ 74.00 per L.F. = 16,280.00 3705 L.F. 12" Sanitary Sewer @ 58.00 per L.F. = 214,890.00 5289 L.F. 10" Sanitary Sewer @ 72.00 per L.F. . 380808.00 75 L.F. 10" River Crossing @ 140.00 per L.F. = 104500.00 4408 L.F. 6" House Lead Connections @ 55.00 per L.F. = 242,440.00 1034 L.F. 6" House Lead Connections @ 48.00 per L.F. . 49,632.00 1305 L.F. 12" Force Main @ 59.00 per L.F. = 76,995.00 860 L.F. 8" Force Main @ 47.00 per L.F. . 40,420.00 L.S. Misc. Tunnel Sewer Crossings = 4714400.00 L.S. Manholes . 1,422,180.00 L.S. Structures = 351,500.00 L.S. Culverts,. Headwalls, etc. = 1394 900.00 L.S. 11 Mile Rd-- Pebble Creek, Pump Station = 312,300.00 L.S. Beech Rd.- Rouge River Pump Station = 290 4800.00 L.S. Abandon Pump Station = 53,800.00 Estimated Construction Contract Cost Engineering Plans and Specifications Construction Inspection Construction Layout Step 3 Engineering Services Easement & Land Cost Administration,. Legal, Financial Soil Borings ' Value Engineering Contingencies = $ 16,2454696.00 800,000.00 660,000.00 440,000.00 550,000.00 9504000.00 580,000.00 20,000.00 = 40,000.00 1,6144304.00 = $ 21,900,000.00 Total Estimated Cost - Segment 2 Estimated Federal Grant = $ 10,000,000.00 TOTAL ESTIMATED LOCAL COST - SEGMENT 2 = $ 1149004000.00 (Excluding Interest and Financing Costs) I hereby estimate the period of usefulness of this project to be 40 years and upwards. Cost estimates are based on projected ENR cost index at 4771 for April, 1989. M. 0. Waring, P.E. No. 9775 EXHIBIT "B" Page 2 2/88 100.00 29.43* Project Total Stage Local Cost 1 $ 6.648M 2 7.202M Share $ 6.648M 2.120M Share 0 0 70.57* $ 5.082M $13.850M $ 8.768M $ 5.082M MIIIISOMMEME1411118906196 Total Both Segments $25.750M $11.520M $14.230M COST SHARES BASED ON ALLOCATION CF ALL COSTS D AND FARMINGTON HILLS TO CITIES OF SOUTHF Excluding Interest and Financing Costs) SEGMENT 1 Farmington Hills Southfield SEGMENT 2 3 Main $ 5.8I9M 29.43* $ 1.713M 70.57* $ 4.106M 3 Local 1.404M 0 0 100.00 1.404M 4 1.039M 100.00 1.039M 0 0 7 South 3.638M 0 0 100.00 3.638M $11.900M $ 2.752M $ 9.148M * Based on Southfield additional 33.98 cfs (70.57%) and Farmington Hills 14.17 cfs (29.43%) EXHIBIT "C" 2/88 AGREEMENT EVERGREEN AND FARMINGTON SEWAGE DISPOSAL SYSTEMS POLLUTION CONTROL FACILITIES BEVERLY HILLS THIS AGREEMENT, made as of this 1st day of February', 1988, by and between the COUNTY OF OAKLAND, a Michigan county corporation (hereinafter called the "county"), by and through its County Drain Commissioner, (hereinafter referred to as the "County Agency"), party of the first part and the VILLAGE OF BEVERLY HILLS, .a municipal corporation in the County of Oakland (hereinafter called the "village"), party of the second part: WITNESSET H: WHEREAS, the Oakland County Board of Supervisors by Resolution, Misc, No. 3269, adopted on August 12, 1957, as amended by Resolution, Misc. No. 3435, adopted on October 13, 1958, did approve of establishment of the Evergreen Sewage Disposal System to serve the Evergreen Sewage 0 Disposal District; and WHEREAS, pursuant to the Evergreen Sewage Disposal System Agreement, dated November 10, 1958, as amended by amendatory agreements dated December 22, 1958 and February 9, 1959, all between the County of Oakland and the Cities of Birmingham, Bloomfield Hills, Lathrup Village, Troy and Southfield, the Village of Westwood (now Beverly Hills) and the Townships of Bloomfield and Pontiac, municipal corpora- tion in said County of Oakland, the said 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 accor- dance with the provisions of said agreement, as amended (herein referred to as the "Base Agreement"); 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 FaLwington Sewage Disposal System (herein called the "Farmington System") to serve the Farmington Sewage Disposal District (herein called the "FaLmington District") within which District are included areas in each of the municipal corporations herein- after named; and -2- WHEREAS, pursuant to the Farmington Sewage Disposal System Agreement, dated November 1, 1957, as amended by amendatory agreements dated December 22, 1958 and February 9, 1959, all between the County of Oakland 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 said county acting thru its Department of Public Works, did acquire the original Farmington Sewage Disposal 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 "Farmington Agreement"); and WHEREAS, by annexation of part of the former Town- ship of Farmington the City 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 -3-- WHEREAS, the State of Michigan Department of Natural Resources designated the areas and districts served by the Oakland County Evergreen and Farmington Sewage Disposal Systems as a single plan of study area for the purposes of Step I Facilities 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 and Farmington Sewage Disposal Systems; 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 Sewage Disposal District and in Resolutions No. 3270 and 3339 as the Farmington Sewage Disposal District, which system as so established was designated as the "Evergreen and Farmington Sewage Disposal Systems" and the Oakland County Drain Commissioner was designated and appointed as the "County Agency" for said County systems as are provided by law and. especially by said Act 342; and -4-- WHEREAS, under and subject to the terms of Act 342, the county is authorized, through the County Agency, to acquire and construct the sewage disposal improvements and pollution control facilities hereinafter described as the County systems, the county and the village are authorized to enter into a contract, as hereinafter provided, for the acquisition and construction of the systems by the county 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 village to pay such cost with interest to the county in installments extending over a period not exceeding forty (40) years, and the county is authorized to issue such bonds and, if authorized by majority vote of the members-elect of its Board of Commis- sioners, to pledge its full faith and credit for the payment of such bonds and the interest thereon; and WHEREAS, the village 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 village, in order to abate pollution of the waters of the village and thus to promote -5- 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 wHEREAs, the Step I Facilities Planning is completed in which the needed pollution control facilities are designated as stage 5 of Segment 2 and on the basis thereof the county and the village desire to proceed into Step II and Step III, using a combination, as for step I, of Federal and state grant moneys and local funds as needed for a part of the proposed Pollution Control Facilities as shown on revised Exhibit A-1988 hereto attached, for which part contractual arrangements for design, construction and financing are required only with the village among all of the municipalities named hereinabove as participants in and users of the Evergreen and Farmington Sewage Disposal Systems (herein "Systems"); and WHEREAS, the County Agency has obtained preliminary plans for the said Stage 5 of Segment 2 (herein the -6- "project°) and also a revised estimate of $ 800,000.00 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. (hereinafter sometimes referred to as the consulting engineers) submitted herewith for approval by the Board of Commissioners of the County and the village council of the - village and placed on file in the office of the County Agency, said estimates being set forth in revised Exhibit 3-1988 hereunto attached; and WHEREAS, in order to provide for the acquisition and construction of the systems 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 lireto to enter into this contract. THEREFORE, IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES HERETO, as follows: 1. The preliminary plans and specifications for the project as prepared by the consulting engineers, are hereby approved and adopted, and the revised estimate of -7- cost thereof is approved and adopted in the amount as set forth on revised Exhibit B-1988 hereto attached. The said project shall consist of local relief sewers, new pump stations and force main and improvements to existing pump stations all located approximately as set forth and generally shown on revised Exhibit A-1988 hereto attached. The said plans and specifications and estimate of cost shall r be submitted to the county board of commissioners, together with an order or resolution approved by the County Agency, providing for the issuance of bonds by the county as herein- after provided, in an aggregate principal sum not exceeding the amount of the capital cost as hereinafter defined. If such bond order or resolution shall be adopted by said board of commissioners, then the County Agency shall proceed to secure bids for the construction of the project, to secure bids for the purchase of the bonds, to award construction contracts and to issue the bonds, and shall cause the pro- ject to be constructed within a reasonable time thereafter. 2. The said project is designed for, and shall be used for, the collection and transportation of sanitary sewage only. Said project may be divided into sections by the County Agency for the purpose of construction and the letting of construction contracts. -8- 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 CoUncil of the village -and if provisions required by Para- graph 6 hereof are made for payment or financing of any resulting increase in the total estimated cost. 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 agreement. All policies and memoranda of insurance shall provide that the county and the village shall be insured parties thereunder and shall contain a provision requiring that the village be notified at least ten days prior to cancellation thereof. One copy of each policy and memorandum of insurance shall be filed with the village. -9- 3. The pollution control facilities of said project being an extension of the Evergreen and Farmington Sewage Disposal Systems and being a part of the ultimate county system to serve the Evergreen and Farmington Sewage Disposal Districts, as enlarged, the provisions of paragraphs 3 thru 5 and 11 thru 18 of the Base Agreement shall continue in full force and effect notwithstanding this Agreement. The said project is designed so that the facilities thereof will serve the areas in the Village of Beverly Hills, now included in said Evergreen and Farmington Sewage Disposal Districts, . as enlarged. Properties within said village to be served by said facilities shall be connected thereto only upon such tetlas and conditions as are prescribed by the village and as may be appropriate, in addition to the terms and conditions prescribed in the Base Agreement. No areas not in said village shall be served by or connected to said facilities except by agreement of the parties hereto in writing. The county or the village shall not permit the discharge into said facilities of any sewage in violation of the Base Agreement. 4. Said village shall pay to the county, to cover the capital cost of the project, a sum equal to 100% of the capital cost thereof less such part thereof as may be paid by Federal and/or State grants. -10- The term "capital cost" as above used, shall include all items of cost set forth in revised Exhibit 3-1988 attached hereto and any changes thereto and any other or additional items of cost, of a similar type or nature, as may be set forth in any further revision of Exhibit B agreed to by the parties hereto, incurred by the county in acquir- ing and constructing the project. If a grant, advance or payment becomes available from the State or Federal governments or any other source, the village hereby agrees to adopt such resolutions or ordinances as may be required by State or Federal laws, regulations or orders to make the County of Oakland and the systems and Districts 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 village hereby agrees to raise and contribute its share thereof as herein provided. It is anticipated between the parties hereto that the project to be built shall qualify for a segmented Federal grant in accordance with the Code of Federal Regula- -11-- tions, Part 40 Section 35.2108. For purposes of financing - the project, it is anticipated that the project shall be eligible for Federal grants with respect to Stage 5, Segment 2 in the amounts as noted on Exhibit 3-1988. The applicant, Oakland County, in accordance with the require- ments of said Section 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 Section 35.2108, except that the project shall not be commenced unless a grant of at least - 55% of the eligible cost of seyment #1 of the Pollution Control Facilities described in the Step I Facilities Plan is received. 5. The village 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 8-1988 (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 all paying agent fees and other expenses and charges (including the County Agency's administrative expenses) which are payable -12- on account of said bonds (such fees, expenses and charges being herein called "bond service charges"). Such payment 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 noncapitalized interest on said bonds falls due during the twelvemonth 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 Treasurer of the village 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 village, advise the said Treasurer of the amount payable to the county on such date. If the village 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 -13-- ' 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 village from the obligation to make payment when due. Such payments shall be made by the village when due whether or not the system 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 the cost and to said additional bonds insofar as appropriate thereto, it being understood that at all times the obligation of the village to pay hereunder shall not be less than the amount of the county bonds outstanding and unpaid plus interest thereon. 6. The village 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 village 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 with all future due coupons attached thereto, or (b) by paying to the county in cash the -14- 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 Vssible date. 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 and coupons so surrendered or redeemed shall be cancelled. 7. 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 system shall exceed the revised estimated cost, whether as the result of variations or changes permitted to be made in the approved plans or other- wise, then (without execution of any further contract or amendment of this contract) the council of the village may, by resolution adopted within fifteen days after the receipt of construction bids or receipt of notice of increased actual cost pay or procure the payment of the increase or excess in cash, or county bonds in an increased -15.- or additional' arriount 'shall (upon 'adoption of an authOri'zing .resolution therefor by the Board of Commissioners) be -issued to defray such increased or excess cost, to the extent that funds therefor are not available from other sources: Provided, however, that the adoption of such resolution by the council of the village shall not be required prior to or as a condition precedent to the 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 completion of the Project according to the plans as last approved prior to the tithe When the previous bonds were issued or contracted to be sold.. 8. The installment payments mentioned in para- graph 5 above shall be computed upon the revised estimated cost until the actual cost has been determined. If the actual cost shall be less than the revised estimated cost, then any surplus from the sale of bonds therefor shall be used to purchase such bonds on the open market, and in such event the aggregate installment from the village in the year -16- or in each of the years in which the bonds so purchased mature, shall be reduced by the principal amount of such bonds and the village shall be credited. Any bonds so purchased shall be cancelled. As an alternative, by agree- ment of the parties hereto, such surplus may be used for further extensions in the village. The estimated cost above referred to shall be that set forth in revised Exhibit B-1988 hereto or as revised prior to the issuance of bonds. If the actual cost shall be greater than the revised estimated cost, then the additional amount shall be charged to the village and the several then remaining installments for the village shall be increased accordingly. . 9. The village does hereby pledge its full faith and credit for the prompt payment of the aforesaid obliga- tions and shall each year levy a tax within applicable tax limitations in an amount which, taking into consideration estimated delinquencies in tax collections, will be sufficient for the prompt payment of its obligations falling due under this agreement as a first budget obligation before the time of the following year's tax collection, unless at the time of making such annual levy there shall be cash on hand or other funds which are available or pledged or -17- earmarked for the payment of the current obligations for which the tax levy is to be made, in which case the annual tax levy may be reduced by that amount. Funds for which credit may be so taken, may be raised in the manner provided in Section 5a of said Act 342, Public Acts of 1939, as now existing or here- after amended. 10. The county shall issue its negotiable bonds to defray the capital cost of said project, which bonds shall be secured primarily by the full faith and credit pledge of the village under this agreement and secondarily by the full faith and credit pledge of the County. This agreement is contingent upon 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 5c of said Act 342. Interest on the bonds shall 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 agreement, then unless extended by -18- mutual agreement it shall become null and void, except that the village shall pay a share of all engineering, legal and other costs and expenses theretofore incurred as part of Step I Facilities Planning and hereunder and shall be entitled to all plans, specifications and other engineering data and materials, as provided in resolutions heretofore adopted by the village and other units of local government pertaining thereto. 11. Upon completion of the project the county and the village hereby agrees that the operation and maintenance of all of the facilities of the systems shall be carried on and continued in the same fashion and manner as integral parts of the systems 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. The village covenants and agrees to require the connection to and use of all facilities of the systems by all premises in the village from which sanitary sewage emanates now or hereafter and to impose and collect sewage disposal fees and charges for such connection and use from all residents and users in the village. -19- 12. The county shall have no obligation or responsibility for providing facilities except as herein expressly provided with respect to the acquisition of the project or as otherwise provided by agreement. The village shall have the authority and the responsibility to provide such other facilities and shall have the right to expand the facilities of the systems by constructing or extending sewers or related facilities, connecting the same to the systems, and otherwise improving the systems. It is expressly agreed, nevertheless, that no such connection (other than individual tapins) shall be made to the systems and no improvements, enlargements or extensions thereof shall be made without first securing a permit therefor from the County Agency. Any such perAt may be made conditional upon inspection and approval of new construction by the County Agency. It is further agreed that the systems shall be used for collection and conveyance of sanitary sewage only and that the village shall take all necessary action 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. -20- 13. All powers, duties and functions vested by this agreement 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 agreement. 14. 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 village to the making of the payments as set forth in this agreement, will have contractual rights in this agreement, and it is therefore covenanted and agreed that so long as any of said bonds shall remain outstanding and unpaid, the provisions of this agreement 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 agreement, by amendment, supplemental agreement 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 -21- respective duties and obligations under the terms of this agreement 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 agreement of said bonds, the security therefor, or the prompt payment of principal and interest thereon. 15. The provisions of this agreement shall not be modified or terminated so as to impair the security of any bonds issued by the county upon the full faith and credit pledges of the village. It is hereby declared that the terms of this agreement insofar as they pertain to the security of any such bonds, shall be deemed to be for the benefit of the holders of said bonds. 16. The village of Beverly Hills consents to the use by the county of the public streets, alleys, lands and rights-of-way in the village for the purpose of constructing, operating and maintaining the facilities of the project and of any improvements, enlargements and exten- sions thereto. The village reaffirms its covenant and warrant that all sanitary sewage originating therein shall be delivered only to the Evergreen and Farmington Sewage -22- Disposal Systems, including extensions thereto, for transportation therein and ultimate disposal. Lands (other than highways) owned by or under the jurisdiction of the village or the county, located within the Evergreen and Farmington Sewage Disposal Districts, shall be liable, if sanitary sewage emanates therefrom, to the same extent as privately owned lands, to pay the charges for sewage -- disposal services with respect thereto. 17. This agreement shall become effective upon its execution by each party hereto and the expiration of 45 days after the date of publication of the notice required by Section 5b of Act 342; Provided, however, that if, within the 45 day period, a proper petition is filed with the Village Clerk in accordance with the provisions of said Section 5b of Act 342, then this agreement shall not become effective until approved by the vote of a majority of the electors of the village qualified to vote or voting thereon at a general or special election. This agreement 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 -23- VILLAGE OF BEVERLY HILLS COUNTY OF OAKLAND Village Clerk BY the county bonds together with all bond service charges pertaining to said bonds. This agreement may be executed in several counterparts. The provisions of this agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties hereto. 18. The Agreement of the same name, dated as of October 1, 1986, between the parties hereto is hereby cancelled and totally replaced by this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed and delivered by the undersigned being duly authorized by the respective governing bodies of such parties, all as of the day and year first above written. / BY • , 'touifity D'rai /CoMMis'sioner / / (County Age cy) CRM/09192/0037/AA7/1 -24-- \i s, P r'm T! \ PONTIAC DYINSHIP S.TAGE 6 • -WY • •••. ,v7 Jr r VII /7 - 11 rir 1 / r " / STAGE 7 _ (NORTH PAF — _ ••••-- /4-'1 wf ST- 3 • ;.• 1 :It 1 `1,„ ,KentALLwooD , 'LOCAL RELIEF E sq7ALT 7 f STAGE 5 SEGMENT 2 F. si-Aorri CSOLTTIrFART71 STAGE:2.1 : To atTINNT l cwIj sEvrans i as Ivo': as",• -...48.-71%),%,,s4 6 ow inid ari tun 7s 1 01=:f2 SCALE IN MILES 2 EXHIBIT "A' COMPREHENSIVE FACILITIES PLAN OAKLAND COUNTY, MICHIGAN EVERGREEN- FARMINGTON POLLUTION CONTROL FACit-ITIES ippEr.i.aso By PROPOSED POLLUTION CONTROL FACILITIES HuaaEt.L.RorN a ct ARK.MC. 2/88 LEGEND 48- SEGMENT STAGES 1 - I. & fir - 3, 4, 5 & 7S EXISTING INTERCEPTORS EXISTING MAJOR PUMP STATION AND FORCE MAIN sa PROPOSED PumP STATION imPROvEmENTS 0. s PROPOSED PUMP STATION AND FORCE MAIN INBIPE MI MR Pal II PROPOSED TUNNEL SEWER No p:FE imoupporrimen RECOMMENDED iNTERCEPTOR IMPROVEMENTS SIZES COMBINED SEWER AREA SEPARATION ; RETENTION AND TREATMENT PROJECTS. 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C.) .. / .*. g .... ; CC ta..1 r .n.j.r _.1 a Z _ mut: t ' r n VERLY 7 ) x I•timara. r; LL °If ."e x ler b eco 7,0 ,ti, ' a '-', ''•••• ,..`.-", , : ot, / V.--.' r.,"/. ,.,,i. * .7,' n7 /. ....V• L" ,, ,...„.. ; , . C.r.....,.).-4 --- `_,I3 1.1•r.t1 ci N ;- A 1' I ""' 6.___-41., •- - -le •,. ,,,„. I g s. 1 ';' i' •,')‘,,.--"/41.."- _-, 2 - : ; z - I" . c.v i 1`....,' I'...,' j 7-1 .• ....--..."...- .,.• , , .--/ 11- 1,..21 it i C. " ..,...,,,,t. r• ,_r r:q wr k' '' i Iiimigimiliiimpt............................—...4_, 8 ) . ...., .'"8' ICL.Z,•Iror,t I .• .;; ',.:°.""" 'C ttRu..c.Arc r ff-- 0 1./.1. /11_c), ( I N i 1 0 500 moo WOO SCALE IN FEET LEGEND — EXISTING SEWERS 111.11.111. PROPOSED OPEN OUT SEWERS ALTERNATIVE t 0.0.4.• PROPOSED FORCE MAIN ALTIERNATIVE PROPOSED P PSTATION A. LTERHATFVE PROPOSED ptp,tp STATION IMPROVEMENTS ALTERNATIVE I EXHIBIT "A" Page 2 PREPARED B Y COMPREHENSIVE FACILITIES PLAN OAKLAND COUNTY, MICHIGAN EVERGREEN- FARMINGTON POLLUTION CONTROL FACILITIES r VILLAGE OF .BEVERLY HILLS RELIEF SEWERS rcts tin ELL,AOTH CL ARX,1NC. 2/88 6 - I 1 M. D. Waring', P.E. No. 9775 EXHIBIT "B" 2/88 ESTIMATE OF COST EVERGREEN-FARMINGTON POLLUTION CONTROL FACILITIES SEGMENT 24 Stage 5 348 L.F. 18" Sanitary Sewer @ $110.00 per L.F. = $ 384280.00 4,570 L.F. 15" Sanitary Sewer @ $100.00 per L.F. = 457 4 000.00 780 L.F. 10 Sanitary Sewer @ $ 74.00 per L.F. = 574720.00 1,560 L.F. 12" Force Main @ $ 52.00 per L.F. = 81 4 120.00 650 L.F. 6" Force Main @ $ 40.00 per L.F. 264 000.00 L.S. Pump Station No. 6 = 1534360.00 L.S. Pump Station No. 7 = 2274670.00 L.S. Pump Station No. 8 = 1564 160.00 L.S. Remove Existing Pump Stations = 104800.00 Estimated Construction Contract Cost = $1 4 208,110.00 Engineering Plans and Specifications 82 4 000.00 Construction Inspection = 504 000.00 Construction Stakeout 25,000.00 Easement and Land Cost = 6 4 000.00 Administration,, Legal,, Financial = 85 4 000.00 Soil Borings = 3 4 000.00 Contingencies = 109 4 890.00 Total Estimated Cost 7 Segment 2 4 Stage 5 = $1 4569 4 000.00 Estimated Federal Grant = 7694000.00 TOTAL ESTIMATED LOCAL COST SEGMENT 2, STAGE 5 = $ 800 4 000.00 (Excluding Interest and Financing Costs) I hereby estimate the period of usefulness of this project to be 40 years and upwards. Cost estimates are based on projected ENR cost index of 4771 for April 1989. DETROIT-OAKLAND AGREEMENT FOR USE OF CERTAIN DETROIT SEWERS FOR THE EVERGREEN-FARMINGTON DISTRICT AMENDMENT NO 1 This Agreement made and entered into this first day of March , 1988, by and between the CITY OF DETROIT, a Municipal Corporation of the State of Michigan (hereinafter the "CITY") by and through its Board of Water Commissioners (hereinafter the "BOARD"), and the COUNTY OF OAKLAND, a County Corporation in the State of Michigan, (hereinafter the "COUNTY") by and through its County Executive Department of Public Works, WITNESSETH ..: WHEREAS, the BOARD, operates and maintains a wastewater disposal system consisting of transportation facilities (sometimes hereinafter referred to as the DETROIT SYSTEM) and treatment facilities; and WHEREAS, on August 29, 1984, a DETROIT-OAKLAND AGREEMENT FOR USE OF CERTAIN DETROIT SEWERS FOR THE EVERGREEN-FARMINGTON DISTRICT (herein the "AGREEMENT") was prepared and executed by representatives of the CITY and COUNTY providing that the point of connection of the sewers of the COUNTY to the sewers of the CITY be moved to the First-Hamilton Relief Sewer and that the capacity at said point of connection from the DISTRICT of the COUNTY be increased to 170 cubic feet per second or such larger amount as the BOARD may approve, and that, because of the availability of grant funds and for other reasons pertaining to the needs of the County of Wayne and the CITY, the BOARD shall have constructed a new interceptor to transport sewage from the DISTRICT to the First-Hamilton Relief Sewer as a permanent connection to the DETROIT SYSTEM; and WHEREAS the parties hereto enter into this AMENDMENT NO. 1 for the purpose of serving the public health and welfare of the people of the State of Michigan, especially in the area affected hereby, and enhancing the water quality of the Great Lakes and its tributaries. VII 2 "1.1 WHEREAS, it is now necessary due to grant requirements and other changes in conditions to amend said August 29, 1984, AGREEMENT, NOW, THEREFORE, IT IS AGREED BETWEEN THE PARTIES HERETO, for and in consideration of the mutual covenants herein contained to be kept and performed and the benefits to accrue as a result thereof, that the said AGREEMENT be amended as follows: 1. Amend paragraph 15 of said AGREEMENT to read as follows: 15. The local share of the capital costs of designing and constructing the facilities as set forth in paragraph 8, after receipt and application of the proceeds of Federal and State grants, if any, shall be paid for by the County of Wayne on behalf of the communities comprising the North Huron Valley-Rouge Valley Wastewater Control System, and the COUNTY on behalf of the communities comprising the DISTRICT in accordance with the following ratio: County of Wayne - Fifty-two percent (52%) of items 8A, 8C and 8D. County of Oakland - Forty-eight percent (48%) of items 8A, 8C, and 8D, plus the cost of item 88. Construction is contingent on Wayne and/or Oakland financing said facilities and making timely advance payments to the BOARD. It is the understanding of the parties that the above percentages related to the costs to be borne by Wayne and Oakland respectively are estimates and that the actual percentages shall be subject to modification based on each county's additional outlet capacity in the Board's facilities as established in the MDNR approved bases of design for the Wayne County facilities and the Oakland County facilities respectively. Should the estimated percentages vary from the percentages stated above so as to significantly change the costs to be borne by either Wayne or Oakland, then Wayne or Oakland reserves the right to renegotiate between themselves the bases upon which their respective costs are determined. It is acknowledged that a schedule for construction of the facilities described in Paragraph 8 of the AGREEMENT is anticipated to be established in the federal grant award document and such construction schedule is incorporated herein by reference and made a part of this agreement. Further, it is the intention of the BOARD to proceed with construction in a timely manner and, to the extent possible, to adhere to the following schedule: A) advertise for construction contracts - within 60 days of receipt of federal grant offer B) recommend award of construction contract - within 120 days of bid opening C) issue start work order (initiation of construction) - within 90 days of authorization to award contracts from U.S. EPA, subject to notification of availability of local funds for the project D) substantially complete construction - within 700 days of the start work order. The parties hereto acknowledge that the construction schedule in the federal grant award document shall take precedence. 2. Amend paragraph 21 of said AGREEMENT to read as follows: 21. The BOARD will make every reasonable effort, as expeditiously as is possible, to enter also into an agreement with the County of Wayne on behalf of the North Huron Valley-Rouge Valley Sewage Disposal System for the purpose of completing the financing of the improvements described in paragraph 8 in accordance with the terms and percentages described in paragraph 15. 3. Except as modified by this AMENDMENT, the terms and conditions of the AGREEMENT shall remain in full force and effect. 4. This AMENDMENT and the AGREEMENT shall inure to the benefit of and be binding upon the respective parties hereto, their successors and assigns. -.3 5. This AMENDMENT shall take effect upon its adoption and execution by the respective parties hereto. IN WITNESS WHEREOF, the parties have caused this AMENDMENT to be executed in quadruplicate and signed by the respective parties herein, pursuant to the attached certified copies of resolutions of their governing bodies. WITNESS: COUNTY OF OAKLAND By CITY OF DETROIT, MICHIGAN By APPROVED OAKLAND COUNTY CORPORATION COUNSEL APPROVED BY LAW DEPARTMENT PURSUANT TO g6-406 OF THE CHARTER OF THE CITY OF DETROIT By Date Date THIS CONTRACT WAS APPROVED BY THE CITY COUNCIL ON Date Purchasing Director Date RESOLUTION # 88066 March 24, 1988 March 19 88 LLEN 24th day o this Moved by Hobart supported by Jensen the resolution be adopted. AYES: Lanni, McConnell, McDonald, A. McPherson, R. McPherson, Moffitt, Oaks, Pernick, Price, Rewold, Skarritt, Wilcox, Bishop, Caddell, Calandro, Crake, Gosling, Hobart, Jensen, R. Kuhn. (20) NAYS: None. (0) A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Lynn D. Allen, Clerk of the County of Oakland and having a seal, do hereby certify that I have compared the annexed copy of - the attached re5olutiQn adopted by the Board of Commissioners at their regular meeting held an March 24, 1988 . with the orginial record thereof now remaining in my office, and that it is a true and correct transcript therefrom, and of the whole thereof, In Testimony Whereof, I have hereunto set my hand and affixed the seal of said County at Pontiac, Michigan Couny Clerk/Register of Deeds