HomeMy WebLinkAboutResolutions - 1988.03.23 - 17545Miscellaneous Resolution # 83067 March 24 , 1988
BY: PLANNING & BUILDING COMMITTEE, Anne M. Hobart, Chairperson
In Re: DRAIN COMMISSIONERIDEPARTMENT OF PUBLIC WORKS
WIXOM SEWAGE DISPOSAL SYSTEM EXTENSION NO. 2
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS, the County of Oakland (the "County") has
heretofore established and constructed and acquired the Wixom
Sewage Disposal.System pursuant to the provisions of Act No, 185,
Public Acts of Michigan, 1957, as amended ("Act 185), and
Pursuant to the WIXOM SEWAGE DISPOSAL SYSTEM CONTRACT between the
County and the City of Wixom (the "City") dated as of October 1,
1965, to serve the Wixom Sewage Disposal District, within such
district lies all of the City; and
WHEREAS, the County heretofore has improved, enlarged
and extended the Wixom Sewage Disposal System by the acquisition
and construction of sewage disposal facilities pursuant to the
Wixom Sewage Disposal System Extension No. 1 Contract dated as of
April 1, 1971, between the County and the City; and
WHEREAS, it is now necessary to further improve, enlarge
and extend the Wixom Sewage Disposal System by the acquisition
and construction of the hereinafter described Wixom Sewage
Disposal System Extension No, 2; and
WHEREAS, by the terms of Act 342, Public Acts of
Michigan, 1939, as amended ("Act 342"), the County and the City
are authorized to enter into -a contract for the acquisition,
construction and financing of the Wixom Sewage Disposal System
Extension No. 2 consisting of sewage disposal facilities to
serve the City and for the payment of the cost thereof by the
City, with interest, and the County is then authorized to issue
its bonds to provide the funds necessary therefor; and
WHEREAS, there has been submitted to this Board of
Commissioners a proposed contract between the County, by and
through the County Drain Commissioner, County Agency, party of
the first part, and the City, party of the second part (the
°Contract"), which Contract provides for the acquisition,
construction and financing of the Wixom Sewage Disposal System
Extension No. 2 (the "Project"), and which Contract is
hereinafter set forth in full; and
WHEREAS, there have also been submitted for approval and
adoption by this Board of Commissioners, preliminary plans,
specifications and estimates of the cost and period of usefulness
of the Project; and
WHEREAS, the Contract provides for the issuance here-
after of bonds by the County to defray part of the cost of the
Project, said bonds to be secured by the contractual obligations
of the City to pay to the County amounts sufficient to pay the
principal of and interest on the hereafter authorized bonds and
to pay such paying agent fees and other expenses as may be
incurred on account of said bonds; and
WHEREAS, this Board of commissioners desires to proceed
with the establishment of this Project and the approval and
execution of the Contract to acquire, construct and finance the
Project as provided in the Contract.
THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS
OF OAKLAND COUNTY, MICHIGAN, as follows:
1. ESTABLISHMENT OF SYSTEM AND DESIGNATION OF COUNTY
AGENCY. This Board of Commissioners by majority vote of its
members-elect does hereby authorize and direct that there be
established, and there is hereby established, under and pursuant
to Act 342, sewage disposal facilities to be known as the "Wixom
Sewage Disposal System Extension No. 2," which shall consist of
enlargements, additions and improvements to the Wixom Sewage
Disposal System, as specified and to be located as shown in
Exhibit A to the Contract; that the Project shall serve the City;
that the Oakland County Drain Commissioner is hereby designated
and appointed as the "County Agency" for the Wixom Sewage
Disposal System Extension No. 2; that the County Agency shall
have all the powers and duties with respect to the Wixom Sewage
Disposal Extension No. 2 as are provided by law and especially by
Act 342; and that all obligations incurred by the County Agency
with respect to the Wixom Sewage Disposal System Extension No. 2,
unless otherwise authorized by this Board of Commissioners, shall
be payable solely from funds derived from the City as hereinafter
provided.
2. PLANS AND SPECIFICATIONS - ESTIMATES OF PERIOD OF
USEFULNESS AND COST. The preliminary plans and specifications
for the Project and the estimates of $20,000,000 as the cost
thereof and of 30 years and upwards as the period of usefulness
thereof, as submitted to this Board of Commissioners be and the
same are hereby approved and adopted.
3. APPROVAL OF CONTRACT. The Wixom Sewage Disposal
System Extension No. 2 Contract dated as of February 1, 1988,
between the County, by and through the County Drain Commissioner,
party of the first part, and the City, party of the second part,
which Contract has been submitted to this Board of Commissioners,
be and the same is hereby approved and adopted, and the County
Drain Commissioner is hereby authorized and directed to execute
and deliver the same for and on behalf of the County, in as many
counterparts as may be deemed advisable, after the Contract has
been executed by the appropriate officials of the City. The
Contract reads as follows:
WIXOM SEWAGE DISPOSAL SYSTEM
EXTENSION NO. 2 CONTRACT
THIS CONTRACT, made and entered into as of the first day
of February, 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 Commis-
sioner, County Agency, party of the first part, and the CITY OF
WIXOM, a home rule city located in the County (hereinafter
sometimes referred to as the "City"), party of the second part.
WITNESSET H:
WHEREAS, the County, through its Board of Public Works,
heretofore has established and constructed and acquired the Wixom
Sewage Disposal System (the "System") pursuant to the Wixom
Sewage Disposal System Contract dated October 1, 1965, between
the County and the City (hereinafter sometimes referred to as the
"Base Contract") and the provisions of Act No. 185, Public Acts
of Michigan, 1957, as amended, to serve the Wixom Sewage Disposal
District, within which district lies all of the City; and
WHEREAS, the County, through its Board of Public Works,
heretofore has improved, enlarged and extended the Wixom Sewage
Disposal System by the acquisition and construction of sewage
disposal facilities pursuant to the Wixom Sewage Disposal System
Extension No. 1 Contract dated as of April 1, 1971, between the
County and the City (hereinafter sometimes referred to as the
"Extension No. 1 Contract"); and
WHEREAS, it is necessary to further improve, enlarge and
extend the System by the acquisition and construction of the
hereinafter described sewage disposal facilities to serve the
City; and
WHEREAS, pursuant to Act No. 342, Public Acts of
Michigan, 1939, as amended (hereinafter sometimes referred to as
"Act 342"), the Board of Commissioners of the County, by majority
vote of its members-elect, has authorized the acquisition and
construction of a project consisting of the hereinafter described
sewage disposal facilities as part of the system to serve the
City, said project to be known as the "Wixom Sewage Disposal
System Extension No. 2" (hereinafter sometimes referred to as the
"Project"), and has designated the Oakland County Drain Commis-
sioner as the County Agency for the Project with all powers and
duties with respect thereto as are provided by Act 342 (said
Drain Commissioner being hereinafter sometimes referred to as the
"County Agency"); 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 facilities hereinafter described as
constituting the Project, the County and the City are authorized
to enter into a contract for the acquisition and construction of
the Project 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 City to pay such
cost with interest to the County in installments extending over a
period not exceeding forty (40) years and the County is autho-
rized to issue such bonds and to pledge its full faith and credit
for the payment of such bonds and the interest thereon; and
WHEREAS, there is an urgent need for such sewage
disposal facilities to promote the health and welfare of the
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residents of the City, which facilities would likewise benefit
the County and its residents, and the parties hereto have
concluded that such facilities can be provided and financed most
economically and efficiently by the County through the exercise
of the powers conferred by Act 342, and especially Sections 5a,
5b and 5c thereof; and
WHEREAS, preliminary plans for the Project and estimates
of the cost and the period of usefulness of the Project have been
prepared by Hubbell, Roth & Clark, Inc. (hereinafter sometimes
referred to as the consulting engineers) and have been submitted
to and approved by the Board of Commissioners of the county and
the Council of the City and placed on file in the office of the
County Agency, said estimates being set forth in Exhibit B
hereunto attached; and
WHEREAS, in order to provide for the acquisition and
construction of the Project by the County and the financing of
the cost thereof by the issuance of County bonds, and for other
related matters, it is necessary for the parties hereto to enter
into this contract.
THEREFORE, IN CONSIDERATION OF THE PREMISES AND THE
COVENANTS OF EACH OTHER, THE PARTIES HERETO AGREE AS FOLLOWS:
1. The parties hereto hereby approve and agree to the
establishment, acquisition, construction and financing of the
Project, as herein provided, under and pursuant to Act 342. The
City, by way of compliance with Section 29, Article VII, Michigan
Constitution of 1963, consents and agrees to the establishment of
the System and the location of the Project within its corporate
boundaries and to the use by the County of its streets, highways,
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alleys, lands, rights-of-way or other public places for the
purpose and facilities of the System and the Project and any
improvements, enlargements and extensions thereof, and the City
further agrees that, in order to evidence and effectuate the
foregoing agreement and consent, it will execute and deliver to
the County such grants of easement, right-of-way, license, permit
or consent as may be requested by the County.
2. The Project shall consist of the sewage disposal
facilities shown and described 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 Project shall be acquired and constructed substan-
tially 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 or the System, 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 varia-
tions or changes may be made if approved by the County Agency and
by resolution of the City Council 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 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
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procure the issuance and sale of bonds by the county, in one or
more series, in whatever aggregate principal amount is necessary
to defray that part of the total cost of the Project which is in
excess of funds available from other sources. Such bonds shall
be issued in anticipation of, and be payable primarily from, the
payments to be made by the City to the County as provided in this
contract and shall be secured secondarily, if so voted by the
Board of Commissioners of the County, by the pledge of the full
faith and credit of the County, and the said bonds shall be
payable in annual maturities the last of which shall be not more
than forty years from the date thereof.
4. The County Agency shall obtain and accept an offer
f grant by the EPA/DNR for the Project, proceed to take
construction bids for the Project and, subject to the sale and
delivery of said bonds, enter into construction contracts with
the lowest responsive and responsible bidder or bidders, procure
from the contractors all necessary and proper bonds and
insurance, cause the Project to be constructed as part of the
System within a reasonable time and do all other things required
by this contract and the laws of the State of Michigan and the
United States of America. 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 agrees that it will secure and maintain, 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 memorandums of insurance shall
provide that the County and the City shall be insured parties
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thereunder and shall contain a provision requiring that the City
be notified at least ten days prior to cancellation thereof. One
copy of each policy and memorandum of insurance shall be filed
with the City.
5. It is understood and agreed by the parties hereto
that the System is to serve the City and not the individual
property owners and users thereof, unless by special arrangement
between the county Agency and the City. The responsibility of
requiring connection to and use of the System and/or providing
such additional facilities as may be needed shall be that of the
City which shall cause to be constructed and maintained, directly
or through the County, any such necessary additional facilities.
The County shall not be obligated to acquire or construct any
facilities other than those designated in paragraph 2 hereof.
The Project is an improvement, enlargement and extension of the
System and the Base Contract shall apply to the System except as
modified by the Extension No. I Contract for specific application
to the project financed pursuant thereto and as modified herein
for specific application to the Project.
6. The City shall pay to the County the total cost of
the Project (less such funds as may become available from other
sources), which 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 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 payments shall be
made to the County in 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. Such an annual installment shall be so paid in
each year if any principal and/or non-capitalized interest on
said bonds falls due during the twelve-month period beginning on
such principal maturity date in said year, and the amount of each
installment so due and payable shall be at least sufficient to
pay all such principal and/or interest thus falling due and all
bond service charges then due and payable. The County Agency,
within thirty days after delivery of the County bonds to the
purchaser, shall furnish the City Treasurer with a complete
schedule of the principal and interest maturities thereon, and
the County Agency, at least thirty days before each payment is
due to be made by the City, also shall advise the City Treasurer
of the amount payable to the county on such date. If the City
fails to make any payment to the County when due, the same shall
be subject to a penalty of 1% thereof for each month or fraction
thereof that such amount remains unpaid after due. Failure of
the County Agency to furnish the schedule or give the notice as
above required shall not excuse the City from the obligation to
make payment when due. Such payments shall be made by the city
when due whether or not the Project has then been completed or
placed in operation. In the event that additional County bonds
shall be issued under the authority of this contract to defray a
part of the cost of the Project as part of the System, the
foregoing obligations shall apply to such part of the cost and to
said additional bonds insofar as appropriate thereto.
If a grant, advance or payment becomes available from
the state or federal government or any other source, the City
hereby agrees to adopt such resolutions or ordinances as may be
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required by state or federal laws, regulations or orders to make
the County and the Project eligible to accept and receive the
grant, advance or payment, and if the terms of the grant, advance
or payment require a local contribution, the City hereby agrees
to raise and make such local contribution.
It is anticipated between the parties hereto that the
Project to be built shall qualify for a federal grant in
accordance with 40 Code of Federal Regulations, Part 35.2108.
For purposes of financing the Project, it is anticipated that the
Project shall be eligible for federal grants in the amounts as
noted on Exhibit B. The applicant, Oakland County, in accordance
with the requirements of said 35.2108, agrees to complete the
Project regardless of whether or not grant funding is available
for the Project, in accordance with the requirements of said
35.2108, except that the Project shall not be commenced unless a
grant of at least 50% of the eligible cost of the Project
described on Exhibit A is received.
7. The City may pay in advance any amount payable to
the county pursuant to this contract and in that event shall be
credited therefor on future-due amounts as may be agreed by the
parties hereto. The City also may pay in advance any one or more
installments or any part thereof (a) by surrendering to the
County any of said County bonds of like principal amount or (b)
by paying to the County in cash the principal amount of any
County bonds which are subject to redemption prior to maturity
plus all interest thereon to the first date upon which such bonds
may be called for redemption and all applicable call premiums and
bond service charges, and in such event the County Agency shall
call said bonds for redemption at the earliest possible date;
provided, however, that such advance cash payment and credit
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therefor shall be limited in amount at any given time to the
amount of bonds available for redemption by call within the
twelve-month period succeeding the date of the advance cash
payment. The installments or parts thereof so prepaid shall be
deemed to be the installments or parts thereof falling due in the
same calendar year as the maturity dates of the bonds surrendered
or called for redemption and bonds so surrendered or redeemed
shall be cancelled.
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 Project shall exceed the
estimated cost, whether as the result of variations or changes
permitted to be made in the approved plans or otherwise, then
(without execution of any further contract or amendment of this
contract) the City Council, by resolution adopted within fifteen
days after the receipt of construction bids, may direct that a
portion of the Project be deleted sufficient to reduce the total
cost to an amount which shall not exceed the total estimated cost
as hereinbefore stated by more than 5%, provided that such
deletion shall not materially change the general scope, overall
design and purpose of the Project or the System, or in the
absence of the adoption of such a resolution the City shall pay
or procure the payment of the increase or excess in cash, or
County bonds in an increased or additional amount (upon adoption
of an authorizing resolution therefor by the Board of Commis-
sioners) shall be issued to defray such increased or excess cost
to the extent that funds therefor are not available from other
sources; provided, however, that no such increase or excess shall
be approved and no such increased or additional County bonds
shall be authorized to be issued, nor shall the County enter into
any contract for acquisition or construction of the Project or
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any part thereof or incur any obligation for or pay any item of
cost therefor, where the effect thereof would be to cause the
total cost of the Project to exceed by more than 5% its total
estimated cost as hereinbefore stated, unless the City Council
previously 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 City in cash or be defrayed by the
issuance of increased or additional County bonds in anticipation
of increased or additional payments agreed to be made by the City
to the County in the manner hereinbefore provided; provided,
further, that the adoption of such resolution by the City Council
shall not be required prior to or as a condition precedent to the
issuance of additional bonds by the County if the County has
previously issued or contracted to sell bonds to pay all or part
of the cost of the Project and the issuance of the additional
bonds is necessary (as determined by the County) to pay such
increased, additional or excess costs as are essential to comple-
tion of the Project according to the plans as last approved prior
to the time when the previous bonds were issued or contracted to
be sold.
9. In the event that the actual cost of the Project is
less than the total estimated cost, then any surplus available to
the County from the sale of County bonds, at the option of the
City Council, shall be used to improve, enlarge or extend the
System, to apply upon future payments due to the County, to
redeem bonds or to purchase bonds on the open market, provided
that such surplus shall be used to improve, enlarge or extend the
System only if authorized by the Board of Commissioners. Any
such surplus, for the purpose of improving, enlarging or extend-
ing the System, may be supplemented by cash payments to be made
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by the City, or such improvements, enlargements or extensions may
be financed entirely from such cash payments if authorized by the
City Council. If such surplus is used to redeem or purchase
bonds, the same shall be cancelled, and the payments thereafter
required to be made by the City to the County shall be reduced so
as to reflect the resulting saving of interest and the payment
required to be made in the calendar year of the stated maturity
of said bonds shall be reduced by the principal amount thereof.
10. Should the City fail for any reason to pay the
County at the times specified the amounts herein required to be
paid, the City hereby authorizes the State Treasurer or other
official charged with the disbursement of unrestricted state
funds returnable to the City pursuant to the Michigan Constitu-
tion to withhold sufficient funds to make up any default or
deficiency in funds. If the full faith and credit of the County
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 the City, the County Treasurer
is hereby authorized to notify the State Treasurer to deduct the
amount of money so advanced by the County from any unrestricted
moneys in the State Treasurer's possession belonging to the City
and to pay such amount to the County.
The foregoing shall not operate to limit the County's
right to pursue any other legal remedies for the reimbursement of
moneys advanced on account of the default of the City.
11. The City, pursuant to the authorization of Section
5a of Act No. 342, hereby pledges its full faith and credit for
the prompt and timely payment of its obligations expressed in
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this contract and each year shall levy a tax in an amount which,
taking into consideration estimated delinquencies in tax collec-
tions, will be sufficient to pay its obligations under this
contract becoming due before the time of the following year's tax
collections; provided, however, that if at the time of making its
annual tax levy the City shall have on hand in cash other funds
(including but not limited to funds from special assessments,
user charges or connection fees) 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 ability of the City to levy taxes is subject to
constitutional, statutory and charter limitations. The City
Council each year, at least 90 days prior to the final date
provided by law for the making of the annual City tax levy, shall
submit to the County Agency a written statement setting forth the
amount of its obligations to the County which become due and
payable under this contract prior to the time of the next
following year's tax collections, the amount of the funds which
the City has or will have on hand or to its credit in the hands
of the County which have been set aside and pledged for payment
of said obligations to the County and the amount of the City
taxes next proposed to be levied for the purpose of raising money
to meet such obligations. The county Agency shall review such
statement promptly and, if he finds that the proposed city tax
levy is insufficient, he shall so notify the City Council, and
the City hereby covenants and agrees that it thereupon will
increase its levy to such extent as may be required by the County
Agency.
12. No change in the jurisdiction over any territory in
the City shall impair in any manner the obligations of this
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contract or affect the obligations of the City hereunder. In the
event that all or any part of the territory of the City is
incorporated as a new city or village or is annexed to or becomes
a part of the territory of another municipality, the municipality
into which such territory is incorporated or to which such
territory is annexed shall assume the proper proportionate share
of the contractual obligations (including the pledge of full
faith and credit) of the City, which proper proportionate share
shall be fixed and determined by the County Agency and shall be
binding upon all parties concerned unless, within sixty (60) days
after such incorporation or annexation becomes effective, the
governing body of the municipality into which such territory is
incorporated or to which such territory is annexed and the City
Council of the City, by mutual agreement and with the written
approval of the County Agency, shall fix and determine such
proper proportionate share. The County Agency, prior to making
such determination, shall receive a written recommendation as to
the proper proportionate share from a committee composed of one
representative designated by the City Council of the City, one
designated by the governing body of the new municipality or the
municipality annexing such territory and one independent regis-
tered engineer appointed by the County Agency. Each governmental
unit shall appoint its representative within fifteen (15) days
after being notified to do so by the County Agency and within a
like time the County Agency shall appoint the engineer third
member. If any such representative (other than the appointee of
the County Agency) is not appointed within the time above
provided, then the County Agency may proceed without said
recommendation. If the committee shall not make the recommenda-
tion within forty-five (45) days after its appointment or within
any extension thereof by the County Agency, then the County
Agency may proceed without such recommendation.
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13. This contract is contingent upon the County issuing
its bonds 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 Sections 5a, 5b and 5c
of Act 342. Interest on the bonds may be capitalized and paid
from the bond proceeds for a period not exceeding the estimated
construction period and one year thereafter. In the event that
the bonds are not issued within three years from the date of this
contract, then unless this contract is extended by mutual
agreement it shall become null and void, except that the City
shall pay all engineering, legal and other costs and expenses
theretofore incurred and shall be entitled to all plans, specifi-
cations and other engineering data and materials.
14. Upon completion of the Project as part of the
System, the County hereby leases the System to the City to
operate and maintain the same upon the following terms and
conditions:
(a) The System shall be used only to serve
area in the City unless the area to be
served thereby is enlarged by agreement
between the City and the County Agency.
(b) The City shall maintain the System in
good condition and repair and shall
employ and supervise qualified and
competent employees therefor.
The City shall not permit the discharge
into the System of any sewage in viola-
tion of the standards and regulations
controlling the discharge of industrial
and commercial type waste into the System
as said standards and regulations may be
promulgated from time to time by the
County, the State of Michigan or the
Environmental Protection Agency.
(d) The City shall make and collect from the
individual users of the System such
charges for sewage disposal services as
shall be sufficient at least to pay the
cost of operating and maintaining the
(C)
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System and to establish a fund for
replacements, improvements and major
maintenance of the System. In addition,
the City may make and collect such
charges to individual users as shall be
necessary to pay the operating costs of
the City and to provide such other funds
for sewage disposal purposes as are
deemed desirable. The City shall enforce
prompt payment of all such charges as the
same shall become due, and the receipts
from such charges shall be deposited in a
separate account or enterprise fund to be
established and maintained by the City.
The charges to be established by the City
shall comply with all of the federal
requirements specified in 40 CFR parts
35.2130 and 35.2140
(e) The City shall establish such charges as
specified in paragraph (d) to be paid to
the City quarterly or more often
commencing with the first day of the
calendar quarter in which the System is
put into operation.
The City at all times shall operate,
maintain and use the System in such
manner as to comply fully and completely
with the requirements of the Base
Contract and the Extension No. I Contract
and the requirements of U. S. Public Law
92-500 and the contract of grant entered
into pursuant thereto.
The City hereby accepts the lease of the System upon the terms
and conditions herein set forth.
It is further agreed with respect to the Project and the
System that at all times during the operation thereof by the
City, as lessee, the City will obtain and maintain in effect
adequate property damage, public liability and workmen's
compensation insurance covering all facilities leased to the City
under any contract with the County now or hereafter in effect.
All policies and memorandums of insurance shall provide that the
County and the City shall be insured parties thereunder and shall
contain a provision requiring that the County be notified at
least ten days prior to cancellation thereof. One copy of each
(f)
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policy and memorandum of insurance shall be filed with the County
Agency.
The City covenants and agrees to operate the System in a
manner which will not affect adversely the exclusion of the
interest on the County bonds from gross income for federal income
tax purposes.
15. The County shall have no obligation or responsibil-
ity for providing sewage disposal facilities except as herein
expressly provided with respect to the acquisition and
construction of the Project or as otherwise provided by contract.
The City shall have the authority and the responsibility to
provide such other facilities and shall have the right to expand
the facilities of the Project and the System by constructing or
extending sewers or related facilities, connecting the same to
the System and otherwise improving the System. It is expressly
agreed, nevertheless, that no such connection (other than
individual unit tap-ins) shall be made to the Project or the
System and no improvements, enlargements or extensions thereof
shall be made without first securing a permit therefor from the
County Agency. Any such permit may be made conditional upon
inspection and approval of new Construction by the County Agency.
It is further agreed that the System shall be used for collection
and conveyance of sanitary sewage only and that the City shall
take all action necessary to prevent entry into the System of
storm waters 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
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County Agency for and on behalf of the County unless otherwise
provided by law or in this contract.
17. The parties hereto recognize that the holders from
time to time of the bonds to be issued by the County under the
provisions of Act 342, and secured by the full faith and credit
pledge of the City to the making of its payments as set forth in
this contract, will have contractual rights in this contract, and
it is therefore covenanted and agreed that so long as any of said
bonds shall remain outstanding and unpaid, the provisions of this
contract shall not be subject to any alteration or revision which
would in any manner adversely affect either the security of the
bonds or the prompt payment of principal or interest thereon.
The right to make changes in this contract, by amendment, supple-
mental contracts or otherwise, is nevertheless reserved insofar
as the same do not have such adverse effect. The parties hereto
further covenant and agree that they each will comply with their
respective duties and obligations under the terms of this
contract promptly, at the times and in the manner herein set
forth, and will not suffer to be done any act which would in any
way impair the contract of said bonds, the security therefor or
the prompt payment of principal and interest thereon. It is
hereby declared that the terms of this contract and of any
amendatory or supplemental contract and any contract entered into
pursuant hereto, insofar as they pertain to said bonds or to the
payment or the security thereof, shall be deemed to be for the
benefit of the holders of said bonds.
18. The County Agency shall prepare, with the aid of
its consultants, such convenant's, representations and warranties
and have adopted by officials of the County and the City 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 City and 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 City and the County all hereby agree to approve,
execute and adopt at or prior to issuance and delivery of any
bonds.
19. In the event that any one or more of the provisions
of this contract for any reason shall be held to be invalid,
illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other
provisions hereof, but this contract shall be construed as if
such invalid, illegal or unenforceable provision had never been
contained herein.
20. 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 the
City in accordance with the provisions of said Section 5b of Act
342 then this contract shall not become effective until approved
by the vote of a majority of the electors of the City qualified
to vote and voting thereon at a general or special election.
This contract shall terminate forty (40) years from the date
hereof or on such earlier date as shall be mutually agreed;
provided, however, that it shall not be terminated at any time
-18--
)47a, (i2
Mayor
prior to the payment in full of the principal of and interest on
the County bonds together with all bond service charges pertain-
ing 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.
IN WITNESS WHEREOF, the parties hereto have caused this
contract 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.
CITY OF WIXOM
By:
By:
Date: thelyri, /c
COUNTY OF OAKLAND
/
By:
County /Dr. in Commissioner
(C9t.nty Agency)
Date: MAR 2 4 1988
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WIXOM SEWAGE DISPOSAL SYSTEM
EXTENSION No. 2
Wastewater Treatment Plant Improvements
Project Description
The proposed Wixom Wastewater Treatment Plant project consists of the
construction of an activated sludge wastewater treatment plant including site
improvements and an administration building to treat an average daily flow of
3.0 million gallons per day. The plant will be constructed in the northeast
corner of the existing Wixom seepage cell site.
The treatment system includes an influent pumping station to lift the water to
the aerated grit chamber and then through a parshall flume flow meter. The
wastewater then flows by gravity through 2 - 1.5 million gallon aeration
channels for biological treatment. Following biological treatment, the
wastewater receives clarification in three 60 ft, diameter circular clarifiers.
Following clarification, the wastewater is stored in two equalization tanks
totaling 850,000 gallons. The equalization tanks are used to provide uniform
flow and wastewater characteristics to the critical downstream phosphorus
removal system. •
In order to meet the stringent effluent phosphorus limitation proposed for this
facility, extensive chemical treatment is proposed consisting of alum feed
equipment followed by parallel plate separators and sand filters for solids
removal. Final treatment consists of ultra-violet disinfection and cascade
aeration.
Biological solids will be thickened with the use of rotary drum thickeners
before stabilization in two aerobic digesters.. The digested sludge will then be
stored for up to 6 months in two above ground tanks, each 850,000 gallons.
The stored liquid sludge will be applied to agricultural land by outside
contractor.
The chemical sludge generated in the phosphorus removal system can be
dewaterecl in a plate and frame filter press for ultimate disposal to landfill. If
the chemical sludge is acceptable for land application, it will be thickened
using a rotary drum thickener before storage in the land application storage
tanks.
EXHIBIT A
wrxom SEWAGE DISPOSAL SYSTEM
EXTENSION No. 2
Wastewater Treatment Plant Improvements
Estimate of Cost
Construction Contract Cost for Wastewater
Treatment Plant Improvements $15,728,000
Engineering Services for Construction Documents 850,000
Engineering Services during Construction,
Insp., Training, startup 1,500,000
Soils Testing 15,000
County Project Management 380,000
Bond Counsel 25,000
Financial Consultant Services 25,000
Publication Costs 5,000
Permits 3,000
Contingency 1,469,000
Estimated Total Project Cost $20,000,000
Less Estimated Federal Grant 10,000,000
Estimated Local Project Cost $10,000,000
I hereby estimate the period of usefulness of this project to be thirty years
and upwards.
HUBBELL, ROTH Sz CLARK, INC.
by:
J. W. Hubbell, P.E.
EXHIBIT B
wpm, APPROVE THE FO
91 1% AkuPp,ly, Count'
EGONG REsoLunoN
DeW
Building
Mr. Chairperson, on behalf of the Planning and
Committee, I move adoption of the foregoing
resolution.
Planning and Building Committee
RESOLUTION #, 880.67 March 24, 1988
this 24th day of March 988
ALLEN
County Clerk/Register of Deeds
Moved by Hobart supported by Skarritt the resolution be adopted.
AYES: McConnell, A. McPherson, R. McPherson, Moffitt, Oaks, Pernick,
Price, Rewold, Skarritt, Wilcox, Bishop, Caddell, Calandro, Crake, Gosling, Hobart,
Jensen, R. Kuhn, Lanni. (19)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
1, 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 resolution adopted by the Board of Commissioners at their regular
meeting held on Maaja_2.4„ 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