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HomeMy WebLinkAboutResolutions - 1991.02.28 - 18487MISCELLANEOUS RESOLUTION NO. 91016 February 28 , 1991 BY: PLANNING AND BUILDING COMMITTEE, Larry Crake, Chairperson IN RE: DRAIN COMMISSIONER -- RESOLUTION TO APPROVE EVERGREEN AND FARMINGTON SEWAGE DISPOSAL SYSTEMS POLLUTION CONTROL FACILITIES - CITY OF LATHRUP VILLAGE CONTRACT TO: THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mr. Chairperson, Ladies and Gentlemen: WHEREAS, by Resolution No. 7674, adopted September 2, 1976, the County established by consolidation and merger under and pursuant to Act No. 342, Public Acts of Michigan, 1939, as amended, a system of sewage disposal improvements and services to serve the areas and the districts heretofore designated and described in Oakland County, Michigan, in Resolutions No. 3269, 3435 and 4115 as the Evergreen District and in Resolutions No. 3270 and 3339 as the Farmington District, which consolidated and merged system as so established was designated as the "Evergreen and Farmington Sewage Disposal Systems" (the "Systems") and the Oakland County Drain Commissioner was designated and appointed as the "County Agency" for the Systems for the acquisition, construction and financing of new facilities with all the powers and duties with respect to the acquisition, construction and financing of facilities for the Systems as are provided by law and especially by said Act 342; and WHEREAS, the County is the lead applicant and has made and will make applications for Federal and State grants for the planning, design, contracting and construction of the additional facilities to enlarge, extend and relieve the Systems as shown on Exhibit A and Project Exhibit B set forth in the Evergreen and Farmington Sewage Disposal Systems Pollution Control Facilities City of Lathrup Village Contract hereto attached and incorporated herein, (herein the "Contract") and will coordinate and supervise the compliance with and performance of conditions and terms of said grants; and WHEREAS, in order to obtain grants, and in order to enlarge, extend and relieve the Systems and to provide additional facilities and capacities for the transportation and treatment of sanitary sewage emanating from the service areas of the Systems in the several municipal jurisdictions of the County and to abate and control pollution and polluting discharges and to comply with requirements imposed by the United States Environmental Protection Administration and the Michigan Department of Natural Resources, it was necessary that the County and fifteen of its Municipalities enter into a Contract entitled Evergreen and Farmington Sewage Disposal Systems Intermunicipal Contract Concerning Wastewater Treatment and Pollution Control Systems, dated as of September 30, 1989, (herein "Intermunicipal Contract") which provides for construction of and service by the existing facilities and by additional facilities described, particularly by reference to the Exhibits to the Intermunicipal Contract and herein described in the Contract hereto attached and by this reference incorporated herein, which additional facilities as described on Exhibit A and Project Exhibit B to the Contract attached hereto, are called the "Project"; and WHEREAS, final plans for the Project described in Exhibit A and Project Exhibit B attached to the form of Contract attached hereto and also estimates of the cost of such Project and the period of usefulness thereof have been prepared by Hubbell, Roth & Clark, Inc. (hereinafter sometimes referred to as the "Consulting Engineers") and have been heretofore approved by the Board of Commissioners of the County, said estimates being set forth in Project Exhibit B to the form of Contract attached hereto; and WHEREAS, there is herewith submitted to this Board of Commissioners the Contract attached hereto between the County, by and through the County Drain Commissioner, County Agency, party of the first part, and the City named in said Contract, party of the second part, which Contract provides for the repayment of an advance by the County of money for the acquisition, construction and financing of the Project pursuant to Act 342, which Contract, is hereinafter set forth in full. THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF OAKLAND COUNTY, MICHIGAN, as follows: 1. ESTIMATES OF PERIOD OF USEFULNESS AND COST. The estimate of the cost of the Project described on Project Exhibit B to the Contract and the estimate of 40 years and upwards and the period of usefulness thereof have been heretofore submitted to this Board of Commissioners and approved and adopted. The amount to be paid by the City of Lathrup Village, as set forth on Exhibit B-1 to the Contract submitted herewith, is hereby approved and adopted. -2- 2. APPROVAL OF CONTRACT. The Evergreen and Farmington Sewage Disposal System Pollution Control Facilities City of Lathrup Village Contract, dated as of February 1, 1991, between the County, by and through the County Drain Commissioner, party of the first part, and the City named in said Contract, party of the second part, which Contract has been submitted to this Board of Commissioners, be and the same is approved and adopted, and the County Drain Commissioner 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 Contract has been executed by the appropriate officials of the City. Said Contract reads as follows: EVERGREEN AND FARMINGTON SEWAGE DISPOSAL SYSTEMS POLLUTION CONTROL FACILITIES CITY OF LATHRUP VILLAGE CONTRACT THIS CONTRACT, made and entered into as of the first day of February, 1991, 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 LATHRUP VILLAGE, a Home Rule city corporation in said county , and state (hereinafter sometimes referred to as the "City"), party of the second part. WITNESSETH: WHEREAS, the Oakland County Board of Supervisors by resolution, Misc. No. 3269, adopted August 12, 1957, as amended by resolution, Misc. No. 3435, adopted October 13, 1958, did approve the establishment of the Evergreen Sewage Disposal System (herein called the "Evergreen System") to serve the Evergreen Sewage Disposal District (herein called the "Evergreen 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 WHEREAS, the Oakland County Board of Supervisors by resolution, Misc. No. 3270, adopted August 12, 1957, as amended by resolution, Misc. No. 3339, adopted January 24, 1958, did approve the establishment of the Farmington Sewage Disposal System (herein called the "Farmington System") to serve the Farmington Sewage Disposal District (herein called the "Farmington District") within which 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 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 Farmington System, the City of Sylvan Lake and the City of Orchard Lake Village have become users of the Farmington System; and WHEREAS, the State of Michigan Department of Natural Resources designated the areas and districts served by the 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 -2- 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 was 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 townships, villages and cities were authorized to enter into contracts, as hereinafter provided, for the acquisition and construction of the systems by the County which Contract is entitled Evergreen and Farmington Sewage Disposal Systems Intermunicipal Contract Concerning Wastewater Treatment and Pollution Control Projects, dated as of September 30, 1989, and executed and delivered by the County and this City and fourteen other municipalities in the Districts and the Systems therein described (herein the "Intermunicipal Contract"). WHEREAS, the County acting pursuant to the Intermunicipal Contract with the townships, cities and villages served by the County systems has proceeded with acquisition and construction of facilities using a combination, of Federal and State grant moneys and County bonds and local funds as needed for parts of the proposed Pollution Control Facilities as shown on Exhibit "A" hereto attached and the County Agency has obtained plans for such parts of the County systems and also an estimate of $16,430,000 as the total cost thereof 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) said estimates being set forth in Project Exhibit B hereunto attached; and WHEREAS, as shown on said Project Exhibit B a portion of the cost of said Project was paid by a cash advance in the amount of $1,860,000 which amount was temporarily advanced in part by the Cities of Southfield and Farmington Hills and of which amount this City is obligated to make reimbursement to the County and in addition to pay to the County its share of administrative costs, all as -3- shown on Exhibit B-1 hereto attached and by this reference made a part hereof, and it is necessary for the parties hereto to enter into this Contract. THEREFORE, IN CONSIDERATION OF THE PREMISES AND THE COVENANTS OF EACH OTHER, THE PARTIES HERETO AGREE AS FOLLOWS: 1. The parties hereto do hereby approve and ratify the establishment, acquisition, construction and financing of the Evergreen and Farmington Sewage Disposal Systems, as provided in the Intermunicipal Contract, under and pursuant to Act 342, The City 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 its corporate boundaries 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 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 Evergreen and Farmington Sewage Disposal Systems Pollution Control Facilities 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 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 as follows: Segment #1 Stage 2(E) and Stage 2(W) These segment stages are herein sometimes referred to as the "Project". The estimate of cost of the Project and the estimate of period of usefulness thereof as set forth in Project Exhibit B are likewise hereby approved and adopted. 3. The County hereby asserts that it has secured, and will maintain during the period of construction adequate property damage and public liability insurance covering all facilities to be constructed in the City pursuant to this Contract. All policies and memoranda of insurance shall provide that the County and the City shall be insured parties thereunder and shall contain a provision requiring that the City be notified at least ten days prior to -4- cancellation thereof. One copy of each policy and memorandum of insurance shall be filed with the City. 4. It is understood and agreed by the parties hereto that the systems facilities are to serve the City and not the individual property owners and users thereof, unless by special arrangement between the County Agency and the City. It is the responsibility of the City to require connection to and use of the facilities of the systems and to provide such additional facilities, as may be needed, so that the City shall cause to be constructed and maintained, directly or through the County, any such necessary additional facilities. The County shall not be obligated hereunder to acquire or construct any facilities other than those designated in paragraph 2 hereof. 5. The City shall pay to the County on or before April 1, 1991, as its share of the total cost of the Project, (less such funds as may become available from Federal and/or State grants or from other sources) the amount shown on Exhibit B-1. 6. 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 Council of the City may, by resolution adopted within fifteen days after the receipt of notification of such increase, direct that a portion of the Project not yet acquired or constructed and not under contract to acquire or construct be deleted sufficient to reduce the total cost to an amount which shall not exceed the total estimated cost of the Project, as hereinbefore stated, by more than 5%; provided that such deletion shall not materially change or terminate the eligibility of the Project for Federal and/or State grants, or change the general scope, overall design, and purpose of the Project. In the adoption of such a resolution the City shall pay or procure the payment of the increase or excess up to said 5% in cash or shall agree that County bonds in an increased or additional amount shall (upon adoption of an authorizing resolution therefor by the Board of Commissioners) 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 cost of the Project to exceed by more than 5% its total estimated cost as hereinbefore stated, the County shall not enter into -5- 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 Council of the City 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 Council of the City 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. 7. In the event that the actual cost of the Project is less than the total estimated cost, then any surplus available to the County shall, at the option of the Commission of the City, be used either to improve, enlarge or extend the systems in the City, 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 City or by the proceeds of additional County bonds, or such improvements, enlargements or extensions may be financed entirely from such cash payments, where authorized by the councils of the City. 8. Should the City fail for any reason to pay the County at the time specified, the amounts herein required to be paid, the City does hereby authorize the State Treasurer or other official charged with the disbursement of unrestricted state funds returnable to the City pursuant to the Michigan constitution to withhold sufficient funds to make up any default or deficiency in funds. 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. -6- 9. As shown on Exhibit A, 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 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. 10. Upon completion of the Project the County and the City 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 4 hereof and as are now in existence and in effect pursuant to the Evergreen Agreement and the Farmington Agreement, with costs thereof billed, collected and paid as at present. If a grant, advance or payment becomes available from the State or Federal governments or any other source, the City hereby agrees to adopt such resolutions or ordinances as may be required by State or Federal laws, regulations or orders to make the County 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 City hereby agree to raise and contribute its share thereof as herein provided. 11. 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 City 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 syst-n:, 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 City 7-- By City Clerk By County Drain Commissioner (County Agency) 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. 12. 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. 13. 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 any other provisions hereof, but this Contract shall be construed as if such invalid, illegal or unenforceable provision has never been contained herein. 14. This Contract shall become effective upon its execution by each party hereto. This Contract shall terminate forty (40) years from the date hereof or on such earlier date as shall be mutually agreed. 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 under- signed, being duly authorized by the respective governing bodies of such parties, all as of the day and year first above written. CITY OF LATH RUP VILLAGE COUNTY OF OAKLAND By Mayor /09192/0056/AHO/1 PONTIAC )ovoomp -STAG 6 141,130YrIFLO TOWNSHIP IPL r I KENDALLWOOD 'LOCAL RELIEF II1Pur vit.LAC,C STAGE I 48" FARMING/0N r alfx1 30' LEGEND SEGMENT STAGES 1 - I &2 II - 3 B 5 EXISTING INTERCEPTORS 0.• EXISTING MAJOR PUMP STATION AND FORCE MAIN 01 PROPOSED PUMP STATION IMPROVEMENTS Q. PROPOSED PUMP STATION AND FORCE MAIN 518111115,11111ANINI PROPOSED . TUNNEL SEWER NO PIPE IKON M '11 RECOMMENDED INTERCEPTOR IMPROVEMENTS J SIZES \S.\\:.\\\.\\•\k'\\ COMBINED SEWER AREA SCALE IN MI (;) PROJECT IDENTIFICATION PROJECT — SEGMENT I EXHIBIT — A MAY 23 t 1989 COMPREHENSIVE FACILITIES PLAN OAKLAND COUNTY, MICHIGAN EVERGREEN- FARMINGTON POLLUTION CONTROL FACILITIES PROPOSED POLLUTION CONTROL FACILITIES PREPARED BY HUBBELL,ROTH 5 CL ARK,IN Engineering Administration Right-of-Way (including Legal) Construction Inspection Soil Erosion Permit (Act 347) = $ 203,300 52,100 496,000 169,700 7,000 Total Bond Issue $ 9,300,000 HUBBELL, ROTH & 2 BY.- D r!Ifci jrq PROJECT EXHIBIT - "B" • E ERGREEN-FRMINGTON SEWAGE DISPOSAL SYSTEM POLLUTION CONTROL FACILITIES SEGMENT I ESTIMATE OF COST (Based on Construction Bids May 10,1989) CONTRACTED SERVICES - CONSTRUCTION Stage 1 - Kendallwood-Westbrooke Area Retention Tank = $ 3,796,000 Stage 2 - Relief Sewer East of Evergreen Road = 3,306,163 Stage 2 - Relief Sewer West of Evergreen Road = 3,956,689 TOTAL CONSTRUCTION COST = $11,058,852 CONTRACTED SERVICES - PROJECT DEVELOPMENT Engineering = $ 3,124,000 Consulting Engineer - Step 1, Fac. Plan Update & UCS & SUO $ 435,000 Consulting Engineer - Step II, Design $1,165,000 Consulting Engineer - Step III, Construction $1,524,000 Bond Counsel = $ 36,000 Financial Advisor 18,000 Official Statement = 4,500 Rating Fees 9,000 Bond Printing 3,000 Bond Advertisement 2,000 C.P.A. Report = 5,000 Bond Discount = 186,000 COUNTY SERVICES - PROJECT MANAGEMENT CONTINGENCY = $ 1,055,548 TOTAL ESTIMATED PROJECT COST - SEGMENT I = $16,430,000 Less: Federal Grants (Estimated) C26 2912 03 = $ 5,270,000 Less: Cash Advance = 1,860,000 NOTE: I hereby estimate the period of usefulness of this facility to be forty (40) years and upwards. q -71 -AC1 EVERGREEN/F.' INGTON SEWAGE DISPOSAL SYSTEM POLLUTION CONTROL FACILITIES SEGMENT I - STAGE 2 ESTIMATE OF COST (Based Upon Construction Bids and including Federal Grant Participation) CITY OF LATHRUP VILLAGE PROJECT COST SHARE - EVERGREEN/FAIU7MrTON S.D.S. P.C.F. SEOMENT I, STAGE 2, INTERCEPTOR RE1.1..EF Relief Stage 2 East Relief Stage 2 West L.S. = $ 8,759 L.S.= -0- SUB-TOTAL ESTIMATED PROJECT LOCAL SHARE COST = $ 8,759 LEGAL & FINANCIAL Legal Counsel = $ 600 Interest (7-25-83 through 4-1-91) = 1,545 , COUNTY SERVICES - PROJECT MANAGEMENT Engineering & Administration = $ 220 TOTAL ESTIMATED COST SHARE = $ 11,124 NOTE: This Estimate of Cost does not include cost to finance by County bond issue or other means. 1 -9 -91 EXHIBIT B-1 D BUILDING COMMITTEE 3.. CONFLICTING RESOLUTIONS. All resolutions and parts of resolutions insofar as they may be in conflict herewith are hereby rescinded. Mr. Chairperson, on behalf of the Planning and Building Committee, I move adoption of the foregoing resolution. CRM/09192/0056/AG9/1 -4- Resolution # 91036 February 28, 1991 Moved by Crake supported by Olsen the resolution be adopted. AYES: McCulloch, McPherson, Millard, Moffitt, Olsen, Pappageorge, Pernick, Rewold, Serra, Skarritt, Wolf, Aaron, Caddell, Crake, Ferrens, Gosling, Huntoon, Johnson, Krause, McConnell. (20) NAYS: None. (0) A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND I, Lynn O, Allen , Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County ,Board of Commissioners on February 28, 1991 with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 28th day gr) February 1991 , LynnjO. Allen, County Clerk