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HomeMy WebLinkAboutResolutions - 1968.05.27 - 18966'2) At a regular meet! the Board of Supervisors of n, on Monday May the 27th day,„, _ Eastern Dayligt 1 968, at 930 o'clock AK PITT IC WORKS COMMITTEE Homer Case, ,..innan, (— arry 'Horton --Uharles B.EdwardS,/r,. Oakland County held in the :S=rvisors' Alitorium In the County Service Area in the City of Pontiac, Mic PT-?.ESLA: Bachert, Bailey, Beecher, Bingham, Birnkrant, Brewer, Bryant, Case, Charteris, Clarkson, Cline, Colburn Dewan, Doherty, Duncan, Edwards, Famularo, 11-4 Fisher, Forbes, Fouts, Frid, Fusilier, Gabler, Gallagher, Geralds, Grisdale, Hall, Hamlin, Horton, Hursfall, Ingraham, Inwood, E. Kephart, J. Kephart, Kramer, Lahti, Lessiter, Linley, Long, Maly, Mastin, McDonnell, McNamee, Melchert, Melstrom, Miller, Mitchell, Nelson, O'Donoghue, Oldenburg, Peasley, Perinoff, Peterson, Potter, Powers, Reid, Remer, Rhinevault, Rusher, Schiffer, Shepherd, Simson, Slovens, Smith, Solberg, Taucher, Taylor, Tinsman, Valentine, Wahl, Walker, Webber, Wilcox, Wilmot, Woods. (75) ABSENT: Brennan, Edward, Eldridge, Johnson, Levinson, Lyon, Mainland, Schwartz, Stine, Tapp, Treacy. (11) STATE; OF MTCHT:' Se: COUNTY OF OY,F,T. May 27th day of 1965, the original of which is 7, I have here ,Jto affixed my official May " inE0 signature this 27th , c,ay 1, the undersiFjaed the d0l7 tified and acting County Clerk of the County of Oakland, certify that the foregoing is a true and co.171ete copy of a resolution adopted by the Board of Supervisors at a reET:ular meetinF; of said -Roard, held on the on file in o'v c ,ffice John I), Murphy Cot ,r. Clerk By Deputy Clerk Misc 4883 flecommended by Board of Public oaks Re: WALLED LAKE WATER SUPPLY SYSTEPT Submitted by Mr.Case Mr. Chai=n, Ladies and Gentlemen: offer the following resolution, which was apnroved and recommended by the Foard. of PtftiTH T-k:& and the Public 1.7c:cks Committee: Resolution proposed by Oakland County Board of Public Works with respect to Walled Lake Water Supply System WHEREAS, the Oakland County Board of Supervisors by resolution, Miscellaneous No. 4680, adopted on January 20, 1967, established the Walled Lake Water Supply System to serve the entire area in the City of Walled Lake and directed the Oakland County Board of Public Works to submit a Contract with the City of Walled Lake in respect to the construction, operation and financing of said System; and WHEREAS, the Board of Public Works has submitted to this Board plans and specifications for the Walled Lake Water Supply System, an estimate of cost and an estimate of the period of useful- ness thereof, prepared by Johnson and Anderson, Inc., registered professional engineers, all of which have been approved by the Board of Public Works; and WHEREAS, the Oakland County Board of Public Works on May 20 , 1968, did approve a form of Contract to be dated as of May 1, 1968, between the County of Oakland and the City of Walled Lake for the construction, operation and financing of the Walled Lake Water Supply System and did authorize the Chairman and Secretary of the Board of Public Works to execute said Contract subject to the approval of this Board of Supervisors; and WHEREAS, the City of Walled Lake constitutes the only party needed to contract with the County for 100% of the cost of the project; NOW, THEREFORE BE IT RESOLVED, that the said plans and specifications, estimate of cost and estimate of period of useful- ness be approved and the County clrk is hereby authorized to endorse on said plans and snecith. and estimates the fact of such approval and return same to the 73oard of Public CL IT t hnt the Chairman and 'bretary of the Board of Public Works be and they are hereby a .,.thorized and directed to execute and deliver on Hhalf of said of Oakland, a Contract dated as c..fHav1, 1950, between the County of Oakland and the City of Wal'u—d Lake, which reads as follows; WALLED LAKE WATER SUPPLY SYSTEM CONTRACT THIS CONTRACT, made and entered into this 1st day of May, 1968, by and between the COUNTY OF OAKLAND, a Michigan county . corporation (hereinafter referred to as the "County"), acting by and through its Department of Public Works, party of the first part, and the CITY OF WALLED LAKE, being a city corporation located in the County of Oakland, Michigan (hereinafter referred to as the "Municipality"), party of the second part; WITNESSET H: WHEREAS, it is immediately necessary and imperative for the public health and welfare of the present and future residents of the above Municipality that adequate and proper water supply facilities be acquired and constructed to serve the entire area thereof; and WHEREAS, the County, under the provisions of Act 185, Public Acts of Michigan, 1957, as amended, has established a Depart- ment of Public Works for the administration of the powers conferred upon the County by said Act, which Department is under the immediate control of a Board of Public Works (hereinafter sometimes referred to as the "Board"), and under the general control of the Board of Supervisors of the County of Oakland; and WHEREAS, the County of Oakland, by Board of Supervisors - Resolution Misc. No. 4680, adopted January 20, 1967, established the Walled Lake Water Supply System (herein called the "System"), which system is to consist of pumping and storage facilities, trans- mission mains and distribution lines and laterals and a source of water consisting of wells or the purchase of water by the County or City from some other public corporation having water available for sale; and WHEREAS, said act authorizes the County to acquire water supply systems as defined in said act and to improve, enlarge, extend and operate such systems; and WHEREAS, by the terms of said act the County and the Municipality are authorized to enter into a contract for the acquisition, improvement, enlargement or extension of a water supply system and for the payment of the cost thereof by the Municipality, with interest, overa period of not exceeding forty (40) years, and the county is then authorized, pursuant to appropriate action of its B.oard of Supervisors, to issue its bonds to provide the funds there- for, secured by the full faith and credit contractual obligations of the Municipality and if the bond resolution so provides, by the full faith and credit of the County; and WHEREAS, said act provides, in the opinion of the Munici- pality and the County, the fairest and most equitable means of acquiring the water supply facilities so vitally necessary for the public health and welfare of the residents of the County within the district to be served, at the most reasonable cost; and WHEREAS, the County, through the Board, has caused pre- liminary plans and an estimate of cost of the System to consist of •water supply facilities necessary to adequately serve the Munici- pality to be prepared by Johnson & Anderson, Inc, consulting engineers of Pontiac, Michigan (hereinafter sometimes referred to • as the "Consulting Engineers"), which said estimate of cost is in the amount shown on "Exhibit 137 which is attached hereto and by this reference made a part hereof; and -2- WHEREAS, in order to issue such bonds it is necessary that the County and said Municipality enter into this Contract; and WHEREAS, it is also necessary for the County and said Municipality to contract relative to the operation, and maintenance of said water supply system and the location thereof entirely with- in the limits of said City; NOW, THEREFORE, in consideration of the premises and the covenants of each other, the parties hereto agree as follows: 1. The County and the Municipality approve the establish- ment of the System in the City of Walled Lake and the County of Oakland, under the provision S of Act 185, Public Acts of Michigan, 1957,,as amended, which is to acquire a source of water and transport and deliver water from the said source to the area to be served thereby, which area shall consist of the entire City of Walled Lake, - and which area is shown on a map hereto attached marked "Exhibit A" and made a part hereof and is hereby designated as the WALLED LAKE WATER SUPPLY DISTRICT (hereinafter sometimesreferred to as the "District"). 2. The water supply system referred to in paragraph 1 above has been designated by the County Board of Supervisors as the WALLED LAKE WATER SUPPLY SYSTEM-and shall consist of pumping and storage facilities, transmission mains and distribution lines and laterals to be located substantially as indicated on "Exhibit A" attached hereto and a source of .water consisting of wells or the purchase of water by the County or City from some other public corporation having water available for sale. -3- 3. The County and the Municipality hereby approve the estimate of cost of said water supply facilities which estimate shall consist of the items set forth in "Exhibit B", and the estimate of 50 years and upwards as the period of usefulness thereof, all as prepared by the Consulting Engineers. Said water supply facilities are hereinafter sometimes referred to as the project". 4. After the execution of this Contract by the County and the Municipality, the Board shall take the following steps (a) Order final plans and specifications for the project from the Consulting Engin.eers. (b) Submit to the Board of Supervisors of Oakland County a xesolution, duly approved and recommended by the Board, providing for the issuance of bonds in one or more series in the aggregate principal amount of the presently estimated cost of the project as shown on "Exhibit B" or such different amount reflecting any revision in the estimate of cost, or reflecting the amount of other funds available to pay the cost of the project, maturing serially as authorized by law, over a period of approximately thirty (30) years, which bonds will be secured primarily by the payments hereinafter provided to be made by the Municipality, to the making of which its full faith and credit is hereby pledged, and secondarily, if approved by a three-fifth (3/5th) majority of the members elect of the Board of Supervisors, by the full faith and credit of the County of Oakland. (c) After the Board of Supervisors of Oakland County has adopted the bond resolution, the Board will take all necessary procedures to obtain the approvals necessary to the issuance of the bonds by the Municipal Finance Commission of the State of Michigan, obtain construction bids for the project and enter into construction contracts with the lowest responsible bidders, and sell and deliver the bonds in the manner authorized by lawt (d) After the issuance of said bonds and the execution of construction contracts, the Board shall cause the project to be constructed within a reasonable time. and do all other things required of it under - the provisions of Act 185 of the Public Acts of Michigan, 1957, as amended. 5. It is understood and agreed by the parties hereto that the System is to serve. the Municipality and not the individual pro- perty owners and users thereof, unless by special arrangement between the Board and the Municipality. The responsibility of requiring connection to and use of the water supply mains and laterals of the System and of providing such additional mains and laterals, as needed, shall be that. of the Municipality which shall cause to be constructed and maintained directly or through the County, the necessary facili ties for supply and delivery of water in the City. The County shall not be obligated by this agreement to serve any areas outside the - district described in paragraph 1 hereof, or to constructany facilities other than those designated in paragraph 2 hereof. -5- 6. The Municipality shall pay to the County the entire or any part of the cost of the facilities of the System financed - by the issuance by the County of its bonds as herein provided. The term "cost" as used herein shall be construed to include all items of cost of the type set forth in "Exhibit 13" attached hereto and any other items of cost of a similar nature as may be set forth in any revision of "Exhibit B" agreed to by the parties hereto. No change in the jurisdiction over any territory in the Municipality shall in any manner impair the obligations of this contract based upon the full faith and credit of the Municipality, In event all or any part of the territory of the Municipality which is in the area served by the System is incorporated as a new city or is annexed to Or consolidated with 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 obligation and right to capacity in the System of the Municipality, from which such territory is taken, based upon a division in the same ratio as the population equivalent for water supply capacity of the property in the territory so annexed . or incorporated bears to the population equivalent for water supply capacity of the property in the remain- ing portion of the Municipality from which said territory is taken. 7. Attached hereto as 'Exhibit C", and by this reference made a part hereof, is a schedule of the annual principal and interest payments to be made to the County by the Municipality com- puted at an assumed interest rate of 5-1/2% per annum on the estimate of cost of the project. Immediately upon the issuance of any bonds by the County to finance the cost of the project, the Board shall -6- notify the Municipality, by written communication addressed to its treasurer, of the schedule of actual payments of the principal of • and interest on the bonds and the paying agent fees and bond handl- ing charges (exclusive of capitalized interest) thereon, and the total amount of each annual payment to be made by said Municipality. Said Municipality hereby covenants and agrees, not less than thirty (30) days prior to the due date of any principal of or interest and fees and charges (exclusive of capitalized interest) on any such bonds, to remit to the Board sufficient funds to meet said payments in full. The obligation herein expressed shall be applicable to all bonds issued by the County to construct and complete the project, as herein defined, whether issued at one time or at more than one time It is assumed that the principal of the bonds represents the cost of the project If funds are available from the Municipality or any other_ source to pay the project cost, or any portion thereof, prior to the issuance of bonds, then its obligation shall be adjusted and limited accordingly. If the Municipality shall fail to make any of such payments when due, the amount thereof shall be subject to a penalty in addition to interest of one-half of one per cent (1/2 of 1%) for each month or fraction thereof that the same remains unpaid after the due date. The Municipality may pay in advance of maturity all or any part of an annual installment due the County, by surrender- ing to the County bonds issued in anticipation of paymentsto be made under this Contract, of a like principal amount maturing in the same calendar year with all future due interest coupons attached thereto. The Municipality may also prepay its .obligation to the County for any year with respect to which bonds of the County are callable, at a time when such bonds are callable, by paving the principal, interest and call premium required to call the bonds on the next available call date. -7- 8 in the event that the Municipality shall fail for any reason to pay to the Board at the times specified, the amounts herein required to be paid, the Board shall immediately notify, in writing, both the County Treasurer of the County of Oakland and the governing body of the Municipality of such default and the amount thereof, and if such default is not corrected within ten (10) days after such notification, the County Treasurer or other county official charged with disbursement to such Municipality of funds derived from the state sales tax levy under the provisions of Act 167, Public Acts of Michigan, 1933, as amended, and returnable to such Municipality pur- suant to the Michigan Constitution, is by these presents specifically authorized by the Municipality to withhold sufficient funds (but in no event in an amount in excess of 25% of the amount of default) derived from such sales taN levy and returnable to the Municipality as may be needed to correct such default, and to pay said sums so withheld to the Board to apply on the obligation of the defaulting Municipality as herein set forth- Any such moneys so withehld and paid shall be considered to have been returned to the Municipality within the meaning of the Michigan Constitution, the purpose of this provision being solely to voluntarily authorize the use of such funds to meet past due obligations of the Municipality to which said moneys are owed. In addition to the foregoing, the Board shall have all other rights and remedies provided by law to enforce the obligation of the Munici- pality to make payments in the manner and at the times required by this Contract. It is specifically recognized by the Municipality that the payments required to be made by it pursuant to the terms of this Contract are to be pledged for the payment of the principal of and interest -on bonds to be issued by the County, and the Munici- pality covenants and agrees that it will make its required payments to the Board promptly and at the times herein specified, without -8- regard as to whether the project herein contemplated is actually completed or placed in operation; provided, only that nothing herein contained shall limit the obligation of the County to perform in accordance with the promises and covenants contained herein. 9. After completion of the project and payment of all costs thereof, any surplus remaining from the sale of the bonds therefor shall be used to call such bonds as are callable or to purchase bonds on the open market and in such event the contractual obligation of the Municipality in respect to the project shall be reduced by the principal amount of bonds so called or purchased, said reduction to be applied as to year, in accordance with the year of the maturity of the bonds so called or purchased. Any bonds so called or purchased shall be cancelled. In the alternative, said surplus may be used at the request of the Municipality and upon approval by the Board of Supervisors, to improve, enlarge, or extend the System in the municipality. 10. If the proceeds of the 'sale of the original bonds to be issued by the County for the project are for any reason insuffi- cient to complete the project in accordance with the plans and specifications therefor, the Board shall, if necessary, submit to the Board of Supervisors of Oakland County a resolution providing for the issuance of additional bonds in an amount necessary- to pro- vide funds to complete the project in which event the duties and obligations of the Board and the Municipality as expressed and set forth in this Contract shall be applicable to such additional issue of bonds as well as the original issue, it being at all times fully recognized and agreed that the payments to be made by the Municipality, in the manner specified in paragraph 7 of this Contract, shall be -9- based upon the aggregate amount of the bonds outstanding. In lieu of the issuance of such additional bonds, any other method may be - agreed upon by the County and the Municipality to provide the neces- sary funds to complete the project. 11. The Municipality, pursuant to the authorization of paragraph (2), Section 12 of Act 185, Public Acts of Michigan, 1957, as amended, does hereby pledge its full faith and credit for the prompt and timely payment of its obligations expressed in this Contract and shall each year, commencing with the year 1969, levy a tax in an amount which, taking into consideration estimated delin- quencies in tax collections, will be sufficient to pay its obliga- tions under this Contract becoming due before the time of the fol- lowing year's tax collections; PROVIDED, HOWEVER, that if at the time of making such annual tax levy there shall be other funds on hand earmarked and set aside for the payment of such contractual obligations falling due prior to the next tax collection period, then the annual tax levy may be reduced by such amount. Such other funds maybe raised in the manner provided in said paragraph (2), Section 12 of Act 185, Public Acts of Michigan, 1957, or any amend- ments thereto. 12. This Contract is contingent upon the County issuing its negotiable bonds as set forth in subdivision (b) of paragraph 4 of this Contract, to defray the estimated cost of the project, which bonds shall be issued under the authorization provided in paragraph (1), subparagraph (b), Section 11 of said Act 185, Public Acts of -Michigan, 1957, as amended. • 13. The Municipality consents to the establishment and location of said System entirely within its corporate limits. Upon -10-- completion of said System the County hereby leases the said System to the Municipality during the term of this Contract, upon the following terms and conditions: (a) The System shall be used and operated by the Municipality in compliance with the contractual and legal obligations applicable to the . Municipality. • • (b) The Municipality, at its own expense, shall main- tain said System in good condition and repair, to the satisfaction of the Board of Public Works. The Board of Public Works shall have the right to inspect the said System at any time and if said • System or any part thereof is not in a state of good condition and repair, then the Board of Public Works shall notify the Municipality in writing as to any deficiency. If the Municipality shall fail to restore the System to a . good condition and repair within a reasonable time thereafter then - the Board of Public Works shall have the right to perform the necessary .work and furnish the necessary materials, and reimbursement for any expense incurred by the County shall be made by the Municipality to the County within thir ty (30) days after the expense has been incurred. (e) The Municipality shall adopt and continue in existence and shall enforce an ordinance or ordinances concerning the connections of premises -1 1- in the Municipality to the System and concerning the use of and the payment of charges for the use of the System. (d) The Municipality shall make and collect from the individual users of the System such charges for water supply service as shall he sufficient to pay the cost of the operation and maintenance of the System, any costs necessary- for the purchase of water, and to establish suitable reserves for operating and maintaining the System. Such charges may also include an amount determined by the Munici- pality to be used to meet the obligations of the Municipality to the County under this Contract. The Municipality shall enforce prompt payment of all such charges as the same shall become due. The Municipality agrees to lease the System from the County upon the foregoing terms and conditions and for the period of this Contract and agrees to pay the sum of $1.00 per year on January 1st of each year commencing January 1, 1970, and in addition to perform its covenants and agreements set forth in this Contract as a rental for said System. 14, The County and the Municipality each recognize that the holders from time to time of the bonds issuedby the County under the provisions of said Act 185, Public Acts of Michigan, 1957, as - amended, and secured by the full faith and credit pledge of the Municipality to the making of its payments as set forth in this Contract, will have contractual rights in this Contract and it is -12- therefore covenanted and agreed by each of them that so long as any of said bonds shall remain outstanding and unpaid, the provisions of this Contract shall not be subject to any alteration or revision which would in any manner affect either the security of the bonds or the prompt payment of principal or interest thereon. The Munici- pality and the County further covenant and agree that they will each comply with their respective duties and obligations under the terms of this Contract promptly, at the times and in the manner herein set forth, and will not suffer to be done any act which would in any way impair the said bonds, the security therefor, or the prompt pay- ment of principal and interest thereon. It is hereby declared that the terms of this Contract in so far as they pertain to the security of any such bonds, shall be deemed to be for the benefit of the holders of said bonds. 15. This Contract shall become effective upon app r oval by the legislative body of the Municipality, by the Board of Public Works of Oakland County, and by the Board of Supervisors of Oakland County, and duly executed by the authorized officers of the Municipality and of the Board of Public Works. It shall terminate fifty (50) years from the date of this Contract, or on such earlier date when the Municipality is not in default thereunder and the principal, interest and bond handling charges on the bonds issued as hereinabove described are fully paid and discharged. This Con- tract may be executed in several counterparts. The provisions of this Contract shall be in full force and effect and binding upon the successors and assigns of the parties hereto. -13- IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed and delivered by their respective duly authorized officers, all as of the day and year first above written. COUNTY OF OAXLAND By Its Board of Public Works By Chairman By Secretary CITY OF WALLED LAKE By Mayor - By City Clerk 6 inch 8 inch 12 inch 16 inch 6 inch 8 inch Water Main Water Main Water Main Water Main Valve and Well Valve and Well EXHIBIT "B" Melvin C. Strader P. E. #12410 Revised April 22, 1968 ESTIMATE OF COST WALLED LAKE WATER SUPPLY SYSTEM 20,309 38,405 32,425 8,470 50 71 54 13 2 157 Ea. 1 Ea. 1 Ea. 2 Ea, 12 inch Valve and Well @ 16 inch Valve and Well @ 6 x 6 tapping sleeve Valve and Well @ 715.00/Ea.. Fire Hydrants complete 525.00/Ea. Recondition Well House #1 Lump Sum Recondition Well House #2 Lump Sum New Well complete @ 60,000.00 $ 148,255.70 307,240.00 389,100.00 135,520.00 22,000.00 35,145.00 35,640.00 16,445,00 1,430.00 82,425.00 16,500.00 27,500.00 120,000.00 L. F. L. F. L. F. L. F. Ea. Ea. Ea, Ea. Ea, $ 7.30/L. F. 8.00/L.F. 12.00/L.F. 16.00/L.F. 440.00/Ea. 495.00/Ea. 660.00/Ea. 1,265.00/Ea. Sub-Total Construction Cost 1,266 Ea. Houseservice and meter 120.00/Ea. Engineering Bond Council Local Attorney Financial Administration Inspection Easement and Land Acquisition Soil Test Borings Drilling of Test Wells Purchase of Equipment Contingency Sub-Total Capitalized interest @ 5% for 18 months Total Project Cost = $1,337,200.70 = 151,920.00 =$ 87,000.00 8,500.00 2,500.00 = 3,300.00 34,000.00 34,000.00 10,000.00 2,000.00 8,853.40 14,000,00 = 110,475.90 = $ 466,549.30 = $ 146,250.00 = $1,950,000.00 I hereby estimate the period of usefulness of the above project to be Fifty Years (50) and upward. JOHNSON AND ANDERSON, INC. tn._ /deti2-41K.//-,- BE IT FURTHE 7' 7?';'.7.,LV7D, that the elfficers of the F.rlard of Public Works are authorized to execute and ...elivev such number f original copies of said Contract as they Tia -1 deem advisable Sup port ed. Mr, Perinoff AYES Bachert, Bailey, Beecher, Bingham, Birnkrant, Brewer, Bryant, Case, Charter's, Clarkson, Cline, Dewan, Doherty, Duncan, Edwards, Famularo, Fisher, Forbes, Fouts, Frid, Gabler, Gallagher, Geralds, Grisdale, Hall, Hamlin, Horton, Hursf all, Ingraham, Inwood, E. Kephart, J. Kephart, Kramer, Lahti, Lessiter, Linley, Long, Maly, Mastin, McDonnell, McNamee, Melohert, Melstrom, Miller, Mitchell, Nelson, O'Donoghue, Oldenburg, Peasley, Perinoff, Peterson, Powers, Reid, Berner, Rhinevault, Rusher, Schiffer, Shepherd, •imson, Slavens, Solberg, Taucher, Taylor, Tinsman, Valentine, Wahl, Webber, Wilcox, Wilmot, Woods. (70) NAys: None. (0) AES,L.a Brennan, Colburn, Edward, Eldridge, Fusilier, Johnson, Levinson, Lyon, Mainland, Potter, Schwartz, Smith, Stine, Tapp, Treacy, Walker, (16) Notion carried.