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HomeMy WebLinkAboutResolutions - 1964.10.26 - 19540At a Regular presented the plans, specifications, Mr. Rehard meeting of the Board of Supervisors of Oakland County, Michigan, held in the Board of Supervisors Auditorium Building, Oakland County Service Center, 1200 North d ay o f October Telegraph Road, Pontiac, Michigan, on the 27th 1964, at 10:00 o'clock A.M., Eastern Standard Time PRESENT: Alward, Bachert, Brewer, Campbell, John Carey, Case, Charteris, Cheyz, Davids, Demute, Dohany, J. W. Duncan, WM. Duncan, Durbin, Edward, Edwards, Ewart, Fouts, Goodspeed, Grisdale, Hall, Hamlin, Heacock, Horton, Hudson, Hursfall, Ingraham, Julian, Kennedy, Knowles, Laurie, Levinson, Mainland, Marshall, McAvoy, McGovern, Melchert, Menzies, Mercer, Michrina, Mitchell, 0/Donoghue, Oldenburg, Osgood, Patnales, Potter, Potthoff, Powers, Rebard, Rhineyault, Seeterlin, Simson, Slavens, Smith, Tapp, Terry, Tiley, Tinsman, Turner, Voll, Webber, WrobeL, (62) ABSENT: Allerton, Bloe, Brickner, James Carey, Clarkson, Dewan, Forbes, Hagstrom, Kephart, Lahti, Lessiter, Linley, Maier, Miller, Moore, Perinoff, Remer, Solley, Stephenson, Travis, Wood, Yockey. (23) Miscellaneous Resolution Na. Recommended by Board of Public Works Re: Oakland County Water Supply System for Farmington Township- Industrial Section One estimates and agreement mentioned in the following resolution, a copy of which resolution has been sent to each member of the Board of Supervisors. Rehard The following resolution was offered by Mr. WHEREAS, the Oakland County Board of Public Works has approved and adopted, and has submitted to this Board of Supervisors, for its approval, plans and specifications for the extension of the Oakland County Water Supply System for Farmington Township by the acqusition, construction and financing of Industrial Section One, together with estimates of $520,000 as the cost of and forty (40) years and upwards as the period of usefulness thereof, all prepared by Pate, Him n and Bogue, Inc, consulting engineers; and WHEREAS, the Board of Public Works has also approved and submitted to this Board of Supervisors for its approval, a proposed agreement between the County of Oakland and the Township of Farmington relative to the acquisition, construction and financing of said Industrial Section One as an extension of said system; and WHEREAS, the Township Board of said Township has approved the said agreement and has authorized and directed that it be executed for and on behalf of the Township by the Township Supervisor and the Township Clerk; THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF OAKLAND COUNTY, MICHIGAN, as follows: That said plans and specifications and said estimates be and the same are hereby approved, that the County Clerk shall endorse thereon the fact of such approval, and that the same shall be returned to the Board of Public Works. 2. That said agreement between the County of Oakland and the Township of Farmingt be and the same hereby is approved, and that the Chairman and the Secretary of the said Board of Public Works be and they a re hereby authorized and directed to execute and deliver said agreement for and on behalf of the County of Oakland, - in as many original copies as they may deem advisable, the said contract being as follows . AGREEMENT • OAKLAND COUNTY WATER SUPPLY SYS:EN. FOR FARMINGTON TOWNSHIP INDUSTRIAL SECTION ONE THIS AGREEMENT, made and entered into as of the first day of October, 1964, by and between the COUNTY OF OAKLAND, a Michigan county corporation (hereinafter referred to as the "County"), party of the first part, and the TOWNSEIP OF FARMINGTON, a Michigan township corporation located in said County (hereinafter referred to as the "Township"), party of the second part; WITNESSETH,', A. WHEREAS, pursuant to the provisions of Act No. 185 of the Michigan Publ ic Acts of 1957, as amended, the County has established a Depatment of Public Works for the administration of the powers conferred upon the County by said Act, which Department is adrAnistered by a Board of Public Works (hereinafter sometimes referred to as the 'Board") under the general control of the Board of Supervisors of the County; and B. WHEREAS, by the terms of said Act the County is authorized to acquire a water supply system within the Township and to improve, enlarge, extend, operate and maintain the same, and the County and the Township are authorized to enter into a contract or contracrs for the acquisition, improvement, enlarge- ment or extension of water supply system and for the payment of the cost thereof by the Township, with interest, over a period of not re..7.ding forty (A0 years and the County is then authorized, pursuant to appropriate action of its Board of Supervisors, to issue its 5onds to provide the funds therefor, secured primarily by the full faith and credit tont-,actual obliga- tion. of the Township to pay the cost. thereof and secondaril y , if 607C of the members elect of the Board of Supervisors so vote, by the full faith and credit pledge of the County; and C. WHEREAS, the Coun t y, by Board of Supervisors Resolu- tion Misc. No 3778, adopted April 11, 196, app,::oved the establishment of the "Oakland County Water Supply System for Farmington Township" (hereinafter sometimes referred to as the "system") in said Township, and authorized and directed the Board to secure plans and specifi c ations for a water supply system there- in, to neotiate a contract or contracts wit the Township for constructing, operating and financing such a system, and to submit such plans, specifications and contract or contracts to the Board of Supervisors for its approval; and D. WHEREAS, pursuant to Contract dated April 1, 1963, Water Supply System "A" then to be acquired and owned by the Township was transferred to the County without cost except for the obligation of the County to const):uet, operate and maintain said Water Supply System "A" for the Township and as part of the system established by the County and said Township has now re- quested the County to acquire and finance, as an extension to the County's cyst m certain water supply facilitis needed to distribute City' of Detroit water in the industrial area of the Township; and E. w-hFrAs, the County, through the Board, has caused plans and an estiffa.te of the cost of acquiring the system to be prepared by Pate, Him n and Bogue. Inc,, consulting engineers of Detroit, Michigan (hereinafter sometimes referred to as the "Consulting Engineers"), which estimate of cost is in the sum of Five Hundred Twenty Thousand Dollars ($520,0W and which cost of so acquiring the extension to the Councy's system may be defrayed by the issuance of bonds by the County pursuant to said Act, secured by the obligation of the Township pursuant to this Agreement to pay to the County the cost of acquiring the said extension to the system (such bonds being hereinaft e r sometimes referred to as the "County bonds"); and F. WHEREAS, in order to effectuate such acquisition and financing of the system, it is necessary for the County and the Township to enter into this Agreement; NOW THEREFORE, in consideration of the premises and the covenants of each other, the parties hereto agree as follows 1, The County and the Township approve the establish- ment of the Oakind County Water Supply System for Farmington Township by the County, under the provisions of Act No, 185, Michigan Public Ac .,:s of 195/, as amended, to provide a water times referred to as the "project"), ' e water supply. supply system to serve the Township and its residents, as a. whole, and the Township consents and agrees to the establishment of said system within its corporate boundaries and consents to the use by the County of the public streets, highways, alleys, lands and rights-of-way of the Township for the purposes of the system. and any improvements, enlargements and extensions thereof. 2= The ex tension to the County's sysreE now to OL, acquired by the County shall consisL of the water supply connec- tion, transmission and distribution facilities, located as shown on Exhibit "A", (the acquisition thereof being hereinafter some facilities shall be constructed substantially in accordance with the plans prepared and filed with the Township Board and the Board of Public Works by th ,' Consulting Engineers, The said plans, and likewise the estimates of cost and period of usefulness, sub- mitted by said Consulting Engineers and set forth in Exhibit are hereby approved and adopted. The said Exhibits "A" and "B", so designated, are hereunto attached and are hereby made parts hereof. 3. The Board shall proceed to (a) secure any final plans and specifications not theretofore secured from the Consulting Engineers for the facilities to be acquired; (b) submit ro the Board of Supervisors c r t h e County such resolutions as may be necessary, duly approved and recommended by the Board, approving -4- $520,000 the F estimateu t of project) or estimate or of th to be borroed, said the Tbrlaip to pay ,ost of the project :ake all verfance of the T contractual obligation to pay - the coc,i- of said pfr in provided, uyal:.?ss the Board of the plans and cifications and t-t...7?, of and period of Fume and of the rounry "'end in one or more 5:erie,s, in the aggregat prineipal amount. of such different amount as may reflet any -15ion tio. bonds to mature serially as b:Qrizad by law, ot a period of approximately 25 years, and to o ecured by the obligation of necessa ,:y steps to secure •'te sdcpc.Lon of said by the Oakland .fd of Suparvlso .znd the approval of the Municipal Finance Commission cf. the State of W.Lehigan for the issuance and sale of the bonds; (d) obtain .',',eo.struction bids for the facilits t.o be acqued ccl enter into contracts with the lowest responsible bidders; (e) advertise, sell. deliver bonds and apply the pro,ceds as herein nrn -wlded (fl con5truct the said facil i ties within a reasonable tle after execution of construction contracts and delivery of the said County bonds; and (g) do all other things required of said Board under the provisions of said No 185 as amended. It 17 und e rstood and agreed :1.1,:st the said County bonds will not be the general obligations of the Cdunty bat, will be payable selely from recelvd by the County from the Township in Supervisots of afFirma vote of its -members :,=?M acquiring Ito. deemed to be eimated elect shall the full t P and credit of the County to the payment of said 7ounty bonds, principal and interest_ 14. T:-...dhshtp shall pay to the County the cost of - cost of $520,M 2 as set fort '13', but subiect to revision. or prov'Aed, The amount To be paid by the Township be diiided into 20 annual installments, numbered in of the ;:cn4rities, The amount of each installment is set forth in. r..:Libit "C" hereto atta c hed and by this reference 7,,r7e a part Said installments shall be due in consecuti .ve trot i.cnl (,:.der on the first day of April in each year, fae?..inain year 1968, and all amounts thereof from time to time wipaid„ shell bear interest from October I, St: the rate of 67 per annum until paid, payable On April I, 1965, and on the first day of April in each year - thereafter, If the amount of in due on April I of any year on unpaid installments, shall be collected by the County in excess of the amount of interest which cv County shall be required to pay upon its said bonds prior- to the next contract principal install- ment due date, then any such excess in the amount so paid after deducting the annual foes and expenses connected with the payment of said bonds, .-c edited pro J.:81 to the Township in acc.c.ae amounts of interest paid by it in such year, u1 ,0:, .s.c511 be applied on the next interest -6- becoming due. If the Township shall fail to pay any installment or interest when the same becomes due, then the amount thereof shall be subject to a penalty, in addition to interest, of 1/2 of I% for each month or fraction thereof that the same remains unpaid after the due date. The annual installments above mentioned shall be paid by the Township without regard as to whether or not the project has then been completed or placed in operation. 5. The Township may pay in advance of maturity any one or more of said principal installments, or any part thereof, to- gether with an amount equal to all interest, premiums, paying agent fees and other charges accruing up to the earliest date upon which bonds in the same principal amount as such pre-payments are or become callable under the terms thereof. The Township may also pay in advance of maturity any one or more of said principal installments, or any part thereof, by surrendering to the County, County bonds of a like principal amount with all future due coupons attached thereto. Where any such pre-payments are made, the installments so pre-paid shall be deemed to be the install- ments falling due in the same calendar year as the bonds called or surrendered, and such bonds and the coupons attached thereto shall be cancelled. 6. In the event that the actual cost of the project shall be less than the estimated cost, then the surplus from the sale of the County bonds shall be used to redeem County bonds prior to -7 maturity or to purchase County bonds on the open market, and in such event the bonds so retired shall be cancelled and the obligations of the Township shall be reduced by the principal amount of the bonds so retired, which reduction shall be applied upon the Township's installment payment for the year of maturity of the bonds so retired. If the actual cost of the project shall exceed the estimated cost, then the remaining installments to be paid by the Township shall be increased pro rata so as to provide full recovery of cost by the County, and the Board shall, if necessary, take steps to secure issuance of additional County bonds to defray the additional cost of the project 7. Should the Township fail for any reason to pay the County 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 Township Board of the Township 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 the Township of funds derived from the state sales tax levy under the applicable provisions of the constitution and statutes of the state and returnable to the Township pursuant to such provisions, is hereby authorized by the Township to withhold sufficient funds derived from such sales tax levy and returnable to the Township as may be needed to correct such default, and to pay said sums so withheld to the -8- ObLf .i.r.ns of the To.ffRsin to which such. funds Board to apply on. the ion of tha as herein set forth, Any such moneys 50 wIthid and paid shall he considered Le have been returned to the Toship within the meaning of the above- mentioned constitutional and sta.:utory pliovisions, the purpose of this provision being solely to authorize voluntarily the use: of said moneys are owed. In addition to the foregoing, shall have all other rights and remedies prov i ded by :Law to enforce the obligation of the Township to 7.41.k'e p,ayments in the manner and at the times required by . The Township pursuant to the authorization, of paragraph (2), Section 12, Act No, 185, Michigan. Public. Acts of 1957, as amended, dos hereby pledge its full faith and credit for the prompt and timely paymnt of its obligLions expressed in this contract and shall each year, commencing with the year 1964, levy a tax in an amount taking. into consideration estimated delinquencies in ta r. collections, will be sufficient to pay its obligations under contract becoming due before the time of the following years tax collections PROVIDED, HWEVER, that if at the time of mak)ng such annual tax levy there shall be other funds on hand earmarked and set. aside for the pay- ment of such contractual obligat•:::.s falling due prior to the next tax collecVlo'n duced by that, to pc ,(71, then annual t..x levy may be re - and agrees it will raise such other funds in the manner provided in paragraph (2), Section 12, Act No, 185, or any amendments thereto, primarily by the exaction of con- nection charges or by the levy of a tax pursuant to the increase in millage authorized by the electors in the Township on August 7, 1962, in amounts sufficient to operate, maintain and repair the system and to pay such contractual obligations. The Township further covenants and agrees that all funds of the system received in the form of connection charges or from debt retirement service charges shall be and are hereby entirely pledged for the payment of said obligaLions, 9. The County does hereby agree to operate and maintain the said system to serve the Township but not to serve any of the individual users of the system in the Township. Such operation, maintenance, repair and management of the system shall be under the immediate supervision and control of the Board of Public Works. The County will provide insurance of such types and such amounts on the system as would ordinarily be carried by private companies engaged in similar enterprise, which insurance shall include sufficient liability insurance protecting the County and the Town- ship against loss on account of damage or injury to persons or property imposed by reason of the ownership or operation of the system or resulting from any act of omission or commission on the part of the County oi the Township, or any agents, officers, or employees of either, in connection with the operation, maintenance or repair of the system, -10- 10. It is understood and agreed that the supply of water for the system is to be procured and purchased by the County from the City of Detroit pursuant to a contract therefor executed by said city and the County. The County agrees to perform all of its obligations under said contract. 11. In order to raise the necessary funds with which to meet its obligations hereunder, and in performance of its agreement. to raise moneys other than by taxation for the making of the pay- ments herein required to be made to the County, the Township shall by appropriate ordinance establish, maintain in effect and collect directly or through the County as its operating agent Such connec- tion, meterm, water consumption and debt service charges as shall be necessary in order to provide revenues sufficient for the operation, maintenance and repair of the system (including as an operating expense the cost of water supplied by the City of Detroit and the costs of the Township or of its agent for billing and collecting) and for the discharge of the obligations of the Township to the County as herein provided. All such revenues as collected shall be set aside and paid into a fund to be established and maintained by the Township or its agent and to be known as the "Water System Revenue Fund" and transferred and paid over to the County within ter. (10) days after the end of each calendar quarter. The expenses of operation, maintenance and repair of the system, including the cost of water furnished by the City of Detroit, shall be paid by the County from said revenues. The balance there- -11- of shall be applied upon the obligation of the Township hereunder to pay its share of the cost of the system, The Board shall, not later than November 1 preceding the beginning of each fiscal year, adopt a budget covering the foregoing .expenses for such year and shall establish rates for water se.7tees of the system. for such year on the basis thereof and of the estimated water use in such year. The system shall be operaLed upon the basis of a fiscal year which begins on January 1 of each year and ends on December 31 of the following year Any and all .remainina in said Water System Revenue Fund at the close of any calendar year from time to time may be used to pr-pay the contractual obligations of the Township. to the County as prok7ided herein or may, with the prior approval of the Township Board, be uSed for the replace- ment, improvement, enlargement or extension of the -zystem, 12. No change in the jurisdiction over any territory in the Township shall in any manner impair the obligations of this contract. In event all or any part of the territory of the Township is incorporated as a new city or is annexed to or be- comes 4 part of the territory of another municipality, the municipality into which such territory. is incorporated or td which such territory is annexed, shall assume the proper propor- tionate share of the contractual obligation of the Township to the County, based upon a division In the same ratio as the assessed valuation of the taxable t)ropery in the territory so annexed or incorporated beJlrs to the a5.3ssed valuation of the -1? taxable territory in the remaining portion of the Township from which said territory is taken. 13. The County and the Township each recognize that the holders from time to time of the bonds to be issued by the County under the provisions of said Act No. 185, Michigan Public Acts of 1957, as amended, and secured by the full faith and credit pledge of the Township 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 by the parties hereto 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 Township and the County further covenant and agree that they will each comply promptly with their respective duties and obligations under the terms of this contract 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 payment of principal and interest thereon. It is hereby declared that the terms of this Agreement insofar as they pertain to the security of any such bonds shall be deemed to be for the benefit of the holders of the said bonds. 14. This contract shall become effective upon approval by the Township Board of the Township, by the Board of Public Works of Oakland County, and by the Board of Supervisors of Oakland -13- County, and when duly executed by the authorized officers of the Township and of the Board of Public Works. This contract shall terminate thirty-five (35) years from the date of this contract or on such earlier date as shall be mutually agreed: PROVIDED, HOWEVER, that it shall not be terminated by mutual agreement or at any rAm- when the Township is in default hereunder or at any time prior to the payment in full of the principal of and interest on the County bonds together with all paying agent fees and other charges perdLn- ing to said bonds. This contract may be executed in sev2ral counterparts. The provisions of this contract shall be in full force and effect and binding upon the successors and assigns of th parties hereto, IN WITNESS WHEREOF, the parties hereto have caused thiis contract to be executed and delivered by their respective duly authorized officers, all as of the day and year first above written COUNTY OF OAKLAND By its Board of Public Works By Chairman By Secretary -1_4- TOWNSHIP OF FARMINGTON OAK L ANO C OUNT'i NIGH 1CIA N By Supervisipt By Town s h. ip Cerk Pi IF ) uI ,II;Di; DISTR ICT UNITS [MCA C.1 DETR On Pi...N.3)415310U 1;1:II L_A VIED'S it112, RD. DISTF Ie L 1 VII a ORAI,Z) RFiti *-3 1-4 11N 14118 ?.D. NIGHT. rut— RD. BASX LI a RD . EXHIBIT ."A" IllikPrZOTC'N TT. TAM IINFLT LISTE )01 COIZAIDIR 24 . 1964 sibutr.--aikt, STrCT ION 11' • t‘ fl WATER M FOR EA T ()snip', SEC TT lvi j.I ear C OUNTY S CliED TILE OF _TINS TALLME NT P A MT'S 1 (165 q 55 1 1969 1970 1 977 1973 1974 1975 I c) cs. 1978 1979 1980 1981 198 7 1983 s 7 -0 - $. 1.0 , 000 „ 000 10,000 15,000 15,000 20,00') 2n C Ci 30 .30 , 35,000 , 35 „ C. 0 35,000 35 ,000 35,000 35,000 EXII I B '0" BE IT FURTHER RESOLVED, that the officers of the Board of Public Works are authorized to execute and deliver such number of original copies of said Agreement as they may deem advisable. Rehard Mr. moved the adoption of the foregoing resolution. The motion was supported by Mr. Wrobel On roll call the resolution was adopted by the following vote; Yeas: Alward, Bachert, Brewer, Campbell, John Carey, Case, Charteris, Cheyz, Davids, Demute, Dohany, J. W. Duncan, Wm. Duncan, Durbin, Edward, Edwards, Ewart, Fouts, Goodspeed, Grisdale, Hall, Hamlin, Heaeock, Horton, Hudson, Hursfall, Ingraham, Julian, Kennedy, Knowles, Laurie, Levinson, Mainland, Marshall, MeAvoy, McGovern, Melchert, Menzies, Mercer, Michrina, Mitchell, 0 7 Donoghue, Oldenburg, Osgood, Patnales, Potter, Potthoff, Powers, Rehard, Rhinevault, Seeterlin, Sinson, Slavens, Smith, Tapp, Terry, They, Tinsman, Turner, Veil, Webber, Wrobel. (62) Nays: None. (0) Absent: Allerton, Bloc, Brickner, James Carey, Clarkson, Dewan, Forbes, Hagstrom, Kephart, Lahti, Levin, Lessiter, Linley, Maier, Miller, Moore, Perinoff, Remer, Stephenson, Travis, Woods, Yockey. (23)