HomeMy WebLinkAboutResolutions - 1965.02.23 - 19579presented the plans, specifications, Mr. Rehard
At a regular meeting of the Board of Supervisors of
Oakland County, Michigan, held in the Supervisors Room in the County
Building, Pontiac, Michigan, on the 23rd day of February , 1965,
at 10:00 o'clock A.M., Eastern Standard Time
PRESENT:
Bachert, Campbell, James Carey, John Carey, Case, Charteris, Cheyz, Davids,
Dewan, Dohany, J. W. Duncan, Wm. Duncan, Durbin, Edward, Edwards, Ewart,
Forbes, Fouts, Goodspeed, Grisdale, Hagstrom, Hall, Hamlin, Heacock,
Horton, Hursfall,Ingraham, Johnston, Julian, Kennedy, Kephart, Knowles,
Laurie, Lessiter, Linley, Maier, Mainland, Marshall, McAvoy, McKinlay„
Melchert, Menzies, Michrina, Mitchell, OtDonoghue, Oldenburg, Osgood,
Patnales, Perinoff, Powers, Rehard, Remer, Rhinevault, Seeterlin,
Simson, Slavens„ Smith, Solley, Stephenson, Tapp, Terry, Tiley, Tinsman,
Travis, Turner, Webber, Woods, Wrohel, Yockey. (69)
ABSENT:
Allerton, Alward, Bloe, Brickner, Casey, Clarkson, Demute, Hudson, Lahti,
Levinson, Mercer, Miller, Moore, Potter, Potthoff, Von.. (16).
.• Miscellaneous Resolution No. 4417
Recommended by Board of Public Works
Re: PONTIAC TOWNSHIP WATER SUPPLY SYSTEM
estimates and contract mentioned in the following resolution, a copy
of which contract has been sent to each member of the Board of
Supervisors.
Rehard The following resolution was offered b
WHEREAS, the Oakland County Board of Public has
approved and adopted, and has submitted to this Board of Supervisors
for its approval, plans and specifications for the acquisition of
the Pontiac Township Water Supply System, together with estimates of
$1,342,000 as the cost of and forty . (40) years and upwards as the
period of usefulness thereof, all prepared by Hubbell, Roth & Clark,
Inc,, registered professional engineers; and
WHEREAS, the Board of Puclic Works has also approved and
submitted to this Board of Supervlors for its approval, a pro7esed
contract between the County of Calnd and the Township of Pontiac
relative to the acquisition and financing of said system; and
WHEREAS, the Township Board of said Township has approved
the said contract and has authorized and directed that it be executed
for and on behalf of theTownship by the Township Supervisor and the
Township Clerk;
THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF
OAKLAND Cc". T, MIhIGAN, as follows:
1. 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 contract between the County of Oakland and
the Township of Pontiac be and the same hereby is approved, and that
the Chairman and the Secretary of the said Board of Public Works be
and they are hereby auhorized and directed to execute and deliver
said contract for and on behalf of the County of Oakland including
the obligation of said County to pay for the share of the cost of
said water supply system required to serve Oakland University in
said Township and County, in as many original copies as they may
deem advisable, the said contract being as follows:
WATER SUPPLY SYSTEM CONTRACT
BETWEEN
OAKLAND COUNTY AND PONTIAC TOWNSHIP
THIS CONTRACT, made and entered into this day of
1965, by and between the COUNTY OF QiKJND,
a Michigan county corporation (hereinafter referred to as the
"County"), party of the first part, and the TOTTISHIP OF PONTIAC, a
Michigan township corporation located in said County (hereinafter
referred to as the "Township"), party of the second part;
WITNESSETH;
WHEREAS, there is now available to serve certain areas of
the Township a supply of water of improved quality and dependable
quantity from the City of Detroit, and in order to make use of such
supply and to provide an adequate and efficient water supply for the
more populous areas of the Township and thus to promote the health
and welfare of its present and future residents, it is essential
that pumping stations and transmission mains be installed to connect
to and to supply certain local systems now serving separate areas
and to provide additional lateral distribution facilities to serve the
growing requirements of the Township; and
afforded by Act 1%To 185, Michigan Public Acts of 1957, as ended,
WHEREAS, there is n said Township the Oakland
University and ths County is willing to contract to pay a share of
the cost of the Pontiac Township Water Supply System necessary to
serve said Oakland University; and
WHEREAS, it appears that the most feasible and economical
means of providing and financing such water supply facilities is
and its accordingly ompL$ed that the County construct the said
additional facilities, that cH ounty operate such pumping stations
and transmission mains to supply the Township and to serve Oakland
University and lease the additional lateral distribution facilities
to the Township, and that the cost of so acquiring said water 777.-ply
facilities and also said additional lateral distribution facilities
be defrayed by isE“ance of bonds by the County pursuant to said Act,
secured the obligation of the Township and of the County on
behalf of Oakland University to pay to the County the cost of
acquiring the same (such bonds being hereinafter sometimes referred
to as the "County bonds"); and
WHEREAS, pursuant to the provisions of said Act, the County
has established a Department of Fvblic Works for the administration
of the powers conferred upon the CevmLy by said Act, ,h,i01 Depart-
merit is administered by a Board of 77%Tic Works (hereinafter some-
times referred to as the "Board') unUer the general control of the
Board of Supervisors of the County; and
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 maintuln the same, and the County and -
the Township are authorized to enter into a contract for the
acquisition, improvement, enlargement or extension of such water
supply system and for the payment of the cost thereof by the Township
and the County, with interest, over a period of not exceeding forty
(40) years, and the County is then authorized, pursuant to appro-
priate action of its Board of Supervisors, to issue its bonds
provide the funds therefor, secured by th(z full faith and credit
contractual obligation of the Township and of the County to pay
cost thereof; and
WHEREAS, the County, by Board of Supervisors Resolution
Misc. No 4291, adopted March 6, 1964, approved the establishment of
the "Pontiac Township Water Supply System' tereinaiter sometimes
referred to as the 'system") to serve all of the unthcorporated areas
of said Towns hip as a whole, and authorized and directed the Board
secure plans and specifications for the location, construction
and acquisition of a water supply system therein, to negotiate a
contract or contracts with the Township for the location, construc-
tion, financing an ,'! operation of such a system, and to submit such
plans, specifications and contract or contracts to the Board
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Supervisors for its approval, alc with such other resolutions
which may be required in connection with the financing of said
system; and
WHEREAS, it is proposed that certain of the existing water
supply systems presently owned or to be acquired by the Township be
operated by the Township along with thaadditional lateral dis-
tribution facilities to be acquired by the County and leased to the
Township, and that the pumping stations and transmission mains be
acquired and operated by the County, all such facilities and the
areas to be served thereby being substantially as shown on Exhibit
"AP attached hereto and by this reference made a part hereof; and
WHEREAS, the County, through the Board, has caused plans
and specifications and an estimate of the cost of acquiring the new
water supply facilities to be prepared by registered professional
engineers, said estimate of cost being attached hereto as Exhibit
"B" and by this reference made a part hereof; and
WHEREAS, in order to effectuate such acquisition and
financing of the system, it is necessary for the County and Township
to enter into this contract;
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 establishment
of the "Pontiac Township Water Supply System" by the County under
the provisions of Act ro. , Michigan Public Acts of 1957, as
amended, to provide a -;;ater supply system to serve the Township
and its residents and Oakland University and the Township consents
and agrees to the establishment of said system within its corporate
boundaries and 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 system to be acquired by the County shall consist
of the pumping stations and transmission mains whleh are identified
and located as shown on. Exhibit A, and also the additional lateral
distribution facilities, which arc identified and are to be located
as shown on Exhibit A, which additional facilities shall constitute the
system to be acquired as herein provided (the acquisition thereof
being hereinafter sometimes referred to as the "project"), The
-additional facilities shall be constructed :::bstantially in accor-
dance with the plans and specifications prepared and filed with the
Township Board and the Board of Public Works by its registered
professional engineers. The said plans and specifications, and
likewise the estimates of cost and period of usefulness submitted
by said engineers and set forth in Exhibit B, are hereby approved
and adopted. The said Exhibits A and B, so designated, are hereunto
attached and are hereby made parts hereof,
3. The Township presently owns all of the existing water
supply systems describd in Exhibit A and agrees to operate and
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as hereinafter ided,
maintain the same and to connect them to the County pumping stations
and transmission mains whell completed. The Township shall also
operate and maintain the additional lateral distribution facilities
constructed by the County en ,ed, as lessee of the County
4. The Board shall, upon execution of this contract by
both parties, take such of the following actions as have not there-
tofore been taken:
(a) contract with the IL"./ of Detroit for
an adequate supply of treated water to
be delivered to the system at one or
more points in the Township;
(b) proceed forthwith to connect the exist-
ing water supply systems in the Township
to the City of Detroit water supply;
(c) secure any necessary additional plans
and specifications from the engineers
for the facilities to be acquired;
submit to the Board of Supervisors of
the County such resolutions as may be
necessary, duly approved and recommended
by the Board, approving the plans and
specifications and the estimate of cost
and period of usefulness and providing
for the issuance and sale of the County
bonds in one or -:ore series, in the
aggregate principal amount of the
estimated cost of the project or such
different amount as may reflect any
revision in the estimate of cost or of
the amount necessary to be borrowed,
said bonds to mature sertally as
authorized by law, over a. p•d of not
less than twenty-five (25) and not more
than thirty (30) years, and to be
secured by the obligation of the Township
and of the County to pay net cost of
the project with interest;
(a)
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(e) take all necessary stens to secure the
adoption of said reFti ,7s by the
Oakland County Boaro of Surervisors and
the app7'oval of tr,:F Municipal Finance
Commission of the State of Michigan for
the issuance and sale of the bonds;
(0 obtain construction bids for the
facilities to be acquired and enter
into construction contracts with the
lowest responsible bidders;
(g) advertise, sell and deliver the said
bonds and apply the proceeds as herein
provided;
(h) construct the said facilities within
a reasonable time after execution of
constdion contracts and delivery
of the said County bonds and turn over
the leased portions thereof to the
Township as herein provided; and
(i) do all other things required of said
Board under the provisions of said
Act No 185, as =ended
It is understood and agreed that the said County bonds will be pay-
able in the first instance from moneys received by the County from
the Township and the County in performance of their respective
contractual obligations pay the net cost of said project as
herein provided, but with the full faith and credit of County to be
pledged, by appropriate action of its Board of Supervisors, in pay-
ment of the principal of and interest on said County bonds.
5. The ToT'Thi and the County for Oakland University
shall pay to the County the not cost of the project, which shall be
deemed to be the estimated cost thereof as set forth in Exhibit B,
but subject to _.justment as hereinafter provided. The principal
amount of such cost which is due and payable in each year shall be
-7-
paid by the Township and the County to the County in installments
as set forth on Exhibit "C" attached hereto and by this reference
made a part hereof, The total principal amount from time to time
remaining unpaid shall bear interest from June 1, 1965, which accrued
interest shall be paid by the Township and the County to the County
on April 1 and October 1 of c!'n year, beginning April 1, 1966 and
continuing until the net cost of the project is paid in full, and
such interest shcll be at such rates from time to time so that the
amount cY,u. and payable on each such date will be sufficient to pay
all interest (not capitalized), paying agent fees and other charges
becoming due during the next six months on or on account of the
County bonds from time to time outstanding. The Board shall within
30 days after delivery of ad bonds to the purchaser, furnish the
Township and the County with a complete schedule of maturities of
principal and interest thereon, and the Board shall also, at least
30 days before each Township and County payment is due, advise the
Township and the County of the exact amount payable by each on such
date If the Twnship or the County fails to make any payment when
due, the whole amount thereof (including interest) not so paid shall
be subject to a penalty of 1% thereof for each month or fraction
thereof that the same remains unpaid after the due date. The
principal installments and the interest above mentioned shall be
paid by the Township the County without regard as to whether or
not the project has been completed or the system placed in operation.
6. The Township or the County may pay in advance of
maturity any one or 715,J2e of said principal installments, or any part
thereof, together with an amount equal to all interest, premium
paying agent fees and other charges accruing up to the earliest date
upon which bonds in the same principal amount as s;,17.h pre-payments
are or become callable under the terra; thereof. The Township or the
County 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 principal aii:71unL with all future
due cr;.:;rs attached thereto. Where any such pre-payment.s are made,
the installments so pre-paid shall be deemed to be the installments
falling due in the same calendar year as the bonds called or
surrendered, and such bonds and the coupons attached thereto shall
be cancelled.
7. In the event that the actual cost of th project all
be less than the estimated cost, then the surplus from the sale of
the County bonds shall be used to redeem. ;:;unty bonds prior to
maturity or to purchase County bonds on the open market, or if such
use is then impossible or impracticable, such surplus shall be
invested by the Board and so used when possible or practicable, and
whenever such surplus is so used the bonds so retired shall
cancelled and the principal obligations of the Township and the
County shall be reduced by the principal amount of the bonds so
retired, which reduction shall be applied pro rata upon the Town-
ship's and the County's principal installment payments for the yar
of maturity of the bonds so retired. If the actual cost of the
t shall exceed the estimated cost, then the remaining princi
installments and interest thereon to be paid by the Township and
-9-
said sums so withheld to the ounty to apply on the obligation of
the Countyshall 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.
. 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 '27,)w -aship 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 ccothor ty official ehaL?zed with disburse-
ment to the Township 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 the Township pursuant to the Michigan
Constitution, is hereby t•orized by the Township to withhold
sufficient funds derived from such sales tax levy and returnable to
the Township as -nzy be needed to correct such default, and to pay
the Township as herein set fcrth. Any such moneys so withheld and
paid shall be considered to been returned to the To•wnship with-
in the meaning of the Michigan Constitution, the EoLe purpose of
this provision being voluntrily to a!:,thorize the use of such funds
to meet past due obligations of the Township hereunder. In addition
to the foregoig, the County shall have all other rights and remedies
provided by c •n:Zoce the obligation 7awnship to make
payments in the manner and at the times regired by this contract.
-1 0-
. The Township and the County pursuant to the .authoriz
don of paragraph (2), Section 12, Act No, 135, Michigan Public Acts
of 1957, as amended, does each hereby pledge its full faith and
credit for the prompt and timely payment of its obligations
expressed in this contract and, subject to applicable constitutional
tax limitations and any lawful increases thereof, shall each year
commencing with the year 1965, levy a tax in an amount which, taking
into consideration estimated delinquencies in tax collections, 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 Township or tht. County shall have on hand in cash other funds
which have been set aside and pledged for the payment of such
contractual obligations falling due prior to the time of the next
tax collections, then the annual tax levy may be rduced by such
amount. The To7nhip and Conry herey each coveranLs and
agrees that it will raise such other fund ,, in the ma=ar provided in
said paragraph (2), Section 12, Act No 185, or any amendments
thereto, in amounts sufficient, after payment of all expenses of
operation, maintenance and repair of the system, to pay such
contractual obligations, that it will set aside the same for such
purpose, and that the funds so raised are ereby pledged for the
payment of said obliti•ns.
10. The County does hereby agree to operate and maintain
the said pumping stations and transmission mains to serve the Town-
ship and the County for Oakland University but not to serve any of
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the individual users in the Ti; other than
facilities, existing toiwn&lip owned wells will be discrtinued
Oakland University. Such operation, mv:enance, repair and
management of such facilities shall be under the .:ate super-
vision and control of the Board of Public Works.
lateral distribution facilities to he constructed by
shall be leased to the Town apDropriate lease to LL here-
after executed and such facilities and the existing local water
supply systems owned by the Township shall be operatlnd and maintained
by the Township to distribute water supplied by.the County from its
when water from Detroit is avable thru the County facilities,
The Township will provide ins-,Lrance of such types and suc. 71nts
on the water system as au -d ordinarily be c.a=led by private
companies engaged in similar enterprise, which insurance shall
include sufficient liability insurance protecting the County and the
Township against loss OD account of damage or injury to persons or
property imposed by reason of the .:Irship or operation of the
system by either or resulting from any act of omission or comni7ical
on the part of the County or the Township, or any a;ens, officers,
or employees of either, in connection with the operation, main.-
tenance or repair of the system.
, It is understood and agreed that w7tply of water
for the systPm is to be procured and purchased by the County from
the City of Detroit pursuant to a contract therefor to be executed
by said city and the County. Tha County agrees to perform all of
its obligations under said contract,
12. 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 payments
heroin 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 connection,
meter, 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 '.c ,f,aship 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 7 .rcv,n as the '7ater System
Revenue Fund" There shall be transferred and paid over to the
County within thirty (30) days after the end of each calendar quarter
an amount equal to one-fourth of the annual obligation of the
Township hereunder to pay its share of the cost of the system plus
the cost of water supplied by the County to the Township for said
quarter as billed to the I'onship by the Ccunty. The Board shall
establish rates for water sq.:plied to the Township on the basis
the estimated water use and the County's expenses of operating,
maintaining and repairing (including reserves therefor) of the
County facilities and of the purchase of water from the City - of
Detroit The system shall be op,?raLed upon the basis of a fiscal
year which begins on January I year and ends on December 31
-13-
shall assume its proper tionate share of the contractual
effected by the inclusion of said Oakland University in any nfl It
as amended, and .,;taGred by the full faith and credit each
of the same year Any and all rvenues 7,77iing in said Water
tam Revenue Fund at the close of any caid;nder year from time to
time may be used to pre-pay the contractual obllgaions of the
Township to the County as pro ,.7i6ed herein or may, with the prior
V
approval of the be used for the improYant, enlargement or
I
extension of the system.
. No change in the jur over any territory in
the Township shall in e ..77 manner impair thf, ,obligations of this
contract. In event all or any part of the territory of the Township
is incorp ,v'e...:--c— a y 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,
obligation of the Township to the County, based upon a di .Yision in
the same ratio as the revenues from the portion of the system located
in the territ:cri E0 annexed or incorporated bears to the revenues
from the portion of system located in the remain .:Lng portion of
the Township from wheh said territory is taken. The obligation of
the County hernder on L:ehif of Oakland University shall not be
of local government.
14. The County and 1.the Township each recognizes that the
holders from time to time of bonds to be issu,t; by the County
under the provisions of said i85, Michigan Public Acts of 1957,
/.
the Ttrnship of the County to the making of its paym,:nts as set
forth in this contract, will have contractual
and it is therefore covenanted and agreed by the
so long as any of said bonds shall remain outstan
3 in this contract,
Les hereto that
and unpaid, the
provisions of this contract shall not be subject to any alteration
or revision which would in any manner reduce or -Impair either the
1. security of the bonds or the pr t payment of principal or interest
thereon- The Township and the County further covenant and agree
that t:hy will. each comply promptly with their respective duties
and obligations under the terms of this contract at the LiDes and
in the manner herein sot foth, and will not suffer to be done any
act which would in any way i=ir the said bonds, the secut7
therefor, or the prompt payment of principal and interest thereon
It is hereby declared that the f this agreement in so far
as they pertain to the security of any such bls shall be deemed
to be for the benefit of the holders of said bonds,
15, This contract shall become effective upon its approval
by the Tomnship Board of the 77,n1hshtp, by the Board of Public Works
. of Oakland County, and by the of. Supervisors of Oakland County,
and when duly executed by the atrized officers of the Township
and of the County. This o ,7ritaz shall terminate when all obliga-
tions of the TownsIllp and the County hereunder are paid and
discharged in full but not later than forty (40) years from its date.:
PROVIDED, however, that it shall not he terminated at any time when
the Township or the County is in default hereunder or at any time
prior to the payment in ft.111 of the principal ot: and interest on the
By
Secrete
7713hip Clerk
County bonds together with agent fees and other charges
pertaining to said bonds. This contract may be executed in several
cogihterparts, The provisions of this contract shall be binding
u77 -the succ,--s and assigns of the parties hereto -
IN -.41:17:1ESS WHEREOF, the: parties 1-.',e,:reto have caused this
contract to be executed and delivered by their respective duly
authorized off icers all as of the day and year first above written..
COUNTY OF OAKI,AND
By its Board of Public Works
By
Chairman
1 ;, Z.
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The adoption of the foregoing resolution was moved by
Mr. Rehard and seconded by Mr. Case
On roll call the resolution was adopted by the following
vote:
Yeas:
Bachert, Campbell, James Carey, John Carey, Case, Charteris, Cheyz, Davids,
Dewan, Dohany, J. W. Duncan, Wm. Duncan, Durbin, Edward, Edwards, Ewart,
Forbes, Fouts, Goodspeed, Grisdale, Hagstrom, Hall, Hamlin, Heacock,
Horton, Hursfall, Ingraham, Johnston, Julian, Kennedy, Kephart, Knowles,
Laurie, Lessiter, Linley, Maier, Mainland, Marshall, McAvoy, McKinlay,
Melchert, Menzies, Michrina, Mitchell, OtDonoghue, Oldenburg, Osgood,
Patnales, Perinoff, Powers, Rehard, Remer, Rhinevault, Seeterlin,
Simson, Slavens, Smith, Solley, Stephenson, Tapp, Terry, Tiley, Tinsman,
Travis, Turner, Webber, Woods, Wrobel, Yockey. (69)
Nays: None, (0)
Absent:
Allerton, Alward, floe, frickner, Casey, Clarkson, Demute, Hudson, Lah
Levinson, Mercer, Miller, Moore, Potter, Potthoff, Voll. (16)
STATE OF MICHIGAN )
) cc:
COUNTY OF OAKLAND )
D., Murphy, Clerk of the County of Oakland, State
of Michigan, do hereby certify that I have compared the annexed copy
roceedings of the Oakland County Board of Supervisors taken at a
Regular meeting held on February 23 , 1965, in rel
PONTIAC TOWNSHIP WATER SUPPLY SYSTEM, with the original record
thereof now remaining in my office, and that it is a true and correct
transcript therefrom, and of the whole thereof .
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
the seal of said County of Pontiac ; Michigan, this 23rd da:7, o f
February , 1965.