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HomeMy WebLinkAboutResolutions - 1965.09.20 - 19635September 20 , 1965 presented the Agreement and the Mr. Rehard The following resolution was offered by Mr. Behard Miscellaneous Resolution. No, 4482 Recommended by the Board of Public Works Re: FARMINGTON SEWAGE DISPOSAL SYSTEM, EVERGREEN SEWAGE DISPOSAL SYSTEM, WALNUT LAKE ARM plans and specifications and estimates referred to in the following resolution, a copy of which•Agreement has been saa.k.to each member of the Board of Supervisors. Resolution proposed by Oakland County Board of Public Works with respect to Farmington and Evergreen Sewage Disposal System-Walnut Lake Arm WHEREAS, the Board of Public Works has submitted to this Board construction plans and specifications for the Walnut Lake Arm and estimates of cost and period of usefulness thereof, prepared by the registered professional engineers for the Department of Public Works, all of which have been approved by the Board of Public Works; and WHEREAS, the Oakland County Board of Public Works on , 1965, did approve a form of Agreement to be dated August 15, 1965, between the County of Oakland, the Township of West Bloomfield, the Township of Bloomfield and the Township of Farming- ton for the extension of the Farmington. and the Evergreen Sewage Disposal Systems to be known as the Walnut Lake Arm, and did authorize the Chairman and Secretary of the Board of Public Works to execute said Agreement subject to the approval of this Board of Supervisors; and WHEREAS, the above mentioned municipalities constitute all of the parties needed to contract with the County for 100% of the cost of the project; and WHEREAS, the said Agreement has been executed by the said municipalities, NOW THEREFORE BE IT RESOLVED, that the said construction plans and specifications and estimates of cost and period of use- fulness be approved and the County Clerk is hereby authorized to endorse on said plans and specifications and estimates the fact of such approval and return same to the Board of Public Works. BE IT FURTHER RESOLVED, that the Chairman and Secretary of the Board of Public Works be and they are hereby authorized and directed to execute and deliver on behalf of said County of Oakland, an Agreement to be dated August 15, 1965, between the County of Oakland, the Township of West Bloomfield, the Township of Bloomfield and the Township of Farmington, which reads as follows: AGREEMENT FARMINGTON AND EVERGREEN SEWAGE DISPOSAL SYSTEMS WALNUT LAKE ARM THIS AGREEMENT made this 15th day of August, 1965, by and between the COUNTY OF OAKLAND, a Michigan county corporation (here- inafter Called the "county"), by and through its Board of Public Works, party of the first part, and the TOWNSHIP OF WEST BLOOMFIELD, the TOWNSHIP OF BLOOMFIELD and the TOWNSHIP OF FARMINGTON, municipal corporations in the County of Oakland (hereinafter called the "municipalities"), parties of the second part. WITNESSET H: 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 of establishment of the Farmington Sewage Disposal System (herein called. the "Farmington System") to serve the Farmington Sewage Dis- posal District (herein called the "Farmington District") within which district lies part of the Township of West Bloomfield and the Township of Farmington; and WHEREAS, pursuant to the Farmington Sewage Disposal System Agreement, dated November 1, 1957, as .amended by amendatory agree- ments 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, municipal corpora- tions 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 provi- sions of said agreement, as amended (herein referred to as the "Farmington Base Agreement"); and 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 of 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 lies part of the Township of Bloomfield; and WHEREAS, pursuant to the Evergreen Sewage Disposal System Agreement, dated November 10, 1958, as amended by amendatory agree- ments dated December 22, 1958, and February 9, 1959, all between the County of Oakland and the Cities of Birmingham, Bloomfield Hills, Lathrup Village, Troy and Southfield, the Village of Westwood (now Beverly Hills) and the Townships of Bloomfield and Pontiac, municipal corporations in said County of Oakland, the said county, acting thru its Department of Public Works, did acquire the original Evergreen System and did finance such acquisition by the issuance or bonds in anticipation of payments to be made by said municipal Corporations to the county in accordance with the provisions of said agreement, -2- as amended (herein referred to as the "Evergreen Base Agreement"); and WHEREAS, the Township of Bloomfield having entered into the Evergreen Base Agreement with the county, the sewage collected in the Walnut Lake Arm pursuant to this Agreement from said township will be diverted by the county at the expense of said township into the said Evergreen System within ten years or sooner if necessary to enable the Farmington System to carry the full quantity of sewage emanating from the Farmington District; and WHEREAS, Act No. 185 of the Michigan Public Acts of 1957, as amended, grants to the board of •public works in any county having a Department of Public Works the power to extend any system acquired pursuant thereto; and WHEREAS, it is necessary to extend the Evergreen and the Farmington Systems by construction of the so-called Walnut Lake Arm (hereinafter sometimes referred to as the "Arm") in said municipali- ties under the provisions of Act No. 185 of the Michigan Public Acts of 1957, as amended, for the purpose of collecting and disposing of sewage originating within that part of the Farmington. District and of the Evergreen District located in said municipalities, and to issue bonds to finance such Arm in anticipation of the collection by the county of amounts to become due under this Agreement between the county and the municipalities, parties hereto, whereby these munici- palities agree each to pay a certain sum towards the cost of such Arm; and WHEREAS, no other municipality in the Farmington or Evergreen Districts will be affected by the construction of said Walnut Lake Arm; and -3- WHEREAS, in order to issue such bonds, it is necessary that the county and the said municipalities, parties hereto, enter into this Agreement; and , WHEREAS, the Department of Public Works (hereinafter some- times referred to as the "DPW") has obtained plans, specifications and an estimate of cost for the construction of said Arm, prepared by the registered professional engineers for the DPW and a map show- ing •the approximate route of said Arm, which estimate of cost is attached hereto as Exhibit B and by this reference made a part hereof, and which map is attached hereto as Exhibit A and by this reference made a part hereof. THEREFORE, IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES HERETO, as follows: 1. The plans and specifications for the Walnut Lake Arm as prepared by the registered professional engineers for the DPW are hereby approved and adopted in the form initialed by the parties hereto under the date hereof, and the estimate of cost thereof is approved and adopted in the amount of $1,737,000 as set forth on Exhibit B hereto attached. The said Arm shall consist of sewers located approximately as set forth and generally shown on Exhibit A hereto attached. The said plans and specifications and estimate of cost shall be submitted to the county board of supervisors, together with an ordinance or resolution approved by the Oakland County Board of Public Works, providing for the issuance of bonds by the county as hereinafter provided, in an aggregate principal sum not exceeding the amount of the capital cost as hereinafter defined. -4- If such bond ordinance or resolution shall be adopted by said board of supervisors, then the DPW shall proceed to secure bids for the construction of the project, to secure bids for the purchase of the bonds, to award the construction contracts and to issue the bonds, and shall cause the project to be constructed within a reasonable time thereafter. 2. The said Walnut Lake Arm (herein sometimes referred to as the "project") is designed for, and shall be used for, the collection and transportation of sanitary sewage only. Said project may be divided into sections by the DPW for purposes of construction and the letting of construction contracts. 3. Said Arm being an extension of that part of the Farmington and Evergreen Systems heretofore constructed and being a part of the ultimate county system to serve the Farmington and Evergreen Districts, the provisions of paragraphs 3 thru 5 and 11 thru 18 of the two Base Agreements shall continue in full force and effect notwithstanding this Agreement. The said Arm is designed so that said Arm will serve the parts of the Township of West Bloom- filed and the Township of Farmington located in the Farmington District and the areas in the Township of Bloomfield located in the Evergreen District. Properties within said municipalities to be served by said Arm shall be connected to the Arm or to the Evergreen or Farmington Interceptors only upon such terms and conditions as are prescribed by the municipalities, as may be appropriate, in addition to the terms and conditions prescribed in the two Base Agree- ments, which conditions shall be applied so that the ultimate cost -5- of connection of all properties in the area in the same classifica- tion as to size, use, time of connection and quantity of.sewage• emanating therefrom shall be approximately equal. The county or the municipalities shall not permit the discharge into said Walnut Lake Arm of any sewage in violation of the two Base Agreements. 4. Each of said municipalities shall pay to the county, to cover the capital cost of the Walnut Lake Arm, a sum equal to that produced by applying the following percentages to the capital cost thereof, to-wit: Township of West Bloomfield 84.6042% Township of Bloomfield 15.3054% Township of Farmington .0904% Total 100.0000% The term "capital cost" as above used, shall include all items of cost of the type set forth in Exhibit B 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, incurred by the county in acquiring and constructing the Arm, 5. The amount to be paid by' each municipality shall be divided into 25 annual installments, numbered in direct order of their maturities. The aggregate amount of each installment as to each municipality and the division thereof between the municipalities are set forth in Exhibit C hereto attached and by this reference made a part hereof. Said installments shall be due in consecutive numerical order on the first day of.April in each year, beginning -6 with the year 1967, and all amounts thereof from time to time unpaid, shall bear interest from the_date of the bonds to be issued by the county, at the rate of 6% per annum until paid, payable on April 1, 1967, and on the first day of.April in each year thereafter. If.the amount of interest due on April 1 of any year on unpaid installments, shall be .collected by the county in excess of the amount of interest which the county shall be required to pay upon its said bonds prior to the next contract principal installment due date, then any such excess in the amount so paid after deducting the annual fees and expenses connected with the payment of said bonds, shall be credited pro rata to the municipalities in accordance with the several amounts of,interest paid by them in such year, which credit shall be applied on the next interest becoming due. If any municipality 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 1% for each month or fraction thereof that the same remains unpaid after the due date. Each municipality may pay in.advance of maturity all or any part of an annual installment by surrendering.to the county bonds issued in anticipation of payments to be made under this contract, of a like principal amount maturing in the same calendar year ) with all future due interest coupons attached thereto., Accrued interest upon the amount so paid upon any installment, and accrued interest upon the bonds surrendered, shall be adjusted to the date of surrender and any difference shall be paid in cash. All surrendered bonds and coupons shall be canceled. 6. The percentages mentioned in paragraph 4 above shall be computed upon the estimated cost until the actual cost has been determined. If the actual cost shall be less than the estimated cost, then any surplus from the sale of bonds therefor shall be used to purchase such bonds on the open market, or applied proportionately on the payment or payments next due hereunder, and in such event the aggregate installment from the municipalities in the year or in each of the years in which the bonds so purchased mature, or for which credit is given shall be reduced by the principal amount of such bonds or credit and each municipality shall be credited in accordance with its percentage as set forth in paragraph 4 hereof. Any bonds so purchased shall be canceled. The estimated cost above referred to shall be that set forth in Exhibit B hereto or as revised prior to the issuance of bonds. If the actual cost shall be greater than the estimated cost, then the additional amount shall be allocated between the municipalities in accordance with the percentages set forth in paragraph 4 hereof, and the several then remaining install- ments for each municipality shall be increased accordingly, and the county shall issue additional bonds against such increases or shall take such other action to finance such excess cost as shall be agreed by the parties hereto. 7. Each municipality does hereby pledge its full faith and credit for the prompt payment of the aforesaid obligations and shall each year levy a tax in an amount which taking into considera- tion estimated delinquencies in tax collections, will be sufficient for the prompt payment of any amount falling due before the time of the following year's tax collection, unless at the time of making such annual levy there shall be cash on hand (as provided for in paragraph (2), Section 12, of Act No. 185, Public. Acts of 1957, as -8- amended) earmarked for the payment of the current obligations for which the tax levy is to be made, in which case the annual tax levy may be reduced by that amount. Funds for which credit may be so taken, may be raised in the manner provided in paragraph (2), Section 12 of said Act 185, Public Acts of 1957, as now existing or hereafter amended. 8. The county shall issue its negotiable bonds to defray the capital cost of said Arm, which bonds shall be secured primarily by the full faith and credit pledges of the several municipalities under. this Agreement, and secondarily by the full faith and credit of Oakland County if authorized by a three-fifths (3 ./Sths) vote of the members elect of the board of supervisors, as provided for in paragraph (2), Section 11 of said Act 185, Public Acts. of 1957, as amended. Said bonds shall be issued pursuant to the provisions of said act and the applicable general statutes of the state, where not in conflict with said act. 9. The provisions of this Agreement shall not be modified or terminated so as to impair the security of any bonds issued by the county upon the full faith and credit pledges of the munici- palities. 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 said bonds. 10. The municipalities consent to the use by the county of the public streets, alleys, lands and rights-of-way in each for the purposeof constructing, operating and maintaining the Walnut Lake Arm and of any improvements, enlargements and extensions thereto. -9- The municipalities each reaffirm their covenants and warranties that all sanitary sewage originating in their respective areas shall be delivered only to the Farmington or the Evergreen Systems including extensions thereto, for transportation therein and ultimate disposal. Lands (other than highways) owned by or under the jurisdiction of the municipalities or the county, located within the Farmington or the Evergreen Districts, shall be liable, if sanitary sewage emanates therefrom, to the same extent as privately owned lands, to pay the charges for sewage disposal services with respect thereto. 11. This Agreement shall become effective upon being approved by the legislative bodies of the municipalities and by the board of public works and board of supervisors of.Oakland County and properly executed by the officers of the municipalities and of the board of public works. This Agreement shall terminate when the two Base Agreements terminate. IN WITNESS WHEREOF, the parties hereto have caused this Agreement 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 -10- By By By By Supervisor Township Clerk SiipetVisor - ToWnship . Clerk TOWNSHIP OF WEST BLOOMFIELD TOWNSHIP OF BLOOMFIELD TOWNSHIP OF FARMINGTON By Supervisor By Township Clerk Li- EVERGREEN SEWAGE DISPOSAL SYSTEM AND FARMINGTON SEWAGE DISPOSAL SYSTEM WALNUT LAKE ARM PROTECT COST ESTIMATE Construction - West Branch 763 lin. ft. 30" sewer @ $ 29.55 = $ 22,546.65 1811 lin. ft. 27" sewer @ 26.90 = 48,715.90 657 lin. ft. 21" sewer @ 24.25 = 15,932.25 8386 lin. ft. 15" sewer E 13.70 = 114,888.20 9867 lin. ft. 12" sewer @ 14.06 = 138,730.02 1435 lin. ft. 10" sewer @ 20.14 = 28,900.90 2868 lin. ft. 8" sewer @ 10.48 = 30,056.64 96 Ea. Manholes @ 473.60 = 45,465.60 4617 lin. ft. 16" Force Main @ 15.00 = 69,255.00 1 Ea. Pump Station No. 1 = 75,000.00 1 Ea. Outlet Structure = 3,400.00 1 Ea. Meter Chamber = 8,375.00 Sub-Total = $ 601,266.16 Construction - East Branch 3085 lin. ft. 24" sewer EL, $ 16.60 = $ 51,211.00 3993 lin. ft. 21" sewer (C- 15.60 = 62,290.80 2919 lin. ft. 18" sewer @ 13.77 = 40,194.63 9800 lin. ft. 15" sewer e 15.39 = 150,822.00 4367 lin. ft. 12" sewer @ 14.78 = 64,544.26 7777 lin. ft. 10" sewer @ 13.00 = 101,101.00 3505 lin. ft. 8" sewer e 13.82 = 48,439.10 131 Ea. Manholes @ 471.96 = 61,826.76 1890 lin. ft. 8" & 12" F. M. @ 11.46 = 21,659.40 2 Ea. Pump Stations = 80,009.34 1 Ea. Diversion Chamber = 6,000.00 Sub-Total = $ 688,098.29 Total Construction = $1,289,364.45 EXHIBIT B Page 2.- - Project Cost Total Construction = $1,289,364.45 Engineering = 66,820.81 Legal & Financial = 16,117.06 Adrnint,strative (DPW) = 324 2-34* 1 1 Legal & Administrative. (1wp.) = 12,893.64 Inspection = 32,234.11 Soil Borings = 3,908.69 Easement Acquisition = 29,000.00 Preliminary Expense = 5,243.19 Contingency = 128,936.44 Metering Equip. & Install. (DPW) = 3,000.00 Sub-Total = $1,619,752. SO Capitalized Interest for 18 months on $1,727,000.00 Bond Issue $ 117,247.50 Total Project Cost = $1,737,000.00 The period of usefulness is estimated to be 40 years and upward. / /7„?e / Ralph A. Main, P. E. Neree D. Mix, P. E. /F.0 EXHIBIT B VALNUT LANE ARivi EVERGREEN AND FARMINGTON SEVVAGE DISPOSAL SYSTEMS OAKLAND COUNTY, MICHIGAN ESTIlviATED COST $1,737,000 APPORTIONMENT OF COST AND ANNUAL PRINCIPAL INSTALLMENTS TO BE PAID BY i\.IUNICIPALITIES Municipality IN est Bloomfield Bloomfield Farmington Township Township Township Total Amount 84.6042% $1,469,574.95 15.3054% .0904% 100.00% $265,854.80 $1,570.25 $1,737,000 Installment Due 4-1 1967 -0- -0- -0- (Int. Only) 1968 -0- -0- -0- (Int. Only) 1969 $ 27,073.95 $ 4,897.80 $ 28.25 $ 32,000 1970 59,223.00 10,714.00 63.00 70,000 1971 71,914.00 13,010.00 76.00 85,000 1972 84,604.00 15,305.00 91.00 100,000 1973 84,604.00 15,305.00 91.00 100,000 1974 84,604.00 15,305.00 91.00 100,000 1975 84,604.00 15,305.00 91.00 100,000 1976 84,604.00 15,305.00 91.00 100,000 1977 84,604.00 15,305.00 91.00 100,000 1978 134,604.00 15,305.00 91.00 100,000 1079 84,604.00 15,305.00 91.00 100,000 1980 76,144.00 13,775.00 31.00 90,000 1981 76,144.00 13,775.00 81.00 90,000 1982 76,144.00 13,775.00 81.00 90,000 1983 76,144.00 13,775.00 81.00 90,000 1984 76,144,00 13,775.00 81.00 90,000 1985 42,302.00 7,653.00 45.00 50,000 1986 42,302.00 7,653.00 45.00 50,000 1987 42,302.00 7,653.00 45.00 50,000 1988 42,302.00 7,653.00 45.00 50,000 1989 42,302.00 7,653.00 45.00 50,000 1990 42,302.00 7,653.00 45.00 50,000 Total $1,469,574.05 $265,854.80 $1,570.25 $1,737,000 EXHIBIT C Mr. Rehord moved the adoption of the foregoing resolution. The motion was supported by Mr. Case On roll call the resolution was adopted by the following vote: Yeas; Allerton, Alwrd, Bachert„ Beecher, Brickner, Carey, Case, Charteris, Cheyz, Clarkson, C6hen, Demute, Dewan, Dohany, Duncan, Durbin, Forbes, Fouts, Frid, Frye, Ooodspeed, Crisdale, Hagstrom„ Hall, Hamlin, He7q7ocR, Horton, Houghten, Hudson, Huhn, Hursfall, Ingraham, Johnston, Kennedy, '.(e.1,1-„,,rt, Lahti, Laurie, Lessiter, Lin ley, Macdonald, Maier, Mainland, Mpstin, Mevoy, Melchert, Menzies, Mercer, Miller, Mills, Mitchell, OtDenoghue, Oldenburg, 0s7cod, Patnales, Peterson, Potter, Powers, Rehard, Rhinevault, Rowston, Seeterlin, Siton, Slovens, WM. Stith, Tapp, Tiley, Tinsman, Travis, Turner, Valentine, Veil, Webber, Wilcox, Woods. (76) Nays: None, (0) Absent: Casey, Edward, Krowles, Levinson, Nelson, Remer, H. Stith, Solberg, Terry, YccJcey.(10)