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HomeMy WebLinkAboutResolutions - 1966.02.08 - 19701At a regular meeting of the Board of Supervisors of Oakland County held in the Supervisors' Auditorium in the County Service Area in the City of Pontiac, Michigan, on Tuesday the 8th day of February, 1966, at 9:30 o'clock A. M. , Eastern Standard Time. PRESENT: Allerton, Alward, Bachert, Beecher, Brewer, Carey, Case; Charter's, Cheyz, Demute, Dewan, Dohany, Duncan, Edward, Forbes, Fouts, Frid, Gabler, Goodspeed, Grisdale, Hagstrom, Hamlin, Heaeock, Horton, Houghten, Huhn, Johnston, Kennedy, Kephart, Lahti, Laurie, Lessiter, Linley, Macdonald, Maier, Mainland, Mastin, McAvoy, Melchert, Mereer,Mills, Mitchell, Nelson, OYDonoghue, Oldenburg, Olson, Patnales, Peterson,Powers, Rehard, Remer, Rhinevault, Rowston, Simon, Slavens, H. Smith, W. Smith, Strong, Tapp, They, Tinsman, Travis, Turner, Valentine, Val, Walker, Wilcox, Woods. (60 ABSENT: Brickner, Clarkson, Cohen, Durbin, Frye, Hall, Hudson, Hursf all, Ingraham, Knowles, Levinson, Menzies, Miller, Potter, Solberg, Terry, Webber, Yockey. (18) Misc. 4536 Recommended by Board of Public Works Re: WDCOM SEWAGE DISPOSAL SYSTEM Submitted by Mr. Rehard Mr. Chairman, Ladies and Gentlemen: I offer the following resolution, which was approved and recommended by the Board of Public Works: Resolution proposed by Oakland County Board of Public Works with respect to WIXOM Sewage posa1 System WHEREAS, the Oakland County Board of Supervisors by resolu- tion, Miscellaneous No. 4419 adopted on February 23, 1965, established the Wixom Sewage Disposal System to serve the entire area in the City of Wixom and directed the Oakland County Board of; Public Works to submit a contract with the City of WiXOM in respect to the construc- tion, operation and financing of said system; and WHEREAS, the Board of Public Works has submitted to this Board plans and specifications for the Wixom Sewage Disposal System, an estimate of cost and an estimate of the period of usefulness thereof, prepared by Hubbell, Roth & Clark, Inc., registered profes- sional engineers, all of which have been approved by the Board of Public Works; and WHEREAS, the Oakland County Board of Public Works on , 1-9.63', did approve a form of Contract to be dated as of October 1, 1965, between the County of Oakland and the City of Wixom for the construction, operation and financing of the Wixom Sewage Disposal System and did authorize the Chairman and Secretary of the Board of Public Works to execute said Contract subject to the appro- val of this Board of Supervisors; and WHEREAS, the City of Wixom 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 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, a Contract to be dated as of October 1, 1965, between the County of Oakland and the City of Wixom, which reads as follows: WIXOM SEWAGE DISPOSAL SYSTEM CONTRACT THIS CONTRACT, made and entered into this 1st day of October 1965 , by and between the COUNTY OF OAKLAND, 9 a Michigan county corporation (hereinafter referred to as the "County"), party of the first part and the CITY OF WIOM, being a city corporation located in the County of Oakland, Michigan (here- inafter 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 sewage disposal 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 Department 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 some- times 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. 4419, adopted February 23, 1965, established the Wixom Sewage Disposal System (herein called the "System"), which system is to consist of trunks and laterals and treatment facilities to collect, transport and treat sanitary sewage from said Municipality; and WHEREAS, said act authorizes the County to acquire sewage disposal 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 sewage disposal system and for the payment of the cost thereof by the Municipality, 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 to provide the funds therefor, secured by the full faith and credit contractual obligation of the Municipality; and WHEREAS, said act provides, in the opinion of the. Municipality and the County, the fairest and mostequitable means of acquiring the sewage disposal 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 hoard, has caused preliminary plans and an estimate of cost of the System to consist of sewage disposal facilities necessary to adequately serve the Municipality to be prepared by Hubbell, Roth & Clark, Inc., con- sulting engineers of Pontiac, Michigan ( hereinafter sometimes re- ferred to as the "Consulting Engineers"), which said estimate of cost is in the sum of Four Million Six Hundred Thousand Dollars ($4,600,000); and WHEREAS, in order to issue such bonds, it is necessary that the County and said Municipality enter into this Contract; and -2- WHEREAS, it is also necessary for the County and said Municipality to contract relative to the operation and maintenance of. said sewage disposal system and the location thereof entirely within 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 Wixom and County of Oakland, under the provisions of Act 185, Public Acts of Michigan, 1957, as amended, which is to collect, transport and treat sanitary sewage originating in the area to be served thereby, which area shall consist of the en- tire •City of Wixom, and which area is shown on a map hereto attached marked Exhibit "A" and made a part hereof and is hereby designated as the WIXOM SEWAGE DISPOSAL DISTRICT (hereinafter sometimes referred to as the "District"). 2. The sewage disposal system referred to in paragraph 1 above has been designated by the County Board of Supervisors as the WIXOM SEWAGE DISPOSAL SYSTEM and shall consist of trunks and laterals and treatment facilities to be located substantially as indicated on Exhibit "A" attached hereto. 3. The County and the Municipality hereby approve the esti- mate of $4,600,000 as the cost of said sewage disposal facilities which estimate shall consist of the items set forth in Exhibit "B" attached hereto and by this reference made a part hereof, and the estimate of 50 years and upwards as the period of usefulness thereof, all as prepared by the Consulting Engineers. Said sewage disposal facilities are hereinafter sometimes referred to as the "project." -3- 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 Engineers. (b) Submit to the Board of Supervisors of Oakland County a resolution,• duly approved and recommended by the Board providing for the issuance of bonds : in one or more series in the: aggregate principal amount of $4.,60M00 (being the present estimated cost of the project) 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 authorizeclby law, Over a period of approximately thirty-five (35) 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 Super- visors, 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 Boa-rd will take all necessary procedures to obtain the appro- vals 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 -4- construction contracts with the lowest responsible bidders, and sell and deliver the bonds in the manner authorized by law. (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 a11 other things required of it under,the provisions of Act 185 of the Public Acts of Michigan, 1957, as amended,. S. It is understood and agreed by the parties hereto that the Systemis to serve the Municipality And not the individual property owners and users thereof., unless by special agreement between the Board and the Municipality. The ropponsibility of requiring connection to and use of the sanitary sewage trunks and laterals of the System and of providing such additional trunks 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 facilities for. collection and delivery of all sanitary sewage in the City. The County shall not be obligated by this agreement to serve any area outside the district described in paragraph 1 hereof, or to construct any facilities other than those designated in.paragraph 2 hereof. 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 "B" attached hereto and any other items of cost of a sim-ilar nature as may be set forth in any revision of Exhibit "B" agreed to by the parties hereto. -5- 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 sewage'disposal capacity of the property in the territory so annexed or incorporated bears to the population equivalent of the property for sewage disposal capacity in the remaining 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 computed at an assumed interest rate of 4% 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 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 handling 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 -6- 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 I%) 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 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. 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 paying the principal, interest and call premium required to call the bonds on the next available call date. 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 '(1O) 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 pursuant to Article X, Section 23 of the Michigan Constitution, is by these presents specifically authorized by the Municipality to withhold sufficient funds_derived from such sales tax 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 de- faulting Municipality as herein set forth. Any such'moneys so with- held and paid shall be considered to have been returned to the Municipality within the meaning of Section 23, Article X of the Michigan Constitution; the purpose of this provision being solely to voluntarily authorize the use of such funds to meet past due obliga- tions of the Municipality to which said moneys.are owed. In addi- tion to the foregoing, the Board shall have all other rights and remedies provided by law to enforce the obligation of the Municipality to make payments in the manner and at the times required by this Con- tract. 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 Municipality covenants and agrees that it will make its required payments to the Board promptly and at the times herein specified, without regard as to whether the project herein contemplated is actually completed or placed in operation4 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, -8- 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. 10. If the proceeds of the sale of the original bonds to be issued by the County for the project are for any reason in- sufficient to complete the project in accordance With the plans and specifications therefor, the -Board shall, if _necessary, submit to the Board of Supervisors-of OakIaud County a resolution providing for the issuance of additicraai bonds in an .amount necessary to provide 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. mannerspecified in paragraph 7 of this Contract, shall be 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 Municipalityto provide the necessary funds. to complete the project. 11. The Municipality, pursuant to the authorization of paragaph (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 1966, 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 -9- 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 may be 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 r (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 completion of said System the County hereby leases the said system to the Municipality during the term of this Contract, upon the fol- lowing 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 -10- 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 reim- bursement for any expense incurred by the County shall be made by the Municipality to the County within thirty (30) days after the expense has been incurred. (c) The Municipality shall adopt and continue in existence and shall enforce an ordinance or ordinances requiring the connections of premises in the Municipality to sanitary sewer outlets and concerning the use of and the payment of charges for the use of the System. (d) The Municipality shall not permit the discharge into said System of any sewage in violation of the. standards and regulations controlling the discharge of industrial and/or commercial type waste into the System or into any other. County system as said standards and regulations may be promulgated from time to time by the Board. (e) The Municipality shall make and collect from the in- dividual users of the System such charges for sewage disposal service as shall be sufficient to pay the cost of the operation and maintenance of the System and to establish,suitable reserves for operating and main- taining the System. Such charges may also include an amount determined by the Municipality to be used -11- 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 be- come due. The Municipality agrees to lease the System from the County upon the foregoing terms and conditions. and for the period of this Con, tract ,and agrees to pay the sum of $1.00 per-year on January 1st of each year commencing January 1, 1906, 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 issued by 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.con- tractual rights in this Contract and it is 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 Municipality 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 spt 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 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 -12- 15. This Contract shall become effective upon approval 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 (SO) years from the date of this Contract, or on such earlier date when the Municipality 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 Contract maybe 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. 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 OAKLAND By its Board of Public Works By Ch4irMan By Secretaty CITY OF WIXOM By Mayer By City Clerk -13 - SANITARY SEWERS SEWAGE TREATMENT PLANT SITE WIXOM, MICHIGAN EXHIBIT "N. O a „0. a... Reg,: I 4, , (Lk IS, 20, 21. 22, 23. 24, 26. 27. '.4.7 • 9 Conti.n-metco: ;71.7 — 0 0 á 0 o o o 0 0 = 0 0 a a * * C) a C)Mt a a a a a a. a C) 0 a a a , VE • a a a al 9 $ 619,301.. OG a 0 C)$ 12-10-65 EXHIBIT "C" CITY OF WIXOM PRELIMINARY STUDIES RE: BOND MATURITY SCHEDULE TO RETIRE $4, 600, 000 BOND ISSUE INTEREST COMPUTED AT 4-1/4% FROM 5/1/66 To Be Provided In City Interest Tax Levy Principal Interest Due Total Due Due Due Following Principal July 1 Nov. 1 Nov. I May 1 & Interest* . 1966 $ -0- ($97, 750. 00) ($97, 750. 00) (Capitalized) 1967 -0- 97,750.00** 97,750.00 $195,500.00 1968 50,000. 97, 750. 00 96, 687. 50 244, 437. 50 1969 70,000 96, 687.50 95,200.00 261, 887.50 1970 80, 000 95, 2.00. 00 93, 500. 00 268, 700. 00 1971 85,000 93, 500. 00 91, 693.75 270, 193.75 1972, 90,000 91, 693.75 89, 781. 25 271, 475. 00 1973 95,000 89,781.25 87, 762, 50 272, 543.75 1974 100,000 87,762.50 85, 637. 50 273, 400. 00 1975 105,000 85, 637.50 83, 406. 25 274, 043.75 1976 110, 000 83, 406.25 81,068.75 274, 475. 00 1977 115,000 81,068.75 78, 625. 00 274, 693. 75 1978 125,000 78, 625.00 75, 968.75 279, 593. 75 1979 130, 000 75, 968.75 73, 2,06. 25 279, 175.00 1980 135,000 73, 206 25 70, 337 50 278, 543.75 1981 140, 000 70, 337.50 67, 362. 50 277, 700, OQ 1982, 150, 000 67, 362.50 64, 175.00 281, 537.50 1983 155,000 64, 175.00 60, 881. 25 280, 056. 25 1984 160,000 60, 881. 25 57, 481. 25 278, 362. 50 1985 165,000 57, 481. 25 53,975.00 276, 456. 25 1986 170, 000 53, 975.00 50, 362.50 274, 337.50 1987 175, 000 50, 362.50 46, 643.75 272, 006.25 1988 185, 000 46, 643.75 42, 712. 50 274, 356, 25 1989 190,000 42, 712.50 38, 675, 00 271, 387.50 1990 200, 000 38, 675.00 34, 425. 00 273, 100.00 1991 210,000 34, 425.00 29, 962. 50 274, 387. 50 1992 220,000 29, 962.50 25, 287. 50 275, 250. 00 1993 230,000 25, 287. 50 20, 400. 00 275, 687. 50 1994 240,000 20, 400. 00 15, 300. 00 275,700.00 1995 240,000 15, 300. 00 10, 200. 00 265, 500. 00 1996 240, 000 10, 200.00 5, 100.00 255, 300.00 1997 240, 000 5, 100.00 -0- 2.45, 100.00 $4, 600, 000 *To be paid to County prior to November 1 each year. **All or part of this could be capitalized if desirable to do so. EXHIBIT "C " 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 Contract as they may deem advisable. Mr. Chairman, I move the adoption of the foregoing resolution. Supported by Mr. Lahti. ADOPTED. AYES: Allerton, Alward, Bachert, Beecher, Brewer, Carey, Case, Charteris, Cheyz, Demute, Dewan, Dohany, Duncan, Edward, Forbes, Fouts, Frid Gabler, Goodspeed, Grisdale, Hagstrom, Hamlin, Heacock, Horton, Houghten, Huhn, Johnston, Kennedy, Kephart, Lahti, Laurie, Lessiter, Linley, Macdonald, Maier, Mainland, Mastin, McAvoy, Melchert, Mercer, Mills, Mitchell, Nelson, 0/Donoghue, Oldenburg, Olson, Patnales, Peterson, Powers, Rehard, Berner, Rhinevault, Rowston, Shnson, Slavens, H. Smith, W. Smith, Strong, Tapp, They, Tinsman, Travis, Turner, Valentine, Val, Walker, Wilcox, Woods. (68) NAYS: None. (0) ABSENT: Brickner, Clarkson, Cohen, Durbin, Frye, Hall, Hudson, Hursfall, Ingraham, Knowles, Levinson, Menzies, Miller, Potter, Solberg, Terry, Webber, Yockey. (18)