Loading...
HomeMy WebLinkAboutResolutions - 1966.02.08 - 19703Ar- d At a regular meeting of the Board of Supervisors of Oakland County held In the Supervieors Auditorium in the County Service Area in the City of Pontiac, Michigan, on Tuesday the 8th day of Fe.brUary, 1966, at 9:30 o'clock A. M. , Eastern Standard Time. PRESENT: 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, O'Donoghue, Oldenburg, Olson, P atnale s , Peterson,Pouers, Renard, Remer, Rhinevault, Rowston, Simson, Slavens, H. Smith, W. Smith, Strong, Tapp, They, Tinsman, Travis, Turner,. Valentine, Voll, Walker, Wilcox, Woods. (68) ABSENT: Brickner, Clarkson, Cohen, Durbin, Frye, Hall,-Hudson, Hursfall, Ingraham, Knowles, Levinson, Menzies, Miller, Potter, Solberg, Terry, Webber, Yockey. (10 - At 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 the day of February, 1966, at 9:30 &clock A. M, Eastern Standard Time PRESENT: ABSENT: 4538 Recommended by Board of Public Works Re: KEEGO HARBOR WATER SUPPLY SYSTEM Submitted by Mr. Rehard Mr. Chairman, Ladies and Gentlemen offer the following resolution, which was approved and recommended by the Board of Public W.:)r to the construction, operation and firanc:i f said System; and the Keego Harbor Water Supply tern and did authorize the Chairman Resolution proposed by C'.4&land County Board of Public Workb with respect to Keego Harbor Water Suaaly System WHEREAS, the Oakland County Board of Supervisors by resolu- tion, Miscellaneous No, 4365 adopted on October 5, 1964, established the Keego Harbor Water Supply Systm to serve the entire area in the City of Keego Harbor and directed the Oakland County Board of Public Works to submit a contract with the City of Keego Harbor in respect WHEREAS, the Board of Public Works has submitted to this Board plans and specifications for the Keego Harbor Water Supply System, an estimate of cost and an estimate of the period of useful- ness thereof, prepared by Spalding, DeDecker & Associates, Inc,, registered professional engineers, all of which have been approved by the Board of Public Works; and WHEREAS, the Oakland County Doard of Public Works on , 1965, did approve a form of Contract to be dated as of December 1, 1965, between the County of Oakland and the City of Keego Harbor for the construction, operation dnd financing of and Secretary of the Board of Public Works to execute said Contract subject to the approval of this Board of Supervisors; and WHEREAS, the City of Keego Harbor 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- mess be approved and the County Clerk 15 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 December 1, 1965, between the County of Oakland and the City of Keego Harbor, which reads as follows: HTTN S E the heego Harbor Supply System (herein calld KEEGO HARM 7 SUPPLY SYSTEM CONTRACT THIS CONTRACT, made and entered into this 1st day of December, 1965, by and between the COUNTY Or OAKLAND, a TUJ_:higan county corporation (hereinafter referred to as the "County), acting by and through Its Department of Public Works, party - of the frt part, and the CITY 07 KZZGO HARBOR, being a city corporation located in the County of Oakland, Michia (hereinafter referred to as the ality h ), party of the secocd part; WHEREAS, it is immediately necessary and inp o ra o.ivc for the public health and welfare of present and fu.tur of the above Municipality that adEate and proper wP...t7 pply facilities be acquired and constructed to serve the 2_11t,ira aiwu thereof; and WHEREAS, the Co -„In4, under the provisions of A ,:b 185, Public Acts of Michigan, IS7, as amended, has .established a -g3part- ment of Public Works for the administration of the poers cionfe_72cd upon the County by said Act, which Department is uode: thu 17:77ediate control of a Board of i'!:a011.. Works (hereinafter sc ,,Itimes referred to as the ''Board"), and under the general control of th,?, of Supervisors of the County of Oakland; and WHEREAS, the County of Oakland, by Board of Spervfions Resolution Misc No, 4365, adopted October 5, 1964, sac:fcliiLihed which Sesi is to consist of transmission mains, distribution lines ard -elated fllities and a contract to purchase water fJr,om City of Detroic to be acquired to supply water in the ::.LmicipLity; and WiEFCAS, said act authorT:zes the County to acquire water supply systems as defined in said act and to improve, enlarge, extend and operate such syste and WHEREAS, by the terms of said: the County and the Municipality are authorized to enter into a contract for the acquisition, improvement, enlargement or extension of a water supply system and for the payment of the cost thereof by the Municipality, with interest, over a per17,j not excee d ing forty (40) years, and the County is then authorized, •rzuant to appropriate action of its Both of Supervisors, to issue its bonds to provide the funds there- for, secured by the full faith and credit contractual obligations of the Municipality and if the bond. resolution so provides, by the full faith and credit of the County; and WHEREAS, said act provides, in the opinion of the Munici- pality and the Couty, the fairest and most equitable means of acquiring the water supply facilities so vitally ne•essary for the public; health and t4elfare of the residents of the founty within the district to be served, at the c-sT, reasonable cost; and WHEBI::A=.;, the Onty, through the Board, has caused preliminary plans and an estimate of cost of the System to consist of water supply facilities necessary to adequately serve the Municipality to be prepared by Spalding, DeDecker & Associates, Inc. consulting engineers of Birmingham, Michigan (hereinafter sometimes referred to as the ''Consulting Engineers"), which said estimate of cost is In the sum of Seven Hundred Forty-Five Thousand Dollars ($745,000) and , THEREFORE, in consideration of premises and the ment of the em in City and County of Oakland, amended, which is 1).ire, transport and deliver City of Detroit water to the area to be served thereby, whinf.i area 11 consist of the entire Keego Harbor, and which area 1..s on a map ty C 3. The County and the ipality hereby approve the WV777 in order to issue such bonds, it is necessary that treCenty and sal enter into this Contract; and T.E.F.LAS, it is also necessary for the County and said :uhicipality to contract relative to the operation and maintenance of said water supply system and the location thereof entirely with- in the limits of said city; covenants of eabh other, the parti e.rete aree s follows 1. The County and the Munielpalitv approve the establish- under the provisions of Act 165, Public Aets of Michigan, 1957, as hereto aL:ac ..3d marked Exhibit 'A' and made a part hereof and is hereby designated as the KEEGO HARBOR WATER SUPPLY DISTRICT (herein afte ,,,mtimes referred to as the "Di .f,trict"). 2. The water supply system referred to in paragraph 1 above has been designated by the County Board of Supervisors as the KEEGO HARBOR WTER SUPPLY SY= and shall consist of mains, lateral - and related failities to he 1047ated substantially as indicated on Exhibit he attached hereto. estimate of $745,000 as the cost of sal .d water supply facilities which estimate shall consist of the set forth in Exhibit 'B" attated !,ereto and by this reference r,),de a part hci and the estimate of 50 years and upwards as the period of usefulness thereof all as prepared by the Consulting Engineers. Said water supply facilities are hereinafter sometimes referred to as the project n , 4. After the execution of this Contract by the County and the Municipality, the 3oard 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 $745,000 (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 authorized by law, over a period of approxi- mately thirty (0) years, which bonds will be secured primarily by the payments hereinafter provided to be made by the Municipality, to the making of which its full faith and credit is hereby pledged, and secondarily, if approved by a three-fifth (3/5th.) majority of the members elect of the Board of Supervisors, by the full faith and credit of the County of Oakland. (c) After the Board of Supervisors of Oakland County has adopted the bond resolution, the Board will is 1:1derstood and agreed by parties hereto that 5. take all hecsary procedures to obtain the appro- vals necessary to the issuance of the bonds by the Municipal Finance Commission of the State of Mic.17., obtain construction bide for the project and enter into construction contracts with the lowest respon- sible 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 b e b all cause the prAect to be c o nstructed within a roe: time and do all otnn things required of it under the provisions of Act 185 of Acts of Michigan, 1957, as amended. the System is to serve the Municipality - and not the individual pro- perty ownrs and users thereof, unless by special arrangemert bet ween the Board and the Municipality, The responsibility of requL:., connection to and use of the water supply mains and laterals of the System and of providing such additional mains and laterals, as needed, shall be that of the Municipality which shall cause to be constructed and maintained directly or through the County, the necessary faeili- ties for supply and delivery of City of Detroit water in the City The County L•111 not be obligated by this agreement to serve any areas outside the district described In paragraph i hereof, or to construct any facilities other than those designated in paragraph 2 hereof. rae Municipality shall pay to the County the entire or any part of the .;..ist of the facilities of the System financed by the population equivalent for water supply capaci C the property in 4,7 issuance by the County of its bonds as herein provided. The term cost" as US.Sd herein shall be construed to include all items of cost of the type set forth in Exhibit n ir attached hereto and any other items of cost of a similar nature as may be set forth In revision. of Exhibit 'T" agreed to by the parties hereto, No -change in the jurisdiction over any territory in the Municipality shall in any manner impair the obligations of this contract based upon the full faith and credit of the Municipality, In event all or any part of the territory of the Municipality which is in the area served by the System is incorporated as a new city or is annexed to or consolidated with or becomes a part of the territory of another municipality, the municipality into which such territory is incorporated or to which such territory is annexed, shall assume the proper proportionate share of the contractual obligation and right to capacity- in the System of the Municipality, from which such territory is taken, based upon a division in the same ratio as the the territory so annexed or incorporated bears to the population equivalent of the property for water supply capacity in the remaining portion of the Municipality from which said territory is ta],.en 7. Attached hereto as Exhibit C , and by this reference made a part hereof, is a schedule of the annual principal and interest payments to be made to the County by the Municipality com- puted at an assumed Interest rate of It% 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 notlfy 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 Munici- pality hereby covenants and agrees, not less than thirty (30) days prior to the due date of any principal of or interest and fees and charges (exclusive of capitalized interest) on any such bonds, to remit to the Board sufficient funds to meet said payments in full. The obligation herein expressed shall be applicable to all bonds issued by the County to Construct and complete the project, as herein defined,, whether issued at one time or at more than one time. It is assumed that the nrincibal of the bonds represents the cost of the project. If funds are available from the Municipality or ,ar, other source to pay the project cost, or any portion thereof, prior to the issuance of bonds, them 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 s':Lct to a penalty in addition to interest of one-half of one percent (1/2 of 1%) for each month or fraction thereof that the same re:ma::.ns unpaid after the due date. The Municipality may pay in advance of maturity all or any part of an annual installment due the County, by surrender- ing to the County bonds issued in anticipation of 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 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 (10) days after such notification, the County Treasurer or other county official charged with disbursement such Municipality of funds derived from the state sales tax levy under the provisions of Act 167, Public Acts of Michigan, 1933, as amended, and returnable to such Municipality pur- suant to the Michigan Constitution, is by these presents specifically authorized by the Municipality to withhold • sufficient funds derived from such sales tax levy and returnable to the unic±paiity as may be needed to correct such default, and to pay said sums so withheld to the Board to apply on the obligation of the defaulting Municipality as herein set forth. Any such moneys so withheld and .paid shall be considered to have been returned to the Municipality within the mean- ing of the Michigan Constitution, the purpose of this provision being solely to voluntarily authorize the use of such funds to meet past due obligations of the Municipality to which said moneys are owed. In addition to the foregoing, the Board shall have all other rights and remedies provided by law to enforce the obligation of the Munioi- pality to make payments in the manner and at the times required by this Contract. It is specifically recognized by the Municipality that the payments required to be made by it pursuant to the terms of this Contract are to be pledged for the payment of the principal of and interest on bonds to be issued by the County, and the 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 operation; provided, only that nothing hereio contained shall limit the obligation of the Qerf,:.?r:n in accordance with the promises and covenants contained herein, 9 A fi let -ion of the ct and i .rcent 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 aneu,:: of bonds so called or purchased, said reduction to be applied as to year, in accordance with the year of the maturity of the bonds so called or purchased, Any bonds so called or purchased shall be cancelled. In the alternative, said surplus may be used at the request of the Municipality and upon approval by the Board of Supervisors, to improve, enlarge, or extend the System in the Municipality, 10, If the proceeds of the sale of the original bonds to be issued by the County for the project are for any reason insuffi- cient to complete the project in accordance with the plans and specifications therefor, the Board shall, if necessary, subiLlt to the Board of Supervisors of land County a resolution providing for the issuance of additional bonds in an amount necessary to pro- vide funds to complete the project in which event the duties and obligations of the Board and the Municipality as expressed and set forth in this. Contract shall be applicable to such additional issue of bonds as well as the original issue, it being at all times fully recognized and agreed that the payments to be made by the Municipality, In the manner specified in paragraph 7 of this ::irTh•ract, shall be based non the aggregate amount of the bonds outstanding In lieu of the issuance of such additional bonds, any other method may be agreed upon by the County and the Municipality to rovide the necessary funds to complete the project, -9- g IL The Municipality, pursuant to the authorization of paragraph (2), Section 12 of Act 185, Public, Acts of Mchigan, 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 1967, levy a tax in an amount which, taking into consideration estimated delin- quencies in tax collections, will be sufficient to pay its obliga- tions under this Contract becoming due before the time of the fol- lowing year's tax collections; PROVIDED, HOWEVER, that if at the time of making such annual tax levy there shall be other funds on hand earmarked and set aside for the payment of such contractual obligations falling due prior to 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 (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 (I), subparagraph (b), Section 11 of said Act 185, Publ'c Acts of Michigan, 1957, as amended, 13. The Municipality consents to the estatlisnment and location of said System entirely within its corporate limits. Ur2C7 completion of said System rne County hereby leases the said System to the Municipality during the term of this Contract, upon the follow- ing terms and conditions: (h) The ..rnic;Dallty, at its c nse, shall maln- The lic i (a) The System shall be used and operated by the Municipality in compliance with the contractual and legal obligations applicable to the Municipality. (e) tain 6-a:_d System in good condition and repair, to the sat1sis of the of Public works The Bo ard of Public Works shall have the right to inspect the said System at any time and if said Sysmc any part thereof is not in a state of good and repair, then the Board of Fubli Work>,-; shall notify Auncipality in writing as to any deficiency. ality shall fail to restore the System to a god condition and within a reastie time thereafter then the Board of Public shall have the right to the necessary work and furnish the necessary materials, and rellement for an7 expense incurred by the County shall he made by th.e, .;:nicipality to the County within thirty (3C) days after the expens been incurred, ality shall adopt and continue in existence and shall enforce an ordinance or ordinances concerning the connections of premises in the M.niclal1ty to the System and concerning Pe the use of and the y.). arge for the use the System. (d) The Municipality shall make and collect from the individual users of the System such charges for water supply service as shall be sufficient to pay the cost of the operation and maintenance of the System, the cost of purchasing water from the City of Detroit and to establish suitable reserves for operating and maintaining the System. Such charges may also include an amount determined by the Munici- pality to be used to meet the obligations of the Municipality to the County under this Contract. The Municipality shall enforce prompt payment of all such charges as the same shall become due. The Municipality agrees to lease the System from the County upon the foregoing terms and conditions and for the period of this Contract and agrees to pay the sum of $1,00 per year on January let of each year commencing January 1, 1967, and in addition to perform its covenants and agreements set forth in this Contract as a rental for said System. l4 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 Con- tract, will have contractual 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 noon. The Munici- or the prompt payment of principal or interest pality and the County further covenant and agree that they will each comply with their respective duties and obligations under the terms of this Contract promptly, at the times and in the manner herein set forth, and will not suffer to be done any act which would in any way impair the said bonds, the security therefor, or the prompt pay- ment of principal and interest thereon. It is hereby declared that the terms of this Contract in 2 -2 far as they pertain to the security of any such bonds, shall be deemed to be for the benefit of the holders of said bonds. 15. This Contract shall become re 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 autherized.officers of the Municipality and of the Board of Public Works. It sb911 terminate fifty (50) years from the data of this Contract, or en such earlier date when the Municipality is not in default thereunder and the principal, interest and bond handling . charges on the bonds Issued as hereinabove described are fully paid and discharged. This Con- tract may be executed in several counterparts. The provisions of this Contract shall be in full force and effect and binding upon the successors and assigns of the parties hereto. IN WITNESS WHEREOR, 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. C=iTZ JF OAKLAND By Its Board of Public Works By Chairman CITY OF KEP(7.0 HARBOR By Mayor By City fterl 53,i-3055vUw3L NAlaaS ,10,313n21+ it: Th $•,,,,Om 1143141Wch420 ONS,INVE) V lleiHX3 \--aogq,4 0 ••••.C) Lk, .7•n ••-•D: • - Lc; ;•=-e, (i•J Cr, 0 , p c.): 0-) c C:) Ci •- fi, C.) ( • •••••-•_, cr..) C) Ct.. C., C, f•-••• - c.(1 c-r• • rt • 1..T: • C; CO C.) (..) C.) C.) C) C.) C.) CD C) C.) C) C.) CS) C) C., 0 C' .) \L.) • C) CD C) • C.) CD C) C.) iCC E).) IS")) t-,) r..••0 t"-,1 ••• .•„C, in c(D• Cr) Cr.) C. CD CD C.- ) cl) CD CD C, •;•,". (-0 U.) r...) N.) C C.) C.-) C..) CI) C> C-) C> C"..) Ctd- C.-) C..) C., C., C.") C., C.-, C.) C.-.) C.7) r„-) C_T) CS") C-) C) C.> C.) Cf, C..) CD CI CD CS) CD C-.) C.) C.: ct.:-.) C.-.) .-., CZ, CZ.) CD C.> <7..) C.) C.) C.) c7. C.L.-.) (7? C C) CC C , C.") C.) C.) (,) C.) C.) (.1) C..) C.) C.) C7) C.") Ci C.) (i) 0 C.) C) C) C.) C.> •J!,- ) C") C.) C.) C) C. C.> ().-, U.) 1-11-, )[:-.). C11 (xi tA> J-1 CT.) cc) Ui C-1 (.1-• t)J Cfl ;4), CO [•,-) 4."), 0, OD (2) C's) ck) CS, OD C) () cc... lc) cir.. C.-) C.) C) C".) C) CD CD C) C) CD C) •C) C) C.) CD CS) C.:1) CS) CS.> C.) • - cs_.) C.) C.) C) CD C) (.) C.) C.) C-2 CS) C.) C.-) C.) CS., C) ':..) C..") C.) C..) 0 CS.) CS) BE IT FUF,THE7. RESOLVED, tht 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_ -Support-e Mr . Edward 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, Iinley, Macdonald, Maier, Mainland, mastin, McAvoy, Melchert, Mercer, Mills, Mitchell, Nelson, OlDonoghue, Oldenburg, Olson, Patnales, Peterson, Powers, Rehard, Bemer„ Rhinevault, Rowston„ Simson, 'Slavens, R. Smith, W. Smith, Strong, Tapp, They, Tinsman, Travis, Turner, Valentine, Veil, 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. (10 Motion carried. STATE OF MICHIGAN ) COUNTY OF OAKLAND ) • I, the undersigned, the duly qualified and acting County Clerk of the County of Oakland, do hereby certify that the foregoing is a true and complete copy of a resolution adopted by the Board of Supervisors at a regular meeting ,of said Board, held on the SS: 8th day of February on file in my office. 1965, the original of which is IN WITNESS WHEREOF, I have hereunto affixed my official signature this 8th day o f February , A.D. l96t. John D. Murphy County Clerk