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HomeMy WebLinkAboutResolutions - 1962.09.10 - 19891September 10, 1962 Misc. 4005 Recommended by the BOARD OF PUBLIC WORKS Submitted by Mr. Horton Mr. Chairman, Ladies (S, Gentlemen: I offer the following resolution which was recommended by the Board of Public Works: Resolution proposed by Oakland County Board of Public Works with respect to Troy Sanitary Sewage Disposal System WHEREAS, the Oakland County Board of Supervisors by resolution, Miscella- neous No. 3822 adopted on June 26, 1961, established the Troy Sanitary Sewage Disposal System to serve the area in the City of Troy designated as the Troy Sanitary Sewage Disposal District and directed the Oakland County Board of Public Works to submit a contract with the City of Troy in respect to the construction, operation and financing of said system; and WHEREAS, the Oakland County Board of Public Works on August 24, 1962, did approve a form of Agreement dated August 1, 1962, between the County of Oakland and the City of Troy for the construction, operation and financing of the Troy Sanitary Sewage Disposal System 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 City of Troy constitutes the only party 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 city, NOW, THEREFORE BE IT 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 dated August 1, 1962, between the County of Oakland and the City of Troy, which reads as follows: inafter referred to as the 'Municipali party of the second v i t TROY SANITARY SEWAGE DIS AL SYSTEM CONTRACT 3 THIS CONTRACT, made and entered into this day of 196 , by and between the COUNTY OF 0,4,77 a Michigan county corporation (hereinafter referred to as the "County"), party of the first part, and the CITY OF TROY, being a city corporation located in the County of Oakland, Michigan (here- part; W1TNESSET 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 part thereof lying within the district hereinafter described; 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 sometimes 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 3399, adopted July 21, 1958, established the Southeastern Oakland County Sewage Disposal District to be served by the Southeastern Oakland County Sewage Disposal System (herein called the "Southeastern Systee) to which the City of Troy now has and will hereafter acquire contractual rights to deliver sanitary sewage for transportation to and disposal by the City of Detroit; and WHEREAS, the County of 7)sA1arid, by Board of Supervisors Resolution, Misc. No 3822, wk,pted June 26, 1961, established the Troy Sanitary Sewage Disposal District to be served by the Troy Sanitary Sewage Disposal System (herein called the "Troy System'), which system is to consist of trunks and laterals to collect and deliver sanitary sewage from said District to the Southeastern System; and WHEREAS, said act authorizes a 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 than authorized, pursuant to appropriate action of its Beard of Supervisors, to issue its bonds to provide the funds therefor, secured by the full faith and credit contractual obligation of the Municipality; and WITEREAS, said act provides, in the opinion of the Municipality and the County, the fairest and most equitable means of acquiring the sewage disposal facilities so vitally necessary -2- 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 Board, has caused preliminary plans and an estimate of cost of the Troy System to consist of sewage disposal facilities necessary to adequately serve theMunicipality, or portions thereof within the area to be served, to be prepared by Pate, }Urn 6; Bogue, consulting engineers of Detroit, Michigan (hereinafter sometimes referred to as the "Consulting Engineers"), which said estimate of cost is in the sum of Two Million Seven Hundred Seventy-Six Thousand Dollars ($2,776,000); and WHEREAS, in order to issue such bonds, it is necessary that the County and said Municipality enter into such an agreement; and 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 Troy System in the City of Troy and County of Oakland, under the provisions of Act 185, Public Acts of Michigan, 1957, as amended, which is to collect and transport sewage originating in the area to be served thereby, which area shall consist of the following: Beginning at the SE corner of Section 36, City of Troy; th N'ly along the E i ly line of the City of Troy to the NE corner of Section 1; th W i ly along the N line of Sections 1, 2, 3 and 4 to a point 1617.6 ft E of the NW corner of Section 4, T2N, R11E; th S'ly to the E-W 114 line of said Section 4; th W i ly to the W 1/4 corner of said Section 4; th S i ly to the SW corner of said Section 4; th Sly along the E line of Section 8, T2N, R11E, 1751.7 ft; th W 2116.1 ft; th. S 1101.8 ft to the E-W 114 line of said Section. 8; th W i ly approx. 450 ft to the center of said Section 8; th S i ly along the NS 1/4 line to the S 1/4 corner of said Section 3; th W i ly along the N line of Section 17, T2N, RIIE, approx. 670 ft; th Sly to the E-W 1/4 line of said Section 17; th W i ly approx. 2000 ft to the W 114 corner of Section 17, . T2N, RIIE; th S i ly to the SW corner of said Section 17; th Wi ly along the N line of Section 19, T2N, R11E, 1755.0 ft; th Sly to the E-W 1/4 line of said Section 19; th W i ly 883.5 ft to the center of said Section 19; th S i ly to the S 1/4 corner of said Section 19; th S on the N and S 1/4 line of Section 30 approx. 1260 ft to a point; th E approx. 346 ft to a point; th S approx. 1270 ft to the centerline of Derby Road; th Ely along the center- line of Derby Road to the E 1/4 corner of said Section 30; th S along the W line of Section 29, City of Troy approx. 340 ft to the centerline of Pembroke Road; th E i ly along the centerline of Pembroke Road to the E line of the W 1/2 of the SW 1/4 of said Section 29; th S i ly along the E line of the W 1/2 of the SW 1/4 of said section approx. 2140 ft to the S line of Section 29, City of Troy; th U along the S line of said Section 29 to a point 37. ft E of the NW corner of Section 32, City of Troy; th S 1000. ft to a point 870 ft E. of the W line of said Section 32; th E 10 ft; th S 540 ft to a point Sn ft E of the W line of said Section 32; th W 310 ft to a point 570 ft E of the W line of Section 32 and 1540 ft S of the N line of Section 32; th S 675 ft to a point 570 ft E of the W line of said Section 32; th W 160 ft; th S 425 ft; dh W 410 ft to the W line of said Section 32; th S to the W 1/4 corner of said Section 32, City of Troy, th E along the E-W 1/4 line of said section to a point 1348.2 ft E of the canter of said Section 32; th N'ly and E i ly along the N line of Parmenter Estates Subdivision to the 8 line of Section 32; th N t ly along the E line of said Section 32 to the NE corner of Section 32; th Ely along the N line of Section 33 to the NE corner of said Section 33, City of Troy; th S 920 ft along the W line of Section 34; th E 500 ft; th S parallel to the W section line 1440 ft; th E'ly to a point on the N-S 1/4 line 470 ft N of the center of Section 34, City of Troy; th Ely to a point on the E line of said Section 495 ft N of the E 1/4 corner; th S along said section line 10 ft; th E'ly 375 ft; th Vly 485 ft to a point on the E-W 1/4 line of Section 35, City of Troy; th E'ly along -4- the E-W 1/4 line to a point 230 ft W of the W line of Stephenson Highway; th S'ly along a line 280 ft W of and parallel to the W line of Stephenson High- way to the S line of said Section 35; th Ely along the S line of Sections 35 and 36, City of Troy to the SE corner of Section and the point of beginning, Also beginning at a point on the N line of Section 30, City of Troy, said point being W i ly 1307.2 ft from the N 1/4 corner of said section; th Sly 966,4 ft; th Ely approx. 170 ft; th N approx. 950 ft to a point on the N line of Section 30, said point being 1180 ft W of the N 1/4 corner of said Section 30; th W'ly along the N section line to the point of beginning. Also beginning at a point 1307,2 ft W i ly and 966.4 ft S'ly of the N 1,1 4 corner of Section 30, City of Troy; th Wly 748.4 ft; th S'ly 500,0 ft; th ST;rly 245.3 ft to the Vly line of the G.T,W,R,R. R/W; th Sly along said R/W line to the N line of Derby Road; th NE'ly along the N line of Derby Road to a point 900 ft due E of the W line of Section 30; th due N approx. 970 ft to the N line of the S 1/2 of the NW 1/4 of said Section. 30; th Vly along the N line of the S 1/2 of the NW 1/4 of said Section 30 approx. 400 ft to the W line of the E 1/2 of the NW 1/4 of said section; th N'ly along the W line of the E 1/2 of the NW 114 of said section approx. 375 ft to the point of beginning. which area is shown on a map hereto attached marked Exhibit "A" and made a part hereof and has been designated by the County Board of Supervisors as the. TROY SANITARY SEWAGE DISPOSAL DISTRICT (here- inafter sometimes referred to as the "Troy District"). 2. The sewage disposal system referred to in paragraph 1 above has been designated by the County Board of supervisors as the TROY SANITARY SET4AGE DISPOSAL SYSTEM :and shall consist of trunks and laterals to be located substantially as indicated on Exhibit "A" attachad ktereto, which trunks and laterals shall be connected to the Southeastern System. . The County and the Municipality hereby approve the estimate of $2,776,000 as the cost of said sewage disposal facilities which estimate shall consist of the items sat forth in Exhibit 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 s.ce hereinafter sometimes referred to as the it project. 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 $2,776,000 (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 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 pled, pro- vided only that no such action shall be taken prior by to the execution of the so-called Dequindre Interceptor Agreement by the County and the fourteen (14) participating •..1v.nicipalities. After the Board of Supervisors of Oakland County has adopted the bond resolution s the Board will take all necessary procedures to obtain the approvals necessary to the issuance of the bonds Finance COOXASSiOla of the State ohlgan, obtain construction bids for the prolect and enter into construction contracts with the lcvst responsible bidders, and sell and deliver the bonds in the manner authorized by law. (d) After the issuance of said bonds and the execu- tion of construction contracts, the Board shall cause the project to be constructed within a reasonable time and do all other things requir e d it under the provisions of Act 185 of Public Acts of Michigan, 1957, as amended, 5. It is understood and agreed by the parties hereto that the Troy System is to serve the Municipality and not the individual property ownzrs and un,Fr;7s thereof, unlas tcy special agreement between the Board and th. .L1cipaiity.. The responsibility of collecting sewage and dil .‘72r same to the sanitary sewage trunks and laterals of the Troy System than be that of the tnicipality which shall cause to be constructed and maintained may be sot forth in any revision of Exhibit ' ad to by the necessary facilities for such collection and delivery . County shall not be obligated by this agreement to serve any area outside the district described in paragraph I hereof, or to con- struct any facilities other than those designated in ?aL.zgraph 2 hereof. . The Municipality to the County the e or any part of the cost of the facilities of the Troy System financed b-J the issuance by the County of its bonds as herein provided. The term as used herein shall be construed to include all items of cost of the type set forth in Exhibit ' attached hereto and any other items of cost of a similar nature the parties hereto. No change in the jurisdiction over any territory in the municipality shall in any manner tmpair the obligation of this contract. In event all or any part of the territory of the N7Anicipality is incorporated as a new city or is annexed t aeumas 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 propor- tionate share of the contractual obligation and right to capaJA in the Troy System of the Munic i pality, from which such territory is taken, based upon a division in the same ratio as the assessed valuation of the taxable property in the territory so annexed or incorporated bears to the assessed valuation of the taxable property Ira thc remaining portion of the Hurqcicality from which said territory is taken. -8- to the issuance of bonds, 1 its Obligation shall be adjusted and of an annual installment due e County, by surrendering to the 7. 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 payments of the principal of and interest and bond handling changes (exclusive of capitalized interest) thereon, and the 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 da of any principal of or interest and bond handling 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 ti:m: 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 limited accordingly. If the Municipality shall fail to make any of such payments when due, the amount thereof shall be subject to a penalty of one-half of one per cent (1/2 of 1%) for each month or fraction thereof that the same remains unpaid after the due date. The Municipality may pay in advance of 72.2turity all or any part 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. -9- derived from such sales tax levy and returnable to thJ micipality of this contract are to be pl d for tl,e payment of the principal , 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 1:cdy of the 7Aznicipality of such default and the amount thereof, and if such default is not corrected within ten (10) days after such notification, the County Treasurer or other county official charged with disbursement to such Municipality of funds derived ficin the state sales tax levy under the provisions of At 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 as may he 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, A117 such moneys so withheld 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 .1rpose 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 Munici- pality to make payments in the manner anJ at the tLai,-,,is required by this contract. It is specifically recognized by the Municipality that the payments required to he made by it pursuant to the terms -10- therefor shall be used to call such bonds as allable or to 10, If the procees of the sale of riginal bonds 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 the times herein specified, without regard as to whether the project herein contemplated is actually completed or placed in operation; 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, Af pletion of the project and payment of all costs thereof, any surplus remaining from the sale of the bonds purchase bonds on the open 11a7.7k, and in such event the contract obligation of the Municipality in respect to the project shall be reduced by the principal amount 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. to be issued by the County for the project arc for any reason insufficient to complete the project in accordance with the plans and specifications therefor, the Board shall, if necessary, submit to the Board of SupecTisors of Oakland County a resolution pro- viding for the issuance of additional 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 expresse and set forth in this contract shall b. aDplicablz to such additional -11- at the time of making such annua vy there shall be other ta701 issue of bonds as well as the original issue, it being at all times by the fully recognized and agreed that the payments to be maq.e Municipality, in the manner specified in parag .zapt: ? of this contract, shall be based upon the aggrcate amount of tile 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 provide the necessary funds to complete the project. 11, The Municipality, pursuant to the authorization of paragraph (2), Section 12 of Act 185, eblic 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 1963, levy a tax in an amount which, taking into consideration estim ated delinquencies in tax collections, will be sufficient to pay its obligations under this contract becoming due before the time of the following yea tax collections PUVIDED, HOWEVER, that if funds on hand earmarked and sot t.fta, payment of such contractual obligations falling due prior to the next tax collec- tion period, then the annual tax levy may be reduced by such amount Such other funds may be raised in the 7:nzraer provided im said paragraph (2), Section 12 of Act 185, P .ubL,c of Michipen, 1957, or any amendments the 12. This contract is contingent upon the County issuirag its negotiable bonds as set forth in subdivision (b) of paragraph 4 of this con'Lr to defray the estimated cost of the proje -12- said system to the Municipality during term of this contract, which bonds shall be issued under the authorization provided in paragraph (1), subparagraph b), Section 11 of said Act 185, P .d&I Acts of Michigan, 1957, as amended, 13„ The MUnicii ty consents to the establishment and location of said Troy System entirely within its corporate limits. Upon completion of said Troy System the County hereby leases the upon the following terms and conditions: y System shall be used and (77ra1.:ad by the Municipality in compliance with the con- tractual and legal obligations applicable to the Municipality and to the sewers and other facilities comprising the Troy System by reason of the connection thereof to the Southeastern System., The Municipality covenants and agrees to use and to operate the Troy System at all times so as to preserve and continue for the full term of this contract the right to connect the Troy System to t1:0:: Southeastern System as an outlet. (b) The Municipality, at its own expans, shall maintain 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 -13- (a) The ality shall not permit the discharge (c good condition and repair, than the Board of Public W'orks shall notify the Municipality in writing as to any deficiency. If the Munici- pality shall fail to restore the system to a good condition and repair within a reasonable time thereafter, Chan the Board of Public Works shall have the right to perform the necessary work and furnish the necessary materials, and reimbursement for any expense :Lnc -Jr-red by the County shall be made by the l'!;.unioipality to the County within thirty (30) days after the expense has been incurred. ) The Municipality shall continue in existence and shall enforce Ordinance 'To. 29 adopted on the 29th day of July, 1957, aS amended, or an ordinance similar thereto concerning the connec- tions of premises in the Municipality to sanitary sowe r out lots, 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 Troy System or into the South- eastern System as said standards and regulations may be promulgated from time to time by the Board or by the County tgency in charge of the operation of the Southeastern System. -14- (a) The Municipality than make and collect from the individual users of the Troy System such charges for sewage disposal service as shall be sufficient to pay the charges to be made by the County to the Municipality for sewage disposal services resulting from the construction, opera- tion and maintenance of the Southeastern System and to pay the costs of operating and maintaining the Troy System. The Municipality shall enforce prompt payment of all such charges as the same shall become due. The Municipality agrees to lease the Troy 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 1st of each year commencing January 1, 1963, and in addition to perform its covenants an d 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 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 -15- 15. This contract shall become effec e upon approval either the :5T>o_rty 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 set forth, and will not to be done any act which would in any way impair the said the security therefor, or the prompt payment of principal and interest thereon, It is hereby declared that the terms of this agreemorit in so far as they pertain to the security of any 2;-ch bonds, •shall be deemed to be for the benefit of the holders of said bonds. 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 ality and of the Board of Public Works. It shall terminate fifty (50) years from the date of this contract, or on such earlier date when the Municipality is not in default ther,lInder and the principal, interest and bond handling charges on the bonds issued as hereinabove described are fully aid and discharged. This contract 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. WHEREOF, the parties hereto have caused this -lb- .E9,7 By By contract to be executEd znd delivered by their respective duly orized officers, all as of the day and year first above written. GP OATLAND !,od of Public Works C.Eizman Secr avor :ary CITY OF TBf BY .. BE IT FURTHER RESOLVED, officers of the Board of Public Works are authorized to execute and deliver such number original copies of said Agreement cs they may deem advisable. TWELVE, '77,-)V,0"-4 APE.4 I_ E I A Z. - 550 0 C'7:74 ( 0 00 exesigavr " Mr. Semann Supported by Yeas: Allerton, Alward, Beecher, Bloc, Bonner, Brickner, Calhoun, Aames Carey, Charter's, Cheyz, Clack, Clarkson, Cummings, Davis, Dewan, Dickens, Dohany, Wm, Duncan, Durbin, Edward, Edwards, Forbes, Fouts, Frid, Gabler, Goodspeed, Hall, Hamlin, Heacock, Hoard, Horton, Huber, Wallace Hudson, Enlet Hursiall, Jackson, Knowles, Levin, Levinson, Love, MacDonald, Maier, Marshall, McAleer, McCartney, McGovern, Melchert, Menzies, Mercer, Miller, Mitchell, Moore, Noel, OlDonoghue, Oldenburg, Osgood, Potter, Rehard, Remer, Rhinevault, Roberts, Semann, Slavens„ Smith, Solley, Staman, They, Tinsman, Voll, Webber, Yockey. (71) Nays: None, (0) carried Motion vDanie l 'T Murplif. Oakland County Clerk STATE OF MICHIGAN) ss COUNTY OF OAKLAND) I, the undersigned, the County Clerk of the County of Oakland, do hereby certify that the foregoing is a true and complete copy of Miscellaneous Resolution No, 4005 (in re: Troy Sanitary Sewage Disposal System) and of the proceedings pertaining thereto daily adopted and taken by the Board of Supervisors of said County at a regular meeting held September 10, 1962, the originals of which are on file in my office Dated: September 10, 1962