HomeMy WebLinkAboutResolutions - 2012.05.17 - 20233Miscellaneous Resolution #12139
BY: PLANNING & BUILDING COMMITTEE, DAVID W. POTTS, CHAIRPERSON
IN RE: WATER RESOURCES COMMISSIONER - RESOLUTION TO
ESTABLISH CITY OF PONTIAC SEWAGE DISPOSAL SYSTEM AND
AUTHORIZE CITY OF PONTIAC SEWAGE DISPOSAL SYSTEM
CONTRACT
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS, the City of Pontiac (the "City") is in urgent need of sewage disposal system
improvements and facilities constituting a part of the system as described in the proposed form of
the contract hereinafter mentioned, in order to promote the health and welfare of the residents
thereof, which sewage disposal improvements, facilities and system also would benefit the
County and its residents, and the parties to said proposed contract have concluded that such
improvements and facilities can be provided and financed most economically and efficiently by
the County through the exercise of the powers conferred by Act 342, Public Acts of Michigan,
1939, as amended ("Act 342"); and
WHEREAS, by the terms of Act 342, the County and the City are authorized to enter into
a contract for the acquisition by the County of the sewage disposal system improvements and
facilities to serve the City; and
WHEREAS, the improvements and facilities are subject to certain debt obligations
related thereto, and the County will assume such obligations as part of its acquisition of the
improvements and facilities by covenanting to the holders of such obligations to make payments
thereon in the event that amounts paid by the City are insufficient for such purpose; and
WHEREAS, there has been submitted to this Board of Commissioners a proposed
contract between the County, by and through the County Water Resources Commissioner,
County Agency, party of the first part, and the City, party of the second part (the "Contract"),
which Contract provides for the acquisition by the County of the sewage disposal system
improvements and facilities and which Contract is hereinafter set forth in full; and
WHEREAS, there have also been submitted for approval and adoption by this Board of
Commissioners, preliminary plans, specifications and estimates of the cost and period of
usefulness of the sewage disposal system improvements and facilities; and
WHEREAS, this Board of Commissioners desires to establish the sewage disposal system
and to proceed with the acquisition of the sewage disposal system improvements and facilities
PLANNING & BUILDING COMMITTEE VOTE:
Motion carried unanimously on a roll call vote with Nuccio absent.
MOTION TO DIRECTLY REFER TO FINANCE:
Motion carried on a voice vote.
and the approval and execution of the Contract to acquire the sewage disposal system
improvements and facilities as provided in the Contract.
THEREFORE, BE IT RESOLVED by the Board of Commissioners of Oakland County,
Michigan, as follows:
1. APPROVAL OF PROJECT AND DESIGNATION OF COUNTY AGENCY.
This Board of Commissioners by majority vote of its members-elect does hereby approve, under
and pursuant to Act 342, the establishment of the City of Pontiac Sewage Disposal System (the
"System"), which shall consist of (i) sewage disposal system improvements and facilities, as
specified and to be located as shown in Exhibit A to the Contract (the "Project") and (ii) the
services provided thereby; that the Project and the System shall serve the City; that the Oakland
County Water Resources Commissioner is hereby designated and appointed as the "County
Agency" for the Project and the System; that the County Agency shall have all the powers and
duties with respect to the Project and the System as are provided by law and especially by Act
342; and that all obligations incurred by the County Agency with respect to the Project and the
System, except as set forth in Section 3 hereof or otherwise authorized by this Board of
Commissioners, shall be payable solely from funds derived from the City as provided in the
Contract.
2. PLANS AND SPECIFICATIONS — ESTIMATES OF PERIOD OF
USEFULNESS. The preliminary plans and specifications for the Project and services as
contained in Exhibit A to the Contract and the estimate of 40 years and upwards as the period of
usefulness thereof, as submitted to this Board of Commissioners, are hereby approved and
adopted. The estimate of $23,160,000 as the cost of the Project, as evidenced by the outstanding
debt on the improvements and facilities comprising the Project set forth on Exhibit B to the
Contract, is hereby approved and adopted.
3. COVENANT TO IIOLDERS OF CITY BONDS. The County agrees in
paragraph 9 of the Contract to covenant to the holders of the City of Pontiac Sanitary Sewer
System Revenue Bonds as described in Exhibit B to the Contract (the "Sewage Disposal Revenue
Bonds") to make semiannual payments of the Sewage Disposal Revenue Bonds in the event
amounts paid by the City are not sufficient to meet the City's obligations thereon. The City
remains obligated to repay the Sewage Disposal Revenue Bonds from the net revenues of the
Project. The County Agency is hereby authorized to take all action necessary to evidence and
effectuate the covenant to the holders of the Sewage Disposal Revenue Bonds as described in the
Contract.
4. APPROVAL OF CONTRACT. The City of Pontiac Sewage Disposal System
Contract between the County, by and through the County Water Resources Commissioner, party
of the first part, and the City, party of the second part, which Contract has been submitted to this
Board of Commissioners, is hereby approved and adopted, and the County Water Resources
Commissioner is hereby authorized and directed to execute and deliver the same for and on
behalf of the County, in as many counterparts as may be deemed advisable. The Contract is
attached to this resolution hereto as EXHIBIT "1".
5. CONFLICTING RESOLUTIONS. All resolutions and parts of resolutions insofar
as they may be in conflict herewith are rescinded.
Mr. Chairperson, on behalf of the Planning and Building Committee, I move adoption of
the foregoing resolution.
PLANNING AND BUILDING COMMITTEE
EXHIBIT 1
CITY OF PONTIAC SEWAGE DISPOSAL SYSTEM CONTRACT
THIS CONTRACT, made and entered into as of the day of , 2012, by and
between the COUNTY OF OAKLAND, a county corporation in the State of Michigan
(hereinafter sometimes referred to as the "County"), by and through its Water Resources
Commissioner, County Agency, and the CITY OF PONTIAC, a home rule city located in the
County (hereinafter sometimes referred to as the "City"). In this Contract, the County and the
City may also be referred to individually as a "Party" or jointly as "Parties."
WITNESSETH:
WHEREAS, pursuant to Act No. 342, Public Acts of Michigan, 1939, as amended
(hereinafter sometimes referred to as "Act 342"), the Board of Commissioners of the County, by
majority vote of its members-elect, has authorized and directed that there be established a county
system of sewage disposal system improvements and services to serve the City, said system to be
known as the "City of Pontiac Sewage Disposal System" (hereinafter sometimes referred to as
the "System"), and has designated the Oakland County Water Resources Commissioner as the
county agency for the System with all powers and duties with respect thereto as are provided by
Act 342 (said Water Resources Commissioner being hereinafter sometimes referred to as the
"County Agency"); and
WHEREAS, under and subject to the terms of Act 342, the County is authorized, through
the County Agency, to acquire the sewage disposal system improvements and facilities
hereinafter described as constituting part of the System (the "Facilities"), and the County and the
City are authorized to enter into a contract, as hereinafter provided, for the acquisition of the
Facilities by the County, and
WHEREAS, there is an urgent need of such sewage disposal system improvements to
provide sewage disposal services to the City in order to promote the health and welfare of the
residents thereof, which facilities would likewise benefit the County and its residents, and the
parties hereto have concluded that such facilities can be provided most economically and
efficiently by the County through the exercise of the powers conferred by Act 342, and
especially section 5 thereof; and
WHEREAS, plans, maps and specifications for the Facilities have been obtained by the
County Agency, all of which have been submitted to and approved, by the Board of
Commissioners of the County and the Emergency Manager of the City in the place and stead of
the governing body of the City and placed on file with said Board of Commissioners in the office
of the County Agency, and all of which are attached hereto as Exhibit A and made a part hereof;
and
WHEREAS, the Facilities are subject to certain debt obligations related thereto, as
evidenced by the obligations of the City described in Exhibit B attached hereto and made a part
hereof (the "Obligations)", and the parties intend that the County will assume the Obligations as
part of its acquisition of the Facilities; and
WHEREAS, in order to provide for the acquisition of the Facilities by the County and for
other related matters, it is necessary for the parties hereto to enter into this contract.
THEREFORE, IN CONSIDERATION OF THE PREMISES AND THE COVENANTS
OF EACH OTHER, THE PARTIES HERETO AGREE as follows:
1. The parties hereto approve and agree to the acquisition of the Facilities as part of
the System, as herein provided, under and pursuant to Act 342 and approve the designation of
"City of Pontiac Sewage Disposal System Facilities" as the name of the Facilities. The City by
way of compliance with Section 29, Article VII, Michigan Constitution of 1963, consents and
agrees to the establishment and location of the Facilities within its corporate boundaries and to
the use by the County of its streets, highways, alleys, lands, rights-of-way or other public places
for the purposes and improvements of the Facilities and any improvements, enlargements or
extensions thereof, and the City further agrees that, in order to evidence and effectuate the
foregoing agreement and consent, it will execute and deliver to the County such grants of
easements, rights-of-way, licenses, permits or consents as may be requested by the County at the
City's expense. In the event, that the City does not possess all necessary, permanent, perpetual
and transferable property rights of the Facilities, the County Agency may obtain by purchase,
condemnation or otherwise such easements, rights of way, licenses or other agreements on terms
reasonably acceptable to the County and in any case sufficient to entitle the County to use and
operate the Facilities in the same manner as used and. operated by the City. The County shall use
good faith efforts to minimize the cost of obtaining such easements, rights of way, licenses or
other agreements. The City, at its sole cost and expense, shall cooperate in taking all actions
requested by the County to assist the County in obtaining such easements and other interests in
property. Within 60 days of demand, as may be made from time to time by the County, the City
shall reimburse the County in an amount equal to any and all costs incurred by the County to
obtain such easements and other interests in property including, but not limited to, costs of
acquisition or condemnation awards (including the condemnation defendant's attorneys fees and
costs) and all legal, expert and professional fees and costs incurred by the County and any Losses
(as defined in paragraph 8 of this contract) actually incurred by the County arising out of Claims
(as defined in paragraph 8 of this contract) asserted against the County by third parties based on
the failure to have an casement, right of way, license or other agreement for real property
necessary for the use and operation of the Facilities. These reimbursable costs include all costs
incurred by the County to ascertain the location of any improvements constituting any part of the
Facilities. Further, within 60 days of demand, as may be made from time to time by the County,
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the City shall reimburse the County for all Losses actually incurred by the County arising out of
Claims asserted against the County arising out of any obligation occurring under any easement,
right of way, license or other agreement for real property necessary for the use and operation of
the Facilities.
2. The Facilities shall consist of the sewage disposal system improvements as
described and specified in the plans, maps and specifications set forth in Exhibit A, which plans,
maps and specifications are on file with the County Agency and are approved and adopted. The
City hereby conveys the Facilities to the County. The City agrees to execute and deliver such
documents and to take such other action as requested by the County Agency to evidence the
conveyance of the Facilities. In addition, the City agrees to transfer to the County Agency, and
the County Agency agrees to retain and use on behalf of the Facilities, any and all reserve funds
for the System previously collected and maintained by the City on behalf of the System. The
reserve fund for the Facilities is estimated to be $3,200,000. In addition, the City will transfer an
additional 55,000,000 to the County Agency to be held in the reserve and used on behalf of the
System. While the Obligations or any subsequent debt incurred with respect to the System
remains outstanding, the County shall be the owner of the Facilities. At such time as all
Obligations and any such subsequent debt are paid in full and this contract is terminated,
ownership of the Facilities shall revert to the City as provided in paragraph 13 of this contract.
The County shall be responsible for the operation, maintenance and administration of the
Facilities as part of the System and may contract with the current operator of the Facilities or
such other entity or entities as determined by the County Agency for such purposes. The scope
of services for the operation, maintenance and administration of the Facilities as part of the
System are set forth in Exhibit C attached hereto and made a part hereof.
3. The City shall pay to the County the entire cost of the Facilities as hereinafter
described in cash on the date or dates as specified by the County Agency. The City hereby
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acknowledges that, other than in connection with its assumption of the Obligations, no County
general funds shall be appropriated or pledged pursuant to this contract or for the Facilities. The
County's role in the Facilities is strictly limited to that set forth in Act 342, and the City shall be
solely responsible for all administration and acquisition costs (including attorney fees and all
dispute resolution costs), all costs of operation and maintenance of the Facilities, all amounts
necessary for the County to make timely payment of the debt service due on the Obligations, all
costs and expenses relating to lawsuits as described in paragraph 10 hereof, and all items of costs
described in paragraph 5 hereof. The City understands and agrees that if there is any amount due
and owing to the County under this Contract, which is still unpaid at the time the County
distributes funds to the City from the Delinquent Tax Revolving Fund (DTRF), the County shall
be entitled to reduce, set-off, and permanently retain any amount due to the City from Delinquent
Tax Revolving Fund (DTRF) by any such amount then still due and owing the County pursuant
to this Contract.
4. Pursuant to section 5 of Act 342, the City may raise the amounts required to be
paid to the County under this contract from rates, charges, or assessments from the users and
beneficiaries of the Facilities and services within the City, or by levy upon the taxable property
of the City. So long as the City timely makes all payments to the County required by this
contract, the City may establish, with the consent of the County Agency, the rates, charges and
assessments for the services provided by the System. The City acknowledges, however, that the
County Agency shall have all rights provided by Act 342, particularly sections 3, 4 and 5, to
establish such rates, charges and assessments and to enforce the collection thereof.
5. The County Agency is hereby authorized, but not required, to utilize County
personnel for the administration of the Facilities. The City agrees that the Costs (as hereinafter
defined) of, and Overhead (as hereinafter defined) for, contract administration, auditing and
financial services shall be part of the cost of the Facilities for purposes of paragraph 3 hereof,
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whether such services are provided by County personnel or third parties. "Costs" shall be
defined in this paragraph to include but not be limited to the cost of labor, including statutory and
customary fringe benefits, overtime, Pontiac retiree medical, optical and hearing insurance,
Pontiac retiree life insurance, material and supplies, power and utility services,
vehicle/equipment rental and subcontractor services devoted specifically to the Facilities, and
any other costs that may be deemed appropriate. "Overhead" shall be defined in this paragraph
to include but not be limited to the following: all allocation of the labor cost, including statutory
and customary fringe benefits, of personnel responsible for administering this contract or
supervising the work performed in connection with this contract; an allocation of expenses of
the County Agency; and an allocation of the indirect cost of the County charged to the County
Agency for support services, such as (but not limited to) legal, personnel, accounting, computer
support, and insurance/risk management.
6. It is understood and agreed by the parties hereto that the Facilities are to serve the
City and not the individual property owners and users thereof, unless by special arrangement
between the County Agency and the City. The responsibility of providing additional facilities as
may be needed for the use of the City shall be that of the City, which shall cause to be
constructed and maintained, directly or through the County, any such necessary additional
facilities, The County shall not be obligated to acquire or construct any facilities other than
those designated in paragraph 2 hereof.
7. The County shall have no obligation or responsibility for providing facilities
except as herein expressly provided with respect to the acquisition of the Facilities or as
otherwise provided by contract. The City shall have the authority and the responsibility to
provide such other facilities and shall have the right to expand the facilities of the System by
constructing or extending water main or related facilities, connecting the same to the System, and
otherwise improving the System. It is expressly agreed, nevertheless, that no such connection
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shall be made to the System and no improvements, enlargements or extensions thereof shall be
made without first securing a permit therefor from the County. Any such permit may be made
conditional upon inspection and approval of new construction by the County.
8. To the fullest extent permitted by law, the City shall indemnify and hold harmless
the County and the County Agency, and agents and employees of each of them, from and against
Claims, Losses or Liabilities (as hereinafter defined) arising out of or resulting from the
Facilities, excluding, however, any Claims resulting from the County's or the County Agency's
sole negligence. "Claims" as used in this contract shall be defined to include any and all alleged
Losses, claims, complaints, demands for relief or damages,. suits, causes of action, proceedings,
judgments, deficiencies, Liability, penalties, fines, litigation costs and expenses, including, but
not limited to, any reimbursement for reasonable attorney fees, witness fees, court costs,
investigation and/or litigation expenses, any amounts paid in settlement, and/or any other
amounts, liabilities or Claim(s) of any kind whatsoever which are imposed on, incurred by, or
asserted against the County and/or the County Agency by the City or its agents, or any third
party or any Claim(s) for which the County and/or the County Agency may become legally
and/or contractually obligated to pay or defend against, or any other liabilities of any kind
whatsoever, whether direct, indirect or consequential, whether based upon any alleged violation
of the constitution (federal or state), any permit, any statute, rule, regulation or the common law,
whether in law or contract. "Loss" or "Losses" as used in this Contract means any damages
(excluding consequential), deficiencies, dues, principal, interest, penalties, fines, costs, amounts
paid in settlement, liabilities, obligations, taxes, liens, losses, expenses, and fees, including court
costs and reasonable attorneys' fees and expenses related to or arising out of the condition,
operation, maintenance and repair of the Facilities or out of the breach of any representation,
warranty or covenant of this Contract. "Liability" as used in this Contract means any
responsibility, liability, obligation, expense, Claim, Loss, damage, indebtedness (other than
Obligations set forth in Exhibit B), principal, interest, penalty, guaranty or endorsement of or by
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any Person, asserted, absolute or contingent, known or unknown, accrued or unaccnied, due or to
become due, liquidated or unliquidated, which is related to or arising out of the ownership
condition, operation, maintenance and repair of the Facilities.
9. The City has issued the City of Pontiac Sewage Disposal System Revenue Bonds
as described in Exhibit B attached hereto (the ''Sewage Disposal Revenue Bonds"). The City is
obligated to repay the Sewage Disposal Revenue Bonds from the net revenues of the Facilities.
The City shall remain obligated to the County to establish rates and charges to its sewage
disposal customers to permit the County to generate sufficient net revenues from the Facilities to
make all payments due on the Sewage Disposal Revenue Bonds. The County agrees to covenant
to the holders of the Sewage Disposal Revenue Bonds to make semiannual payments to the
holders of the such debt in the event amounts paid by the City are not sufficient to meet such
payments. The City understands and agrees that if there is any amount due and owing to the
County (or assignees) under this Agreement, which is still unpaid at the time the County
distributes funds to the City from the Delinquent Tax Revolving Fund of Oakland County
("DTRF"), the County (or assignees) shall be entitled to reduce, set-off, and permanently retain
any amount due to the City from the DTRF by any such amount then still due and owing the
County pursuant to this contract.
10. The parties hereto agree that the costs and expenses of any lawsuits arising
directly or indirectly out of this contract or relating to the Facilities, to the extent that such costs
and expenses are chargeable against the County or the County Agency, shall be deemed to
constitute a part of the cost of the Facilities and shall be paid by the City in the same manner as
herein provided with respect to other costs of the Facilities. In the event of such litigation, the
County Agency shall consult with the City and shall retain legal counsel agreeable to the County
and the City to represent the County; provided that if the County and the City cannot agree as to
such representation within a reasonable time, the County Agency shall exercise its discretion as
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to the retention of such counsel. This paragraph shall not apply to a lawsuit instituted by the City
to enforce its rights under this contract.
11. All powers, duties and functions vested by this contract in the County shall be
exercised and performed by the County Agency, for and on behalf of the County, unless
otherwise provided by law or in this contract.
12. In the event that any one or more of the provisions of this contract for any reason
shall be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions hereof, but this contract shall be construed
as if such invalid, illegal or unenforceable provision had never been contained herein.
13. This contract shall become effective after its execution by each party hereto. This
contract shall remain in full force and effect for a period of forty (40) years from the effective
date hereof or until such time all Obligations and any future debt with respect to the System are
paid in full, unless terminated earlier by mutual agreement of the parties hereto in writin2. At
such time as all Obligations and any future debt are paid in full, this contract shall be terminated
and ownership of the Facilities shall be transferred to the City unless at that time there are other
contractual arrangements between the County and the City. In the event that the Obligations and
any future debt have not been paid in full at the end of the 40-year term of this contract, then
before the Facilities are transferred to the City, the City shall pay such debt in full and the
County shall have no further obligation or responsibility with respect the Obligations or future
debt previously incurred.
14. This contract shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns. This contract may be executed in any number of
counterparts.
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15. In the event that a dispute arises among the Parties, the disputing party shall
provide the other Party with written notice of the dispute and within twenty (20) days after
receipt of said notice, the receiving Party shall submit to the other a written response. The notice
and response shall include a statement of each Party's position and a summary of the evidence
and arguments supporting its position. Each Party shall designate a high level executive or
officer to work together in good faith to resolve the dispute; the name and title of said executive
shall also be included in the notice and response. The executives shall meet at a mutually
acceptable time and place within thirty (30) days of the date of the disputing Party's notice and
thereafter as they reasonably deem necessary to resolve the dispute. If the executives have not
resolved the dispute through good faith efforts within sixty (60) days, then, before resorting to
taking the case to court, the Parties shall try in good faith to resolve the dispute by mediation
administered by the American Arbitration Association ("AAA") under its Commercial Mediation
Rules. All costs attributed to mediation shall be borne equally by both Parties. If either Party is
unsatisfied with the outcome of the mediation, either Party may file suit.
IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed
and delivered by their duly authorized officers, all as of the day and year first above written.
COUNTY OF OAKLAND
By:
County Water Resources Commissioner
(County Agency)
CITY OF PONTIAC
By:
Its: Emergency Manager
EXHIBIT A
[maps, plans and specifications describing the sewage disposal system facilities constituting the
City of Pontiac Sewage Disposal System Facilities]
Isiah
Alnantis
6.1e,
Vinewoon
Standar
Angelus
idgesys;
51eld
Pontiac
Severy
.Talsats
Buick
Chrysler
Mot:
tcotioo Lak.'hshh
nr,erty
RerR
Clad
Gilroy
Pa' EliZabeth Lae
Edgeheg. Holbrook
tHOM 5 0
421011111111
espre
Es
Centerpoint
Campus I. Fsx iver
Rolling 1/000
Vvsynridge
R --hers Ridge
n.R.o
4.Iton Wneel Cre sty,.
I- orn ar.s,
,s5550
Resson
N BL'Opdyks
Futile Snores Barmngton
Square Lake
se '.
;held Eileen
Kendra
VVastewater Treatment Plant
Lift Station
Sanitary Manhole
Pontiac Sanitary Sewer System
Sanitary Sewer
Street Centerline
Stream
;Fee; 0 1,250 2,500 5,000 7,503 10,000
EXHIBIT B
Existing City of Pontiac Sanitary Sewer System Revenue Bonds
I. Publicly Sold Revenue Bond Issues
Principal Due
After July 1,2012
City of Pontiac Sewage Disposal
System Revenue Bonds Series 2002 $3,060,000.00
State Revolving Fund Revenue Bond Issues
Maximum
Principal Due
After July 1, 2012
Issue
Issue
City of Pontiac Sewage Disposal System
Revenue Bonds, Series 2010
City of Pontiac Sewage Disposal System
Revenue Bonds, Series 2011
City of Pontiac Sewage Disposal System
Revenue Bonds, Series 2011A
City of Pontiac Sewage Disposal System
Revenue Bonds, Series 2011B
$9,315,000
$9,230,000
$495,000
$1,060,000
$20,100,000
dmh/EFM Debt Savings
City of Pontiac Sewage Disposal System
Operation & Maintenance
EXHIBIT C
SCOPE OF SERVICES
SEWAGE DISPOSAL SYSTEM OPERATION AND MAINTENANCE
The County agrees to perform the following operation and maintenance
services of the Sewage Disposal System (all of the following being referred as
the "WRC Services" or "Services") on behalf of the City:
1. Operation and maintenance of pump stations and appurtenances,
including the payment of power costs and lawn and landscape
maintenance.
2. Operation and maintenance of the Sewage Disposal System, including all
Sewage Disposal System force mains, meters, valves, and all other
facilities, equipment and appurtenances that are part of the Sewage
Disposal System.
3. Compute and bill quarterly, charges for Sewage Disposal System
services rendered in accordance with the rates approved by the City
and/or County Agency. The Sewage Disposal System service charges
will be payable thirty (30) days after the date of each quarterly, billing.
4. Provide house lead connection inspections in accordance with City issued
permits.
5. Respond to requests from customers and City for maintenance,
inspections and repairs, both emergency and routine.
6. Establish, maintain, manage, and administer a Sewage Disposal System
Enterprise Fund. Revenue collected by the County shall be deposited and
maintained in the Sewage Disposal System Enterprise Fund. On a
quarterly basis, the County shall determine the costs and overhead
incurred during said quarter in performing the Services under this
Contract and deduct such amount from the Sewage Disposal System
Enterprise Fund as payment for such Services. The County may establish
multiple reserves for system emergencies, major maintenance or system
capital replacement.
7. Keep all necessary records and books of account pertaining to its
dealings with the users of the Sewage Disposal System within the City
and the Sewage Disposal System Enterprise Fund, and make same
available to the City upon request.
8. Comply with applicable laws and governmental accounting standards in
the keeping, management, administration, use and auditing of the
Sewage Disposal System Enterprise Fund. Upon request of the City,
provide City a quarterly accounting statement, a quarterly operation and
maintenance activity report and annual report for the City's review in
accordance with the County's fiscal year. Upon request, allow the City or
City's agents to audit the Sewage Disposal System Enterprise Fund
City of Pontiac Sewage Disposal System
Operation & Maintenance
nr'nr" intc, books and statements, and provide City with supporting
documentation and copies of such materials if requested.
9, Upon request from the City, and in accordance with all applicable laws
and ordinances and proper notice to the user, the County shall terminate
any sewer service to a sewer customer that has failed to pay sewer
charges for a period of ninety (90) days following the date on which the
quarterly billing is due for such water service.
10. The County will provide, maintain and monitor a Supervisory Control and
Data Acquisition System (SCADA) to provide alarms on Sewage Disposal
System facilities operated and maintained by the County.
11. The County will provide a 24-hour, 7-day per week dispatch center to
receive alarms from the SCADA system and any other reports of Sewage
Disposal System emergencies, and will dispatch emergency service
crews to respond to such alarms and reports.
12. The County will, replace or repair existing components of the Sewage
Disposal System, which are identified by the County or City to be in need
of repair or replacement. Upon completion of such repairs and
replacements, the County will provide as-builts and update the GIS
infrastructure mapping and database, if the Sewage Disposal System has
been altered in any material way. Unless otherwise agreed in writing by
the Parties, the County's obligation to repair or replace shall be limited to
the fund balance contained in the Sewage Disposal System Enterprise
Fund.
13. All Services provided by the County under this Contract will be performed
in accordance with all applicable County, State and Federal permits and
regulations, all applicable State and Federal laws and all applicable City
ordinances.
14. The County shall establish, provide and implement sewer system
operation and maintenance related programs, studies, reports, testing,
sampling, inspections and surveys in accordance with City, State, and
Federal mandates..
15. The County will maintain, and update as necessary, GIS infrastructure
mapping and database of the Sewage Disposal System. The County will
also provide the City hard and digital copies of the mapping, and updates
as requested, in a manner compatible with the City's GIS system, and will
provide interconnectivity between the City and County GIS systems when
in place. The County will update the GIS mapping and database of the
Sewage Disposal System upon being provided as-builts or other
information from the City identifying corrections and/or modifications of
the Sewage Disposal System and upon the County performing Services
that result in modifications of the Sewage Disposal System. The City is
responsible for providing accurate "as-built" information.
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FISCAL NOTE (MISC. #12139) May 17, 2012
BY: FINANCE COMMITTEE, TOM MIDDLETON, CHAIRPERSON
IN RE: WATER RESOURCES COMMISSIONER - RESOLUTION TO ESTABLISH CITY OF
PONTIAC SEWAGE DISPOSAL SYSTEM AND AUTHORIZE CITY OF PONTIAC SEWAGE
DISPOSAL SYSTEM CONTRACT
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
Pursuant to Rule XII-C of this Board, the Finance Committee has
reviewed the above referenced resolution and finds:
- 1. This resolution establishes the City of Pontiac Sewage
Disposal System (the "System") and authorizes the contract
for Oakland County to proceed with the acquisition of the
Project for the City of Pontiac.
2. The acquisition of the Project can be most economically and
efficiently conducted by the County through the exercise of
the powers conferred by Act 342, Public Acts of Michigan,
1939, as amended ("Act 342").
3. The Project consists of acquiring a sewer disposal system
with improvements and facilities to promote the public health
and welfare of the residents.
4. Oakland County will assume the existing debt and the Water
Resources Commissioner will assume the administration,
operation and maintenance of the system.
5. The estimated cost of the Project based on outstanding debt
for the improvements and facilities is $23,160,000 with a 40
year and upward useful life.
6. The City of Pontiac shall remain obligated to repay the
Sewage Disposal Revenue Bonds from the net revenues of the
Project.
7. The Contract states that any amount due and owing to the
County which is still unpaid at the time the County
distributes funds to the City from the Delinquent Tax
Revolving Fund, the County shall be entitled to reduce, set-
off, and permanently retain any amount due co the City from
Delinquent Tax Revolving Fund by any such amount then still
dub and owing the County.
8. No County general funds shall be appropriated to this
Project.
FINANCE COMMITTEE
FINANCE COMMITTEE
Motion carried unanimously on a roll call vote with Quarles absent.
Resolution #12139 May 17, 2012
Moved by Taub supported by Zack the resolutions (with fiscal notes attached) on the Consent Agenda be
adopted (with accompanying reports being accepted).
AYES: Covey, Crawford, Dwyer, Gershenson, Gingell, Gosselin, Hoffman, Jackson, Long, Matis,
McGillivray, Middleton, Nash, Nuccio, Potts, Quarles, River, Runestad, Scott, Taub, Weipert,
Woodward, Zack, Bosnic. (24)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the Consent
Agenda were adopted (with accompanying reports being accepted).
I HEREBY APPROVE TN FOREGOING RESOLUTION
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Bill Bullard Jr., Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true
and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on May 17,
2012, with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at
Pontiac, Michigan this 171" day of May, 2012.
f?),U
Bill Bullard Jr., Oakland County