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Miscellaneous Resolution # 92246 October 22 , 1992
BY: PLANNING & BUILDING COMMITTEE
JOHN OLSEN, CHAIRPERSON
IN RE: DRAIN COMMISSIONER
RESOLUTION TO AUTHORIZE OAKLAND COUNTY SEWAGE DISPOSAL
SYSTEM (WHITE LAKE TOWNSHIP EXTENSIONS -- UNION TAKE
ROAD IMPROVEMENTS) CONTRACT
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS, the Charter Township of White Lake (the
"Township") is in urgent need of sanitary sewer improvements,
which are described in the form of the proposed contract herein-
after mentioned as constituting the "Oakland County Sewage
Disposal System (White Lake Township Extensions -- Union Lake
Road Improvements)" (hereinafter sometimes referred to as the
"System"), in order to promote the health and welfare of the
residents thereof, which sanitary sewer improvements also would
benefit the County and its residents, and the parties to said
proposed contract have concluded that such improvements 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
especially Sections 5a, 5b and 5c thereof; and
WHEREAS, by the terms of Act 342, the County and the
Township are authorized to enter into a contract for the acquisi-
tion, construction and financing of the System to serve the
Township and for the payment of the cost thereof by the Township,
with interest, and the County is then authorized to issue its
bonds in one or more series to provide the funds necessary
therefor; and
WHEREAS, there has been submitted to this Board of
Commissioners a proposed contract between the County, by and
through the County Drain Commissioner, County Agency, party of
the first part, and the Township, party of the second part (the
"Contract"), which Contract provides for the acquisition,
construction and financing of the System 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 System; and
WHEREAS, this Board of Commissioners desires to proceed
with the establishment of the System and the approval and
execution of the Contract to acquire, construct and finance the
System as provided in the Contract.
THEREFORE, BE IT RESOLVED by the Board of Commissioners
of Oakland County, Michigan, as follows:
1. ESTABLISHMENT OF SYSTEM AND DESIGNATION OF COUNTY
AGENCY. This Board of Commissioners by majority vote of its
members-elect does hereby authorize and direct that there be
established, and there is hereby established, under and pursuant
to Act 342, sewage disposal facilities to be known as the
"Oakland County Sewage Disposal System (White Lake Township
Extensions -- Union Lake Road Improvements)," which shall consist
of sanitary sewer trunks and laterals, force mains, pump stations
and related sanitary sewer improvements, as specified and to be
located as shown in Exhibit A to the Contract; that the System
shall serve the Township; that the Oakland County Drain Commis-
sioner is hereby designated and appointed as the "County Agency"
for the Oakland County Sewage Disposal System (White Lake
Township Extensions -- Union Lake Road Improvements); that the
County Agency shall have all the powers and duties with respect
to the Oakland County Sewage Disposal System (White Lake Township
Extensions -- Union Lake Road Improvements) as are provided by
law and especially by Act 342; and that all obligations incurred
by the County Agency with respect to the Oakland County Sewage
Disposal System (White Lake Township Extensions -- Union Lake
Road Improvements), unless otherwise authorized by this Board of
Commissioners, shall be payable solely from funds derived from
the Township as hereinafter provided.
2. PLANS AND SPECIFICATIONS -- ESTIMATES OF PERIOD OF
USEFULNESS AND COST. The preliminary plans and specifications
for the System and the estimates of $6,000,000 as the cost
thereof and of 40 years and upwards as the period of usefulness
thereof, as submitted to this Board of Commissioners, are hereby
approved and adopted.
3. EXCEPTION FROM PRIOR TREASURY APPROVAL. The County
Drain Commissioner and the County Treasurer are each hereby
severally authorized to file with the Michigan Department of
Treasury a Notice of Intent to Issue an Obligation with respect
to each series of the aforementioned bonds in aggregate principal
amount not to exceed $6,000,000 and to pay, upon the filing of
said notice, the filing fee of $100 for each series of bonds to
-2-
be issued in principal amount less than $500,000 and $400 for
each series of bonds to be issued in principal amount of $500,000
or more.
4. APPROVAL OF CONTRACT. The Oakland County Sewage
Disposal System (White Lake Township Extensions -- Union Lake
Road Improvements) Contract dated as of August 1, 1992, between
the County, by and through the County Drain Commissioner, party
of the first part, and the Township, party of the second part,
which Contract has been submitted to this Board of Commissioners,
is hereby approved and adopted, and the County Drain 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, after the Contract has been executed by the
appropriate officials of the Township. The Contract reads as
follows:
ROBERT H. FREDERICKS
Chief Deputy Commissioner
858.0970
GEORGE W. KUHN
OAKLAND COUNTY DRAIN COMMISSIONER
ONE PUB-IC WORKS DRIVE
WATERFORD, MICHIGAN 48328-1907
858-0958
FAX # (313) 858-1088
GLEN YRJANAINEN
Deputy & Clue/ Engineer
Drain & Lakes Engineering
858-0481
WILLIAM E. KLOCKOW
Chief Engineer
Water & Sewer Engineering
858.1094
November 4, 1992
Dickinson, Wright, Moon,
Van Dusen & Freeman
One Detroit Center
500 Woodward Avenue - Suite 4000
Detroit, Michigan 48226-3425
Attention: Mr. Paul Wyzgoski
Reference: Oakland County Sewage Disposal System - White Lake
Township Extensions, Union Lake Road Improvements
Dear Mr. Wyzgoski:
Enclosed please find the following executed documents:
1. Oakland County Board of Commissioner's Resolution #92246,
dated October 22, 1992.
2. Order Declaring Official Intent to Reimburse Project
Expenditures with Bond Proceeds, dated October 22, 1992.
3. Oakland County Sewage Disposal System - White Lake
Township Extensions, Union Lake Road Improvements Con-
tract, dated August 1, 1992.
Please forward three (3) copies of the Non-Referendum Certificates
to the White Lake Township Clerk's Office for execution and return
to the Drain Commissioner's Office. Please also request that they
forward three (3) certified copies of the Affidavit of Publication.
Please call if you need any further information.
Very truly yours,
7-71
Phili
17
Sa zica, P.E.
Assistant Chief Engineer
PS/td
Enclosures
cc: Ms. Becky Wischman, Clerk's Office
I
OAKLAND COUNTY SEWAGE DISPOSAL SYSTEM
(White Lake Township Extensions --
Union Lake Road Improvements)
CONTRACT
THIS CONTRACT, made and entered into as of the 1st day
of August, 1992, 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 Drain Commis-
sioner, County Agency, party of the first part, and the CHARTER
TOWNSHIP OF WHITE LAKE, a charter township located in the County
(hereinafter sometimes referred to as the "Township"), party of
the second part,
WITNESSET H:
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 improvements
and services to serve the Township, said system to be known as
"Oakland County Sewage Disposal System (White' Lake Township
Extensions -- Union Lake Road Improvements)" (hereinafter
sometimes referred to as the "County System" or as the "System"),
and has designated the Oakland County Drain Commissioner as the
county agency for the System with all powers and duties with
respect thereto as are provided by Act 342 (said Drain Commis-
sioner 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 and
construct the sanitary sewer improvements hereinafter described
as constituting the County System, the County and the Township
are authorized to enter into a contract, as hereinafter provided,
for the acquisition and construction of the System by the County
and for financing all or part of the cost thereof by the issuance
of bonds by the County secured by the pledge of the full faith
and credit of the Township to pay such cost with interest to the
County in installments extending over a period not exceeding
forty (40) years, and the County is authorized to issue such
bonds and, if authorized by majority vote of the members-elect of
its Board of Commissioners, to pledge its full faith and credit
for the payment of such bonds and the interest thereon; and
WHEREAS, the Township is urgent need of such sanitary
sewer improvements in order to promote the health and welfare of
the residents thereof, which improvements would likewise benefit
the County and its residents, and the parties hereto have
1. The parties hereto approve and agree to the estab-
lishment, acquisition, construction and financing of the County
System, as herein provided, under and pursuant to Act 342. The
Township by way of compliance with Section 29, Article VII,
Michigan Constitution of 1963, consents and agrees to the
establishment and location of the System 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
purpose and facilities of the System and any improvements,
enlargements or extensions thereof, and the Township 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 easement, right-of-way, license, permit or consent
as may be requested by the County.
2. The County System shall consist of the sanitary
sewer trunks and laterals, force mains and pump stations,
together with all necessary appurtenances and related facilities,
which are described and specified on Exhibit A which is hereunto
attached and is made a part hereof, and as are more particularly
set forth in the preliminary plans which have been prepared and
submitted by the consulting engineers, which plans are on file
with the County Agency and are approved and adopted. The System
shall be acquired and constructed substantially in accordance
with said preliminary plans and in accordance with final plans
and specifications to be prepared and submitted by the consulting
engineers, but variations therefrom which do not materially
change the location, capacity or overall design of the System,
and which do not require an increase in the total estimated cost
of the System, may be permitted on the authority of the County
Agency. Other variations or changes may be made if approved by
the County Agency and by resolution of the Township Board of the
Township and if provisions required by Paragraph 5 hereof are
made for payment or financing of any resulting increase in the
total estimated cost. The estimate of the cost of the System and
the estimate of the period of usefulness thereof as set forth in
Exhibit B are approved and adopted.
3. The County Agency shall take or cause to be taken
all actions required or necessary, in accordance with Act 342, to
procure the issuance and sale of bonds by the County, in one or
more series, in whatever aggregate principal amount is necessary
to finance the cost of the System. Such bonds shall be issued in
anticipation of, and be payable primarily from, the payments to
be made by the Township to the County as provided in this
contract, and shall be secured secondarily, if so voted by the
Board of Commissioners of the County, by a pledge of the full
faith and credit of the County, and the said bonds shall be
payable in annual maturities the last of which shall be not more
than forty years from the date thereof.
4. The County Agency shall proceed to take construc-
tion bids for the improvements to be constructed and, subject to
the sale and delivery of bonds, enter into construction contracts
with the lowest responsible bidder or bidders, procure from the
contractors all necessary and proper bonds, cause the improve-
ments to be constructed within a reasonable time, and do all
other things required by this contract and the laws of the State
of Michigan. All certificates for required payments to
contractors shall be approved by the consulting engineers before
presentation to the County Agency and the latter shall be
entitled to rely on such approval in making payments.
5. In the event that it shall
increase the estimated cost of the System as
or if the actual cost of the System shall
cost, whether as the result of variations or
become necessary to
hereinbefore stated,
exceed the estimated
changes permitted to
be made in the approved plans or otherwise, then (without execu-
tion of any further contract or amendment of this contract) the
Township, by resolution of the Township Board adopted within
fifteen days after the receipt of construction bids, may direct
that a portion of the System be deleted sufficient to reduce the
total cost to
mated cost as
such deletion
an amount which shall not exceed the total esti-
hereinbefore stated by more than 5%, provided that
shall not materially change the general scope,
overall design, and purpose of the System, or in the absence of
the adoption of such a resolution the Township shall pay or
procure the payment of the increase or excess in cash, or County
bonds in an increased or additional amount (upon adoption of an
authorizing resolution therefor by the Board of Commissioners)
shall be issued to defray such increased or excess cost, to the
extent that funds therefor are not available from other sources;
provided, however, that no such increase or excess shall be
approved and no such increased or additional County bonds shall
be authorized to be issued, nor shall the County enter into any
contract for acquisition or construction of the System or any
part thereof or incur any obligation for or pay any item of cost
therefor, where the effect thereof would be to cause the total
cost of the System to exceed by more than 5% its total estimated
cost as hereinbefore stated, unless the Township Board previously
shall have adopted a resolution approving such increase or excess
and agreeing that the same (or such part thereof as is not avail-
able from other
the Township in
or additional
sources) shall be paid or its payment procured by
cash or be defrayed by the issuance of increased
County bonds in anticipation of increased or
additional payments agreed to be made by the Township to the
County in the manner hereinbefore provided; provided, further,
that the adoption of such resolution by the Township Board shall
not be required prior to or as a condition precedent to the
issuance of additional bonds by the County, if the County
previously has issued or contracted to sell bonds to pay all or
part of the cost of the System and the issuance of the additional
bonds is necessary (as determined by the County) to pay such
increased, additional or excess costs as are essential to
completion of the System according to the plans as last approved
prior to the time when the previous bonds were issued or
contracted to be sold.
6. The Township shall pay to the County the entire
cost of the System not defrayed by grants and funds available
from other sources, which for this purpose shall include, in
addition to the items of the nature set forth in Exhibit B
(represented by the principal amount of the bonds to be issued by
the County), all interest payable by the County on said bonds and
all paying agent fees and other expenses and charges (including
the County Agency's administrative expenses) which are payable on
account of said bonds (such fees, expenses and charges being
herein called "bond service charges"). Such payments shall be
made to the County in annual installments which shall be due and
payable at least thirty days prior to the day of the month
specified in the County bonds as the annual principal maturity
date thereof. Such an annual installment shall be so paid in
each year, if the principal and/or non-capitalized interest on
said bonds falls due during the twelve-month period beginning on
such principal maturity date in said year, and the amount of each
installment so due and payable shall be at least sufficient to
be levied for the purpose of raising money to meet such obliga-
tions. The County Agency promptly shall review such statement,
and if he finds that the proposed tax levy is insufficient, he
shall so notify the Township Board and the Township hereby
covenants and agrees that it will thereupon increase its levy to
such extent as may be required by the County Agency.
10. In the event that the Township shall fail for any
reason to pay to the County Agency at the times herein specified,
the amounts herein required to be paid, the state treasurer or
other official charged with the disbursement of unrestricted
state funds returnable to the Township pursuant to the Michigan
constitution is authorized hereby to withhold sufficient funds to
make up any default or deficiency in funds. In the event the
County is required to advance any money by reason of its pledge
of full faith and credit on the bonds to be issued to finance the
acquisition and construction of the System on account of the
delinquency of the Township the County Treasurer shall notify the
state treasurer to deduct the amount of money so advanced by the
County from any unrestricted moneys in the state treasurer's
possession belonging to the Township and to pay such amount to
the County. In addition to the foregoing, the County shall have
all other rights and remedies provided by law to enforce the
obligations of the Township to make payments in the manner and at
the times required by this contract. It is specifically
or to which such territory is annexed and the Township shall by
mutual agreement and with the written approval of the County
Agency fix and determine such proper proportionate share. The
County Agency, prior to making such determination, shall receive
a written recommendation as to the proper proportionate share
from a committee composed of one representative designated by the
Township Board of the Township, one designated by the governing
body of the new municipality or the municipality annexing such
territory and one independent registered engineer appointed by
the County Agency. Each governmental unit shall appoint its
representative within fifteen (15) days after being notified to
do so by the County Agency and within a like time the County
Agency shall appoint the engineer third member. If any such
representative (other than the appointee of the County Agency) is
not appointed within the time above provided, then the County
Agency may proceed without said recommendation. If the committee
shall not make the recommendation within forty-five (45) days
after its appointment or within any extension thereof by the
County Agency, then the County Agency may proceed without such
recommendation.
12. This contract is contingent upon the County issuing
its negotiable bonds as herein provided to defray such part of
the total estimated cost of the System as is necessary to be
financed, which bonds shall be issued under the authorization
provided in Section 5a, 5b and 5c of Act 342. Interest on the
bonds may be capitalized and paid from the bond proceeds for a
period not exceeding the estimated construction period and one
year thereafter. In the event that the bonds are not issued
within three years from the date of this contract, unless this
contract is extended by mutual agreement it shall become null and
void, except that the Township shall pay all engineering, legal
and other costs and expenses theretofore incurred and shall be
entitled to all plans, specifications and other engineering data
and materials.
13. After completion the operation and maintenance of
the System shall be in accordance with applicable agreements
between the County and the Township.
14. It is understood and agreed by the parties hereto
that the System is to serve the Township and not the individual
property owners and users thereof, unless by special arrangement
between the County Agency and the Township. The responsibility
of requiring connection to and use of the System and/or providing
such additional facilities as may be needed shall be that of the
Township 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
By:
And:
charges pertaining to said bonds. This contract may be executed
in several counterparts. The provisions of this contract shall
inure to the benefit of and be binding upon the successors and
assigns of the parties hereto.
IN WITNESS WHEREOF, the parties hereto have caused this
contract to be executed and delivered by the undersigned, being
duly authorized by the respective governing bodies of such
parties, all as of the day and year first above written.
County Dr91.n Commissioner
(County 44ency)
CHARTER TOWNSHIP OF WHITE LAKE
Clerk
PMW/09207/0012/AR9/2
-19-
ORDER DECLARING OFFICIAL INTENT
TO REIMBURSE PROJECT EXPENDITURES
WITH BOND PROCEEDS
WHEREAS, the County of Oakland (the "County") has been
requested by the Charter Township of White Lake (the "Municipal-
ity") under the provisions of Act No. 342, Public Acts of
Michigan, 1939, as amended ("Act 342"), to finance on behalf of
the Municipality the acquisition and construction of sanitary
sewer facilities as hereinafter described (the "Project"); and
WHEREAS, it is anticipated that the Municipality and the
County will enter into a contract under Act 342, pursuant to
which contract the County will acquire and construct the Project
and issue its tax-exempt bonds (the "Bonds") to finance all or
part of the cost of the Project; and
WHEREAS, it is anticipated that the County will advance
all or a portion of the costs of the Project prior to the
issuance of the Bonds, such advance to be repaid from proceeds of
the Bonds upon the issuance thereof; and
WHEREAS, the Oakland County Drain Commissioner (the
"Drain Commissioner"), pursuant to Miscellaneous Resolution no.
92049 adopted by the County Board of Commissioners on March 19,
1992, is authorized on behalf of the County to declare "official
fNG AND BUILDING COMMITTEE
•
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.
HER, -FFtv APPROVE THE FOREGOING RESOLUTION
PMW/09207/0011/AU1/2
-4-
I •Resolution # 92246 October 22, 1992
Moved by Olsen supported by Huntoon the resolution be adopted.
AYES: Johnson, Krause, Law, McConnell, McCulloch, McPherson, Moffitt, Oaks,
Obrecht, Olsen, Palmer, Pappageorge, Schmid, Serra, Skarritt, Wolf, Aaron, Bishop,
Caddell, Crake, Gosling, Huntoon, Jensen. (23)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND
I, Lynn O. Allen, 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 October 22, 1992
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 22nd :ay 9 October 1992
Lynn/D. Allen, County CiiFX
NON-REFERENDUM CERTIFICATE
STATE OF MICHIGAN)
)SS.
COUNTY OF OAKLAND)
BONNIE L. ELLIOTT, being first duly sworn, deposes and
says that she is the Clerk of the Charter Township of White Lake,
County of Oakland, Michigan, and as such is the recording officer
of said Township; that the NOTICE OF ADOPTION OF RESOLUTION BY
TOWNSHIP BOARD AUTHORIZING EXECUTION OF A CONTRACT PLEDGING FULL
FAITH AND CREDIT AND TAXING POWER OF THE TOWNSHIP AND NOTICE OF
RIGHT TO PETITION FOR REFERENDUM UPON THE CONTRACT was duly
published in The Spinal Column on the 944, day of Seffe_rnber'
1992; and that since the publication of said notice, no petition
requesting a referendum upon the contract has been filed with her
or in her office.
FURTHER DEPONENT SAITH NOT.
.y L.,...4,1, , ,-- ....t_ /
BONNIE L. ELLIOTT, Clerk
Charter Township of White Lake
Subscrild and sworn to before me
this 'YTh day of A.'nu,...,/,1A 1992.
(Lid (1.0
Notary Public, Oakland County, Michigan
My Commission Expires:
PMW10920710012/AU5/1
RONALD CLARE VOOPHEIS
Notary Puttic, Oakicria County. kV
'Ay Commission Explres -lune 24.1995
I Further information relative to the subject matter of the contract and this notice, including the de-
scription and location of the system, may be secured at the office of the mship Clerk where a copy
of the contract is available for examination during normal business hours.
This notice is given pursuant to the provisions of Section 5b of Act 342, Public Acts of Michigan.
1939, as amended.
BONNIE L ELLIOTT, CLERK
CHARTER TOWNSHIP OF WHITE UUCE SC: 9-9-92