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HomeMy WebLinkAboutResolutions - 1992.10.22 - 21171• o• 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