HomeMy WebLinkAboutResolutions - 2017.10.26 - 23169MISCELLANEOUS RESOLUTION #17306 October 26, 2017
BY: Commissioner Philip J. Weipert, Chairperson, Planning and Building Committee
IN RE: WATER RESOURCES COMMISSIONER -- WATER SYSTEM OPERATIONS AND
MAINTENANCE AGREEMENT BETWEEN THE COUNTY OF OAKLAND AND THE
CHARTER TOWNSHIP OF OAKLAND
To the Oakland County Board of Commissioners:
Chairperson, Ladies and Gentlemen:
WHEREAS the Charter Township of Oakland desires to engage the County of Oakland to operate and
maintain its water system; and
WHEREAS pursuant to resolutions adopted by their respective legislative bodies, the parties each have
been authorized to execute an agreement for services according to the terms and conditions of the
attached Agreement; and
WHEREAS the purpose of the Agreement is to authorize the County to operate and maintain the water
system on behalf of the Township on a non-profit basis and in accordance with the services detailed in
the Agreement; and
WHEREAS the services to be provided by the County to the Township shall be performed by personnel
of the Oakland County Water Resources Commissioner's office and/or contractors on its behalf; and
WHEREAS the County's costs and overhead incurred for the services shall be compensated from the
revenue from the system; and
WHEREAS in the event that the costs and overhead exceed the revenue in any one year, then any
deficiency may be recovered by adjusting the rates and charges to customers of the system.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby
approves the request to enter into an agreement between the County and the Charter Township of
Oakland for the purpose of operation and maintenance of the township's water system.
BE IT FURTHER RESOLVED that the Agreement shall be effective for an initial term of ten (10) years
from the effective date and shall be automatically extended for an additional ten (10) years unless
terminated according to the terms of the Agreement.
Chairperson, I move the adoption of the foregoing resolution. /"..-1
COmrrfissioner Philip J. Weipert, District #8
Chbifperson, Planning and Building Committee
PLANNING AND BUILDING COMMITTEE
Motion carried unanimously on a roll call vote with Quarles absent.
CHARTER TOWNSHIP OF OAKLAND
WATER SYSTEM
OPERATION AND MAINTENANCE AGREEMENT
THIS AGREEMENT is made and entered into as of the day of
2017 ("Effective Date") by and between the COUNTY OF OAKLAND, a Michigan constitutional
corporation ("County"), whose address is 1200 N. Telegraph, Pontiac, Michigan and the
CHARTER TOWNSHIP OF OAKLAND, a Michigan charter township, whose address is 4393
Collins Road, Rochester, Michigan ("Township"). In this Agreement, either the County and/or
Township may also be referred to individually as a "Party" or jointly as "Parties."
Recitals:
WHEREAS, the Township is the owner of a water supply system, which includes wells,
water mains and appurtenances which collectively is known as the Charter Township of
Oakland Water Supply System, as set forth in the attached Exhibit A and as it may be
expanded or altered from time to time (the "System"); and,
WHEREAS, the Township desires to engage the County to operate and maintain the
System on behalf of the Township, on a non-profit basis and in return for reimbursement to the
County of all costs in providing such Services as set forth for in this Agreement; and,
WHEREAS, the County, by and through the Office of the Oakland County Water
Resources Commissioner ("WRC"), has qualified personnel capable of providing water
operations and maintenance services; and,
WHEREAS, the Michigan Constitution of 1963, Article 7, § 28, and the Urban
Cooperation 'Act of 1967, being MCL 124.501, et. seq. (the "Act"), authorizes a political
subdivision to exercise jointly with any other political subdivision any power, privilege or
authority which such political subdivisions share in common with which each might exercise
separately; and,
WHEREAS, pursuant to resolutions adopted by their respective legislative bodies, the
Parties each have been authorized to execute this Agreement for the Services according to the
terms and conditions of this Agreement.
NOW, THEREFORE, in consideration of these premises and the mutual promises,
representations, and agreements set forth in this Agreement, and for other good and valuable
consideration, the receipt and adequacy of which is hereby acknowledged, the County and the
Township mutually agree as follows:
Article I. Statement of Authority and Purpose.
1.1 Authority. Pursuant to Act 7 of 1967, and any other applicable laws of the State of
Michigan, the County and the Township enter into this Agreement to establish terms and
conditions for the operation and maintenance of the System. Each Party agrees to take
all actions reasonably necessary to effectuate the objectives set forth in this Agreement.
1.2 Purpose. The purpose of this Agreement is to authorize the County to operate and
maintain the System on behalf of the Township on a non-profit basis and in accordance
with the Services detailed in Exhibit B attached hereto. In exchange for the Services, the
County shall be reimbursed for its Costs and Overhead from the Revenue collected and
deposited in the System Enterprise Fund maintained by the County on behalf of and for
the benefit of the Township; including, any and all existing Fund balance as of the water
system transfer date
Article Definitions.
In addition to the above defined terms (i.e., "Agreement", "County", "Township", "WRC", "Party"
and "Parties") and any terms defined in other sections of this Agreement (e.g., "Services"), the
Parties agree that the following words and expressions, whether used in the singular or plural,
possessive or non-possessive, and/or either within or without quotation marks, shall be defined
and interpreted as follows:
2.1 "Agreement" shall mean each of the various provisions and parts of this document,
including all attached Exhibits and any amendments thereto, as may be executed and
approved by the Parties.
2.2 'Costs" shall be defined as the labor, including statutory and customary fringe benefits,
overtime, material and supplies, power and utility services, vehicle/equipment rental and
subcontractor services devoted to the Services as defined in this Agreement.
2.3 "Contractor" shall be defined as an independent contractor engaged by the County to
perform the Services and responsibilities necessary to carry out the objectives under this
Agreement.
2.4 "County Agent" or "County Agents" shall be defined as any and all Oakland County
elected officials, appointed officials, directors, board members, commissioners,
authorities, other boards, committees, commissions, employees, managers,
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departments, divisions, volunteers, agents, representatives, and/or any such persons'
successors or predecessors (whether such persons act or acted in their personal
representative or official capacities), and/or any persons acting by, through, under, or in
concert with any of them, excluding the Township and/or any Township Agents, as
defined herein.
2.5 "WRC Personnel" as used in this Agreement shall be defined as a specific subset of,
and included as part of the larger group of County Agents as defined above, and
assigned by the County to work in the Office of the Oakland County Water Resources
Commissioner as shown in the County budget and/or personnel records of the County,
but for purposes herein are limited to personnel and agents who perform services on the
Oakland Township System.
2.6 "Township Agent" or "Township Agents", shall be defined to include any and all
Township officers, elected officials, appointed officials, directors, board members,
council members, authorities, boards, committees, commissions, employees, managers,
departments, divisions, agents, representatives, consultants, and/or any such persons'
successors or predecessors (if such persons acted in their representative or official
capacities), and/or any persons acting by, through, under, or in concert with any of them,
excluding the County and/or any County Agents, as defined herein. In no event shall
this definition extend the Township's authority to any person or entity which has not been
previously approved with such authority and all authority specifically remains with the
Township Board of Trustees and its authorized Manager.
2.7 "Claim(s)" shall be defined to include any and all alleged claims, complaints, demands
for relief or damages, lawsuits, and causes of action, whether in law or equity, tort,
contract, or otherwise, by third parties, arising out of the ownership, operation,
maintenance of the System, but does not include claims between the Parties.
2.8 "Overhead" shall be defined to include the following: all allocation of the labor cost,
including statutory and customary fringe benefits, of personnel responsible for
implementing or supervising the work performed in connection with this contract; an
allocation of expenses related to the work performed by the WRC; and an allocation of
indirect costs of Oakland County charged to the WRC for support services, such as (but
not limited to) legal, personnel, accounting, computer support, and insurance/risk
management; to the extent such indirect costs are charged based on a legally defensible
and appropriate methodology and has been shown by WRC to have been calculated
consistent with the methodology. (See Exhibit "C").
2.9 "Rates and Charges" shall be defined as the charges and other fees, such as late fees,
connection charges, capital charges, meter charges, assessed against and paid by the
users of the System for the services provided by the Township, including without
limitation the Services provided pursuant to this Agreement, as periodically established
by resolution of the Township.
2.10 "Revenue" shall be defined as the funds derived from the Rates and Charges assessed
against and paid by customers or users of the System, and other sources of revenue,
such as grants.
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2.11 "State" shall be defined as the "State of Michigan," a sovereign governmental entity of
the United States, and shall also include within its definition any and all departments or
agencies of State government.
2.12 "System Enterprise Fund" shall be defined as the account for the System established
and maintained by the County on behalf of the Township.
Article ill. County Responsibilities; WRC Operation and Maintenance Services.
3.1 Services. The County agrees to perform the operation and maintenance services for the
System (all of the following being referred to in this Agreement as the "WRC Services" or
"Services") as set forth in Exhibit B attached to this Agreement.
(a) The Services to be provided by the County to the Township under this
Agreement shall be performed by the County's 'VVRC Personnel" and/or
Contractor. The County will maintain and designate a sufficient number of County
Agents, having sufficient qualifications, in order to carry out and provide the
Services in a timely manner under and in accordance with this Agreement.
However, the County will give due consideration to any input received from the
Township concerning the number and charges of Contractors and WRC
Personnel assigned to provide Services for the System.
(b) The County shall be responsible for furnishing all WRC Personnel and
Contractors with all job instructions, job descriptions and job specifications and
shall in all circumstances control, supervise, train or direct all WRC Personnel in
the performance of any and all Services under this Agreement. The County shall
remain the sole and exclusive employer of all County Agents and WRC
Personnel.
(c) This Agreement is neither intended, nor shall it be interpreted, to create, change,
or otherwise affect or control, in any manner any employment right, privilege,
benefit, or any other term or condition of employment, of any kind or nature
whatsoever, in, upon, or for any County Agent or WRC Personnel. Except as
expressly provided for under the terms of this Agreement and/or laws of this
State, no County Agent or WRC Personnel, while such person is currently and/or
actively employed by the County shall be employed or utilized to perform any
other services by or for the Township during the term of this Agreement. This
section shall not prohibit the Township from employing any person who was a
former County Agent but is no longer employed in that capacity by the County.
The limitations of Section 3.1(c) may be waived by written consent of both
parties.
3.2 System Costs and Expenses. Upon the Township approving the County's annually
recommended rates and charges, the County's costs, overhead and any other expense
are intended to not exceed the revenue collected for the fiscal year covered by the
approved rates and changes. Unanticipated or emergency costs and expenses may be
paid from the System Enterprise Fund balance and, if necessary, replenished by
increases in future approved rates and charges. The County's recommended rates and
changes shall include a reasonable and legally defensible amount for creating a fund
reserve, sufficient for future operations and unintended or emergency costs or
expenditures.
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3.3 System Capital Replacement Expenditures. The County shall not expend funds from the
System Enterprise Fund for capital replacement or improvement projects without prior
approval from the Township.
3.4 Independent Contractor. At all times and for all purposes under the terms of this
Agreement, the County and/or any and all County Agents' legal status and relationship
to the Township shall be that of an Independent Contractor.
3.5 Insurance - County. It shall be the responsibility of the County to determine and obtain
General Liability Insurance or self-insurance to protect against the County's liabilities
and exposures set forth in Article VI. The costs related thereto shall be included as a
System Cost.
3.6 Permit Assistance. The County will assist the Township in the procurement of all
permits, guarantees, warranties, easements, licenses, and other similar approvals and
consents necessary to operate and maintain the System received by or granted to the
Township as the owner of the System.
3.7 Regulatory Compliance. The County will supervise all regulatory compliance and
financial transactions, except for the enforcement of the Township's ordinances or
regulations.
3.8 Disbursing Funds. Upon request from the Township for the dispersal of funds from the
System Enterprise Fund, the County shall promptly disburse funds to the Township in the
amount and manner requested. As determined by the Township, the Township shall
maintain a balance in the System Enterprise Fund adequate for the operation and
maintenance of the System. In the event this Agreement is terminated or is no longer
enforceable, the System Enterprise Fund balance shall be paid over to the Township upon
the Township's demand.
3,9 Delinquent Water Bills. When requested, the County shall provide a report identifying al
owners or occupiers of any premises connected to the System that are 90 days or more
delinquent in payment of any rates, fees and/or charges, inclusive of the current amount of
each such delinquency. The County shall provide the Township delinquent billings, at the
appropriate time and according to law, for placement on and collection under the tax roll by
the Township. The County shall follow and take responsibility for compliance with all
applicable laws or County adopted policies as it related to the shut off of water of any
Oakland Township user, including, but not limited to, providing the appropriate notice and
opportunity to correct.
Article IV. Township's Responsibilities.
4.1 Ordinance — Rates and Charges. The Township has adopted or shall hereafter adopt
one or more ordinances or resolutions as are necessary under the terms of the
Agreement, which provides the Rates and Charges sufficient to provide the Revenue
necessary to reimburse the County for its Costs and Overhead related to the Services
provided by the Agreement; and provide for the billing and collection of the Rates and
Charges pertaining to the System. On an annual basis and at a time determined by the
system budgeting process, the County will present to the Township Board of Trustees
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the rationale and a resolution setting forth the following year's recommended rates and
charges.
4.2 Ordinance — Enforcement. Except as otherwise stated herein, The Township is
responsible for enforcement of the Township's ordinances and regulations relating to the
System.
4.3 Capital Replacement of System. The Township shall be responsible for expenditures for
all capital replacement of System components. The Township may use the System
Enterprise Fund balance for any capital expenditure, improvement, replacement and/or
repair. The County shall analyze the current needs and long-term future needs of the
system and report to the Township its results and, when appropriate, any recommended
expenditures, improvements, replacements and/or repairs. In the event any action or
expenditure to the System is necessary to immediately protect the health, wealth or
safety of any resident, the County is hereby authorized to take any and all emergency
actions or expenditure to protect same. Any capital improvement expenditure which is
not an emergency and is not necessary for the immediate protection of the health,
welfare, or safety of the residents, must be pre-approved by the Township.
4.4 Testing and Sampling Fees; Consultant Fees. The Township agrees that the term Costs
includes, but not limited to, fees for testing, sampling, engineering services or studies,
hydrological studies, master planning, capital improvements, as well as all of the costs
related to procurement of the same, are a Cost which may be accounted for in the Rates
and Charges.
4.5 Permits - Township. The Township will be responsible for procuring, and in accordance
with their respective terms, all permits, guarantees, warranties, easements, licenses,
and other similar approvals and consents necessary to operate and maintain the System
received by or granted to the Township as the owner of the System.
4.6 Township - Insurance.
(a) It shall be the responsibility of the Township to determine and obtain real
and personal property insurance or self-insurance with limits that the Township in
its discretion, deems necessary and appropriate for the System and components
of the System.
(b) It shall be the responsibility of the Township to determine and obtain
General Liability Insurance or self-insurance to protect the Township's liabilities
and exposures set forth in Article VI.
4.7 Property Access. Township will be responsible for and will secure the right of access
necessary for WRC Personnel or Contractors to perform the Services under this
Agreement. The Township will be responsible for all costs or Claims associated with
securing rights of access.
4.8 Compliance with State and Federal Law and Regulations. The Township will be and
remain responsible for Costs associated with compliance with all federal, State, and
local laws, ordinances, regulations, and requirements in any manner affecting any work
or performance of this Agreement or with any Township duty or obligation under any
applicable State or federal laws and/or regulations.
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4.9 System Ownership. Notwithstanding any other term or condition in this Agreement, no
provision in this Agreement is intended, nor shall it be construed, as constituting a
divestiture or forfeiture of the Township's absolute ownership of and authority over the
System.
Article V. Compensation for Services.
5.1 Compensation from System Revenue. The County's Costs and Overhead incurred for
the Services shall be compensated from the Revenue from the System. In the event that
the Costs and Overhead exceed the Revenue in any one year, the deficiency shall be
recovered by adjusting the Rates and Charges charged to customers of the System or
from the System Enterprise Fund's balance or, as a last resort, as approved by the
Township from the general fund of the Township. In the event that annual Costs and
Overhead are less than the annual Revenue, the excess revenue shall be kept in the
System Enterprise Fund for the benefit of the Township and to be used or kept as
directed by the Township. At the sole discretion and direction of the Township, at any
time, future rates to the customers may be adjusted to balance the account.
5.2 County Services Performed Non-Profit Basis. The Township acknowledges and agrees
that the County will assist the Township in the operations and maintenance of the
System on a non-profit basis for the benefit of the users of the system and therefore the
County is without funds to finance, operate and maintain the System except for the
Revenue derived from the System users. Therefore, it is understood and agreed that in
no event shall the County or its general fund be charged with or liable for the cost of
operating, maintaining, repairing, replacing, or administering the System. All Costs and
Overhead associated with the Services under this Agreement will be the responsibility of
the Township.
Article VI. Standard of Care; Warranty Waiver; Consequential Damages; Liability.
6.1 Standard of Care; Waiver of Warranty and Consequential Damages. The County will
perform the Services under this Agreement in accordance with the standard of care and
diligence normally provided by other professional firms providing similar Services.
However, the County makes no warranty, express or implied, with respect to any
Services provided. SPECIFICALLY, NO WARRANTY OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER WARRANTY IS MADE
OR TO BE IMPLIED BY THE COUNTY WITH RESPECT TO SERVICES PROVIDED
UNDER THIS AGREEMENT. NOTWITHSTANDING ANY PROVISION CONTAINED IN
THIS AGREEMENT, IN NO EVENT SHALL THE COUNTY BE LIABLE FOR ANY
INDIRECT, INCIDENTAL, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES
WHATSOEVER UNDER CONTRACT, TORT OR OTHERWISE.
6.2 Liability for Claims. Except as otherwise provided in this Agreement, it is understood that
each Party shall be responsible for any Claims made against that Party and for the acts
or omissions of its respective employees or Township/County Agents. With respect to
Claims that arise from the performance of this Agreement, each Party shall seek its own
legal representation and bear the costs associated with such representation including
attorney fees. Except as otherwise provided in this Agreement, neither Party shall have
any right under any legal principle to be indemnified by the other Party or any of its
employees or Agents in connection with any Claim. This Agreement does not, and is not
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intended to, impair, divest, delegate or contravene any constitutional, statutory, and/or
other legal right, privilege, power, obligation, duty or immunity of the Parties. Nothing in
this Agreement shall be construed as a waiver of the privileges and immunities as
provided by law afforded to the Parties. The Parties expressly reserve all privileges and
immunities as provided by law.
6.3 Force Majeure; System Malfunction; Misuse or Vandalism of System. The Township will
be responsible for damage and liability to the System or components thereof caused by
flood, fire, Acts of God or other force majeure, civil disturbance, Acts of War, terrorism or
misuse of property by third parties. In addition, the Township will be responsible for all
Claims, damages and liability caused by design and/or construction defects, malfunction
or failure of the System or any component thereof; including, water loss, main breaks,
hydrant damage and vandalism provided the same is not directly caused by the acts or
omissions of County Agents.
6.4 No Third Party Beneficiary. This Agreement does not create any rights or benefits to
parties other than the Township and the County.
Article VII. Cooperation and Communication; Dispute Resolution.
7.1 Cooperation. The County agrees to ensure that all County Agents fully cooperate with
Township and Township Agents in the performance of all Services under this
Agreement. The Township agrees to ensure that Township Agents cooperate with WRC
Personnel in the performance of the Services under this Agreement.
7.2 Communication. There shall be an open and direct line of communication established
and maintained between the Parties in order to promote the handling of both routine and
emergency situations in a timely and cooperative manner according to the
circumstances as they exist or become known. Each Party will designate one or more
liaisons for such purposes, and will notify the other Party of such designee(s).The
liaisons shall also be used for purposes of communicating and coordinating specific
needs, plans, instructions, issues, concerns and other matters relating to the System or
Services.
7.3 Dispute Resolution. The Parties agree that any and all claims alleging a breach of this
Agreement or with respect to the Services provided under this Agreement, shall first be
submitted to an alternative dispute resolution process. Such an alternative dispute
resolution process may include, but is not limited to, facilitation, binding arbitration, or
non-binding arbitration. The Parties shall agree upon the form and procedures for the
agreed upon alternative dispute resolution process. If the matter is not resolved through
an alternative dispute resolution process, or if the Parties cannot agree upon the form
and procedures for the alternative dispute resolution process, the Parties may seek legal
recourse in a court of competent jurisdiction. For claims requiring immediate relief to
prevent irreparable harm, either Party may seek relief directly from a court of competent
jurisdiction without submitting the matter to the alternative dispute resolution process.
Article VIII. Term; and Termination.
8.1 Term. The Parties agree that the term of this Agreement shall begin on the Effective
Date of this Agreement. This Agreement shall be effective for an initial term of ten (10)
years from the effective date, and shall be automatically extended for additional ten (10)
8
year terms, unless terminated as provided herein, or otherwise agreed to in writing by
the Parties.
8.2 Termination. Notwithstanding any other term or provision in any other section of this
Agreement, either Party, upon a minimum of One Hundred and Eighty (180) calendar
days written notice to the other Party, may terminate this Agreement for any reason,
including convenience, without incurring any penalty, expense, or liability to the other
Party. The effective date for any such termination is to be clearly stated in the notice.
8.3 Survival of Certain Terms and Conditions Following Termination or Expiration of
Agreement. The Parties agree that record-keeping and audit requirements, any payment
obligations to the other Party, and/or any other related obligations provided for in this
Agreement with regard to any acts, occurrences, events, transactions, or Claim(s) either
occurring or having their basis in any events or transactions that occurred during the
term of this Agreement, shall survive the termination or expiration of this Agreement.
Upon termination, the County will provide to the Township all records, documents and/or
other materials kept by the County related to the water system or a service provided
herein.
8.4 Cooperation Foilowing Termination of Agreement. In the event the Agreement is
terminated as provided herein, the Parties agree to cooperate in all respects and assist
in the wind down from the County's operation and maintenance of the System. The
Township will be responsible for all Costs and Overhead incurred by the County through
the date of termination, including the Costs and Overhead incurred by the County during
the termination notice period referenced above to wind down and end of the County's
involvement in the provision of the Services.
Article IX. Agreement Approval; Effective Date; and Amendments; Changes to
Scope of Services.
9.1 Agreement Approval; Amendments; and Effective Date. Except as otherwise provided
herein, this Agreement, and/or any subsequent amendments thereto, shall not become
effective prior to the approval by resolutions of both the Township and the County. The
Effective Date of this Agreement, and any amendments hereto, shall be the date as
reflected in the opening paragraph of this Agreement.
9.2 Amendment to Scope of Services. During the term of this Agreement, the Scope of
Services attached hereto as Exhibit B, may be amended by the WRC and approved by
resolution of the Township during the term of this Agreement without requiring a
resoiution from the County Board of Commissioners.
Article X. General Provisions.
10.1 Governing Law. This Agreement is made and entered into in the State of Michigan and
shall in all respects be interpreted, enforced and governed under the laws of the State of
Michigan. The language of all parts of this Agreement is intended to and, in all cases,
shall be construed as a whole according to its fair meaning, and not construed strictly for
or against any party. As used in this Agreement, the singular OF plural number,
possessive or non-possessive shall be deemed to include the other whenever the
context so suggests or requires.
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10.2 Reservation of Rights; Governmental Function. This Agreement does not, and is not
intended to impair, divest, delegate, or contravene any constitutional, statutory, and/or
other legal right, privilege, power, obligation, duty, or immunity of the Parties. In addition,
the Parties maintain that the obligations set forth in this Agreement will be in the exercise
or discharge of a governmental function.
10.3 Severability. If any provision of this Agreement or the application to any person or
circumstance is, to any extent, judicially determined to be invalid or unenforceable, the
remainder of the Agreement, or the application of the provision of persons or
circumstances other than those as to which it is invalid or unenforceable, is not affected
and is enforceable, provided the invalid provision does not substantially alter the
Agreement or make execution impractical.
10.4 Binding Contract; Assignment; and Amendments. This Agreement will be binding upon
and for the benefit of the Parties hereto and their respective successors and assigns,
subject to any assignment requiring the prior written consent of the non-assigning Party
by an amendment to this Agreement signed by all Parties, and the assignee binding the
assignee to the terms and provisions of this Agreement.
10.5 Captions. The section headings or titles and/or all section numbers contained in this
Agreement are intended for the convenience of the reader and not intended to have any
substantive meaning and are not to be interpreted as part of this Agreement.
10.6 Notices. Except as otherwise expressly provided for herein, any and all correspondence,
invoices, and/or any other written notices required, permitted or provided for under this
Agreement to be delivered to the following:
COUNTY OF OAKLAND:
OAKLAND COUNTY WATER
RESOURCES COMMISSIONER
1 Public Works Drive
Waterford, Michigan 48328
TOWNSHIP:
Township Manager
Charter Township of Oakland
4393 Collins Road
Rochester, Michigan 48306
10.7 Notice Delivery. Except with respect to notices of termination, all correspondence and
written notices shall be considered delivered to a Party as of the date that such notice is
deposited with sufficient postage with the U.S. Postal Service. Notices of termination
shall be personally delivered or sent by certified mail, return receipt requested, and shall
be considered delivered to a party on the date of receipt as represented by the return
receipt or by a proof of personal service.
10.8 Entire Agreement. This Agreement sets forth the entire agreement between the County
and the Township and fully supersedes any and all prior agreements or understandings
between them in any way related to the subject matter hereof. It is further understood
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and agreed that the terms and conditions herein are contractual and are not a mere
recital and that there are no other agreements, understandings, contracts, or
representations between the County and the Township in any way related to the subject
matter hereof, except as expressly stated herein. This Agreement shall not be changed
or supplemented orally and may be amended only as otherwise provided herein.
10.9 Recitals. The recitals shall be considered an integral part of the Agreement.
IN WITNESS WHEREOF, this Agreement if executed by the Parties on the date
hereafter set forth in the opening paragraph of this Agreement.
COUNTY OF OAKLAND
By:
Michael J. Gingell, Chairperson
Oakland County Board of Commissioners
CHARTER TOWNSHIP OF OAKLAND
By: v 5
Mike Bailey, Supen.gor
By:
Karen Reilly, Clerk
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Exhibit A
Charter Township of Oakland
Water Main
Legend
Oakland Twp.
Water Main
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Charter Township of Oakland Water System
Operation & Maintenance
Exhibit B
Scope of Services
Water System Operation and Maintenance
The County agrees to perform the following operation and maintenance services of the Charter
Township of Oakland Water System ("System") (all of the following being referred as the "WRC Services"
or "Services") on behalf of the Township:
1 Operation and maintenance of booster pump stations, pressure reducing valves, storage tank(s),
and appurtenances including the payment of power costs, lawn and landscape maintenance, and
all sampling and testing required by the County, state and federal government.
2. Read water meters for billing purposes.
3. Operation and maintenance of the System, including all system mains, meters, public service
leads, fire hydrants, valves, and all other facilities, equipment and appurtenances that are part of
the System. The water service lead between the service valve and the water meter is the
responsibility of the property owner and will not be maintained by the WRC as it is not a part of
the System.
4. Perform residential and commercial cross connection inspections in accordance with the
Michigan Safe Drinking Water Act, Public Act 399 of the Public Acts of 1976, as amended (MCLA
325.1001 et seq), and the rules promulgated thereunder, and the WRC's Cross-Connection
Program.
5. Compute and bill charges for the Services rendered to each user connected to the System in
accordance with the Rates and Charges established by the Township. The charges will be
payable thirty (30) days after the date of each billing cycle or such other time period as may be
set by the Township by ordinance or resolution and shall bear such penalties and late charges.
6. Receive and process all payments from customers of the System, and respond to customer and
Township inquiries regarding billing. Provide delinquent billings, at the appropriate time and
according to law, for placement on and collection under the tax roll by the Township. In the event
of customers declaring bankruptcy and listing delinquent water bills in the bankruptcy
proceedings, report sto the Township for follow-up, and provide all necessary information to
Township.
7 Receive and process all applications relating to water service connections to the System and
collect all Rates and Charges relating to service connections.
8. Install all water service connections to the System, two (2) inches or less, including tapping the
water main, installing the service lead within the road right-of-way or easement, installing a curb
stop, supplying the water meter, and installation of the reading device.
9. Respond to requests from customers and Township for maintenance, water quality concerns,
inspections and repairs, both emergency and routine.
10. Establish, maintain, manage, and administer a System Enterprise Fund. Revenue collected by
the County shall be deposited and maintained for the benefit of the Township in the System
Enterprise Fund. Costs for performing the Services under this Contract will be deducted from the
System Enterprise Fund as payment for such Services. The County may establish a reserve for
system emergencies or system replacement. Upon termination of the Operation and
Maintenance Agreement or as allowed therein, all money or Fund/balances held by the County
shall be turned over to the Township, less any cost owed to the County under the Agreement.
Charter Township of Oakland Water System
Operation & Maintenance
11. Keep all necessary records and books of account pertaining to its dealings with the users of the
System within the Township and the System Enterprise Fund, and make same available to the
Township upon request.
12. Comply with applicable laws and governmental accounting standards in the keeping,
management, administration, use and auditing of the System Enterprise Fund. Upon request of
the Township, provide Township a quarterly accounting statement, a quarterly operation and
maintenance activity report and annual report for the Township's review in accordance with the
County's fiscal year. Upon request, allow the Township or Township agents to audit the System
Enterprise Fund accounts, books and statements, and provide Township with supporting
documentation and copies of such materials if requested.
13. Subject to applicable laws, Township ordinances and proper notice to the System users, on
behalf of the Township, the County may terminate any water service to a water customer that has
failed to pay the customer's water charges for a period of ninety (90) days following the date on
which the quarterly billing is due, or sixty (60) days for monthly billing, for such water service. The
County shall notify the Township at least seven (7) days prior to termination of water service.
14. The County will pay over to the Township, upon request, any surcharges for water connections
for water service which the Township may establish and any charges in excess of the Rates and
Charges established and collected by the County.
15. The County will provide, maintain and monitor a Supervisory Control and Data Acquisition
System (SCADA) to provide alarms on System facilities operated and maintained by the County.
16. 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 System emergencies, and will dispatch emergency
service crews to respond to such alarms and reports as appropriate.
17. The County and WRC Personnel shall comply with all federal, state, and local permits and
licenses issues and applicable to the operation and maintenance of the System.
18. All Services provided by the County under this Contract will be performed in accordance with all
applicable state and federal laws and regulations, now and in the future; including, without
limitation, the Michigan Safe Drinking Water Act, Public Act 399 of the Public Acts of 1976, as
amended, MCL 325.1001 to 325.1023, as well as all applicable Township ordinances.
19. The County shall establish, provide and implement water system operation and maintenance
related programs, studies, reports, testing, sampling, water system model, inspections and
surveys in accordance with Township, state, and federal mandates which exist now or as adopted
in the future.
20. The County will replace or repair existing components of the System which are identified by the
County or Township to be in need of repair or replacement. Upon completion of such repairs and
replacements, if the System has been altered in any material way the County will provide to the
Township record drawings and update the Geographic Information System (GIS) and any related
database(s) to contain current infrastructure information. 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 System Enterprise Fund. However, on a periodic basis and when needed, the
County will inform the Township of needed repairs and replacements and the estimated costs
regardless of the System Enterprise Fund balance.
21. The County will maintain, and update as necessary the GIS and any related database(s) of the
System. The County will also provide Township hard and digital copies of the mapping, and
updates as requested, in a manner compatible with Township's GIS, and will provide
interconnectivity between the Township and County GIS systems when in place. The County will
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Charter Township of Oakland Water System
Operation & Maintenance
update the GIS and any related database(s) of the System upon being provided record drawings
or other information from the Township identifying corrections and/or modifications of the System
and upon the County performing Services that result in modifications of the System. The
Township is responsible for providing accurate record drawing information.
22. The County will conduct MISS DIG operations, in accordance with Public Act 53 of the Public
Acts of 1974, as amended, (MCLA 460.701 et seq) on behalf of the Township as they pertain to
the operations and maintenance of the System.
23. In the event System repairs or replacement is deemed attributable to outside parties, (i.e.
Contractor damage or customer negligence), consistent with applicable Township ordinances, the
WRC will bill the responsible party at the Township's direction. If any, or the entire bill is deemed
uncollectible, the uncollected amount will be charged directly to the System Enterprise Fund.
24. In the event of a Township approved expansion to the Water System, the County will provide the
same services as set forth in the Water System Operation and Maintenance Agreement and this
Exhibit B, without the need to amend either. All responses to information requests regarding the
water system must be preapproved by the Township and the WRC.
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Resolution #17306 October 26, 2017
The Chairperson referred the resolution to the Finance Committee. There were no objections.