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HomeMy WebLinkAboutResolutions - 1994.03.23 - 24180Miscellaneous Resolution # 94070 March 24 , 1994 BY: PLANNING & BUILDING COMMITTEE CHARLES E. PALMER, CHAIRPERSON IN RE: RESOLUTION TO APPROVE REVISED ESTIMATE OF COST OF WEST BLOOMFIELD WATER SUPPLY SYSTEM SECTION XIII, TO ESTABLISH WEST BLOOMFIELD WATER SUPPLY SYSTEM SECTION XIV AND APPROVE CONTRACT, AND TO AUTHORIZE THE ISSUANCE OF BONDS TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mr. Chairperson, Ladies and Gentlemen: WHEREAS, the County of Oakland (the "County") here- tofore has established the West Bloomfield Water Supply System (the "System") pursuant to the provisions of Act No. 185, Public Acts of Michigan, 1957, as amended, and has acquired and constructed several sections of the System pursuant to contracts between the County and the Charter Township of West Bloomfield (the "Township"); and WHEREAS, the County and the Township have entered into the West Bloomfield Water Supply System XIII Contract dated as of August 1, 1990 (the "Section XIII Contract") relative to the acquisition and construction of the West Bloomfield Water Supply System XIII at an estimated cost of $680,000; and WHEREAS, a revised estimate of the cost of the West Bloomfield Water Supply System Section XIII in the amount of $861,952.00 has been prepared and presented to this Board of Commissioners and has been approved by the Township Board of the Township; and WHEREAS, it is now necessary to improve, enlarge and extend the System by the acquisition and construction of Section XIII and the hereinafter described West Bloomfield Water Supply System Section XIV; and WHEREAS, by the terms of Act 342, Public Acts of Michigan, 1939, as amended ("Act 342"), the County and the Township are authorized to enter into a contract for the acquisition, construction and financing of the West Bloomfield Water Supply System Section XIV consisting of water supply facilities 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 to provide the funds necessary therefor; and • I I .0 ...; • 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 "Section XIV Contract"), which provides for the acquisition, construction and financing of the West Bloomfield Water Supply System Section XIV, and which Con- tract is hereinafter set forth in full; and WHEREAS, there also have been submitted for approval and adoption by this Board of Commissioners, pre- liminary plans, specifications and estimates of the cost and period of usefulness of the West Bloomfield Water Supply System Section XIV. THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMIS- SIONERS OF OAKLAND COUNTY, MICHIGAN, as follows: 1. REVISED ESTIMATE OF COST AND EXTENSION OF TIME TO ISSUE BONDS - SECTION XIII. The revised estimate of the cost of the West Bloomfield Water Supply System Section XIII in the amount of $$61,952.00, as presented to this Board of Commissioners, is approved and adopted. As required by Section 13 of the Section XIII Contract, this Board of Commissioners hereby agrees that the period for issuance of bonds shall be extended to January 1, 1995. 2. ESTABLISHMENT OF SYSTEM AND DESIGNATION OF COUNTY AGENCY - SECTION XIV. This Board of Commissioners by majority vote of its members-elect hereby authorizes and directs that there be established, and there hereby is established, under and pursuant to Act 342, a system of water supply facilities to be known as the "West Bloomfield Water Supply System Section XIV," which shall consist of water supply facilities to serve the Township as specified and to be located as shown in Exhibit A to the Section XIV Contract; that the Oakland County Drain Commissioner is designated and appointed as the "County Agency" for the West Bloomfield Water Supply System Section XIV; that the County Agency shall have all the powers and duties with respect to the West Bloomfield Water Supply System Section XIV as are provided by law and especially by Act 342; and that all obligations incurred by the County Agency with respect to the West Bloomfield Water Supply System Section XIV, unless otherwise authorized by this Board of Commissioners, shall be payable solely from funds derived from the Township in accordance with the Contract. 3. PLANS AND SPECIFICATIONS - ESTIMATES OF PERIOD OF USEFULNESS AND COST - SECTION XIV. The preliminary plans and specifications for the West Bloomfield Water Supply System Section XIV and the estimates of $3,054,562.68 the cost thereof and of 30 years and upwards as the period of usefulness thereof, as submitted to this Board of Commissioners, be and the same are approved and adopted. 4. APPROVAL OF CONTRACT - SECTION XIV. The West Bloomfield Water Supply System Section XIV Contract dated as of March 1, 1994 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, which Contract has been submitted to this Board of Commissioners, be and the same is approved and adopted, and the County Drain Commissioner is 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 Town- ship. The Contract reads as follows: WEST BLOOMFIELD WATER SUPPLY SYSTEM SECTION XIV CONTRACT THIS CONTRACT, made and entered into as of the first day of March, 1994 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 Commissioner, County Agency, party of the first part, and the CHARTER TOWNSHIP OF WEST BLOOMFIELD, a charter township located in the County (hereinafter sometimes referred to as the "Township"), party of the second part. WITNESSET H: WHEREAS, the County has established the West Bloomfield Water Supply System (the "System") pursuant to the provisions of Act No. 185, Public Acts of Michigan, 1957, as amended, and has constructed and acquired several sections of the System pursuant to contracts between the County and the Township; and WHEREAS, it is now necessary to improve, enlarge and extend the System by the acquisition and construction of the hereinafter described water supply facilities; and WHEREAS, pursuant to Act No. 342, Public Acts of Michigan, 1939, as amended (hereinafter sometimes referred to as "Act 342"), the County is authorized, through the Oakland County Drain Commissioner as County Agency, to improve, enlarge and extend the System by the acquisition and construction of the water supply facilities hereinafter described as constituting the West Bloomfield Water Supply System Section XIV, the County and the Township are authorized to enter into a contract, as hereinafter provided, for the acquisition and construction of the water supply facilities 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 member elect of its Board of Commissioners, to pledge its full faith and credit for the payment of the principal of and interest on the bonds; and WHEREAS, there is an urgent need for such water supply facilities to provide the means of supplying water to the residents of the Township, and thus to promote the health and welfare of such residents, which facilities would likewise benefit the County and its residents, and the parties hereto have • concluded that the facilities can be provided and financed most economically and efficiently by the County through the exercise of the powers conferred by Act 342, and especially Sections 5a, 5b and Sc thereof; and WHEREAS, preliminary plans for the water supply facilities and also estimates of the cost and the period of usefulness thereof have been prepared by Hubbell, Roth & Clark, Inc. (hereinafter sometimes referred to as the consulting engineers), and have been submitted to and approved by the Board of Commissioners of the County and the Board of the Township and placed on file in the office of the County Agency, said estimates being set forth in Exhibit B hereunto attached; and WHEREAS, in order to provide for the acquisition and construction of the water supply facilities by the County and the financing of the cost thereof by the issuance of County bonds, and for other related matters it is necessary for the parties hereto to enter into this contract. THEREFORE, IN CONSIDERATION OF THE PREMISES AND THE COVENANTS OF EACH OTHER, THE PARTIES HERETO AGREE AS FOLLOWS: 1. The parties hereto hereby approve and agree to the establishment, acquisition, construction and financing of the West Bloomfield Water Supply System Section XIV (hereinafter sometimes referred to as the "Project") 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 Project 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 Project and any improvements, enlargements and 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 Project shall consist of the water supply facilities shown on Exhibit A which is hereunto attached and which is hereby 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 Project shall be acquired and constructed substantially in accordance with the 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 Project, and which do not require an increase in the total estimated cost -2- of the Project, 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 and if provisions required by paragraph 8 hereof are made for payment or financing of any resulting increase in the total estimated cost. The estimate of cost of the Project and the estimate of the period of usefulness thereof as set forth in Exhibit B is 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 be so financed to defray that part of the total cost of the Project which is in excess of funds available from other sources. The 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 the pledge of the full faith and credit of the County. The 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 construction bids for the Project and, subject to the sale and delivery of bonds, enter into construction contracts with the lowest responsive and responsible bidder or bidders, procure from the contractors all necessary and proper bonds and insurance, cause the Project to be constructed within a reasonable time and do all other things required by this contract and the laws of the State of Michigan and the United States of America. 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 payment. The County hereby agrees that it will secure and maintain, or cause to be secured and maintained, during the period of construction adequate property damage and public liability insurance covering all facilities to be constructed pursuant to this contract. All policies and memorandums of insurance shall provide that the County and the Township shall be insured parties thereunder and shall contain a provision requiring that the Township be notified at least ten days prior to cancellation thereof. One copy of each policy and memorandum of insurance shall be filed with the Township. 5. It is understood and agreed by the parties hereto that the Project 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 -3- for requiring connection to and use of the Project and 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 construct any facilities other than those designated in paragraph 2 hereof. 6. The Township shall pay to the County the total cost of the Project (less such funds as may become available from other sources), which total cost 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 plus such funds as may become available from other sources), all interest payable by the County on the bonds and all paying agent fees and other expenses and charges (including the County Agency's administrative expenses) which are payable on account of the bonds (such fees, expenses and charges being herein called "bond service charges"). 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. An annual installment shall be paid in each year that any principal and/or non-capitalized interest on the bonds falls due during the twelve-month period beginning on the principal maturity date in said year, and the amount of each installment so due and payable shall be at least sufficient to pay all such principal and/or interest thus falling due and all bond service charges then due and payable. The County Agency, within thirty days after delivery of the County bonds to the purchaser, shall furnish the Township Treasurer with a complete schedule of the principal and interest maturities thereon, and the County Agency also, at least thirty days before each payment is due to be made by the Township, shall advise the Township Treasurer of the amount payable to the County on such date. If the Township fails to make any payment to the County when due, the same shall be subject to a penalty of 1% thereof for each month or fraction thereof that such amount remains unpaid after due. Failure of the County Agency to furnish the schedule or give the notice as above required shall not excuse the Township from the obligation to make payment when due. Payments shall be made by the Township when due whether or not the Project has then been completed or placed in operation. In the event that additional County bonds shall be issued under the authority of this contract to defray a part of the cost of the Project, the foregoing obligations shall apply to such part of the cost and to said additional bonds insofar as appropriate thereto. 7. The Township may pay in advance any amount payable to the County pursuant to this contract and in that event shall be credited therefor on future-due amounts as may be agreed by -4- the parties hereto. The Township also may pay in advance any one or more installments or any part thereof (a) by surrendering to the County bonds of like principal amount or (b) by paying to the County in cash the principal amount of any bonds which are subject to redemption prior to maturity, plus all interest thereon to the first date upon which the bonds may be called for redemption and plus all applicable call premiums and bond service charges, and in such event the County Agency shall call said bonds for redemption at the earliest possible date. The installments or parts thereof so prepaid shall be deemed to be the installments or parts thereof falling due in the same calendar year as the maturity dates of the bonds surrendered or called for redemption and bonds so surrendered or redeemed shall be cancelled. 8. In the event that it shall become necessary to increase the estimated cost of the Project as hereinbefore stated, or if the actual cost of the Project shall exceed the estimated cost, whether as the result of variations or changes permitted to be made in the approved plans or otherwise, then (without execution of any further contract or amendment of this contract) the Township Board, by resolution adopted within fifteen days after the receipt of construction bids, may direct that a portion of the Project be deleted sufficient to reduce the total cost to an amount which shall not exceed the total estimated cost as herein-before stated by more than 5%, provided that such deletion shall not materially change the general scope, overall design and purpose of the Project, 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 shall (upon adoption of an authorizing resolution therefor by the Board of Commissioners) 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 Project 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 Project 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 available from other sources) shall be paid or its payment procured by the Township in cash or be defrayed by the issuance of increased or additional 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 -5- 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 Project 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 Project according to the plans as last approved prior to the time when the previous bonds were issued or contracted to be sold. 9. If the actual cost of the Project is less than the total estimated cost, any surplus available to the County from the sale of County bonds, at the option of the Township Board, shall be used to improve, enlarge or extend the System, to apply upon future payments due to the County, to redeem bonds or to purchase bonds on the open market, provided that such surplus shall be used to improve, enlarge or extend the System only if authorized by the Board of Commissioners. Any such surplus, if used to improve, enlarge or extend the System, may be supplemented by cash payments to be made by the Township, or improvements, enlargements or extensions may be financed entirely from such cash payments if authorized by the Township Board. If the surplus is used to redeem or purchase bonds, the bonds shall be cancelled, and the payments thereafter required to be made by the Township to the County shall be reduced so as to reflect the resulting saving of interest and the payment required to be made in the calendar year of the stated maturity of the bonds shall be reduced by the principal amount thereof. 10. Should the Township fail for any reason to pay the County at the times specified the amounts herein required to be paid, the Township hereby authorizes the State Treasurer or other official charged with the disbursement of unrestricted state funds returnable to the Township pursuant to the Michigan constitution to withhold sufficient funds to make up any default or deficiency in the amounts paid. If the full faith and credit of the county is pledged for the prompt payment of the principal of and interest on the bonds to be issued by the County and if the County is required to advance any money by reason of such pledge on account of the delinquency of the Township, the County Treasurer is authorized to 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. The foregoing shall not operate to limit the County's right to pursue any other legal remedies for the reimbursement of moneys advanced on account of the default of the Township. 11. The Township, pursuant to the authorization of Section 5a of Act No. 342, pledges its full faith and credit for the prompt and timely payment of its obligations expressed in -6- this contract and each year shall levy a tax in an amount which, taking into consideration estimated delinquencies in tax collections, will be sufficient to pay its obligations under this contract becoming due before the time of the following year's tax collections: Provided, however, that if at the time of making its annual tax levy, the Township shall have on hand in cash other funds (including but not limited to funds from special assessments, user charges or connection fees) which have been set aside and pledged or are otherwise available for the payment of such contractual obligations falling due prior to the time of the next tax collection, then the annual tax levy may be reduced by such amount: and Provided further, however, that any taxes levied by the Township shall be subject to applicable constitutional, statutory and charter tax rate limitations. The Township Board each year, at least 90 days prior to the final date provided by law for the making of the annual Township tax levy, shall submit to the County Agency a written statement setting forth the amount of its obligations to the County which become due and payable under this contract prior to the time of the next following year's tax collections, the amount of the funds which the Township has or will have on hand or to its credit in the hands of the County which have been set aside and pledged for payment of said obligations to the County and the amount of the Township taxes next proposed to be levied for the purpose of raising money to meet such obligations. The County Agency shall review such statement promptly and, if he finds that the proposed Township 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. 12. No change in the jurisdiction over any territory in the Township shall in any manner impair the obligations of this contract or affect the obligations of the Township hereunder. In the event that all or any part of the territory of the Township is incorporated as a new city or is annexed to or becomes a part of the territory of another municipality, the municipality into which such territory is incorporated or to which such territory is annexed shall assume the proper proportionate share of the contractual obligations (including the pledge of full faith and credit) of the Township, which proper proportionate share shall be fixed and determined by the County Agency and shall be binding upon all parties concerned unless, within sixty (60) days after such incorporation or annexation becomes effective, the governing body of the municipality into which such territory is incorporated or to which such territory is annexed and the Township Board by mutual agreement and with the written approval of the County Agency shall 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 -7- 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, 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, the County Agency may proceed without such recommendation. 13. 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 Project 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 extended by mutual agreement, this contract 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. 14. Upon completion of the Project it shall be used by the Township as part of the System in accordance with the provisions of the West Bloomfield Water Supply System Contract dated December 1, 1970 between the Township and the County. 15. The County shall have no obligation or responsibility for providing water or water supply facilities except as herein expressly provided with respect to the acquisition of the Project or as otherwise provided by contract. The Township shall have the authority and the responsibility to provide such other facilities and shall have the right to expand the facilities of the System by constructing or extending water mains and trunks or related facilities, connecting the same to the System and otherwise improving the System. 16. All powers, duties and functions vested by this contract in the County shall be exercised and performed by the County Agency, for and on behalf of the County, unless otherwise provided by law or in this contract. 17. The parties hereto recognize that the holders from time to time of the bonds to be issued by the County under the provisions of Act 342, and secured by the full faith and credit pledge of the Township to the making of its payments as set forth in this contract, will have contractual rights in this contract, and it is therefore covenanted and agreed that so long as any of the bonds shall remain outstanding and unpaid, the provisions of this contract shall not be subject to any alteration or revision which would affect adversely either the security of the bonds or the prompt payment of principal or interest thereon. The right to make changes in this contract, by amendment, supplemental contracts or otherwise, nevertheless is reserved insofar as the same do not have such adverse effect. The parties hereto further covenant and agree that they each will comply with their respective duties and obligations under the terms of this contract promptly, at the times and in the manner herein set forth, and will not suffer to be done any act which would in any way impair the contract of said bonds, the security therefor, or the prompt payment of principal and interest thereon. It is hereby declared that the terms of this contract and of any amendatory or supplemental contract and any contract entered into pursuant hereto, insofar as they pertain to said bonds or to the payment or the security thereof, shall be deemed to be for the benefit of the holders of the bonds. 18. In the event that any one or more of the provisions of this contract for any reason shall be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions hereof, but this contract shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. 19. This contract shall become effective upon its execution by each party hereto and the expiration of 45 days after the date of publication of the notice required by Section 5b of Act 342: Provided, however, that if, within the 45 -day period, a proper petition is filed with the Township Clerk of the Township in accordance with the provisions of said Section 5b of Act 342 then this contract shall not become effective until approved by the vote of a majority of the electors of the Township qualified to vote and voting thereon at a general or special election. This contract shall terminate forty (40) years from the date hereof or on such earlier date as shall be mutually agreed: Provided, however, that it shall not be terminated at any time prior to the payment in full of the principal of and interest on the County bonds together with all bond service charges pertaining to the 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. -9- 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. CHARTER TOWNSHIP OF WEST BLOOMFIELD COUNTY OF OAKLAND By: Supervisor By: By: Clerk County Drain Commissioner (County Agency) JAE/09007/0264/F09/2 -10- ,N) 14L 4 46 vt,es‘ket; 0 Lii iu 03 3 CITY OF ORCHARD LAKE t VILLAGE Lake ig s SCALE 1' = 1,000' 0 CO I Y11 tai Lake I CASS Ch nibs *se I L 2.4.1 WARM AMR 11 Emma .D. 4r W.M. eL, so_ WEST BLOOMFIELD WATER SUPPLY SYSTEM SECTION XIV mi. ro INCLUDING SHARED TRANSMISSION LINE WITH THE CITY OF ORCHARD LAKE VILLAGE X I- < GEORGE W. KUHN OAKLAND COUNTY DRAM COMMISSIONER ONE PUBUC WORM DAIVE. VATERFORD. ML 41326 doll" = SECTION XIV WATERMAN 1 DQiT 'A 01/26/94 W Construction Cost $20,000.00 $103.40 $50.00 $40.00 $17,000.00 $2,500.00 $2,000.00 $2,500.00 $2,000.00 $5,000.00 $2,000.00 $5.00 $93.00 $1,000.00 $100.00 $3.00 $1,000.00 $40.00 $30,000.00 $20,000.00 $1,744,978.40 $3,300.00 $37,120.00 $102,000.00 $2,500.00 $24,000.00 $32,500.00 $8,000.00 $30,000.00 $54,000.00 $3,000.00 $148,800.00 $30,000.00 $11,200.00 $15,174.00 $1,000.00 $160,000.00 $30,000.00 Is. $553,000.00 $553,000.00 1 1 16876 66 928 6 1 12 13 4 6 27 600 1600 30 112 5058 1 4000 1 a a a a a ea .@ tr. @ tf. @ ea. @ If. @ If. @ ea. @ Tons@ Is. II. If. ea. ea. ea. ea. ea. ea. - Exhibit "B" West Bloomfield Township Water Supply System Section XIV Shared Transmission Line With The City of Orchard Lake Village West Bloomfield Township Costs 1) Contracted Services: Mobilization 30" Water Main 12" Water Main 8" Water Main 30" Butterfly Valves 12" Gate Valve & Well 8" Gate Valve & Well Entrance Manholes Air Release Manholes Blow-Off Manholes Hydrants Polyethylene Encasement of 30" Water Main Steel Pile Caps Pipe Caps Special Excavation Silt Fence Ditch Sediment Trap Bit. Concrete Wearing Cours Traffic Control Connection to DWSD Main, Meter & Pressure Red. Vault Sub-Total West Bloomfield Township Share (70%) Cost Of Water Main in West Bloomfield Township Only (Township Boundary to Western Terminius) 30" Water Main 1085 It @ $103.40 Total of West Bloomfield Township's Share Of Estimated Construction Cost: $3,010,572.40 $2,107,400.68 $112,189.00 $2,219,589.68 2) Contracted Services: Engineering: Consulting Engineering Soil Borings Testing Consultants WEK 02/03/94 Project Development $205,000.00 $21,500.00 $21,500.00 Sub-Total $248,000.00 Page 1 of 2 Project Financing $15,000.00 $5,000.00 $3,500.00 $16,000.00 $2,000.00 $1,700.00 $25,000.00 By: 4/1.#14/d/AC4e;J Exhibit "B" West Bloomfield Township Water Supply System Section XIV Shared Transmission Line With The City of Orchard Lake Village West Bloomfield Township Costs 3) Contracted Services: Bond Counsel Financial Consultant Official Statement Bond Rating Fees Bond Printing Bond Advertisement Bond Discount (1%) Sub-Total $68,200.00 4) County Services: Administration $20,500.00 Engineering $40,500.00 Right-Of-Way $127,000.00 Construction Inspection $112,000.00 Soil Erosion Permit $2,000.00 Sub-Total $302,000.00 5) Contingency $216,773.00 Total Project Cost $3,054,562.68 Less: Credit to West Bloomfield Township from City of Orchard Lake for existing shared Water Mains Funds on hand at County Total Funds Required By West Bloomfield Township I hereby estimate the period of usefullness of these facilities to be forty (40) years and upwards. Hubbell, Roth & Clark, Inc. $317,971.68 $236,591.00 $2.5.0a.=.0 Prepared By: William E. Klockow, P.E. 02/03/94 Page 2 of 2 5. AUTHORIZATION OF BONDS -- PURPOSE. Bonds of the County aggregating the principal sum of Three Million Three Hundred Sixty Thousand Dollars ($3,360,000) shall be issued and sold pursuant to the provisions of Act 342, and other applicable statutory provisions, for the purpose of defraying part of the cost of acquiring and constructing the West Bloomfield Water Supply System Sections XIII and XIV. 6. BOND DETAILS. The bonds shall be designated Oakland County Water Supply Bonds (West Bloomfield System Sections XIII and XIV); shall be dated April 1, 1994; shall be numbered from 1 upwards; shall be fully registered; shall be in the denomination of $5,000 each or any integral multiple thereof not exceeding the aggregate principal amount for each maturity at the option of the purchaser thereof; shall bear interest at a rate or rates not exceeding 8% per annum to be determined upon the sale thereof payable on November 1, 1994, and semiannually thereafter on the first days of May and November in each year; and shall mature on May 1 in each year as follows: 1995 $ 85,000 1996 95,000 1997 100,000 1998 105,000 1999 110,000 2000 120,000 2001 125,000 2002 135,000 2003 145,000 2004 155,000 2005 $165,000 2006 175,000 2007 185,000 2008 195,000 2009 210,000 2010 225,000 2011 240,000 2012 255,000 2013 265,000 2014 270,000 If the original purchaser of the bonds shall designate certain of the bonds as term bond, the maturities set forth above shall become mandatory redemption requirements in accordance with Section 8 and the form of bond set forth in Section 13. 7. PAYMENT OF PRINCIPAL AND INTEREST. The principal of and interest on the bonds shall be payable in lawful money of the United States. Principal shall be payable upon presentation and surrender of the bonds to the bond registrar and paying agent as they severally mature. Interest shall be paid to the registered owner of each bond as shown on the registration books at the close of business on the 15th day of the calendar month preceding the month in which the interest payment is due. Interest shall be paid when due by check or draft drawn upon and mailed by the bond registrar and paying agent to the registered owner at the registered address. -4- 8. MANDATORY PRIOR REDEMPTION. If any of the bonds are designated by the original purchaser as term bonds such bonds shall be subject to mandatory prior redemption at par and accrued interest in accordance with the maturity schedule set forth in Section 6 hereof and upon the terms and conditions set forth in the form of bond contained in Section 13 hereof. The bonds to be redeemed shall be selected by lot. 9. OPTIONAL PRIOR REDEMPTION. Bonds maturing prior to May 1, 2004 not be subject to redemption prior to maturity. Bonds maturing on and after May 1, 2004, be subject to redemption prior to maturity upon the terms and conditions set forth in the form of bond contained in Section 13 hereof. 10. BOND REGISTRAR AND PAYING AGENT. The County Treasurer shall designate, and may enter into an agreement with, a bond registrar and paying agent for the bonds which shall be a bank or trust company located in the State of Michigan which is qualified to act in such capacity under the laws of the United States of America or the State of Michigan. The County Treasurer may from time to time as required designate a similarly qualified successor bond registrar and paying agent. 11. EXECUTION, AUTHENTICATION AND DELIVERY OF BONDS. The bonds shall be executed in the name of the County by the facsimile signatures of the Chairperson of the Board of Commissioners and the County Clerk and authenticated by the manual signature of an authorized representative of the bond registrar and paying agent, and the seal of the County (or a facsimile thereof) shall be impressed or imprinted on the bonds. After the bonds have been executed and authenticated for delivery to the original purchaser thereof, they shall be delivered by the County Treasurer to the purchaser upon receipt of the purchase price. Additional bonds bearing the facsimile signatures of the Chairperson of the Board of Commissioners and the County Clerk and upon which the seal of the County (or a facsimile thereof) is impressed or imprinted may be delivered to the bond registrar and paying agent for authentication and delivery in connection with the exchange or transfer of bonds. The bond registrar and paying agent shall indicate on each bond the date of its authentication. 12. EXCHANGE AND TRANSFER OF BONDS. Any bond, upon surrender thereof to the bond registrar and paying agent with a written instrument of transfer satisfactory to the bond registrar and paying agent duly executed by the registered owner or the registered owner's duly authorized attorney, at the option of the registered owner thereof, may be exchanged for bonds of any other authorized denominations of the same aggregate principal amount and maturity date and bearing the same rate of interest as the surrendered bond. -5- Each bond shall be transferable only upon the books of the County, which shall be kept for that purpose by the bond registrar and paying agent, upon surrender of such bond together with a written instrument of transfer satisfactory to the bond registrar and paying agent duly executed by the registered owner or the registered owner's duly authorized attorney. Upon the exchange or transfer of any bond, the bond registrar and paying agent on behalf of the County shall cancel the surrendered bond and shall authenticate and deliver to the transferee a new bond or bonds of any authorized denomination of the same aggregate principal amount and maturity date and bearing the same rate of interest as the surrendered bond. If, at the time the bond registrar and paying agent authenticates and delivers a new bond pursuant to this section, payment of interest on the bonds is in default, the bond registrar and paying agent shall endorse upon the new bond the following: "Payment of interest on this bond is in default. The last date to which interest has been paid is ." The County and the bond registrar and paying agent may deem and treat the person in whose name any bond shall be registered upon the books of the County as the absolute owner of such bond, whether such bond shall be overdue or not, for the purpose of receiving payment of the principal of and interest on such bond and for all other purposes, and all payments made to the registered owner, or upon the order of the registered owner, in accordance with the provisions of Section 7 of this resolution shall be valid and effectual to satisfy and discharge the liability upon such bond to the extent of the sum or sums so paid, and neither the County nor the bond registrar and paying agent shall be affected by any notice to the contrary. The County agrees to indemnify and save the bond registrar and paying agent harmless from and against any and all loss, cost, charge, expense, judgment or liability incurred by it, acting in good faith and without negligence hereunder, in so treating the registered owner. For every exchange or transfer of bonds, the County or the bond registrar and paying agent may make a charge sufficient to reimburse it for any tax, fee or other governmental charge required to be paid with respect to such exchange or transfer, which sum or sums shall be paid by the person requesting such exchange or transfer as a condition precedent to the exercise of the privilege of making such exchange or transfer. The bond registrar and paying agent shall not be required to transfer or exchange bonds or portions of bonds which have been selected for redemption. 13. FORM OF BONDS. The bonds shall be in substantially the following form: -6- UNITED STATES OF AMERICA STATE OF MICHIGAN COUNTY OF OAKLAND OAKLAND COUNTY WATER SUPPLY BOND (WEST BLOOMFIELD SYSTEM SECTIONS XIII AND XIV) INTEREST RATE MATURITY DATE DATE OF ORIGINAL ISSUE CUSIP April 1, 1994 Registered Owner Principal Amount The County of Oakland, State of Michigan (the "County") acknowledges itself indebted to and for value received hereby promises to pay to the Registered Owner identified above, or registered assigns, the Principal Amount set forth above on the Maturity Date specified above, unless redeemed prior thereto as hereinafter provided, upon presentation and surrender of this bond at in the City of , Michigan, the bond registrar and paying agent, and to pay to the Registered Owner, as shown on the registration books at the close of business on the 15th day of the calendar month preceding the month in which an interest payment is due, by check or draft drawn upon and mailed by the bond registrar and paying agent by first class mail postage prepaid to the Registered Owner at the registered address, interest on such Principal Amount from the Date of Original Issue or such later date through which interest shall have been paid until the County's obligation with respect to the payment of such Principal Amount is discharged at the rate per annum specified above. Interest is payable on the first days of May and November in each year, commencing on November 1, 1994. Principal and interest are payable in lawful money of the United States of America. This bond is one of a series of bonds aggregating the principal sum of Three Million Three Hundred Sixty Thousand Dollars ($3,360,000) issued by the County under and pursuant to and in full conformity with the Constitution and Statutes of Michigan (especially Act No. 342, Public Acts of 1939, as amended) and a bond authorizing resolution adopted by the Board -7- of Commissioners of the County (the "Resolution") for the purpose of defraying part of the cost of acquiring and constructing the West Bloomfield Water Supply System Sections XIII and XIV. The bonds of this series are issued in anticipation of payments to be made by the Charter Township of West Bloomfield in the aggregate principal amount of Three Million Three Hundred Sixty Thousand Dollars ($3,360,000) pursuant to contracts between the County and the Charter Township of West Bloomfield dated as of August 1, 1990 and March 1, 1994. The full Faith and credit of the Charter Township of West Bloomfield have been pledged to the prompt payment of the foregoing amount and the interest thereon as the same become due. As additional security the full faith and credit of the County have been pledged for the prompt payment of the principal of and interest on the bonds of this series. Taxes levied by the Charter Township of West Bloomfield for the payment of its obligations to the County are subject to constitutional tax rate limitations. Taxes levied by the County to pay the principal of and interest on the bonds of this series are subject to constitutional tax limitations. This bond is transferable, as provided in the Reso- lution, only upon the books of the County kept for that purpose by the bond registrar and paying agent, upon the surrender of this bond together with a written instrument of transfer satisfactory to the bond registrar and paying agent duly executed by the Registered Owner or the Registered Owner's attorney duly authorized in writing. Upon the exchange or transfer of this bond a new bond or bonds of any authorized denomination, in the same aggregate principal amount and of the same interest rate and maturity, shall be authenticated and delivered to the transferee in exchange therefor as provided in the Resolution, and upon payment of the charges, if any, therein provided. Bonds so authenticated and delivered shall be in the denomination of $5,000 or any integral multiple thereof not exceeding the aggregate principal amount for each maturity. The bond registrar and paying agent shall not be required to transfer or exchange bonds or portions of bonds which have been selected for redemption. MANDATORY PRIOR REDEMPTION Bonds maturing in the year are subject to mandatory prior redemption at par and accrued interest as follows: Principal Amount of Redemption Date Bonds To Be Redeemed May 1, May 1, Bonds or portions of bonds to be redeemed shall be selected by lot. (REPEAT IF MORE THAN ONE TERM BOND MATURITY) OPTIONAL PRIOR REDEMPTION Bonds maturing prior to May 1, 2004, are not subject to redemption prior to maturity. Bonds maturing on and after May 1, 2004, are subject to redemption prior to maturity at the option of the County, in such order as shall be determined by the County, on any one or more interest payment dates on and after May 1, 2003. Bonds of a denomination greater than $5,000 may be partially redeemed in the amount of $5,000 or any integral multiple thereof. If less than all of the bonds maturing in any year are to be redeemed, the bonds or portions of bonds to be redeemed shall be selected by lot. The redemption price shall be the par value of the bond or portion of the bond called to be redeemed plus interest to the date fixed for redemption and a premium as follows: 1% of the par value if called for redemption on or after May 1, 2003, but prior to May 1, 2004; 0.5% of the par value if called for redemption on or after May 1, 2004, but prior to May 1, 2005; No premium if called for redemption on or after May 1, 2005. NOTICE OF REDEMPTION Not less than thirty days' notice of redemption shall be given to the owners of bonds called to be redeemed by mail to the Registered Owner at the registered address. Bonds or portions of -9- . t bonds called for redemption shall not bear interest after the date fixed for redemption, provided funds are on hand with the bond registrar and paying agent to redeem the same. It is hereby certified, recited and declared that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of the bonds of this series, existed, have happened and have been performed in due time, form and manner as required by law, and that the total indebtedness of said County, including the series of bonds of which this bond is one, does not exceed any constitutional or statutory limitation. IN WITNESS WHEREOF, the County of Oakland, Michigan, by its Board of Commissioners, has caused this bond to be executed in its name by facsimile signatures of the Chairperson of the Board of Commissioners and the County Clerk and its corporate seal (or a facsimile thereof) to be impressed or imprinted hereon. This bond shall not be valid unless the Certificate of Authentication has been manually executed by an authorized representative of the bond registrar and paying agent. COUNTY OF OAKLAND (SEAL) By: By: County Clerk Chairperson Board of Commissioners CERTIFICATE OF AUTHENTICATION This bond is one of the bonds described in the within- mentioned Resolution. Bond Registrar and Paying Agent By: Authorized Representative AUTHENTICATION DATE: ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto (please print or type name, address and taxpayer identification number of transferee) the within bond and all rights thereunder and does hereby irrevocably constitute and appoint attorney to transfer the within bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: Signature Guaranteed The signature must be guaranteed by a commercial bank, a trust company or a brokerage firm which is a member of a major stock exchange. . I' 14. SECURITY. The bonds shall be issued in anticipation of payments to be made by the Charter Township of West Bloomfield pursuant to the Section XIII Contract and the Section XIV Contract. The bonds shall be secured primarily by the full faith and credit pledge made by the Charter Township of West Bloomfield in the contracts pursuant to the authorization contained in Act 342. As additional and secondary security the full faith and credit of the County are pledged for the prompt payment of the principal of and interest on the bonds as the same shall become due. If the Charter Township of West Bloomfield shall fail to make payments to the County which are sufficient to pay the principal of and interest on the bonds as the same shall become due, an amount sufficient to pay the deficiency shall be advanced from the general fund of the County. 15. DEFEASANCE. In the event cash or direct obligations of the United States or obligations the principal of and interest on which are guaranteed by the United States, or a combination thereof, the principal of and interest on which, without reinvestment, come due at times and in amounts sufficient to pay, at maturity or irrevocable call for earlier optional redemption, the principal of, premium, if any, and interest on the bonds, or any portion thereof, shall have been deposited in trust, this Bond Resolution shall be defeased with respect to such bonds and the owners of such bonds shall have no further rights under this Bond Resolution except to receive payment of the principal of, premium, if any, and interest on such bonds from the cash or securities deposited in trust and the interest and gains thereon and to transfer and exchange bonds as provided herein. 16. PRINCIPAL AND INTEREST FUND. There shall be established for the bonds a Principal and Interest Fund which shall be kept in a separate bank account. From the proceeds of the sale of the bonds there shall be set aside in the Principal and Interest Fund any premium and accrued interest received from the purchaser of the bonds at the time of delivery of the same. All payments received from the Charter Township of West Bloomfield pursuant to the contracts are pledged for payment of the principal of and interest on the bonds and expenses incidental thereto and as received shall be placed in the Principal and Interest Fund. 17. CONSTRUCTION FUND. The remainder of the proceeds of the sale of the bonds shall be set aside in the construction funds for Section XIII and Section XIV and used to acquire and construct the West Bloomfield Water Supply System Sections XIII and xIV in accordance with the provisions of the contracts. 18. APPROVAL OF MICHIGAN DEPARTMENT OF TREASURY -- EXCEPTION FROM PRIOR APPROVAL. The issuance and sale of the bonds shall be subject to permission being granted therefor by the Department of Treasury of the State of Michigan or an exception from prior approval being granted by the Department of Treasury and the County Drain Commissioner and the County Treasurer are each hereby severally authorized to file with the Department of Treasury a Notice of Intent to Issue an Obligation with respect to the bonds and to pay, upon the filing of said notice, the filing fee of $400. If an exception from prior approval is not granted the County Drain Commissioner or the County Treasurer shall make application to the Department of Treasury for permission to issue and sell the bonds as provided by the terms of this resolution and for approval of the form of Notice of Sale. 19. REDUCTION OF PRINCIPAL AMOUNT OF BOND ISSUE. If the County Drain Commissioner shall determine that it is not necessary to sell bonds in the principal amount of Three Million Three Hundred Sixty Thousand Dollars ($3,360,000), he may by order reduce the principal amount of bonds to be sold to that amount deemed necessary. In the event the principal amount of the bond issue is reduced pursuant to this section, the County Drain Commissioner shall reduce the amount of bonds maturing in any one or more years as necessary. 20. REPLACEMENT OF BONDS. Upon receipt by the County Treasurer of proof of ownership of an unmatured bond, of satisfactory evidence that the bond has been lost, apparently destroyed or wrongfully taken and of security or indemnity which complies with applicable law and is satisfactory to the Treasurer, the Treasurer may authorize the bond registrar and paying agent to deliver a new executed bond to replace the bond lost, apparently destroyed or wrongfully taken in compliance with applicable law. In the event an outstanding matured bond is lost, apparently destroyed or wrongfully taken, the Treasurer may authorize the bond registrar and paying agent to pay the bond without presentation upon the receipt of the same documentation required for the delivery of a replacement bond. The bond registrar and paying agent, for each new bond delivered or paid without presentation as provided above, shall require the payment of expenses, including counsel fees, which may be incurred by the bond registrar and paying agent and the County in the premises. Any bond delivered pursuant the provisions of this Section 15 in lieu of any bond lost, apparently destroyed or wrongfully taken shall be of the same form and tenor and be secured in the same manner as the bond in substitution for which such bond was delivered. Mr. Chairperson, on behalf of the Planning and Building Committee, I move the adoption gl'17-fiejoregoing xeso4tion. gvIr 1.1m LAJLImyu±11 'Pr Ade/ _Audi illeafrir; ING D BUI37-NG COMMITTEE 21. SALE, ISSUANCE, DELIVERY, TRANSFER AND EXCHANGE OF BONDS. The County Drain Commissioner is authorized to prescribe the form of notice of sale for the bonds, to sell the bonds at not less than 99% of par plus accrued interest in accordance with the laws of this state and to do all things necessary to effectuate the sale, issuance, delivery, transfer and exchange of the bonds in accordance with the provisions of this resolution. The County Drain Commissioner is authorized to cause the preparation of an official statement for the bonds for purposes of compliance with Rule 15c2-12 issued under the Securities Exchange Act of 1934, as amended (the "Rule") and to do all other things necessary to comply with the Rule. After the award of the bonds, the County will provide copies of a "final official statement" (as defined in paragraph (e)(3) of the Rule) on a timely basis and in reasonable quantity as requested by the successful bidder or bidders to enable such bidder or bidders to comply with paragraph (b)(4) of the Rule and the rules of the Municipal Securities Rulemaking Board. 22. TAX COVENANT. The County covenants to comply with all requirements of the Internal Revenue Code of 1986, as amended, necessary to assure that the interest on the bonds will be and will remain excludable from gross income for federal income tax purposes. The County Drain Commissioner and other appropriate County officials are authorized to do all things necessary (including the making of covenants of the County) to assure that the interest on the bonds will be and will remain excludable from gross income for federal income tax purposes. 23. CONFLICTING RESOLUTIONS. All resolutions and parts of resolutions insofar as they may be in conflict herewith are rescinded. JAE/09007/0264/FS8/2 -14- • 1 • 1 • .March 24, 1994 FISCAL NOTE (Misc. #94070) BY: FINANCE COMMITTEE, JOHN P. MCCULLOCH, CHAIRPERSON IN RE: DRAIN COMMISSIONER - RESOLUTION TO APPROVE REVISED ESTIMATE OF COST OF WEST BLOOMFIELD WATER SUPPLY SYSTEM SECTION XIII, TO ESTABLISH WEST BLOOMFIELD WATER SUPPLY SYSTEM SECTION XIV AND APPROVE CONTRACT, AND TO AUTHORIZE THE ISSUANCE OF BONDS, MISCELLANEOUS RESOLUTION #94 To The Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: Pursuant to Rule XI-G of this Board, the Finance Committee has reviewed Miscellaneous Resolution #94070 and finds: 1) The resolution authorizes the issuance of drain bonds with the County pledging full faith and credit with the Charter Township of West Bloomfield as the primary obligor. 2) Revised estimated cost of the West Bloomfield Water Supply System Section XIII is $861,952. 3) The estimated cost of the West Bloomfield Water Supply System Section XIV is $3,054,563. 4) The principal amount of the bond issue is $3,360,000 to be paid back within 20 years at an interest rate to be determined by bid, but not exceeding 8% per annum. 5) The statutory limit for County debt is $3,008,744,830 (10% of the 1993 State Equalized Value). As of February 28, 1994, the outstanding debt is $319,229,031 or approximately 1.1% of the S.E.V. 6) County funds are not required for this project. FINANCE COMMITTEE 606, STEV\DRAIN\WBLOOMFI.FN . r V Resolution #94070 March 24, 1994 Moved by Palmer supported by Law the resolution be adopted. AYES: Taub, Wolf, Aaron, Crake, Dingeldey, Douglas, Garfield, Gosling, Huntoon, Jensen, Johnson, Kaczmar, Kingzett, Law, McPherson, Miltner, Oaks, Obrecht, Palmer, Pernick, Powers, Schmid. (22) NAYS: None. (0) A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Lynn D. 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 March 24, 1994 with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and County of Oakland at Pontiac, Michigan this 24th day o 1X-11 Niced the seal re Lyng(D. Allen, County Clerk • W