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HomeMy WebLinkAboutResolutions - 1997.04.10 - 24936Miscellaneous Resolution g 97063 April 10 , 1997 BY: PLANNING & BUILDING COMMITTEE CHARLES E. PALMER, CHAIRPERSON IN RE: DRAIN COMMISSIONER RESOLUTION TO AUTHORIZE VILLAGE OF MILFORD WATER SUPPLY SYSTEM CONTRACT AND ADVANCEMENT OF FUNDS TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mr. Chairperson, Ladies and Gentlemen: WHEREAS, the Village of Milford (the "Village") is in urgent need of the water supply facilities described in the form of the proposed contract hereinafter mentioned (sometimes referred to herein as the "Project") in order to promote the health and welfare of the residents thereof, which water supply facilities also would benefit the County and its residents, and the parties to the proposed contract have concluded that such facilities can be provided and financed most economically and efficiently by the County through the exercise of the powers conferred by Act 342, Public Acts of Michigan, 1939, as amended ("Act 342"), and especially Sections 5a, 5b and 5c thereof; and WHEREAS, by the terms of Act 342, the County and the Village are authorized to enter into a contract for the acquisition, construction and financing of the Project to serve the Village and for the payment of the cost thereof by the Village, with interest, and the County is then authorized to issue its bonds in one or more series to provide the funds necessary therefor; and WHEREAS, there has been submitted to this Board of Commissioners a proposed contract between the County, by and through the County Drain Commissioner, County Agency, and the Village (the "Contract"), which Contract provides for the acquisition, construction and financing of the Project and is hereinafter set forth in full; and WHEREAS, there have also been submitted for approval and adoption by this Board of Commissioners, preliminary plans, specifications and estimates of the cost and period of usefulness of the Project; and WHEREAS, this Board of Commissioners desires to proceed with the acquisition, construction and financing of the Project and the approval and execution of the Contract. THEREFORE, BE IT RESOLVED by the Board of Commissioners of Oakland County, Michigan, as follows: I. ESTABLISHMENT OF SYSTEM AND DESIGNATION OF COI TNTY AGENCY. This Board of Commissioners by majority vote of its members-elect hereby approves, under and pursuant to Act 342, the establishment of the Village of Milford Water Supply System (the "System"), which shall consist of those water supply facilities to serve the Village specified and to be located as shown in Exhibit A to the Contract and hereby designates and appoints the Oakland County Drain Commissioner as the "County Agency" for the System. 4 The County Agency shall have all the powers and duties with respect to the System as are provided lgy law and especially by Act 342 provided, however, that all obligations incurred by the County Agency with respect to the System, unless otherwise authorized by this Board of Commissioners, shall be payable solely from funds derived from the Village as hereinafter provided. 2. PLANS AND SPECIFICATIONS ESTIMATFR CW PPR TC)T1 flP USEFULNESS AND COST. The preliminary plans and specifications for the Project and the estimates of $1,300,000 as the cost thereof and of 40 years and upwards as the period of usefulness thereof, as submitted to this Board of Commissioners, are hereby approved and adopted. 3. EXCEPTION FROM PRIOR TREASURY APPROVAT The County Drain Commissioner and the County Treasurer are each hereby severally authorized to file with the Michigan Department of Treasury a Notice of Intent to Issue an Obligation with respect to each series of bonds to be issued to defray the cost of the Project in the aggregate principal amount not to exceed $1,300,000 and to pay, upon the filing of each notice, the filing fee of $100 for each series of bonds to be issued in principal amount less than $500,000 and $400 for each series of bonds to be issued in principal amount of £500,000 or more. 4. APPROVAL OF CONTRACT. The Village of Milford Water Supply System Contract between the County, by and through the County Drain Commissioner, County Agency, and the Village, which Contract has been submitted to this Board of Commissioners, is hereby approved and adopted, and the County Drain Commissioner is hereby authorized and directed to execute and deliver the same for and on behalf of the County, in as many counterparts as may be deemed advisable, after the Contract has been executed by the appropriate officials of the Village. The Contract reads as follows: 2 VILLAGE OF MILFORD WATER SUPPI Y ,SYSTEM CONTRACT THIS CONTRACT, made and entered into as of the day of 1997, by and between the COUNTY OF OAKLAND, a county corporation in the State of Michigan (hereinafter sometimes referred to as the "County"), by and through its Drain Commissioner, County Agency, and the VILLAGE OF MILFORD, a home rule village located in the County (hereinafter sometimes referred to as the "Municipality"). WITNESSETH: WHEREAS, pursuant to Act No. 342, Public Acts of Michigan, 1939, as amended (hereinafter sometimes referred to as "Act 342"), the Board of Commissioners of the County, by majority vote of its members-elect, has authorized and directed that there be established a county system of water supply improvements and services to serve the Municipality, said system to be known as the "Village of Milford Water Supply System" (hereinafter sometimes referred to as the "System"), and has designated the Oakland County Drain Commissioner as the county agency for the System with all powers and duties with respect thereto as are provided by Act 342 (said Drain Commissioner being hereinafter sometimes referred to as the "County Agency"); and WHEREAS, under and subject to the terms of Act 342, the County is authorized, through the County Agency, to acquire and construct the water supply facilities hereinafter described as constituting the System (the "Project"), the County and the Municipality are authorized to enter into a contract, as hereinafter provided, for the acquisition and construction of the Project 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 Municipality to pay such cost with interest to the County in installments extending over a period not exceeding forty (40) years, and the County is authorized to issue such bonds and, if authorized by majority vote of the members-elect of its Board of Commissioners, to pledge its full faith and credit for the payment of such bonds and the interest thereon; and WHEREAS, there is an urgent need of such water supply facilities to provide water supply services to the Municipality in order to promote the health and welfare of the residents thereof, which facilities would likewise benefit the County and its residents, and the parties hereto have concluded that such facilities can be provided 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 5c thereof; and WHEREAS, the consulting engineers have prepared preliminary plans for the Project and estimates of the cost and period of usefulness thereof, all of which have been submitted to and approved by the Board of Commissioners of the County and the governing body of the Municipality and placed on file with the Board of Commissioners in the office of the County Agency, the estimates being set forth on Exhibit B hereunto attached; and WHEREAS, it is proposed that the cost of the Project be financed by the issuance of bonds by the County; and WHEREAS, in order to provide for the acquisition and construction of the Project and the financing of the cost thereof by the issuance of 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 approve and agree to the acquisition, construction and financing of the Project as part of the System, as herein provided, under and pursuant to Act 342. The Municipality by way of compliance with Section 29, Article VII, Michigan Constitution of 1963, consents and agrees to the establishment and location of the System within its corporate boundaries and to the use by the County of its streets, highways, alleys, lands, rights-of-way or other public places for the purpose and facilities of the System and any improvements, enlargements or extensions thereof, and the Municipality further agrees that, in order to evidence -2- 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 as described and specified on Exhibit A, which is hereunto attached and is made a part hereof, and as are more particularly set forth in the preliminary plans that 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 that do not materially change the location, capacity or overall design of the Project, and that do not require an increase in the 'total estimated cost 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 governing body of the Municipality and if provisions required by Paragraph 5 hereof are made for payment or financing of any resulting increase in the total estimated cost. The estimate of the cost of the Project and the estimate of the period of usefulness thereof as set forth on Exhibit B are approved and adopted. 3. The County Agency shall take or cause to be taken all actions required or necessary, in accordance with Act 342, to procure the issuance and sale of bonds (the "Bonds") by the County, in one or more series, in whatever aggregate principal amount is necessary to finance the cost of the Project. The Bonds shall be issued in anticipation of, and be payable primarily from, the payments to be made by the Municipality to the County as provided in this contract, and shall be secured secondarily, if so voted by the Board of Commissioners of the County, by a pledge of the full faith and credit of the County, and the 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 the Bonds, enter into construction contracts with the lowest -3- responsible bidder or bidders, procure from the contractors all necessary and proper bonds, 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. All certificates for required payments to contractors shall be approved by the consulting engineers before presentation to the County Agency and the latter shall be entitled to rely on such approval in making payments. 5. In the event that it shall 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 Municipality, by resolution of its governing body adopted within fifteen days after the receipt of construction bids, may direct that a portion of the Project not yet acquired or consiructed and not under contract to be acquired or constructed be deleted sufficient to reduce the total cost to an amount that shall not exceed the total estimated cost as hereinbefore 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 resolution the Municipality shall pay or procure the payment of the increase or excess in cash, or Bonds in an increased or additional amount (upon adoption of an authorizing resolution therefor by the Board of Commissioners) shall be issued to defray such increased or excess cost, to the extent that funds therefor are not available from other sources; provided, however, that no such increase or excess shall be approved and no such increased or additional 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 governing body of the Municipality 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 Municipality in cash or be defrayed by the issuance of increased or additional Bonds in anticipation of increased or additional payments agreed to be made by the Municipality to the County in the manner hereinbefore provided; provided further, however, that the adoption of -4- such resolution by the governing body of the Municipality shall not be required prior to or as a condition precedent to the issuance of additional Bonds, 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. 6. The Municipality shall pay to the County the entire cost of the Project. The cost to be paid by the Municipality shall include, in addition to the items of the nature set forth in Exhibit B (represented by the principal amount of the Bonds), 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) that are payable on account of the Bonds (such fees, expenses and charges being herein called "bond service charges"). Such payments shall be made to the County in semiannual installments, which shall be due and payable at least thirty days prior to each interest payment date specified in the Bonds. The semiannual installments shall commence on the date that interest (other than capitalized interest) or principal first becomes payable on the Bonds, and the aggregate amount of the installments shall be at least sufficient to pay, when due, all principal and interest on the Bonds and all bond service charges payable on account of the Bonds. The County Agency, within thirty days after delivery of the Bonds to the purchaser, shall furnish the treasurer of the Municipality with a complete schedule of the principal of and interest on the Bonds, and the County Agency also, at least thirty days before each payment is due, shall advise the treasurer of the Municipality of the amount payable to the County on such date. If the Municipality 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 Municipality from the obligation to make payments when due. The foregoing obligation shall apply to all County Bonds issued by the County to defray the cost of the Project. Payments shall be made by the Municipality when due whether or not the Project has then been completed or placed in operation. 7. If the Municipality shall pay the cost of the Project or any portion thereof prior to the issuance of the Bonds, the obligations of the Municipality shall be adjusted accordingly. The Municipality may pay in advance of maturity all or any part of an installment due the County on the Bonds by surrendering to the County Bonds issued hereunder of a like principal amount maturing in the same calendar year or by paying to the County in cash the principal amount of any Bonds that are subject to redemption prior to maturity, plus all interest thereon to the first date upon which such 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 the 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. 8. The proceeds of sale of the Bonds shall be used solely and only to pay the cost of the Project, and after completion thereof and payment of all costs in connection therewith, any surplus remaining from the sale of the Bonds shall be (i) used to purchase the Bonds on the open market or (ii) retained by the County Agency as a reserve for payment of the principal and interest maturities next falling due, and in such event the contract obligations of the Municipality in respect to such Bonds or such maturities shall be reduced by the principal amount of Bonds so purchased or of said reserve, said reduction in case of the purchase of Bonds to be applied as to year in accordance with the year of the maturity of the Bonds so purchased. Any Bonds so , purchased shall be cancelled. In the alternative, such surplus may be used, on request of the Municipality and approval by the Board of Commissioners of the County, to extend, enlarge or improve the System or to acquire and construct additional water supply facilities to serve the Municipality. 9. The Municipality, pursuant to the authorization of Section 5a of Act 342, hereby pledges its full faith and credit for the prompt and timely payment of its obligations expressed in this contract and, subject to applicable constitutional, statutory and charter tax limitations, each year shall levy a tax on the taxable property in Municipality, in an amount that, taking into consideration estimated delinquencies in tax collections, will be sufficient to pay its obligations -6- 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 Municipality shall have on hand in cash other funds that 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. The governing body of the Municipality each year, at least 90 days prior to the final date provided by law or charter for the making of the annual tax levy, shall submit to the County Agency a written statement setting forth the amount of its obligations to the County that become due and payable under this contract prior to the time of the next following year's tax collections, the amount of the funds that the Municipality has or will have on hand or to its credit in the hands of the County that have been set aside and pledged for payment of said obligations to the County and the amount of the taxes next proposed to be levied for the purpose of raising money to meet such obrigations. The County Agency promptly shall review such statement, and if he finds that the proposed tax levy is insufficient, he shall so notify the governing body. The Municipality hereby covenants and agrees that it will thereupon increase its levy to such extent as may be required by the County Agency. 10. In the event that the Municipality shall fail for any reason to pay to the County Agency at the times herein specified, the amounts herein required to be paid, the state treasurer or other official charged with the disbursement of unrestricted state funds returnable to the defaulting Municipality pursuant to the Michigan constitution is authorized hereby to withhold sufficient funds to make up any default or deficiency in funds. In the event the County is required to advance any money by reason of its pledge of full faith and credit on the Bonds on account of the delinquency of the Municipality, the County Treasurer shall notify the state treasurer to deduct the amount of money so advanced by the County from any unrestricted moneys in the state treasurer's possession belonging to the defaulting Municipality and to pay such amount to the County. In addition to the foregoing, the County shall have all other rights and remedies provided by law to enforce the obligations of the Municipality to make payments in the manner and at the times required by this contract. It is specifically recognized by the Municipality that the payments required to be made by it pursuant to the terms of this contract -7- are to be pledged for the payment of the principal of and interest on the Bonds, and the Municipality covenants and agrees that it will make its required payments to the County promptly and at the times herein specified, without regard as to whether the Project herein contemplated is actually completed or placed in operation; provided, only, that nothing herein contained shall limit the obligation of the County to perform in accordance with the covenants contained herein. 11. No change in the jurisdiction over any territory in the Municipality shall impair in any manner the obligations of this contract or affect the obligations of the Municipality hereunder. In the event that all or any part of the territory of the Municipality is incorporated as a new city or village 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 Municipality, 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 municipality into which such territory is incorporated or to which such territory is annexed and the Municipality shall by mutual agreement and with the written approval of the County Agency fix and determine such proper proportionate share. The County Agency, prior to making such determination, shall receive a written recommendation as to the proper proportionate share from a committee composed of one representative designated by the governing body of the Municipality, one designated by the governing body of the new municipality or the municipality annexing such territory and one independent registered engineer appointed by the County Agency. Each governmental unit shall appoint its representative within fifteen (15) days after being notified to do so by the County Agency and within a like time the County Agency shall appoint the engineer third member. If any such representative (other than the appointee of the County Agency) is not appointed within the time above provided, then the County Agency may proceed without said recommendation. If the committee shall not make the recommendation within forty-five (45) days after its appointment or within any extension thereof by the County Agency, then the County Agency may proceed without such recommendation. -8- 12. The County may advance funds, if approved by resolution adopted by a 2/3 vote of the members-elect of its Board of Commissioners (as required by Section 8 of Act 342) for administrative expenses, including engineering, legal and consulting expenses, incurred by the County Agency in the performance of its duties and powers authorized by Act 342 and for purposes of obtaining maps, plans, designs, specifications, cost estimates, rights-of-way and permits for the Project. In such event, and to avoid paying interest on the advance, the Municipality, not later than two years after the date of adoption of the resolution of the County Board of Commissioners approving such advance, shall reimburse the County for the amount of any such advance; provided, however, that (i) the County Board of Commissioners may extend the due date of such reimbursement by resolution adopted by a 2/3 vote of its members-elect and (ii) the obligation of the Municipality shall be reduced to the extent that Bonds are issued and the proceeds thereof are used to reimburse the County for such advances. The obligation of the Municipality to pay the amounts set forth in this paragraph is a full faith and credit obligation as described in Paragraph 9 hereof. The County shall have all rights and remedies provided by this contract and Act 342 and otherwise pursuant to law to enforce the obligation of the Municipality described in this paragraph. In the event that no Bonds are issued within three years of the date of this contract, unless the three-year period is extended by mutual agreement of the parties hereto, the Project shall be abandoned and the Municipality shall pay, or reimburse the County for the payment of all engineering, legal, consulting and other costs and expenses theretofore incurred, including any interest due the County for any advance of funds, and shall be entitled to all plans, specifications and other engineering data and materials relating to the Project. 13. In the event that the Municipality fails to reimburse the County for an advance made pursuant to Paragraph 12 hereof when due, the Municipality shall pay to the County interest on such unreimbursed amount from the date of adoption of the resolution of the County Board of Commissioners approving such advance to the date of repayment at the interest rate prevailing on six-month United States Treasury Bills on the date of adoption of the resolution of the County Board of Commissioners approving the advance, to be compounded quarterly. 14. The parties hereto agree that the costs and expenses of any lawsuits arising directly or indirectly out of this contract or the construction or financing of the Project, including the amount of any judgment against the County or the County Agency, to the extent that such costs and expenses are chargeable against the County or the County Agency, shall be deemed to constitute a part of the cost of the Project and shall be paid by the Municipality in the same manner as herein provided with respect to other costs of the Project. In the event of such litigation, the County Agency shall consult with the Municipality and shall retain legal counsel agreeable to the County Agency and the Municipality to represent the County; provided that if the County Agency and the Municipality cannot agree as to such representation within a reasonable time, the County Agency shall exercise its discretion as to the retention of such counsel. The County Agency and the Municipality expressly agree that the County and the County Agency shall not be liable and the Municipality shall pay, indemnify and save the County and the County Agency harmless of, from and against all liability of any nature whatever regardless of the nature in which such liability may arise, for any and all claims, actions, demands, expenses, damages and losses of every conceivable kind whatsoever (including, but not limited to, liability for injuries to or death of persons and damages to or loss of property) asserted by or on behalf of any person, firm, corporation or governmental authority arising out of, resulting from, or in any way connected with the ownership, acquisition, construction, operation, maintenance and repair of the Project, this contract, or the issuance, sale and delivery of the Bonds. It is the intent of the , County and the Municipality that the County and the County Agency be held harmless by the Municipality from liability for such claims, actions, demands, expenses, damages and losses, however caused or however arising, including, but not limited to, to the extent not prohibited by law, such claims, actions, demands, expenses, damages and losses even though caused, occasioned or contributed by the negligence, sole or concurrent, of the County or the County Agency or by negligence for which the County or the County Agency may be held liable. In any action or proceeding brought about by reason of any such claim, action or demand, the Municipality will also pay, indemnify and save the County and the County Agency harmless of, from and against all costs, reasonable attorneys' fees and disbursements of any kind or nature incidental to or incurred in the defense of the claim, action or demand and will likewise pay all -10- sums required to be paid by reason of such claim, action or demand in the event it is determined that there is any liability on the part of the County or the County Agency. Upon the entry of any final judgment or a final award by an arbitration panel against the County or the County Agency on any claim, action, demand, expense, damage or loss contemplated by this paragraph and notwithstanding that the County or the County Agency has not paid the same, the Municipality shall be obligated to pay to the County or the County Agency, as the case may be, upon written demand therefor, the amount thereof not more than sixty (60) days after such demand is made. Notwithstanding the foregoing, nothing contained in this paragraph shall be construed to indemnify or release the County or the County Agency against or from any liability which it would otherwise have arising from the wrongful or negligent actions or failure to act on the part of the County's or the County Agency's employees, agents or representatives with respect to matters not related to the ownership, acquisition, construction, operation, maintenance or repair of the Project, this contract or the issuance, sale or delivery of the Bonds. 15. After completion of the Project the operation and maintenance of the System shall be in accordance with applicable agreements between the County and the Municipality. 16. It is understood and agreed by the parties hereto that the System is to serve the Municipality and not the individual property owners and users thereof, unless by special arrangement between the County Agency and the Municipality. The responsibility of requiring , connection to and use of the System and/or providing such additional facilities as may be needed shall be that of the Municipality, 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. 17. The County shall have no obligation or responsibility for providing facilities except as herein expressly provided with respect to the acquisition and construction of the Project or as otherwise provided by contract. The Municipality 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 lines or related facilities, connecting the same to the System, and otherwise improving the System. 18. 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. 19. 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 Municipality to the payment of the principal of and interest 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 that would affect adversely either the security of the Bonds or the prompt payment of the principal or interest. The right to make changes in this contract, by amendment, supplemental contract or otherwise, is nevertheless reserved insofar as the same do not have such adverse affect. 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 that would impair in any way the contract of the Bonds, the security therefor or the prompt payment of the principal and interest. It is declared hereby 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 the Bonds or to the payment or the security thereof, shall be deemed to be for the benefit of the holders of the Bonds. 20. 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. 21. This contract shall become effective upon its execution by the County Agency on the date set forth in the first paragraph hereof (which execution shall not occur prior to the execution by the Municipality) 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 clerk of the Municipality in accordance with the provisions of Section 5b of act 342, this contract shall not become effective until after its approval by the vote of a majority of the electors of the Municipality 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 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 bihding upon the successors and assigns of the parties hereto. Nothing herein contained, however, shall require the County to acquire and construct the Project if it is unable to sell Bonds to finance the same. This contract may be executed in any number of counterparts. 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. COUNTY OF OAKLAND Executed on , 1997 By: County Drain Commissioner (County Agency) VILLAGE OF MILFORD By: President Executed on - , 1997 And: • Clerk W Ihe100435100091CON RE SYSTEM doc -13- ALDIN CT , LIBERTY LIBRTY I WELL SITE < I L I ,BERITY CANAL L TLA TIC L-1 z MILL < POND. LJ ' BENSON i • I TRACEY ABBEY L. GEORGE DUTCH ESS L JKNIGHT SUMMIT PANORAM A 1 = 1000' 3 m A - NALLAGE LIMITS 01 HILL CREST \C.) e':—TBR'• \?,\13,-v L.-OAK ,/rEvy \srb \\4• (5- \jT PROP. WATERMAIN ROIT MiLL, POND 5 WASHINGTON LAFAY- -J 0 EXHIBIT A VILLAGE OF MILFORD WATER SUPPLY SYSTEM 16 9 15 0 \71.C. uJ cc CD '1 ILFORD PROP. WATERMAIN w ETT E SECOND '_IDDELL ROAD DESIGNED BY: DRAWN BY: KW GEORGE W. KUHN OAKAND COUNTY DRAIN COMMISSIONER ONE PUBLIC WORKS DRIVE, WATERFORD, MICHIGAN 48328-1907 DATE: 2-3-97 SHEET NO. 1 OF 1 Village of Milford Water Supply System Improvements Estimate of Project,Costs 1) Contracted Se'rvices: 12" DI Water Main 3,950 LF $95 $375,250 12" Water Main Tunnel 250 LF $260 $65,000 12" Tree Tunnel 400 LF $160 $64,000 12" TSV&W 2 EA $125 $250 12" GV&W 8 EA $3,000 $24,000 8" DI Water Main 1,650 LF $85 $140,250 8" GV&W 6 EA $2,400 $14,400 6" DI Water Main 250 LF $75 $18,750 6" GV&W 6 EA $2,200 $13,200 47SV&W 2 EA $3,000 $6,000 Hydrant Valve & Box 8 EA $3,300 $26,400 Relocate Power Pole 13 EA $4,500 $58,500 Traffic Control 3 EA $10,000 $30,000 Cleanup & Restoration 7,700 SY $4.50 $34,650 $870,650 2) Contracted Services: Engineering: Design $70,000 Construction Layout $20,000 Construction Engineering $10,000 Special Services $20,000 Soil Borings $10,000 Sub-Total $130,000 3) Contracted Services: Project Financing Bond Counsel $12,000 Financial Consultant $7,000 Official Statement $4,500 Bond Rating Fees $10,000 Bond Printing & Publishing $2,500 Local Attorney $5,000 Bond Advertisement $1,000 Bond Discount (1.5%) $19,500 Sub-Total $61,500 4) County Services: Administration Engineering Inspection Right of Way and Legal Soil Erosion Permit 5) Contingency $8,000 $26,000 $40,000 $30,000 $3,850 Sub-Total Total Estimated Project Costs I hereby certify the period of usefulness of this facility to be forty (40) years and upwards. $107,850 $130,000 $.1.3012,QPQ Prepared By: William E. Klockow, PE Exhibit B MILFORD.VVK4 5. • APPROVAL OF ADVANCEMENT OF FUNDS. This Board of Commissioners by 2/3 vote of its members-elect hereby approves the advancement of not to exceed $30,000.00 for the purposes set forth in paragraph 12 of the Contract. Amounts advanced shall be reimbursed to the County by the Village pursuant to the provisions of paragraphs 12 and 13 of the Contract. 6. CONFLICTING RESOLUTIONS. All resolutions and parts of resolutions insofar as they may be in conflict herewith are rescinded. Mr. Chairperson, on behalf of the Planning and Building Committee, I move adoption of the foregoing resolution. PLA 1 ING AND B r- DING COMMITTEE W:Vae10943510009\RES Auth Contract.doc 3 FISCAL NOTE (m i sc. #97063) BY: FINANCE AND PERSONNEL COMMITTEE, SUE ANN DOUGLAS, CHAIRPERSON IN RE: DRAIN COMMISSIONER RESOLUTION TO AUTHORIZE VILLAGE OF MILFORD WATER SUPPLY SYSTEM CONTRACT AND ADVANCEMENT OF FUNDS TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: Pursuant to Rule XII-F of this Board, the Finance and Personnel Committee has reviewed the above referenced resolution and finds: 1. The resolution authorizes an advance of an amount not to exceed $30,000 to the Village of Milford which if repaid within two years will incur no interest. It is the intent of the Village of Milford to issue bonds to repay the advance and to finance the project. 2. In accordance with MR #92228, the interest rate is to be established at the prevailing six month Treasury Bill rate (current rate is 5.03%). 3. Funding is available in the Drain Revolving Fund. The resolution expressly states that upon repayment to the revolving fund the funds become available for future projects. 4. An amendment to the 1997 budget is not required. FINANCE AND PERSONNEL COMMITTEE Resolution #97063 April 10, 1997 Moved by Palmer supported by Powers the resolution be adopted. Moved by Douglas supported by Amos the Fiscal Note be amended under 2. to show the current interest rate as 5.33. A sufficient majority having voted therefor, the amendment carried. Vote on resolution, as amended: AYES: Holbert, Huntoon, Jacobs, Jensen, Johnson, Kaczmar, Kingzett, Law, McCulloch, McPherson, Millard, Moffitt, Obrecht, Palmer, Powers, Schmid, Taub, Wolf, Amos, Coleman, Devine, Dingeldey, Douglas, Garfield. (24) NAYS: None. (0) A sufficient majority having voted therefor, the resolution, as amended, was adopted. I HERE :y ,i6; -Ae wet VE THE FOREGOING RES 62s.. L. Brooks Patterson, County Executive 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 April 10, 1997 with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 10th day of April 1997. tynn'D. Allen, County Clerk Date