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Home My WebLink AboutResolutions - 2002.08.22 - 26719I • MISCELLANEOUS RESOLUTION #02 198 BY: Finance Committee, Sue Ann Douglas, Chairperson IN RE: DEPARTMENT OF FACILITIES MANAGEMENT - 52-3 DISTRICT COURT/SHERIFF'S SUBSTATION PROJECT - SHERIFF'S SUBSTATION SUBLEASE AGREEMENT WITH CITY OF ROCHESTER HILLS To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS the Oakland County Board of Commissioners by Miscellaneous Resolution #01182 authorized the extension of its superior credit rating, AAA bond rating, to local units of government throughout Oakland County; and WHEREAS the Oakland County Board of Commissioners by Miscellaneous Resolution #01165 approved the sale of bonds to finance the 52-3 District Court and Sheriff's Substation project in an amount not to exceed $23,300,000; and WHEREAS $18,100,000 in bonds were sold for the 52-3 District Court and $5,200,000 in bonds were sold for the Sheriff's Substation, for a total of $23,300,000; and WHEREAS the City of Rochester Hills, Michigan, has agreed to the addition of the Sheriff's Substation to the project; and WHEREAS the repayment of bonds for the Sheriff's Substation will be the responsibility of the City of Rochester Hills along with annual maintenance and operational expenses; and WHEREAS Miscellaneous Resolution #01308 authorized the awarding of a contract for architectural/engineering services for the 52-3 District Court Project to French Associates, Inc., of Rochester, Michigan with the recognition that the architectural/engineering fees to French Associates, Inc. would be increased by approximately $275,200 if the Sheriff's Substation were added to the project; and WHEREAS Miscellaneous Resolution #01308 authorized the awarding of a contract for construction management services for the 52-3 District Court Project to the George W. Auch Company of Pontiac, Michigan, with the recognition that the construction management fees to the George W. Auch Company would be increased by approximately $192,000 if the Sheriff's Substation were added to the project; and WHEREAS since the property on which the Sheriff's Substation will be built is owned by Oakland County and construction project is through the Oakland County Building Authority, it is required that the City of Rochester Hills enter into a Sublease with the County; and WHEREAS the Sublease calls for the lease payments to be sufficient to enable the County to meet its principal and interest payments on the bonds as such principal and interest payments become due; and WHEREAS upon the retirement of the bonds, the City of Rochester Hills will take ownership of the Substation and the associated 2.19 acres of property; and WHEREAS the Rochester Hills City Council approved a resolution on June 5, 2002 to enter into a Sublease and a Construction Administration Agreement with the County; and WHEREAS the City of Rochester Hills signed the Sublease and Construction Agreement on July 16, 2002. NOW THERFORE BE IT RESOLVED that the Oakland County Board of Commissioners authorizes the attached Sublease Agreement between the City of Rochester Hills and the County of Oakland for the Sheriff's Substation. FINANCE COMMITTEE Motion carried unanimously on a roll call vote with Patterson absent. August 22, 2002 r .11 C i BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners authorizes the attached Construction Administration Agreement between the City of Rochester Hills and the County of Oakland for the Sheriff's Substation. BE IT FURTHER RESOLVED that the Board of Commissioners authorizes an award of an additional $275,200 to French Associates, Inc. of Rochester Hills, Michigan for architectural/engineering services for the Sheriff's Substation portion of the project. BE IT FURTHER RESOLVED that the Board of Commissioners authorizes an award of an additional $192,000 to the George W. Auch Company of Pontiac, Michigan for construction management services for the Sheriff's Substation portion of the project. BE IT FURTHER RESOLVED that the Chairperson of the Board of Commissioners is hereby authorized and directed to execute the Sublease and Construction Administration Agreement with the City of Rochester Hills, Michigan, on behalf of the County of Oakland. Chairperson, on behalf of the Finance Committee, I move adoption of the foregoing resolution. FINANCE COMMITTEE Aug.,8. 200,2 2:06PM OCDC No.3702, P. 518 41 OAKLAND COUNTY EXECUTIVE DEPARTMENT OF FACILMES MANAGEMENT FACILITIES ENGINEERING DIVISION 52-3 District Court / Sheriffs Substation Project City of Rochester Hills Sublease Construction Administration Agreement Project 96-8 August 13, 2002 Background: The 52-3 District Court / Sheriffs Substation project which will provide new Courthouse on Barclay Circle in Rochester Hills is proceeding through the design process. Facilities Management along with French Associates, the architect and George Auch Co., the construction manager, are preparing to begin construction in September on the project site. It is anticipated construction will take approximately 14 months. Included in the project plans is construction of a new Sheriffs Substation from which the City of Rochester Hills will provide for their future public safety needs.. Sublease: Since the property on which the Substation will be constructed is owned by the County, the project, to be constructed through the County Building Authority, requires the City to enter into a Sublease with the County. Under this Sublease, the City will occupy a Substation constructed by the project, making monthly payments to the County in order to pay off project bonds issued by the Building Authority. The Sublease and the bonds will run concurrently for 20 years. Upon completion of the Sublease, and/or retirement of the Bonds in full the City will take ownership of the Substation and the associated 2.19 acres of property. On June 5, 2002 the Rochester Hills City Council passed a resolution attached, to enter Into a Sublease and a Construction Administration Agreement with the County. These documents were prepared by Corporation Counsel and Facilities Management. The County and City are also in the process of reaching agreement on a Joint Operating Agreement which when concluded will be brought back for approval. NAPLANENG1EngIneer1PROJECTS196-08rdcIP &August 13 02..doc Aug, S. 2002, 2:0PM OCDC • No.3702 , P. 6/8 4 RE: 52-3 DC. / Sheriffs Substation City of Rochester Hills Sublease August 13, 2002 Page 2 Substation Budget: The project budget for the Substation is $5,200,000,. This budget is inclusive of bond financing, property, construction, design, furniture, and project contingencies This amount is available in the project budget of $23,300,000. The balance of $18,100,000 is budgeted for the 52-3 District Court Recommendation: Facilities Management recommends the Planning & Building Committee approve the Sublease and Construction Administration Agreement signed by Rochester Hills for the Sheriffs Substation. Attached is a Report to the Board of Commissioners for your consideration. NAPLANENMEngineerNPROJECTS196-08rdc\P & BkAugust 13, 02.doc ' MOTION CARRiED To: 24845-a25eN 0 . 3702 . P 8)8- 02 A u8. 200 ]r,': 2 07 P M.c 14110CDOrRE;s/ct..K 248-656 24744 31.1N-1E ° ROCHESTER HILLS CITY COUNCIL RESOLUTION At a Regular Rochester Hills City Council Meeting held at the Rochester Hills Municipal Building, 1000 Rochester Hills Drive, Rochester Hills, Oakland County, Michigan, on Wednesday, June 5, 2002. Present; Absent: President John Dalton: Members Bryan Barnett, Jim Duistermars, Lois Golden, Melinda Hill, Barbara Holder , ••, • .• ... Member Gerald-Roillsi r r d e „ • • on. 4.• ) • • S. 4 . CUORUI41 PRESENT . - , ... .. c ., Resolution A0282—X02=R,t,;)R. 58 '. - . , ,..N: :.:.,-::, .. • . , -.' , MOTIOk,b7Thiletermes,,Seconded bytictids•%, ij=:::„ ; ' r• . -, ..., , i 4. - ' I '''...' '4 ,7'.1.F.:'..';i• .1;:. -*.',' . ' ' ..,, ,_ , •-i ,. , .i, r.? ,.., • Now Ther.b/Ore Be. ft itg,cfbd, Thát the,City 41,.-Rochesfer Hips hereby agrees to enter intot'a Subl'ease arig.donstrtictio. a Agr6s,trfent with the County of Oakland to construct. a building io _be used by 4the Oiklarid County Sheriffs Rochester Hills CohtingentAS their SubStation: The . construction budged for this project shall lonMillidn, Two klundred Thousand (S5,20°,600.0.0) llars, , ..„ Further'F'esal' ved, Thatl'f.i.4.QV-Councit hariby authorizes the Mayor and City Clerk 2:2 E;''cl.ite„ the Cocitracts on pehalf of the qty. ' L !L '• , • ., , 1 . • i I a . , n 4:? . 1 . Ayes: ..., Pfltdriz, Dtlister.rpar.s, colden, Holder Nays: •ainetts-Hill .'' -.: - ..... Absent: ..i..-i...:*.:, ....„,, o as... - ....., '1r " r ••••• I, Beverly A. Jasinski, Rochester Hills City Clerk, do hereby certify that the foregoing is a complete and true copy of a Resolution, the original of which is on file in my ;;;ffloe, adopted by the !Rochester Hills City Council at a Regular Rochester Hills City Council Meeting held thereof on June 5, 2002. t ref esavedi That 'fai No.3702 , P. 2/,8 i Aug. $. 2002, 2:05PM -OCDC CONSTRUCTION ADMINISTRATION AGREEMENT This Agreement is made on , 2002, between the COUNTY OF OAKLAND ("County"), a Michigan municipal and constitutional corporation, by and through the Oakland County Building Authority, a statutory entity, and the CITY OF ROCHESTER HILLS ("City"), a Michigan municipal corporation. WHEREAS, the County and the City have determined that it is to their mutual benefit to cooperate and locate, construct and operate the County's new 52-3 District Court facility and the City's new police substation, and their related functions. and facilities, on land owned by the County in the City of Rochester Hills WHEREAS, contemporaneous with this Agreement, the County and City will enter into a Sublease for the premises on which the proposed City's police substation will be constructed, and for the occupation of the police substation by the City until a certain bond issue is retired. WHEREAS, to take advantage of the favorable financing, economies of scale and other mutual benefits, the County and the City desire to coordinate and combine the construction of the courthouse and police substation into a single project (hereinafter the "Project") that will be overseen and administered by County. This Agreement is intended to act forth and govern the relationship between the County and the City relative to the oversight and administration of the police substation portion of the Project. WHEREAS, the County has contracted with an architect and construction manager to prepare plans, specifications and bid documents, and to award and ad-rniniAter a construction contacts, relative to the Project. THEREFORE, the County and the City agree: 1. The County will engage with the architectural firm of French Associates, Inc., of Rochester, Michigan, and the construction management firm of George W. Auch Company, of Pontiac, Michigan, to prepare plans, specifications and bid documents for the Project consisting of a new 52-3 District Court and a new City police substation, and to award and administer a construction contracts for such Project to the lowest responsible bidders. The City will be allowed to have input and review relative to the contents of the progam requirements, plans, specifications and bid documents relating to the police substation portion of the Project. All such review and input shall be done in a timely manner so as not to delay or otherwise hinder the Project schedule. 1 The City will designate one or more City representatives, who shall be invited and allowed to participate in meetings and conferences relating to the development, design and administration of the police portion of the Project. Failure on the part of the City's representative to attend any scheduled meeting, for which notice was given, shall neither be cause to delay the Project schedule, nor to require an additional meeting. 3. Before the Construction Manager goes out for bids for the construction of the project, the City must review and approve the final design and cost estimates for the police substation portion of the project All such review and approval shall be done in a timely manner Aug.,8. 200,2 2:05PM - OCDC .1, • • 1,1 o•3702. P. 3/8 A I so as not to delay or otherwise hinder the Project schedule. Any cost increases incurred because of the City's failure to be timely will be born by the City. 4. After the police station portion of the project has been bid, but before any bids are accepted or any construction contracts are awarded, the City shall be allowed to review and provide input to the County relative to the bids. All such review and input shall be done in a timely manner so as not to delay or otherwise hinder the Project schedule. Any cost increases incurred because of the City's fnilure to be timely will be born by the City.. 5. Except as otherwise set forth herein, the County shall be responsible for, and have control over, the development, oversight and administration of the overall project. 6. Notwithstanding the foregoing, if the County encounters unanticipated conditions that may result in costs that exceed the project budget (Control Estimate) for the police station portion of the Project, the County shPll promptly notify the City and the affected work shall not proceed until further written instructions are received from the City. Any atirlitional .costs incurred because of this type of work stoppage are to be born by the City. If the City issues written instructions abandoning the police station portion of the Project, the City will be responsible for all costs associated with the police station portion of the Project, including the costs of abandoning the project, which costs may include accrued interest on the bonds issued to finance the police station portion of the Project. • The County shall promptly notify the City if the County encounters unanticipated conditions that may result in a significant change of scope of the police station portion of the Project. Pursuant to Paragraphs one through four of this agreement, the City will have input into any Project scope revisions to the police station portion of the Project necessitated by such conditions. Any additional costs incurred because of this type of work stoppage are to be born by the City. lithe City issues written instructions abandoning the police station portion of the Project, then the City will be responsible for all costs associated with the police station portion of the Project, including the costs of abandoning the project, which costs may included accrued interest on the bonds issued to finance the police station portion of the Project. 6. With respect to other change orders that will not significantly change the cost, scope or estimated date of substantial completion of the police substation portion of the project, the City shall have a representative available who shall have authority to approve change orders in the field. This representative must be available during all times of construction in order that the project not be delayed. Failure on the part of the City's representative to be available, shall not be cause to delay the Project schedule, and the County will proceed as if approval had been given by the City's representative. Any cost increases incurred because of the City's failure to be timely, will be born by the City, Witness: SitAlak.,n1.4c14+14._ eA4 /'Lo fr" rei //g Gc\ CITY OF ROCHESTER HILLS By: 4,exitie; Pat Somerville, Mayor Beverly l'aiinslA, Clerk Aug. 8. 2002 2:06PM ---0CDC No.3702 P. 4/ Witness: COUNTY OF OAKLAND By: By Chairman, Board of Commissioners County Clerk STATE OF MICHIGAN ) COUNTY OF OAKLAND ) On this 1 day 2002, the foregoing instrument was acknowledged before rne by Pat Somerville and Beverly J Id, o are the Mayor and the Clerk of the City of Rochester Hills, a Michigan 6 t:4 municipal corporaton, on behalf of said City. Naiafy Public, Oakland County, Michigan My commission expires: 1Seins" STATE OF MICSIG.AN ) COUNTY OF OAKLAND ) On this day of _, 2002, the foregoing instrument was acknowledged before me by and , who are the Chairman and the County Clerk of the County of Oakland, a Michigan municipal. and constitutional corporation, on br}oilf of said County . Notary Public, Oakland County, Michigan My commission expires: Jean Onas Oatdand County, MI My Co ..?:,r; Expirea Augusi 205.1 3 01/24/02 SUBLEASE THIS SUBLEASE made as of 60005T 12. , 2002 by and between the COUNTY OF OAKLAND, a county in the State of Michigan (the "County"), and the CITY OF ROCHESTER HILLS (the "City"), a home rule city organized and existing under and pursuant to the provisions of Act No. 279, Public Acts of Michigan of 1909, as amended ("Act 279"), and WI TNESSETH : WHEREAS, the Oakland County Building Authority (the "Authority") has been incorporated by the County for the purpose of acquiring, furnishing, equipping, owning, improving, enlarging, operating and maintaining a building or buildings, automobile parking lots or structures, recreational facilities and stadiums, and the necessary site or sites therefor, for the use of the County; and WHEREAS, the Authority intends to construct and equip a Project on the premises described in APPENDIX A, a portion of which is to be subleased to the City (hereinafter referred to as the police substation portion), and the County and the Authority have entered into a certain Full Faith and Credit General Obligation Lease Contract (the "County Lease") pursuant to which the Project is being constructed by the Authority for the County; and WHEREAS, the County desires to undertake a project consisting of land and the construction and equipping of a building and related improvements on said land, as more fully described in APPENDIX A to this Sublease (the "Project"), and it is proposed that the Authority undertake the Project; and WHEREAS, the County wishes to sublease a portion of the Project to the City pursuant to the terms of this Sublease; THEREFORE, IN CONSIDERATION OF THE MUTUAL UNDERTAKINGS AND AGREEMENTS SET FORTH BELOW, IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES TO THIS SUBLEASE AS FOLLOWS: 1. Authorization and Issuance of Bonds. The County intends to cause the Authority to issue its building authority bonds in the aggregate principal of not to exceed $ 5,200,000.00(the "Bonds") for the purpose of defraying part or all of the cost of the Project. The Bonds are to be dated April 1, 2002 or the first day of any later month in 2002 and bear interest at a rate that will result in a net interest cost of not to exceed 8% per annum. Interest shall be payable semi-annually on and shall begin as specified in the Bond Resolution until maturity of the bonds and shall mature in accordance with the Debt Retirement Schedule set forth on APPENDIX B to this Sublease. Each date on which any payment of principal of and/or interest on any Bond is due is referred to herein as a "Bond Payment Date." The Bonds may be payable on the first day of a different month if necessary to match rental income paid to the County. The County and the City recognize and acknowledge that (a) such Debt Retirement Schedule is based upon an assumed interest rate and date of issuance of the Bonds and assumed Bond Payment Dates, all as set forth in APPENDIX B, (b) the Bond Payment Dates will be specified in the Bond Resolution, (c) the date and amount of each payment of cash rental required under this Sublease will be determined (subject to the limitations expressed in the preceding paragraph of this Section) when the Bond Resolution is adopted by the Authority and the Bonds are sold, by application of the rate or rates of interest (that will result in a net interest cost not exceeding 8% annum) actually borne by the Bonds. After approval by the County of construction bids, the Bonds shall be sold subject to redemption prior to maturity at the option of the Authority and the City with the redemption premiums and upon such terms as are set forth in APPENDIX C attached hereto. The Authority agrees that upon request of the City it shall redeem the Bonds; provided the City has or will deposit sufficient money to permit such redemption with the Authority prior to calling the bonds. In the event that for any reason after the date upon which this Sublease is executed, but before the Bonds have been issued, it appears to the County and the City that the part of the Project to be paid for by Bond proceeds can be constructed for less than $ 5,200,000.00,or The City shall be able to make payments in advance on the cash rental payments payable pursuant to this Sublease, the County, at the direction of the City, shall cause the Authority to reduce the amount of bonds to be issued in multiples of $5,000 and reduce the annual maturities or the years of maturities as the County shall direct. 2. Completion of Project. The Authority will commence the Project as follows: (1) the plans, cost estimate and estimated period of usefulness for the Project, all must be filed with the County Clerk and the City, (2) the City must approve the plans and cost estimate for the police substation portion of the project, and (3) the Authority will obtain construction bids on the Project, after which subject to approval from the City, the Authority will approve the award to the lowest responsible bidder. The Project shall be implemented in substantial accordance with such plans which shall be incorporated as part of (but not attached to) this Sublease. No major changes in such plans shall be made without the written approval of both the County and the City. 3. Increased Project Costs. In the event that it shall appear, upon taking the necessary bids for the acquisition of the Project and after issuance of the Bonds, that the Project cannot be completed at the estimated cost, the County shall immediately so notify the City. The City may elect to pay the increased cost in 2 cash to the Authority in which event the amount of such cash payment shall be deposited in the acquisition fund for the Project and the Authority shall proceed to acquire and complete the Project. 4. Insurance Requirements. The County shall cause the Authority to require the contractor or contractors for the Project to furnish all necessary bonds guaranteeing performance and all labor and material bonds and all owner's protective, workers' compensation and liability insurance required for the protection of the Authority, the County, and the City. Such bonds and insurance, and the amounts thereof, shall be subject to approval of the County and the City. The County shall also cause the Authority to require a sufficient fidelity bond from any person handling funds of the Authority. 5. Sublease Term; Possession. (a) The County does hereby sublease a portion of the Project to the City for a term commencing on the effective date of this Sublease (determined as provided in paragraph 21) for 20 years after completion of the Project. Possession of the Project, subject to the sublease, shall vest in the City upon the execution of the Sublease and completion of the Project. (b) Upon retirement of the Bonds, the County agrees to convey the Project to the City. (c) The parties contemplate and agree that prior to or simultaneous with the parties' entry into this Sublease, the County shall apply for and the City shall approve a land division to split the police substation portion of the land from the overall parcel of land owned by the County. 6. Rental. The City hereby agrees during the term of this Sublease or any renewal hereof to pay to the County as rent for the Project such periodic amounts as shall be sufficient to enable the County to meet its payments to the Authority on the Project to pay the principal of and interest on the Bonds as such principal and interest shall become due, whether at maturity or by redemption. During the term of the Sublease or any extensions thereof, the City shall pay to the County, at least 15 days before each Bond Payment Date, an amount sufficient to pay the principal and/or interest due on the Bonds on such Bond Payment Date. The City hereby agrees to pay from its general fund, or such other fund(s) as the City may designate, the rent payments when due. The obligation of the City to make such rent payments shall not be subject to any set-off by the City nor shall there be any abatement of the rent payments for any cause, including, but not limited to, casualty that results in the Project being untenantable. 7. Expenses of Issuing and Payment of Bonds. The County shall cause the Authority to pay from the proceeds of the sale of the Bonds all expenses incurred with respect to the issuance of the Bonds. The City agrees to pay to the County, in addition to the rent provided for in Section 6, all expenses incurred with respect to the issuance and payment of the Bonds, to the extent not so paid from the proceeds from the sale of the Bonds. The obligation of the City to make such payments shall be a general obligation of the City. 3 8. Maintenance and Repairs. The City shall, at its own expense, operate and maintain the Project and shall keep the same in good condition and repair. Operation and maintenance shall include (but not be limited to) the providing of all personnel, equipment and facilities, all light, power, heat, water, sewerage, drainage and other utilities, and all properties and services of whatever nature, as shall be necessary or expedient in the efficient and lawful operation and maintenance of the Project. Premiums for insurance required to be carried upon or with respect to the Project or the use thereof and taxes levied upon either party hereto on account of the ownership or use of the Project, or on account of rentals or income from the Project, shall likewise be deemed operation and maintenance expenses. The obligation of the City to pay all costs and expenses of the operation and maintenance of the Project shall be a general obligation of the City. 9. Property Insurance and Insurance Proceeds; Builder's Risk Insurance (a) The City shall provide, at its own expense, fire and extended coverage insurance in an amount which is at least equal to the amount of Bonds outstanding from time to time or to the amount of the full replacement cost of the Project if that amount be less than the amount of Bonds outstanding. Such insurance shall be payable to the City, the County and the Authority as their interests may appear and shall be made effective from the date of commencing construction of the Project. In the event of the partial or total destruction of the Project during or after construction, or if the Project is for any reason made unusable, the cash rental payments provided in Section 6 shall continue unabated. The City shall have the option to use the proceeds of insurance, in the event of loss or damage to the Project, for the repair or restoration of the Project. If the City shall determine not to use the proceeds of insurance for the repair or restoration of the Project, the amount of such insurance proceeds shall be paid to the County and by it paid to the Authority which shall deposit the same in the bond and interest redemption fund, and the City shall receive appropriate credits on future cash rental payments due under this Lease. Any insurance proceeds in excess of the amount necessary to retire the Bonds in full shall be retained by the City. (b) The County shall cause the Authority to provide for Builder's Risk Insurance during construction of the Project, the cost of which shall be included in the Project costs. 10. Liability Insurance. The City shall provide and maintain during the term of this Lease adequate liability insurance protecting the City, the County and the Authority against loss on account of damage or injury to persons or property, imposed by reason of the ownership, possession, use, operation, maintenance or repair of the Project and the site of the Project, or resulting from any acts of omission or commission on the part of the City, the County or the Authority or their respective officers, employees or agents in the connection with the Project and shall indemnify, hold harmless and defend the Authority, its officers, employees or agents against any and all claims for any such damage or injury. Such 4 insurance shall be made effective from the date construction of the Project commences. 11. No Unlawful Use Permitted. It is the present intent of the City to use the Project for a police substation; however, the Project may be used for any legitimate public purpose permitted by Public Act 280 of the Public Acts of 1987 and MCL 123.951 and shall not be used or permitted to be used in any unlawful manner. Notwithstanding the foregoing, if during the term of this Sublease, the City decides or forms the intent to cease using the Project for a police substation or to make a different use of the Project, the City shall notify the County, in writing, of such decision or intent, and the County shall have the right for a period of 120 days from the date of receipt of the City's notice to elect to purchase the City's right and interest in the Project upon terms, conditions or arrangements to be negotiated in good faith by the County and the City, but the price shall not exceed the amount the City has expended in retiring the bonds to the date of any purchase by the County. Upon such purchase by the County of the City's right and interest in the Project, the City shall have no further obligation to pay rent. Subsequent to the conveyance of the police substation portion of the Project to the City, and for as long as the district court occupies the County's portion of the site, the City agrees that any use of its portion of the Project other than for a police substation will be compatible and not inconsistent with the security needs and requirements of the district court. The City specifically agrees, that as long as the district court occupies the site, it will never use its portion of the site in such a manner as to generate dust, dirt, or noise above the levels ordinarily generated by typical office land uses. The City further agrees to the inclusion of these requirements as a deed restriction in the deed when the City's portion of the Project is conveyed to the City. 12. Indemnification by City. To the extent permitted by law, the City shall hold the County and Authority harmless and keep it fully indemnified at all times against any loss, injury or liability to any persons or property by reason of the acts or negligence of the City in the use, misuse or non-use of the Project or from any act or omission in, on or about the Project. The City shall, at its own expense, make any changes or alterations in, on or about the Project which may be required by any applicable statute, charter or governmental regulation or order and shall hold the County and the Authority harmless and free from all costs or damages with respect thereto. 13. Alterations of Project. Upon completion of the Project, the City may install or construct in or upon, or may remove from, the Project any equipment, fixtures or structures, and may make any alterations to or structural changes in, the Project. If the changes impact areas outside the City's part of the overall Project, the County shall approve the changes as well. 14. Right of Inspection. The County and Authority, through its officers, employees or agents, may enter upon the Project at any reasonable time after reasonable notice during the term of this Lease for the purpose of inspecting the Project and determining 5 whether the City is complying with the covenants, agreements, terms and conditions of this Lease. 15. Contractual Rights of Bondholders. Inasmuch as this Lease, and particularly the obligation of the City to make cash rental payments to the County, provides the security for payment of the principal of and interest on the Bonds, it is hereby declared that this Lease is made for the benefit of the holders from time to time of the Bonds as well as for the benefit of the parties and that such holders shall have contractual rights under this Lease. In the event of any default under this Lease on the part of the City, the County, the Authority and the holders of the Bonds shall have all rights and remedies provided by law. The parties further agree that they will not do, or permit to be done, any act, and that this Lease will not be amended in any manner, which would impair the security of the Bonds or the rights of the holders of the Bonds. An amendment of this Lease to authorize the issuance of additional Bonds and providing the payment of additional rent for the payment of such Bonds shall not be deemed to impair the security of the Bonds or the rights of the holders of the Bonds. 16. Appurtenant Facilities. The site on which this Project is to be located includes, or will include, roadways, walks, drives, parking areas and landscaping which are of benefit to and necessary to the full use and enjoyment of the Project, and it is hereby agreed that such appurtenant facilities will be maintained in good repair and condition by the City and available to the users and occupants of the Project. The appurtenant facilities shall be shown, described and depicted on a site plan to be attached hereto as ADDENDUM E. 17. Successors and Assigns. This Lease shall inure to the benefit of, and be binding upon, the respective parties hereto and their successors and assigns, provided, however, that no assignment shall be made in violation of the terms of this Lease nor shall any assignment be made by the City without the approval of the County or which would impair the security of the Bonds or the rights of the holders of the Bonds. 18. Abandonment of Project. In the event the Bonds to finance the Project cannot be or are not issued by the Authority on or before December 1, 2002, the Project shall be abandoned, the City shall pay from available funds the expenses of the Authority relating to the Project that have been incurred to the date of abandonment, and neither party shall have any further obligations under this Lease. 19. Consents, Notices, Etc. The right to give any consent, agreement or notice required or permitted in this Lease shall be vested, in the case of the County, in its Board of Commissioners, and in the case of the City, in its City Council. Any notice required or permitted to be given under this Lease shall be given by delivering the same, in the case of the County, to the County Clerk, and in the case of the City, to its City Clerk. 6 WITNESS: arAe 7"4-"rq ve By: as 10,2e44(Colanty Clerk , te, 44,4444.02 y ehuLog. b_og&f-v4a) Chairman Board of Commissioners M60t Z-Z 2M_ 2002, the foregoing instrument was and af(Reki.1-,..1/F,YL)O.Ri, who are the of Rochester Hills, a home ule city, on behalf of City Notargyulil„ic A wva.k.6r—x_ey County, 7.chigan My Commission Expires: 20. Changes in Law or Corporate Status. In the event there shall occur changes in the Constitution or statutes of the State of Michigan which shall affect the organization, territory, powers or corporate status of the City or the County, the terms and provisions of this Lease shall be unaffected thereby insofar as the obligation of the City to make the cash rental payments is concerned. The proceeds of any sale or other liquidation of any interest of the City in the Project are hereby impressed with a first and prior lien for payment of any outstanding Bonds or other obligations of the Authority incurred by reason of the Project or any additions or improvements thereto. 21. Effective Date of Lease. This Lease shall become effective on the date of execution. IN WITNESS WHEREOF, the CITY OF ROCHESTER HILLS as authorized by its City Council and the COUNTY OF OAKLAND, by its Board of Commissioners, have caused this Lease to be signed by their duly authorized officers, and their seals to be affixed hereto, all as of the day and year first above written. CITY OF OCHESTER KILLS By: ayor STATE OF MICHIGAN ) COUNTY OF OAKLAND ) On this /(oOL day acknowledged before me by Mayor and the Clerk of the said City. JeanC10149 - Notary Publir OAkk-,,,r4 nnuntV, My Comr- 7 Nota/VPubl nty, Michigan STATE OF MICHIGAN COUNTY OF OAKLAND On this day of , 2002, the foregoing instrument was acknowledged before me by and the Chairman and the County Clerk of the County of Oakland, a on behalf of said My Commission Expires: WHAM D 1411GRSON NOTARY PUBLIC OAKLAND CO., MI MY COMMISSION EXPIRES May 5, 2004 , who are 8 APPENDIX A PROJECT DESCRIPTION [TO BE PROVIDED] 1 DESCRIPTION OF THE PROJECT AND COST ESTIMATE Project Developmant: The construction of the Project shall include the following components and estimated construction and financing costs: Sheriff's Substation: A cae story brick-face building with approximately 14,500 square. feet to House a Sheriff's Substation to serve the City of Rochester Hills including architectural, equipment and contingency. Cost Estimates Construction, Architectural, Equipment, Cortirgpney, FirArcl'ing Ct Y Rnrid ni7,c!nnnt $5,200,000 TOTAL $ $ APPENDIX B SCHEDULE OF PRINCIPAL AND INTEREST Due Amount Rate Interest % $ $ APPENDIX C REDEMPTION PROVISIONS 1 $6,130,000 OAKLAND COUNTY BUILDING AUTHORITY BONDS, SERIES 2002 SHERIFFS SUBSTATION 20 YEAR ESTIMATED DEBT SERVICE SCHEDULE Total Date Principal Coupon Interest Debt Service Annual Total 09/01/02 $106,155.21 $106,155.21 $106,155.21 03/01/03 127,386.25 127,386.25 09/01/03 $215,000.00 2.30% 127,386.25 342,386.25 469,772.50 03/01/04 124,913.75 124,913.75 09/01/04 220,000.00 2.65% 124,913.75 344,913.75 469,827.50 03/01/05 121,998.75 121,998.75 09/01/05 225,000.00 2.85% 121,998.75 346,998.75 468,997.50 03/01/06 118,792.50 118,792.50 09/01/06 230,000.00 3.10% 118,792.50 348,792.50 467,585.00 03/01/07 115,227.50 115,227.50 09/01/07 240,000.00 3.35% 115,227.50 355,227.50 470,455.00 03/01/08 111,207.50 111,207.50 09/01/08 250,000.00 3.60% 111,207.50 361,207.50 472,415.00 03/01/09 106,707.50 106,707.50 09/01/09 255,000.00 3.75% 106,707.50 361,707.50 468,415.00 03/01/10 101,926.25 101,926.25 09/01/10 265,000.00 3.85% 101,926.25 366,926.25 468,852.50 03/01/11 96,825.00 96,825.00 09/01/11 275,000.00 3.95% 96,825.00 371,825.00 468,650.00 03/01/12 91,393.75 91,393.75 09/01/12 285,000.00 4.05% 91,393.75 376,393.75 467,787.50 03/01/13 85,622.50 85,622.50 09/01/13 300,000.00 4.20% 85,622.50 385,622.50 471,245.00 03/01/14 79,322.50 79,322.50 09/01/14 310,000.00 4.30% 79,322.50 389,322.50 468,645.00 03/01/15 72,657.50 72,657.50 09/01/15 325,000.00 4.40% 72,657.50 397,657.50 470,315.00 03/01/16 65,507.50 65,507.50 09/01/16 340,000.00 4.55% 65,507.50 405,507.50 471,015.00 03/01/17 57,772.50 57,772.50 09/01/17 355,000.00 4.65% 57,772.50 412,772.50 470,545.00 03/01/18 49,518.75 49,518.75 09/01/18 370,000.00 4.75% 49,518.75 419,518.75 469,037.50 03/01/19 40,731.25 40,731.25 09/01/19 390,000.00 4.80% 40,731.25 430,731.25 471,462.50 03/01/20 31,371.25 31,371.25 09/01/20 405,000.00 4.85% 31,371.25 436,371.25 467,742.50 03/01/21 21,550.00 21,550.00 09/01/21 425,000.00 4.90% 21,550.00 446,550.00 468,100.00 03/01/22 11,137.50 11,137.50 09/01/22 450,000.00 4.95% 11,137.50 461,137.50 472,275.00 $6,130,000.00 $3,369,295.21 $9,499,295.21 $9,499,295.21 Interest Start Date (Dated Date): 411102 $6,130,000 OAKLAND COUNTY BUILDING AUTHORITY BONDS, SERIES 2002 SHERIFFS' SUBSTATION 25 YEAR ESTIMATED DEBT SERVICE SCHEDULE Total Date Principal Coupon Interest Debt Service Annual Total 09/01/02 $112,408.33 $112,408.33 $112,408.33 03/01/03 134,890.00 134,890.00 09/01/03 $150,000.00 2.30% 134,890.00 284,890.00 419,780.00 03/01/04 133,165.00 133,165.00 09/01/04 155,000.00 2.65% 133,165.00 288,165.00 421,330.00 03/01/05 131,111.25 131,111.25 09/01/05 160,000.00 2.85% 131,111.25 291,111.25 422,222.50 03/01/06 128,831.25 128,831.25 09/01/06 160,000.00 3.10% 128,831.25 288,831.25 417,662.50 03/01/07 126,351.25 126,351.25 09/01/07 170,000.00 3.35% 126,351.25 296,351.25 422,702.50 03/01/08 123,503.75 123,503.75 09/01/08 175,000.00 3.60% 123,503.75 298,503.75 422,007.50 03/01/09 120,353.75 120,353.75 09/01/09 180,000.00 3.75% 120,353.75 300,353.75 420,707.50 03/01/10 116,978.75 116,978.75 09/01/10 185,000.00 3.85% 116,978.75 301,978.75 418,957.50 03/01/11 113,417.50 113,417.50 09/01/11 195,000.00 3.95% 113,417.50 308,417.50 421,835.00 03/01/12 109,566.25 109,566.25 09/01/12 200,000.00 4.05% 109,566.25 309,566.25 419,132.50 03/01/13 105,516.25 105,516.25 09/01/13 210,000.00 4.20% 105,516.25 315,516.25 421,032.50 03/01/14 101,106.25 101,106.25 09/01/14 220,000.00 4.30% 101,106.25 321,106.25 422,212.50 03/01/15 96,376.25 96,376.25 09/01/15 230,000.00 4.40% 96,376.25 326,376.25 422,752.50 03/01/16 91,316.25 91,316.25 09/01/16 240,000.00 4.55% 91,316.25 331,316.25 422,632.50 03/01/17 85,856.25 85,856.25 09/01/17 250,000.00 4.65% 85,856.25 335,856.25 421,712.50 03/01/18 80,043.75 80,043.75 09/01/18 260,000.00 4.75% 80,043.75 340,043.75 420,087.50 03/01/19 73,868.75 73,868.75 09/01/19 270,000.00 4.80% 73,868.75 343,868.75 417,737.50 03/01/20 67,388.75 67,388.75 09/01/20 285,000.00 4.85% 67,388.75 352,388.75 419,777.50 03/01/21 60,477.50 60,477.50 09/01/21 300,000.00 4.90% 60,477.50 360,477.50 420,955.00 03/01/22 53,127.50 53,127.50 09/01/22 315,000.00 4.95% 53,127.50 368,127.50 421,255.00 03/01/23 45,331.25 45,331.25 09/01/23 330,000.00 4.95% 45,331.25 375,331.25 420,662.50 03/01/24 37,163.75 37,163.75 09/01/24 345,000.00 4.95% 37,163.75 382,163.75 419,327.50 03/01/25 28,625.00 28,625.00 09/01/25 365,000.00 5.00% 28,625.00 393,625.00 422,250.00 03/01/26 19,500.00 19,500.00 09/01/26 380,000.00 5.00% 19,500.00 399,500.00 419,000.00 03/01/27 10,000.00 10,000.00 09/01/27 400,000.00 5.00% 10,000.00 410,000.00 420,000.00 $6,130,000.00 $4,500,140.83 $10,630,140.83 $10,630,140.83 Interest Start Date (Dated Date): 4/1/02 $6,130,000 OAKLAND COUNTY BUILDING AUTHORITY BONDS, SERIES 2002 - SHERIFFS SUBSTATION 30 YEAR ESTIMATED DEBT SERVICE SCHEDULE Total Date Principal Coupon Interest Debt Service Annual Total 09/01/02 $116,865.63 $116,865.63 $116,865.63 03/01/03 140,238.75 140,238.75 09/01/03 $110,000.00 2.30% 140,238.75 250,238.75 390,477.50 03/01/04 138,973.75 138,973.75 09/01/04 110,000.00 2.65% 138,973.75 248,973.75 387,947.50 03/01/05 137,516.25 137,516.25 09/01/05 115,000.00 2.85% 137,516.25 252,516.25 390,032.50 03/01/06 135,877.50 135,877.50 09/01/06 120,000.00 3.10% 135,877.50 255,877.50 391,755.00 03/01/07 134,017.50 134,017.50 09/01/07 120,000.00 3.35% 134,017.50 254,017.50 388,035.00 03/01/08 132,007.50 132,007.50 09/01/08 125,000.00 3.60% 132,007.50 257,007.50 389,015.00 03/01/09 129,757.50 129,757.50 09/01/09 130,000.00 3.75% 129,757.50 259,757.50 389,515.00 03/01/10 127,320.00 127,320.00 09/01/10 135,000.00 3.85% 127,320.00 262,320.00 389,640.00 03/01/11 124,721.25 124,721.25 09/01/11 140,000.00 3.95% 124,721.25 264,721.25 389,442.50 03/01/12 121,956.25 121,956.25 09/01/12 145,000.00 4.05% 121,956.25 266,956.25 388,912.50 03/01/13 119,020.00 119,020.00 09/01/13 150,000.00 4.20% 119,020.00 269,020.00 388,040.00 03/01/14 115,870.00 115,870.00 09/01/14 160,000.00 4.30% 115,870.00 275,870.00 391,740.00 03/01/15 112,430.00 112,430.00 09/01/15 165,000.00 4.40% 112,430.00 277,430.00 389,860.00 03/01/16 108,800.00 108,800.00 09/01/16 175,000.00 4.55% 108,800.00 283,800.00 392,600.00 03/01/17 104,818.75 104,818.75 09/01/17 180,000.00 4.65% 104,818.75 284,818.75 389,637.50 03/01/18 100,633.75 100,633.75 09/01/18 190,000.00 4.75% 100,633.75 290,633.75 391,267.50 03/01/19 96,121.25 96,121.25 09/01/19 200,000.00 4.80% 96,121.25 296,121.25 392,242.50 03/01/20 91,321.25 91,321.25 09/01/20 205,000.00 4.85% 91,321.25 296,321.25 387,642.50 03/01/21 86,350.00 86,350.00 09/01/21 220,000.00 4.90% 86,350.00 306,350.00 392,700.00 03/01/22 80,960.00 80,960.00 09/01/22 230,000.00 4.95% 80,960.00 310,960.00 391,920.00 03/01/23 75,267.50 75,267.50 09/01/23 240,000.00 4.95% 75,267.50 315,267.50 390,535.00 03/01/24 69,327.50 69,327.50 09/01/24 250,000.00 4.95% 69,327.50 319,327.50 388,655.00 03/01/25 63,140.00 63,140.00 09/01/25 265,000.00 5.00% 63,140.00 328,140.00 391,280.00 03/01/26 56,515.00 56,515.00 09/01/26 275,000.00 5.00% 56,515.00 331,515.00 388,030.00 03/01/27 49,640.00 49,640.00 09/01/27 290,000.00 5.00% 49,640.00 339,640.00 389,280.00 03/01/28 42,390.00 42,390.00 09/01/28 305,000.00 5.00% 42,390.00 347,390.00 389,780.00 03/01/29 34,765.00 34,765.00 09/01/29 320,000.00 5.00% 34,765.00 354,765.00 389,530.00 03/01/30 26,765.00 26,765.00 09/01/30 335,000.00 5.05% 26,765.00 361,765.00 388,530.00 03/01/31 18,306.25 18,306.25 09/01/31 355,000.00 5.05% 18,306.25 373,306.25 391,612.50 03/01/32 9,342.50 9,342.50 09/01/32 370,000.00 5.05% 9,342.50 379,342.50 388,685.00 $6,130,000.00 $5,685,205.63 $11,815,205.63 $11, 815..2115_63 Interest Start Date (Dated Date): 4/1/02 APPENDIX D CITY ORDINANCES N:\TEMPFILE\lnumber\2001\2001-0400 thru 2001-0499\2001-0494 OCSD Substation-Rochester Hills,52-3 Dist Ct Contract\Sublease (revised 01.24.02)Final.doc 2 - MISCELLANEOUS RESOLUTION #02 198 BY: Finance Committee, Sue Ann Douglas, Chairperson IN RE: DEPARTMENT OF FACILITIES MANAGEMENT - 52-3 DISTRICT COURT/SHERIFF'S SUBSTATION PROJECT - SHERIFF'S SUBSTATION SUBLEASE AGREEMENT WITH CITY OF ROCHESTER HILLS To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS the Oakland County Board of Commissioners by Miscellaneous Resolution #01182 authorized the extension of its superior credit rating, AAA bond rating, to local units of government throughout Oakland County; and WHEREAS the Oakland County Board of Commissioners by Miscellaneous Resolution #01165 approved the sale of bonds to finance the 52-3 District Court and Sheriff's Substation project in an amount not to exceed $23,300,000; and WHEREAS $18,100,000 in bonds were sold for the 52-3 District Court and $5,200,000 in bonds were sold for the Sheriff's Substation, for a total of $23,300,000; and WHEREAS the City of Rochester Hills, Michigan, has agreed to the addition of the Sheriff's Substation to the project; and WHEREAS the repayment of bonds for the Sheriff's Substation will be the responsibility of the City of Rochester Hills along with annual maintenance and operational expenses; and WHEREAS Miscellaneous Resolution #01308 authorized the awarding of a contract for architectural/engineering services for the 52-3 District Court Project to French Associates, Inc., of Rochester, Michigan with the recognition that the architectural/engineering fees to French Associates, Inc. would be increased by approximately $275,200 if the Sheriff's Substation were added to the project; and WHEREAS Miscellaneous Resolution #01308 authorized the awarding of a contract for construction management services for the 52-3 District Court Project to the George W. Auch Company of Pontiac, Michigan, with the recognition that the construction management fees to the George W. Auch Company would be increased by approximately $192,000 if the Sheriff's Substation were added to the project; and WHEREAS since the property on which the Sheriff's Substation will be built is owned by Oakland County and construction project is through the Oakland County Building Authority, it is required that the City of Rochester Hills enter into a Sublease with the County; and WHEREAS the Sublease calls for the lease payments to be sufficient to enable the County to meet its principal and interest payments on the bonds as such principal and interest payments become due; and WHEREAS upon the retirement of the bonds, the City of Rochester Hills will take ownership of the Substation and the associated 2.19 acres of property; and WHEREAS the Rochester Hills City Council approved a resolution on June 5, 2002 to enter into a Sublease and a Construction Administration Agreement with the County; and WHEREAS the City of Rochester Hills signed the Sublease and Construction Agreement on July 16, 2002. NOW THERFORE BE IT RESOLVED that the Oakland County Board of Commissioners authorizes the attached Sublease Agreement between the City of Rochester Hills and the County of Oakland for the Sheriff's Substation. August 22, 2002 FINANCE COMMITTEE Motion carried unanimously on a roll call vote with Patterson absent. --- 7 410' r /13-` Ci 'I BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners authorizes the attached Construction Administration Agreement between the City of Rochester Hills and the County of Oakland for the Sheriff's Substation. BE IT FURTHER RESOLVED that the Board of Commissioners authorizes an award of an additional $275,200 to French Associates, Inc. of Rochester Hills, Michigan for architectural/engineering services for the Sheriff's Substation portion of the project. BE IT FURTHER RESOLVED that the Board of Commissioners authorizes an award of an additional $192,000 to the George W. Auch Company of Pontiac, Michigan for construction management services for the Sheriff's Substation portion of the project. BE IT FURTHER RESOLVED that the Chairperson of the Board of Commissioners is hereby authorized and directed to execute the Sublease and Construction Administration Agreement with the City of Rochester Hills, Michigan, on behalf of the County of Oakland. Chairperson, on behalf of the Finance Committee, I move adoption of the foregoing resolution. FINANCE COMMITTEE No.3702, P. 5.1 a I Aug.1 8. 200,2 2:06P OCDC OAKLAND COUNTY EXECUTIVE DEPARTMENT OF FACILMES MANAGEMENT FACILITIES ENGINEERING DIVISION 524 District Court / Sheriffs Substation Project City of Rochester Hills Sublease Construction Administration Agreement Project 96-8 August 13, 2002 Rack f_gcnifid: The 52-3 District Court / Sheriffs Substation project which will provide new Courthouse on Barclay Circle in Rochester Hills Is proceeding through the design process. Facilities Management along with French Associates, the architect and George Auch Co., the construction manager, are preparing to begin construction in September on the project site. It is anticipated construction will take approximately 1 .4 months. Included in the project plans is construction of a new Sheriff's Substation from which the City of Rochester Hills will provide for their future public safety needs.. Sublease: Since the property on which the Substation will be constructed is owned by the County, the project, to be constructed through the County Building Authority, requires the City to enter into a Sublease with the County. Under this Sublease, the City will occupy a Substation constructed by the project, making monthly payments to the County in order to pay off project bonds issued by the Building Authority. The Sublease and the bonds will run concurrently for 20 years. Upon completion of the Sublease, and/or retirement of the Bonds in full the City will take ownership of the Substation and the associated 2.19 acres of property. On June 5, 2002 the Rochester Hills City Council passed a resolution attached, to enter into a Sublease and a Construction Administration Agreement with the County. These documents were prepared by Corporation Counsel and Facilities Management. The County and City are also in the process of reaching agreement on a Joint Operating Agreement which when concluded will be brought back for approval. NAPLANENMEngtneer1PROJECTS196-08rdc\P & EMugust 13 02.doc Aug. S. 20021 2:06P OCDC • No.3702 , P. 6/8 4 1 RE: 52-3 DC. / Sheriffs Substation City of Rochester Hills Sublease August 13, 2002 Page 2 Substation Budget: The project budget for the Substation is $5,200,000,. This budget is inclusive of bond financing, property, construction, design, furniture, and project contingencies This amount is available in the project budget of $23,300,000. The balance of $18,100,000 Is budgeted for the 52-3 District Court Recommendation: Facilities Management recommends the Planning & Building Committee approve the Sublease and Construction Administration Agreement signed by Rochester Hills for the Sheriffs Substation. Attached is a Report to the Board of Commissioners for your consideration. NAPLANENG\Engineer\PROJECTS196-08rOcT & 13 nAugu5t 13„ 02.doc ••• ••n TO:2B4522037U24j P Ep A u fl. 200217 2 07 P Rat° C D O rREs,ax 24e_65624744 311N-la ° ROCHESTER HILLS CITY COUNCIL RESOLUTION At a Regular Rochester Hills City Coundl Meeting held at the Rochester Hills Municipal Building, 1000 Rochester Hills Drive., Rochester Hills, Oakland County, Michigan, on Wednesday, June 5, 2002. Present President John Dalton; Members Bryan Barnett, Jim Duistermars, Lois Golden, Melinda Hill, Barbara Holder MOTION p.:71o,oisterma,,pa,parided by'llacleP,'1 g; . j _., , f. f ..,: #,..)F.. ,....., ;„. . _ . -; ; -`1:, -'‘• i . : '..t•:, Now Ther.e.i.fOre Be. ft iFstsalybd, ThAt.the,City 4.Rochesfer hills hereby 2arees to enter intota Subkase eild.:..donstn.ictiOn Abt*Ifierit with the County of Oakland to construct a building to ii.6 used by"the 041and County Sheriff's Rochester Hills Contingent :se their SubiStation. The . construction budged for this project shall 1.1ive Millidln, Two, taindred Thousand (S5,200,600.0,0) Qtillers, t 4 ,",. .. Furth41ThRsal1ed, That'The,Q1V-Couricit hereby a,uthorizes the Mayor and City Clerk ti.• L'iictite the 'CoQtracts ail p0fif of the City, .• , „ . ,.. '.,..__.., '• '• ' ..., , .. ,...,. ., • Ayes: i , paltOn Dditterrrea, Golden; Holder . Nays: ..1/4 "8:2„mett,-Hjil ' -.; .._': ,,..L, . • " _...- ;., ,.• ' . Absent: 'FlatcHii's '''-- . .,... .... .._• ., MOTION CARRIED .,;. ,..,•••• , ‘,. -,-...••-• • ... -- • •2 ...LI,. :. . ,.. ••......-.--•- r. _ • •-,.,. A:-...--.." . s''‘,. ,t, ... .., ..--" . 4. .. ,......,.•, 4, r.. s., Absent: QUORUM PRESENT Member Gereld -Rollbine,77- '' r t,../ ,.;*.,12, , .. ..., i l,,......... . • 4 • ,.. 4.: , i !,- • .. ., ... . ' .1 • ,' .{. . ,•.7 4. , 1 4,0 . 4% . , .1 • • 't l• .--P • .4 i .i. ' ' • Resolution A0282—.41.02=fRP2§8 ' . ..; ,,: :..1.,-:,.. ,. . , ..-*/ . — J 4. J . • i '. -;.: . ,.. '1` : ' "' ''' , N .. of , .1 I, Beverly A. Jasinski, Rochester Hills City Clerk, do hereby certify that the foregoing is a complete and true copy of a Resolution ; the original of which is on file in my office, adopted by the Rochester Hills City Council at a Regular Rochester Hills City Council Meeting held thereof on June 5, 2002. iSeverly AlJasinsW Aug. 8. 2002, 2:05PM - -0CDC No.2702 , P. 2/8 CONSTRUCTION ADMINISTRATION AGREEMENT This Agreement is made on , 2002, between the COUNTY OF OAKLAND ("County"), a Michigan municipal and constitutional corporation, by and through the Oakland County Building Authority, a statutory entity, and the CITY OF ROCHESTER HILLS ("City"), a Michigan municipal corporation. WHEREAS, the County and the City have determined that it is to their mutual benefit to cooperate and locate, construct and operate the County's new 52-3 District Court facility and the City's new police substation, and their related functions and facilities, on land owned by the County in the City of Rochester Hills WHEREAS, contemporaneous with this Agreement, the County and City will enter into a Sublease for the premises on which the proposed City's police substation will be constructed, and for the occupation of the police substation by the City until a certain bond issue is retired. WHEREAS, to take advantage of the favorable financing, economies of scale and other mutual benefits, the County and the City desire to coordinate and combine the constriction of the courthouse and police substation into a single project (hereinafter the "Project") that will be overseen and administered by County. This Agreement is intended to set forth and govern the relationship between the County and the City relative to the oversight and administration of the police substation portion of the Project. WHEREAS, the County has contracted with an architect and construction manager to prepare plans, specifications and bid documents, and to award and administer a construction contacts, relative to the Project. THEREFORE, the County and the City agree: L The County will engage with the architectural firm of French Associates, Inc., of Rochester, Michigan, and the construction management firm of George W. Auch Company, of Pontiac, Michigan, to prepare plans, specifications and bid documents for the Project consisting of a new 52-3 District Court and a new City police substation, and to award and administer a construction contracts for such Project to the lowest responsible bidders. The City will be allowed to have input and review relative to the contents of the progam requirements, plans, specifications and bid documents relating to the police sub'station portion of the Project All such review and input shall be done in a timely manner so as not to delay or otherwise hinder the Project schedule. 2_ The City will designate one or more City representatives, who shall be invited and allowed to participate in meetings and conferences relating to the development, design and administration of the police portion of the Project. Failure on the part of the City's representative to attend any scheduled meeting, for which notice was given, shall neither be cause to delay the Project schedule, nor to require an additional meeting. 3. Before the Construction Manager goes out for bids for the construction of the project, the City must review and approve the final design and cost estimates for the police substation portion of the project. All such review and approval shall be done in a timely manner Sitga!,:rincaript- CA4 /'Le rq re? .zc% :171 C17 Pat Somerville, Mayor Beverly JaiinslA, Clerk By: By Aug.,8. 200,2 2:05P - OCDC ". '6 No.3702, P. 3/8 A t so as not to delay or otherwise hinder the Project schedule. Any cost increases incurred because of the City's failure to be timely will be born by the City 4. After the police station portion of the project has been bid, but before any bids are accepted or any construction contracts are awarded, the City shall be allowed to review and provide input to the County relative to the bids. All such review and input shall be done in a timely manner so as not to delay or otherwise hinder the Project schedule,. Any cost increases incurred because of the City's failure to be timely will be born by the City„ 5. Except as otherwise set forth herein, the County shall be responsible for, and have control over, the development, oversight and administration of the overall project. 6. Notwithstanding the foregoing, if the County encounters unanticipated conditions that may result in costs that exceed the project budget (Control Estimate) for the police station portion of the Project, the County shall promptly notify the City and the affected work shall not proceed until further written instructions are received from the City. Any additional .costs incurred because of this type of work stoppage are to be born by the City. If the City issues written instructions abandoning the police station portion of the Project, the City will be responsible for all costs associated with the police station portion of the Project, including the costs of abandoning the project, which costs may include accrued interest on the bonds issued to finance the police station portion of the Project. The County shall promptly notify the City if the County encounters unanticipated conditions that may result in a significant change of scope of the police station portion of the Project. Pursuant to Paragraphs one through four of this agreement, the City will have input into any Project scope revisions to the police station portion of the Project necessitated by such conditions. Any additional costs incurred because of this type of work stoppage are to be born by the City. lithe City issues written instructions abandoning the police station portion of the Project, then the City will be responsible for all costs associated with the police station portion of the Project, including the costs of abandoning the project, which costs may included accrued interest on the bonds issued to finance the police station portion of the Project. 6. With respect to other change orders that will not sipificantly change the cost, scope or estimated date of substantial completion of the police substation portion of the project, the City shall have a representative available who shall have authority to approve change orders in the field. This representative must be available during .all times of construction in order that the project not be delayed. Failure on the part of the City's representative to be av,ailable, shall not be cause to delay the Project schedule, and the County will proceed as if approval had been given by the City's representative. Any cost increases incurred because of the City's failure to be timely, will be born by the City. Witless: CITY OF ROCEES'TER HILLS By: By MIOIMMnIn•nn•n•••••n•nnn•n•••n•n•• Chairman, Board of Comraissioners Aug. 8. 2002' 2:06PM •--.0C0C „ • No.3702 'A P. 4/i Witmcss: COUNTY OF OAKLAND County Clerk STATE OF MICRIGAN ) COUNTY OF OAKLAND ) On this j/Iti day of by Pat Somerville and Beverly Jakgiski, vinlio are the Mayor and the Clerk of the City of Rochester Eills, a Michigan municipal corporaton, on behalf of said City ,2002, the foregoing instrument was acknowledged before me Jam 00241 Oatdand County, MI My Col EVircli August JO 20.-1 Noe* Public, Oakland County, Michigan My commission expires; t j6.6.0e STATE OF MICEIIG.AN ) COUNTY OF OAKLAND ) On this day of 2002, the foregoing instrument was acknowledged before me by and , Who are the Chairman and the County Clerk of the County of Oakland, a Michigan municipal and constitutional corporation, on behalf of said County Notary Public, Oakland County, Michigan My commission expires: 3 01/24/02 SUBLEASE THIS SUBLEASE made as of 605T zz , 2002 by and between the COUNTY OF OAKLAND, a county in the State of Michigan (the "County"), and the CITY OF ROCHESTER HILLS (the "City"), a home rule city organized and existing under and pursuant to the provisions of Act No. 279, Public Acts of Michigan of 1909, as amended ("Act 279"), and WI TNESSETH : WHEREAS, the Oakland County Building Authority (the "Authority") has been incorporated by the County for the purpose of acquiring, furnishing, equipping, owning, improving, enlarging, operating and maintaining a building or buildings, automobile parking lots or structures, recreational facilities and stadiums, and the necessary site or sites therefor, for the use of the County; and WHEREAS, the Authority intends to construct and equip a Project on the premises described in APPENDIX A, a portion of which is to be subleased to the City (hereinafter referred to as the police substation portion), and the County and the Authority have entered into a certain Full Faith and Credit General Obligation Lease Contract (the "County Lease") pursuant to which the Project is being constructed by the Authority for the County; and WHEREAS, the County desires to undertake a project consisting of land and the construction and equipping of a building and related improvements on said land, as more fully described in APPENDIX A to this Sublease (the "Project"), and it is proposed that the Authority undertake the Project; and WHEREAS, the County wishes to sublease a portion of the Project to the City pursuant to the terms of this Sublease; THEREFORE, IN CONSIDERATION OF THE MUTUAL UNDERTAKINGS AND AGREEMENTS SET FORTH BELOW, IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES TO THIS SUBLEASE AS FOLLOWS: 1. Authorization and Issuance of Bonds. The County intends to cause the Authority to issue its building authority bonds in the aggregate principal of not to exceed $ 5,200,000.00(the "Bonds") for the purpose of defraying part or all of the cost of the Project. The Bonds are to be dated April 1, 2002 or the first day of any later month in 2002 and bear interest at a rate that will result in a net interest cost of not to exceed 8% per annum. Interest shall be payable semi-annually on and shall begin as specified in the Bond Resolution until maturity of the bonds and shall mature in accordance with the Debt Retirement Schedule set forth on APPENDIX B to this Sublease. Each date on which any payment of principal of and/or interest on any Bond is due is referred to herein as a "Bond Payment Date." The Bonds may be payable on the first day of a different month if necessary to match rental income paid to the County. The County and the City recognize and acknowledge that (a) such Debt Retirement Schedule is based upon an assumed interest rate and date of issuance of the Bonds and assumed Bond Payment Dates, all as set forth in APPENDIX B, (b) the Bond Payment Dates will be specified in the Bond Resolution, (c) the date and amount of each payment of cash rental required under this Sublease will be determined (subject to the limitations expressed in the preceding paragraph of this Section) when the Bond Resolution is adopted by the Authority and the Bonds are sold, by application of the rate or rates of interest (that will result in a net interest cost not exceeding 8% annum) actually borne by the Bonds. After approval by the County of construction bids, the Bonds shall be sold subject to redemption prior to maturity at the option of the Authority and the City with the redemption premiums and upon such terms as are set forth in APPENDIX C attached hereto. The Authority agrees that upon request of the City it shall redeem the Bonds; provided the City has or will deposit sufficient money to permit such redemption with the Authority prior to calling the bonds. In the event that for any reason after the date upon which this Sublease is executed, but before the Bonds have been issued, it appears to the County and the City that the part of the Project to be paid for by Bond proceeds can be constructed for less than $ 5,200,000.00,or The City shall be able to make payments in advance on the cash rental payments payable pursuant to this Sublease, the County, at the direction of the City, shall cause the Authority to reduce the amount of bonds to be issued in multiples of $5,000 and reduce the annual maturities or the years of maturities as the County shall direct. 2. Completion of Project. The Authority will commence the Project as follows: (1) the plans, cost estimate and estimated period of usefulness for the Project, all must be filed with the County Clerk and the City, (2) the City must approve the plans and cost estimate for the police substation portion of the project, and (3) the Authority will obtain construction bids on the Project, after which subject to approval from the City, the Authority will approve the award to the lowest responsible bidder. The Project shall be implemented in substantial accordance with such plans which shall be incorporated as part of (but not attached to) this Sublease. No major changes in such plans shall be made without the written approval of both the County and the City. 3. Increased Project Costs. In the event that it shall appear, upon taking the necessary bids for the acquisition of the Project and after issuance of the Bonds, that the Project cannot be completed at the estimated cost, the County shall immediately so notify the City. The City may elect to pay the increased cost in 2 cash to the Authority in which event the amount of such cash payment shall be deposited in the acquisition fund for the Project and the Authority shall proceed to acquire and complete the Project. 4. Insurance Requirements. The County shall cause the Authority to require the contractor or contractors for the Project to furnish all necessary bonds guaranteeing performance and all labor and material bonds and all owner's protective, workers' compensation and liability insurance required for the protection of the Authority, the County, and the City. Such bonds and insurance, and the amounts thereof, shall be subject to approval of the County and the City. The County shall also cause the Authority to require a sufficient fidelity bond from any person handling funds of the Authority. 5. Sublease Term; Possession. (a) The County does hereby sublease a portion of the Project to the City for a term commencing on the effective date of this Sublease (determined as provided in paragraph 21) for 20 years after completion of the Project. Possession of the Project, subject to the sublease, shall vest in the City upon the execution of the Sublease and completion of the Project. (b) Upon retirement of the Bonds, the County agrees to convey the Project to the City. (c) The parties contemplate and agree that prior to or simultaneous with the parties' entry into this Sublease, the County shall apply for and the City shall approve a land division to split the police substation portion of the land from the overall parcel of land owned by the County. 6. Rental. The City hereby agrees during the term of this Sublease or any renewal hereof to pay to the County as rent for the Project such periodic amounts as shall be sufficient to enable the County to meet its payments to the Authority on the Project to pay the principal of and interest on the Bonds as such principal and interest shall become due, whether at maturity or by redemption. During the term of the Sublease or any extensions thereof, the City shall pay to the County, at least 15 days before each Bond Payment Date, an amount sufficient to pay the principal and/or interest due on the Bonds on such Bond Payment Date. The City hereby agrees to pay from its general fund, or such other fund(s) as the City may designate, the rent payments when due. The obligation of the City to make such rent payments shall not be subject to any set-off by the City nor shall there be any abatement of the rent payments for any cause, including, but not limited to, casualty that results in the Project being untenantable. 7. Expenses of Issuing and Payment of Bonds. The County shall cause the Authority to pay from the proceeds of the sale of the Bonds all expenses incurred with respect to the issuance of the Bonds. The City agrees to pay to the County, in addition to the rent provided for in Section 6, all expenses incurred with respect to the issuance and payment of the Bonds, to the extent not so paid from the proceeds from the sale of the Bonds. The obligation of the City to make such payments shall be a general obligation of the City. 3 8. Maintenance and Repairs. The City shall, at its own expense, operate and maintain the Project and shall keep the same in good condition and repair. Operation and maintenance shall include (but not be limited to) the providing of all personnel, equipment and facilities, all light, power, heat, water, sewerage, drainage and other utilities, and all properties and services of whatever nature, as shall be necessary or expedient in the efficient and lawful operation and maintenance of the Project. Premiums for insurance required to be carried upon or with respect to the Project or the use thereof and taxes levied upon either party hereto on account of the ownership or use of the Project, or on account of rentals or income from the Project, shall likewise be deemed operation and maintenance expenses. The obligation of the City to pay all costs and expenses of the operation and maintenance of the Project shall be a general obligation of the City. 9. Property Insurance and Insurance Proceeds; Builder's Risk Insurance (a) The City shall provide, at its own expense, fire and extended coverage insurance in an amount which is at least equal to the amount of Bonds outstanding from time to time or to the amount of the full replacement cost of the Project if that amount be less than the amount of Bonds outstanding. Such insurance shall be payable to the City, the County and the Authority as their interests may appear and shall be made effective from the date of commencing construction of the Project. In the event of the partial or total destruction of the Project during or after construction, or if the Project is for any reason made unusable, the cash rental payments provided in Section 6 shall continue unabated. The City shall have the option to use the proceeds of insurance, in the event of loss or damage to the Project, for the repair or restoration of the Project. If the City shall determine not to use the proceeds of insurance for the repair or restoration of the Project, the amount of such insurance proceeds shall be paid to the County and by it paid to the Authority which shall deposit the same in the bond and interest redemption fund, and the City shall receive appropriate credits on future cash rental payments due under this Lease. Any insurance proceeds in excess of the amount necessary to retire the Bonds in full shall be retained by the City. (b) The County shall cause the Authority to provide for Builder's Risk Insurance during construction of the Project, the cost of which shall be included in the Project costs. 10. Liability Insurance. The City shall provide and maintain during the term of this Lease adequate liability insurance protecting the City, the County and the Authority against loss on account of damage or injury to persons or property, imposed by reason of the ownership, possession, use, operation, maintenance or repair of the Project and the site of the Project, or resulting from any acts of omission or commission on the part of the City, the County or the Authority or their respective officers, employees or agents in the connection with the Project and shall indemnify, hold harmless and defend the Authority, its officers, employees or agents against any and all claims for any such damage or injury. Such 4 insurance shall be made effective from the date construction of the Project commences. 11. No Unlawful Use Permitted. It is the present intent of the City to use the Project for a police substation; however, the Project may be used for any legitimate public purpose permitted by Public Act 280 of the Public Acts of 1987 and MCL 123.951 and shall not be used or permitted to be used in any unlawful manner. Notwithstanding the foregoing, if during the term of this Sublease, the City decides or forms the intent to cease using the Project for a police substation or to make a different use of the Project, the City shall notify the County, in writing, of such decision or intent, and the County shall have the right for a period of 120 days from the date of receipt of the City's notice to elect to purchase the City's right and interest in the Project upon terms, conditions or arrangements to be negotiated in good faith by the County and the City, but the price shall not exceed the amount the City has expended in retiring the bonds to the date of any purchase by the County. Upon such purchase by the County of the City's right and interest in the Project, the City shall have no further obligation to pay rent. Subsequent to the conveyance of the police substation portion of the Project to the City, and for as long as the district court occupies the County's portion of the site, the City agrees that any use of its portion of the Project other than for a police substation will be compatible and not inconsistent with the security needs and requirements of the district court. The City specifically agrees, that as long as the district court occupies the site, it will never use its portion of the site in such a manner as to generate dust, dirt, or noise above the levels ordinarily generated by typical office land uses. The City further agrees to the inclusion of these requirements as a deed restriction in the deed when the City's portion of the Project is conveyed to the City. 12. Indemnification by City. To the extent permitted by law, the City shall hold the County and Authority harmless and keep it fully indemnified at all times against any loss, injury or liability to any persons or property by reason of the acts or negligence of the City in the use, misuse or non-use of the Project or from any act or omission in, on or about the Project. The City shall, at its own expense, make any changes or alterations in, on or about the Project which may be required by any applicable statute, charter or governmental regulation or order and shall hold the County and the Authority harmless and free from all costs or damages with respect thereto. 13. Alterations of Project. Upon completion of the Project, the City may install or construct in or upon, or may remove from, the Project any equipment, fixtures or structures, and may make any alterations to or structural changes in, the Project. If the changes impact areas outside the City's part of the overall Project, the County shall approve the changes as well. 14. Right of Inspection. The County and Authority, through its officers, employees or agents, may enter upon the Project at any reasonable time after reasonable notice during the term of this Lease for the purpose of inspecting the Project and determining 5 whether the City is complying with the covenants, agreements, terms and conditions of this Lease. 15. Contractual Rights of Bondholders. Inasmuch as this Lease, and particularly the obligation of the City to make cash rental payments to the County, provides the security for payment of the principal of and interest on the Bonds, it is hereby declared that this Lease is made for the benefit of the holders from time to time of the Bonds as well as for the benefit of the parties and that such holders shall have contractual rights under this Lease. In the event of any default under this Lease on the part of the City, the County, the Authority and the holders of the Bonds shall have all rights and remedies provided by law. The parties further agree that they will not do, or permit to be done, any act, and that this Lease will not be amended in any manner, which would impair the security of the Bonds or the rights of the holders of the Bonds. An amendment of this Lease to authorize the issuance of additional Bonds and providing the payment of additional rent for the payment of such Bonds shall not be deemed to impair the security of the Bonds or the rights of the holders of the Bonds. 16. Appurtenant Facilities. The site on which this Project is to be located includes, or will include, roadways, walks, drives, parking areas and landscaping which are of benefit to and necessary to the full use and enjoyment of the Project, and it is hereby agreed that such appurtenant facilities will be maintained in good repair and condition by the City and available to the users and occupants of the Project. The appurtenant facilities shall be shown, described and depicted on a site plan to be attached hereto as ADDENDUM E. 17. Successors and Assigns. This Lease shall inure to the benefit of, and be binding upon, the respective parties hereto and their successors and assigns, provided, however, that no assignment shall be made in violation of the terms of this Lease nor shall any assignment be made by the City without the approval of the County or which would impair the security of the Bonds or the rights of the holders of the Bonds. 18. Abandonment of Project. In the event the Bonds to finance the Project cannot be or are not issued by the Authority on or before December 1, 2002, the Project shall be abandoned, the City shall pay from available funds the expenses of the Authority relating to the Project that have been incurred to the date of abandonment, and neither party shall have any further obligations under this Lease. 19. Consents, Notices, Etc. The right to give any consent, agreement or notice required or permitted in this Lease shall be vested, in the case of the County, in its Board of Commissioners, and in the case of the City, in its City Council. Any notice required or permitted to be given under this Lease shall be given by delivering the same, in the case of the County, to the County Clerk, and in the case of the City, to its City Clerk. 6 WITNESS: orie_ t/e b_ogt*f-tAca) and By Clerk COUNTF/ OAKLAND By: By: 1012p1Cotnty Clerk , 4",4t y 6124.zo1. Chairman Board of Commissioners Z-Z 1 ?XV_ 2002, the foregoing instrument was and 8f'k/wRia.rift.S,i,ae, who are the of Rochester Hills, a home ule city, on behalf of City 20. Changes in Law or Corporate Status. In the event there shall occur changes in the Constitution or statutes of the State of Michigan which shall affect the organization, territory, powers or corporate status of the City or the County, the terms and provisions of this Lease shall be unaffected thereby insofar as the obligation of the City to make the cash rental payments is concerned. The proceeds of any sale or other liquidation of any interest of the City in the Project are hereby impressed with a first and prior lien for payment of any outstanding Bonds or other obligations of the Authority incurred by reason of the Project or any additions or improvements thereto. 21. Effective Date of Lease. This Lease shall become effective on the date of execution. IN WITNESS WHEREOF, the CITY OF ROCHESTER HILLS as authorized by its City Council and the COUNTY OF OAKLAND, by its Board of Commissioners, have caused this Lease to be signed by their duly authorized officers, and their seals to be affixed hereto, all as of the day and year first above written. CITY OF OCHESTER KILLS BY: ayor STATE OF MICHIGAN COUNTY OF OAKLAND On this R',OL, day acknowledged before me by Mayor and the Clerk of the said City. Jean CI089 ; Notary Publir rninIty, MI My COM'' 7.,r+Plg Nota4yubilic A rVetal—x. County, M4.chigan My Commission Expires: g/Wp,M5- 7 Notafy/Publ Tanty, Michigan STATE OF MICHIGAN ) COUNTY OF OAKLAND ) On this day of , 2002, the foregoing instrument was acknowledged before me by and the Chairman and the County Clerk of the County of Oakland, a on behalf of said , who are My Commission Expires: MICHAEL D. RUGHSON NOTARY PUBLIC OAKLAND CO., MI MY COMMISSION EXPIRES May 5, 2004 8 APPENDIX A PROJECT DESCRIPTION [TO BE PROVIDED] 1 DESCRIPTION OF TEE PROJECT AND COST ESTIMATE Project Development: The construction of the Project shall include the following components and estimated construction and financing costs: Sheriff's Substation: A one story brick-face building with approximately 1 4,500 square .Jfet to House a Sheriff's Substation to serve the City of F,ochester Hills including architectural, equipment and contingency. Cost Estimates Construction, Architectural, Equipment, Cnrtirgpncy fl11Cfl & P.rric flLcrunt. $5,200,000 TOTAL $ $ APPENDIX B SCHEDULE OF PRINCIPAL AND INTEREST Due Amount Rate Interest 95 $ $ APPENDIX C REDEMPTION PROVISIONS 1 $6,130,000 OAKLAND COUNTY BUILDING AUTHORITY BONDS, SERIES 2002 SHERIFFS SUBSTATION 20 YEAR ESTIMATED DEBT SERVICE SCHEDULE Total Date Principal Coupon Interest Debt Service Annual Total 09/01/02 $106,155.21 $106,155.21 $106,155.21 03/01/03 127,386.25 127,386.25 09/01/03 $215,000.00 2.30% 127,386.25 342,386.25 469,772.50 03/01/04 124,913.75 124,913.75 09/01/04 220,000.00 2.65% 124,913.75 344,913.75 469,827.50 03/01/05 121,998.75 121,998.75 09/01/05 225,000.00 2.85% 121,998.75 346,998.75 468,997.50 03/01/06 118,792.50 118,792.50 09/01/06 230,000.00 3.10% 118,792.50 348,792.50 467,585.00 03/01/07 115,227.50 115,227.50 09/01/07 240,000.00 3.35% 115,227.50 355,227.50 470,455.00 03/01/08 111,207.50 111,207.50 09/01/08 250,000.00 3.60% 111,207.50 361,207.50 472,415.00 03/01/09 106,707.50 106,707.50 09/01/09 255,000.00 3.75% 106,707.50 361,707.50 468,415.00 03/01/10 101,926.25 101,926.25 09/01/10 265,000.00 3.85% 101,926.25 366,926.25 468,852.50 03/01/11 96,825.00 96,825.00 09/01/11 275,000.00 3.95% 96,825.00 371,825.00 468,650.00 03/01/12 91,393.75 91,393.75 09/01/12 285,000.00 4.05% 91,393.75 376,393.75 467,787.50 03/01/13 85,622.50 85,622.50 09/01/13 300,000.00 4.20% 85,622.50 385,622.50 471,245.00 03/01/14 79,322.50 79,322.50 09/01/14 310,000.00 4.30% 79,322.50 389,322.50 468,645.00 03/01/15 72,657.50 72,657.50 09/01/15 325,000.00 4.40% 72,657.50 397,657.50 470,315.00 03/01/16 65,507.50 65,507.50 09/01/16 340,000.00 4.55% 65,507.50 405,507.50 471,015.00 03/01/17 57,772.50 57,772.50 09/01/17 355,000.00 4.65% 57,772.50 412,772.50 470,545.00 03/01/18 49,518.75 49,518.75 09/01/18 370,000.00 4.75% 49,518.75 419,518.75 469,037.50 03/01/19 40,731.25 40,731.25 09/01/19 390,000.00 4.80% 40,731.25 430,731.25 471,462.50 03/01/20 31,371.25 31,371.25 09/01/20 405,000.00 4.85% 31,371.25 436,371.25 467,742.50 03/01/21 21,550.00 21,550.00 09/01/21 425,000.00 4.90% 21,550.00 446,550.00 468,100.00 03/01/22 11,137.50 11,137.50 09/01/22 450,000.00 4.95% 11,137.50 461,137.50 472,275.00 $6,130,000.00 $3,369,295.21 $9,499,295.21 $9,499,295.21 Interest Start Date (Dated Date): 4/1/02 $6,130,000 OAKLAND COUNTY BUILDING AUTHORITY BONDS, SERIES 2002 SHERIFFS' SUBSTATION 25 YEAR ESTIMATED DEBT SERVICE SCHEDULE Total Date Principal Coupon Interest Debt Service Annual Total 09/01/02 $112,408.33 $112,408.33 $112,408.33 03/01/03 134,890.00 134,890.00 09/01/03 $150,000.00 2.30% 134,890.00 284,890.00 419,780.00 03/01/04 133,165.00 133,165.00 09/01/04 155,000.00 2.65% 133,165.00 288,165.00 421,330.00 03/01/05 131,111.25 131,111.25 09/01/05 160,000.00 2.85% 131,111.25 291,111.25 422,222.50 03/01/06 128,831.25 128,831.25 09/01/06 160,000.00 3.10% 128,831.25 288,831.25 417,662.50 03/01/07 126,351.25 126,351.25 09/01/07 170,000.00 3.35% 126,351.25 296,351.25 422,702.50 03/01/08 123,503.75 123,503.75 09/01/08 175,000.00 3.60% 123,503.75 298,503.75 422,007.50 03/01/09 120,353.75 120,353.75 09/01/09 180,000.00 3.75% 120,353.75 300,353.75 420,707.50 03/01/10 116,978.75 116,978.75 09/01/10 185,000.00 3.85% 116,978.75 301,978.75 418,957.50 03/01/11 113,417.50 113,417.50 09/01/11 195,000.00 3.95% 113,417.50 308,417.50 421,835.00 03/01/12 109,566.25 109,566.25 09/01/12 200,000.00 4.05% 109,566.25 309,566.25 419,132.50 03/01/13 105,516.25 105,516.25 09/01/13 210,000.00 4.20% 105,516.25 315,516.25 421,032.50 03/01/14 101,106.25 101,106.25 09/01/14 220,000.00 4.30% 101,106.25 321,106.25 422,212.50 03/01/15 96,376.25 96,376.25 09/01/15 230,000.00 4.40% 96,376.25 326,376.25 422,752.50 03/01/16 91,316.25 91,316.25 09/01/16 240,000.00 4.55% 91,316.25 331,316.25 422,632.50 03/01/17 85,856.25 85,856.25 09/01/17 250,000.00 4.65% 85,856.25 335,856.25 421,712.50 03/01/18 80,043.75 80,043.75 09/01/18 260,000.00 4.75% 80,043.75 340,043.75 420,087.50 03/01/19 73,868.75 73,868.75 09/01/19 270,000.00 4.80% 73,868.75 343,868.75 417,737.50 03/01/20 67,388.75 67,388.75 09/01/20 285,000.00 4.85% 67,388.75 352,388.75 419,777.50 03/01/21 60,477.50 60,477.50 09/01/21 300,000.00 4.90% 60,477.50 360,477.50 420,955.00 03/01/22 53,127.50 53,127.50 09/01/22 315,000.00 4.95% 53,127.50 368,127.50 421,255.00 03/01/23 45,331.25 45,331.25 09/01/23 330,000.00 4.95% 45,331.25 375,331.25 420,662.50 03/01/24 37,163.75 37,163.75 09/01/24 345,000.00 4.95% 37,163.75 382,163.75 419,327.50 03/01/25 28,625.00 28,625.00 09/01/25 365,000.00 5.00% 28,625.00 393,625.00 422,250.00 03/01/26 19,500.00 19,500.00 09/01/26 380,000.00 5.00% 19,500.00 399,500.00 419,000.00 03/01/27 10,000.00 10,000.00 09/01/27 400,000.00 5.00% 10,000.00 410,000.00 420,000.00 $6,130,000.00 $4,500,140.83 Interest Start Date (Dated Date): 4/1/02 $10,630,140.83 s10.630,140.83 $6,130,000 OAKLAND COUNTY BUILDING AUTHORITY BONDS, SERIES 2002 - SHERIFF'S SUBSTATION 30 YEAR ESTIMATED DEBT SERVICE SCHEDULE Total Date Principal Coupon Interest Debt Service Annual Total 09/01/02 $116,865.63 $116,865.63 $116,865.63 03/01/03 140,238.75 140,238.75 09/01/03 $110,000.00 2.30% 140,238.75 250,238.75 390,477.50 03/01/04 138,973.75 138,973.75 09/01/04 110,000.00 2.65% 138,973.75 248,973.75 387,947.50 03/01/05 137,516.25 137,516.25 09/01/05 115,000.00 2.85% 137,516.25 252,516.25 390,032.50 03/01/06 135,877.50 135,877.50 09/01/06 120,000.00 3.10% 135,877.50 255,877.50 391,755.00 03/01/07 134,017.50 134,017.50 09/01/07 120,000.00 3.35% 134,017.50 254,017.50 388,035.00 03/01/08 132,007.50 132,007.50 09/01/08 125,000.00 3.60% 132,007.50 257,007.50 389,015.00 03/01/09 129,757.50 129,757.50 09/01/09 130,000.00 3.75% 129,757.50 259,757.50 389,515.00 03/01/10 127,320.00 127,320.00 09/01/10 135,000.00 3.85% 127,320.00 262,320.00 389,640.00 03/01/11 124,721.25 124,721.25 09/01/11 140,000.00 3.95% 124,721.25 264,721.25 389,442.50 03/01/12 121,956.25 121,956.25 09/01/12 145,000.00 4.05% 121,956.25 266,956.25 388,912.50 03/01/13 119,020.00' 119,020.00 09/01/13 150,000.00 4.20% 119,020.00 269,020.00 388,040.00 03/01/14 115,870.00 115,870.00 09/01/14 160,000.00 4.30% 115,870.00 275,870.00 391,740.00 03/01/15 112,430.00 112,430.00 09/01/15 165,000.00 4.40% 112,430.00 277,430.00 389,860.00 03/01/16 108,800.00 108,800.00 09/01/16 175,000.00 4.55% 108,800.00 283,800.00 392,600.00 03/01/17 104,818.75 104,818.75 09/01/17 180,000.00 4.65% 104,818.75 284,818.75 389,637.50 03/01/18 100,633.75 100,633.75 09/01/18 190,000.00 4.75% 100,633.75 290,633.75 391,267.50 03/01/19 96,121.25 96,121.25 09/01/19 200,000.00 4.80% 96,121.25 296,121.25 392,242.50 03/01/20 91,321.25 91,321.25 09/01/20 205,000.00 4.85% 91,321.25 296,321.25 387,642.50 03/01/21 86,350.00 86,350.00 09/01/21 220,000.00 4.90% 86,350.00 306,350.00 392,700.00 03/01/22 80,960.00 80,960.00 09/01/22 230,000.00 4.95% 80,960.00 310,960.00 391,920.00 03/01/23 75,267.50 75,267.50 09/01/23 240,000.00 4.95% 75,267.50 315,267.50 390,535.00 03/01/24 69,327.50 69,327.50 09/01/24 250,000.00 4.95% 69,327.50 319,327.50 388,655.00 03/01/25 63,140.00 63,140.00 09/01/25 265,000.00 5.00% 63,140.00 328,140.00 391,280.00 03/01/26 56,515.00 56,515.00 09/01/26 275,000.00 5.00% 56,515.00 331,515.00 388,030.00 03/01/27 49,640.00 49,640.00 09/01/27 290,000.00 5.00% 49,640.00 339,640.00 389,280.00 03/01/28 42,390.00 42,390.00 09/01/28 305,000.00 5.00% 42,390.00 347,390.00 389,780.00 03/01/29 34,765.00 34,765.00 09/01/29 320,000.00 5.00% 34,765.00 354,765.00 389,530.00 03/01/30 26,765.00 26,765.00 09/01/30 335,000.00 5.05% 26,765.00 361,765.00 388,530.00 03/01/31 18,306.25 18,306.25 09/01/31 355,000.00 5.05% 18,306.25 373,306.25 391,612.50 03/01/32 9,342.50 9,342.50 09/01/32 370,000.00 5.05% 9,342.50 379,342.50 388,685.00 $6,130,000.00 $5,685,205.63 $11,815205.63 $11.8152115.63 Interest Start Date (Dated Date): 4/1/02 1 APPENDIX D CITY ORDINANCES N:\TEMPFILE\lnumber\2001\2001-0400 thru 2001-0499\2001-0494 OCSD Substation-Rochester Hills,52-3 Dist Ct Contract\Sublease (revised 01.24.02)Final.doc 2 CONSTRUCTION ADMINISTRATION AGREEMENT This Agreement is made on AV6 Off' 7-7- , 2002, between the COUNTY OF OAKLAND ("County"), a Michigan municipal and constitutional corporation, by and through the Oakland County Building Authority, a statutory entity, and the CITY OF ROCHESTER HILLS ("City"), a Michigan municipal corporation. WHEREAS, the County and the City have determined that it is to their mutual benefit to cooperate and locate, construct and operate the County's new 52-3 District Court facility and the City's new police substation, and their related functions and facilities, on land owned by the County in the City of Rochester Hills. WHEREAS, contemporaneous with this Agreement, the County and City will enter into a Sublease for the premises on which the proposed City's police substation will be constructed, and for the occupation of the police substation by the City until a certain bond issue is retired. WHEREAS, to take advantage of the favorable financing, economies of scale and other mutual benefits, the County and the City desire to coordinate and combine the construction of the courthouse and police substation into a single project (hereinafter the "Project") that will be overseen and administered by County. This Agreement is intended to set forth and govern the relationship between the County and the City relative to the oversight and administration of the police substation portion of the Project. WHEREAS, the County has contracted with an architect and construction manager to prepare plans, specifications and bid documents, and to award and administer a construction contracts, relative to the Project. THEREFORE, the County and the City agree: 1. The County will engage with the architectural firm of French Associates, Inc., of Rochester, Michigan, and the construction management firm of George W. Auch Company, of Pontiac, Michigan, to prepare plans, specifications and bid documents for the Project consisting of a new 52-3 District Court and a new City police substation, and to award and administer a construction contracts for such Project to the lowest responsible bidders. The City will be allowed to have input and review relative to the contents of the program requirements, plans, specifications and bid documents relating to the police substation portion of the Project. All such review and input shall be done in a timely manner so as not to delay or otherwise hinder the Project schedule. 2. The City will designate one or more City representatives, who shall be invited and allowed to participate in meetings and conferences relating to the development, design and administration of the police portion of the Project. Failure on the part of the City's representative to attend any scheduled meeting, for which notice was given, shall neither be cause to delay the Project schedule, nor to require an additional meeting. 3. Before the Construction Manager goes out for bids for the construction of the project, the City must review and approve the final design and cost estimates for the police substation portion of the project. All such review and approval shall be done in a timely manner Pat Somerville, Mayor Beverly J$insIti, Clerk By: By: 2 so as not to delay or otherwise hinder the Project schedule. Any cost increases incurred because of the City's failure to be timely will be born by the City. 4. After the police station portion of the project has been bid, but before any bids are accepted or any construction contracts are awarded, the City shall be allowed to review and provide input to the County relative to the bids. All such review and input shall be done in a timely manner so as not to delay or otherwise hinder the Project schedule. Any cost increases incurred because of the City's failure to be timely will be born by the City. 5. Except as otherwise set forth herein, the County shall be responsible for, and have control over, the development, oversight and administration of the overall project. 6. Notwithstanding the foregoing, if the County encounters unanticipated conditions that may result in costs that exceed the project budget (Control Estimate) for the police station portion of the Project, the County shall promptly notify the City and the affected work shall not proceed until further written instructions are received from the City. Any additional costs incurred because of this type of work stoppage are to be born by the City. If the City issues written instructions abandoning the police station portion of the Project, the City will be responsible for all costs associated with the police station portion of the Project, including the costs of abandoning the project, which costs may include accrued interest on the bonds issued to finance the police station portion of the Project. The County shall promptly notify the City if the County encounters unanticipated conditions that may result in a significant change of scope of the police station portion of the Project. Pursuant to Paragraphs one through four of this agreement, the City will have input into any Project scope revisions to the police station portion of the Project necessitated by such conditions. Any additional costs incurred because of this type of work stoppage are to be born by the City. If the City issues written instructions abandoning the police station portion of the Project, then the City will be responsible for all costs associated with the police station portion of the Project, including the costs of abandoning the project, which costs may included accrued interest on the bonds issued to finance the police station portion of the Project. 6. With respect to other change orders that will not significantly change the cost, scope or estimated date of substantial completion of the police substation portion of the project, the City shall have a representative available who shall have authority to approve change orders in the field. This representative must be available during all times of construction in order that the project not be delayed. Failure on the part of the City's representative to be available, shall not be cause to delay the Project schedule, and the County will proceed as if approval had been given by the City's representative. Any cost increases incurred because of the City's failure to be timely, will be born by the City. 7 Witness: shve., "Thorp4.- e174 7te /--4 1/e z c\ CITY OF ROCHESTER HILLS By: 4 AB' Countelerk e62,4.(fg-ey, Witness: cw) LKITN CORISlTY OF OAK ftV6091 22-, Z00 2_ Chairman, Board of Commi On this jj4a day of by Pat Somerville and Beverly Ja4ski, wt0o municipal corporaton, on behalf of said City. No4 Public, Oakland Courfty, Michigan My commission expires: STATE OF MICHIGAN ) COUNTY OF OAKLAND ) , 2002, the foregoing instrument was acknowledged before me are the Mayor and the Clerk of the City of Rochester Hills, a Michigan Nof-- My Co, Jean C/oSO Oakland County, MI L.Apire Ru6U6i 2c.`ZIti STATE OF MICHIGAN ) COUNTY OF OAKLAND ) On this day of , 2002, the foregoing instrument was acknowledged before me by and , who are the Chairman and the County Clerk of the County of Oakland, a Michigan municipal and constitutional corporation, on behalf of said County. Notary'Public, Oakland Coufatf, Michigan My commission expires: MICHAS D. MONSON NOTARY puauc OAKLAND C,O., MI 1011ASSION EXPIRES May 5, 2004 3 August 22, 2002 REPORT (MISC. #02198) BY: PLANNING & BUILDING COMMITTEE, CHARLES PALMER, CHAIRPERSON IN RE: DEPARTMENT OF FACILITIES MANAGEMENT - 52-3 DISTRICT COURT/SHERIFF'S SUBSTATION PROJECT - SHERIFF'S SUBSTATION SUBLEASE AGREEMENT WITH CITY OF ROCHESTER HILLS To the Oakland County Finance Committee Chairperson, Ladies and Gentlemen: The Planning & Building Committee, having reviewed the Sublease and Construction Administration Agreement for the above referenced project on August 13, 2002, reports with the recommendation these agreements be approved: 1. Sublease between the County and the City of Rochester Hills. 2. Construction Administration Agreement between the County and the City of Rochester Hills. Chairperson, on behalf of the Planning & Building Committee, I move the acceptance of the foregoing report. PLANNING & BUILDING COMMITTEE Planning & Building Committee Vote: Motion carried on a unanimous roll call vote. G. William Caddell, County Cldrk Resolution #02198 August 22, 2002 Moved by Douglas supported by Garfield the resolution be adopted. Moved by Douglas supported by Palmer the Planning and Building Committee Report be accepted. A sufficient majority having voted therefore, the report was accepted. Vote on resolution: AYES: Brian, Buckley, Causey-Mitchell, Coleman, Crawford, Dingeldey, Douglas, Galloway, Garfield, Gregory, Law, McPherson, Melton, Moffitt, Moss, Obrecht, Palmer, Patterson, Sever, Suarez, Taub, Webster, Amos, Appel. (24) NAYS: None. (0) A sufficient majority having voted therefore, the resolution was adopted. FOREGOING FIS0)..UT( O Date STATE OF MICHIGAN) COUNTY OF OAKLAND) I, G. William Caddell, 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 August 22, 2002, with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 22nd day of August, 2002.