HomeMy WebLinkAboutResolutions - 2020.10.21 - 33753MISCELLANEOUS RESOLUTION _ #20444 October 21, 2020
BY: Commissioner Helaine Zack, Chairperson, Finance and Infrastructure Committee
IN RE: WATER RESOURCES COMMISSIONER — CITY OF BLOOMFIELD HILLS WATER SYSTEM
OPERATION AND MAINTENANCE AGREEMENT
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the City of Bloomfield Hills has a water system currently operated and maintained through
Oakland County by the office of the Water Resources Commissioner on a revenue -neutral basis; and
WHEREAS the City of Bloomfield Hills desires to engage the County to continue to operate and maintain
its water system on a revenue -neutral basis pursuant to the terms of an operation and maintenance
agreement; and
WHEREAS Oakland County, by and through the office of the Water Resources Commissioner, has qualified
personnel capable of providing water operations and maintenance services; and
WHEREAS the County's cost and overhead incurred for the services performed shall be compensated from
the revenues of the water system; and
WHEREAS the County will assist the City in the operations and maintenance of the water system on a
revenue -neutral basis and the County's General Fund will not be charged with or be liable for the cost of
operating, maintaining, repairing, replacing, or administering the water system; and
WHEREAS the agreement shall be effective for an initial term of ten (10) years with a ten (10) year renewal
option; and
WHEREAS the agreement includes a termination notice of 180 days for any reason and without penalty;
and
WHEREAS the terms of an agreement for the operation and maintenance of the City of Bloomfield Hills
water system by Oakland County through the office of the Water Resources Commissioner have been
negotiated, set forth in writing, and approved by resolution of the City of Bloomfield Hills' Council on March
11,2020.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby approves
the City of Bloomfield Hills Water System Operation and Maintenance Agreement.
BE IT FURTHER RESOLVED the agreement shall be effective for an initial term of ten (10) years with a
ten (10) year renewal option.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners hereby directs its
Chairperson or designee to execute the attached City of Bloomfield Hills' Water System Operation and
Maintenance Agreement.
BE IT FURTHER RESOLVED that no budget amendment is required.
Chairperson, on behalf of the Finance and Infrastructure Committee, I move the adoption of the foregoing
resolution.
Commissioner Helaine Zack istrict #18
Chairperson, Finance and Infrastructure
Committee
FINANCE AND INFRASTRUCTURE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote.
CITY OF BLOOMFIELD HILLS
WATER SYSTEM
OPERATION AND MAINTENANCE AGREEMENT
THIS AGREEMENT is made and entered into as of the _ day of /Vlle� *
2020, by and between the COUNTY OF OAKLAND, a Michigan constitutional corporation
("County"), whose address is 1200 N. Telegraph, Pontiac, Michigan, 48341 and the CITY OF
BLOOMFIELD HILLS, a Michigan municipal corporation, whose address is 45 East Long Lake
Road, Bloomfield Hills, Michigan 48304-2322 ("City"). In this Agreement, either the County
and/or the City may also be referred to individually as a "Party" or jointly as 'Parties."
Recitals:
WHEREAS, the City owns a water supply system, which includes water mains and
related appurtenances which shall collectively be known as the City of Bloomfield Hills Water
Supply System, as set forth in the attached Exhibit A and as it may be expanded or altered
from time to time (the "System"); and,
WHEREAS, the City desires to engage the County to operate and maintain the System
on behalf of the City on a non-profit basis and in accordance with the terms and conditions set
forth for in this Agreement; and,
WHEREAS, the County, by and through the Office of the Oakland County Water
Resources Commissioner ("WRC"), has qualified personnel capable of providing water
operations and maintenance services; and,
WHEREAS, the Michigan Constitution of 1963, Article 7, § 28, and the Urban
Cooperation Act of 1967, being MCL 124.501, et seq. (the "Act 7"), authorizes a political
subdivision to exercise jointly with any other political subdivision any power, privilege or
authority which such political subdivisions share in common with which each might exercise
separately; and,
WHEREAS, pursuant to resolutions adopted by their respective legislative bodies, the
Parties each have been authorized to execute this Agreement for the Services according to the
terms and conditions of this Agreement.
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NOW, THEREFORE, in consideration of these premises and the mutual promises,
representations, and agreements set forth in this Agreement, and for other good and valuable
consideration, the receipt and adequacy of which is hereby acknowledged, the County and the
City mutually agree as follows:
Article I. Statement of Authority and Purpose.
1.1 Authority. Pursuant to Act 7 of 1967, and any other applicable laws of the State of
Michigan, the County and the City enter into this Agreement to establish terms and
conditions for the operation and maintenance of the System. Each Party agrees to take
all actions reasonably necessary to effectuate the objectives set forth in this Agreement.
1.2 Purpose. The purpose of this Agreement is to authorize the County to operate and
maintain the System on behalf of the City on a non-profit basis and in accordance with
the Services detailed in Exhibit B attached hereto. In exchange for the Services, the
County shall be reimbursed for its Costs and Overhead from the Revenue collected and
deposited in the System Enterprise Fund maintained by the County on behalf of and for
the benefit of the City.
Article II. Definitions.
In addition to the above defined terms (i.e. "County", "City", VRC", "Party" and "Parties") and
any terms defined in other sections of this Agreement (e.g., "Services"), the Parties agree that
the following words and expressions, whether used in the singular or plural, possessive or non -
possessive, and/or either within or without quotation marks, shall be defined and interpreted as
follows:
2.1 "Agreement" shall mean each of the various provisions and parts of this document,
including all attached Exhibits and any amendments thereto, as may be executed and
approved by the Parties.
2.2 "Cost(s)" shall be defined as the labor, including statutory and customary fringe benefits,
overtime, material and supplies, power and utility services, buildinglfacility and
vehicle/equipment rental and subcontractor services devoted to the Services as defined
in this Agreement.
2.3 "Contractor' shall be defined as an independent contractor engaged by the County to
perform the Services and responsibilities necessary to carry out the objectives under this
Agreement.
2.4 "County Agent" or "County Agents" shall be defined as any and all Oakland County
elected officials, appointed officials, directors, board members, commissioners,
authorities, other boards, committees, commissions, employees, managers,
departments, divisions, volunteers, agents, representatives, and/or any such persons'
successors or predecessors (whether such persons act or acted in their personal
representative or official capacities), and/or any persons acting by, through, under, or in
concert with any of them, excluding the City and/or any City Agents, as defined herein.
2.5 "WRC Personnel" as used in this Agreement shall be defined as a specific subset of,
and included as part of the larger group of County Agents as defined above, and
assigned by the County to work in the Office of the Oakland County Water Resources
Commissioner as shown in the County budget and/or personnel records of the County.
2.6 "City Agent" or "City Agents", shall be defined to include any and all City officers, elected
officials, appointed officials, directors, board members, council members, authorities,
boards, committees, commissions, employees, managers, departments, divisions,
volunteers, agents, representatives, consultants, and/or any such persons' successors
or predecessors (whether such persons act or acted in their personal, representative, or
official capacities), and/or any persons acting by, through, under, or in concert with any
of them, excluding the County and/or any County Agents, as defined herein,
2.7 "Claim(s)" shall be defined to include any and all alleged claims, complaints, demands
for relief or damages, lawsuits, and causes of action, whether in law or equity, tort,
contract, or otherwise, by third parties, arising out of the ownership, operation,
maintenance of the System, but does not include claims between the Parties.
2.8 "Overhead" shall be defined to include the following: all allocation of the labor cost,
including statutory and customary fringe benefits, of personnel responsible for
administering this contract or supervising the work performed in connection with this
Agreement; an allocation of expenses of the WRC; and an allocation of indirect costs of
Oakland County charged to the WRC for the use of buildings and facilities and for
support services, such as (but not limited to) legal, personnel, accounting, computer
support, and insurance/risk management. The Overhead expense allocations and
methodology are set forth in Exhibit C.
2.9 "Rates and Charges" shall be defined as the charges and other fees, such as late fees,
connection charges, capital charges, meter charges, assessed against and paid by the
users of the System for the services provided by the City, including without limitation the
Services provided pursuant to this Agreement, as periodically established by oridance
and/or resolution of the City.
2.10 "Revenue" shall be defined as the funds derived from the Rates and Charges assessed
against and paid by customers or users of the System, and other sources of revenue,
such as grants.
2.11 "State" shall be defined as the "State of Michigan," a sovereign governmental entity of
the United States, and shall also include within its definition any and all departments or
agencies of State government.
2.12 "System Enterprise Fund" shall be defined as the account for the System established
and maintained by the County on behalf of the City.
Article III. County Responsibilities; WRC Operation and Maintenance Services.
3.1 Services. The County agrees to perform the operation and maintenance services for the
System (all of the following being referred to in this Agreement as the "WRC Services" or
"Services") as set forth in Exhibit B attached to this Agreement.
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(a) The Services to be provided by the County to the City under this Agreement shall
be performed by the County's "WRC Personnel" and/or Contractor. The County
will maintain and designate a sufficient number of County Agents and WRC
Personnel, having sufficient qualifications, in order to carry out and provide the
Services under and in accordance with this Agreement. However, the County will
give due consideration to any input received from the City concerning the number
and charges of Contractors and WRC Personnel assigned to provide Services for
the System.
(b) The County shall be responsible for furnishing all WRC Personnel and
Contractors with all job instructions, job descriptions and job specifications and
shall in all circumstances control, supervise, train or direct all WRC Personnel in
the performance of any and all Services under this Agreement. The County shall
remain the sole and exclusive employer of all County Agents and WRC
Personnel.
(c) This Agreement is neither intended, nor shall it be interpreted, to create, change,
or otherwise affect or control, in any manner any employment right, privilege,
benefit, or any other term or condition of employment, of any kind or nature
whatsoever, in, upon, or for any County Agent or WRC Personnel. Except as
expressly provided for under the terms of this Agreement and/or laws of this
State, no County Agent or WRC Personnel, while such person is currently and/or
actively employed by the County shall be employed or utilized to perform any
other services by or for the City during the term of this Agreement. This section
shall not prohibit the City from employing any person who was a former County
Agent but is no longer employed in that capacity by the County.
3.2 Svstem Caaital Reolacement Expenditures. Except in cases of emergencies, the County
shall not expend funds from the System Enterprise Fund for capital replacement or
improvement projects in excess of $25,000 without prior approval from the City.
3.3 Establish Reserves. The County may establish a reserve for system emergencies,
system replacement, or other purposes with the consent of the City.
3.4 Independent Contractor. At all times and for all purposes under the terms of this
Agreement, the County and/or any and all County Agents' legal status and relationship
to the City shall be that of an Independent Contractor.
3.5 Insurance - County The County will endeavor to obtain and to maintain for the duration
of this Agreement the following insurance coverages with insurance companies licensed
to do business in the State of Michigan, but only if such insurance coverage is
commercially available. It is understood and agreed, that all costs, including the
premium, self -insured retention or deductible, shall be included as a System Cost:
(a) Professional Liability or Errors and Omissions with limits of $10,000,000 per
occurrence and $15,000,000 aggregate.
(b) Commercial General Liability with limits of $10,000,000 per occurrence and
$15,000,000 aggregate.
(c) Certificates of Insurance.
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i. So long as the City maintains current on its annual premium for the
coverage outlined herein, it shall be a Named Insured under the policy.
(d) Non -Exclusivity and Limitations of Insurance Coverage. It is understood by the
City, that the insurance coverages set forth herein and obtained and maintained
by the County is not exclusive to this Agreement. Meaning, that the County may
purchase and maintain the insurance coverages to insure the County (its
respective elected officials, officers, employees, and agents) against such Claims
arising from the County Services provided under this Agreement, as well as
similar Services the County provides to other municipal public corporations. As
such, the City, along with other participating municipal corporations, will share in
the cost of the insurance premium paid by the County. To this end, the County
agrees to reasonably allocate the premium paid for the insurance to the various
water and sewer systems operated and maintained by the County, including the
City's System, and provide reasonable justification for the allocation of said cost
to the City. In addition, it is understood and agreed, that the purchase of
insurance and payment of the premium (as a System Cost), does not guarantee
insurance coverage for any Claim. All policies set forth herein are subject to the
terms, conditions, and limitations set forth in the insurance policies. As such,
uninsured Claims shall be and remain a System Cost. Moreover, insured Claims
arising from the County's Services to a municipal water and sewer system, other
than the City's System, may limit or possibly eliminate coverage of a Claim
arising from the County's Services under this Agreement. in the event of such an
occurrence, it is understood that an otherwise insured Claim that is in excess of
any valid and collectible insurance rights/policies, shall be and remain a System
Cost.
3.6 Permit Assistance. The County will assist the City in the procurement of all permits,
guarantees, warranties, easements, licenses, and other similar approvals and consents
necessary to operate and maintain the System received by or granted to the City as the
owner of the System.
3.7 Reoulatory Compliance. The County will supervise all regulatory compliance and
financial transactions, except for the enforcement of the City's ordinances or regulations.
3.8 Disbursino Funds. Upon request from the City for the dispersal of funds from the System
Enterprise Fund, the County shall promptly disburse funds to the City in the amount and
manner requested, provided that the balance remaining in the System Enterprise Fund
is adequate for the operation and maintenance of the System.
Article IV. City's Responsibilities.
4.1 Ordinance — Rates and Charoes. The City has adopted or shall hereafter adopt one or
more ordinances or resolutions as are necessary under the terms of the Agreement,
which provides the Rates and Charges sufficient to provide the Revenue necessary to
reimburse the County for its Costs and Overhead related to the Services provided by the
Agreement; and provide for the billing and collection of the Rates and Charges
pertaining to the System.
4.2 Ordinance — Enforcement. The City is responsible for enforcement of the City's
ordinances and regulations relating to the System.
4.3 Caoital Replacement of Svstem. The City shall be responsible for expenditures for all
capital replacement of System components.
4.4 Testinci and Samolinq Fees: Consultant Fees. The City agrees that the term Costs
includes, but is not limited to, fees for testing, sampling, engineering services or studies,
hydrological studies, master planning, capital improvements, as well as all of the costs
related to procurement of the same, are a Cost which may be accounted for in the Rates
and Charges.
4.5 Permits - City. The City will be responsible for procuring, and in accordance with their
respective terms, all permits, guarantees, warranties, easements, licenses, and other
similar approvals and consents necessary to operate and maintain the System received
by or granted to the City as the owner of the System.
4.6 City - Insurance.
(a) It shall be the responsibility of the City to determine and obtain real and
personal property insurance with limits that the City, in its discretion, deems
necessary and appropriate for the System and components of the System.
(b) It shall be the responsibility of the City to determine and obtain General
Liability Insurance or self-insurance to protect against the City's liabilities and
exposures set forth in Article VI.
4.7 Property Access. City will be responsible for and will secure the right of access
necessary for WRC Personnel or Contractors to perform the Services under this
Agreement. The City will be responsible for all costs or Claims associated with securing
rights of access.
4.8 Compliance with State and Federal Law and Requlations. The City will be and remain
responsible for Costs associated with compliance with all federal, State, and local laws,
ordinances, regulations, and requirements in any manner affecting any work or
performance of this Agreement or with any City duty or obligation under any applicable
State or federal laws and/or regulations.
4.9 Svstem Ownership. Notwithstanding any other term or condition in this Agreement, no
provision in this Agreement is intended, nor shall it be construed, as constituting a
divestiture or forfeiture of the City's absolute ownership of and authority over the System,
which authority shall allow the City to make modifications to the system allowed by law.
Article V. Compensation for Services.
5.1 Compensation from Svstem Revenue. The County's Costs and Overhead incurred for
the Services shall be compensated from the Revenue from the System. In the event that
the Costs and Overhead exceed the Revenue in any one year, then any deficiency may
be recovered by adjusting the Rates and Charges charged to customers of the System
or from the general fund of the City. In the event that annual Costs and Overhead are
less than the annual Revenue, then upon the sole discretion and direction of the City,
future rates to the customers may be adjusted to balance the account. The County shall
be required to perform an audit of its procedures with respect to the manner of the
computation and assignment of Costs and Overhead to the City and shall provide the
City with a copy of the results, including any recommendations regarding Cost and
Overhead computation and/or assignment formulas and practices. Additionally, the City
shall be entitled to conduct, and/or may request the County to conduct, an independent
audit of the County's records relating to the computation and assignment of the City's
Costs and Overhead at any time. The cost of conducting such a review or audit shall be
a Cost of the System.
5.2 County Services Performed Non -Profit Basis. The City acknowledges and agrees that
the County will assist the City In the operations and maintenance of the System on a
non-profit basis for the benefit of the users of the system and therefore the County is
without funds to finance, operate and maintain the System except for the Revenue
derived from the System users. Therefore, it is understood and agreed that in no event
shall the County or its general fund be charged with or be liable for the cost of operating,
maintaining, repairing, replacing, or administering the System. All Costs and Overhead
associated with the Services under this Agreement will be the responsibility of the City.
Article VI. Standard of Care; Warranty Waiver; Consequential Damages; Liability.
6.1 Standard of Care: Waiver of Warrantv and Conseouential Damaoes. The County will
perform the Services under this Agreement in accordance with the standard of care and
diligence normally provided by other professional firms providing similar Services.
However, the County makes no warranty, express or implied, with respect to any
Services provided. SPECIFICALLY, NO WARRANTY OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER WARRANTY IS MADE
OR IMPLIED BY THE COUNTY WITH RESPECT TO SERVICES PROVIDED UNDER
THIS AGREEMENT. NOTWITHSTANDING ANY PROVISION CONTAINED IN THIS
AGREEMENT, IN NO EVENT SHALL THE COUNTY BE LIABLE FOR ANY INDIRECT,
INCIDENTAL, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES
WHATSOEVER UNDER CONTRACT, TORT OR OTHERWISE.
6.2 Liability for Claims. Except as otherwise provided in this Agreement, it is understood that
each Party shall be responsible for any Claims made against that Party and for the acts
or omissions of its respective employees or City/County Agents. With respect to Claims
that arise from the performance of this Agreement, each Party shall seek its own legal
representation and bear the costs associated with such representation including attorney
fees. Except as otherwise provided in this Agreement, neither Party shall have any right
under any legal principle to be indemnified by the other Party or any of its employees or
Agents in connection with any Claim. This Agreement does not, and is not intended to,
impair, divest, delegate or contravene any constitutional, statutory, and/or other legal
right, privilege, power, obligation, duty or immunity of the Parties. Nothing in this
Agreement shall be construed as a waiver of the privileges and immunities as provided
by law afforded to the Parties. The Parties expressly reserve all privileges and
immunities as provided by law.
6.3 Force Majeure: Svstem Malfunction: Misuse or Vandalism of Svstem. The City will be
responsible for damage and liability to the System or components thereof caused by
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flood, fire, Acts of God or other force majeure, civil disturbance, Acts of War, terrorism or
misuse of property. In addition, the City will be responsible for all Claims, damages and
liability caused by design and/or construction defects, malfunction or failure of the
System or any component thereof; water loss, main breaks, hydrant damage and
vandalism provided the same is not directly caused by the acts or omissions of County
Agents.
6.4 No Third Partv Beneficiarv. This Agreement does not create any rights or benefits to
parties other than the City and the County.
Article VII. Cooperation and Communication; Dispute Resolution.
7.1 Cooperation. The County agrees to ensure that all County Agents fully cooperate with
the City and City Agents in the performance of all Services under this Agreement. The
City agrees to ensure that City Agents cooperate with WRC Personnel in the
performance of the Services under this Agreement.
7.2 Communication. There shall be an open and direct line of communication established
and maintained between the Parties in order to promote the handling of both routine and
emergency situations in a timely and cooperative manner according to the
circumstances as they exist or become known. Each Party will designate one or more
liaisons for such purposes, and will notify the other Party of such designee(s).The
liaisons also shall be used for purposes of communicating and coordinating specific
needs, plans, instructions, issues, concerns and other matters relating to the System or
Services.
7.3 Dispute Resolution. The Parties agree that any and all claims alleging a breach of this
Agreement, or with respect to the rates, charges, costs, overhead and/or Services
provided and/or addressed under this Agreement, shall first be submitted to an
alternative dispute resolution process. Such an alternative dispute resolution process
may include, but is not limited to, facilitation, binding arbitration, or non -binding
arbitration. The Parties shall agree upon the form and procedures for the agreed upon
alternative dispute resolution process. If the matter is not resolved through an
alternative dispute resolution process, or if the Parties cannot agree upon the form and
procedures for the alternative dispute resolution process, the Parties may seek legal
recourse in a court of competent jurisdiction. For claims requiring immediate relief to
prevent irreparable harm, either Party may seek relief directly from a court of competent
jurisdiction without submitting the matter to the alternative dispute resolution process.
Article VIII. Term; and Termination.
8.1 Term. The Parties agree that the term of this Agreement shall begin on the Effective
Date of this Agreement. This Agreement shall be effective for an initial term of ten (10)
years from the effective date, and shall be automatically extended for additional ten (10)
year terms, unless terminated as provided herein, or otherwise agreed to in writing by
the Parties.
8.2 Termination. Notwithstanding any other term or provision in any other section of this
Agreement, either Party, upon a minimum of One Hundred and Eighty (180) calendar
days written notice to the other Party, may terminate this Agreement for any reason,
including convenience, without Incurring any penalty, expense, or liability to the other
Party. The effective date for any such termination shall be clearly stated in the notice.
8.3 Survival of Certain Terms and Conditions Followina Termination or Expiration of
Agreement. The Parties agree that record -keeping and audit requirements, any payment
obligations to the other Party, and/or any other related obligations provided for in this
Agreement with regard to any acts, occurrences, events, transactions, or Claim(s) either
occurring or having their basis in any events or transactions that occurred during the
term of this Agreement, shall survive the termination or expiration of this Agreement.
8.4 C000eration Followina Termination of Aareement. In the event the Agreement is
terminated as provided herein, the Parties agree to cooperate in all respects and assist
in the wind down from the County's operation and maintenance of the System. The City
will be responsible for all Costs and Overhead incurred by the County through the date
of termination, including the Costs and Overhead incurred by the County during the
termination notice period referenced above to wind down and end the County's
involvement in the provision of the Services.
Article IX. Agreement Approval; Effective Date; and Amendments; Changes to Scope of
Services.
9.1 Aareement Approval: Amendments: and Effective Date. Except as otherwise provided
herein, this Agreement, and/or any subsequent amendments thereto, shall not become
effective prior to the approval by resolutions of both the City and the County. The
Effective Date of this Agreement, and any amendments hereto, shall be the date as
reflected in the opening paragraph of this Agreement.
9.2 Amendment to Scone of Services. During the term of this Agreement, the Scope of
Services attached hereto as Exhibit B, may be amended by the WRC and approved by
resolution of the City during the term of this Agreement without requiring a resolution
from the County Board of Commissioners.
Article X. General Provisions.
10.1 Governina Law. This Agreement is made and entered into in the State of Michigan and
shall in all respects be interpreted, enforced and governed under the laws of the State of
Michigan. The language of all parts of this Agreement is intended to and, in all cases,
shall be construed as a whole according to its fair meaning, and not construed strictly for
or against any party. As used in this Agreement, the singular or plural number,
possessive or non -possessive shall be deemed to include the other whenever the
context so suggests or requires.
10.2 Reservation of Riahts: Governmental Function. This Agreement does not, and is not
intended to impair, divest, delegate, or contravene any constitutional, statutory, and/or
other legal right, privilege, power, obligation, duty, or immunity of the Parties. In addition,
the Parties maintain that the obligations set forth in this Agreement will be in the exercise
or discharge of a governmental function.
10.3 Severabilitv. If any provision of this Agreement or the application to any person or
circumstance is, to any extent, judicially determined to be invalid or unenforceable, the
remainder of the Agreement, or the application of the provision of persons or
circumstances other than those as to which it is invalid or unenforceable, is not affected
and is enforceable, provided the invalid provision does not substantially alter the
Agreement or make execution impractical.
10.4 Bindino Contract: Assionment: and Amendments. This Agreement will be binding upon
and for the benefit of the Parties hereto and their respective successors and assigns,
subject to any assignment requiring the prior written consent of the non -assigning Party
by an amendment to this Agreement signed by all Parties, and the assignee binding the
assignee to the terms and provisions of this Agreement.
10.5 Captions. The section headings or titles and/or all section numbers contained in this
Agreement are intended for the convenience of the reader and not intended to have any
substantive meaning and are not to be interpreted as part of this Agreement.
10.6 Notices. Except as otherwise expressly provided for herein, any and all correspondence,
invoices, and/or any other written notices required, permitted or provided for under this
Agreement to be delivered to the following:
COUNTY OF OAKLAND:
OAKLAND COUNTY WATER
RESOURCES COMMISSIONER
1 Public Works Drive
Waterford, Michigan 48328
CITY:
CITY OF BLOOMFIELD HILLS
CITY MANAGER
45 East Long Lake Road
Bloomfield Hills, Michigan 48304-2322
101 Notice Deliverv. Except with respect to notices of termination, all correspondence and
written notices shall be considered delivered to a Party as of the date that such notice is
deposited with sufficient postage with the U.S. Postal Service. Notices of termination
shall be personally delivered or sent by certified mail, return receipt requested, and shall
be considered delivered to a party on the date of receipt as represented by the return
receipt or by a proof of personal service.
10.8 Entire Aoreement. This Agreement sets forth the entire agreement between the County
and the City and fully supersedes any and all prior agreements or understandings
between them in any way related to the subject matter hereof. It is further understood
and agreed that the terms and conditions herein are contractual and are not a mere
recital and that there are no other agreements, understandings, contracts, or
representations between the County and the City in any way related to the subject
matter hereof, except as expressly stated herein. This Agreement shall not be changed
or supplemented orally and may be amended only as otherwise provided herein.
10.9 Recitals. The recitals shall be considered an integral part of the Agreement
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IN WITNESS WHEREOF, this Agreement is executed by the Parties on the date
hereafter set forth in the opening paragraph of this Agreement.
COUNTY OF OAKLAND
0
CITY
David T. Woodward, Chairperson
Oakland County Board of Commissioners
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Water System
Operation & Maintenance
Exhibit B
Scope of Services
Water System Operation and Maintenance
The County agrees to perform the following operation and maintenance services of the
Bloomfield Hills Water System ("System") (all of the following being referred as the "WRC
Services" or "Services") on behalf of the City:
1. Operation and maintenance of booster pump stations, pressure reducing valves, storage
tank(s), and appurtenances including the payment of power costs, lawn and landscape
maintenance, and all sampling and testing required by the State and Federal
government.
2, Read water meters for billing purposes.
3. Operation and maintenance of the System, including all system mains, meters, public
service leads, fire hydrants, valves, and all other facilities, equipment and appurtenances
that are part of the System. The water service lead between the service valve and the
water meter is the responsibility of the property owner and will not be maintained by the
WRC as it is not a part of the System.
4. Perform residential and commercial cross connection inspections in accordance with the
Michigan Safe Drinking Water Act, Public Act 399 of the Public Acts of 1976, as amended
(MCLA 325.1001 at seq.), and the rules promulgated thereunder, and the WRC's Cross -
Connection Program,
5. Compute and bill charges for the Services rendered to each user connected to the
System In accordance with the Rates and Charges established by the City. The charges
will be payable thirty (30) days after the date of each billing cycle or such other time
period as may be set by the City by ordinance or resolution and shall bear such penalties
and late charges as the City by ordinance shall provide. Past due amounts may also be
certified to the tax roll for collection.
6. Receive and process all payments from customers of the System, and respond to
customer and City inquiries regarding billing. Provide delinquent billings, at the
appropriate time and according to law, for placement on and collection under the tax roll
by the City. In the event of customers declaring bankruptcy and listing delinquent water
bills In the bankruptcy proceedings, report the same to the City for follow-up, and provide
all necessary information to City.
7. Receive and process all applications relating to water service connections to the System
and collect all Rates and Charges relating to service connections.
8. Install all water service connections to the System, two (2) inches or less, including
tapping the water main, installing the service lead within the road right-of-way or
easement, installing a curb stop, supplying the water meter, installation of the reading
device, and restoration of the area effected in accordance with all of City's design and
installation standards and requirements.
9. Respond to requests from customers and the City for maintenance, water quality
concerns, inspections and repairs, both emergency and routine.
10. Establish, maintain, manage, and administer a System Enterprise Fund. Revenue
collected by the County shall be deposited and maintained in the System Enterprise
Fund. Costs for performing the Services under this Contract will be deducted from the
System Enterprise Fund as payment for such Services.
Water System
Operation & Maintenance
11. Keep all necessary records and books of account pertaining to its dealings with the users
of the System within the City and the System Enterprise Fund, and make same available
to the City upon request.
12. Comply with applicable laws and governmental accounting standards in the keeping,
management, administration, use and auditing of the System Enterprise Fund. Upon
request of the City, provide the City with a quarterly accounting statement, a quarterly
operation and maintenance activity report and annual report for the City's review in
accordance with the County's fiscal year. Upon request, allow the City or City agents to
audit the System Enterprise Fund accounts, books and statements, and provide City with
supporting documentation and copies of such materials if requested.
13. Subject to applicable laws, City ordinances and proper notice to the System users, on
behalf of the City, the County may terminate any water service to a water customer who
has failed to pay the customer's water charges for a period of ninety (90) days following
the date on which the quarterly billing is due, or sixty (60) days for monthly billing, for
such water service. Upon request of the City, the County shall notify the City at least
seven (7) days prior to termination of water service.
14. The County will pay over to the City, upon request, any surcharges for water connections
for water service which the City may establish and charge in excess of the Rates and
Charges established and collected by the County.
15. The County will provide, maintain and monitor a Supervisory Control and Data
Acquisition System (SCADA) to provide alarms on System facilities operated and
maintained by the County.
16. The County will provide a 24-hour, 7-day per week dispatch center to monitor alarms
from the Supervisory Control and Data Acquisition (SCADA) system and any other
reports of System emergencies, and will dispatch emergency service crews to respond to
such alarms and reports as appropriate.
17. The County and WRC Personnel shall comply with all Federal, State, Great Lakes Water
Authority (GLWA), and local permits and license issues applicable to the operation and
maintenance of the System.
18. All Services provided by the County under this Contract will be performed in accordance
with all applicable State and Federal laws and regulations, including, without limitation,
the Michigan Safe Drinking Water Act, Public Act 399 of the Public Acts of 1976, as
amended, MCL 325.1001 to 325.1023, as well as all applicable City ordinances.
19. The County shall establish, provide and implement water system operation and
maintenance -related programs, studies, reports, testing, sampling, inspections and
surveys in accordance with City, State, and Federal mandates.
20. The County will, replace or repair existing components of the System which are identified
by the County or City to be in need of repair or replacement. Upon completion of such
repairs and replacements, if the System has been altered in any material way the County
will provide to the City record drawings and update the Geographic Information System
(GIS) and any related database(s) to contain current infrastructure information. Unless
otherwise agreed in writing by the Parties, the County's obligation to repair or replace
shall be limited to the fund balance contained in the System Enterprise Fund.
21. The County will maintain, and update as necessary, the GIS and any related database(s)
of the System. The County also will provide the City with hard copies and digital copies of
2
Water System
Operation & Maintenance
the mapping, and updates as requested, in a manner compatible with the City's GIS, and
will provide interconnectivity between the City and County GIS when in place. The
County will update the GIS and any related database(s) of the System upon being
provided record drawings or other information from the City identifying corrections and/or
modifications of the System and upon the County performing Services that result in
modifications of the System. The City is responsible for providing accurate record
drawing information.
22. The County will conduct MISS DIG operations, in accordance with Public Act 53 of the
Public Acts of 1974, as amended, (MCLA 460.701 at seg.) on behalf of the City as they
pertain to the operations and maintenance of the System.
23. In the event System repairs or replacement is deemed attributable to outside parties, (i.e.
Contractor damage or customer negligence), consistent with applicable City ordinances,
the WRC will bill the responsible party at the City's direction. If any portion or the entire
bill is deemed uncollectible, the uncollected amount will be charged directly to the System
Enterprise Fund.
3
Exhibit C
OVERHEAD EXPENSE
WRC Overhead charges are expenses not included In the direct hourly system labor and equipment
costs. Overhead Is allocated to all the systems that WRC services. Overhead expense includes, but is not
limited to:
Billing Services Unit
Labor, equipment, payment processing, bill preparation, postage and other related costs
necessary to provide customer service for the communities WRC operates and maintains.
Safety Program
Labor, equipment and training needed to meet or exceed all required safety standards.
Training
Training and certification costs for field and engineering staff required to keep them up-to-date
on industry standards and innovations.
WRC Administration
Labor, equipment and training required to oversee the daily WRC operations. This includes
Permitting, Mapping, GIS, Asset Management and Miss Dig.
Building Use and Maintenance
Use of the various WRC buildings (includes Water Maintenance, Pump Maintenance, Billing
Services and Public Works buildings) and labor equipment, insurance, utilities, supplies and
other related costs needed to operate and maintain such buildings.
Miscellaneous Supplies
Supplies which are not inventoried and not purchased for a specific system are allocated to the
benefiting systems. This category includes uniforms, gloves, boots and repair parts.
Oakland County Support
Various Oakland County departments support the staff and work performed at WRC. These
departments include Human Resources, Purchasing, Info Tech and Fiscal Services. The portion of
their costs which is charged to WRC is then allocated to the funds operated by this division.
Resolution #20444
October 21, 2020
Moved by Long seconded by Quarles the resolutions on the amended Consent Agenda be adopted.
AYES: Gingell, Hoffman, Jackson, Kochenderfer, Kowall, Kuhn, Long, Luebs, Markham,
McGillivray, Miller, Nelson, Powell, Quarles, Spisz, Taub, Weipert, Woodward, Zack,
Gershenson. (20)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions on the amended Consent Agenda were adopted.
I HEREBYAPPROVE THIS RESOLUTION
CHIEF DEPUTY COUNTY EXECUTIVE
ACTING PURSUANT TO MCL 45.559A (7
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
1, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and
accurate copy of a resolution adopted by the Oakland County Board of Commissioners on October 21,
2020, 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 Circuit Court at Pontiac,
Michigan this 21 st day of October, 2020.
Lisa Brown, Oakland County