HomeMy WebLinkAboutMinutes - 1990.06.28 - 7171OAKLAND COUNTY
Board Of Commissioners
MEETING
June 28, 1990
Meeting called to order at 10:32 A.M. by Chairperson Roy Rewold in the Courthouse
Auditorium, 1200 N. Telegraph Road, Pontiac, Michigan.
Roll called.
PRESENT: Aaron, Bishop, Caddell, Calandro, Chester, Crake, Gosling, Huntoon, Jensen,
Johnson, Richard Kuhn, Susan Kuhn, Law, Luxon, McConnell, McCulloch, McPherson, Moffitt, Oaks,
Olsen, Pappageorge, Pernick, Price, Rewold, Skarritt, Wolf. (26)
• ABSENT: Ferrens. (1)
Quorum present.
Moved by Susan Kuhn supported by Huntoon the minutes of the June 14, 1990 meeting be
approved as printed.
A sufficient majority having voted therefor, the minutes were approved.
Moved by Olsen supported by Pernick the rules be suspended and the agenda amended for the
following
ITEMS ON BOARD AGENDA
PERSONNEL COMMITTEE
b. Recruitment of Solid Waste Director (Waive Rule XI (F) Direct Referral to Finance
Committee)
PLANNING AND BUILDING COMMITTEE
a. Drain Commissioner - Resolution to Approve Second Amendment to Huron-Rouge Sewage
Disposal System/Walled Lake-Novi Wastewater Treatment Plant 1989 Enlargement Contract (Reason - same
as above)
e. Dept. of Solid Waste Management - Solid Waste System Intergovernmental Agreement
(Waive Rules X, XI, Finance Committee Responsibilities and/or Direct Referral to Finance)
ITEMS NOT ON BOARD AGENDA
FINANCE COMMITTEE
Misc. Res. #90122, "Solid Waste Program Funding, Voter-Approved bonds (Waive Rule XI (C)
Multiple Committee Referral
PLANNING AND BUILDING COMMITTEE
h. Misc. Res. #90123, Solid Waste Program Funding, 'Limited Obligation Bonds" (Reason -
same as above)
i. Drain Commissioner/Evergreen-Farmington Sewage Disposal System Pollution Control
Facilities - Segment II Arm C and SSES Rehabilitation Improvements Contract (Waive Rule XXVII-5 day
notification, Planning and Building Committee met 6/26/90)
j. --City of Lathrup Village - Ext. No. 1 Contract (Reason - same as above)
k. --City of Troy - Local Relief Sewers and SSES Rehabilitation (Reason - same as above)
1. --City of Farmington 'Hills - Segment II Arm D - Local Relief Sewers and SSES
Rehabilitation Contract (Reason - same as above)
m. --Segment II - Stage 3 Contract (Reason - same as above)
n. --Segment It - Stage 6, Stage B and SSES Rehabilitation Contract (Reason - same as
above)
175
o. --Segment I 7 .Stage 2-Segment II-Arms j and k Local Relief Sewers and SSES
Rehabilitation Contract (Reason - same as above)
I/b
Commissioners Minutes Continued. June 28, 1990
p. --Amy Relief Sewers Contract (Reason - same as above)
Vote on amended agenda:
A sufficient majority having voted therefor, the the amended agenda was approved.
Vote on suspension of the Rules:
AYES: Bishop, Caddell, Calandro, Chester, Crake, Gosling, Huntoon, Jensen, Johnson, R.
Kuhn, S. Kuhn, Law, Luxon, McConnell, McPherson, Moffitt, Oaks, Olsen, Pappageorge, Pernick, Rewold,
Skarritt, Wolf. (23)
NAYS: None. (0)
A sufficient majority having voted therefor, the motion to suspend the rules carried.
Clerk read letter of thanks from David and Kathleen Moffitt.
Clerk read letter from Thomas P. Dunleavy, Highland Township Supervisor urging the Board
to stand firm in their original vote to remove the Marlowe Landfill from the County's 641 Plan.
Clerk read letter of thanks from members of the Board of Commissioner Staff.
Clerk read letter from Chairperson Roy Rewold announcing the appointment of Richard G.
Skarritt as a member of the•Highland Lake Improvement Board.
Anne Hobart stated the County held a contest for the best design of a recycling sticker.
Several Honorable Mention ribbons were given out by Ms. Hobart. County Executive Daniel T. Murphy
presented ribbons for 2nd and 3rd place winners in age categories 5-8 and 9-12, followed by a "best
of show" award given to Holly Livingston of Waterford.
Lucile E. McConnell, Attorney for Bishop, Gook, Purcell & Reynolds announced on May 4,
1990 the EPA awarded the Cooperative Extension Service of Michigan State University and Oakland
County, Michigan a $250,000 grant under the Pollution Prevention Incentives for States Program to
teach businesses in Oakland County waste reduction and recycling techniques The EPA received 132
proposals and awarded 25 grants nationally.
The Parks and Recreation Department presented a slide presentation on Oakland County Parks
and programs offered by the various parks in the County.
Misc. 90140
IN RE: OAKLAND COUNTY RECREATION AND PARKS MONTH, July 1990
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS the Oakland County Parks and Recreation Commission's mission is to provide all
residents of Oakland County with recreational; leisure; and learning experiences, parks, open
spaces; and facilities, resulting in a comprehensive county park system that enhances quality of
life; and
WHEREAS the Oakland County Parks and Recreation Commission has provided outstanding
recreation for all of the residents of Oakland County for nearly 25 Years; and
WHEREAS the Oakland County Parks offer nine parks and golf courses throughout Oakland
County; and
WHEREAS the parks system offers recreational opportunities ranging from camping, boating;
golfing, and picnicking to cross-country skiing and ice fishing; and
WHEREAS the parks system operates additional facilities including two unique wave-action
swimming pools, the country's first dome-covered driving range; a nature center, an amphitheater;
conference. and banquet facilities, a tennis complex; and WHEREAS there are many outreacn programs for communities including mobile recreation,
school visits by parks naturalists, senior citizen events, services to the disabled; and
WHEREAS the people of Oakland County have established and approved a one-quarter mill tax
to acquire, preserve and develop parkland since 1966; and
WHEREAS the National Recreation and Park Association and the Michigan Recreation and Park
Association declared the month of July 1990 as Michigan Recreation and Parks month;
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners declares July
as Oakland County Recreation and Parks month to recognize the significant role parks and recreation
plays in meeting residents' needs, and ir preserving and protecting county and state natural
resources.
Moved by Olsen supported by Calandra the resolution be unanimously adopted.
A sufficient majority having voted therefor, the resolution was unanimously adopted.
The following persons addressed the Board:
Steven Landry, Mary Landry, Marilynne burton-Ristau; George W. Suarez, Judy White, John
King, Susan Mysliewiec, Sharyl Barbee, Mary F. Sterna, Alice Tomboulian, Sandra Criston, Mike Higgin,
Commissioners Minutes Continued. June 28, 1990 177
Debbie McConnell; Gisela Lendle-King, Mary Santos, Jane Kayga, Rudy Serra, Mike Odette, Kevin
Miltner, Dorothy Webb, Iris Uhlar, Frank Berstenecker and Jim Perry.
Misc. 90141
By Larry P. Crake
IN RE: UPDATE OF OAKLAND COUNTY SOLID WASTE MANAGEMENT PLAN
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS this Board has reviewed the proposed update to the Oakland County Solid Waste
Management Plan (the "Plan Update") as prepared by the County Executive and approved by the Oakland
County Solid Waste Planning Committee ("SWPC") on May 10, 1990, all in accordance with Act 641 of
the Public Acts of 1978, as amended ("Act 641"); and
WHEREAS this Board, by resolution adopted on May 31, 1990, noted nine objections to the
proposed Plan Update and returned the Plan Update to the SWPC with a request that the SWPC make its
final recommendations to this Board by June 30, 1990 regarding the objections, as provided in Act
641; and
WHEREAS the SWPC met on June 14, 1990 to consider this Board's objections to the Plan
Update and has submitted its written recommendations to this Board pursuant to a letter dated June
19, 1990 from the chairman of the SWPC; and
WHEREAS this Board has considered the recommendations of the SWPC and deems it is
necessary and advisable to approve the Plan Update with certain changes as hereinafter described.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby
approves the Plan Update as issued on May 10, 1990 by the Solid Waste Planning Committee with the
following changes:
1. The BFL/Rose Township landfill designation will be removed from the Plan Update.
2. Section 8.5.10 will be amended to include the following host community fee language.
As compensation for the various impacts associated or perceived to be associated with
a solid waste facility, this plan endorses the concept of payment, by the facility
owner, to the community in which the facility is located, of a "host community fee."
The two parties involved (the facility owner and the community within which the
facility is located) shall have the responsibility of negotiating a mutually accept-
able host community fee.
For new or expanded facilities, the existence of a mutually agreed-upon host community
fee, or the lack thereof, may be taken into account in the evaluation, recommendation,
and decision to include or deny inclusion of the proposed facility in this Plan.
3. Sections 8.5.4 and 8.5.6 (CRC representation by local agencies) will be amended to
include the following language.
The last sentence of the second paragraph of Section 8.5.4 will be amended by adding
at the end thereof with the consent of the Board of Commissioners."
The third sentence of the first paragraph of Section 8.5.6 will be amended by deleting
"will be issued 60 calendar days" and substituting therefor "will not be issued for at
least 60 calendar days."
Figure 8.5-1 will be adjusted to accurately reflect the final interim siting process
as attached'.
4. Section 8.8.1 (System Financing) will be amended as follows.
Section 8.8.1 will be amended by deleting the second sentence of the first paragraph
thereof and inserting in place thereof, "The System will be self supporting through
revenues generated by waste delivered to the various system compcAents to pay bond-
holders for any bonds issued to finance the facilities."
5. Part 2 of Section 8.5.10 (Interim Siting Criteria) will be amended as follows (new
language underlined).
Identify any airports within 10,000 feet of the site. For landfill siting proposals,
written evidence of contact with the Michigan Aeronautics Commission must be provided,
regardless of the site proximity to the airport(s).
6. The last sentence of Section 8.5.12 (Board of Commissioners Approval Process) will be
amended as follows (new language underlined).
The Board will give due regard to the CRC and County Executive recommendations in
evaluating the proposal, will approve or deny the recommendations only by affirmative
action of the Board and ,wil reject a recommendation on y if there is clear and con-
vincing evidence that a proposed site does not meet the goals and objectives of the
Plan.
7. Limiting language will be added to the designation of the SOCRRA landfill expansion
as follows.
This expansion is included only as a covered ash monofill for waste-to-energy residue.
BE IT FURTHER RESOLVED that the Plan Update with the changes noted above, shall be
178
Commissioners Minutes Continued, June 28, 1990
submitted first to Oakland County's 61 municipalities for their approval and after receiving 67%
affirmative responses (41 minimum), the Plan Update shall be submitted to the Michigan Department of
. Natural Resources for its final approval.
Mr. Chairperson, I move the adoption of the foregoing resolution.
Larry P. Crake, Commissioner, District #5
Moved by Crake supported by Caddell the resolution be adopted.
Moved by Chester supported by Aaron the SOCCRA Incinerator be removed from the 641 Plan.
Discussion followed.
AYES: Chester, Gosling, Johnson, R. Kuhn, Law, Luxon, McConnell, McPherson, Moffitt,
Price, Bishop. (11)
NAYS: Caddell, Calandra, Crake, Huntoon, Jensen, S. Kuhn, McCulloch, Oaks, Olsen,
Pappageorge, Pernick, Rewold, Skarritt, Aaron. (14)
ABSTAIN: Wolf. (1)
A sufficient majority not having voted therefor, the amendment failed.
Moved by Chester supported by McPherson to remove and delete the proposed new SOCCRA
Incinerator from the 641 Plan without prejudice, for SOCRRA's right to apply for inclusion in the
Incinerator Plan once it has air permit from the state, and has met other requirements opposed by
the County Plan.
The Chairperson ruled the amendment out of order.
Mr. Chester appealed the decision of the Chair.
, The Chairperson stated a "yes" vote would sustain the Chair.
AYES: Calandro, Crake, Gosling, Huntoon, Jensen, Johnson, R. Kuhn, S. Kuhn, Law, Luxon,
McConnell, McCulloch, Moffitt, Oaks, Olsen, Pappageorge, Pernick, Price, Rewold, Skarritt, Aaron,
Caddell. (22)
NAYS: Chester, McPherson, Bishop. (3)
ABSTAIN: Wolf. (1)
A sufficient majority having voted therefor, the decision of the Chair was sustained.
Moved by Chester supported by McPherson the County Plan be amended to provide that any new
or existing waste-to-energy facility must have a minimum 1000 foot set-back from any resident,
school, park or similar structural facility.
AYES: Chester, Gosling, Johnson, Luxon, McPherson, Moffitt, Price, Bishop. (8)
NAYS: Crake, Huntoon, Jensen, R. Kuhn, S. Kuhn, Law, McConnell, McCulloch, Oaks, Olsen,
Pappageorge, Pernick, Rewold, Skarritt, Aaron, Caddell, Calandra. (17)
ABSTAIN: Wolf. (1)
A sufficient majority not having voted therefor, the amendment failed.
Moved by Bishop supported by Price to amend the resolution on page 3, item #7, by striking
the SOCCRA Lanfill from the 641 Plan,
AYES: Gosling, Johnson, R. Kuhn, Law, McPherson, Moffitt, Price, Rewold, Bishop, Chester.
(10)
NAYS: Crake, Huntoon, Jensen, S. Kuhn•, Luxon, McConnell, McCulloch, Oaks, Olsen,
Pappageorge, Pernick, Skarritt, Aaron, Caddell, Calandro. (15)
A sufficient majority not having voted therefor, the amendment failed.
Moved by Johnson supported by Skarritt that section 8.5.10 be amended in the 1st
paragraph, 5th sentence by adding the words or contiguous County" following the words "within the
County."
A sufficient majority having voted therefor, the amendment carried.
Vote on the 641 Solid Waste Management Plan, as amended:
AYES: Huntoon, Jensen, Johnson, R. Kuhn, S. Kuhn, Law, Luxon, McConnell, Oaks, Olsen,
Pappageorge, Pernick, Price, Rewold, Skarritt, Wolf, Aaron, Caddell, Calandro, Crake. (20)
NAYS: Gosling, McCulloch, McPherson, Moffitt, Bishop, Chester. (6)
Commissioners Minutes Continued. June 28, 1990 179
A sufficient majority having voted therefor, the resolution, as amended, was adopted.
Report (Misc. 90122)
By Finance Committee
IN RE: SOLID WASTE PROGRAM FUNDING, VOTER-APPROVED BONDS
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
The Finance Committee, having reviewed Miscellaneous Resolution #90122, "Solid Waste
Program Funding, Voter -Approved Bonds," reports with the recommendation that said resolution be
adopted.
Mr. Chairperson, I move acceptance of the foregoing report.
FINANCE COMMITTEE
G. William Caddell, Chairperson
Misc. 90122
By Commissioner John E. Olsen
IN RE: SOLID WASTE PROGRAM FUNDING, VOTER-APPROVED BONDS
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS disposal of the County's solid waste has become a most pressing concern of Oakland
County Government, and in addressing this concern the County is proposing a comprehensive solid
waste program which will be the most monumental financial program undertaken in Oakland's history;
and
WHEREAS the citizens of our County; like those in the rest of our State and Nation, have
been communicating their desire for programs which will safeguard the environment, and have been
equally vociferous in their demand for tax restraint; and
WHEREAS it is anticipated that the revenue generated from the use of this system will
fully cover the payment of the bonded indebtedness and operating cost of the program, and should
result in minimal; if any, use of general fund tax dollars; and
WHEREAS, however, in this era of high-taxation there is a public perception of disenfran-
chisement from a voice in how its tax dollars are obligated and spent, and a failure to allow a vote
Of the people on this bonded indebtedness will only lead to a furtherance of citizen distrust of
their government.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners does hereby
instruct the County Clerk to place the question of the issuance of General Obligation Bonds to cover
the cost of construction of the Oakland County's Solid Waste program in an amount not to exceed $500
Million before the voters on a county-wide election ballot.
I move the adoption of the foregoing resolution.
John E. Olsen, Commissioner District #17
Moved by Caddell supported by Olsen the resolution be adopted.
Discussion followed.
AYES: Jensen, R. Kuhn, S. Kuhn; Law, McCulloch; McPherson, Olsen, Pappageorae, Skarritt,
Wolf, Chester, Gosling. (12)
NAYS: Huntoon; Johnson, Luxon; McConnell,,Moffitt,'Oaks; Pernick, Price; Rewold, Aaron,
Bishop; Caddell; Calandro; Crake. (14)
A sufficient majority NOT having voted therefor, the resolution was not adopted.
Reports (Misc. 90123)
By Planning and Building Committee
IN RE: SOLID WASTE PROGRAM FUNDING, "LIMITED OBLIGATION BONDS"
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and.Gentlemen:
The Planning and Building Committee, having reviewed the above-referenced resolution,
reports with the recommendation that the resolution be adopted with the following amendment;
Delete the BE IT FURTHER RESOLVED paragraph and replace it with: "BE IT FURTHER RESOLVED
that the financing of this tremendous public works program be undertaken with extreme prudence and
fiduciary responsibility, and that the sale of said bonds will commence upon securing the necessary
approvals by the local units of the Intergovernmental Agreements which provide for the local units
to fully cover the cost of the program."
Mr. Chairperson, on behalf of the Planning and Building Committee, I move acceptance of
the foregoing report.
PLANNING AND BUILDING COMMITTEE
Larry P. Crake, Chairperson
i8o
Commissioners Minutes Continued. June 28, 1990
Misc. 90123
By Larry Crake
IN RE: SOLID WASTE PROGRAM FUNDING; "LIMITED OBLIGATION BONDS'
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS the culmination of years of planning the County's Solid Waste Program marks the
beginning of the construction and implementation portion of the program; and
WHEREAS it has been determined that the cost of this program will be approximately $500
Million, and the Board of Commissioners has determined that providing the necessary funding for this
program will necessitate the sale of bonds; and
WHEREAS it is anticipated that the revenue generated from the use of this system should
fully cover the payment of the bonded indebtedness and operating costs resulting in minimal, if any,
use of general fund tax dollars.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners does hereby
approve the sale of "limited obligation bonds under the provisions of Act 186, of the Public Acts
of 1989, as amended, in an amount not to exceed $500 Million.
BE IT FURTHER RESOLVED that the financing of this tremendous public works program be
undertaken with extreme prudence and fiduciary responsibility, and that the sale of said bonds will
commence immediately upon the securing of the necessary approvals by the local units of both the Act
641 Solid Waste Plan Update and the Intergovernmental Agreements which shall provide for the local
units to fully cover the cost of the program, and that no construction shall be undertaken until the
sale of the bonds is complete.
Mr. Chairperson, I move the adoption of the foregoing resolution.
Larry P. Crake, Commissioner Dist. #5
Ruth A. Johnson, David L. Moffitt
Moved by Crake supported by Pernick the resolution be adopted.
AYES: Johnson, Luxon, McConnell, McCulloch, Moffitt, Oaks, Pernick, Rewold, Aaron,
Bishop, Caddell, Calandro, Chester, Crake, Huntoon. (16)
NAYS: Jensen, R. Kuhn, S. Kuhn, Law, McPherson, Olsen, Pappageorge, Skarritt, Wolf,
Gosling. (10)
A sufficient majority having voted therefor, the resolution was adopted.
Report (Misc. 90142)
By Personnel Committee
IN RE: Department of Institutional and Human Services/Health Division - 1990/1991 HIV
SEROPREVALENCE SURVEY GRANT ACCEPTANCE
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
The Personnel Committee, having reviewed the above referenced resolution, reports with the
recommendation that the resolution be adopted.
Mr. Chairperson, on behalf of the Personnel Committee, I move the adoption of the foregoing
report.
PERSONNEL COMMITTEE
John P. Calandro, Chairperson
Misc. 90142
By Finance Committee
IN RE: Department of Institutional and Human Services/Health Division - 1990/1991 HIV
SEROPREVALENCE SURVEY GRANT ACCEPTANCE
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS pursuant to Miscellaneous Resolution #89105, the Health Division applied to the
Michigan Department of Public Health (MPH) for $88,220 in HIV Seroprevalence Survey Grant funds for
the period May 1, 1990 through April 30, 1991; and
WHEREAS MDPH has awarded the Oakland County Health Division a grant in the same amount and
for the same time frame as the application through the Southeast Michigan Health Association (SEMHA)
the prime MDPH sub-contractor for this project; and
WHEREAS grant funds cover 100% of program cost; and
WHEREAS $36,539 in revenue and expenses was budgeted for this grant in 1990, in the
1990/1991 Biennial Budget, this agreement will increase revenues and expenses by $51,681 as detailed
in the attached schedule; and
WHEREAS the grant includes funding for two (2) additional special revenue funded student
positions which requires the approval of the Personnel Committee; and
WHEREAS the Office of Corporation Counsel has reviewed the agreement and approved it as to
legal sufficiency; and
WHEREAS acceptance of this agreement does not obligate the County to any future
commitments.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners accepts the
1990/1991 HIV Seroprevalence Survey Grant in the amount of $88,220 and authorizes the necessary
Revenue
3-27371-179-01-00-2185
Expenses
4-27371-179-01-00-3128
Commissioners Minutes Continued, June 28, 1990 181
amendments to the 1990 Budget as detailed in Schedule A.
BE IT FURTHER RESOLVED that two (2) special revenue funded student positions be added to
the Health Division - Clinic Unit (#162-36) to execute this agreement and that in the event that
grant funding ends, these positions would be eliminated.
BE IT FURTHER RESOLVED that the Chairperson of the Board is authorized to execute said
grant agreements and to approve amendments up to fifteen (15) percent variance from the original
award which are consistent with the agreement as originally approved.
Mr. Chairperson, on behalf of the Finance Committee; I move the adoption of the foregoing
resolution.
Pernick,
Jensen.
FINANCE COMMITTEE
G. William Caddell, Chairperson
Moved by Caddell supported by Pappageorge the Personnel Committee report be accepted.
A sufficient majority having voted therefor, the report was accepted.
Moved by Caddell supported by Pappageorge the resolution be adopted.
AYES: Johnson, R. Kuhn, Luxon, McCulloch, McPherson, Moffitt,, Oaks, Olsen, Pappageorge,
Price, Rewold, Skarritt, Wolf, Aaron, Bishop, Caddell, Chester, Crake, Gosling, Huntoon,
(22)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
Misc. 90143
By Finance Committee
IN RE: Circuit Court Probation - ACCEPTANCE OF TECHNICAL ASSISTANCE FUNDING
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS this Technical Assistance Funding is for developing a comprehensive community
corrections plan for Oakland County as a means of providing meaningful community alternatives to
jail and prison confinement for offenders with unique situations; and
WHEREAS the Michigan Department of Corrections has provided 100% funding for this program
in the amount of $40,000 for the period June 1; 1990 through September 30, 1990; and
WHEREAS this funding is for Professional Planning and Consultation Services, to be provided
through contract with Oakland University, and, therefore no County personnel are required; and
WHEREAS the office of Corporation Counsel has reviewed this grant and approved it as to
legal sufficiency; and
WHEREAS acceptance of this grant does not obligate the County to any future commitment,
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners accept the
funding from the Michigan Department of Corrections in the amount of $40,000.
BE IT FURTHER RESOLVED that the following amendment be made to the 1990 adopted Budget:
Probation Community Corrections Plan - $40,000
Grant Revenue
Circuit Court Probation - $40,000
Professional Services
$-0-
FINANCE COMMITTEE
G. William Caddell, Chairperson
Moved by Caddell supported by Johnson the resolution be adopted.
AYES: R. Kuhn, Luxon, McCulloch; McPherson; Moffitt, Oaks; Olsen; Pappageorge,
Price, Rewold; Skarritt, Wolf, Aaron; Bishop, Caddell, Calandro; Chester, Crake, Gosling,
Jensen, Johnson. (23)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
Pernick,
Huntoon,
Misc. 90144
By Finance Committee
IN RE: Treasurer's Office - AUTHORIZATION FOR COUNTY TREASURER TO REPRESENT COUNTY WITH LOCAL DOWN-
TOWN DEVELOPMENT AUTHORITIES (D.D.A.), TAX INCREMENT FINANCE AUTHORITIES (T.I.F.A.) and LOCAL
DEVELOPMENT FINANCE AUTHORITIES (L.D.F.A.)
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS no representative from the County represents the County at meetings of local
182
Commissioners Minutes Continued. June 28, 1990
Downtown Development Authorities (D.D.A.), Tax Increment Finance Authorities (T.I.F.A.) and Local
Development Finance Authorities (L.D.F.A.); and
WHEREAS the County is losing millions of dollars in current and future tax revenue because
no agreements are made on the County's behalf with local D.D.A., T.I.F.A. and L.D.F.A. authorities;
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners authorizes the
' County Treasurer's office to represent the County's interest with all local Downtown Development
Authorities (D.D.A.), Tax Increment Finance Authorities (T.I.F.A.) and Local Development Authorities
(L.D.F.A.) within the County.
BE IT FURTHER RESOLVED that any proposed agreements or requests for legal action
recommended by the County Treasurer concerning any local D.D.A., T.I.F.A. and L.D.F,A. authorities
be brought to the Board of Commissioners for their approval.
BE IT FURTHER RESOLVED that all notices received by any County Official or Department be
referred to the County Treasurer.
BE IT FURTHER RESOLVED that a copy of this resolution be sent to all elected officials and
County department heads.
Mr. Chairperson, on behalf of the Finance Committee. I move the adoption of the foregoing
resolution.
FINANCE COMMITTEE
G. William Caddell, Chairperson
Moved by Caddell supported by Richard Kuhn the resolution.beadopted.
AYES: Law, Luxon, McConnell, McCulloch, McPherson, Moffitt, Oaks, Olsen, Pappageorge,
Pernick, Price, Rewold, Skarritt, Wolf, Aaron, Bishop, Caddell; Calandra, Chester, Crake, Gosling,
Huntoon, Jensen, Johnson, R. Kuhn. (25)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
Misc. 90145
By Finance Committee
IN RE: Oakland County Treasurer - INVESTMENT IN REDEVELOPMENT PROJECT IN THE CITY OF ROYAL OAK
To the Oakland County Board of Commissioners
'Mr. Chairperson, Ladies and Gentlemen:
WHEREAS the City of Royal Oak; through its Downtown Development Authority and the
Department of Economic Development, have jointly developed a plan for economic redevelopment along
the 1-696 corridor; and
WHEREAS said redevelopment is anticiapted to add over $100 million to the property tax
valuation base; and
WHEREAS that plan calls for the assembly and acquisition of approximately $11.5 million of
property; and
WHEREAS the City of Royal Oak has obtained financing for $5 million from State and Federal
sources and anticipates $1.5 million from the sell-off of a portion of the acquired land leaving a
balance of approximately $5 million; and
WHEREAS the County through its Treasurer may invest its funds in Bonds or Notes issued by
the Downtown Development Authority of Royal Oak and in accordance with the legal requirements of the
Michigan Municipal Finance Act; and
WHEREAS said investment will have the dual purpose of providing the County a fair rate of
return and of helping encourage development and avoid the possibility of urban decay; and
WHEREAS the terms of the County investment with the Downtown Development Authority may
include:
(A) A variable interest rate adjusted annually to be equivalent to the 6 month Treasury
Bill rate.
(B) Repayment to be within ten years with the County Treasurer's right to put the issue in
the sixth year.
(C) Investment is to be secured by the Limited Full Faith and Credit of the City of Royal
Oak and the acquired property with the County reserving the right to review terms and conditions of
the sale af said property including distribution of proceeds until such time the County is made
whole.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners authorizes,-
through its Treasurer, to invest up to $5 million from the General Fund in Bonds or Notes issued by
the Downtown Development Authority of the City of Royal Oak in accordance with Section 13A of Public
Act 197 of 1975 as amended.
BE IT FURTHER RESOLVED said investment be secured by the property involved as well as the
Limited Full Faith and Credit of the City of Royal Oak or bond insurance or letter of credit to the
satisfaction of the County Treasurer.
BE IT FURTHER RESOLVED that the maturity schedule and other necessary terms and conditions
of the issue be mutually agreed on by the County Treasurer and the Downtown Development Authority of
the City of Royal Oak.
BE IT FURTHER RESOLVED that the City of Royal Oak shall hereby appoint a designee of the
Commissioners Minutes Continued. June 28, 1990 183
County Treasurer as a member of the Downtown Development Authority to serve for the duration of this
agreement.
BE IT FURTHER RESOLVED the Chairperson of the Board be authorized to sign said agreement
in concurrence with the County Executive and the County Treasurer.
Mr. Chairperson, on behalf of the Finance Committee, I move the adoption of the foregoing
resolution.
FINANCE COMMITTEE
G. William Caddell; Chairperson
The Chairperson referred the resolution to the Finance Committee. There were no
objections.
Misc. 90131
By Personnel Committee
IN RE: RETIREMENT SYSTEM AMENDMENT ADJUSTMENT BENEFIT
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS Miscellaneous Resolution #88145, adopted June 9, 1988, provided the retirees from
the Oakland County Employees' Retirement System with an adjustment to their benefit levels; and
WHEREAS the Board of Commissioners periodically has reviewed and elected to grant a
discretionary increase in post retirement benefits; and
WHEREAS persons who have retired before January 1; 1989 should be granted an adjustment in
the retirement benefit of 2%, effective January 1, 1990; and
WHEREAS the necessary funds to cover the cost of this benefit will be provided from the
Reserve for Retired Benefit payments of the Oakland County Employees' Retirement System and will not
require an Appropriation from the county;
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners does hereby
amend the Oakland County Employees Retirement System by adding a new paragraph to Section 35 to
read as follows:
"Post Retirement Benefit Increases"
35.1 For a monthly benefit which became effective as of January 1, 1989,
beginning with the monthly benefit payment, if any, for the month of
January 1990, the amount of benefit shall be increased by 2% of the amount
of benefit otherwise payable for the period.
Mr. Chairperson, on behalf of the Personnel Committee, I move the adoption of the
foregoing resolution.
PERSONNEL COMMITTEE
John P. Calandro; Chairperson
Fiscal Note (Misc. 90131)
By Finance Committee
IN RE: RETIREMENT SYSTEM AMENDMENT ADJUSTMENT BENEFIT
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
Pursuant to Rule XI-G of the Board, the Finance Committee has reviewed Miscellaneous
Resolution #90131 and finds:
1) The total accrued liability for a two (2%) percent increase in the retirement benefit
for persons who have retired before July 1, 1989 amounts to $1,207,020.
2) Funds are available in the Reserve for Retired Benefit payments in the County
Employee's Retirement System to provide for this increase, therefore no additional General Fund
appropriation is necessary.
3) Implementation of the subject adjustment requires the following transfer of funds:
From:
1-73100-390-001 Employee's Retirement Reserve $(1,207,020)
To:
1-73100-380-001 County Pension Reserve Fund - General
1-73100-380-002 County Pension Reserve Fund - Sheriff
4) Recommends the Resolution be amended as follows:
a) The third "Whereas" to read "Whereas; persons who have retired before
July 1, 1989 should be granted an adjustment in the retirement benefit
of 2%; effective July 1; 1990."
b) The "Now Therefore be it Resolved" to read at Section 35.1 of the
Oakland County Employees' Retirement System, "...which became effective
as of July 1; 1989; beginning with the monthly benefit payment; if any;
for the month of July ; 1990 ..."
FINANCE COMMITTEE
G. William Caddell, Chairperson
$ 1,049,450
157;570
$ 1,207,020
$ -0-
184
Commissioners Minutes Continued. June 28, 1990
Moved by Calandro supported by Caddell the resolution be adopted.
Moved by Caddell supported by Pappageorge the resolution be amended in the 3rd WHEREAS
paragraph to change the date from January 1, 1990 to July 1; 1990. Also; in the NOW THEREFORE BE IT
RESOLVED paragraph change the date from January 1, 1989 to July 1; 1989.
Vote on amendment:
AYES: Luxon, Oaks, Olsen, Pappageorge, Pernick, Rewold, Skarritt, Wolf, Caddell, Chester,
Crake, Gosling, Huntoon, Jensen, R. Kuhn, Law. (16)
NAYS: McConnell, McPherson; Price, Aaron; Bishop, Calandro, Johnson. (7)
A sufficient majority having voted therefor; the amendment carried.
Moved by Aaron supported by Oaks the resolution be referred to the Personnel Committee for
further consideration.
Vote on referral:
AYES: McConnell, McPherson, Oaks, Olsen; Pappageorge, Pernick, Rewold, Skarritt, Wolf,
Aaron, Bishop, CaIandro, Chester, Crake, Gosling, Huntoon, Jensen, Johnson, Law, Luxon. (20)
NAYS: Price, Caddell, R. Kuhn. (3)
A sufficient majority having voted therefor, the motion to refer to the Personnel
Committee carried.
Misc. 90146
By Personnel Committee
IN RE: RECRUITMENT OF SOLID WASTE DIRECTOR
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS in accordance with Miscellaneous Resolution #89268, as amended, a Search and
Selection Committee was formed for the purpose of determining the means of advertising, interviewing
and recommending a candidate for the position of Solid Waste Director; and
WHEREAS such committee, comprised of two members of the Personnel Committee, one member of
the Planning and Building Committee, Director of Personnel and the County Executive's Designee, has
met and has interviewed several management consulting firms and is recommending the hiring of the
Par Group, based on its experience and success in management and technical recruitment; as well as
its fees and expenses not to exceed $17,000 which includes the costs of printing and traveling.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners does hereby
direct the County Executive to enter into a contract with the public management consulting firm, Par
Group, Paul A. Resume, Ltd. in an amount not to exceed $17,000, for its assistance in the successful
recruitment, interviewing, and selection of candidates for the appointment to the position of
Director of Solid Waste Management.
Mr. Chairperson, on behalf of the Personnel Committee, I move the adoption of the
foregoing resolution.
PERSONNEL COMMITTEE
John P. Calandro, Chairperson
Fiscal Note (Misc. 90146)
By Finance Committee
IN RE: RECRUITMENT OF SOLID WASTE DIRECTOR
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
Pursuant to Rule XI-G of this Board, the Finance Committee has reviewed Miscellaneous
Resolution #90146 and finds:
1) The Par Group, a public management consulting firm, has been selected by the Search &
Selection Committee to assist in the recruitment and selection of a candidate for the Position of
Director of Solid Waste Management,
2) The contract cost will not exceed $17,000,
3) Funding of $10,000 is available in the 1990 Budget of Personnel-Human Resources-
Training and Tuition Reimbursement account,
4) Funding of $7,000 is available in the 1990 Contingency Account,
5) The 1990 Biennial Budget be amended as follows:
4-10100-154 -01 -00 -3731 Training & Tuition Reimb,
4-10100-909-01-00-9900 Contingency
4-10100-154-01-00-3128 Professional Services
FINANCE COMMITTEE
G. William Caddell, Chairperson
$(10,000)
(7,000)
17,000
$ 0
185 Commissioners Minutes Continued. June 28, 1990
Moved by Calandro supported by Law the resolution be adopted.
Discussion followed.
AYES: McPherson; Moffitt; Oaks, Olsen, Pappageorge, Price, Wolf; Aaron; Bishop; Galandro,
Chester, Gosling, R. Kuhn, Law. (14)
NAYS: Pernick; kewold, Skarritt; Caddell, Crake, Huntoon, Jensen, Johnson; Luxon;
McConnell. (10)
A sufficient majority having voted therefor, the resolution was adopted.
Misc. 90147
By Planning and Building Committee
IN RE: Drain Commissioner - RESOLUTION TO APPROVE SECOND AMENDMENT TO HURON-ROUGE SEWAGE DISPOSAL
SYSTEM WALLED LAKE - NOVI WASTEWATER TREATMENT PLANT 1989 ENLARGEMENT CONTRACT AND TO AUTHORIZE THE
ISSUANCE OF BONDS
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS the County of Oakland (the "County") and the Cities of Walled Lake and Novi (the
"Cities") have entered into the Huron-Rouge Sewage Disposal Systems Walled Lake-Novi Wastewater
Treatment Plant 1989 Enlargement Contract; dated as of March 1, 1989 (the "Contract") and the First
Amendment to Huron-Rouge Sewage Disposal System. Walled Lake-Novi Wastewater Treatment Plant 1989
Enlargement Contract, dated as of March 1, 1990; pursuant to the provisions of Act No. 342; Public
Acts of Michigan, 1939, as amended ("Act 342"); and
WHEREAS it is necessary to approve a revised estimate of the cost of the project and to
approve a second amendment to the Contract; and
WHEREAS the Contract as amended provides for the issuance of bonds by the County to defray
part of the cost of acquiring and constructing the Huron-Rouge Sewage Disposal System Walled
Lake-Novi Wastewater Treatment Plant 1989 Enlargement Project, said bonds to be secured by the
contractual obligation of the City of Walled Lake to pay to the County amounts sufficient to pay the
Principal of and interest on the bonds and pay such paying agent fees and other expenses as may be
incurred on amount of the bonds; and
WHEREAS it is in the best interest of the County of Oakland that the bonds be issued and
the project be acquired and constructed.
THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF OAKLAND COUNTY, MICHIGAN, as
follows:
1. APPROVAL OF REVISED COST ESTIMATE. The revised cost estimate submitted by the County
Drain Commissioner tor the Huron -kouge Sewage Disposal System Walled Lake - Novi Wastewater
Treatment Plant 1989 Enlargement Project in the amount of $8,428,690 is approved.
2. APPROVAL OF SECOND AMENDMENT TO CONTRACT. The Second Amendment to Huron-Rouge Sewage
Disposal System Walled Lake-Novi Wastewater Treatment Plant 1989 Enlargement Contract, dated as of
June 1; 1990, among the County, by and through. the County Drain Commissioner, party of the first
part, and the Cities of Walled Lake and Novi, parties of the second part, which Second Amendment has
been submitted to this Board of Commissioners, is approved and adopted, and the County Drain
Commissioner is authorized and directed to execute and deliver the same for and on behalf of the
County, in as many counterparts as may be deemed advisable, after the Second Amendment has been
executed by the appropriate officials of the Cities. The Second Amendment reads as follows:
SECOND AMENDMENT TO HURON-ROUGE SEWAGE DISPOSAL SYSTEM
WALLED LAKE-NOVI WASTEWATER TREATMENT PLANT
1989 ENLARGEMENT CONTRACT
THIS CONTRACT, made and entered into as of the first day of June, 1990 by and among the
COUNTY OF OAKLAND, a county corporation in the State of Michigan (hereinafter sometimes referred to
as the "County"), by and through its Drain Commissioner, County Agency, party of the first part, and
the CITY OF WALLED LAKE and the CITY OF NOVI, home rule cities located in the County (hereinafter
sometimes referred to as the "Cities"), parties of the second part.
WITNESSETH:
WHEREAS the County and the Cities heretofore have entered. into the Huron Rouge Sewage
Disposal System Walled Lake - Novi Wastewater Treatment Plant 1989 Enlargement Contract (the "1989
Enlargement Contract") and the First Amendment to Huron-Rouge Sewage Disposal System Walled Lake -
Novi Wastewater Treatment Plant 1989 Enlargement Contract (the "First Amendment") pursuant to the
provisions of Act No. 342, Public Acts of Michigan; 1939; as amended; and
WHEREAS it now is necessary to amend further the 1989 Enlargement Contract.
THEREFORE in consideration of the premises and the covenants of each other, the parties
hereto agree that Section 6 of the 1989 Enlargement Contract as amended by the First Amendment is
amended to read as follows:
6. The Cities shall pay to the County the total cost of the Project (less such funds as
may become available from other sources), which total cost for this purpose shall include, in
addition to the items of the nature set forth in Exhibit B (Second Revised) (represented by the
principal amount of the bonds to be issued by the County and the cash payment to be made by the City
of Novi of its share of the cost) all interest payable by the County on said bones and all paying
agent fees and other expenses and charges (including the County Agency's administrative expenses)
186
Commissioners Minutes Continued. June 28, 1990
which are payable on account of said bonds (such fees, expenses and charges being herein called
"bond service charges"). The cost of the Project and the obligations of the Cities are allocated
between the Cities as shown on Exhibit B (Second Revised) which is attached hereto and made a part
hereof. The City of Novi shall pay its share of the cost to the County prior to the delivery of the
County bonds. Payments shall be made to the County by the City of Walled Lake in annual
-rnstallments which shall be due and payable at least thirty days prior to the day of the month
specified in the County bonds as the annual principal maturity date thereof. An annual installment
shall be paid in each year if any principal and/or non-capitalized interest on the bonds falls due
during the twelve-month period beginning on such principal maturity date in said year, and the
amount of each installment so due and payable shall be at least sufficient to pay all such principal
and/or interest thus falling doe and all bond service charges then due and payable. The County
Agency, within thirty days after delivery of the County bonds to the purchaser, shall furnish the
Treasurer of the City of Walled Lake with a complete schedule of the principal and interest
maturities thereon, and the County Agency; at least thirty days before each payment is due to be
made by the City of Walled Lake, also shall advise the City Treasurer of the amount payable to the
County on such date. If the City of Walled Lake fails to make any payment to the County when due,
the same shall be subject to a penalty of 1% thereof for each month or fraction thereof that such
amount remains unpaid after due. Failure of the County Agency to furnish the schedule or give the
notice as above required shall not excuse the City of Walled Lake from the obligation to make
payment when due. Such payments shall be made by the City of Walled Lake when due whether or not the
Project has then been completed or placed in operation. In the event that additional County bonds
shall be issued under the authority of this contract to defray a part of the cost of the Project;
the foregoing obligations shall apply to such part of the cost and to said additional bonds insofar
as appropriate thereto.
If a grant, advance or payment becomes available from the state or federal government or
any other source, each City hereby agrees to adopt such resolutions or ordinances as may be required
by state or federal laws, regulations or orders to make the County and the Project eligible to
accept and receive the grant, advance or payment, and if the terms of the grant, advance or payment
require a local contribution, each City hereby agrees to raise and make such local contribution.
THE PARTIES FURTHER AGREE that Exhibit B (Revised) shall be amended by Exhibit B (Second
Revised) which is attached hereto and by this reference is made apart hereof.
This Second Amendment to Huron-Rouge Sewage Disposal System Walled Lake - Novi Wastewater
Treatment Plant 1989 Enlargement Contract shall become effective upon its execution by each party
Thereto and the expiration of 45 days after the date or dates of publication of the notices required
by Section 5b of Act 342; provided, however, that if, within the 45-day period a proper petition is
filed with the City Clerk of a City in accordance with the provisions of said Section 5b of Act 342
then this contract shall not become effective until approved by the vote of a majority of the
electors of the City qualified to vote and voting thereon at a general or special election. This
contract shall terminate forty (40) years from the date hereof or on such earlier date as shall be
mutually agreed; provided, however, that it shall not be terminated at any time prior to the payment
in full of the principal of and interest on the County bonds together with all bond service charges
pertaining to said bonds. This contract may be executed in several counterparts. The provisions of
this contract shall inure to the benefit of and be binding upon the successors and assigns of the
parties hereto.
IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed and
delivered by the undersigned, being duly authorized by the respective governing bodies of such
parties, all as of the day and year first above written.
COUNTY OF OAKLAND
By:
CITY OF WALLED LAKE
By:
Mayor Mayor
By: By:
Clerk Clerk
3. AUTHORIZATION OF BONDS --PURPOSE. Bonds of the County aggregating the principal sum
of Two Million Six Hundred Thousand Dollars ($2,600,000) shall be issued and sold pursuant to the
provisions of Act 342, and other applicable . statutory provisions, for the purpose of defraying part
of the cost of acquiring the constructing Huron-Rouge Sewage Disposal System Walled Lake - Novi
Wastewater Treatment Plant 1989 Enlargement Project.
4. BOND DETAILS. The bonds shall be designated Huron-Rouge Sewage Disposal System Walled
Lake - Novi Wastewater Treatment Plant Enlargement Bonds; shall be dated July 1, 1990; shall be
numbered from 1 upwards; shall be fully registered; shall be in the denomination of $5,000 each or
any integral multiple thereof not exceeding the aggregate principal amount for each maturity at the
option of the purchaser thereof; shall bear interest at a rate or rates not exceeding 12% per annum
to be determined upon the sale thereof payable on May 1, 1991, and semiannually thereafter on the
first days of May and November in each year; and shall mature on May 1 in each year as follows:
1992 $ 50,000 2000 $200,000
1993 50,000 2001 200,000
County Drain Commissioner (County Agency)
CITY OF NOVI
By:
Commissioners Minutes Continued. June 28, 1990 187
IM1 01 OMB
1995 100;000 2003 300,000
1996 100;000 2004 300,000
1997 100;000 2005 330,000
1998 150,000 2006 350,000
1999 150,000
5, PAYMENT OF PRINCIPAL AND INTEREST. The principal of and interest or the bonds shall
be payable in Tiwful money of the United States. Principal shall be payable upon presentation and
surrender of the bonds to the bond registrar and paying agent as they severally mature. Interest
shall be paid to the registered owner of each bond as shown on the registration books at the close
of business on the 15th day of the calendar month preceding the month in which the interest payment
is due. Interest shall be paid when due by check or draft drawn upon and mailed by the bond
registrar and paying agent to the registered owner at the registered address.
6. PRIOR REDEMPTION. Bonds maturing prior to May 1, 2000 shall not be subject to
redemption prior to maturity. Bonds maturing on and after May 1, 2000 shall be subject to
redemption prior to maturity upon the terms and conditions set forth in the form of bond contained
in Section 10 hereof.
7. BOND REGISTRAR AND PAYING AGENT. The County Treasurer shall designate, and may enter
into an agreement with; a bond registrar and paying agent for the bonds which shall be a bank or
trust company located in the State of Michigan which is qualified to act in such capacity under the
laws of the United States of America or the State of Michigan. The County Treasurer may from time
to time as required designate a similarly qualified successor bond registrar and paying agent.
8. EXECUTION, AUTHENTICATION AND DELIVERY OF BONDS. The bonds shall be executed in the
name of the County by the facsimile signatures of the Chairman of the Board of Commissioners and the
County Clerk and authenticated by the manual signature of an authorized representative of the bond
registrar and paying agent, and the seal of the County (or a facsimile thereof) shall be impressed
or imprinted on the bonds. After the bonds have been executed and authenticated for delivery to the
original purchaser thereof, they shall be delivered by the County Treasurer to the purchaser upon
receipt of the purchase price. Additional bonds bearing the facsimile signatures of the Chairman of
the Board of Commissioners and the County Clerk and upon which the seal of the County (or a
facsimile thereof) is impressed or imprinted may be delivered to the bond registrar and paying agent
for authentication and delivery in connection with the exchange or transfer of bonds, The bond
registrar and paying agent shall indicate on each bond the date of its authentication.
9. EXCHANGE AND TRANSFER OF BONDS. Any bond; upon surrender thereof to the bond
registrar and paying agent with a written instrument of transfer satisfactory to the bond registrar
and paying agent duly executed by the registered owner or his duly authorized attorney, at the
option of the registered owner thereof; may be exchanged for bonds of any other authorized
denominations of the same aggregate principal amount and maturity date and bearing the same rate of
interest as the surrendered bond.
Each bond shall be transferable only upon the books of the County, which shall be kept for
that purpose by the bond registrar and paying agent; upon surrender of such bond together with a
written instrument of transfer satisfactory to the bond registrar and paying agent duly executed by
the registered owner or his duly authorized attorney.
Upon the exchange or transfer of any bond, the bond registrar and paying agent on behalf
of the County shall cancel the surrendered bond and shall authenticate and deliver to the transferee
a new bond or bonds of any authorized denomination of the same aggregate principal amount and
maturity date and bearing the same rate of interest as the surrendered bond. If; at the time the
bond registrar and paying agent authenticates and delivers a new bond pursuant to this section,
payment of interest on the bonds is in default; the bond registrar and paying agent shall endorse
upon the new bond the following: "Payment of interest on this bond is in default. The last date to
which interest has been paid is
The County and the bond registrar and paying agent may deem and treat the person in whose
name any bond shall be registered upon the books of the County as the absolute owner of such bond,
whether such bond shall be overdue or not; for the purpose of receiving payment of the principal of
and interest on such bond and for all other purposes, and all payments made to any such registered
owner; or upon his order, in accordance with the provisions of Section 5 of this resolution shall be
valid and effectual to satisfy and discharge the liability upon such bond to the extent of the sum
or sums so paid; and neither the County nor the bond registrar and paying agent shall be affected by
any notice to the contrary, The County agrees to indemnify and save the bond registrar and paying
agent harmless from and against any and all loss, cost; charge; expense; judgment or liability
incurred by it, acting in good faith and without negligence hereunder; in so treating such
registered owner.
For every exchange or transfer of bonds; the County or the bond registrar and paying agent
may make a charge sufficient to reimburse it for any tax; fee or other governmental charge required
to be paid with respect to such exchange or transfer, which sum or sums shall be paid by the person
requesting such exchange or transfer as a condition precedent to the exercise of the privilege of
making such exchange or transfer.
The bond registrar and paying agent shall not be required to transfer or exchange bonds or
portions of bonds which have been selected for redemption.
10. FORM OF BONDS. The bonds shall be in substantially the following form:
Ion
Commissioners Minutes Continued. June 28, 1990
INTEREST RATE
UNITED STATES OF AMERICA
STATE OF MICHIGAN
COUNTY OF OAKLAND
HURON-ROUGE SEWAGE DISPOSAL SYSTEM
WALLED LAKE - NOVI WASTEWATER
TREATMENT PLANT ENLARGEMENT BOND
MATURITY DATE DATE OF ORIGINAL ISSUE CUSIP
July 1, 1990
Registered Owner
Principal Amount
The County of Oakland, State of Michigan, (the 'County"), acknowledges itself indebed to,
and for value received, hereby promises to pay to the Registered Owner identified above, or
registered assigns, the Principal Amount set forth above on the Maturity Date specified above,
unless redeemed prior thereto as hereinafter provided, upon presentation and surrender of this bond
at in the City of , Michigan, the bond registrar and
paying agent, and to pay to the Registered Owner, as shown on the registration books at the close of
business on the 15th day of the calendar month preceding the month in which an interest payment is
due, by check or draft drawn upon and mailed by the bond registrar and paying agent by first class
mail postage prepaid to the Registered Owner at the registered address, interest on such Principal
Amount from the Date of Original Issue or such later date through which interest shall have been
paid until the County's obligation with respect to the payment of such Principal Amount is
discharged at the rate per annum specified above. Interest is payable on the first days of May and
November in each year, commencing on May 1, 1991. Principal and interest are payable in lawful
money of the United States of America.
This bond is one of a series of bonds aggregating the principal sum of Two Million Six
Hundred Thousand Dollars ($2,600,000) issued by the County under and pursuant to and in full
conformity with the Constitution and Statutes of Michigan (especially Act No. 342, Public Acts of
1939; as amended) and a bond authorizing resolution adopted by the Board of Commissioners of the
County (the 'Resolution") for the purpose of defraying part of the cost of acquiring and
constructing improvements and enlargements to the Huron-Rouge Sewage Disposal System Walled Lake -
Novi Wastewater Treatment Plant. The bonds of this series are issued in anticipation of payments to
be made by the City of Walled Lake in the aggregate principal amount of Two Million Six Hundred
'Thousand Dollars ($2,600,000) pursuant to a contract among the County, the City of Walled Lake, and
the City of Novi dated as of March 1, 1989; as amended by amendments dated March 1, 1990 and June 1,
1990. The full faith and credit of the City of Walled Lake have been pledged to the prompt payment
of the foregoing amount and the interest thereon as the same become due. As additional security the
full faith and credit of the County have been pledged for the prompt payment of the principal of and
interest on the bonds of this series. Taxes levied by the City and the County to pay the principal
of and interest on the bonds of this series are subject to constitutional tax limitations.
This bond is transferable, as provided in the Resolution, only upon the books of the
County kept for that purpose by the bond registrar and paying agent, upon the surrender of this bond
together with a written instrument of transfer satisfactory to the bond registrar and paying agent
duly executed by the registered owner or his attorney duly authorized in writing. Upon the exchange
or transfer of this bond a new bond or bonds of any authorized denomination, in the same aggregate
principal amount and of the same interest rate and maturity, shall be authenticated and delivered to
the transferee in exchange therefor as provided in the Resolution, and upon payment of the charges,
if any, therein provided. Bonds so authenticated and delivered shall be in the denomination of
$5,000 or any integral multiple thereof not exceeding the aggregate principal amount for each
maturity.
The bond registrar and paying agent shall not be required to transfer or exchange bonds or
portions of bonds which have been selected for redemption.
Bonds maturing prior to May 1, 2000 are not subject to redemption prior to Maturity.
Bonds maturing on and after May 1; 2000; are subject to redemption prior to maturity at the option
of the County, in such order as shall be determined by the County; on any one or more interest
payment dates on and after May 1, 1999. Bonds of a denomination greater than $5,000 may be
partially redeemed in the amount of $5,000 or any integral multiple thereof. If less than all of
the bonds maturing in any year are to be redeemed, the bonds or portions of bonds to be redeemed
shall be selected by lot. The redemption price shall be the par value of the bond or portion of the
bond called to be redeemed plus interest to the date fixed for redemption and a premium as follows:
it of the par value if called for redemption on or after May 1, 1999; but
prior to May 1, 2003;
f% of the par value if called for redemption on or after May 1, 2003; but
prior to May 1, 2005;
No premium if called for redemption on or after May l', 2005.
Not less than thirty days' notice of redemption shall be given to the holders of bonds
called to be redeemed by mail to the registered holder at the registered address. Bonds or portions
of bonds called for redemption shall not bear interest after the date fixed for redemption, provided
funds are on hand with the bond registrar and paying agent to redeem the same.
It is hereby certified, recited and declared that all acts, conditions and things required
Commissioners Minutes Continued. June 28, 1990 189
to exist; happen and be performed precedent to and in the issuance of the bonds of this series;
existed; have happened and have been performed in due time, form and manner as required by law; and
that the total indebtedness of said County; including the series of bonds of which this bond is one,
does not exceed any constitutional or statutory limitation.
IN WITNESS WHEREOF; the County of Oakland; Michigan; by its 'Board of Commissioners; has
caused this bond to be executed in its name by facsimile signatures of the Chairman of the Board of
Commissioners and the County Clerk and its corporate seal (or a facsimile thereof) to be impressed
or imprinted hereon. This bond shall not be valid unless the Certificate of Authentication has been
manually executed by an authorized representative of the bond registrar and paying agent.
COUNTY OF OAKLAND
(SEAL)
By: By:
County Cqrk
Chairman; Board of Commissioners
CERTIFICATE OF AUTHENTICATION
This bond is one of the bonds described in the within-mentioned Resolution.
Bond Registrar and Paying Agent
By:
Authorized Representative
AUTHENTICATION DATE:
ASSIGNMENT
For value received; the undersigned hereby sells, assigns and transfers unto
(please print or type name, address and taxpayer identification number of transferee) the within
bond and all rights thereunder and does hereby irrevocably constitute and appoint
attorney to transfer the within bond on the books kept for registration thereof, with full power of
substitution in the premises.
Dated:
Signature Guaranteed
The signature must be guaranteed by a commerical bank, a trust company or a brokerage firm which is
a member of a major stock exchange.
11. SECURITY. The bonds shall be issued in anticipation of payments to be made by the
City of Walled Lake pursuant to the Contract, as amended. The bonds shall be secured primarily by
the full faith and credit pledge made by the City of Walled Lake in the Contract as amended pursuant
to the authorization contained in Act 342. As additional and secondary security the full faith and
credit of the County are pledged for the prompt payment of the principal of and interest on the
bonds as the same shall become due. If the City of Walled Lake shall fail to make payments to the
County which are sufficient to pay the principal of and interest on the bonds as the same shall
become due, an amount sufficient to pay the deficiency shall be advanced from the general fund of
the County.
12. PRINCIPAL AND INTEREST FUND. There shall be established for the bonds a Principal and
Interest Fund which shall be kept in a separate bank account. From the proceeds of the sale of the
bonds there shall be set aside in the Principal and Interest Fund any premium and accrued interest
received from the purchaser of the bonds at the time of delivery of the same. All payments received
from the City of Walled Lake pursuant to the Contract as amended are pledged for payment of the
principal of and interest on the bonds and expenses incidental thereto and as received shall be
placed in the Principal and Interest Fund.
13. CONSTRUCTION FUND. The remainder of the proceeds of the sale of the bonds shall be
set aside in a construction fund and used to acquire and construct the Walled Lake-Novi Wastewater
Treatment Plant 1989 Enlargement Project in accordance with the provisions of the.Contract. All
moneys received from the City of Novi for the cost of the project also shall be placed in the
construction fund.
14. APPROVAL OF MICHIGAN DEPARTMENT OF TREASURY--EXCEPTION FROM PRIOR APPROVAL. The
issuance and sale of the bonds shall be subject to permission being granted therefor by the
Department of Treasury of the State of Michigan or an exception from prior approval being granted by
the Department of Treasury and the County Drain Commissioner -and the County Treasurer are each
hereby severally authorized to file with the Department of Treasury a Notice of Intent to Issue an
Obligation with respect to the bonds and to pay; upon the filing of said notice, the filing fee of
$400. If an exception from prior approval is not granted the County Drain Commissioner or the
County Treasurer shall make application to the Department of Treasury for permission to issue and
sell the bonds as provided by the terms of this resolution and for approval of the form of Notice of
Sale.
15. REDUCTION OF PRINCIPAL AMOUNT OF BOND ISSUE. If the County Drain Commissioner shall
determine that it is not necessary to sell bonds in the principal amount of Two Million Six Hundred
Thousand Dollars ($2,600,000), he may by order reduce the principal amount of bonds to be sold to
that amount deemed necessary. In the event the principal amount of the bond issue is reduced
pursuant to this section, the County Drain Commissioner shall reduce the amount of bonds maturing in
any one or more years as necessary.
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Commissioners Minutes Continued. June 28, 1990
16. SALE; ISSUANCE, DELIVERY; TRANSFER AND EXCHANGE OF BONDS. The County Drain Commissioner
is authorized to prescribe the form of notice of sale for the bonds, to sell the bonds at not
less than 98% of par plus accrued interest in accordance with the laws of this state and to do
all things necessary to effectuate the sale, issuance, delivery, transfer and exchange of the
bonds in accordance with the provisions of this resolution.
The County Drain Commissioner is authorized to cause the preparation of an official
statement for the bonds for purposes of compliance with Rule 15c2-12 issued under the Securities
Exchange Act of 1934, as amended (the "Rule") and to do all other things necessary to comply
with the Rule. After the award of the bonds, the County will provide copies of a 'final official
statement" (as defined in paragraph (e)(3) of the Rule) on a timely basis and in reasonable quantity
as requested by the successful bidder or bidders to enable such bidder or bidders to comply with
paragraph (b)(4) of the rule and the rules of the Municipal Securities Rulemaking Board.
17. TAX COVENANT. The County covenants to comply with all requirements of the Internal
Revenue Code of 1986, as amended, necessary to assure that the interest on the bonds will be and
will remain excludable from gross income for federal income tax purposes. The County Drain
Commissioner and other appropriate County officials are authorized to do all things necessary
(including the making of covenants of the County) to assure that the interest on the bands will be
and will remain excludable from gross income for federal income tax purposes.
18. CONFLICTING RESOLUTIONS. All resolutions and parts of resolutions insofar as they
may be in conflict herewith are rescinded.
Mr. Chairperson, on behalf of the Planning and Building Committee; I move the adoption of
the foregoing resolution.
PLANNING AND BUILDING COMMITTEE
Larry P. Crake, Chairperson
Fiscal Note (Misc. 90147)
By Finance Committee
IN RE: Drain Commissioner - RESOLUTION TO APPROVE SECOND AMENDMENT TO HURON-ROUGE SEWAGE DISPOSAL
SYSTEM WALLED LAKE-NOVI WASTEWATER TREATMENT PLANT 1989 ENLARGEMENT CONTRACT AND TO AUTHORIZE THE
ISSUANCE OF BONDS
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
Pursuant to Rule XI-G of this Board; the Finance Committee has reviewed Miscellaneous
.Resolution #90147 and finds:
1) The resolution authorizes the issuance of tax-exempt Act 342 bonds with the County
pledging its full-faith and credit as the secondary obligator.
2) The primary obligator is the City of Walled Lake, pledging its full-faith and credit.
3) The obligations of the County and the City are limited tax obligations.
4) The principal amount of the bond issue is $2,600,000 at an interest rate not to exceed
5) The statutory limit for County debt is $2,339,540,375 (10% of 1989 State Equalized
Value). As of May 31, 1990, the outstanding debt is $345,614,756 or approximately 1.5% of the
S.E.V.
6) No budget amendments are necessary.
FINANCE COMMITTEE
G. William Caddell, Chairperson
Moved by Crake supported by Caddell the resolution be adopted.
AYES: Moffitt, Oaks, Pappageorge, Pernick, Price, Rewold, Skarritt, Wolf, Aaron, Bishop,
Caddell, Calandra, Chester, Crake, Gosling, Huntoon, Johnson; R. Kuhn, Law, Luxon, McConnell,
McPherson. (22)
NAYS: Jensen. (1)
A sufficient majority having voted therefor, the resolution was adopted.
Misc. 90148
By Planning and Building Committee
IN RE: Drain Commissioner - RESOLUTION TO AUTHORIZE FINANCING OF SEGMENT 3 OF NORTH HURON VALLEY/
ROUGE VALLEY WASTEWATER CONTROL SYSTEM FACILITIES
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS the County of Oakland has, by acting in cooperation with the County of Wayne and
the local units of government in the Wayne County Rouge Valley Sewage Disposal System, acquired
capacity in the Rouge Valley System existing facilities and in additions thereto constructed and to
be constructed by Wayne County under the Wayne County-Oakland County, Construction, Finance, and
Service Agreement dated February 1, 1988, as amended by an Amendment to the Agreement dated as of
November 1, 1988, and a Second Amendment to the Agreement dated as of August 1, 1989 (collectively,
the "AGREEMENT"), to which there is submitted herewith a Third Amendment to the AGREEMENT to be
dated as of March 6, 1990, including revised Exhibits E-1, E-2 and E-3 dated May 15, 1990; and
Exhibits F and H dated March 6, 1990 (collectively the "AMENDMENT"), which AMENDMENT contains
changes to provide for the financing, construction and operation of Segment 3 of the North Huron
12%.
Commissioners Minutes Continued. June 28, 1990 191
Valley/Rouge Valley Wastewater Control System facilities; and
WHEREAS the City of Novi (the "OAKLAND LOCAL UNIT") has approved the AMENDMENT and has
authorized the County of Oakland to approve and adopt the same on its belalf; and
WHEREAS a Contract has been executed and delivered between the County of Oakland and the
OAKLAND LOCAL UNIT as related to the AGREEMENT, dated of February 1, 1958; including revised
Exhibits A, B, E-1, B-2 and 8-3 thereto (collectively; the "CONTRACT"), vInich CONTRACT provides for
the acquisition of capacity in Wayne County and City of Detroit sewas , traAsportation and treatment
facilities pursuant to the AGREEMENT and allocates capacity and shares of cost of the additional
facilities in order to provide additional interceptor and treatment capacity for the OAKLAND LOCAL
UNIT; and
WHEREAS it now is necessary for Oakland County and the OAKLAND LOCAL UNIT to approve and
adopt revised exhibits B and 8-3 to the CONTRACT; as submitted herewith; which contain changes
consistent with the AMENDMENT; and
WHEREAS the OAKLAND LOCAL UNIT has approved and adopted said revised exhibits.
NOW THEREFORE BE IT RESOLVED by the Board of Commissioners of Oakland County; Michigan; as
follows:
1. The Board of Commissioners does hereby approve and adopt the AMENDMENT, in
substantially the form submitted herewith; and Exhibit B (Third Revised) and Exhibit 8-3 (Revised);
each dated May 23, 1990, to the CONTRACT.
2. The AGREEMENT is hereby so amended and the Oakland County Drain Commissioner as County
Agency is hereby authorized and directed to execute the AMENDMENT and tak.e such steps as necessary
in order to effectuate the AMENDMENT • and to endorse on Exhibit 5 (Third Revised) and Exhibit 6-3
(Revised) to the CONTRACT, as attached to this resolution; on behalf of the County of Oakland, that
the same have been approved and adopted.
Mr. Chairperson, on behalf of the Planning and Building Committee, I move the adoption of
the foregoing resolution.
PLANNING AND BUILDING COMMITTEE
Larry P. Crake; Chairperson
Copy of Exhibits and Third Amendment Agreement on file in County Clerk's Office.
Moved by Crake supported by Calandro the resolution be adopted.
AYES: Oaks; Olsen, Pappageorge; Pernick; Price, Rewold, Skarritt; Wolf; Aaron; Bishop,
Caddell; Calandro; Chester; Crake; Gosling; Huntoon, Jensen; Johnson, R. Kuhn; Law; Luxon;
McConnell, Moffitt. (23)
NAYS; None. (0)
A sufficient majority having voted therefor; the resolution was adopted.
Misc. 90149
By Planning and Building Committee
IN RE: Drain Commissioner - WEST BLOOMFIELD WATER SUPPLY SYSTEM SECTION XIII - RESOLUTION TO
ESTA3LISH SYSTEM AND APPROVE CONTRACT
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS the County of Oakland (the "County") heretofore has established the West
Bloomfield Water Supply System (the "System") pursuant to the provisions of Act No. 185; Public Acts
of Michigan; 1957; as amended; and has acquired and constructed several sections of the System
pursuant to contracts between the County and the Charter Township of West Bloomfield (the
"Township"); and
WHEREAS it is now necessary to improve, enlarge and extend the System by-the acquisition
and construction of the hereinafter described West Bloomfield Water Supply System Section XIII; and
WHEREAS by the terms of Act 342, Public Acts of Michigan, 1939, as amended ("Act 342"),
the County and the Township are authorized to enter into a contract for the acquisition,
construction and financing of the West Bloomfield Water Supply System Section XIII consisting of
water supply facilities to serve the Township and for the pavrtant cf the cost thereof by the
Township; with interest; and the County is then authorized to issue its bonds to provide the funds
necessary therefor; and
WHEREAS there has been submitted to this Board of Commissioners a proposed contract
between the County; by and through the County Drain Commissioner, County Agency; party of the first
part, and the Township; party of the second part (the "Contract"), which Contract provides for the
acquisition, construction and financing of the West Bloomfield Water Supply System Section XIII; and
which Contract is hereinafter set forth in full; and
WHEREAS there also have been submitted for approval and adoption by this Board of
Commissioners; preliminary plans; specifications and estimates of the cost and period of usefulness
of the West Bloomfield Water Supply System Section XIII,
THEREFORE BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF OAKLAND COUNTY, MICHIGAN; as
follows:
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Commissioners Minutes Continued. June 28, 1990
1. ESTABLISHMENT OF SYSTEM AND DESIGNATION OF COUNTY AGENCY. This Board of Commissioners
by majority vote of its members-elect hereby authorizes and directs that there be established, and
there hereby is established, under and pursuant to Act 342; a system of water supply facilities to
be known as the "West Bloomfield Water Supply System Section XIII'," which shall consist of water
supply facilities to serve the Township as specified and to be located as shown in Exhibit A to the
Contract; that the Oakland County Drain Commissioner is designated and appointed as the 'County
Agency" for the West Bloomfield Water Supply System Section XIII; that the County Agency shall have
all the powers and duties with respect to the West Bloomfield Water Supply System Section XIII as
are provided by law and especially oy Act 342; and that all obligations incurred by the County
Agency with respect to the West Bloomfield Water Supply System Section XIII, unless otherwise
authorized by this Board of Commissioners, shall be payable solely from funds derived from the
Township in accordance with the Contract.
2, PLANS AND SPECIFICATIONS - ESTIMATES OF PERIOD OF USEFULNESS AND COST. The
Preliminary plans and speci ications or the West • corn le d Water upp y System ection XIII and
the estimates of 5680,000 as the cost thereof and of 30 years and upwards as the period of
usefulness thereof, as submitted to this Board of Commissioners, be and the same are approved and
adopted.
3. APPROVAL OF CONTRACT. The West Bloomfield Water Supply System Section XIII Contract
dated as of August 1, 1990 between the CoLlity, by and through the County Drain Commissioner, County
Agency, party of the first part, and the Township, party of the second part, which Contract has been
submitted to this Board of Commissioners; be and the same is approved and adopted, and the County
Drain Commissioner is authorized and directed to execute and deliver the same for and on behalf of
the county; in as many counterparts as may be deemed advisable, after the Contract has been executed
by the appropriate officials of the Townhip. The Contract reads as follows:
WEST BLOOMFIELD WATER SUPPLY SYSTEM
SECTION XIII CONTRACT
THIS CONTRACT, made and entered into as of the first day of August, 1990 and between the
COUNTY OF OAKLAND, a county corporation in the State of Michigan hereinafter sometimes referred to
as the "County"), by and through its Drain Commissioner, County Agency; party of the first part, and
the CHARTER TOWNSHIP OF WEST BLOOMFIELD; a charter township located in the County (hereinafter
sometimes referred to as the "Township"), party of the second part.
WITNESSETH:
WHEREAS the County has established the West Bloomfield Water Supply System (the "System")
'pursuant to the provisions of Act No. 185; Public Acts of Michigan, 1957; as amended; and has
constructed and acquired several sections of the System pursuant to contracts between the County and
the Township; and
WHEREAS it is now necessary to improve; enlarge and extend the System by the acquisition
and construction of the hereinafter described water supply facilities; and
WHEREAS pursuant to Act No. 342; Public Acts of Michigan; 1939; as amended (hereinafter
sometimes referred to as "Act 342"); the County is authorized; through the Oakland County Drain
Commissioner as County Agency, to improve, enlarge and extend the System by the acquisition and
construction of the water supply facilities hereinafter described as constituting the West
Bloomfield Water Supply System Section XIII, the County and the Township are authorized to enter
into a contract; as hereinafter provided; for the acquisition and construction of the water supply
facilities by the County and for financing all or part of the cost thereof by the issuance of bonds
by the County secured by the pledge of the full faith and credit of the Township to pay such cost
with interest to the County in installments extending over a period not exceeding forty (40) years
and the County is authorized to issue such bonds and; if authorized by majority vote of the member
elect of its Board of Commissioners; to pledge its full faith and credit for the payment of the
principal of and interest on the bonds; and
WHEREAS there is an urgent need for such water supply facilities to provide the means of
supplying water to the residents of the Township; and thus to promote the health and welfare of such
residents, which facilities would likewise benefit the County and its residents, and the parties
hereto have concluded that the facilities can be provided and financed most economically and
efficiently by the County through the exercise of the powers conferred by Act 342, and especially
Sections 5a; 5b and Sc thereof; and
WHEREAS preliminary plans for the water supply facilities and also estimates of the cost
and the period of usefulness thereof have been prepared by Hubbell, Roth & Clark, Inc. (hereinafter
sometimes referred to as the consulting engineers), and have been submitted to and approved by the
Board of Commissioners of the County and the Board of the Township and placed on file in the office.
of the County Agency, said estimates being set forth in Exhibit B hereunto attached; and
WHEREAS in order to provide for the acquisition and construction of the water supply
facilities by the County and the financing of the cost thereof by the issuance of County bonds, and
for other related matters it is necessary for the parties hereto to enter into this contract.
THEREFORE; IN CONSIDERATION OF THE PREMISES AND THE COVENANTS OF EACH OTHER, THE PARTIES
HERETO AGREE AS FOLLOWS:
1. The parties hereto hereby approve and agree to the establishment; acquisition;
construction and financing of the West Bloomfield Water Supply System Section XIII (hereinafter
sometimes referred to as the "Project') as herein provided; under and pursuant to Act 342. The
Township by way of compliance with Section 29, Article VII, Michigan Constitution of 1963; consents
and agrees to the establishment and location of the Project within its corporate boundaries and to
the use by the County of its streets, highways, alleys, lands; rights-of-way or other public places
for the purpose and facilities of the Project and any improvements; enlargements and extensions
(..ommissioners minuues 1.,ontioueo. done 8, 1990 193
thereof; and the" Townshipfurther agrees that; in order to evidence and effectuate the foregoing
agreement and consent, it will execute and deliver to the County such grants of easement',
right-of-way, license, permit or consent as may be requested by the County.
2. The Project shall consist of the water supply facilities shown on Exhibit A which is
hereunto attached and which is hereby made a part hereof; and as are more particularly set forth in
the preliminary plans which have been prepared and submitted by the consulting engineers, which .
plans are on file with the County Agency and are approved and adopted. The Project shall be
acquired and constructed substantially in accordance with the preliminary plans and in accordance
with final plans and specifications to be prepared and submitted by the consulting engineers but
variations therefrom which do not materially change the location, capacity or overall design of the
Project, and which do not require an increase in the total estimated cost of the Project, may be
permitted on the authority of the county Agency. Other variations or changes may be made if
approved by the County Agency and by resolution of the Township Board and if provisions required by
paragraph 8 hereof are made for payment or financing of any resulting increase in the total
estimated cost. The estimate of cost of the Project and the estimate of the period of usefulness
thereof as set forth in Exhibit 3 are approved and adopted.
3. The County Agency shall take or cause to be taken all actions required or necessary,
in accordance with Act 342 5 to procure the issuance and sale of bonds by the County, in one or more
series, in whatever aggregate principal amount is necessary to be so financed to defray that part of
the total cost of the Project which is in excess of funds available from other sources. The bonds
shall be issued in anticipation of, and be payable primarily from, the payments to he made by the
Township to the County as provided in this contract and shall be secured secondarily, if so voted by
the Board of Commissioners of the county, by the pledge of the full faith and credit of the County.
The bonds shall be payable in annual maturities the last of which shall be not more than forty years
from the date thereof.
4. The County Agency shall proceed to take construction bids for the Project and, subject
to the sale and delivery of bonds, enter into construction contracts with the lowest responsive and
responsible bidder or bidders, procure from the contractors all necessary and proper bonds and
insurance, cause the Project to be constructed within a reasonable time and do all other things
required by this contract and the laws of the State of Michigan and the United States of America.
All certificates for required payments to contractors shall be approved by the consulting engineers
before presentation to the County Agency and the latter shall be entitled to reply on such approval
in making payment.
The County hereby agrees that it will secure and maintain, or cause to be secured and
maintained, during the period of construction adequate property damage and public liability
insurance covering all facilities to be constructed pursuant to this contract. All policies and
memorandums of insurance shall provide that the County and the Township shall be insured parties
thereunder and shall contain a provision requiring that the Township be notified at least ten days
prior to cancellation thereof. One copy of each policy and memorandum of insurance shall be filed
with the Township.
5. It is understood and agreed by the parties hereto that the Project is to serve the
Township and not the individual property owners and users thereof, unless by special arrangement
between the County Agency and the Township. The responsibility for requiring connection to and use
of the Project and providing such additional facilities as may be needed shall be that of the
Township which shall cause to be constructed and maintained, directly or through the County, any
such necessary additional facilities. The County shall not be obligated to acquire or construct any
facilities other than those designated in paragraph 2 hereof.
6. The Township shall pay to the County the total cost of the Project (less such funds as
may become available from other sources), which total cost for this purpose shall include, in
addition to the items of the nature set forth in Exhibit 9 (represented by the principal amount of
the bonds to be issued by the County plus such funds as may become available from other sources),
all interest payable by the County on the bonds and all paying agent fees and other expenses and
charges (including the County Agency's administrative expenses) which are payable on account of the
bonds (such fees, expenses and charges being herein called "bond service charges"). Payments shall
be made to the County in annual installments which shall be due and payable at least thirty days
prior to the day of the month specified in the County bonds as the annual principal maturity date
thereof. An annual installment shall be paid in each year that any principal and/or non-capitalized
interest on the bonds falls due during the twelve-month period beginning on the principal maturity
date in said year, and the amount of each installment so due and payable shall be at least
sufficient to pay all such principal and/or interest thus falling due and all bond service charges
then due and payable. The County Agency, within thirty days after delivery of the County bonds to
the purchaser, shall furnish the Township Treasurer with a complete schedule of the principal and
interest maturities thereon, and the County Agency also, at least thirty days before each payment is
due to be made by the Township, shall advise the Township Treasurer of the amount payable to the
county on such date. If the Township fails to make any payment to the County when due, the same
shall be subject to a penalty of 1% thereof for each month or fraction thereof that such amount
remains unpaid after due. Failure of the County Agency to furnish the schedule or give the notice
as above required shall not excuse the Township from the obligation to make payment when due.
Payments shall be made by the Township when due whether or not the Project has been then completed
or placed in operation. In the event that additional County bonds shall be issued under the
authority of this contract to defray a part of the cost of the Project, the foregoing obligations
shall apply to such part of the cost and to said additional bonds insofar as appropriate thereto.
7. The Township may pay in advance any amount payable to the County pursuant to this
contract and in that event shall be credited therefor on future-due amounts as may be agreed by the
194
Commissioners Minutes Continued. June 28, 1990
parties hereto. The Township also may pay in advance any one or more installments or any part
thereof (a) by surrendering to the County bonds of like principal amount or (b) by paying to the
County in cash the principal amount of any bonds which are subject to redemption prior to maturity,
plus all interest thereon to the first date upon which the bonds may be called for redemption and
plus all applicable call premiums and bond service charges, and in such event the County Agency
hall call said bonds for redemption at the earliest possible date. The installments or parts
thereof so prepaid shall be deemed to be the installments or parts thereof falling due in the same
calendar year as the maturity dates of the bonds surrendered or called for redemption and bonds so
surrendered or redeemed shall be cancelled.
B. In the event that it shall become necessary to increase the estimated cost of the
Project as hereinbefore stated, or if the actual cost of the Project shall exceed the estimated
cost, whether as the result of variations or changes permitted to be made in the approved plans or
otherwise, then (without execution of any further contract or amendment of this contract) the
Township Board, by resolution adopted within fifteen days after the receipt of construction bids,
may direct that a portion of the Project be deleted sufficient to reduce the total cost to an amount
which shall not exceed the total estimated cost as hereinbefore stated by more than 5%, provided that
such deletion shall not materially change the general scope, overall design and purpose of the
Project, or in the absence of the adoption of such a resolution the Township shall pay or procure
the payment of the increase or excess in cash, or County bonds in an increased or additional amount
shall (upon adoption of an authorizing resolution therefor by the Board of Commissioners) be issued
to defray such increased or excess cost, to the extent that funds therefor are not available from
other sources: Provided, however, that no such increase or excess shall be approved and no such
increased or additional County bonds shall be authorized to be issued, nor shall the County enter
into any contract for acquisition or construction of the Project or any part thereof or incur any
obligation for or pay any item of cost therefor, where the effect thereof would be to cause the
total cost of the Project to exceed by more than 5% its total estimated cost as hereinbefore stated,
unless the Township Board previously shall have adopted a resolution approving such increase or
excess and agreeing that the same (or such part thereof as is not available from other sources)
shall be paid or its payment procured by the Township in cash or be defrayed by the issuance of
increased or additional County bonds in anticipation of increased or additional payments agreed to
be made by the Township to the County in the manner hereinbefore provided: Provided, further, that
the adoption of such resolution by the Township Board shall not be required prior to or as a
condition precedent to the issuance of additional bonds by the County if the County previously has
'issued or contracted to sell bonds to pay all or part of the cost of the Project and the issuance of
the additional bonds is necessary (as determined by the County) to pay such increased, additional or
excess costs as are essential to completion of the Project according to the plans as last approved
prior to the time when the previous bonds were issued or contracted to be sold.
9. If the actual cost of the Project is less than the total estimated cost, any surplus
available to the County from the sale of County bonds, at the option of the Township Board, shall be
used to improve, enlarge or extend the System, to apply upon future payments due to the County, to
redeem bonds or to purchase bonds on the open market, provided that such surplus shall be used to
improve, enlarge or extend the System only if authorized by the Board of Commissioners. Any such
surplus, if used to improve, enlarge or extend the System, may be supplemented by cash payments to
be made by the Township, or improvements, enlargements or extensions may be financed entirely from
such cash payments if authorized by the Township Board. If the surplus is used to redeem or
purchase bonds, the bonds shall be cancelled, and the payments thereafter required to be made by the
Township to the County shall be reduced so as to reflect the resulting saving of interest and the
payment required to be made in the calendar year of the stated maturity of the bonds shall be
reduced by the principal amount thereof.
10. Should the Township fail for any reason to pay the County at the times specified the
amounts herein required to be paid, the Township hereby authorizes the State Treasurer or other
official charged with the disbursement of unrestricted state funds returnable to the, Township
pursuant to the Michigan constitution to withhold sufficient funds to make up any default or
deficiency in the amounts paid. If the full faith and credit of the County is pledged for the
prompt payment of the principal of and interest on the bonds to be issued by the County and if the
County is required to advance any money by reason of such pledge on account of the delinquency of
the Township, the County Treasurer is authorized to notify the State Treasurer to deduct the amount
of money so advanced by the County from any unrestricted moneys in the State Treasurer's possession
belonging to the Township and to pay such amount to the County.
The foregoing shall not operate to limit the County's right to pursue any other legal
remedies for the reimbursement of moneys advanced on account of the default of the Township.
11. The Township; pursuant to the authorization of Section 5a of Act No. 342, pledges its
full faith and credit for the prompt and timely payment of its obligations expressed in this
contract and each year shall levy a tax in an amount which, taking into consideration estimated
delinquencies in tax collections, will be sufficient to pay its obligations under this contract
becoming due before the time of the following year's tax collections: Provided, however, that if at
the time of making its annual tax levy, the Township shall have on hand in cash other funds
(including but not limited to funds from special assessments, user charges or connection fees) which
have been set aside and pledged or are otherwise available for the payment of such contractual
obligations falling due prior to the time of the next tax collection, then the annual tax levy may
Commissioners Minutes Continued. June 28, 1990 195
be reduced by such amount and Provided further; however, that any taxes levied by the Township
shall be subject to applicable constitutional, statutory aria charter tax rate limitations, The
Township Board each year, at least 90 days prior to the final date provided by law for the making of
the annual Township tax levy, shall submit to the County Agency a written statement setting forth
the amount of its obligations to the County which become due and payable under this contract prior
to the time of the next following year's tax collections, the amount of the funds which the Township
has or will have on hand or to its credit in the hands of the County which have been set aside and
pledged for payment of said obli gations to the County and the amount of the Township taxes next
proposed to be levied for the purpose of raising money to meet such obligations. The County Agency
shall review such statement promptly and, if he finds that the proposed Township tax levy is
Insufficient, he shall so notify the Township Board, and theTownship hereby covenants and agrees
that it will thereupon increase its levy to such extent as may be required by the County Agency.
12. No change in the jurisdiction over any territory in the Township 0 .01 in any manner
impair the obligations of this contract or affect the obligations of the Townshph hereunder. in the
event that all or any part of the territory of the Township is incorporated as a new city or is
annexed to or becomes a part of the territory of another municipality, the municipality into which
such territory is incorporated or to which such territory is annexed shall assume the proper
proportionate share of the contractual obligations (including the pledge of full faith and credit)
of the Township, which proper proportionate share shall be fixed and determined by the County Agency
and shall be binding upon all parties concerned unless, within sixty (60) days after such
incorporation or annexation becomes effective; the governing body of the municipality into which
such territory is incorporated or to which such territory is annexed and the Township Board by
mutual agreement and with the written approval of the County Agency shall fix and determine such
proper proportionate share. The County Agency, prior to making such determination, shall receive a
written recommendation as to the proper proportionate share from a committee composed of one
representative designated by the Township Board of the Township, one designated by the governing
body of the new municipality or the municipality annexing such territory and one independent
registered engineer appointed by the County Agency. Each governmental unit shall appoint its
representative within fifteen (15) days after being notified to do so by the County Agency and
within a like time the County Agency shall appoint the engineer third member. If any such
r'-epresentative (other than the appointee of the County Agency) is not appointed within the time
above provided, the County Agency may proceed without said recommendation. If the committee shall
not make the recommendation within forty-five (45) days after its appointment or within any
extension thereof by the County Agency, the County Agency may proceed witnout such recommendation.
13. This contract is contingent upon the County issuing its negotiable bonds, as herein
provided, to defray such part of the total estimated cost of the Project as is necessary to be
financed, which bonds shall be issued under the authorization provided in Section 5a, 5b and Sc of
Act 342. Interest on the bonds may be capitalized and paid •rom the bond proceecis for a period not
exceeding the estimated construction period and one year thereafter. In the event that the bonds
are not issued within three years from the date of this contract; unless extended by mutual
agreement, this contract shall become null and void; except that the Township shall pay all
engineering, legal and other costs and expenses theretofore incurred and shall be entitled to all
plans, specifications and other engineering data and materials.
14. Upon completion of the Project it shall be used by the Township as part of the System
in accordance with the provisions of the West Bloomfield Water Supply System Contract dated December
1, 1970 between the Township and the County.
15, The County shall have no obligation or responsibility for providing water or water
supply facilities except as herein expressly provided with respect to the acquisition of the Project
or as otherwise provided by contract: The Township shall have the -authority and the responsibility
to provide such other facilities and shall have the right to expand the facilities of the System by
constructing or extending water mains and trunks or related facilities, connecting the same to the
System and otherwise improving the System.
16. All powers, duties and functions vested by this contract in the County shall be
exercised and performed by the County Agency, for and on behalf of the County, unless otherwise
provided by law or in this contract.
17. The parties hereto recognize that the holders from time to time of the bonds to be
issued by the County under the provisions of Act 342 ., and secured by the full faith and credit
pledge of the Township to the making of its payments as set forth in this contract, will have
contractual rights in this contract ., and it is therefore covenanted and agreed that so long as any
of the bonds shall remain outstanding and unpaid; the provisions of this contract shall not be
subject to any alteration or revision which would affect adversely , either the security of the bonds
or the prompt payment of principal or interest thereon. The right to make changes in this contract,
by amendment, supplemental contracts or otherwise, nevertheless is reserved insofar as the same do
not have such adverse effect. The parties hereto further covenant and auree that they each will
comply with their respective duties and obligations under the terms of this contract promptly, at
the times and in the manner herein set forth and will not suffer to be done any act which would in
any way impair the contract of said bonds, the security therefor -, or the prompt payment of principal
and interest thereon. It is hereby declared that the terms of this contract and of any amendatory
or supplemental contract and any contract entered into pursuant hereto; insofar as they pertain to
said bonds or to the payment or the security thereof; shall be deemed to be for the benefit of the
holders of the bonds.
196
Commissioners Minutes Continued. June 28, 1990
18. In the event that any one or more of the provisions of this contract for any reason
shall be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions hereof, but this contract shall be construed
as if such invalid, illegal or unenforceable provision had never been contained herein.
19. This contract shall become effective upon its execution by each party hereto and the
-expiration of 45 days after the date of publication of the notice required by Section 5b of Act 342:
Provided, however, that if, within the 45-day period, a proper petition is filed with the Township
Clerk of the Township in accordance with the provisions of said Section 5b of Act 342 then this
contract shall not become effective until approved by the vote of a majority of the electors of the
Township qualified to vote and voting thereon at a general or special election. This contract shall
terminate forty (40) years from the date hereof or on such earlier date as shall be mutually agreed:
Provided, however, that it shall not be terminated at any time prior to the payment in full of the
principal of and interest on the County bonds together with all bond service charges pertaining to
the bonds. This contract may be executed in several counterparts. The provisions of this contract
shall inure to the benefit of and be blnding upon the successors and assigns of the parties hereto.
IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed and
delivered by the undersigned, being duly authorized by the respective governing bodies of such
parties, all as of the day and year first above written.
CHARTER TOWNSHIP OF WEST BLOOMFIELD COUNTY OF OAKLAND
By:
Supervisor
By: By:
Clerk County Drain Commissioner
(County Agency)
Mr. Chairperson, on behalf of the Planning and Building Committee, I move adoption of the
foregoing Resolution.
PLANNING AND BUILDING COMMITTEE
Larry P. Crake, Chairperson
. Moved by Crake supported by Law the resolution be adopted.
AYES: Olsen, Pappageorge, Pernick, Price, Rewold, Skarritt, Wolf, Aaron, Bishop, Caddell,
,Calandro, Chester, Crake, Gosling, Huntoow, Jensen, Johnson, R. Kuhn, Law, Luxon, McConnell,
• McPherson, Moffitt. (23)
NAYS; None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
Report (Misc. 90150)
By Personnel Committee
IN RE: Central Services/Administration/Record Retention Unit - CREATION OF ONE (1) GOVERNMENTAL
CLERK I POSITION
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
The Personnel Committee, having reviewed the above referenced resolution, reports with the
recommendation that the resolution be adopted.
Mr. Chairperson, on behalf of the Personnel Committee, I move the adoption of the
foregoing report.
Misc. 90150
By Planning and Building Committee
IN RE: Central Services/Administration/Record Retention Unit - CREATION OF ONE (1) GOVERNMENTAL
CLERK I POSITION
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS there has been a substantial increase in Record Retention's workload since it last
received a position in 1986; and
WHEREAS Record Retention is now preparing records for microfilming requiring one of the
unit's staff to work predominantly in this capacity; and
WHEREAS the unit is implementing a new open filing system for Circuit Court records which
initially increases the amount of time required to load files on shelving; and
WHEREAS Record Retention is unable to continue preparing all non-court related records for
moving to another location because of the unit's increased workload; and
WHEREAS the Clerk's Office supports Record Retention's request for an additional position
so that additional records can be received by Record Retention and to ensure timely access to court
files; and
WHEREAS it is anticipated that the addition of one clerical position will reduce overtime
costs;
NOW THEREFORE BE IT RESOLVED that one Cl) governmental Clerk I position be established in
PERSONNEL COMMITTEE
John P. Calandra, Chairperson
Commissioners Minutes Continued. June 28, 1990 197
Central Services/Administration/Record Retention unit.
Mr. Chairperson, on behalf of the Planning and Building Committee, I move the adoption of
the foregoing resolution.
PLANNING AND BUILDING COMMITTEE
Larry Crake; Chairperson
The Chairperson referred the resolution to the Finance Committee. There were no
objections.
Misc. 90151
By Planning and Building Committee
IN RE: Department of Solid Waste Management - OAKLAND COUNTY'S SOLID WASTE SYSTEM INTERGOVERNMENTAL
AGREEMENT
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS Oakland County's Solid Waste System is being established on behalf of the County's
municipalities for the purpose of acquiring and providing processing and disposal facilities and for
the purpose of providing services for the processing and disposal of certain solid wastes and
recyclables; and
WHEREAS the County intends to finance all or a part of the capital cost of the facilities
through the issuance of bonds pursuant to Act 186 or other pertinent statutes; and
WHEREAS because the system must rely on revenues from the disposal of solid waste and the
sale of energy and recycled materials to be economically feasible, an adequate supply of solid waste
and recyclable materials must be guaranteed to be input into the system; and
WHEREAS staff and the County's legal and financial counsels have a proposed
Intergovernmental Agreement specifying the contractual obligations between the County and its
constituent municipalities and have reviewed the proposed agreement on various occasions with the
representatives and legal counsels of the respective municipalities (September 8,1989, November 1,
1989, November 29; 1989, February 15; 1990 and May 23, 1990), incorporating changes appropriate to
insure the basic concepts of the system; and
WHEREAS the Board of Commissioners previously approved the basic system concept and the
Intergovernmental Agreement through Miscellaneous Resolution W89347.
NOW THEREFORE BE IT RESOLVED that the Board of Commissioners approves the
Intergovernmental Agreement in substantially the form attached hereto (draft dated June 12; 1990).
and authorizes the County Executive and the Chairman of the Board of Commissioners to release this
document for approval by the County's municipalities; and
BE IT FURTHER RESOLVED that the County Executive and the Chairman of the Board of
Commissioners are hereby authorized to sign the Intergovernmental Agreement in substantially the
form approved after approval by each participating municipality.
Mr. Chairperson, on behalf of the Planning and Building Committee, I move the adoption of
the foregoing resolution.
PLANNING AND BUILDING COMMITTEE
Larry P. Crake, Chairperson
Copy of "Intergovernmental Agreement for Solid Waste Processing and Disposaal Services on
file in County Clerk's Office.
Moved by Crake supported by McConnell the resolution be adopted.
AYES; Pappageorge, Pernick, Price; Rewold, Skarritt, Wolf, Aaron, Bishop, Caddell,
Chester, Crake, Gosling, Huntoon, Jensen; Johnson; R. Kuhn, Law, McConnell, McCulloch e Moffitt,Oaks,
Olsen. (22)
NAYS: none. (0)
A sufficient majority having voted therefor, the resolution was adopted.
Misc. 90136
By Planning and Building Committee
IN RE: Corporation Counsel - Real Estate Section - LEASE AGREEMENT WITH THE OAKLAND COUNTY ROAD
COMMISSION FOR OAKLAND COUNTY TREASURER OFFICE SPACE
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS the County of Oakland, by Resolution 85141, dated June 5, 1985, renewed a Lease
for approximately 350 square feet of office space at the Oakland County Road Commission building,
31001 Lahser Road, Beverly Hills, Michigan for the Oakland County Treasurer, for a term of five (5)
years, commencing on the first day of May, 1985, and terminating on the 30th day of April, 1990; and
WHEREAS the Oakland County Treasurer desires to continue to provide a satellite office and
supports the rental of said office space as being in the best interests of the public; and
WHEREAS the Road Commission has submitted the attached Lease Agreement for the period of
May 1, 1990 through April 30, 1995, which provides for the payment of $2,800 per year to defray the
198
Commissioners Minutes Continued. June 28, 1990
costs of maintenance custodial services and utilities.
NOW THEREFORE SE IT RESOLVED that the Oakland County Board of Commissioners approves the
Lease Agreement between the Oakland County Road Commission and the County of Oakland for 427 square
feet of office space for the Oakland County Treasurer for a term of five (5) years, commencing May
1, 1990; and ending April 30, 1995, at the sum of $2,800 per year.
BE IT FURTHER RESOLVED that the Board directs its Chairperson to execute the Lease
Agreement, a copy of which is attached hereto.
Mr. Chairperson, on behalf of the Planning and Building Committee, I move the adoption of
the foregoing resolution.
Copy of Lease Agreement on file in County Clerk's Office.
Fiscal Note (Misc. 90136)
By Finance Committee
IN RE: Corporation Counsel - Real Estate Section - LEASE AGREEMENT WITH THE OAKLAND COUNTY ROAD
COMMISSION FOR OAKLAND COUNTY TREASURER OFFICE SPACE
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
Pursuant to Rule XI-G the Finance Committee has reviewed Miscellaneous Resolution #90136
and finds:
1) The recent lease agreement with the Road Commission for the Treasurer's satellite
office space expired on April 30, 1990.
2) The new lease agreement is for a five-year period from May 1; 1990, through April 30,
1995.
3) The square footage has increased from 350 square feet to 427 square feet.
4) Payment for the old lease was one dollar per year; the new lease includes reimbursement
to the Road Commission for maintenance, utilities; and custodial costs estimated to be $2,800 per
year. ,
5) The resolution should be amended in the third WHEREAS and the NOW THEREFORE BE IT
RESOLVED paragraphs to insert the words "an estimated" before the "$2,800 amount.
6) The 1990/1991 budget is amended as follows:
PLANNING AND BUILDING COMMITTEE
Larry P. Crake, Chairperson
4-10100-221-01-00-3658 Treasurer - Rent
4-101 00-909-01 -00-9900 Contingency
1990
$ 2,800
(2,800)
$ -0-
FINANCE COMMITTEE
G. William Caddell, Chairperson
1991
$ 2,800
(2,800)
$ -0-
Moved by Crake supported by Moffitt the resolution be adopted.
AYES: Pernick, Rewold, Skarritt, Wolf, Aaron, Bishop, Caddell, Galandro, Chester, Crake,
Gosling, Huntoon, Jensen, Johnson, R. Kuhn, Law, McCulloch, McPherson, Moffitt, Oaks, Olsen,
Pappageorge. (22)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
Misc. 90134
By Planning and Building Committee
IN RE: Building Safety/and Water and Sewer Operations - INTERFACE WITH EXISTING ALARM AND CARD
ACCESS SECURITY SYSTEMS
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS the Building Safety Division is responsible for 864 alarms located throughout
the County; and
WHEREAS there are many different types-of alarms including intrusion alarms, fire alarms,
trouble alarms, panic-button alarms, and equipment alarms; and
WHEREAS current response procedures to the various alarms require a manual process of
locating the appropriate written procedUre and then contacting key people; and .
WHEREAS a personal computer would interface directly with the alarms to automatically
respond by interpreting the signal, locating the procedure within the memory of the computer,
dialing the necessary telephone numbers, and maintaining a record of the response steps; and
WHEREAS this enhancement would allow the addition of numerous fire alarms throughout the
County Complex that currently are not notifying Building Safety and are serving as internal audible
alarms only; and
WHEREAS this system would interface also with the existing card access security system;
and
WHEREAS an additional personal computer would interface with 250 water and sewer alarms to
$ 1,596
1,596
-0-
-0-
$ 3,192
$ 1 .,596
$ 9,196
$10,792
$ -0-
199 Commissioners Minutes Continued. June 28, 1990
monitor Water and Sewer Operations in the same manner and allow for immediate dispatch response; and
WHEREAS each of the two personal computers will serve as a backup system to one another to
prevent interruption; and
WHEREAS total capital costs are estimated at $9,196 with Water and Sewer Operations
funding $4,225 for hardware and software and the remaining $4,971 will come from the General Fund;
and
WHEREAS this enhancement has been approved by the Computer Users Advisory Council.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners authorizes the
implementation of the automated alarm response system as approved by tne Computer Users Advisory
Council.
Mr. Chairperson; on behalf of the Planning and Building Committee, I move the adoption of
the foregoing resolution.
PLANNING AND BUILDING COMMITTEE
Larry P. Crake, Chairperson
Fiscal Note (Misc. 90134)
By Finance Committee
IN RE: Building Safety/Water and Sewer Operations - INTERFACE WITH EXISTING ALARM AND CARD ACCESS
SECURITY SYSTEMS
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
Pursuant to Rule the Finance Committee has reviewed Miscellaneous Resolution #90I34
and finds:
I) Total capital costs are estimated at $9,196 with Water and Sewer Operations funding
$4,225 and the balance of $4,971 coming from the General Fund.
2) Annual operating costs total $3 -,192 with the General Fund and. Water and Sewer
Operations each paying half or $1,596. For the remainder of the year, total operating costs are
$1,596 or $798 each.
3) Funds for capital and operating costs are available within Water and Sewer Operations'
current budget; an operating transfer out of $4,225 is required from Water and Sewer Operations to
Computer Services for acquisition of equipment.
4) The 1990/1991 Biennial Budget is amended as follows for the General Fund and Computer
Services Fund:
General Fund - Building Safety 1990 1991
Expenditures
4-10100-132 -01-00-6360 Computer Services Operations $ 798 $ 1,596
4-10100-132 -01-00-6616 Operating Transfer Out 4,971 -0-
Subtotal $ 5,769 $ 1,5H
4-10100-909-01-00-9900 Contingency $(5,769) $(1,696)
$ -0- $ -0-
Computer Services Fund
Revenues
3-63600-161-01-00-2037
3-63600-181-01-00-2355
3-63600-181-01-00-8101
3-63600-181-01-00-8833
Budgeted Departments $ 798
Special Revenues & Proprietary 798
Operating Transfer in - Gen. Fund 4,971
Operating Transfer In - Water & Sewer 4,225
Subtotal $10,792-
Expenditures
4-63600-184-01-00-3304 Depreciation
1-63600-455-001 Revenue Over (Under) Expense
Subtotal
Total
$ 3,192
$ -0-
3,192
5, -0-
FINANCE COMMITTEE
G. William Caddell; Chairperson
Moved by Caddell supported by Pappageore the resolution be adopted.
•
AYES: Rewold; Skarritt, Wolf, Aaron, Bishop, Caddell; Chester, Crake, Gosling, Huntoon, Jensen,
Johnson, R. Kuhn, Law, McConnell, McCulloch, McPherson; Moffitt, Oaks, Olsen, Pappageorge, Pernick.
(22)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
200
Commissioners Minutes Continued. June 28, 1990
Misc. 90152
By Planning and Building Committee
IN RE; DRAIN COMMISSIONER - RESOLUTION TO APPROVE EVERGREEN AND FARMINGTON SEWAGE DISPOSAL SYSTEMS
POLLUTION CONTROL FACILITIES --SEGMENT II-ARM C AND SSES REHABILITATION IMPROVEMENTS CONTRACT
To the Oakland County Board of Commissioners
n Chairperson, Ladies and Gentlemen:
WHEREAS the County of Oakland (the "County") has heretofore established and constructed
and acquired the Evergreen Sewage Disposal System pursuant to the Evergreen Sewage Disposal System
Agreement, dated November 10, 1958, as amended; to serve the Evergreen Sewage Disposal District, and
the County has heretofore established and constructed and acquired the Farmington Sewage Nsposal
System pursuant to the Farmington Sewage Disposal System Agreement, dated November 1, 1957, as
amended to serve the Farmington Sewage Disposal District; and
WHEREAS the State of Michigan Department of Natural Resources designated the areas and
districts served by the Evergreen Sewage Disposal System and the Farmington Sewage Disposal System
as a single plan of study area for the purposes of Step I Facilities Planning; and
WHEREAS the County established under and pursuant to Act No, 342, Public Acts of Michigan,
1939, as amended ('Act 342"), a system of sewage disposal improvements and services to serve the
Evergreen Sewage Disposal District and the Farmington Sewage Disposal District, which system as so
established was designated as the "Evergreen and Farmington Sewage Disposal Systems" and the Oakland
County Drain Commissioner was designated and appointed as the 'county agency for the Evergreen and
Farmington Sewage Disposal Systems with all the powers and duties with respect to said system as are
provided by law and especially by Act 342; and
WHEREAS it is now necessary to improve, enlarge and extend the Evergreen and Farmington
Sewage Disposal Systems by the acquisition and construction of the hereinafter described Evergreen
and Farmington Sewage Disposal Systems Pollution Control Facilities -- Segment II - Arm C and SSES
Rehabilitation Improvements Contract which facilities and improvements are located in and/or serve
the Cities of Bloomfield Hills and Keego Harbor, the Village of Bingham Farms and the Township of
Bloomfield (herein collectively the "Municipalities"); and
WHEREAS by the terms of Act 342; the County and the Municipalities are authorized to enter
into a contract for the acquisition, construction and financing of the Evergreen and Farmington
Sewage Disposal Systems Pollution Control Facilities -- Segment II - Arm C and SSES Rehabilitation
Improvements consisting of sewage disposal and pollution control facilities to serve the
Municipalities and for the payment of the cost thereof by the Municipalities with interest; and the
County is then authorized to issue its bonds to provide the funds necessary therefore; and
WHEREAS there has been submitted to this Board of Commissioners a proposed contract between
the County, by and through the County Drain Commissioner, County Agency, party of the first part;
and the Municipalities, parties of the second part (the "Contract"), which Contract provides for the
acquisition, construction and financing of enlargements; additions and improvements to the Evergreen
and Farmington Sewage Disposal Systems as described in Exhibit A to the Contract (the "Project'),
and which Contract is hereinafter set for forth in full; and
WHEREAS there have also been submitted for approval and adoption by this Board of
Commissioners, preliminary plans; specifications and estimates of the cost and period of usefulness
of the Project; and
WHEREAS the Contract provides for the issuance hereafter of bonds by the County to defray
that part of the cost of the Project not paid from the proceeds of grants or cash payments by the
Municipalities; said bonds to be secured by the contractual obligations of the Municipalities to pay
to the County amounts sufficient to pay the principal of and interest on the hereafter authorized
bonds and to pay such paying agent fees and other expenses as may be incurred on account of said
bonds; and
WHEREAS the Village of Bingham Farms requests payment of its share of the cost of the
Project by transfer of surplus moneys now held for its benefit by the County; and
WHEREAS this Board of Commissioners desires to proceed with the establishment,of this
Project and the approval and execution of the Contract to acquire, construct and finance the Project
as provided in the Contract.
THEREFORE BE IT RESOLVED BY THE BOARD•OF COMMISSIONERS OF OAKLAND COUNTY, MICHIGAN, as
follows:
1. ESTABLISHMENT OF SYSTEM AND DESIGNATION OF COUNTY AGENCY. This Board of Commissioners
by majority vote of its members-elect does hereby authorize and direct that there be established,
and there is hereby established -, under and pursuant to Act 342; sewage disposal facilities to be
known as the "Evergreen and Farmington Sewage Disposal Systems Pollution Control Facilities --
Segment II-Arm C and SSES Rehabilitation Improvement," which shall consist of enlargements;
additions and improvements to the Evergreen and Farmington Sewage Disposal Systems, as specified and
to be located as shown in Exhibit A to the Contract; that the Project shall serve the
Municipalities; that the Oakland County Drain Commissioner is hereby designated and appointed as the
"County Agency" for the Evergreen and Farmington Sewage Disposal Systems Pollution Control
Facilities -- Segment II-Arm C and SSES Rehabilitation Improvements; that the County Agency shall
have all the powers and duties with respect to the Evergreen and Farmington Sewage Disposal Systems
Pollution Control Facilities -- Segment II-Arm C and SSES Rehabilitation Improvements as are
provided by law and especially by Act 342; and that all obligations incurred by the County Agency
with respect to the Evergreen and Farmington Sewage Disposal Systems Pollution Control Facilities --
Segment II-Arm C, and SSES Rehabilitation Improvements, unless otherwise authorized by this Board of
Commissioners Minutes Continued. dune 28, 1990 201
Commissioners, shall be payable solely from funds derived from the Municipalities as hereinafter
provided.
2. PLANS AND SPECIFICATIONS - ESTIMATES OF PERIOD OF USEFULNESS AND COST. The
preliminary plans and specifications for the Project and the estimates of 44),100 as the cost
thereof and of 30 years and upwards as the period of usefulness thereof, and the trE .:nsfer of $11,090
of surplus funds held by the County on behalf of the Village of Bingham Farms in connection with the
acquisition and construction of the Oakland County Water Supply and Sewage Disposal System --
Evergreen and Bingham Farms System Project as requested by said Village; all as submitted to this
Board of Commissioners be and the same are hereby approved and adopted..
3. APPROVAL OF CONTRACT. The Evergreen and Farmington Sewage Disposal Systems Pollution
Control Facilities -- Segment II -Arm C and SEES Rehabilitation Improvements Contract dated as of
April 1; 1990, between the County; by and through the County Drain Commissioner, party of the first
part, and the Municipalities, parties of the second part, which Contract has been submitted to this
Board of Commissioners, be and the same is hereby approved and adopted, and the County Drain
Commissioner is hereby authorized and directed to execute and deliver the same for and on behalf of
the County, in as many counterparts as may be deemed advisable, after the Contract has been executed
by the appropriate. officials of the Municipalities. The Contract reads as follows:
EVERGREEN AND FARMINGTON SEWAGE DISPOSAL SYSTEMS
POLLUTION CONTROL FACILITIES --
SEGMENT II-ARM C AND SEES REHABILITATION
THIS AGREEMENT made as of this 1st day of April; 1990; by and between the COUNTY OF
OAKLAND; a Michigan county corporation (hereinafter sometimes referred to as the "County"); by and
through its County Drain Commissioner (hereinafter referred to as the "County Agency"); party of the
first part, and the VILLAGE OF BINGRAM FARMS, and the CITY OF BLOOMFIELD HILLS; the CITY OF KEEGO
HARBOR, and the TOWNSHIP OF BLOOMFIELD, municipal corporations in the County of Oakland (hereinafter
sometimes collectively referred to as the "Municipalities" and individually as a "Municipality");
parties of the second part:
WITNESSETH :
WHEREAS the Oakland County Board of Supervisors by Resolution, Misc. Na. 3269; adopted on
August 12; 1957, as amended by Resolution; Misc. No. 3435, adopted on October 13, 1958; did approve
of establishment of the Evergreen Sewage Disposal System to serve the Evergreen Sewage Disposal
District; and
WHEREAS pursuant to the Evergreen Sewage Disposal System Agreement, dated November 10;
1958; as amended by amendatory agreements dated December 22, 1958 and February 9, 1959; all between
the County of Oakland and the Cities of Birmingham; Bloomfield Hills; Lathrup Village; Troy and
Southfield; the Village of Westwood (now the Village of Beverly Hills) and the Townships of
Bloomfield and Pontiac (now the City of Auburn Hills); municipal corporations in the County; the
County; acting through its Department of Public Works; did acquire the original Evergreen System and
did finance such acquisition by the issuance of bonds in anticipation of payments to be made by said
municipal corporations to the County in accordance with the provisions of said agreement; as amended
(herein referred to as the "Evergreen Agreement"); and
WHEREAS the Oakland County Board of Supervisors by resolution, Misc. No. 3270; adopted
August 12; 1957; as amended by resolution; Misc. No. 3339, adopted January 24, 1958; did approve the
establishment of the Farmington Sewage Disposal System to serve the Farmington Sewage Disposal
District; and
WHEREAS pursuant to the Farmington Sewage Disposal System Agreement; dated November 1,
1957; as amended by amendatory agreements dated December 22, 1958, and February 9; 1959, all between
the County and the Cities of Southfield and Keego Harbor and the Townships of West Bloomfield and
Farmington (now City of Farmington Hills); municipal corporations in the County; the County acting
through its Department of Public Works; did acquire the original Farmington Sewage Disposal System
and did finance such acquisition by the issuance of bonds in anticipation of payments to be made by
said municipal corporations to the County in accordance with the provisions of saidAgreement; as
amended (herein referred to as the "Farmington Agreement"); and
WHEREAS by annexation of part of the former Township of Farmington the City of Farmington
has become a user of the Farmington Sewage Disposal System and has area included in the Farmington
Sewage Disposal District; and
WHEREAS by contractual relationships with members of the -Farmington Sewage Disposal
System; the City of Sylvan Lake and the City of Orchard Lake Village have become users of the
Farmington Sewage Disposal System; and
WHEREAS the State of Michigan Department of Natural Resources (herein the "MDNR") acting
on behalf of itself and the United States Environmental Protection Agency (herein the "USEPA")
designated the area and districts served by the Oakland County Evergreen and Farmington Sewage
Disposal Systems as a single plan of study area for the purposes of Step I Facilities Planning and
determined that there is a need to obtain studies; reports; plans and estimates for the abatement of
pollution; control of pollutants and polluting discharges; and the relief of both the Evergreen and
Farmington Sewage Disposal Systems and issued a Final Order of Abatement to the County and each
municipal corporation using either System or either District; and
WHEREAS the County established under and pursuant to Act No. 342; Public Acts of Michigan,
1939; as amended; merged systems of sewage disposal improvements and services to serve the areas and
the districts heretofore designated and described in Oakland County; Michigan; in Resolutions No.
3269; 3435 and 4115 as the Evergreen Sewage Disposal District and in Resolutions No. 3270 and 3339
202
Commissioners Minutes Continued. June 28, 1990
as the Farmington Sewage Disposal District, which merged system as so established was designated as
the "Evergreen and Farmington Sewage Disposal Systems" (hereinafter referred to as the 'Systems")
and the "Evergreen and Farmington Sewage Disposal Districts" (hereinafter referred to as the
"Districts") and the Oakland County Drain Commissioner was designated and appointed as the "County
Agency" for the Systems as provided by law and especially by said Act 342; and
WHEREAS the County and all of the municipal corporations described in the foregoing
paragraphs as users of the Farmington System and the Evergreen System and as having area included in
the Farmington District and in the Evergreen District (herein the "Municipalities") have at the
request and approval of the MDNR and the USEPA entered into an Intermunicipal Contract Concerning
Wastewater Treatment and Pollution Control Projects for the Systems, dated as of September 30; 1989;
(the "Intermunicipal Contract") in which the County and the Municipalities agree to acquire
Facilities and to carry out Projects as described in said Intermunicipal Contract throughout the
Systems in various parts of the District all in compliance with the Final Order of Abatement and
Federal Grant requirements; and
WHEREAS under and subject to the terms of Act 342, the County is authorized, through the
County Agency, to acquire and construct the sewage disposal improvements and pollution control
facilities hereinafter described as part of the Systems, the County and the Municipalities are
authorized to enter into a contract, as hereinafter provided, for the acquisition and construction
of the improvements and facilities by the County and for financing all or part of the cost thereof
by payment by one or more of the Municipalities of its share of the cost in cash or by the pledge of
the full faith and credit of the Municipalities to pay such cost with interest to the County in
installments extending over a period not exceeding forty (40) years, in anticipation of which
installment payments the County is authorized to issue its bonds and, if authorized by majority vote
of the members-elect of its Board of Commissioners, to pledge its full faith and credit for the
payment of such bonds and the interest thereon; and
WHEREAS there is an urgent need for such sewage disposal improvements and pollution
control facilities to comply with the MDNR Final Order of Abatement and to provide the means of
collecting and disposing of sanitary sewage originating in the Municipalities, in order to abate
pollution of the waters of the Municipalities and thus to promote the health and welfare of the
residents thereof, which improvements and facilities would likewise benefit the County and its
residents, and the parties hereto have concluded that such improvements and facilities can be most
economically and efficiently provided and financed by the County through the exercise of the powers
conferred by Act 342, on the County and on the Municipalities as set forth herein; and
WHEREAS the County and the Municipalities desire to proceed with the acquisition and
construction of improvements and facilities using a combination of federal and state grant moneys
and local funds as needed for the proposed project as shown on Exhibit A hereto attached (the
"Project"); for which Project contractual arrangements for design; construction and financing are
required only with the Municipalities among all of the parties named hereinabove as participants in
and users of the Systems; and
WHEREAS the County Agency has obtained preliminary plans for the Project and also an
estimate of $447,100 as the total cost of the Project and an estimate of thirty (30) years and
upwards as the period of usefulness thereof, all of which have been prepared by Hubbell, Roth &
Clark, Inc. (hereinafter sometimes referred to as the "Consulting Engineers') submitted herewith for
approval by the Board of Commissioners of the County and the governing bodies of the Municipalities
and will be placed on file in the office of the County Agency, said estimates being set forth in
Exhibit B hereunto attached; and .
WHEREAS in order to provide for the acquisition and construction of the Project by the
County and the financing of the cost thereof by the issuance of County bonds, and for other related
matters, it is necessary for the parties hereto to enter'into this Contract.
THEREFORE, IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES HERETO, as follows:
1. The parties hereto hereby approve and agree to the establishment, acquisition;
construction and financing of the Project as herein provided; under and pursuant to Act 342. Each
Municipality, by way of compliance with Section 29, Article VII of the Michigan Constitution of
1963, consents and agrees to the establishment and location of the Project within its corporate
boundaries and to the use by the County of its streets, highways, alleys, lands, rights-of-way or
other public places for the purpose and facilities of the Project and any improvements, enlargements
and extensions thereof, and each Municipality further agrees that, in order to evidence and
effectuate the foregoing agreement and consent, it will execute and deliver to the County such
grants of easement, right-of-way, license, permit or consent as may be requested by the County.
2. The Project shall consist of construction of sanitary sewers and appurtenances and
rehabilitation of sewers and appurtenances as described in a Sewer System Evaluation Survey Report
(SSES) and related facilities as described and shown on Exhibit A and Exhibit B which are attached
hereto and which are hereby made a part hereof, and as are more particularly set forth in the
preliminary plans which have been prepared and submitted by the Consulting Engineers which plans are
on file with the County Agency and are hereby approved and adopted. The Project shall be acquired
and constructed substantially in accordance with the preliminary plans and in accordance with final
plans and specifications to be prepared and submitted by the Consulting Engineers, but variations
therefrom which do not materially change the location, capacity or overall design of the Project,
and which do not require an increase in the total estimated cost of the Project, may be permitted on
Commissioners Minutes Continued. June 28, 1990 203
the authority of the County Agency. Other variations or chances may be made if approved by the
County Agency and by resolution of the governing body of each Municipality and if provisions
required by paragraph (8) hereof are made for payment or financing of any resulting increase in the
total estimated cost. The estimate of cost of the Project and the estimate of period of usefulness
thereof as set forth in Exhibit 8 are likewise hereby approved and adopted.
3. To defray that part of the total cost of the Project which is in excess of funds
available from federal and/or state grants or payments by one or more of the Municipalities, the
County Agency shall take or cause to be taken all actions required or necessary, in accordance with
Act 342, to procure the issuance and sale of bonds by the county, in one or more series, in whatever
aggregate principal amount is necessary to be so financed. Such bonds shall be issued in
anticipation of, and be payable primarily from, the installment payments to be made by the
Municipalities to the County in the aggregate amounts as provided in Exhibit B, which is attached
hereto and which is hereby made a part hereof, after adjustment of said amounts to reflect cash
payments made by any of the Municipalities before the bonds are issued, and shall be secured
secondarily, if so voted by the Board of Commissioners of the County, by the pledge of the full
faith and credit of the County, and the said bonds shall be payable in annual maturities the last of
which shall be not more than forty years from the date thereof.
4. The County Agency shall obtain and accept an offer of grant by the USEPA/MONR for the
Project, proceed to take construction bids for the Project and, subject to the receipt of cash
payments by Municipalities and the sale and delivery of said bonds, enter into construction
contracts with the lowest responsive and responsible bidder or bidders, procure from the contractors
all necessary and proper bonds and insurance; cause the Project to be constructed within a
reasonable tine, and do all other things required by this Contract and the laws of the State and the
United States of America. All certificates for required payments to contractors shall be approved
by the Consulting Engineers before presentation to the County Agency and the latter shall be
entitled to rely on such approval in making payment.
The County hereby agrees that it will secure and maintain, or cause to be secured and
maintained, during the period of construction adequate property damage and public liability
insurance covering all facilities to be constructed pursuant to this Contract. All policies and
memorandums of insurance shall provide that the County and the Municipalities shall be insured
parties thereunder and shall contain a provision requiring that each Municipality be notified at
least ten days prior to cancellation thereof. One copy of each policy and memorandum of insurance
shall be filed with each Municipality.
5. It is uneerstood and agreed by the parties hereto that the Project is to serve the
Municipalities and not the individual property owners and users thereof, unless by special
arrangement between the County Agency and the governing body of the Municipality wherein such
property is located. The responsiblity of requiring connection to and use of the Project and/or
providing such additional facilities as may be needed shall be that of the Muncipality wherein such
property is located and such Municipality shall cause to be constructed and maintained, directly or
through the County, any such necessary additional facilities. The County shall not be obligated to
acquire or construct any facilities other than those designated in paragraph 2 hereof.
6. The Municipalities shall pay to the County their respective shares of the total cost
of the Project less such funds as may become available from federal and/or State grants or from
sources other than the Municipalities; which total cost for this purpose shall include, all items of
the nature set forth in Exhibit B, plus, if bonds are issued by the County, all interest payable by
the County on said bonds and all paying agent fees and other expenses and charges (including the
County Agency's administrative expenses) which are payable on account of said bonds (such fees,
expenses and charges being herein called ''bond service charges). The cost of the Project is hereby •
allocated to the Municipalities in accordance with the amounts set forth in Exhibit B. The payments
of each Municipality in anticipation of which bonds are issued shall be made to the County in annual
installments which shall be due and payable at least thirty days prior to the day of the month
specified in the County bonds as the annual principal maturity date thereof. Such an annual
installment of each Municipality shall be so paid in each year if any principal and/or
non-capitalized interest on said bonds falls due during the twelve-month period beginning on such
principal maturity date in said year, and the amount of each installment of each Municipality so due
and payable shall be at least sufficient, when added to the amount of the installments of the other
Municipalities so due and payable, to pay all such principal and/or interest thus falling due and
all bond service charges then due and payable. The County Agency shall ., within thirty days after
delivery of the County bonds to the purchaser, furnish the Treasurer of each Municipality with a
complete schedule of the principal and interest maturities thereon, and the County Agency shall
also; at least thirty days before each payment is due to be made by each Municipality, advise the
Treasurer of each Municipality of the amount payable to the County on such date. If the
Municipality fails to make any payment to the County when due, the same shall be subject to a
penalty of 1% thereof for each month or fraction thereof that such amount remains unpaid after due.
Failure of the County Agency to furnish the schedule or give the notice as above required shall not
excuse a Municipality from the obligation to make payment when due. Such payments shall be made by
each Municipality when due whether or not the Project has then been completed or placed in
operation. In the event that additional County bonds shall be issued under the authority of this
Contract to defray a part of the cost of the System, the foregoing obligations shall apply to such
part of cost and to said additional bonds insofar as appropriate thereto.
ald'h
Commissioners Minutes Continued. June 28, 1990
7, A Municipality may pay in advance any one or more of its installment payments in
anticipation of which bonds are issued, or any part thereof, to the County pursuant to this Contract
(a) by surrendering to the County any of said County bonds of like principal amount maturing in the
same calendar year or (b) by paying to the County in cash the principal amount of any County bonds
which are subject to redemption prior to maturity plus all interest thereon to the first date upon
-hich such bonds may be called for redemption, and plus all applicable call premiums and bond
service charges, and in such event the County Agency shall call said bonds for redemption at the
earliest possible date; provided, however, that such advance payment and credit therefor shall be
limited in amount at any given time to the amount of bonds available for purchase or redemption by
call within the twelve-month period succeeding the date of the advance payment. The installments or
parts thereof so prepaid shall be deemed to be the installments or parts thereof falling due in the
same calendar year as the maturity dates of the bonds surrendered or called for redemption coo bonds
so surrendered or redeemed shall be cancelled.
8. In the event that it shall become necessary to increase the estimated cost of the
Project as hereinbefore stated, or if the actual cost of the Project shall exceed the estimated
cost, whether as the result of variations or changes permitted or needed to be made in the approved
plans or otherwise, then (without execution of any further contract or amendment of this Contract)
the governing bodies of the Municipalities, by resolution adopted within fifteen days after the
receipt of construction bids, may direct that a portion of the Project not yet acquired or
constructed and not under contract to acquire or construct be deleted sufficient to reduce the total
cost to an amount which shall not exceed the total estimated cost of the Project; as hereinbefore
stated by more than 5%; provided that such deletion shall not materially change or terminate the
eligibility of the Project for Federal and/or State grants, or change the general scope, overall
design and purpose of the Project. In the adoption of such a resolution the Municipalities shall
pay or procure the payment of the increase or excess up to said 5% in cash or shall agree that
County bonds in an increased or additional amount shall (upon adoption of an authorizing resolution
therefor oy the Board of Commissioners) be issued to defray such increased or excess cost, to the
extent that funds therefor are not available from other sources. Where the effect of any increase
in the estimated cost of the Project or of any excess of actual cost over estimated cost would be to
cause the total cost of the Project to exceed by more than 5% its total estimated cost as
hereinbefore stated, the County shall not enter into any new or further contract or change order for
acqusition or construction of the Project or any part thereof or incur any new or further obligation
for or pay any new or further item of cost thereof until the Municipalities shall have adopted a
resolution approving such increase or excess and agreeing that the same (or such part thereof as is
not available from other sources) shall be paid or its payment procured by the Municipalities in
cash or be defrayed by the issuance of increased or additional County bonds in anticipation of
increased or additional payments agreed to be made by the Municipalities to the County in the manner
hereinbefore provided; provided, further, that the adoption of such resolution by the Municipalities
shall not be required prior to or as a condition precedent to the issuance of additional bonds by
the County, if the County has previously issued or contracted to sell bonds to pay all or part of
the cost of the Project and the issuance of the additional bonds is necessary (as determined by the
County) to pay such increased, additional or excess costs as are essential to completion of the
Project according to the plans as last approved prior to the time when the previous bonds were
issued or contracted to be sold.
9. in the event that the actual cost of the Project is less than the total estimted cost',
then any surplus available to the County from cash payments made by the Municipalities or from the
sale of County bonds; at the option of the governing bodies of the Municipalities; shall be used to
improve, enlarge or extend the Systems, to apply upon future payments due to the County, to redeem
bonds, to make reimbursement to the Municipalities in proportion to amounts theretofore paid to the
County or to purchase bonds on the open market; provided that such surplus shall be used to improve,
enlarge or extend the Systems only if authorized by the Board of Commissioners of the County. Any
such surplus may; for the purpose of improving, enlarging or extending the Systems; be supplemented
by cash payments to be made by the Municipalities, or such improvements, enlargements or eZtensions
may be financed entirely from such cash payments; where authorized by the governing bodies of the
Municipalities. Where any such surplus is used to redeem or purchase bonds; the same shall be
cancelled, and the payments thereafter required to be made by the Municipalities to the County shall
be reduced so as to reflect the resulting saving of interest and the PaYmentrequired to be made in
the calendar year of the stated maturity of said bonds shall be reduced by the principal amount
thereof.
10. Should a Municipality fail for any reason to pay the County at the times specified,
the amounts herein required to be paid, such Municipality does hereby authorize the State Treasurer
or other official charged with the disbursement of unrestricted state funds returnable to such
Municipality pursuant to the Michigan Constitution to withhold sufficient funds to make up any
default or deficiency in funds. If the full faith and credit of the County is pledged for the prompt
payment of the principal of and interest on the bonds to be issued by the County and if the County
is required to advance any money by reason of such pledge on account of the delinquency of such
Municipality; the County Treasurer is hereby authorized to notify the State Treasurer to deduct the
amount of money so advanced by the County from any unrestricted moneys in the State Treasurer's
possession beonging to such Municipality and to pay such amount to the County.
The foregoing shall not operate to limit the County's right to pursue any other legal
Commissioners Minutes Continued. June 28, 1990 205
remedies for the reimbursement of moneys advanced on account of the default of such Municipality,
11, Each Municipality, pursuant to the authorization of Section 5a of Act No. 342; hereby
pledges its full faith and credit for the prompt and timely payment of its obligations expressed in
this Contract in anticipation of which bonds are issued and each year shall levy a tax in an amount
which, taking into consideration estimated delinquencies in tax collections, will he sufficient to
pay its obligations under this Contract becoming due before the time of the following year's tax
collections; provided; however, that if at the time of making its annual tax levy, a Municipality
shall have on hand in cash other funds (including but not limited to funds from special assessments;
user charges or connection fees) which have been set aside and pledged or are otherwise available
for the payment of such contractual obligations falling due prior to the time of the next tax
collection, then the annual tax levy may he reduced by such amount. The ability of each
Municipality to levy taxes is subject to constitutional, statutory and charter limitations. The
governing body of each Municipality shall each year, at least 90 clays prior to the final date
provided by law for the making of the annual tax levy of the Municipality, submit to the County
Agency a written statement setting forth the amount of its obligations to the County which become
due and payable under this Contract prior to the time of the next following year's tax collections,
the amount of the funds which the Municipality has or will have on hand or to its credit in the
hands of the County which have been set aside and pledged for payment of said obligations to the
County; and the amount of the taxes of the Municipality next proposed to be levied for the purpose
of raising money to meet such obligations. The County Agency shall review such statement promptly
and, if he finds that the proposed tax levy is insufficient, he shall so notify the governing body
of the Municipality, and each Municipality hereby covenants and agrees tht it will thereupon
increase its levy to such extent as may be required by the County Agency.
12. No change in the jurisdiction over any territory in any of the Municipalities shall in
any manner impair the obligations of this Contract or affect the obligations of the Municipalities
hereunder. In the event that all or any part of the territory of any Municipality is incorporated
as a new city or village or is annexed to or becomes a part of the territory of another
municipality, the municipality into which such territory is incorporated or to which such territory
is annexed shall assume the proper proportionate share of the contractual obligations (including the
pledge of full faith and credit) of such Municipality, which proper proportionate share shall be
fixed and determined by the County Agency and shall be binding upon all parties concerned unless;
within sixty (60) days after such incorporation or annexation becomes effective, the governing body
of the Municipality into which such territory is incorporated or to which such territory is annexed
and the governing body of such Municipality shall by mutual agreement and with the written approval
of the County Agency fix and determine such proper proportionate share. The County Agency shall,
prior to making such determination receive a written recommendation as to the proper proportionate
share from a committee composed of one representative designated by the governing body of such
Municipality, one designated by the governing body of the new municipality or the municipality
annexing such territory, and one independent registered engineer appointed by the County Agency.
Each governmental unit shall appoint its representative within fifteen (15) days after being
notified to do so by the County Agency and within a like time the County Agency shall appoint the
engineer third member. If any such representative (other than the appointee of the County Agency)
is not appointed within the time above provided, then the County Agency may proceed without said
recommendation. If the committee shall not make the recommendation within forty-five (45) days
after its appointment or within any extension thereof by the County Agency; then. the County Agency
may proceed without such recommendation.
13. This Contract is contingent upon the receipt by the County of cash payments from the
Municipalities up to the aggregate amount of the share of each of the estimated Project cost and
upon the County issuing its negotiable bonds; If any as herein provided; to defray such part of the
total estimated cost of the Project as is necessary to be financed, which bonds shall be issued
under the authorization provided in Section 5a; SO, and Sc of Act 342. Interest on the bonds may be
capitalized and paid from the bond proceeds for a period not exceeding the estimated construction
period and one year thereafter. In the event that the payments are not made and the bonds are not
issued within three years from the date of this Contract, then unless extended by mutual agreement
it shall become null and void, except that the Municipalities shall pay all engineering, legal and
other costs and expenses theretofore incurred and shall be entitled to all plans, specifications and
other engineering data and materials.
14. Upon completion of the Project the County and the Municipalities hereby agree that the
operation and maintenance of all of the facilities of the Systems shall be carried on and continued
in the same fashion and manner as integral parts of tee Systems as are now in existence and in
effect pursuant to the Evergreen Agreement and the Farminton Agreement, with costs thereof billed;
collected and paid as at present.
If a grant; advance or payment becomes available from the state or federal governments or
any other source; each Municipality hereby agrees to adopt such resolutions or ordinances as may be
required by state or federal laws; regulations or orders to make the County and the Project and the
Systems eligible to accept and receive the grant, advance or payment; and if the terms of the grant,
advance or payment require a local contribution; each Municipality hereby agrees to raise and make
such local contribution.
It is anticipated between the parties hereto that the Project to be built shall qualify
for a federal grant in accordance with 40 Code of federal Regulations; Part 35.2108. For purposes
Commissioners Minutes Continued. June 28, 1990 207
And:
City Clerk
VILLAGE OF BINGHAM FARMS CITY OF KEEGO HARBOR
By: By:
President Mayor
And: And:
Village Clerk City Clerk
TOWNSHIP OF BLOOMFIELD
By:
Supervisor
And:
Township Clerk
Mr. Chairperson; on behalf of the Planning and Building Committee, I move adoption of the
foregoing resolution.
PLANNING AND BUILDING COMMITTEE
Larry P. Crake, Chairperson
Moved by Crake supported by Wolf the resolution be adopted.
AYES: Skarritt, Wolf, Aaron. Bishop, Caddell, Chester; Crake, Gosling, Huntoon, Jensen,
Johnson, R. Kuhn, Law, McCulloch, McPherson, Moffitt, Oaks, Olsen, Pappageorge, Pernick, Price, Rewold.
(22)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
Misc. 90153
By Planning and Building Committee
Ill RE: Drain Commissioner - RESOLUTION TO AUTHORIZE EVERGREEN AND FARMINGTON SEWAGE DISPOSAL SYSTEM
POLLUTION CONTROL FACILITIES CITY OF LATHROP VILLAGE EXTENSION NO. 1 CONTRACT
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS the County of Oakland (the "County") has heretofore established and constructed
and acquired the Evergreen Sewage Diseosal System pursuant to the Evergreen Sewage Disposal System
Agreement, dated November 10, 1958, as amended, to serve the Evergreen Sewage . Disposal District;
within such district lies all of the City of Lathrup Village (the "city"); and
WHEREAS the County has heretofore established and constructed and acquired the Farmington
Sewage Disposal System pursuant to the Farminoton Sewage Disposal System Agreement, dated November 1,
1957, as amended; and
WHEREAS the State of Michigan Department of Natural Resources designated the areas and
districts served by the Evergreen Sewage Disposal System and the Farmington Sewage Disposal System
as a single plan of study area for the purposes of Step I Facilities Planning; and
WHEREAS the County established under and pursuant to Act No. 342; Public Acts of Michigan,
1939, as amended ("Act 342"), a system of sewage disposal improvements and services to serve the
Evergreen Sewage Disposal District and the Farmington Sewage Disposal District, which system as so
established was designated as the "Everyreen and Farmington Sewage Disposal System" and the Oakland
County Drain Commissioner was designated and appointed as the "county agency" for the Evergreen and
Farmington Sewage Disposal System with all the powers and duties with respect to said system as are
provided by law and especially by Act 342; and
WHEREAS it is now necessary to improve, enlarge and extend the Evergreen and Farmington
Sewage Disposal System by the acquisition and construction of the hereinafter described Evergreen
and Farmington Disposal System Pollution Control Facilities City of Lathrup Village Extension No. 1;
and
WHEREAS by the terms of Act 342; the County and the City are authorized to enter into a
Contract for the acquisition, construction and financing of the Evergreen and Farmington Sewage
Disposal System Pollution Control Facilities City of Lathrup Village System Extension No. 1
consisting of sewage disposal facilities to serve the City and for the payment of the cost thereof
by the City, with interest, and the County is then authorized to issue its bonds to provide the
funds necessary therefor; and
WHEREAS there has been submitted to this Board of Commissioners a proposed contract
between the County, by and through the County Drain Commissioner, County Agency, party of the first
part, and the City, party of the second part (the "Contract"), which Contract provides for the
acquisition, construction and financing of the Evergreen and Farmington Sewage Disposal System
Pollution Control Facilities City of Lathrup Village Extension No 1 (the "Project"), and which
Contract is hereinafter set forth in full; and
WHEREAS there have also been submitted for approval and adoption by this Board of
Commissioners; preliminary plans, specifications and estimates of the cost and period of usefulness
208
Commissioners Minutes Continued. June 28, 1990
of the Project; and
WHEREAS the Contract provides for the issuance hereafter of bonds by the County to defray
part of the cost of the Project; said bonds to be secured by the contractual obligations of the City
to pay to the County amounts sufficient to pay the principal of and interest on the hereafter
authorized bonds and to pay such paying agent fees and other expenses as may be incurred OD account
eyf said bonds; and
WHEREAS this Board of Commissioners desires to proceed with the establishment of this
Project and the approval and execution of the Contract to acquire, construct and finance the Project
as provided in the Contract.
THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF OAKLAND COUNTY, MICHIGAN, as
follows:
1. ESTABLISHMENT OF SYSTEM AND DESIGNATION OF COUNTY AGENCY. This Board of Commissioners
by majority vote of its members-elect does hereby authorize and direct that there be established,
and there is hereby established, under and pursuant to Act 342, sewage disposal facilities to be
known as the 'Evergreen and Farmington Sewage Disposal System Pollution Control Facilities City of
Lathrup Village Extension No. 1," which shall consist of enlargements, additions and improvements to
the Evergreen and Farmington Sewage Disposal System, as specified and to be located as shown in
Exhibit A to the Contract; that the Project shall serve the City; that the Oakland County Drain
Commissioner is hereby designated and appointed as the "County Agency" for the Evergreen and
Farmington Sewage Disposal System Pollution Control Facilities City of Lathrup Village Extension No.
1; that the County Agency shall have all the powers and duties with respect to the Evergreen and
Farmington Sewage Disposal Pollution Control Facilities City of Lathrup Village Extension No. 1 as
are provided by law and especially by Act 342; and that all obligations incurred by the County
Agency with respect to the Evergreen and Farmington Sewage Disposal System Pollution Control
Facilities City of Lathrup Village Extension No. 1, unless otherwise authorized by this Board of
Commissioners; shall be payable solely from funds derived from the City as hereinafter provided.
2. PLANS AND SPECIFICATIONS - ESTIMATES OF PERIOD OF USEFULNESS AND COST. The
preliminary plans and specifications for the Project and the estimates of $13,550,000 as the cost
thereof and of 40 years and upwards as the period of usefulness thereof, as submitted to this Board
of Commissioners be and the same are hereby approved and adopted.
3. APPROVAL OF CONTRACT, The Evergreen and Farmington Sewage Disposal System Pollution
Control Facilities City of Lathrup Village Extension No. 1 Contract dated as of January 1, 1990,
between the County; by and through the County Drain Commissioner, party of the first part, and the
City; party of the second .part, which Contract has been submitted to this Board of Commissioners, be
and the same is hereby approved and adopted, and the County Drain Commissioner is hereby authorized
and directed to execute and deliver the same for and on behalf of the County, in as many
counterparts as may be deemed advisable, after the Contract has been executed by the appropriate
officials of the City. This Contract reads as follows:
EVERGREEN AND FARMINGTON SEWAGE DISPOSAL SYSTEM
POLLUTION CONTROL FACILITIES
CITY OF LATHRUP VILLAGE
EXTENSION NO, 1 CONTRACT
THIS CONTRACT, made and entered into as of the 1st day of January, 1990; by and between
the COUNTY OF OAKLAND; a county corporation in the State of Michigan (hereinafter sometimes referred
to as the "County"), by and through its Drain Commissioner, County Agency, party of the first part;
and the CITY OF LATHRUP VILLAGE,-a home rule city corporation in said county and state (hereinafter
sometimes referred to as the "City"), party of the second part.
WITNESSETH:
WHEREAS the Oakland County Board of Supervisors by resolution;-Misc.-No. .3269, .adopted
August 12; 1957; as amended by resolution, Misc. No. 3435, adopted October 13, 1958, did approve
the establishment of the Evergreen Sewage Disposal System (herein called the 'Evergreen System") to
serve the Evergreen Sewage Disposal District (herein called the "Evergreen District"), within which
Evergreen District are included areas in each of the municipal corporations hereinafter named; and
WHEREAS pursuant to the Evergreen Sewage Disposal System Agreement, dated November 10,
1958, as amended by amendatory agreements dated December 22, 1958 and February 9; 1959; all between
the County and the Cities of Southfield, Birmingham, Bloomfield Hills, Lathrup Village and Troy, the
Village of Westwood (now Village of Beverly Hills), and the Townships of Bloomfield and. Pontiac (now
City of Auburn Hills), municipal corporations in the County; the County acting through its
Department of Public Works, did acquire the original Evergreen System and did finance such
acquisition by the issuance of bonds in anticipation of payments to be made by said municipal
corporations to the County in accordance with the provisions of said Agreement; as amended (herein
referred to as the "Evergreen Agreement"); and
WHEREAS the Oakland County Board Of Supervisors by resolution, Misc. No. 4115; adopted
March 6; 1963, did enlarge the Evergreen District to include all of the Village of Franklin and all
of the Village of Bingham Farms within the area to be served by the Evergreen System; and
WHEREAS the Oakland County Board of Supervisors by resolution, Misc. No. 3270, adopted
August 12; 1957, as amended by resolution; Misc. No, 3339; adopted January 24, 1958, did approve the
establishment of the Farmington Sewage Disposal System (herein called the "Farmington System") to
serve the Farmington Sewage Disposal District (herein called the "Farmington District") within which
Farmington District are included areas in each of the municipal corporations hereinafter named; and
Commissioners Minutes Continued. June 28, 1990 209
WHEREAS pursuant to the Farmington Sewage Disposal System Agreement, dated November 1;
1957, as amended by amendatory agreements dated December 22, 1958 and February 9, 1959,. all between
the County and the Cities of Southfield and Keego Harbor and the Townships of West Bloomfield and
Farmington (now City of Farmington Hills); municipal corporations in said County of Oakland. the
County acting through its Department of Public Works, did acquire the original Farmington System and
did finance such acquisition by the issuance of bonds in anticipation of payments to be made by said
municipal corporations to the County in accordance with the provisions of said Agreement, as amended
(herein referred to as the "Farmington Agreement"); and
WHEREAS by annexation of part of the former Township of Farmington the City of Farmington
has become a user of the Farmington System and has area included in the Farmington District; and
WHEREAS by contractual relationships with members of the Farmington System, the City of
Sylvan Lake and the City of Orchard Lake Village have become users of the Farmington System; and
WHEREAS the State of Michigan Department of Natural Resources designated the areas and
districts served by the Evergreen System and the Farmington System as a single plan of study area
for the purposes of Step I Facilities Planning and determined that there is a need to obtain
studies, reports, plans and estimates for the abatement of pollution, control of pollutants and
polluting discharges, and the relief of both the Evergreen System and the Farmington System; and
WHEREAS the County established under and pursuant to Act No, 342, Public Acts of Michigan,
1939, as amended, a system of sewage disposal improvements and services to serve the areas and the
districts heretofore designated and described in Oakland County; Michigan, in Resolutions No. 3269,
3435 and 4115 as the Evergreen District and in Resolutions No. 3270 and 3339 as the Farmington
District; which system as so established was designated as the "Evergreen and Farmington Sewage
Disposal System (herein called the "System") and the Oakland County Drain Commissioner was
designated and appointed as the "County Agency' for the System with all the powers and duties with
respect to the System as are provided by law and especially by said Act 342; and
WHEREAS under and subject to the terms of Act 342, the County is authorized, through the
County. Agency, to acquire and construct the project consisting of sewage disposal improvements and
pollution control facilities hereinafter described as part of the System, the County and the City
are authorized to enter into a contract, as hereinafter provided, for the acquisition and
construction of the project and for financing all or part of the cost thereof by the issuance of
bdnds by the County secured by the pledge of the full faith and credit of the City to pay such cost
with interest to the County in installments extending over a period not exceeding forty (40) years,
and the County is authorized to issue such bonds and, if authorized by majority vote of the
members-elect of its Board of Commissioners, to pledge its full faith and credit for the payment of
such bonds and the interest thereon; and
WHEREAS the City is in urgent need of such sewage disposal improvements and pollution
control facilities to provide the means of collecting and disposing of sanitary sewage of the City,
in order to abate pollution of the waters of the City and thus to promote the health and welfare of
the residents thereof, which improvements and facilities would likewise benefit the County and its
residents, and the parties hereto have concluded that such improvements and facilities can be most
economically and efficiently provided and financed by the County through the exercise of the powers
conferred by Act 342, and especially Sections 5a, 5b and Sc thereof; and
WHEREAS the County and the City desire to proceed with acquisition and construction of
facilities using a combination of Federal and State grant moneys and local funds as needed for the
proposed project as shown on Exhibit "A" hereto attached (the "Project"), for which Project
contractual arrangements for design; construction and financing are required only with the City
among all of the municipalities named herein above as participants in and users of the System; and
WHEREAS the County Agency has obtained preliminary plans for the Project and also an
estimate of $13,550,000 as the total cost • of —the Proiect'and •an restimate of forty (40) years and
upwards as the period of usefulness thereof; all of which have been prepared by Hubbell, Roth &
Clark, Inc. and Giffels-Webster Engineers, Inc. (hereinafter sometimes referred to as the consulting
engineers) and are submitted herewith for approval by the Board of Commissioners of the County and
the City Council of the City and will be placed on file in the office of the County Agency, said
estimates being set forth in Exhibit. "8" hereunto attached; and
WHEREAS in order to provide for the acquisition and construction of the Project by the
County and the financing of the cost thereof by the issuance of County bonds, and for other related
matters, it is necessary for the parties hereto to enter into this contract.
THEREFORE IN CONSIDERATION OF THE PREMISES AND THE COVENANTS OF EACH OTHER, THE PARTIES
HERETO AGREE AS FOLLOWS:
1. The parties hereto do 'hereby approve and agree to the establishment, acquisition,
construction and financing of the Project, as herein provided, under and pursuant to Act 342. The
city, by way of compliance with Section 29, Article VII; Michigan Constitution of 1963 consents and
agrees to the establishment of the System and the location of the Project within the corporate
boundaries of the City and to the use by the County of its streets, highways, alleys, lands,
rights-of-way or other public places for the purpose and facilities of the System and the Project
and any improvements, enlargements or extensions thereof, and the City further agrees that, in order
to evidence and effectuate the foregoing agreement and consent, it will execute and deliver to the
County such grants of easement, right-of-way; license, permit or consent as may be requested by the
County.
2. The Project shall consist of the facilities shown on Exhibit A which is hereunto
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Commissioners Minutes Continued. June 28, 1990
attached and which is hereby made a part hereof, and as are more particularly set forth in the
preliminary plans which have been prepared and submitted by the consulting engineers, which plans
are on file with the County Agency and are hereby approved and adopted. The Project shall be
acquired and constructed substantially in accordance with the said preliminary plans and in
accordance with final plans and specifications to be prepared and submitted by the consulting,
,igineers, but variations therefrom which do not materially change the location, capacity or overall
design of the Project, and which do not require an increase in the total estimated cost of the
Project, may be permitted on the authority of the County Agency. Other variations or changes may be
made if approved by the County Agency and by resolution of the City Council of the City and if
provisions required by Paragraph 8 hereof are made for payment or financing of any resulting
increase in the total estimated cost. The estimate of cost of the Project and the estimate of
period of usefulness thereof as set forth in Exhibit B are likewise hereby approved and adopted.
a. The County Agency shall take or cause to be taken all actions required or necessary,
in accordance with Act 342, to procure the issuance and sale of bonds by the County, in one or more
series, in whatever aggregate principal amount is necessary to be so financed to defray that part of
the total cost to the County of the Project which is in excess of funds available from Federal
and/or State grants or other sources. Such bonds shall be issued in anticipation of, and be payable
primarily from, the payments to be made by the City to the County as provided in this contract, and
shall be secured secondarily, if so voted by the Board of Commissioners of the County, by the pledge
of the full faith and credit of the County, and the said bonds shall be payable in annual maturities
the last of which shall be not more than forty (40) years from the date thereof.
4. The County Agency shall obtain and accept an offer of grant by the EPA/DNR for the
Project, proceed to take construction bids for the Project and, subject to the sale and delivery of
said bonds, enter into construction contracts with the lowest responsible bidder or bidders, procure
from the contractors all necessary and proper bonds, cause the Project to be constructed within a
reasonable time, and do all other things required by this contract and the laws of the State of
Michigan. All certificates for required payments to contractors shall be approved by the consulting
engineers before presentation to the County Agency and the latter shall be entitled to rely on such
approval in making payment.
The County hereby agrees that it will secure and maintain, or cause to be secured and
maintained, during the period of construction adequate property damage and public liability
insurance covering all facilities to be constructed pursuant to this contract. All policies and
memoranda of insurance shall provide that the County and the City shall be insured parties
thereunder and shall contain a provision requiring that the City be notified at least ten days prior
to cancellation thereof. One copy of each policy and memorandum of insurance shall be filed with
the City.
S. It is understood and agreed by the parties hereto that the System is to serve the City
and not the individual property owners and users thereof, unless by special arrangement between the
County Agency and the City. It is the responsibility of the City to require connection to and use
of the facilities of the System and to provide such additional facilities, as may be needed, so that
the City shall require connection to and use of the facilities and shall cause to be constructed and
maintained, directly or through the County, any such necessary additional facilities. The County
shall not be obligated hereunder to acquire or construct any facilities other than those designated
in paragraph 2 hereof.
6. The city shall pay to the County the total cost of the Project, less such funds as may
become available from Federal and/or State grants or from other sources. The total cost for this
purpose shall include; in addition to the items of the nature set forth in Exhibit B (represented by
the principal amount of the bonds to be issued by the County plus such funds as may become available
from Federal and/or State grants or other sources), all interest payable by the County on said bonds
and all paying agent fees and other expenses and charges (including the County Agency's
administrative expenses) which are payable on account of said bonds (such fees, expenses and charges
being herein called “bond service charges"). Such payments shall be made to the County in annual or
semiannual installments which shall be due and payable at least thirty days prior to the day of the
month specified in the County bonds as the annual principal maturity date thereof or semiannual
interest date. Such installments shall be so paid in each year, if any principal and/or
non-capitalized interest on said bonds falls due during the twelve-month period beginning on such
principal maturity date in said year, and the amount of each installment so due and payable shall be
at least sufficient to pay all such principal and/or interest thus falling due and all bond service
charges then due and payable. The County Agency shall, within thirty days after delivery of the
County bonds to the purchaser, furnish the City Treasurer with a complete schedule of the principal .
and interest Maturities thereon, and the County Agency shall also, at least thirty days before each
payment is due to be made by the City, advise the City Treasurer of the amount payable to the County
on such date. If the City fails to make any payment to the County when due, the same shall be
subject to a penalty of it thereof for each month or fraction thereof that such amount remains
unpaid after due. Failure of the County Agency to furnish the schedule or give the notice as above
required shall not excuse the City from the obligation to make payment when due. Such payments
shall be made by the City when due whether or not the Project has then been completed or placed in
operation. In the event that additional County bonds shall be issued under the authority of this
contract, to defray a part of the cost of the Project, the foregoing obligations shall apply to such
part of the cost and to said additional bonds insofar as appropriate thereto.
Commissioners Minutes Continued. June 28, 1990 211
7. The city may pay in advance any amount payable to the County pursuant to this contract
and in that event shall be credited therefor on future-due amounts as may be agreed by the parties
hereto. The City may also pay in advance any one or more installments or any part thereof (a) by
surrendering to the County any of said County bonds of like principal amount or (b) by paying to
the County in cash the principal amount of any County bonds which are subject to redemption prior to
maturity, plus all interest thereon to the first date upon which such bonds may be called tor
redemption, and plus all applicable call premiums and bond service charges, and in such event the
County Agency shall call said bonds for redemption at the earliest possible date; provided, however,
that such advance cash payment and credit therefor shall be limited in amount at any given time to
the amount of bonds available for redemption by call within the twelve-month period succeeding the
date of the advance cash payments. The installments or parts thereof so prepaid shall be deemed to
be the installments or parts thereof falling due in the same calendar year as the maturity dates of
the bonds surrendered or called for redemption and bonds so surrendered or redeemed shall be
cancelled,
8, in the event that it shall become necessary to increase the estimated cost of the
Project as hereinbefore stated, or if the actual cost of the Project shall exceed the estimated
cost, whether as the result of variations or changes permitted or needed to be made in the approved
plans or otherwise, then (without execution of any further contract or amendment of this contract)
the City Council, by resolution adopted within fifteen days after the receipt of construction bids,
may direct that a portion of the Project not yet acquired or constructed and not under contract to
acquire or construct be deleted sufficient to reduce the total cost to an amount which shall not
exceed the total estimated cost of the Project, as hereinbefore stated, by more than 5%; provided
that such deletion shall not materially change or terminate the eligibility of the Project for
Federal and/or State grants, or change the general scope, overall design, and purpose of the
Project. In the adoption of such a resolution the City shall pay or procure the payment of the
increase or excess up to said 5°4 in cash or shall agree that County bonds in an increased or
additional amount shall (upon adoption of an authorizing resolution therefor by the Board of
Commissioners) be issued to defray such increased or excess cost, to the extent that funds therefore
are not available from other sources. Where the effect of any increase in the estimated cost of the
Project or of any excess of actual cost over estimated cost would be to cause the total cost of the
Project to exceed by more than 5% its total estimated cost as hereinbefore stated, the County shall
not enter into any new or further contract or change order for acquisition or construction of the
Project or any part thereof or incur any new or further obligation for or pay any new or further
item of cost thereof until the City Council shall have adopted a resolution approving such increase
or excess and agreeing that the same (or such part thereof as is not available from other sources)
shall be paid or its payment procured by the City in cash or be defrayed by the issuance of
increased or additional County bonds in anticipation of increased or additional payments agreed to
be made by the city to the County in the manner hereinbefore provided; provided, further, that the
adoption of such resolution by the City Council shall not be required prior to or as a condition
precedent to the issuance of additional bonds by the County, if the County has previously issued or
contracted to sell bonds to pay all or part of the cost of the Project and the Issuance of the
additional bonds is necessary (as determined by the County) to pay such increased, additional or
excess costs as are essential to completion of the Project according to the plans as last approved
prior to the time when the previous bonds were issued or contracted to be sold,
9. In the event that the actual cost of the Project is less than the total estimated
cost, then any surplus available to the County from the sale of County bonds shall, at the option of
the City Council, be used either to improve, enlarge or extend the System or to apply upon future
payments due to the County ., or to redeem bonds maturing or callable for payment within one year to
to purchase bonds of any maturity on the open market', provided that such surplus shall be used to
improve ., enlarge or extend the System only if authorized by the Board of Commissioners. Any such
surplus may, for the purpose of improving; enlarging or extending the System, be supplemented by
cash payments to be made by the City or by the proceeds of additional County bonds, or such
improvements, enlargements or extensions may be financed entirely from such cash payments, where
authorized by the City Council. Where any such surplus is used to redeem or purchase bonds ., the
same shall be cancelled, and the payments thereafter required to be made by the City to the County
shall be reduced so as to reflect the resulting saving of interest and the payment required to be
made by the city in the calendar year of the stated maturity of said bonds shall be reduced by the
principal amount thereof.
10. Should the City fail for any reason to pay the County at the times specified, the
amounts herein required to be paid, the City does hereby authorize the State Treasurer or other
official charged with the disbursement of unrestricted state funds returnable to the City pursuant
to the Michigan constitution to withhold sufficient funds to make up any default or deficiency in
funds. if the full faith and credit of the County are pledged for the prompt payment of the
principal of and interest on the bonds to be issued by the County and if the County is required to
advance any money by reason of such pledge on account of the delinquency of the City, the County
Treasurer is hereby authorized to notify the State Treasurer to deduct the amount of money so
advanced by the County from any unrestricted moneys in the State Treasurer's possession belonging to
the City and to pay such amount to the County.
The foregoing shall not operate to limit the County's right to pursue any other legal
remedies for the reimbursement of moneys advanced on account of the default of the City.
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Commissioners Minutes Continued. June 28, 1990
11. The City; pursuant to the authorization of Section 5a of Act No. 342, does hereby
pledge its full faith and credit for the prompt and timely payment of its obligations expressed in
this contract and shall each year levy a tax in an amount which, taking into consideration estimated
delinquencies in tax collections, will be sufficient to pay its obligations under this contract
becoming due before the time of the following year's tax collections; provided, however, that if at
he time of making its annual tax levy, the Cite shall have on hand cash or other funds which have
been set aside and pledged or are budgeted or otherwise available for the payment of such
contractual obligations falling due prior to the time of the next tax collection, then the annual
tax levy may be reduced by such amount. Taxes levied by the City shall be without limitation as to
rate or amount. The City Council each year, at least 90 days prior to the final date provided by
law for the making of the annual tax levy, shall submit to the County Agency a written statement
setting forth the amount of its obligations to the County which become due and payable under this
contract prior to the time of the next following year's tax collections, the amount of the funds
which the City has or will have on hand or to its credit in the hands of the County which have been
or will be set aside and pledged for payment of said obligations to the County, and the amount of
the City taxes next proposed to be levied for the purpose of raising money to meet such obligations.
The County Agency shall promptly review such statement and, if he finds that the proposed tax levy
is insufficient, he shall so notify the City Council and the City hereby covenants and agrees that
it will thereupon increase its levy to such extent as may be required by the County Agency.
12. No change in the jurisdiction over any territory in the City shall impair in any
manner the obligations of this contract or affect the obligations of the City hereunder. In the
event that all or any part of the territory of the City is incorporated as a new city or village or
is annexed to or becomes a part of the territory of another municipality, the municipality into
which such territory is incorporated or to which such territory is annexed shall assume the proper
proportionate share of the contractual obligations (including the pledge of full faith and credit)
of the City, which proper proportionate share shall be fixed and determined by the county Agency and
shall be binding upon all parties concerned unless, within sixty (60) days after such incorporation
or annexation becomes effective, the governing body of the municipality into which such territory is
incorporated or to which such territory is annexed and the City Council of the city ., by mutual
agreement and with the written approval of the County Agency, shall fix and determine such proper
proportionate share. The County Agency; prior to making such determination, shall receive a written
recommendation as to the proper proportionate share from a committee composed of one representative
designated by the City Council of the City, one designated by the governing body of the new
Municipality or the municipality annexing such territory and one independent registered engineer
appointed by the County Agency. Each governmental unit shall appoint its representative within
fifteen (15) days after being notified to do so by the County Agency and within a like time the
County Agency shall appoint the engineer third member. if any such representative (other than the
appointee of the County Agency) is not appointed within the time above provided, then the County
Agency may proceed without said recommendation. If the committee shall not make the recommendation
within forty-five (45) days after its appointment or within any extension thereof by the County
Agency, then the County Agency may proceed without such recommendation.
13. This contract is contingent upon the County issuing its negotiable bonds as herein
provided, to defray such part of the total estimated cost of the Project; as if necessary to be
financed, which bonds shall be issued under the authorization provided in Section 5a, 5b and Sc of
said Act 342. Interest on the bonds may be capitalized and paid from the bond proceeds for a period
not exceeding the estimated construction period and one year thereafter. In the event that the
bonds are not issued within three years from the date of this contract, then unless extended by
mutual agreement it shall become null and void, except that the City shall pay all engineering,
legal and other costs and expenses theretofore incurred. hereunder-and shall be .entitled to all
plans; specifications and other engineering data and materials.
14. Upon completion of the Project the County and the City hereby agree that the operation
and maintenance of all of the facilities of the System shall be carried on and continued in the same
fashion and manner as integral parts of the system as provided in paragraph 5 hereof and as are now
in existence and in effect pursuant to the Evergreen Agreement and the Farmington Agreement; with
costs thereof billed-, collected and paid as at present.
If a grant; advance or payment becomes available from the State or Federal governments or
any other source, the City hereby agrees to adopt such resolutions or ordinances as may be required
by State or Federal laws, regulations or orders to make the County and the Project and System
eligible to accept and receive the grant; advance or payment; and if the terms of the grant; advance
or payment require a local contribution, the City hereby agrees to raise and make such local
contribution.
It is anticipated between the parties hereto that the Project to be built shall qualify
for a Federal grant in accordance with 40 Code of Federal Regulations, Part 35.2108. For purposes
of financing the Project; it is anticipated that the Project shall be eligible for Federal grants in
the amounts as noted on Exhibit B. The applicant, Oakland County, in accordance with the
requirements of said 35.2108; agrees to complete the Project regardless of whether or not grant
funding is available for the Project, in accordance with the requirements of said 35.2108.
15. The County shall have no obligation or responsibility for providing facilities except
as herein expressly provided with respect to the acquisition of the Project or as otherwise provided
by contract. The City shall have the authority and the responsibility to provide such other
Commissioners Minutes Continued. June 28, 1990 213
facilities and shall have the right to expand the facilities of the System by constructing or
extending sewers or related facilities, connecting the same to the System ., and otherwise improving
the System. It is expressly agreed, nevertheless, that no such connection shall be made to the
System and no improvements, enlargements or extensions thereof shall be made without first securing
a permit therefor from the County Agency. Any such permit may be made conditional upon inspection
and approval of new construction by the County Agency. It is further agreed that the System shall
be used for collection and conveyance of sanitary sewage only and that the City shall take all
necessary action to prevent entry into the System of storm waters (except as permitted in the
Evergreen Agreement or the Farmington Agreement) and also to prevent entry of sewage or wastes of
such a character as to be injurious to the System or to the public health and safety.
16. All powers, duties and functions vested by this contract in the County shall be
exercised and performed by the County Agency, for and on behalf of the County, unless otherwise
provided by law or in this contract. The County Agency shall prepare, with the aid of its
consultants, such covenants; representations and warranties and have adopted by officials of the
County and of the City such procedures for construction, accounting, payment and operating as are
necessary to comply with the requirements of state and federal law in order to create and maintain
the obligations of the City and of the County under this contract and with respect to the bonds as
valid and binding obligations and in order to assure that the interest on the bonds is excludable
from gross income for federal income tax purposes. Such covenants, representations and warranties
and such procedures shall be evidenced by and set forth in certificates or resolutions prepared for
the County Agency which the City and the County all hereby agree to approve, execute and adopt at or
prior to issuance and delivery of any bonds.
17. The parties hereto recognize that the holders from time to time of the bonds to be
issued by the County under the provisions of Act 342, and secured by the full faith and credit
pledge of the City to the making of the payments as set forth in this contract, will have
contractual rights in this contract, and it is therefore covenanted and agreed that so long as any
of said bonds shall remain outstanding and unpaid, the provisions of this contract shall not be
subject to any alteration or revision which would in any manner adversely affect either the security
of the bonds or the prompt payment of principal or interest thereon. The right to make changes in
this contract., by amendment, supplemental contract or otherwise; is nevertheless reserved insofar as
the same do not have such adverse effect. The parties hereto further covenant and agree that they
will each comply with their respective duties and obligations under the terms of this contract
promptly, at the times and in the manner herein set forth, and will not suffer to be done any act
which would in any way impair the contract of said bonds, the security therefor, or the prompt
payment of principal and interest thereon. It is hereby declared that the terms of this contract
and of any amendatory or supplemental contract and any contract entered into pursuant hereto,
insofar as they pertain to said bonds or to the payment of the security thereof, shall be deemed to
be for the benefit of the holders of said bonds.
18. In the event that any one or more of the provisions of this contract shall for any
reason be held to be invalid; illegal or unenforceable in any respect, such invalidity, illegality
or unenforceability shall not affect any other provisions hereof, but this contract shall be
construed as if such invalid, illegal or unenforceable provision has never been contained herein.
19. This contract shall become effective upon its execution by each party hereto and its
approval by the vote of a majority of the electors of the City qualified to vote and voting thereon
at a general or special election. This contract shall terminate forty (40) years from the date
hereof or on such earlier.date as shall be mutually agreed; provided, however, that it shall not be
terminated at any time prior to the payment in full of the principal of and interest on the County
bonds together with all bond service charges pertaining to said bonds. This contract may be
executed in several counterparts. The provisions of this contract shell inure to the benefit of and
be binding upon the successors and assigns of the parties hereto.
IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed and
delivered by the undersigned, being duly authorized by the respective governing bodies of such
parties, all as of the day and year first above written.
CITY OF LATHRUP VILLAGE COUNTY OF OAKLAND
By: By
Mayor County Drain Commissioner
(County Agency)
By:
City Clerk
4. CONFLICTING RESOLUTIONS. All resolutions and parts of resolutions insofar as they may
be in conflict herewith are rescinded.
Mr. Chairperson, on behalf of the Planning and Building Committee, I move adoption of the
foregoing resolution.
PLANNING AND BUILDING COMMITTEE
Larry P. Crake, Chairperson
Moved by Crake supported by Olsen the resolution be adopted.
AYES: Wolf, Aaron, Bishop, Caddell, Chester, Crake, Gosling, Huntoon, Jensen, Johnson,
R. Kuhn, Law, McConnell, McCulloch, McPherson, Moffitt, Oaks; Olsen, Pappageorge, Pernick, Price,
Rewold, Skarritt. (23)
NAYS: None. (0)
214
Commissioners Minutes Continued. June 28, 1990
A sufficient majority having voted therefor, the resolution was adopted.
Misc. 90154
By Planning and Building Committee
IN RE: Drain Commissioner - RESOLUTION TO APPROVE EVERGREEN AND FARMINGTON SEWAGE DISPOSAL SYSTEMS.
7'.OLLUTION CONTROL FACILITIES - CITY OF TROY - LOCAL RELIEF SEWERS AND SSES REHABILITATION
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS by Resolution No. 7674, adopted September 2, 1976, the County established by
consolidation and merger under and pursuant to Act No. .342, Public Acts of Michigan, 1939; as
amended, a system of sewage disposal improvements and services to serve the areas and the districts
heretofore designated and described in Oakland County, Michigan, in Resolutions No. 3269, 3435 and
4115 as the Evergreen District and in Resolutions No. 3270 and 3339 as the Farmington District,
which consolidated and merged system as so established was designated as the "Evergreen and
Farmington Sewage Disposal Systems" (the "Systems') and the Oakland County Drain Commissioner was
designated and appointed as the "County Agency" for the Systems for the acquisition, construction
and financing of new facilities with all the powers and duties with respect to the acquisition,
construction and financing of facilities for the Systems as are provided by law and especially by
said Act 342; and
WHEREAS the County is the lead applicant and has made and will make applications for
Federal and State grants for the planning, design, contracting and construction of the additional
facilities to enlarge, extend and relieve the Systems as shown on Exhibits A and B set forth in the
Contract hereto attached and incorporated herein, and will coordinate and supervise the compliance
with and performance of conditions and terms of said grants; and
WHEREAS in order to obtain grants, and in order to enlarge, extend and relieve the Systems
and to provide for the City named in the Contract hereto attached additional pollution control
facilities and capacities for the transportation and treatment of sanitary sewage emanating from the
service areas of the Systems in the jurisdiction of said City and to abate and control pollution and
polluting discharges and to comply with requirements imposed by the United States Environmental
Protection Administration and the Michigan Department of Natural Resources, it is necessary that the
County and said City enter into a Contract for construction of and service by the existing
facilities and by additional pollution control facilities herein described; particularly by
reference to the Exhibits to the Contract hereto attached by this reference incorporated herein,
Which additional pollution control facilities as described on Exhibits A and B are called the
"Project" in said •Contract;:-and .
WHEREAS preliminary plans for the Project and also estimates of the cost of such Project
and the period of usefulness thereof have been prepared by Hubbell, Roth & Clark, Inc. (hereinafter
sometimes referred to as the "Consulting Engineers") and are herewith submitted for approval by the
Board of Commissioners of the County, said estimates being set forth in Exhibit B to the form of
Contract attached hereto; and
WHEREAS there has been submitted to this Board of Commissioners a proposed Contract
between the County, by and through the County Drain Commissioner; County Agency, party of the first
part, and the City named in said Contract, parties of the second part, which Contract provides for
the acquisition, construction and financing of the Project pursuant to Act 342; which Contract is
hereinafter set forth in full.
THEREFORE BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF OAKLAND COUNTY, MICHIGAN as
follows:
1. ESTIMATES OF PERIOD OF USEFULNESS AND COST. The estimate of $394,000 as the cost of
the Project described on Exhibits A and B-to the Contract and the estimate. of 30 years and upwards
and the period of usefulness thereof, as submitted to this Board of Commissioners, be and the same
are approved and adopted.
2, APPROVAL OF CONTRACT. The Evergreen and Farmington Sewage Disposal System Pollution
Control Facilities -- City of Troy - Local Relief Sewers and SSES Rehabilitation, dateda of April
1, 1990, between the County, by and through the County Drain Commissioner; party of the first part,
and the City named in said Contract, party of the second part, which Contract has been submitted to
this Board of Commissioners, be and the same is approved and adopted, and the County Drain
Commissioner is authorized and directed to execute and deliver the same for and on behalf of the
County, in as many counterparts as may be deemed advisable; after the Contract has been executed by
the appropriate officials of the City. Said Contract reads as follows:
EVERGREEN AND FARMINGTON SEWAGE DISPOSAL SYSTEM
POLLUTION CONTROL FACILITIES
CITY OF TROY
LOCAL RELIEF SEWERS AND SSES REHABILITATION
THIS CONTRACT, made and entered into as of the 1st day of April, 1990, by and between the
COUNTY OF OAKLAND, a county corporation in the State of Michigan (hereinafter sometimes referred to
as the "County"), by and through its Drain Commissioner; County Agency, party of the first part; and
the CITY OF TROY, a home rule city corporation in said county and state (hereinafter sometimes
referred to as the "City"), party of the second part:
WITNESSETH:
WHEREAS the Oakland County Board of Supervisors by resolution, Misc. No. 3269, adopted
Commissioners Minutes Continued. June 28, 1990 215
August 12; 1957, as amended by resolution; Misc. No. 3435, adopted October 13, 1958, did approve the
establishment of the Evergreen Sewage Disposal System (herein called the "Evergreen System") to
serve the Evergreen Sewage Disposal District. (herein called the 'Evergr een District'), within which
Evergreen District are included areas in each of the municipal corporations hereinafter named; and
WHEREAS pursuant to the Evergreen Sewage Disposal System Agreement, dated November 10,
1958, as amended by amendatory agreements dated December 22, 1958, and February 9, 1959, all between
the County and the cities of .Southfield, Birmingham, Bloomfield Hills, Lathrup Village and Troy, the
Village of Westwood (now Village of Beverly Hills), and the Townships of Bloomfield and Pontiac (now
City of Auburn Hills), municipal corporations in tne County, the County acting through its
Department of Public Works, did acquire the original Evergreen System and did finance such
acquisition by the issuance of ponds in anticipation of payments to be made oy said municipal
corporations to the County in accordance with the provisions of said Agreement, as amended (herein
referred to as the 'Evergreen Agreemene); and
WHEREAS the Oakland County Board of Supervisors by resolution, Misc. No, 4115, adopted
March 6, 1963, did enlarge the Evergreen District to include all of the Village of Franklin and all
of the Village of Bingham Farms witnin the area to be served by the Evergreen System; and
WHEREAS the Oakland County Board of Supervisors by resolution, Misc. No. 3270, adopted
August 12, 195), as amended by resolution, Misc. No. 3339, adopted January 24, 1956 did approve the
establishment of the Farmington Sewage Disposal System (herein calico the "Farmington System") to
serve the Farmington Sewage Disposal District (herein called the "Farmington District") within which
Farmington District are included areas in each of the municipal corporations hereinafter named; and
WHEREAS pursuant to the Farmington Sewage disposal System Agreement, dated November 1,
1967, as amended by amendatory agreements dated December 22, 1958, and February 9, 1959, all between
the County and the Cities of Southfield and Keego Harbor and the Townships of West Bloomfield and
Farmington (now City of Farmington Hills) municipal corporations in said County of Oakland, the
County- acting through its Department of Public Works, did acquire the original Farmington System and
did finance such acquisition by the issuance of bonas in anticipation of payments to be made by said
municipal corporations to the County in accordance with the provisions of said Agreement; as amended
(herein referred to as the "Farmington Agreement"); and
WHEREAS by annexation of part of the former Township of Farmington tne City of Farmington
has become a user of the Farmington System ano has area incluaed in the Farmington District; and
WHEREAS by contractual relationships with members of the Farmington System, the City of
Sylvan Lake and the City of Orchard Lake Village have become users of the Farmington System; and
WHEREAS the State of Michigan Department of Natural Resources (herein the "MCNR") acting
on behalf of itself and the United States Environmental Protection Agency (herein the "USEPA')
designated the areas and districts served by the Evergreen System and the Farmington System as a
single plan of study area for the purposes of Step 1 Facilities Planning and. determined that there
is a need to obtain studies, reports, plans and estimates for the abatement of pollution, control of
pollutants and polluting discharges, and the relief of both the Evergreen System and the Farmington
System and issued a Final Order of Abatement to the County and each municipal corporation using
either System or in either District; and
WHEREAS the County established under and pursuant to Act No. 342, Public Acts of Michigan,
1939, as amended, merged systems of sewage disposal improvements and services to serve the areas
and the districts heretofore designated and described in Oakland County, Michigan, in Resolutions
No. 3269, 3435 and 4115 as tne Evergreen District and in Resolutions Ho. 32/0 and 3339 as the
Farmington District, which merged system as so established was designated as the "Evergreen and
Farmington Sewage Disposal Systems" (herein called the "Systems") and the "Evergreen and Farmington
Sewage Disposal Districts" (herein called the 'Districts") and the Oakland County Drain Commissioner
. was designated and appointed as tne "County Agency" for the Systems with all the powers and duties
with respect to the SYstems as are provided by law and especially by said Act 342; and
WHEREAS tha County and all of the municipal corporations nescrioed in the foregoing
paragraphs as users of the Farmington System and the Evergreen System and as having area included in
the Farmington District and in the Evergreen District (herein the "Municipalities") have; at the
request and approvil of the MDNR and the USEPA, entered into an intermunicipal Contract Concerning
Wastewater Treataent and Pollution Control Projects for the Systems dated as of September 30, 1989
(the "Intermunicioal Contract"), in which the County and the Municipalities agree to acquire
Facilities and to carry out Projects as described in said intermunicipal Contract throughout the
Systems in various parts of the Districts all in compliance with the Final Order of Abatement and
Federal Grant requirements; and
WHEREAS under and subject to the terms of Act 342: the County is authorized, through the
County Agency, to acquire and construct the Project consisting of sewage disposal improvements and
pollution control facilities hereinafter described as part of the Systems; the County and the City
are authorized to enter into a contract; as hereinafter provided, for the acquisition and
construction of the Project and for financing all or part of the cost thereof by the issuance of
bonds by the County secured by the pledge of the full faith and credit of the City to pay such cost
with interest to the County in installments extending over a period not exceeding forty (40) years;
and the County is authorized to issue such bonds and; if authorized by majority vote of the members-
elect of its Board of Commissioners, to pledge its full -faith and credit for the payment of such
bonds and the interest thereon; and
WHEREAS the City is in urgent need of such sewage disposal improvements and pollution
control facilities to comply with the MDNR Final Order of Abatement and to provide the means of
216
Commissioners Minutes Continued. June 28, 1990
collecting and disposing of sanitary sewage of the City, in order to abate pollution of the waters
of the City and thus to promote the health and welfare of the residents thereof, which improvements
and facilities would likewise benefit the County and its residents, and the parties hereto have
concluded that such improvements and facilities can be most economically and efficiently provided
and financed by the county through the exercise of the powers conferred by Act 342, and especially
...ctions 5a, 5b and Sc thereof; and
WHEREAS the County and the City desire to proceed with acquisition and construction of
facilities using a combination of Federal and State grant moneys and local funds as needed for the
proposed Project as shown on Exhibit 'A" hereto attched (the "Project”), for which Project
contractual arrangements for design, construction and financing are required only with the City
among all of the municipalities named herein above as participants in and users of the System; and
WHEREAS the County Agency has obtained preliminary plans for the Project and also an
estimate of $394,000 as the total cost of the Project and an estimate of thirty (30) years and
upwards as the period of usefulness thereof, all of which have been prepared by Hubbell, Roth &
Clark, inc. (hereinafter sometimes referred to as the consulting engineers) and are submitted
herewith for approval by the Board of Commissioners of the County and the City Council of the City
and will be placed on file in the office of the County Agency, said estimates being set forth in
Exhibit "B" hereunto attached; and
WHEREAS in order to provide for the acquisition and construction of the Project by the
County and the financing at the cost thereof and for other related matters, it is necessary for the
parties hereto to enter into this contract.
THEREFORE -, IN CONSIDERATION OF THE PREMISES AND THE COVENANTS OF EACH OTHER, THE PARTIES
HERETO AGREE AS FOLLOWS:
1. The parties hereto do hereby approve and agree to the establishment, acquisition,
construction and financing of the Project, as herein provided, under and pursuant to Act 342 and as
provided in the intermunicipal Contract, The City, by way of compliance with Section 29, Article
VII, Michigan Constitution of 1963, consents and agrees to the establishment of the System and the
location of the Project within the corporate boundaries of the City and to the use by the County of
its streets, highways, alleys, lands ., rights-of-way or other public places for the purpose and
facilities of the system and the Project and any improvements, enlargements or extensions thereof,
and the City further agrees that, in order to evidence and effectuate the foregoing agreement and
consent, it will execute and deliver to the County such grants of easement, right-of-way, license,
permit or consent as may be requested by the County,
2. The Project shall consist of the facilities shown on Exhibit A which is hereunto
attached and which is hereby made a part hereof, and as are more particularly set forth in the
preliminary plans which have been prepared and submitted by the consulting engineers, which plans
are on file with the County Agency and are hereby approved and adopted. The Project shall be
acquired and constructed substantially in accordance with the said preliminary plans and in
accordance with final plans and specificiations to be prepared and submitted by the consulting
engineers, but variations therefrom which do not materially change the location, capacity or overall
design of the Project, and which do not require an increase in the total estimated cost of the
Project; may be permitted on the authority of the County Agency. Other variations or changes may be
made if approved by the County Agency and by resolution of the City Council of the City and if
provisions required by Paragraph 8 hereof are made for payment or financing of any resulting
increase in the total estimated cost. The estimate of cost of the Project and the estimate of
period of usefulness thereof as set forth in Exhibit B are likewise hereby approved and adopted.
3. The County Agency shall receive from the City and the City shall pay on the execution
on this Contract the amount of Two Hundred Thousand Dollars ($200,000) and thereafter the City shall
pay the balance of the cost of the Project prior to award of -a Construction Contract as provided in
paragraph 4 below and in Exhibit C attached hereto.
4. The County Agency shall obtain and accept an offer of grant by the USEPA/MDNR for the
Project, proceed to take construction bids for the Project and, subject to the receipt of ,payments
from the City, enter into construction contracts with the lowest responsible bidder or bidders,
procure from the contractors all necessary and proper bonds; cause the Project to be constructed
within a reasonable time, and do all other things required by this contract and the laws of the
State of Michigan. All certificates for required payments to contractors shall be approved by the
consulting engineers before presentation oto the County Agency and the latter shall be entitled to
rely on such approval in making payment.
The County hereby agrees that it will secure and maintain, or cause to be secured and
maintained, during the period of construction adequate property damage and public liability .
insurance covering all facilities to be constructed pursuant to this contract. All policies and
memoranda of insurance shall provide that the County and the City shall be insured parties
thereunder and shall contain a provision requiring tht the City be notified at least ten days prior
to cancellation thereof. One copy of each policy and memorandum of insurance shall be filed with
the City.
5. It is understood and agreed by the parties hereto that the Systems are to serve the
City and not the individual property owners and users thereof; unless by special arrangement between
the County Agency and the City. It is the responsibility of the City to require connection to and
use of the facilities of the Systems and to provide such additional facilities; as may be needed; so
that the City shall require connection to and use of the facilities and shall cause to be
Commissioners Minutes Continued. June 28, 1990 217
constructed and maintained, directly or through the County; any such necessary additional
facilities. The County shall not be obligated hereunder to acquire or construct any facilities
other than those designated in paragraph 2 hereof.
6. The City shall pay to the County the total cost of the Project; less such funds as may
become available from Federal and/or State grants or from other sources. The total cost for this
purpose shall include, all items of the nature set forth in Exhibit B and be made as provided in
Exhibit C.
'L in the event that it shall become necessary to increase the estimated cost of the
Project as nereinbefore stated, or if the actual cost of the Project shall exceed the estimated cost
whether as the result of variations or changes permitted or needed to be wade in the approved plan-s .
or otherwise, then (with execution of any further contract or amendment of this contract) the City
Council, by resolution adopted within fifteen days after the receipt of construction bids, may
direct that a portion of the Project not yet acquired or constructed and not under contract to
acquire or construct be deleted sufficient to reduce the total cost to an amount which shall not
exceed the total estimated cost of the Project; as hereinbefore stated, •by more than 5, provided
that such deletion shall not materially change or terminate the eligibility of the Project for
Federal and/or State grants, or change the general scope, overall design, and purpose of the
Project. In the adoption of such a resolution the City shall pay or procure the payment of the
increase or excess up to said 5% in cash or shall agree that County bonds shall (upon adoption of an
authorizing resolution therefor by the Board of Commissioners) be issued to defray such increased or
excess cost, to the extent that funds therefor are not available from other sources. Where the
effect of any increase in the estimated cost of the Pr9J..1 or of any excess of actual cost over
estimated cost would be to cause the total cost of the Project to exceed by more than 5% its total
estimated.costas hereinbefore stated, the County shall not enter into any new or further contract or
change order for acquisition or construction of the Project or any part thereof or incur any new or
further obligation for or pay any or further item of cost thereof until the City Council shall
have adopted a resolution approving such increase or excess and agreeing that the same (or such part
thereof as is not available from other sources) shall be paid or its payment procured by the City in
cash or be defrayed by the issuance of County bonds in anticipation of increased or additional
payments agreed to be made by the City to the County in the manner hereinbefore provided; provided,
further, that the adoption of such resolution by the City Council shall not be required prior to or
as a condition precedent to the issuance of bonds by the County, if the County has previously issued
or contracted to sell bonds to pay all or part of the cost of the Project and the issuance of the
additional bonds is necessary (as determined by the County) to pay such increased, additional or
excess costs as are essential to completion of the Project according to the plans as last approved
prior to the time when the previous bonds were issued or contracted to be sold.
8. In the event that the actual cost of the Project is less than the total estimated
cost, then any surplus available to the County from payment by the City or from the sale of County
bonds shall, at the option of the City Council; be used either to improve, enlarge or extend the
Systems or to apply upon future payments due to the County, or to redeem bonds maturing or callable
for payment within one year or to purchase bonds of any maturity on the open market; provided that
such surplus shall be used to improve, enlarge or extend the Systems only if authorized by the Board
of Commissioners. Any such surplus may, for the purpose of improving, enlarging or extending the
Systems, be supplemented by cash payments to be made by the City or by the proceeds of County bonds;
or such improvements; enlargements or extensions may be financed entirely from such cash payments;
where authorized by the City Council. Where any such surplus is used to redeem or purchase bonds,
the same shall be cancelled; and the payments thereafter required to be made by the City to the
County shall be reduced so as to reflect the resulting saving of interest and the payment required
to be made by the City in the calendar year of the state maturity of said bands shall be reduced by
the principal amount thereof.
9. The City, pursuant to the authorization of Section 5a of Act No. 342, does hereby
pledge its full faith and credit for the prompt and timely payment of its obligations ,expressed in
this contract and shall each year levy a tax in an amount which; taking into consideration estimated
delinquencies in tax collections; will be sufficient to pay its obligations under this contract
becoming due before the time of the following year's tax collections; provided, however, that if at
the time of making its annual tax levy, the City shall have on hand cash or other funds which have
been set aside and pledged or are budgeted or otherwise available for the payment of such
contractual obligations falling due prior to the time of the next tax collection; then the annual
tax levy may be reduced by such amount.
10. No change in the juriseIction over any territory in the City shall impair in any
manner the obligations of this contract or affect the obligations of the City hereunder. In the
event that all or any part of the territory of the City is incorporated as a new city or village or
is annexed to or becomes a part of the territory of another municipality; the municipality into
which such territory is incorporated or to which such territory is annexed shall assume the proper
proportionate share of the contractual obligations of the City, which proper proportionate share
shall be fixed and determined by the County Agency and shall be binding upon all parties concerned
unless, within sixty (60) days after such incorporation or annexation becomes effective; the
governing body of the municipality into which such territory is incorporated or to which such
territory is annexed and the City Council of the City, by mutual agreement and with the written
approval of the County Agency; shall fix and determine such proper proportionate share. The County
Commissioners Minutes Continued. June 28, 1990
Agency, prior to making such determination, shall receive a written recommendation as to the proper
proportionate share from a committee composed of one representative designated by the City Council
of the City, one designated by the governing body of the new municipality or the municipality
annexing such territory and one independent registered engineer appointed by the County Agency.
Each governmental unit shall appoint its representative within fifteen (15) days after being
notified to do so by the County Agency and within a like time the County Agency shall appoint the
engineer third member. If any such representative (other than the appointee of the County Agency)
is not appointed within the time above provided, then the County Agency may proceed without said
recommendation. If the committee shall not make the recommendation within forty-five (45) days
after its appointment or witnin any extension thereof by the County Agency, then the County Agency
may proceed without such recommendation.
11. Upon completion of the Project the County and the City hereby agree that the operation
and maintenance of all of the facilities of the Systems shall be carried on and continued in the
same fashion and manner as integral parts of the Systems as provided in paragraph 5 hereof and as
now in existence and in effect pursuant to the Evergreen Agreement, the Farmington Agreement and the
Intermunicipal Agreement with costs thereof billed, collected and paid as at present.
If a grant, advance or payment becomes available from the State or Federal governments or
any other source, the City hereby agrees to adopt such resolutions or ordinances as may be required
by State or Federal laws, regulations or orders to make the County and the Project and Systems
eligible to accept and receive the grant, advance or payment, and if the terms of the grant, advance
or payment require a local contribution, the City hereby agrees to raise and make such local
contribution,
it is anticipated between the parties hereto that the Project to be built shall qualify
for a Federal grant in accordance with 40 Code of Federal Regulations, Part 35.2108. For purposes
of financing the Project, it is anticipated that the Project shall be eligible for Federal grants as
noted on Exhibit B. The applicant, Oakland County, in accordance with the requirements of said
35.2108, agrees to complete the Project regardless of whether or not grant funding is available for
the Project, in accordance with the requirements of said 35.2108.
12. The County shall have no obligation or responsibility for providing facilities except
as herein expressly provided with respect to the acquisition of the Project or as otherwise provided
by contract. The City shall have the authority and the responsibility to provide such other
facilities and shall have the right to expand the facilities of the Systems by constructing or
extending sewers or related facilities, connecting the same to the Systems, and otherwise improving
the Systems. It is expressly agreed, nevertheless, that no such connection shall be made to the
Systems and no improvements, enlargements or extensions thereof shall be made without first securing
a permit therefor from the County. Any such permit may be made conditional upon inspection and
approval of new construction by the County. It is further agreed that the Systems shall be used for
collection and conveyance of sanitary sewage only and that the City shall take all necessary action
to prevent entry into the Systems of storm waters (except as permitted in the intermunicipal
Agreement, the Evergreen Agreement or the Farmington Agreement) and also to prevent entry of sewage
or wastes of such a character as to be injurious to the Systems or to the public health and safety.
13. All powers, duties and functions vested by this contract in the County shall be
exercised and performed by the County Agency, for and on behalf of the County, unless otherwise
provided by law or in this contract.
14. In the event that any one or more of the provisions of this contract shall for any
reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality
or unenforceability shall not affect any other provisions hereof, but this contract shall be
construed as if such invalid, illegal or unenforceable provision has never been contained herein.
15. This contract shall become effective upon its .execution by. each party hereto. This
contract shall terminate forty (40) years from the date hereeof or on such earlier date as shall be
mutually agreed. This contract may be executed in several counterparts. The provisions of this
contract shall inure to the benefit of and be binding upon the successors and assigns of the parties
hereto.
IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed and
delivered by the undersigned, being duly authorized by the respective governing bodies of such
parties, all as of the date and year first above written.
CITY OF TROY COUNTY OF OAKLAND
By: By:
Mayor County Drain Commissioner
(County Agency)
City Clerk
3. CONFLICTING RESOLUTIONS. All resolutions and parts of resolutions insofar as they may
be in conflict herewith are hereby rescinded.
Mr. Chairperson, on behalf of the Planning and Building Committee, I move the adoption of
the foregoing resolution.
PLANNING AND BUILDING COMMITTEE
Larry P. Crake, Chairperson
Moved by Crake supported by Pappageorge the resolution be adopted.
By:
Commissioners Minutes Continued. June 28, 1990 219
AYES: Aaron, Bishop, Caddell, Chester, Crake, Gosling, Huntoon, Jensen, Johnson, R. Kuhn,
Law, McConnell, McCulloch, McPherson, Moffitt, Oaks, Olsen, Pappageorge, Pernick, Price, Rewold,
Skarritt, Wolf. (23)
NAYS; None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
Misc. 90156
By Planning and Building Committee
IN RE: Drain Commissioner - RESOLUTION TO APPROVE EVERGREEN AND FARMINGTON SEWAGE DISPOSAL SYSTEMS
POLLUTION CONTROL FACILITIES -- CITY OF FARMINGTON HILLS - SEGMENT Ii-ARM D, LOCAL RELIEF SEWERS AND
SSES REHABILITATION CONTRACT
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS the County of Oakland (the "County") has heretofore established and constructed
and acquired the Farmington Sewage Disposal System pursuant to the Farmington Sewage Disposal System
Agreement, dated November 1, 1957, as amended, to serve the Farmington Sewage Disposal District,
within such district lies the City of Farmington Hills (the "City); and
WHEREAS the County has heretofore established and constructed and acquirec the Evergreen
Sewage Disposal System pursuant to the Evergreen Sewage Disposal System Agreement, dated November
10, 1968, as amended; and
WHEREAS the State of Michigan Department of Natural Resources designated the areas and
districts served by the Evergreen Sewage Disposal System and the Farmington Sewage Disposal System
as a single plan of study area for the purposes of Step I Facilities Planning; and
WHEREAS the County established under and pursuant to Act No. 342, Public Acts of Michigan,
1939, as amended "Act. 342), a system of sewage disposal improvements and services to serve the
Evergreen Sewage Disposal District and the Farmington Sewage Disposal District, which system as so
established was designated as the "Evergreen and Farmington Sewage Disposal Systems and the Oakland
County Drain Commissioner was designated and appointed as the "county agency" for the Evergreen and
Farmington Sewage Disposal Systems with all the powers and duties with respect to said system as are
provided by law and especially by Act 342; and
WHEREAS it is now necessary to improve, enlarge and extend the Evergreen and Farmington
Sewage Disposal Systems by the acquisition and construction of the hereinafter described Evergreen
and Farmington .Sewage Disposal Systems Pollution Control Facilities -- City of Farmington Hills -
Segment II-Arm D, Local Relief Sewers and SSES Rehabilitation Contract; and
WHEREAS the terms of Act 342, the County and the City are authorized to enter into a
contract for the acquisition, construction and financing of the Evergreen and Farmington Sewage
Disposal Systems Pollution Control Facilities -- City of Farmington Hills - Segment II-Arm D, Local
Relief Sewers and SSES Rehabilitation Improvements consisting of sewage disposal and pollution
control facilities to serve the City and for the payment of the cost thereof by the City with
interest, and the County is then authorized to issue its bonds to provide the funds necessary
therefor; and
WHEREAS there has been submitted to this Board of Commissioners a proposed contract
between the County, by and through the County Drain Commissioner, County Agency, party of the first
part, and the City, party of the second part (the "Contract"), which Contract provides for the
acquisition, construction and financin of enlargements; additions and improvements to the Evergreen
and Farmington Sewage Disposal Systems as described in Exhibit A to the Contract (the "Project"),
and which Contract is hereinafter set forth in full; and
WHEREAS there have also bean submitted for approval and .adoption by this Board of
Commissioners, preliminary plans, specifications and estimates of the cost and period of usefulness
of the Project; and
WHEREAS the Contract provides for the issuance hereafter of bonds by the Connty to defray
part of the cost of the Project, said bonds to be secured by the contractual obligations of the City
to pay to the County amounts sufficient to pay the principal of and interest on the hereafter
authorized bonds and to pay such paying agent fees and other expenses AS may be incurred on account
of said bonds; and
WHEREAS this Board of Commissioners desires to proceed with the establishment of this
Project and the approval and execution of the Contract to acquire, construct and finance the Project
as provided in the Countract.
THEREFORE BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF OAKLAND COUNTY; MICHIGAN,. as
follows:
I. ESTABLISHMENT OF SYSTEM AND DESIGNATION OF COUNTY AGENCY. This Board of Commissioners
by majority vote of its members-elect does hereby authorize and direct that there be established;
and there is hereby established, under and pursuant to Act 342; sewage disposal facilities to be
known as the "Evergreen and Farmington Sewage Disposal Systems Pollution Control Facilities -- City
of Farmington Hills - Segment II-Arm D, Local Relief Sewers and SSES Rehabilitation Improvements,"
which shall consist of enlargements, additions and improvements to the Evergreen and Farmington
Sewage Disposal Systems, as specified and to be located as shown in Exhibit A to the Contract; that
the Project shall serve the City; that the Oakland County Drain Commissioner is hereby designated
and appointed as the "County Agency" for the Evergreen and Farmington Sewage Disposal Systems
220
Commissioners Minutes Continued, June 28, 1990
Pollution Control Facilities -- City of Farmington Hills - Segment II-Arm D, Local Relief Sewers and
SSES Rehabilitation improvements; that the County Agency shall have all the powers and duties with
. respect to the Evergreen and Farmington Sewage Disposal Systems Pollution Control Facilities -- City
of Farmington Hills - Segment II-Arm D, Local Relief Sewers and SSES Rehabilitation improvements as
are provided by law and especially by Act 342; and that all obligations incurred by the County
.gency with respect to the Evergreen and Farmington Sewage Disposal Systems Pollution Control
Facilities -- City of Farmington Hills - Segment II-Arm D, Local Relief Sewers and SSES
Rehabilitation improvements, unless otherwise authorized by this Board of Commissioners, shall be
payable from funds derived from the City as hereinafter provided.
2. PLANS AND SPECIFICATIONS - ESTIMATES OF PERIOD OF USEFULNESS AND COST. The
preliminary plans and specifications for the Project and the estimates of $1,453,530 as the cost
thereof and of 30 years and upwards as the period of usefulness thereof, as submitted to this Board
of Commissioners be and the same are hereby approved and adopted.
3. APPROVAL OF CONTRACT. The Evergreen and Farmington Sewage Disposal Systems
Pollution Control Facilities -- City of Farmington Hills - Segment II-Arm 0, Local Relief Sewers and
SSES Rehabilitation Contract dated as of April 1, 1990, between the County, by and through the
County Drain Commissioner, party of the first part, and the City, party of the Second part, which
Contract has been submitted to this Board of Commissioners, be and the same is hereby approved and
adopted, and the County Drain Commissioner is hereby authorized and directed to execute and deliver
the same for and on behalf of the County, in as many counterparts as may be deemed advisable, after
the Contract has been executed by the appropriate officials of the City. The Contract reads as
follows:
EVERGREEN AND FARMINGTON SEWAGE DISPOSAL SYSTEM
POLLUTION CONTROL FACILITIES
CITY OF FARMINGTON HILLS
SEGMENT II -- ARM D, LOCAL RELIEF SEWERS
AND SSES REHABILITATION
THIS CONTRACT, made and entered into as of the 1st day of April, 1990, by and between the
COUNTY OF OAKLAND, a county corporation in the State of Michigan (hereinafter sometimes referred to
as the "County"), by and through its Drain Commissioner, County Agency, party of the first part, and
the CITY OF FARMINGTON HILLS, a home rule city corporation in said county and state (hereinafter
sometimes referred to as the "City"), party of the second part.
WITNESSETH:
A WHEREAS the Oakland County Board of Supervisors by resolution, Misc. No. 3259, adopted
August 12, 1957, as amended by resolution, Misc. No. 3435, adopted October 13, 1958, did approve the
establishment of the Evergreen Sewage Disposal System (herein called the 'Evergreen System") to
serve the Evergreen Sewage Disposal District (herein called the "Evergreen District"), within which
Evergreen District are included areas in each of the municipal corporations hereinafter named; and
WHEREAS pursuant to the Evergreen Sewage Disposal System Agreement, dated November 10,
1958, as amended by amendatory agreements dated December 22, 1958, and February 9, 1959, all between
the County and the cities of Southfield, Birmingham, Bloomfield Hills, Lathrup Village and Troy, the
Village of westwood (now Village of Beverly Hills), and the Townships of Bloomfield and Pontiac (now
City of Auburn Hills), municipal corporations in the County, the County acting through its
Department of Public Works, did acquire the original Evergreen System and did finance such
acquisition by the issuance of bonds in anticipation of payments to be made by said municipal
corporations to the County in accordance with the provisions of said Agreement, as amended (herein
referred to as the 'Evergreen Agreement"); and
WHEREAS the Oakland County Board of Supervisors by resolution, Misc. No. 4115, adopted
March 6, 1963, did enlarge the Evergreen District •to include all of the Village of Franklin and all
of the Village of Bingham Farms within the area to be served by the Evergreen System; and
WHEREAS the Oakland County Board of Supervisors by resolution, Misc. No. 3270, adopted
August 12; 195/, as amended by resolution, Misc. No. 3339, adopted January 24, 1958, did approve the
establishment of the Farmington Sewage Disposal System (herein called the "Farmington System") to
serve the Farmington Sewage Disposal District (herein called the "Farmington District") within which
Farmington District are included areas in each of the municipal corporations hereinafter named; and
WHEREAS pursuant to the Farmington Sewage Disposal System Agreement, dated November 1,
1957, as amended by amendatory agreements dated December 22, 1958, and February 9, 1959, all between
the County and the Cities of Southfield and Keego Harbor and the Townships of West Bloomfield and
Farmington (now City of Farmington Hills), r municipal corporations in said County of Oakland, the
County acting through its Department of Public Works, did acquire the original Farmington System and
did finance such acquisition by the issuance of bonds in anticipation of payments to be made by said
municipal corporations to the County in accordance with the provisions of said agreement as amended
(herein referred to as the "Farmington Agreement"); and
WHEREAS by annexation of part of the former Township of Farmington the City of Farmington
has become a user of the Farmington System and has area included in the Farmington District; and
WHEREAS by contractual relationships with members of the Farmington System; the City of
Sylvan Lake and the City of Orchard Lake Village have become users of the Farmington System; and
WHEREAS the State of Michigan, Department of Natural Resources (herein the "MDNR") acting
on behalf of itself and the United States Environmental Protection Agency (herein the "USEPA")
designated the areas and districts served by the Evergreen System and the Farmington System as a
Commissioners Minutes Continued. June 28, 1990 221
single plan of study area for the purposes of Step I Facilities Planning and determined that there
is a need to obtain stneies, reports, plans and estimates for the abatement of pollution, control of
pollutants and polluting discharges, and the relief of both the EvergreenSystem and the Farmington
System and issued a Final Order of Abatement to the County and each municipal corporation using
either System or in either District; and
MHEREAS the County established under and pursuant to Act No, 342, Public Acts of Michigan,
1939, as amended, merged systems of sewage disposal improvements and, services to serve the areas and
the districts heretofore designated and described in Oakland County, Michigan, in Resolutions No.
3769, 3435 and 4115 as tae Evergreen District and in Resolutions No. 3270 and 3339 as the Farmington
District, which merged systems as so established was designated as the 'Evergreen and Farmington
Sewage Disposal Systems" (herein called the "Systems'') and the 'Evergreen and Farmington Sewage
Disposal Districts" (herein called the "Districts") and the Oakland County Drain Commissioner was
designated and appointed as the 'County Agency" for the Systems with all toe powers and duties with
respect to the Systems as are provided by law and especially by said Act 342; and
WHEREAS the County and all of the municipal corporations described in the foregoing
paragraphs as users of the Farmington System and the Evergreen System ane as having area included in
the Farmington District and in the Evergreen District (herein the "Municipalities") have, at the
request and approval of the MOOR and the USEPA, entered into an Intermunicipal Contract Concerning
Wastew ater Treatment and Pollution Control Projects for the systems dated as of September 30, 1989
(the "Intermunicipal Contract"), in which the County and the Municipalities agree to acquire
Facilities and to carry out Projects as described in said Intermunicioal Contract throughout the
Systems in various parts of the Districts all in compliance with the Final Order of Abatement and
Federal Grant requirements; and
WHEREAS under and subject to the terms of Act 342; the County is authorized, through the
County Agency; to acquire and construct the Project consisting of sewage disposal improvements and
pollution control facilities hereinafter described as part of the Systems; the County and the City
are authorized to enter into a contract; as hereinafter provided, for the acquisition and
construction of the Project and for financing all or part of the cost thereof by the issuance of
bonds by the County secured by the pledge of the full faith and credit of the City to pay such cost
with interest to the County in installments extending over a period not exceedinc forty (40) years;
arid the County is authorized to issue such bonds and, if authorized by majority vote of the
members-elect of its board of Commissioners, to pledge its full faith and credit for the payment of
such bonds and the interest thereon; and
WUREAS the City is in urgent need of such sewage disposal improvements and pollution
control facilities to comply with the MDNR Final Order of Abatement and to provide the means of
collecting and disposing of sanitary sewage of the City, in order to abate pollution of the waters
of the City and thus to promote the health and welfare of the residents thereof, which improvements
and facilities would likewise benefit the County and its residents; and the parties hereto have
concluded that such iwovements and facilities can be most economically and efficiently provided
and financed by the County through the exercise of the powers conferred by Act 342, and especially
sections Sa, Sb and 5c thereof; and
WHEREAS the County and the City desire to proceed with acquisition and construction of
facilities using a combination of Federal and State grant moneys and local funds as needed for the
proposed Project as shown cn Enshibit "A" hereto attached (the "Project"); for which Project
contractual arrangements for design, construction and financing are required only with the City
among all of the municipalities named herein above as participants in and users of the System; and
WHEREAS the County Agency has obtained preliminary plans for the Project and also an
estimate of tl,453,530 as the total cost of the Project and an estimate of thirty (30) Years and
upwards as the period of usefulness thereof;- all of which have been 'prepared by Hubbell; Roth &
Clark, Inc. (hereinafter sometimes referred to as the consulting enOneers) and are submitted
herewith for approval by the Board of Commissioners of the County and the City Council of the City•
and will be placed on file in the office of the County Agency, said estimates being set forth in
Exhibit "D" hereunto attached; and
WHEREAS in order to provide for the acquisition and construction of the Project by the
County and the financing of the cost thereof by the issuance of Couoty bonds; and for related
matters, it is necessary for the parties hereto to enter into this contract.
THEREFORE; ID CONSIHRATION OF THE PREMISES AND THE COVENANTS OF EACH OTHER, THE PARTIES
HERETO AGREE AS FOLLOWS:
1. The parties hereto do hereby approve and agree to the establishment; acquisition,
construction and financing of the Project, as herein provided; under and pursuant to Act 342 and as
provided in the Intermunicipal Contrast. The City, by was of compliance with Section 29, Article
VII, Michigan Constitution of 1503, consents and agrees to the establishment of the System and the
location of the Project within the corporate boundaries of the City and to the use by the County of
its streets; highways, alleys, lands, rights-of-way or other public places for the purpose and
facilities of the system and the Project and any improvements; enlargements or extensions thereof;
and the City further agrees that, in order to evidence and effectuate the foregoing agreement, and
consent; it will execute and deliver to the County such grants of easement; right-of-way; license;
permit or consent as may be requested by the County.
2. The Project shall consist of the facilities shown on Exhibit A which is hereunto
attached and which is hereby made a part hereof, and as are more particularly set forth in the
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preliminary plans which have been prepared and submitted by the consulting engineers, which plans
are on file with the County Agency and are hereby approved and adopted. The Project snail be
. acquired and constructed substantially in accordance with the said preliminary plans and in
accordance with final plans and specifications to be prepared and submitted by the consulting
engineers, but variations therefrom which do not materially change the location, capacity or overall
lesign of the Project, and which do not require an increase in tne total estimated cost of the
Project, may be permitted on the authority of the County Agency. Other variations or changes may be
made if approved by the County Agency and by resolution of the City Council of the City and if
provisions required by Paragraph 8 hereof are made for payment or financing of any resulting
increase in the total estimated cost. The estimate of cost of the Project and the estimate of
period of usefulness thereof as set forth in Exhibit B are likewise hereby approved and adopted.
3. The County Agency shall take or cause to be taken all actions required or necessary,
in accordance with Act 342, to procure the issuance and sale of bonds by the County, in one or more
series, in whatever aggregate principal amount is necessary to be so financed to defray that part of
the total cost to the County of the Project which is in excess of funds available from Federal
and/or State grants or other sources. Such bonds shall be issued in anticipation of, and be payable
primarily from, the payments to be made by the City to the County as provided in this contract, and
shall be secured secondarily, if so voted by the Board of Commissioners of the County, by the pledge
of the full faith and credit of the County, and the said bonds shall be payable in annual maturities
the last of which shall be not more than forty (40) years from the date thereof.
4. The County Agency shall obtain and accept an offer of grant by the USEPA/MDNR for the
Project; proceed to take construction bids for the Project and, subject to the sale and delivery of
said bonds, enter into construction contracts with the lowest responsible bidder or bidders, procure
from the contractors all necessary and proper bonds, cause the Project to be constructed within a
reasonable time, and do all other things required by this contract and the laws of the State of
Michigan. All certificates for required payments to contractors shall be approved by the consulting
engineers before presentation to the County Agency and the latter shall be entitled to rely on such
approval in making payment.
The County hereby agrees that it will secure and maintain; or cause to be secured and
maintained, during the period of construction adequate property damage and public liability
insurance covering all facilities to be constructed pursuant to this contract. All policies and
memoranda of insurance shall provide that the County and the City shall be insured parties
thereunder and shall contain a provision requiring that the City be notified at least ten days prior
to cancellation thereof. One copy of each policy and memorandum of insurance shall be filed with
the City.
5. It is understood and agreed by the parties hereto that the Systems are to serve the
City and not the individual property owners and users thereof, unless by special arrangement between
the County Agency and the City. It is the responsiblity of the City to require connection to and
use of the facilities of the Systems and to provide such additional facilities, as may be needed, so
that the City shall require connection to and use of the facilities and shall cause to be
constructed and maintained, directly or through the County, any such necessary additional
facilities. The County shall not be obligated hereunder to acquire or construct any facility other
than those designated in paragraph 2 hereof.
6. The City shall pay to the County the total cost of the Project, less such funds as may
become available from Federal and/or State grants or from other sources. The total cost for this
purpose shall include, in addition to the items of the nature set forth in Exhibit 8 (represented by
the principal amount of the bonds to be issued by the County plus such funds as may become available
from Federal and/or State grants or other sources); all interest payable by the County on said bonds
and all paying agent fees and other expenses and charges (including- the County Agency's
Administrative expenses) which are payable on account of said bonds (such fees, expenses and charges
being herein called "bond service charges"). Such payments shall be made to the County in annual or
semiannual installments which shall be due and payable at least thirty days prior to the day of the
month specified in the County bonds as the annual principal maturity date thereof or s'emiannual
interest date. Such installments shall be so paid in each year; if any principal and/or
non-capitalized interest on said bonds fails due during the twelve-month period beginning on such
principal maturity date in said year, and the amount of each installment so due and payable shall be
at least sufficient to pay all such principal and/or interest thus falling due and all bond service
charges then due and payable. . The County Agency shall, within thirty days after delivery of the
County bonds to the purchaser; furnish the city Treasurer with a complete schedule of the principal
and the interest maturities thereon, and the County Agency shall also; at least thirty days before
each payment is due to be made by the city; advise the City Treasurer of the amount payable to the
County on such date. If the City fails to make any payment to the County when due, the same shall
be subject to a penalty of l!'a' thereof for each month or fraction thereof that such amount remains
unpaid after due. Failure of the County Agency to furnish the schedule or give the notice as above
required shall not excuse the City from the obligation to make payment when due. Such payments
shall be made by the city when due whether or not the Project has then been completed or placed in
operation. In the event that additional County bonds shall be issued under the authority of this
contract; to defray a part of the cost of the Project, the foregoing obligations shall apply to such
part of the cost and to said additional bonds insofar as appropriate thereto.
7. The City may pay in advance any amount payable to the County pursuant to this contract
Commissioners Minutes Continued. June 28, 1990 223
and in that event shall Oe, credited therefor on future-due amounts as soy be acjreed by the parties
hereto, The City may also pay in advance any one or more installments or any part thereof (a) by
surrendering to the County any ol said County bonds of like principal amount or (b) by paying to the
County in cash the principal amount of any County bonds which are suoject to rhademption prior to
maturity , plus all interest taereon to the first date upon which such bonds may :De called for
redemption, and plus all applicable call premiums and bond service charges, and in such event the
County Agency shall call said bonds for redemption at the earliest poible date; provided, however,
that such advance cash payment and credit therefor shall be limited in amount at any given time to
the amount of bonds available for redemption by call within the telve-month period succeeding the
date of the advance cash paymants. The installments or ?arts thereof so prepaid shall he deemed to
be the installments or parts thereof fallirhg,, due in the same calendar year as the maturity dates of
the bonds surrendered or called for redemption and bonds so surrendered or redeemed shall be
cancelled.
8. In the event that it shall become necessary to increase the estimated cost of the
Project as hereinbefore stated, or if the actual cost of the Project shall exceed the estimated cost,
whether as the result of vari;ations or changes permitted or needed to be made in the approved plans
or otherwise, then (without execution of any further contract or amendment of this contract) the
City Council, by resolution adopted within fifteen days after the receipt of construction bids, may
direct that a portion of the Project not yet acquired or constructed and not under contract to
acquire or construct be deleted sufficient to reduce the total cost to an amount which shall not
exceed the total estimated cost of the Project; as hereinbefore stated, by more than 5';`:,:; provided
that such deletion shall not materially change or terminate the elicibility of the Project for
Federal and/or State p'ants, or change the general scope, overall design, and purpose of the
Project. In the adoption of such a resolution the City shall pay or procure the payment of the
increase or excess up to said of in cash or shall agree that County bonds in an increased or
additional amount shall (upon adoption of an authorizing resolution therefor by the Board of
Commissioners) be issued to defray such increased or excess cost; to the extent that funds therefor
are not available from other sources. Aere the effect of any increase in the estimated cost of the
Project or of any excess of actual cost over estimated cost would be to cause the total cost of the
Project to exceed by more than 5% its total estimated cost as hereinbefore stated; the County shall
nOt enter into any new or furtner contract or change order for acquisition or construction of the
Project or any part thereof or incur any new or further obligation for or pay any new or further
item of cost thereof until the City Council shall have adopted a resolution approving such increase
or excess and agreeing that ths. same (or such part thereof as is not available from other sources)
shall be pad or its payment procured by the City in cash or be defrayed by the issuance of
increased or additional County bolds in anticipation of increased or additional payments agreed to
be made by the City to the County in the manner hereinbefore provided; provided , further, that the
adoption of such resolution by the City Council shall not be required prior to or as a condition
precedent to the issuare:e of ad(Jtional bonds by the County, if the County has previously issued or
contracted to sell bonds to pay all or part of the cost of the Project and the issuance of the
additional bonds is:necessary (as determined by the County) to pay such increased; additional or
excess costs as are essential to completion of the Project acoordinc to the plans as last approved
prior to the time when the previous bonds were issueO or contracted to be sold.
9. In the event that the actual cost of the Project is less than the total estimated
cost, then any surplus available to the County from the sale of County !ponds shall; at the option of
the City Council, be used ,either to improve enlarge or extend the Systems or to apply upon future
payments due to the County, or to redeem bonds maturing or callable for payment within one year or
to purchase bonds of any maturity on the open market; provided that such surplus shall be used to
improve, enlarge or extend tie Systems only if authorized by the Boarc'.'of Commissioners. Any such
surplus may; for the purpose of improving, enlarging or extending the Systems; be supplemented by
cash payments to be made by the city or by the proceeds of additional County bonds, or such
improvements; enlargements or extensions may be financed entirely from such cash payments, where
authorized by the City Council. Where any such surplus is used to redeem or purchase bonds, the
same shall be cancelled, and the payments thereafter required to be made by the City to the County
shall be reduced so as to reflect the resulting saving of interest and the payment required to be
made by the City in the calendar year of the stated maturity of said bonds shall be reduced by the
principal amount thereof.
10. Should the City fail for any reason to pay the County at the time specified; the
amounts herein required to be paid; the City does hereby authorize the State Treasurer or other
official charged with the disbursement of unrestricted state funds returnable to the City pursuant
to the Michigan constitution to withhold sufficient funds to make up any default or deficiency in
funds. If the full faith and credit of the County are pledged for the prompt payment of the
principal of and interest on the bonds to be issued by the County and if the County is required to
advance any money by reason of such pledge on account of the delinquency of the City; the County
Treasurer is hereby authorized to notify the State Treasurer to deduct the amount of money so
advanced by the County from any unrestricted moneys in the State Treasurer's possession belonging to
the City and to pay such amount to the County,
The foregoing shall not operate to limit the County's right to pursue any other legal
remedies for the reimbursement of moneys advanced on account of the default of the City.
11. The City pursuant to the authorization of Section 5a of Act No. 342; does hereby
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Commissioners Minutes Continued. June 28, 1990
pledge its full faith and credit for the prompt and timely payment of its obligations expressed in
this contract and shall each year levy a tax in an amount which taking into consideration estimated
delinquencies in tax collections, will be sufficient to pay its obligations under this contract
becoming due before the time of the following year's tax collections; provided, however, that if at . . . . .
the time of making its annual tax levy, the City shall have on hand cash or other funds which have
een set aside and pledged or are budgeted or otherwise available for the payment of such
contractual obligations falling due prior to the time of the next tax collection, then the annual
tax levy may be reduced by such amount. Taxes levied by the City shall be within applicable
limitations as to rate or amount. The City Council each year, at least 90 days prior to the final
date provided by law for the making of the annual tax levy, shall submit to the County Agency a
written statement setting forth the amount of its obligations to the County which become due and
payable under this contract prior to the time of the next following year's tax collections, the
amount of the funds which the City has or will have on hand or to its credit in the hands of the
County which have been or will be set aside and pledged for payment of said obligations to the
County, and the amount of the City taxes next proposed to be levied for the purpose of raising money
to meet such obligations. The County Agency shall promptly review such statement and, if he finds
that the proposed tax levy is insufficient, he shall so notify the City Council and the City hereby
covenants and agrees that it will thereupon increase its levy to such extent as may be required by
the County Agency.
12. No change in the jurisdiction over any territory in the city shall impair in any
manner the obligations of this contract or affect the obligations of the City hereunder. In the
event that all or any part of the territory of the City is incorporated as a new city or village or
is annexed to or becomes a part of the territory of another municipality, the municipality into
which such territory is incorporated or to which such territory is annexed shall assume the proper
proportionate share of the contractual obligations {including the pledge of full faith and credit)
of the City, which proper proportionate share shall be fixed and determined by the County Agency and
shall be binding upon all parties concerned unless; within sixty (60) days after such incorporation
or annexation becomes effective; the governing body of the municipality into which such territory is
incorporated or to which such territory is annexed and the City Council of the City, by mutual
agreement . and with the written approval of the County Agency, shall fix and determine such proper
proportionate share, The County Agency, prior to making such determination, shall receive a written
recommendation as to the proper proportionate share from a committee composed of one representative
designated by the City Council of the City, one designated by the governing body of the new
municipality or the municipality annexing such territory and one independent registered engineer
appointed by the County Agency. Each governmental unit shall appoint its representative within
fifteen (15) days after being notified to do so by the County Agency and within a like time the
County Agency shall appoint the engineer third member. If any such representative (other than the
appointee of the County Agency) is not appointed within the time above provided then the County
Agency may proceed without said recommendation. If the committee shall not make the recommendation
within forty-five (45) days after its appointment or within any extension thereof by the County
Agency; then the County Agency may proceed without such recommendation. . . 13. This contract is contingent upon the County issuing its negotiable bonds as herein
provided, to defray such part of the total estimated cost of the Project as is necessary to be
financed, which bonds shall be issued under the authorization provided in Section 5a, 5b and Sc of
said Act 342. Interest on the bonds may be capitalized and paid from the bond proceeds for a period
not exceeding the estimated construction period and one year thereafter. In the event that the
bonds are not issued within three years from the date of this contract; then unless extended by
mutual agreement it shall become null and void, except that the City shall pay all engineering,
legal and other costs and expenses theretofore incurred-hereunder.and• shall be entitled to all
plans, specifications and other engineering data and materials.
14. Upon completion of the Project the County and the City hereby agree that the operation
and maintenance of all of the facilities of the Systems shall be carried on and continued in the
same fashion and manner as integral parts of the Systems as provided in paragraph 5 hereof and as
are now in existence and in effect pursuant to the Evergreen Agreement; the Farmington Agreement and
the Intermunicipal Agreement with costs thereof billed; collected and paid as at present.
If a grant; advance or payment becomes available from the State or Federal governments or
any other source; the City hereby agrees to adopt such resolutions or ordinances as may be required
by State or Federal laws, regulations or orders. to make the county and the Project and Systems
eligible to accept and receive the grant, advance or payment, and if the terms of the grant; advance
or payment require a local contribution, the City hereby agrees to raise and make such local
contribution.
It is anticipated between the parties hereto that the Project to be built shall qualify
for a Federal grant in accordance with 40 Code of Federal Regulations; Part 35.2108. For purposes
of financing the Project, it is anticipated that the Project shall he eligible for Federal grants as
noted op Exhibit B. The applicant, Oakland County; in accordance with the requirements of said
35.2108; agrees to complete the Project regardless of whether or not grant funding is available for
the Project, in accordance with the requirements of said 35.2108.
15. The county shall have no obligation or responsibility for providing facilities except
as herein expressly provided with respect to the acquisition of the Project or as otherwise provided
by contract. The City shall have the authority and the responsibility to provide such other
Commissioners Minutes Continued. June 28, 1990 225
facilities and shall have the right to expand the facilities of the Systems by constructing or
extending sewers -or related facilities, connecting the same to the Systems, and otherwise improving
the Systems. It is expressly agreed; nevertneless, that no such connection shall be made to the
Systems and no improvements, enlargements or extensions thereof shall be made without first securing
a permit therefor. from the County. Any such permit may be made conditional upon inspection and
approval of new construction by the County. It is further agreed that the Systems shall be used for
collection and conveyance of sanitary •sewage only and that the City shall take all necessary action
to prevent entry into the Systems of storm waters (except as permitted in the Intermunicipal
Agreement; the Evergreen Agreement or the Farmington Agreement) and also to prevent entry of sewage
or wastes of such a character as to be injurious to the Systemsor to the public health and safety.
16. All powers, duties and functions vested by this contract in the County shall be
exercised and performed by the County Agency, for and on behalf of the County, unless otherwise
provided by law or in this contract. The County Agency shall prepare, with the aid of its
consultants; such covenants, representations and warranties and have adopted by officials of the
County and of the City such procedures for construction, accounting, payment and operating as are
necessary to comply with the requirements of state and federal law in order to create and maintain
the obligations of the City and of the County under this contract and with respect to the bonds as
valid and binding obligations and in order to assure that the interest on the bonds is excludable
from gross income for federal income tax purposes. Such covenants; representations and warranties
and such procedures shall be evidenced by and set forth in certificates or resolutions prepared for
the County Agency which the City and the County all hereby agree to approve; execute and adopt at or
prior to issuance and delivery of any bonds.
17. The parties hereto recognize that the holders from time to time of the bonds to be
issued by the County under the provisions of Act 342, and secured by the full faith and credit
pledge of the City to the making of the payments as set forth in this contract, will have
contractual rights in this contract, and it is therefore covenanted and agreed that so long as any
of said bonds shall remain outstanding and unpaid, the provisions of this contract shall not be
subject to any alteration or revision which would in any manner adversely affect either the security
of the bonds or the prompt payment of principal or interest thereon. The right to make changes in
this contract, by amendment, supplemental contract or otherwise, is nevertheless reserved insofar as
the same do not have such adverse effect. The parties hereto further covenant and agree that they
will each comply with their respective duties and obligations under the terms of this contract
promptly, at the times and in the manner herein set forth; and will not suffer to be done any act
which would in any way impair the contract of said bonds; the security therefor; or the prompt
payment of principal and interest thereon. It is hereby declared that the terms of this contract
and of any amendatory or supplemental contract and any contract entered into pursuant hereto,
insofar as they pertain to said bonds or to the payment of the security thereof; shall be deemed to
be for the benefit of the holders of said bonds.
18. In the event that any one or more of the provisions of this contract shall for any
reason be held to be invalid; illegal or unenforceable in any respect; such invalidity; illegality
or unenforceability shall not affect any other provisions hereof; but this contract shall be
construed as if such invalid, illegal or unenforceable provision has never been contained herein.
19. This contract shall become effective upon its execution by each party hereto and the
expiration of 45 days after the date of publication of the notice required by Section 5b of Act 342;
provided, however, that if within the 45-day period, a proper petition is filed with the City Clerk
of the City in accordance with the provisions of said Section 5b of Act 342; then this Contract
shall not become effective until approved by the vote of a majority of the electors of the City
qualified to vote and voting thereon at a general or special election. This contract shall
terminate forty (40) years from the date hereof or on such earlier date as shall be mutually agreed;
provided, however, that it shall not be terminated at any time prior to the payment in full of the
principal of and interest on the -amnty bonds together with all bond service charges pertaining to
said bonds. This contract may be executed in several counterparts. The provisions of this contract
shall inure to the benefit of and be binding upon the successors and assigns of the parties hereto.
IN WITNESS1.41ERECF, the parties hereto have caused this contract to be executed and delivered by
the undersigned, being duly authorized by the respective governing bodies of such. parties; all as of
the day and year first above written.
CITY OF FARMINGTON HILLS COUNTY OF OAKLAND
By: By:
Mayor County Drain Commissioner • (County Agency)
By:
City Clerk
Mr. Chairperson, on behalf Of the Planning and Building Committee; I move adoption of the
foregoing resolution.
PLANNING AND BUILDING COMMITTEE
Larry P. Crake, Chairperson
Moved by Crake supported by Jensen the resolution be adopted.
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Commissioners Minutes Continued. June 28, 1990
AYES: Bishop, Caddell, Chester, Crake, Gosling, Huntoon, Jensen, Johnson, R. Kuhn, Law,
McConnell, McCulloch, McPherson, Moffitt, Oaks, Olsen, Pappageorge, Pernick, Price, Rewold,
.Skarritt, Wolf, Aaron. (23)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
Misc. 90156
By Planning and Building Committee
IN RE: Drain Commissioner - RESOLUTION TO APPROVE EVERGREEN AND FARMINGTON SEWAGE DISPOSAL SYSTEMS
POLLUTION CONTROL FACILITIES - SEGMENT II - STAGE 3 CONTRACT
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS by Resolution No. 7624, adopted September 2, 1976, the County established by
consolidation and merger under and pursuant to Act No. 342, Public Acts of Michigan, 1939, as
amended, a system of sewage disposal improvements and services to serve the areas and the districts
heretofore designated and described in Oakland County, Michigan, in Resolutions No. 3269, 3435 and
4115 as the Evergreen District and in Resolutions No. 3270 and 3339 as the Farmington District,
which consolidated and merged system as so established was designated as the "Evergreen and
Farmington Sewage Disposal Systems" (the "Systems") and the Oakland County Drain Commissioner was
designated and appointed as the "County Agency" for the Systems for the acquisition, construction
and financing of new facilities with all the powers and duties with respect to the acquisition,
construction and financing of facilities for the Systems as are provided by law and especially by
said Act 342; and
WHEREAS the County is the lead applicant and has made and will make applications for
Federal and State grants for the planning, design, contracting and construction of the additional
facilities to enlarge, extend and relieve the Systems as shown on Exhibits A and B set forth in the
Contract hereto attached and incorporated herein, and will coordinate and supervise the compliance
with and performance of conditions and terms of said grants; and
;WHEREAS in order to obtain grants, and in order to enlarge, extend and relieve the Systems
and to provide for the Municipalities named in the Contract hereto attached additional pollution
control facilities and capacities for the transportation and treatment of sanitary sewage emanating
from the service areas of the Systems in the jurisdiction of said Municipalities and to abate and
control pollution and polluting discharges and to comply with requirements imposed by the United
States Environmental Protection Administration and the Michigan Department of Natural Resources, it
is necessary that the County and said Municipalities enter into a Contract for construction of and
service by the existing facilities and by additional pollution control facilities herein described,
particularly by reference to the Exhibits to the contract hereto attached by this reference
incorporated herein, which additional pollution control facilities as described on Exhibits A and B
are called the "Project" in said Contract; and
WHEREAS preliminary plans for the Project and also estimates of the cost of such Project
and the period of usefulness thereof have been prepared by Hubbell, Roth & Clark, Inc. (hereinafter
sometimes referred to as the "Consulting Engineers") and are herewith submitted for approval by the
Board of Commissioners of the County, said estimates being set forth in Exhibit B to the form of
Contract attached hereto; and
WHEREAS there has been submitted to this Board of Commissioners a proposed Contract
between the County, by and through the County Drain Commissioner, County Agency, party of the first
part, and the Municipalities named in said Contract, parties of the second part, which Contract
provides for the acquisition, construction and financing of the Project -pursuant-to. Act 342, which
Contract is hereinafter set forth in full.
THEREFORE BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF OAKLAND COUNTY, MICHIGAN, as
follows:
1. ESTIMATES OF PERIOD OF USEFULNESS AND COST. The estimate of $12,825,000 as the cost
of the Project described on Exhibits A and B to the Contract and the estimate of 40 years and
upwards and the period of usefulness thereof, as submitted to this Board of Commissioners; be and .
the same are approved and adopted.
2. APPROVAL OF CONTRACT. The Evergreen and Farmington Sewage Disposal System Pollution
Control Facilities -- Segment II -- Stage 3 Contract, dated as of September 30, 1989, between the
County, by and through the County Drain Commissioner, party of the first part, and the
Municipalities named in said Contract, parties of the second part, which Contract has been submitted
to this Board of Commissioners, be and the same is approved and adopted, and the County Drain
Commissioner is authorized and directed to execute and deliver the same for and on behalf of the
County, in as many counterparts as may be deeMed advisable, after the Contract has been executed by
the appropriate officials of the Municipalities. Said Contract reads as follows:
EVERGREEN AND FARMINGTON SEWAGE DISPOSAL SYSTEMS
POLLUTION CONTROL FACILITIES --
SEGMENT II -- STAGE 3 CONTRACT
THIS AGREEMENT, made as of this 30th day of September, 1989, by and between the COUNTY OF
OAKLAND, a Michigan county corporation (hereinafter sometimes referred to as the "County"), by and
through its County Drain Commissioners (hereinafter referred to as the "County Agency"), party of
Commissioners Minutes Continued. June 28, 1993 227
the first part, and the TOWNSHIP OF WEST BLOOMFIELD, the CITY OF SOUTHFIELD, the CITY OF FARMINGTON
HILLS and the CITY OF ORCHARD LAKE VILLAGE, municipal corporations in the County of Oakland
(hereinafter sometimes collectively referred to as the 'Municipalities" and individually as a
"Municipality"), parties of the second part:
• WITNESSETH:
WHEREAS the Oakland County Board of Supervisors by Resolution, Misc. No. 3269, adopted on
August 12, 1957, as amended by Resolution, Misc. No. 3435, adopted on October 13, 1958, did approve
of establishment of the Evergreen Sewage Disposal System to serve the Evergreen Sewage Disposal
District; and
WHEREAS pursuant to the Evergreen Sewage Disposal System Agreement, dated November 10,
1958, as amended by amendatory agreements dated December 22, 1958 and February 9, 1959, all between
the County of Oakland and. the Cities of Birmingham, Bloomfield Hills, Lathrup Village, Troy and
Southfield, the Village of Westwood (now the Village of Beverly hills) and the Townships of
Bloomfield and Pontiac (now the City of Auburn Hills), municipal corporations in the County, the
County, acting through its Department of Public Works, did acquire the original Evergreen System and
did finance such acquisition by the issuance of bonds in anticipation of payments to be made by said
municipal corporations to the County in accordance with the provisions of said agreement, as amended
(herein referred to as the 'Evergreen Adreement"); and
WHEREAS the Oakland County Board of Supervisors by resolution, Misc. No. 3270, adopted
August 12, 1957, as amended by resolution, Misc. No. 3339, adopted January 24, 1958, did approve the
establishment of the Farmington Sewage Disposal System to serve the Farmington Sewage Disposal
District; and
WHEREAS pursuant to the Farmington Sewage Disposal System Agreement, dated November 1,
1957 as amended by amendatory agreements dated December 22, 1958, and February 9, 1959, all between
the County and the Cities of Southfield and Keego Harbor and the Townships of West Bloomfield and
Farmington (now City of Farmingtof Hills), municipal corporations in the County, the County acting
through its Department of Public Works, did acquire the original Farmington Sewage Disposal System
and did finance such acquisition by the issuance of bonds in anticipation of 'payments to be made by
said municipal corporations to the County in accordance with the provisions of said Agreement, as
amended (herein referred to as the 'Farmington Agreement"); and
WHEREAS by annexation of part of the former Township of Farmington the City of Farmington
has become a user of the Farmington Sewage Disposal System and has area included in the Farmington
Sewage Disposal District; and
WHEREAS by contractual relationships with members of the Farmington Sewage Disposal
System, the City of Sylvan Lake and toe city of Orchard Lake Village have become users of the
Farmington Sewage Disposal System; and
WHEREAS the State of Michigan Department of Natural Resources designated the areas and
districts served by the Oakland County Evergreen and Farmington Sewage Disposal Systems as a single
plan of study area for the purposes of Step i Facilities Planning and determined that there is a
need to obtain studies, reports, plans and estimates for the abatement of pollution, control of
pollutants and polluting discharges, and the relief of both the Evergreen and Farmington Sewage
Disposal Systems; and
WHEREAS the County established under and pursuant to Act no. 342, Public Acts of 1939, as
amended, a system of sewage disposal improvements and services to serve the areas and the districts
heretofore designated and described in Oakland County, Michigan, in Resolutions No. 3269, 3435 and
4115 as the Evergreen Sewage Disposal District and in Resolutions No. 3270 and 3339 as the
Farmington Sewage Disposal District, wnich system as so established was designated as the "Evergreen
and Farmington Sewage Disposal Systems" (hereinafter referred to as the "Systems') and the Oakland
County Drain Commissioner was designated and appointed as the "County Agency" for the Systems as
provided by law and especially by said Act 342; and
WHEREAS under and subject to the terms of Act 342, the County is authorized, through the
County Agency, to acquire and construct the sewage disposal improvements and pollution control
facilities hereinafter described as part of the Systems, the County and the Municipalities are
authorized to enter into a contract, as hereinafter provided, for the acquisition and construction
of the improvements and facilities by the County and for financing all or part of the cost thereof
by the issuance of bonds by the County secured by the pledge of the full faith and credit of the
Municipalities to pay such cost with interest to the County in installments extending over a period
not exceeding forty (40) years, and tne County is authorized to issue such bonds and, if authorized
by majority vote of the memners-elect of its Board of Commissioners, to pledge its full faith and
credit for the payment of such bonds dnd the interest thereon; and
WHEREAS there is an urgent need for such sewage disposal improvements and pollution
control facilities to provide the means of collecting and disposing of sanitary sewage originating
in the Municipalities, in order to abate pollution of the waters of the Municipalities and thus to
promote the health and welfare of the residents thereof, which improvements and facilities would
likewise benefit the County and its residents, and the parties hereto have concluded that such
improvements and facilities can be most economically and efficiently provided and financed by the
County through the exercise of the powers conferred by Act 342, and especially Sections 5a, 5b and
Sc thereof; and
WHEREAS the County and the Municipalities desire to proceed with the acquisition and
construction of improvements and facilities using a combination of federal and state grant moneys
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and local funds as needed for the proposed project as shown on Exhibit A hereto attached (the
'Project"), for which Project contractual arrangements for design, construction and financing are
required only with the Municipalities among all of the parties named hereinabove as participants in
and users of the Systems; and
WHEREAS the County Agency has obtained preliminary plans for the Project and also an esti-
Mate of $12,825,000 as the total cost of the Project and an estimate of forty (40) years and upwards
as the period of usefulness thereof, all of which have been prepared by Hubbell, Roth & Clark, inc.
(hereinafter sometimes referred to as the "Consulting Engineers") submitted herewith for approval by
the Board of Commissioners of the County and the governing bodies of the Municipalities and will be
placed on file in the office of the County Agency, said estimates being set forth in Exhibit '6
hereunto attached; and
WHEREAS in order to provide for the acquisition and construction of the Project by the
County and the financing of the cost thereof hy the issuance of County bonds, and for other related
matters, it is necessary for the parties hereto to enter into this Contract.
THEREFORE IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES HERETO, as follows:
1. The parties hereto hereby approve and agree to the establishment, acquisition,
construction and financing of the Project as herein provided, under and pursuant to Act 342. Each
Municipality, by way of compliance with Section 29, Article VII of the Michigan Constitution of
1963, consents and agrees to the establishment and location of the Project within its corporate
boundaries and to the use by the County of Its streets, highways, alleys, lands, rights-of-way or
other public places for the purpose and facilities of the Project and any improvements, enlargements
and extensions tnereof, and each Municipality further agrees that, in order to evidence and
effectuate the foregoing agreement and consent, it will execute and deliver to the County such
grants of easement, right-of-way, license, permit or consent as may be requested by the County.
2. The Project shall consist of enlargements, additions and improvements to the existing
pumping station facilities and sanitary sewers and related facilities as described and shown on
Exhibsit A and Exhibit B which are attached hereto and which are hereby made a part hereof, and as
are more particularly set forth in the preliminary plans which have been prepared and submitted by
the Consulting Engineers which plans are on file with the County Agency and are hereby approved and
adopted. ) The Project shall be acquired and constructed substantially in accordance with the
preliminary plans and in accordance with final plans and specifications to be prepared and submitted
by the Consulting Engineers, but variations therefrom which do not materially change the location,
capacity or overall design of the Project; and which do not require an increase in the total
6stimated cost of the Project, may be permitted on the authority of the County Agency. Other
variations or changes may be made if approved by the County Agency and by resolution of the
governing body of each Municipality and if provisions required by paragraph (8) hereof are made for
payment or financing of any resulting increase in the total estimted cost. The estimate of cost of
the Project and the estimate of period of usefulness thereof as set forth in Exhibit 3 are likewise
hereby approved and adopted.
3. The County Agency shall take or cause to be taken all actions required or necessary,
in accordance with Act 342, to procure the issuance and sale of bonds by the County, in one or more
series, in whatever aggregate principal amount is necessary to be so financed to defray that part of
the total cost of the Project which is in excess of funds available from federal and/or state grants
or other sources, including cash contributions from the City of Orchard Lake Village and any other
Municipality. Such bonds shall be issued in anticipation of; and be payable primarily from, the
payments to be made by the Municipalities to the County in the percentages as provided in Exhibit C
which is attached hereto and which is hereby made a part hereof, and shall be secured secondarily,
if so voted by the Board of Commissioners of the County, by the pledge of the full faith and credit
of the County, and the said bonds shall be payable in annual maturities the last of which shall be
not more than forty years from the date thereof; provided, however, that the percentages provided in
Exhibit C shall be adjusted to reflect cash contributions to be made by the City of Orchard Lake
Village and any other Municipality.
4. The County Agency shall obtain and accept an offer of grant by the EPA/DNR for the
Project, proceed to take construction bids for the Project and, subject to the sale and delivery of
said bonds, enter into construction contracts with the lowest responsive and responsible bidder or
bidders, procure from the contractors all necessary and proper bonds and insurance, cause the
Project to be constructed within a reasonable time, and do all other things required by this
Contract and the laws of the State and the United States of America. All certificates for required
payments to contractors shall be approved by the Consulting Engineers before presentation to the
- County Agency and the latter shall be entitled to rely on such approval in making payment.
The County hereby agrees that it will secure and maintain, or cause to be secured and
maintained, during the period of construction adequate property damage and public liability
insurance covering all facilities to be ccnS.tructed pursuant to this Contract. All policies and
memorandums of insurance shall provide that the County and the Municipalities shall be insured
parties thereunder and shall contain a provision requiring that each Municipality be notified at
least ten days prior to cancellation thereof. One Copy of each policy and memorandum of insurance
shall be filed with each Municipality.
5. It is understood and agreed by the parties hereto that the Project is to serve the
Municipalities and not the individual property owners and users thereof, unless by special
arrangement between the County Agency and the governing body of the Municipality wherein such
Commissioners Minutes Continued. June 28, 1990 229
property is located. The responsibility of requiring connection to and use of the Project and/or
providing such additional facil i ties as may he needed shall be that of the Municipality wherein such
property is located and such Municipaliti shall cause to he constructed and maintained, directly or
through the County, any such necessary additional facilities. The County shall not be obligated to
acquire or construct any facilities otner than those designated in paragraph 2 hereof.
6. The City of Orchard Lade Village and any other Municipality which elects to pay its
share of the cost of the Project through a cash contribution shall pay in full to the County their
respective shares of the total cost of the Project (less such funds as may become available from
federal and/or State grants or from other sources) not later than the date of the issuance of County
bonds issued pursuant to this Contract- All other Municipalities (the "Borrowing Municipalities")
shall pay to the County their respective shares of the total cost of the Project (less such funds as
may become available from federal and/or State grants or from other sources), which total cost for
this purpose shall include, in addtion to the items of the nature set forth in Exhibit B
(represented by the principal amount of the bonds to be issued by the County plus such funds as may
become available from federal ahd/r State grants or other sources), all interest payable by the
County cn said bonds and all paying agent fees and other expenses and charges (including the County
Agency's administrative expenses) which are payable on account of said bonds (such fees, expenses
and charges being herein celled "bond service charges"), The cost of the Project is hereby
allocated to the Municipalities in accordance with the percentages set forth in Exhibit C. The
percentage shares of the Borrowing Municipalities with respect to payments of principal of and
interest and bond service charges on the bonds shall be adjusted to reflect the cash contributions
on any Municipality, Such payments of each Borrov:im Municipality shall he made to the County in
annual installments which shall he due and payable at least thirty days prior to the day of the
month specified in the County bozois as the annual principal maturity date thereof. Such an annual
installment of each Borrowing Municipality shall be so paid in each year if any principal and/or
non-capitalized interest on saie bonds falls due during the twelve-month period beginning on such
principal maturity date ir said year, and the amount of each installment of each Borrowing
Municipality so due and payable shall be at least sufficient, when added to the amount of the
installments of the otner Borrowing Municipalities so due and payable, to pay all such principal
and/or interest thus falling due and all bond service charges then due and payable. The County
Agency shall, within thirty days after delivery of the County bonds to the purchaser, furnish the
Treasurer of each Borrowing Municipality with a complete schedule of the principal and interest
maturities thereon, and the County Agency shall also, at least thirty days before each payment is
due to be made by each Borrowing Municipality, advise the Treasurer of each Borrowing Municipality
of the amount payable to the County on such date. If a Borrowing Municipality fails to make any
payment to the County when due, the same shall be subject to a penalty of 1% thereof for each month
or fraction thereof that such amount remains unpaid after due. Failure of the County Agency to
furnish the schedule or give the notice as above required shall not excuse a Borrowing Municipality
from the obliption to make paymLnt when due. Such payments shall be made by each Borrowing Munici-
pality 'Alan due whether or not the Project has then been completed or placed in operation. In the
event that additional County bonds shall be issued under the authority of this Contract to defray a
part of the cost of the System, the foregoing obligations shall apply to such part of the cost and
to said additional bonds insokr as appropriate thereto.
7. A Borrowing Municipality may pay in advance any one or more of its installments or any
part thereof payable to the County pursuant to this Contract (a) by surrendering to the County any
of said County bonds of like principal amount maturing in the same calendar year, or (b) by paying
to the County in cash the principal amount of any County bonds which are subject to redemption prior
to maturity, plus all interest thereon - to the first date upon which such bonds may be called for
redemption; and plus all applicable call premiums and bond service -charges, and in such event the
County Agency shall call said bonds for redemption at the earliest possible date; provided, however,
that such advance payment and credit therefor shall be limited in amount at any given time to the
amoOnt of bonds available for purchase or redemption by call within the twelve-month period
succeeding the date of the advance payment. The installments or parts thereof so prepaid shall be
deemed to be the installments or parts thereof falling due in the same calendar year as the maturity
dates of the bonds surrendered or called for redemption and bonds so surrendered or redeemed shall
be cancelled.
8. In the event teat it shall become necessary to increase the estimated cost of the
Project as hereinbefore stated, or if the actual cost of the Project shall exceed the estimated
cost; whether as the result of variations or changes permitted to be made in the approved plans or
otherwise, then (without execution of any further contract or amendment of this Contract) the
governing bodies of the Municipalities may; by resolution adopted within fifteen days after the
receipt of construction bids, direct that a portion of the Project be deleted sufficient to reduce
the total cost to an amount which shall not exceed the total estimated cost as hereinbefore stated
by more than Et, provided that such deletion shall not materially change or terminate the
eligibility of the Project for federal and/or state grants; or materially change the general scope;
overall design and purpose of the Project. In the absence of the adoption of such resolution the
Municipalities shall pay or procure the payment of the increase or excess in cash; or County bonds
in an increased or additional amount shall (upon adoption of an authorizing resolution therefor by
the Board of Commissioners of the County) be issued to defray such increased or excess cost; to the
extent that funds therefor are not available from other sources; provided; however; that no such
increase or excess shall be approved and no such increased or additional County bonds shall be
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Commissioners Minutes Continued. June 28, 1990
authorized to be issued, nor shall the County enter into any contract for acquisiton or construction
of the Project or any part thereof or incur any obligation for or pay any item of cost therefor,
where the effect thereof would be to cause the total cost of the Project to exceed by more than
its total estimated cost as hereinbefore stated, unless the governing body of each Municipality
shall have previously adopted a resolution approving such increase or excess and agreeing that the
.ar,9e (or such part thereof as is not available from other sources) shall be paid or its payment
procured by the Municipalities in cash or be defrayed by the issuance of increased or additional
County bonds in anticipation of increased or additional payments agreed to be made by the
Municipalities to the County in the manner hereinbefore provided; provided, further, that the
adoption of such resolution by the governing body of each Municipality shall not be required prior
to or as a condition precedent to the issuance of additional bonds by the County if the County has
previously issued or contracted to sell bonds to pay all or part of the cost of the Project and the
issuance of the additional bonds is necessary (as determined by the County) to pay such increased,
additional or excess costs as are essential to completion of the Project according to the plans as
last approved prior to the time when the previous bonds were issued or contracted to be sold.
9, in the event that the actual cost of the Project is less than the total estimated
cost, then any surplus available to the County from the sale of County bonds, at the option of the
governing bodies of the Municipalities shall be used to approve, enlarge or extend the Systems, to
apply upon future payments due to the County, to redeem bonds or to purchase bonds on the open
market, provided that such surplus shall be used to improve, enlarge or extend the Systems only if
authorized by the Board of Commissioners of the County. Any such surplus may, for the purpose of
improving, enlarging or extending the Systems, be supplemented by cash payments to be made by the
Municipalities, or such improvements, enlargements or extensions may he financed entirely from such
cash payments, where authorized by the governing bodies of the Municipalities. Where any such
surplus is used to redeem or purchase bonds, the same shall be cancelled, and the payments
thereafter required to be made by the Municipalities to the County shall he reduced so as to reflect
the resulting saving of interest and the payment required to be made in the calendar year of the
stated maturity of said bonds shall be reduced by the principal amount thereof.
10. Should a Municipality fail for any reason to pay the County at the times specified,
the amounts herein required to be paid, such Municipality does hereby authorize the State Treasurer
or other official charged with the disbursement of unrestricted state funds returnable to such
Municipality pursuant to the Michigan Constitution to withhold sufficient funds to make up any
default or deficiency in funds. If the full faith and credit of the County is pledged for the
prompt payment of the principal of and interest on the bones to be issued by the County and if the
County is required to advance any money by reason of such pledge on account of the delinquency of
such Municipality, the County Treasurer is hereby authorized to notify the State Treasurer to deduct
the amount of money so advanced by the County from any unrestricted moneys in the State Treasurer's
possession belonging to such Municipality and to pay such amount to the County.
The foregoing shall not operate to the limit the County's right to pursue any other legal
remedies for the reimbursement of moneys advanced on account of the default of such Municipality.
11. Each Municipality, pursuant to the authorization of Section 5a. of Act No. 342, hereby
pledges its full faith and credit for the prompt and timely payment of its obligations expressed in
this Contract and each year shall levy a tax in an amount which; taking into consideration estimated
delinquencies in tax collections, will be sufficient to pay its obligations under this Contract
becoming due before the time of the following year's tax collections; provided; however, that if at
the time of making its annual tax levy, a Municipality shall have on hand in cash other funds
(including but not limited to funds from special assessments, user charges or connection fees) which
have been set aside and pledged or are otherwise available for the payment of such contractual
obligations falling due prior to the time of the next tax collection; then the annual-tax levy may
be reduced by such amount. The ability of each Municipality to levy taxes is subject to
constitutional, statutory and charter limitations, The governing body of each Municipality shall
each year, at least 90 days prior to the final date provided by law for the making of the annual tax
levy of the Municipality, submit to the County Agency a written statement setting forth the amount
of its obligations to the County which become due and payable under this Contract prior to the time
of the next following year's tax collections, the amount of the funds which the Municipality has or
will have on hand or to its credit in the hands of the County which have been set aside and pledged
for payment of said obligations to the County, and the amount of the taxes of the Municipality next
proposed to be levied for the purpose of raising money to meet such obligations. The County Agency
shall review such statement promptly and, if he finds that the proposed tax levy is insufficient, he
shall so notify the governing body of the Municipality; and each Municipality hereby covenants and
agrees that it will thereupon increase its levy to such extent as may be required by the County
Agency.
12. No change in the jurisdiction over any territory in any of the Municipalities shall in
any manner impair the obligations of this Contract or affect the obligations of the Municipalities
hereunder. In the event that all or any part of the territory of any Municipality is incorporated as
a new city or village or is annexed to or becomes a part of the territory of another municipality ,
the municipality into which such territory is incorporated or to which such territory is annexed
shall assume the proper proportionate share of the contractual obligations (including the pledge of
full faith and credit) of such Municipality, which proper proportionate share shall be fixed and
determined by the County Agency and shall be binding upon all parties concerned unless, within sixty
(60) days after such incorporation or annexation becomes effective, the governing body of the
Commissioners Minutes Continued. June 29, 1990 231
municipality into which such territory is incorporated or to which such territory is annexed and the
governing body of such Municipality shall by mutual agreement and with the written approval of the
County Agency Ox and determine such proper proportionate share. The County Agency shall, prior to
making such determination; receive a written recommendation as to the proper proportionate share
from a committee composed of one representative designated by the governing body of such
Municipality, one designated by the governing body of the new municipality or the municipality
annexing such territory, and one independent registered engineer appointed by the County Agency.
Each governmental unit shall appoint its representative within fifteen (15) days after being
notified to do so by the County Agency and within a like time the County Agency shall appoint the
engineer third member. If any such representative (other than the appointee of the County Agency)
is not appointed within the time above provided, then the county Agency may proceed without said
recommendation. If the committee shall not make the recommendation within forty-five (45) days
after its appointment or within any extension thereof by the County Agency, then the County Agency
may proceed without such recommendation.
13. This Contract is contingent upon the County issuing its negotiable bonds, as herein
provided, to defray such part of the total estimated cost of the Project as is necessary to be
financed, which bonds shall be issued under the authorization provided in Section 5a, 5b and Sc of
Act 342. Interest on the bonds may 0e capitalized and paid from the oonds proceeds for a period not
exceeding the estimated construction period and one year thereafter. In the event that the bonds
are not issued within three years from the date of this Contract, then unless extended by mutual
agreement it shall become null and void, except that the Municipalities shall pay all engineering,
legal and other costs and expenses theretofore incurred In the percentages set forth in Exhibit C
and shall be entitled to all plans, specifications and other engineering data and materials.
14. Upon completion of the Project the County and the Municipalities hereby agree that
the operation and maintenance of all of the facilities of the Systems shall be carried on and
continued in the same fashion and manner as integral parts of the Systems as are now in existence
and in effect pursuant to the Evergreen Agreement and the Farmington Agreement, with costs thereof
billed, collected and paid as at present.
If a grant; advance or payment becomes available from the state or feClerhl governments or
any other source; each Municipality hereby agrees to adopt such resolutions or ord i nances as may be
required by state or federal laws; regulations or orders to make the County and tne Project and the
Systems eligible to accept and receive the grant, advance or payment; and if the terms of the grant,
advance or payment require a local contribUtion; each Municipality hereby agrees to raise and make
such local contribution.
It is anticipated between the parties hereto that the Project to be built shall qualify
for a federal grant in accordance with 40 Code of federal Regulations, Part 35.2108. For purposes
of financing the Project, it is anticipated that the Project shall be eligible for federal grants as
noted on Exhibit B. The applicant, Oakland County; in accordance with the requirements of said
35.2108, agrees to complete the Project regardless of whether or not grant funding is available for
the Project, in accordance with the requirements of said 35.2108.
15. The County shall have no obligation or responsibility for providing sewers or sewage
disposal facilities except as herein expressly provided with respect to the acquisition of the
Project or as otherwise provided by contract. The Municipalities shall have the authority and the
responsibility to provide such other facilities and shall have the right to expand the facilities of
the Systems by constructing or extending sewers or related facilities; connecting the same to the
Systems, and otherwise improving the Systems. It is expressly agreed; nevertheless; that no such
connection (other than individual unit tap-ins) shall be made to the Systems and no improvements;
enlargements or extensions thereof shall be made without first securing a permit therefor from the
County Agency. Any such permit may be made conditional upon. inspection and approval of new
construction by the County Agency. It is further agreed that the Systems shall be used for
collection and conveyance of sanitary sewage only and that the Municipalities shall take all
necessary action to prevent entry into the Systems of storm waters and also to prevent entry of
sewage or wastes of such a character as to be injurious to the Systems or to the public health and
safety.
16. All powers, duties and functions vested by this Contract in the County shall be
exercised and performed by the County Agency, for and on behalf of the County, unless otherwise
provided by law or in this Contract.
17. The parties hereto recosnize that the holders from time to time of the bonds to be
issued by the County under the provisions of Act 342; and secured by the full faith and credit
pledge of the each of the Municipalities to the making of its payments as set forth in this
Contract, will have contractual rights in this Contract; and it is therefore covenanted and agreed
that so long as any of said bonds shall remain outstanding and unpaid; the provisions of this
Contract shall not be subject to any alteration or revision which would in any manner adversely
affect either the security of the bonds or the prompt payment of principal or interest thereon. Th(
right to make changes in this Contract; by amendment; supplemental contracts or otherwise; i!
nevertheless reserved insofar as the same do not have such adverse effect. The parties herett
further covenant and agree that they each will comply with their respective duties and obligatiom
under the terms of this Contract promptly; at the times and in the mariner herein set forth, and wil -
not suffer to be done any act which would in any way impair the contract of said bonds, the securit;
therefor, or the prompt payment of principal and interest thereon. It is hereby declared that the
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Commissioners Minutes Continued. June 28, 1990
terms of this Contract and of any amendatory or supplemental contract and any contract entered into
pursuant hereto insofar as they pertain to said bonds or to the payment of the security thereof,
shall be deemed to be for the benefit of the holders of said bonds.
18. The County Agency shall prepare, with the aid of its consultants; such covenants,
representations and warranties and have adopted by officials of the County and the Municipalities,
qAch procedures for construction, accounting, payment and operating as are necessary to comply with
the requirements of State and federal law in order to create and maintain the obligations of the
Municipalities and the County under this Contract and with respect to the bonds as valid and
binding obligations and in order to create and maintain the bonds as tax-exempt obligations under
State and federal income tax lam. Such covenants, representations and warranties and such
procedures shall be evidenced by and set forth in certificates or resolutions prepared for the
County Agency which the Municipalities and the County all hereby agree to approve, execute and adopt
at or prior to issuance and delivery of any bonds.
19, in the event that any one or more of the provisions of this Contract shall for any
reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegaility
or unenforceability shall not affect any other provisions hereof, but his Contract shall be
construed as if such invalid, illegal or unenforceable provision has never been contained herein.
20. This Contract shall become effective upon its execution by each party hereto and the
expiration of 45 days after the date of publication of the notices required by Section 5b of Act
342; provided, however, that if, within the 45-day period, a proper petition is filed with the Clerk
of any Municipality in accordance with the provisions of said Section Sb of Act 342 then this
Contract shall not become effective until approved by the vote of a majority of the electors of such
Municipality qualified to vote and voting thereon at a general or special election. if a notice is
not required by Section 5b of Act 342 for any Municipality this Contract shall be effective upon its
execution by such Municipality. This Contract shall terminate forty (40) years from the date hereof
or on such earlier date as shall be mutually agreed; provided however. that it shall not be
terminated at any time prior to the payment in full of the principal of and interest on the County
bonds together will all bond service charges pertaining to said bonds. This contract may be
executed in several counterparts. The provisions of this Contract shall inure to the benefit of and
be binding upon the successors and assigns of the .parties hereto.
IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed and
delivered by the undersigned; being duly authorized by the respective governing bodies of such
ptrties, all as of the day and year first above written.
TOWNSHIP OF WEST BLOOMFIELD COUNTY OF OAKLAND
By: By:
Supervisor County Drain Commissioner
And: (County Agency)
Township Clerk
CITY OF ORCHARD LAKE VILLAGE
By:
Mayor
And: c-fty Clerk
CITY OF SOUTHFIELD
By:
Mayor
And:
City Clerk
CITY OF FARMINGTON HILLS
By:
Mayor
And:
City Clerk -
3. CONFLICTING RESOLUTION. All resolutions and parts of resolutions insofar as they may
be in conflict herewith are hereby rescinded.
Mr. Chairperson, on behalf of the Planning and Building Committee, I move adoption of the
foregoing resolution.
PLANNING AND BUILDING COMMITTEE
, Larry P. Crake, Chairperson
Moved by Crake supported by Chester the resolution be adopted.
AYES: Caddell, Chester, Crake, Gosling, Huntoolv, Jensen, Johnson, R. Kuhn, Law,
McConnell, McCulloch, McPherson, Moffitt, Oaks, Olsen, Pappageorge, Pernick, Price, Rewold,
Skarritt, Aaron, Bishop. (22)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
Commissioners Minutes Continued, June 28; 1990 233
Misc. 90157
By Planning and Building Committee
IN RE: Drain Commissioner -"RESOLUTION TO APPROVE EVERGREEN AND FARMING -MN SEWAU DISPOSAL SYSTEMS
POLLUTION CONTROL FACILITIES -- SEGMENT II-STAGE 5, STAGE B AND SEES REHABILITATION CONTRACT
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS the County of Oakland (the "County") has heretofore established and constructed
and acquired the Evergreen Sewage Disposal System pursuant to the Evergreen Sewage Disposal System
Agreement, dated November 10, 195E, as amended; to serve tne Evergreen Sewage Disposal District,
within such district lie part of the City of Southfield and the Village of Beverly Hills
(collectively, the "Municipalities'); and
WHEREAS the County has heretofore established and constructed and acquired the Farmington
Sewage Disposal System pursuant to the Farmington Sewage Disposal System Agreement, dated November
1, 1957, as amended; and
WHEREAS the State of Michigan Department of Natural Resources designated the areas and
districts served by the Evergreen Sewage Disposal System and the Farmington Sewage Disposal System as
a single plan of study area for the purposes of Step I Facilities Planning; and
WHEREAS the County established under and pursuant to Act No. 342, Public Acts of Michigan;
1939; as amended (the "Act 342), a system of sewage disposal improvements and services to serve the
Evergreen Sewage Disposal District and the Farmington Sewage Disposal District, which system as so
established was designated as the 'Evergreen and Farmington Sewage Disposal Systems" and the Oakland
County Drain Commissioner was designated and appointed as the 'county agency" for tee Evergreen and
Farmington Sewage Disposal Systems with all the powers and duties with respect to said system as are
provided by law and especially by Act 342; and
WHEREAS it is now necessary to improve, enlarge and extend the Evergreen and Farmington
Sewage Disposal Systems by the acquisition and construction of the hereinafter described Evergreen
and Farmington Sewage Disposal Systems Pollution Control Facilities -- Segment II-Stage 5, Stage 13
and SEES Rehabilitation Contract; and
WHEREAS by the terms of Act 342; the County and the Municipalities are authorized to enter
into a contract for the acquisition, construction and financing of tne Evergreen and Farmington
Sewage Disposal Systems Pollution Control Facilities -- Segment Ii-Stage 5, Stage B and SEES Reha-
bilitation Improvements consistina of sewage disposal and pollution control facilities to serve the
Municipalities and for the payment of the cost thereof by the Municipalities; with interest; and the
County is then authorized to issue its bonds to provide the funds necessary therefor; and
WHEREAS there has been submitted to this Board of Commissioners a proposed contract
between the County; by and through the County Drain Commissioner; County Agency; party of the first
part; and the Municipalities, parties of the second part (the 'Contract'), which Contract provides
for the acquisition, construction and financing of enlargements, additions and improvements to the
Evergreen and Farmington Sewage Disposal Systems as described in Exhibit A to the Contract (the
"Project), and which Contract is hereinafter set forth in full; and
WHEREAS there have also been submitted for approval and adopted by this Board of
Commissioners; preliminary plans, specifications and estimates of the cost and period of usefulness
of the Project; and
WHEREAS the Contract provides for the issuance hereafter of bonds by the County to defray
part of the cost of the Project, said bonds to be secured by tee contractual obligations of the
Municipalities to pay to the County amounts sufficient to pay the principal of and interest on the
hereafter authorized bonds and to pay such paying agent fees and other expenses as may be incurred
on account of said bonds; and
WHEREAS this Board of Commissioners desires to .proceed with the .establishment of this
Project and the approval and execution of the Contract to aCquire, construct and finance the Project
as provided in the Contract.
THEREFORE BE IT RESOLVED BY THE. BOARD OF COMMISSIONERS OF OAKLAND COUNTY; MICHIGAN, as
follows:
1. ESTABLISHMENT OF SYSTEM AND DESIGNATION OF COUNTY AGENCY, This Board of Commissioners
by majority vote of its members-elect does hereby authorize and direct tnat there be established,
and there is hereby established, under and pursuant to Act 342, sewage disposal facilities to be
known as the "Evergreen and Farmington Sewage Disposal Systems Pollution Control Facilities --
Segment II-Stage 5 Stage 8 and SSES Rehabilitation Improvements," which shall consist of
enlargements; additions and improvements to the Evergreen and Farmington Sewage Disposal Systems, as
specified and to be located as shown in Exhibit A to the Contract; that the Project shall serve the
Municipalities; that the Oakland County Drain Commissioner is hereby designated and appointed as the
"County Agency" for the Evergreen and Farmington Sewage Disposal Systems Pollution Control
Facilities -- Segment II-Stage 5, Stage B and SSES Rehabilitation improvement; that the County
Agency shall have all the powers and duties with respect to the Evergreen and Farmington Sewage
Disposal Systems Pollution Control Facilities -- Segment II-Stage 5; Stage B and SSES Rehabilitation
Improvements as are provided by law and especially by Act 342; and that all obligations incurred by
the County Agency with respect to the Evergreen and Farmington Sewage Disposal Systems Pollution
Control Facilities -- Segment II-Stage 5, Stage B and SEES Rehabilitation Improvements, unless
otherwise authorized by this Board of Commissioners shall be payable solely from funds derived from
the Municipalities as hereinafter provided.
234
Commissioners Minutes Continued. June 28, 1990
2. PLANS AND SPECIFICATIONS - ESTIMATES OF PERIOD OF USEFULNESS AND COST. The
preliminary plans and specifications for the Project and the estimates of $3,519,000 as the cost
thereof and of 40 years and upwards as the period of usefulness thereof, as submitted to this Board
of Commissioners be and the same are hereby approved and adopted.
3. APPROVAL OF CONTRACT. The Evergreen and Farmington Sewage Disposal System Pollution
,pntrol Facilities -- Segment II-Stage 5, Stage B and SSES Rehabilitation Contract dated as of
September 1, 1989, between the County, by and through the County Drain Commissioner, party of the
first part, and the Municipalities, parties of the second part, which Contract has been submitted to
this Board of Commissioners, be and the same is hereby approved and adopted, and the County Drain
Commissioner is hereby authorized and directed to execute and deliver the same for and on behalf of
the County, in as many counterparts as may be deemed advisable, after the Contract has been executed
by the appropriate officials of the Municipalities. The Contract reads as follows:
EVERGREEN AND FARMINGTON SEWAGE DISPOSAL SYSTEMS
POLLUTION CONTROL FACILITIES --
SEGMENT II-STAGE 5, STAGE B AND SSES
REHABILITATION CONTRACT
THIS AGREEMENT, made as of this 1st day of September ., 1989, by and between the COUNTY OF
OAKLAND, a Michigan county corporation (hereinafter sometimes referred to as the "County"), by and
through its County Drain Commissioner (hereinafter referred to as the "County Agency"), party of the
first part, and the VILLAGE OF BEVERLY HILLS and the CITY OF SOUTHFIELD, municipal corporations in
the County of Oakland (hereinafter sometimes collectively referred to as the "Municipalities" and
individually as a "Municipality"), parties of the second part:
WITNESSETH:
WHEREAS the Oakland County Board of Supervisors by Resolution, Misc. No. 3269, adopted on
August 12, 1.957, as amended by Resolution, Misc. No. 3435, adopted on October 13, 1958, did approve
of establishment of the Evergreen Sewage Disposal System to serve the Evergreen Sewage Disposal
District; and
WHEREAS pursuant to the Evergreen Sewage Disposal System Agreement, dated November 10,
1958, as amended by amendatory agreements dated December 22, 1958 and February 9, 1959, all between
the County of Oakland and the Cities of Birmingham, Bloomfield Hills, Lathrup Village, Troy and
Southfield, the Village of Westwood (now the Village of Beverly Hills) and the Townships of
Bloomfield and Pontiac (now the City of Auburn Hills), municipal corporations in the County, the
County, acting through its Department of Public Works, did acquire the original Evergreen System and
did finance such acquisition by the issuance of bonds in anticipation of payments to be made by said
municipal corporations to the County in accordance with the provisions of said agreement, as
amended (herein referred to as the "Evergreen Agreement"); and
WHEREAS the Oakland County Board of Supervisors, by resolution, Misc. No. 3270, adopted
August 12; 1957, as amended by resolution, Misc. No. 3339, adopted January 24, 1958, did approve the
establishment of the Farmington Sewage Disposal System to serve the Farmington Sewage Disposal
District; and
WHEREAS pursuant to the Farmington Sewage Disposal System Agreement, dated November 1,
)957 as amended by amendatory agreements dated December 22, 1958; and February 9, 1959, all between
the County and the Cities of Southfield and Keego Harbor and the Townships of West Bloomfield and
Farmington (now City of Farmington Hills), municipal corporations in the County, the County acting
through its Department of Public Works, did acquire the original Farmington Sewage Disposal System
and did finance such acquisition by the issuance of bonds in anticipation of payments to be made by
said municipal corporations to the County in accordance with the provisions of said Agreement, as
amended (herein referred to as the "Farmington Agreement"); and
WHEREAS by annexation of part of the former Township of Farmington -the City ofFarmington
has become a user of the Farmington Sewage Disposal System and has area included in the Farmington
Sewage Disposal District; and
WHEREAS by contractual relationships with members of the Farmington Sewage ,Disposal
System, the City of Sylvan Lake and the City of Orchard Lake Village have become users of the
Farmington Sewage Disposal System; and
WHEREAS the State of Michigan Department of Natural Resources designated the areas and
districts served by the Oakland County Evergreen and Farmington Sewage Disposal Systems as a single
plan of study area for the purposes of Step I Facilities Planning and determined that there is a
need to obtain studies, reports, plans and estimates for the abatement of pollution, control of
pollutants and polluting discharges, and the relief of both the Evergreen and Farmington Sewage
Disposal Systems; and
WHEREAS the County established under and pursuant to Act No. 342, Public Acts of Michigan.
1939; as amended, a system of sewage disposal improvements and services to serve the areas and the
districts heretofore designated and described in Oakland County, Michigan, in Resolutions No. 3269,
3435 and 4115 as the Evergreen Sewage Disposal District and in Resolutions No. 3270 and 3339 as the
Farmington Sewage Disposal District, which system as so established was designated as the
"Evergreen and Farmington Sewage Disposal Systems" (hereinafter referred to as the "Systems") and
the Oakland County Drain Commissioner was designated and appointed as the "County Agency" for the
Systems as provided by law and especially by said Act 342; and
WHEREAS under and subject to the terms of Act 342, the County is authorized, through the
County Agency, to acquire and construct the sewage disposal improvements and pollution control
Commissioners Minutes Continued. June 28, 1990 235
facilities hereinafter described as part of the Systems, the County and the Municipalities are
authorized to enter into a contract, as hereinafter provided, for the acquisition and construction
of the improvements and facilities by the County and for financing all or part of the cost thereof
by the issuance of bonds by the County secured by the pledge of the full faith and credit of the
Municipalities to pay such cost with interest to the County in installments extending over a period
not exceeding forty (40) years, and the County is authorized to issue such bonds and, if authorized
by majority vote of the members-elect of the Board of Commissioners, to pledge its full faith and
credit for the payment of such bonds and the interest thereon; and
LiiEREAS there is an urgent need for such sewage disposal improvements and pollution
control facilities to provide the means of collecting and disposing of sanitary • sewage originating
in the Municipalities, in order to abate pollution of the waters of the Municipalities and thus to
promote the health and welfare of the residents thereof, which improvements and facilities would
likewise benefit the County and its residents, and the parties hereto have concluded that such
improvements and facilities can he most economically and efficiently provided and financed by the
County through the exercise of the powers conferred by Act 342; and especially Sections 5a, 5b and
Sc thereof; and
WHEREAS the County and the Municipalities desire to proceed with the acquisition and
construction of improvements and facilities using a combination of federal and state grant moneys
and local funds as needed for the proposed project as shown on Exhibit A hereto attached (the
'Project"), for which Project contractual arrangements for design; construction and financing are
required only with the Municipalities among all of the parties named hereinabove as participants in
and users of the Systems; and
WHEREAS the County Agency has obtained preliminary plans for the Project and also an
estimate of 3;519,000 as the total cost of the Project and an estimate of forty (40) years and
upwards as the period of usefulness thereof, all of which have been prepared by Hubbell, Roth &
Clark; Inc. (hereinafter sometimes referred to as the "Consulting Engineers') submitted herewith for
approval by the Board of Commissioners of the County and the governing bodies of the Municipalities
and will be placed on file in the office of the County Agency said estimates being -set forth in
Exhibit B hereunto attached; and
WHEREAS in order to provide for the acquisition and construction of the Project by the
Cdunty and the financing of the cost thereof by the issuance of County bonds; and for other related
matters, it is necessary for the parties hereto to enter into this Contract.
THEREFORE IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES HERETO, as follows:
1. The parties hereto hereby approve and agree to the establishment, acquisition,
construction and financing of the Project as herein provided; under and pursuant to Act 342. Each
Municipality; by way of compliance with Section 29, Article VII of the Michigan Constitution of
153; consents and agrees to the establishment and location of the Project within its corporate
boundaries and to the use by the county of its streets, highways; alleys, lands, rights -of-way or
other public places for the purpose and facilities of the Project and any improvements, enlargements
and extensions thereof, and each Municipality further agrees that, in order to evidence and
effectuate the foregoing agreement and consent it will execute and deliver to the County such
grants of easement, right -of-way, license, permit or consent as may be requested by the County.
2. The Project shall consist of enlargements; additions and improvements to the existing
sewage treatment facilities and sanitary sewers and related facilities as described and shown on
Exhibit A which is attached hereto and which is hereby made a part hereof and as are more
particularly set forth in the preliminary plans which have been prepared and submitted by the
Consulting Engineers which plans are on file with the County Agency and are hereby approved and
adopted. The Project shall be acquired and constructed substantially in accordance with the
preliminary plans and in accordance with final plans and specifications to he .prepared and submitted
by the Consulting Engineers, but variations therefrom which do not materially change the location,
capacity or overall design of the Project; and which do not require an increase in the total
estimated cost of the Project, may be permitted on the authority of the County Agency. Other
variations or changes may be made if approved by the County Agency and by resolution of the
governing body of each Municipality and if provisions required by paragraph (8) hereof are made for
payment or financing of any resulting increase in the total estimated cost. The estimate of cost of
the Project and the estimate of period of usefulness thereof as set forth in Exhibit B are likewise
hereby approved and adopted.
3. The County Agency shall take or cause to be taken all actions required or necessary,
in accordance with Act 342, to procure the issuance and sale of bonds by the County; in one or more
series; in whatever aggregate principal amount is necessary to be so financed to defray that part of
the total cost of the Project which is in excess of funds available from federal and/or state grants
or other sources. Such bonds shall be issued in anticipation of, and be payable primarily from, the
payments to be made by the Municipalities to the County in the percentages as provided in Exhibit C
which is attached hereto and which is hereby made a part hereof; and shall . be secured secondarily;
if so vote by the Board of Commissioners of the county; by the pledge of the full faith and credit
of the County; and the said bonds shall be payable in annual maturities the last of which shall be
not more than forty years from the date thereof.
4. The County Agency shall obtain and accept an offer of grant by the EPA/DNR for the
Project, proceed to take construction bids for the Project and; subject to the sale and delivery of
said bonds, enter into construction. contracts with the lowest responsive and responsible bidder or
236
Commissioners Minutes Continued. June 28, 1990
bidders, procure from the contractors all necessary and proper bonds and insurance, cause the
Project to be constructed within a reasonable time, and do all other things required by this
Contract and the laws of the State and the United States of America. All certificates for required
payments to contractors shall be approved by the Consulting Engineers before presentation to the
County Agency and the latter shall be entitled to rely on such approval in making payment.
The County hereby agrees that it will secure and maintain, or cause to be secured and
maintained -, during the period of construction adequate property damage and public liability
insurance covering all facilities to be constructed pursuant to this Contract. All policies and
memorandums of insurance shall provide that the County and the Municipalities shall be insured
parties thereunder and shall contain a provision requiring that each Municipality be notified at
least ten days prior to cancellation thereof. One copy of each policy and memorandum of insurance
shall be filed with each Municipality.
S. It is understood and agreed by the parties hereto that the Project is to serve the
Municipalities and not the individual property owners and users thereof, unless by special
arrangement between the County Agency and the governing body of the Municipality wherein such
property is located. The responsibility of requiring connection to and use of the Project and/or
providing such additional facilities as may be needed shall be that of the Municipality wherein such
property is located and such Municipality shall cause to be constructed and maintained, directly or
through the County, any such necessary additional facilities. The County shall not be obligated to
acquire or construct any facilities other than those designated in paragraph 2 hereof.
6. The Municipalities shall pay to the County their respective shares of the total cost
of the Project (less such funds as may become available from federal and/or State grants or from
other sources), which total cost for this purpose shall include, in addition to the items of the
nature set forth in Exhibit B (represented by the principal amount of the bonds to be issued by the
County plus such funds as may become available from federal and/or State grants or other sources);
all interest payable by the county on said bonds and all paying agent fees and other expenses and
charges (including the County Agency's administrative expenses) which are payable on account of said
bonds (such fees; expenses and charges being herein called "bond service charges"). The cost of the
Project is hereby allocated to the Municipalities in accordance with the percentages set forth in
Exhibit C. Such payments of each Municipality shall be made to the County in annual installments
which shall be due and payable at least thirty days prior to the day of the month specified in the
County bonds as the annual principal maturity date thereof. Such an annual installment of each
Municipality shall be so paid in each year if any principal and/or non -capitalized interest on said
bonds falls due during the twelve-month period beginning on such principal maturity date in said
Year, and the amount of each installment of each Municipality so due and payable shall be at least
sufficient, when added to the amount of the installments of the other Municipalities so due and
payable, to pay all such principal and/or interest thus falling due and all bond service charges
then due and payable. The County Agency shall, within thirty days after delivery of the County
bonds to the purchaser; furnish the Treasurer of each Municipality with a complete schedule of the
principal and interest maturities thereon, and the County Agency shall also; at least thirty days
before each payment is due to be made by each Municipality; advise the Treasurer of each
Municipality of the amount payable to the County on such date. If a Municipality fails to make any
payment to the County when due, the same shall be subject to a penalty of it thereof for each month
or fraction thereof that such amount remains unpaid after due. Failure of the County Agency to
furnish the schedule or give the notice as above required shall not excuse a Municipality from the
obligation to make payment when due. Such payments shall be made by each Municipality when due
whether or not the Project has then been completed or placed in operation. In the event that
additional County bonds shall be issued under the authority of this Contract to defray a part of the
cost of the System, the fo,egoing obligations shall apply to such. part. of the cost and to said
additional bonds Insofar as appropriate thereto.
7. A Municipality may pay in advance any one or more of its installments or any part
thereof payable to the County pursuant to this Contract (a) by surrendering to the County any of
said County bonds of like principal amount maturing in the same calendar year, or (b) by Paying to
the County in cash the principal amount of any County bonds which are subject to redemption prior to
maturity, plus all interest thereon to the first date upon which such bonds may be called for
redemption, and plus all applicable call premiums and bond service charges, and in such event the
County Agency shall call said bonds for redemption at the earliest possible date; provided, however;
that such advance payment and credit therefor shall be limited in amount at any given time to the
amount of bonds available for purchase or redemption by call within the twelve-month period
succeeding the date of the advance payment.' The installments or parts thereof so prepaid shall be
deemed to be the installments or parts thereof falling due in the same calendar year as the maturity
dates of the bonds surrendered or called for redemption and bonds so surrendered or redeemed shall
be cancelled.
8. In the event that it shall become necessary to increase the estimated cost of the
Project as hereinbefore stated, or if the actual cost of the Project shall exceed the estimated
cost, whether as the result of variations or changes permitted to be made in the approved plans or
otherwise, then (without execution of any further contract or amendment of this Contract) the
governing bodies of the Municipalities may; by resolution adopted within fifteen days after the
receipt of construction bids, direct that a portion of the Project be deleted sufficient to reduce
the total cost to an amount which shall not exceed the total estimated cost as hereinbefore stated
Commissioners Minutes Continued. June 28, 1990 237
by more than 5%; provided that such deletion shall not materially change or terminate the
eligibility of the Project for federal and/or state grants, or materially change the general scope,
overall design and purpose of the Project. In the absence of the adoption of such resolution the
Municipalities shall pay or procure the payment of the increase or excess in cash, or County bonds
in an increased or additional amount shall (upon adoption of an authorizing resolution therefor by
the Board of Commissioners of the County) be issued to defray such increased or excess cost, to the
extent that funds therefor are not available from other sources; provided, however, that no such
increase or excess shall be approved and no such increased or additional County bonds shall be
authorized to be issued, nor shall the County enter into any contract for acquisition or
construction of the Project or any part thereof or incur any obligation for or pay any item of cost
therefor, where the effect thereof would be to cause the total cost of the Project to exceed by more
than 5% its total estimated cost as hereinbefore stated; unless the governing body of each
Municipality shall have previously adopted a resolution approving such increase or excess and
agreeing that the same (or such part thereof as is not available from other sources) shall be paid
or its payment procured by the Municipalities in cash or be defrayed by the issuance of increased or
additional County bonds in anticipation of increased or additional payments agreed to be made by the
Municipalities to the County in the manner hereinbefore provided; provided, further, that the
adoption of such resolution by the governing body of each Municipality snail not be required prior
to or as a condition precedent to the issuance of additional bonds by the County if the County has
previously issued or contracted to sell bonds to pay all or part of the cost of the Project and the
issuance of the akiditional bonds is necessary) as determined by the County) to pay such increased,
adOltIonal or excess costs as are essential to completing of the Project according to the plans as
last approved prior to the time when the previous bonds were issued or contracted to be solo.
9. In the event that the actual cost of the Project is less than the total estimated
cost, then any surplus available to the County from the sale of County bonds; at the option of the
governing bodies of the Municipalities shall be used to improve, enlarge or extend the Systems; to
apply upon future payments due to the County, to redeem bonds or to purchase bonds on the open
market, provided that such surplus shall be used to improve; enlarge or extend the Systems only if
authorized by the Board of Commissioners of the County. Any such surplus may; for the purpose of
improving; enlarging or extending the Systems, be supplemented by cash payments to be made by the
Municipalities; or such improvements; enlargements or extensions may be financed entirely from such
cash payments, where authorized by the governing bodies of the Municipalities. Where any such
surplus is used to redeem or purchase bonds, the same shall be cancelled; and the payments
thereafter required to be made by the Municipalities to the County shall be reduced so as to reflect
the resulting saving of interest and the payment required to be made in the calendar year of the
stated maturity of said bonds shall be reduced by the principal amount thereof.
10. Should a Municipality fail for any reason to pay the County at the times specified,
the amounts herein required to be paid, such Municipality does hereby authorize the State Treasurer
or other official charged with the disbursement of unrestricted state funds returnable to such
Municipality pursuant to the Michigan Constitution to withhold sufficient funds to make up any
default or deficiency in funds. If the full faith and credit of the County is pledged for the
prompt payment of the principal of and interest on the bonds to be issued by the County and if the
County is required to advance any money by reason of such pledge on account of the delinquency of
such Municipality; the County Treasurer is hereby authorized to notify the State Treasurer to deduct
the amount of money so advance by the County from any unrestricted moneys in the State Treasurer's
possession belonging to such Municipality and to pay such amount to the County.
The foregoing shall not operate to limit the County's right to pursue any other legal
remedies for the reimbursement of moneys advanced on account of the default of such Municipality.
11. Each Municipality, pursuant to the authorization of Section 5a of Act No. 342, hereby
pledges its full faith and credit for the prompt and timely payment of its obligations expressed in
this Contract and each year shall levy a tax in an amount which, taking into consideration estimated
delinquencies in tax collections, will be sufficient to pay its obligations under this Contract
becoming due before the time of the following year's tax collections; provided, however, that if at
the time of making its annual tax levy, a Municipality shall have on hand in cash other funds
(including but not limited to funds from special assessments; user charges or connection fees) which
have been set aside and pledged or are otherwise available for the payment of such contractual
obligations falling due prior to the time of the next tax collection; then the annual tax levy may
be reduced by such amount. The ability of each Municipality to levy taxes is subject to
constitutional, statutory and charter limitations. The governing body of each Municipality shall
each year, at least 90 days prior to the final date provided by law for the making of the annual tax
levy of the Municipality, submit to the County Agency a written statement setting forth the amount
of its obligations to the County which become due and payable under this Contract prior to the time
of the next following year's tax collections; the amount of the funds which the Municipality has or
will have on hand or to its credit in the hands of the county which have been set aside and pledged
for payment of said obligations to the County, and the amount of the taxes of the Municipality next
proposed to be levied for the purpose of raising money to meet such obligations. The County Agency
shall review such statement promptly and; if he finds that the proposed tax levy is insufficient; he
shall so notify the governing body of the Municipality, and each Municipality hereby covenants and
agrees that it will thereupon increase its levy to such extent as may be required by the County
Agency.
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Commissioners Minutes Continued. June 28; 1990
12. No change in the jurisdiction over any territory in any of the Municipalities shall in
any manner impair the obligations of this Contract or affect the obligations of the
Municipalities hereunder. In the event that all or any part of the territory of
any Municipality is incorporated as a new city or village or is
annexed to or becomes a part of the territory of another municipality, the municipality into which
,nch territory is incorporated or to which such territory is annexed shall assume the proper
proportionate share of the contractual obligations (including the pledge of full faith and credit)
of such Municipality, which proper proportionate share shall be fixed and determined by the County
Agency and shall be binding upon all parties concerned unless, within sixty (60) days after such
incorporation or annexation becomes effective, the governing body of the municipality into which
such territory is incorporated or to which such territory is annexed and the governing body of such
Municipality shall by mutual agreement and with the written approval of the County Agency fix and
determine such proper proportionate share. The County Agency shall, prior to making such
determination, receive a written recommendation as to the proper proportionate share from a
committee composed of one representative designated by the governing body of such Municipality, one
designated by the governing body of the new municipality or the municipality annexing such
territory, and one independent registered engineer appointed by the County Agency. Each
governmental unit shall appoint its representative within fifteen (15) days after being notified to
do so by the county Agency and within a like time the County Agency shall appoint the engineer third
member. If any such representative (other than the appointee of the County Agency) is not appointed
within the time above provided, then the County Agency may proceed without said recommendation. If
the committee shall not make the recommendation within forty-five (45) days after its appointment or
within any extension thereof by the County Agency; then the County Agency may proceed without such
recommendation.
13. This Contract is contingent upon the County issuing its negotiable bonds, as herein
provided; to defray such part of the total estimated cost of the Project as is necessary to be
financed; which bonds shall be issued under the authorization provided in Section 5a, 5b and Sc of
Act 342. Interest on the bonds may be capitalized and paid from the bond proceeds for a period not
exceeding the estimated construction period and one year thereafter. In the event that the bonds
are not issued within three years from the date of this Contract; then unless extended by mutual
agreement it shall become null and void, except that the Municipalities shall pay all engineering,
legal and other costs and expenses theretofore incurred in the percentages set forth in Exhibit C
and shall be entitled to all plans, specifications and other engineering data and materials.
14. Upon completion of the Project the County and the Municipalities hereby agree thatthe •
operation and maintenance of all of the facilities of the Systems shall be carried on and continued
in the same fashion and manner as integral parts of the Systems as are now in existence and in
effect pursuant to the Evergreen Agreement and the Farmington Agreement, with costs thereof billed,
collected and paid as at present.
If a grant, advance or payment becomes available from the state or federal governments or
any other source, each Municipality hereby agrees to adopt such resolutions or ordinances as may be
required by state or federal laws, regulations or orders to make the county and the Project and the
Systems eligible to accept and receive the grant, advance or payment, and if the terms of the grant,
advance or payment require a local contribution, each Municipality hereby agrees to raise and make
such local contribution.
It is anticipated between the parties hereto that the Project to be built shall qualify
for a federal grant in accordance with 40 Code of federal Regulations; Part 35.2108. For purposes
of financing the Project, it is anticipated that the Project shall be eligible for federal grants as
noted on Exhibit B. The applicant, Oakland County; in accordance with the requirement of said
35.2108; agrees to complete the Project regardless of whether or not grant funding is available for
the Project, in accordance with the requirements of said 35.2108.
15. The County shall have no obligation or responsibility for providing sewers or sewage
disposal facilities except as herein expressly provided with respect to the acquisition of the
Project or as otherwise provided by contract. The Municipalities shall have the authority and the
responsibility to provide such other facilities and shall have the right to expand the facilities of
the Systems by constructing or extending sewers or related- facilities; connecting the same to the
Systems, and otherwide improving the Systems. It is expressly agreed; nevertheless, that no such
connection (other than individual unit tap-ins) shall be made to the Systems and no improvements,
enlargements or extensions thereof shall be made without first securing a permit therefor from the
County Agency. Any such permit may be made conditional upon inspection and approval of new
construction by the County Agency. It is further agreed that the Systems shall be used for
collection and conveyance of sanitary sewage only and that the Municipalities shall take all
necessary action to prevent entry into the Systems of storm waters and also to prevent entry of
sewage or wastes of such a character as to be injurious to the Systems or to the public health and
safety.
16. All powers, duties and functions vested by this Contract in the County shall be
exercised and performed by the County Agency, for and on behalf of the County, unless otherwise
provided by law or in this Contract.
17. The parties hereto recognize that the holders from time to time of the bonds to be
issued by the county under the provisions of Act 342, and secured by the full faith and credit
pledge of each of the Municipalities to the making of its payments as set forth in this Contract,
Commissioners Minutes Continued. June 28, 1990 239
will have contractual rights in this Contract, and it is therefore covenanted and agreed that so long
as any of said bonds shall remain outstanding and unpaid, the provisions of this Contract shall not
be subject to any alteration or revision which would in any manner adversely affect either the security
of the bonds or the prompt payment of principal or interest thereon. The right to make changes in this
Contract, by amendment, supplemental contracts or otherwise, is nevertheless reserved insofar as the
Same de not have such adverse effect. The parties hereto further covenant and agree that they each
will comply with their respective duties and obligations under the terms of this Contract promptly,
at tne times and in the manner herein set forth, and will not suffer to be done any act which would
in any way impair the contract of said bonds, the security therefor, or the prompt payment of
principal and interest thereon. It is hereby declared that the terms of this Contract and of any
amendatory or supplemental contract and any contract entered into pursuant hereto, insofar as they
pertain to said bands or to the payment or the security thereof, shall no deemed to be for the
benefit of the holders of said bonds.
18. The County Agency shall prepare, with the aid of its consultants, such covenants;
representations and warranties and have adapted by officials of the County and the Municipalities
such procedures for construction, accounting, payment and operating as are necessary to comply with
the requirements of State and federal law in order to create and maintain the obligations of the
Municipalities and the County under this Contract and with respect to the bonds as valid and
binding obligations and in order to create and maintain the bonds as tax -exempt obligations under
5'Late and federal income tax law. Such- covenants; representations and warranties and such procedures shall be evidenced by
and set forth in certificates or resolutions prepared for the County Agency which the Township and the County all hereby
agree to approve; execute and adopt at or prior to issuance and delivery. of any bends. • IS. In the event that any one or more ot the provislons of this Contract shall for any
reason be held to be invalid, illegal or unenforceable in any respect; such invalidity, illegality
or unenforceability she'll not affect any other provisions hereof, out this Contract shall be
construed as if such invalid, illegal or unenforceable provision has never been contained herein.
20. This Contract shall become effective upon its execution by ech party hereto and the
expiration of 45 days after the date of publication of the notices required by Section 5b of Act
342; provided, however, that if, within the 45 -day period; a proper petition is filed with the Clerk
of any Municipality in accordance with the provisions of said Section 5b of Act 342 then this
Contract shall not become effective until approved by the vote of a majority of the electors of such
Municipality qualified to vote and voting thereon at a general or special election. This Contract
shall terminate forty (43) years from the date hereof or or sucn earlier date as shall be mutually
agreed; provided; however, that it shall not be terminated at any time prior to the payment in full
of the principal of anu interest on the 'County bones together with all bond service charges
pertaining to said bonds. This Contract may be executed in several counterparts. The provisions of
this Contract shall inure to the benefit of and be binding upon the successors and assigns of the
parties hereto.
21. The Agreement -- Evergreen and Farmington Sewage Disposal Systems Pollution Control
Facilities Beverly hills; dated as of February 1, 1988; between the County and the Village of
Beverly Hills is hereby cancelled and totally replaced by this Contract.
IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed and
delivered by the undersigned; being duly authorized by the respective governing bodies of such
parties; all as of the day and year first above written.
CITY OF SOUTHFIELD COUNTY OF OAKLAND
By: By:
Mayor County Drain Commissioner
(County Agency)
And:
City Clerk
VILLAGE OF BEVERLY HILLS
By:
President
And:
Village LierK
Mr. Chairperson; on behalf of the Planning and Building Committee; I move adoption of the
foregoing resoluton.
PLANNING AND BUILDING COMMITTEE
Larry P. Crake; Chairperson
Moved by Crake supported by Aaron the resolution be adopted.
AYES: Chester, Crake, Gosling, Huntoon, Jensen, Johnson; R. Kuhn, Law, McConnell,
McCulloch, McPherson, Moffitt, Oaks, Olsen, Pappageorge, Pernick, Price, Rewold, Skarritt, Aaron,
Bishop, Caddell. (22)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
240
Commissioners Minutes Continued. June 28, 1990
Misc, 90158
By Planning and Building Committee
IN RE: Drain Commissioner - RESOLUTION TO APPROVE EVERGREEN AND FARMINGTON SEWAGE DISPOSAL SYSTEMS
POLLUTION CONTROL FACILITIES -- SEGMENT I-STAGE 2 - SEGMENT II - ARMS 0 AND N - LOCAL RELIEF SEWERS
AND SSES REHABILITATION CONTRACT
-To the Oakland County Hoard of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS the County of Oakland (the "County") has heretofore established and constructed
and acquired the Evergreen Sewage Disposal System pursuant to the Evergreen Sewage Disposal System
Agreement, dated November 10, 1958, as amended, to serve the Evergreen Sewage Disposal District,
within such district lies the Township of West Bloomfield (the 'Township"); and
WHEREAS the County has heretofore established and constructed and acquired the Farmington
Sewage Disposal System pursuant to the Farmington Sewage Disposal System Agreement, dated November
1, 1957, as amended; and
WHEREAS the State of Michigan Department of Natural Resources designated the areas and
districts served by the Evergreen Sewage Disposal System and the Farmington Sewage Disposal System
as a single plan of study area for the purposes of Step I Facilities Planning; and
WHEREAS the County established under and pursuant to Act No. 342, Public Acts of Michigan,
1939, as amended ("Act 342"), a system of sewage disposal improvements and services to serve the
Evergreen Sewage Disposal District and the Farmington Sewage Disposal District, which system, as so
established was designated as the 'Evergreen and Farmington Sewage Disposal Systems" and the Oakland
County Drain Commissioner was designated and appointed as the "county agency" for the Evergreen and
Farmington Sewage Disposal Systems with all the powers and duties with respect to said system as are
provided by law and especially by Act 342; and
WHEREAS it is now necessary to improve, enlarge and extend the Evergreen and Farmington
Sewage Disposal Systems by the acquisition and construction of the hereinafter described Evergreen
and Farmington Sewage Disposal Systems Pollution Control Facilities -- Segment I-Stage 2 - Segment
II-Arms J and K - Local Relief Sewers and SSES Rehabilitation Contract; and
WHEREAS by the terms of Act 342, the County and the Township are authorized to enter into
a contract for the acquisition, construction and financing of the Evergreen and Farmington Sewage
Disposal Systems Pollution Control Facilities -- Segment I-Stage 2 - Segment II-Arms 0 and K - Local
Relief Sewers and SSES Rehabilitation Improvements consisting of sewage disposal and pollution
control facilities to serve the Township and for the payment of the cost thereof by the Township with
interest; and the County is then authorized to issue its bonds to provide the funds necessary
therefor; and
WHEREAS there has been submitted to this Board of Commissioners a proposed contract
between the County, by and through the County Drain Commissioner, County Agency; party of the first
part; and the Township, party of the second part (the "Contract"); which Contract provides for the
acquisition, construction and financing of enlargements, additions and improvements tothe,Evergreen
and Farmington Sewage Disposal Systems as described in Exhibit A to the Contract (the "Project"),
and which Contract is hereinafter set forth in full; and
WHEREAS there have also been submitted for approval and adoption by this Board of
Commissioners, preliminary plans, specifications and estimates of the cost and period of usefulness
of the Project; and
WHEREAS the Contract provides for the issuance hereafter of bonds by the county to defray
part of the cost of the Project, said bonds to be secured by the contractual obligations of the
Township to pay to the County amounts sufficient to pay the principal of and interest on the
hereafter authorized bonds and to pay such paying agent fees and other expenses as may be incurred
on account of said bonds; and
WHEREAS this Board of Commissioners desires to proceed with the establishment of this
Project and the approval and execution of the Contract to acquire; construct and finance the Project
as provided in the Contract.
THEREFORE BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF OAKLAND COUNTY, MICkIGAN, as
follows:
1. ESTABLISHMENT OF SYSTEM AND DESIGNATION OF COUNTY AGENCY. This Board of Commissioners
by majority vote of its members-elect does hereby authorize and direct that there be established,
and there is hereby established, under and pursuant to Act 342; sewage disposal facilities to be
known as the "Evergreen and Farmington Sewage Disposal Systems Pollution Control Facilities --
Segment I-Stage 2 - Segment II-Arms 0 and K - Local Relief Sewers and SSES Rehabilitation
Improvements", which shall consist of enlargements additions and improvements to the Evergreen and
Farmington Sewage Disposal Systems; as specified and to be located as shown in Exhibit A to the
Contract; that the Project shall serve the Township; that the Oakland County Drain Commissioner is
hereby designated and appointed as the "County Agency" for the Evergreen and Farmington Sewage
Disposal Systems Pollution Control Facilities -- Segment I-Stage 2 - Segment II-Arms J and K Local
Relief Sewers and SSES Rehabilitation Improvements; that the County Agency shall have all the powers
and duties with respect to the Evergreen and Farmington Sewage Disposal Systems Pollution Control
Facilities - Segment I-Stage 2 - Segment II -Arms 0 and K - Local Relief Sewers and SSES
Rehabilitation Improvements as are provided by law and especially by Act 342; and that all
obligations incurred by the County Agency with respect to the Evergreen and Farmington Sewage
Disposal Systems Pollution Control Facilities -- Segment I-Stage 2 - Segment II-Arms 0 and K - Local
Commissioners Minutes Continued. June 28, 1990 241
Relief Sewers and SSES Rehabilitation Improvements, unless otherwise authorized by this Uard of
Commissioners, shall be payable solely from funds derive( from the Township as hereinafter provided.
2. PLANS AND SPECIFICATIONS - ESTIMATES OF PERIOD OF USEFULNESS AND COST, The
preliminary plans and specifioations for the Project and, the estimates of $;226,324 as the cost
thereof and of 30 years and upwards as the period of usefulness thereof; as submitted to this Board
of Commissioners be ann. the same are hereby approved and adoptee.
3. APP2OVAL OF CONTRACT. The Evergreen and Farmington Sewage Dis?osal Systems Pollution
Control Facilities -- Segment I- Stage 2 - Segment II-Arms S and K - Local Relief Sewers and SSES
Rehabilitation Contract dated as of April 1, 1990, between the County; by anal through the County
Drain Commissioner, party of the first part, and the Township; party of the second part, which
Contract has been subnitted to this Board of Commissioners, be ann the same is hereby approved and
adopted, and. the County Drain Commissioner is hereby authorized and directed to execute and deliver
the same for and on behalf of the County, in as many counterparts as ma .' be deemed advisable, after
the Contract has been executed by the appropriate officials of the Towrhin. The Contract reads as
follows:
EVERGREEN AND FARMINGTON SEWAGE DISPOSAL SYSTEMS
POLLUTION CONTROL FACILITIES --
SEGMENT I - STAGE 2; SEGMENT II - ARMS J AND K -
LOCAL RELIEF SEWERS - SSES REHABILITATION
THIS AGREEMENT' made as of this 1st day of April; 1990; by and between the COUNTY OF
OAKLAND, a Michigan county corporation (hereinafter sometimes referred to as the "County"); by and
through its County Drain Commissioner (hereinafter referred to as the "County Agency'), party of the
first part; and the TOWNSHIP OF WEST BLOOMFIELD; a charter township corporation in the County of
Oakland (hereinafter referred to as the "Township"), party of the second part:
WITNESSETH:
WHEREAS the Oakland County Board of Supervisors by resolution; Misc. No. 3259; adopted on
August 12, 1957; as amended by resolution; Misc. No, 3435; adopted on October 13; 1958, did approve
of establishment of the Evergreen Sewage Disposal System to serve the Evergreen Sewage Disposal
District; and
WHEREAS pursuant to the Evergreen Sewage Disposal System Agreement, dated November 10;
1958, as amended by amendatory agreements dated December 22; 1958 and February 9; 1959, all between
the County of Oakland and the Cities of Birmingham; Bloomfield Hills; Lathrup Village; Troy and
Southfield; the Village of Westwood (now the Village of Beverly Hills) and the Townships of
Bloomfield and Pontiac (now the City of Auburn Hills); municipal corporations in the County; the
County; acting through its Department of Public Works; did acquire the original Evergreen System and
did finance such acquisition by the issuance of bonds in anticipation of payments to be made by said
municipal corporations to the County in accordance with the provisions of said agreement, as amended
(herein referred to as the "Evergreen Agreement"); and
WHEREAS the Oakland County Board of Supervisors by resolution; Misc. No. 3270; adopted
August 12; 1957, as amended by resolution, Misc. No. 3339, adopted January 24, 1958, did approve the
establishment of the Farmington Sewage Disposal System to serve the Farmington Sewage Disposal
District; and
WHEREAS pursuant to the Farmington Sewage Disposal System Agreement; dated November 1;
1957, as amended by amendatory agreements dated December 22; 1958; and February 9; 1959, all between
the County and the Cities of Southfield and Keego Harbor and the Townships of West Bloomfield and
Farmington (now City of Farmington Hills); municipal corporations in the County; the County acting
through its Department of Public Works, did acquire the original Farmington Sewage Disposal system
and did finance such acquisition by the issuance of bonds in anticipation of payments to be made by
said municipal corporations to the County in accordance with the Provisions of said Agreement, as
amended (herein referred to as the "Farmington Agreement"); and
WHEREAS by annexation of part of the former Township of Farmington the City of Farmington
has become a user of the Farmington Sewage Disposal System and has area included in. the Farmington
Sewage Disposal District; and
WHEREAS by contractual relationships with members of the Farmington Sewage Disposal
System; the City of Sylvan Lake and the City of Orchard Lake Village have become' users of the
Farmington Sewage Disposal System; and
WHEREAS the State of Michigan Department of Natural Resources. (herein the "MDNR") acting
on behalf of itself and the United States Environmental Protection Agency (herein the "USEPA")
designated the areas and districts served by the Oakland County Evergreen and Farmington Sewage
Disposal Systems as a single plan of study area for the purposes of Step I Facilities Planning and
determined that there is a need to obtain studies; reports; plans and estimates for the abatement of
pollution, control of pollutants and polluting discharges and the relief of both the Evergreen and
Farmington Sewage Disposal Systems and issued a Final Order of Abatement to the County and each
municipal corporation using either System or either District; and
WHEREAS the County established under and pursuant to Act No. 342; Public Acts of Michigan,
1939; as amended; merged system of sewage disposal improvements and services to serve the areas and
the districts heretofore designated and described in Oakland County; Michigan; in resolutions No.
3269; 3435 and 4115 as the Evergreen Sewage Disposal District and in Resolutions No. 3270 and 3339
as the Farmington Sewage Disposal District; which merged system as so established was designated as
the 'Evergreen and Farmington Sewage Disposal Systems" (hereinafter referred to as the "Systems")
242
Commissioners Minutes Continued, June 28, 1990
and the "Evergreen and Farmington Sewage Disposal Districts" (hereinafter referred to as the
"Districts') and the Oakland County Drain Commissioner was designated and appointed as the "County
Agency" for the Systems as provided by law and especially by said Act 342; and
WHEREAS the County and all of the municipal corporations described in the foregoing
paragraphs as users of the Farmington System and the Evergreen System and as having area included in
he Farmington District and in the Evergreen District (herein the 'Municipalities") have at the
request and approval of the MDNR and the USEPA, entered into an Intermunicipal Contract Concerning
Wastewater Treatment and Pollution Control Projects for the Systems; dated as of September 30, 1989,
(the "Intermunicipal Contact') in which the County and the Municipalities agree to acquire
Facilities and to carry out Projects as described in said Intermunicipal Contract throughout the
Systems in various parts of the Districts all in compliance with the Final Order of Abatement and
Federal Grant requirements; and
WHEREAS under and subject to the terms of Act 342; the County is authorized, through the
County Agency; to acquire and construct the sewage disposal improvements and pollution control
facilities hereinafter described as part of the Systems; the County and the Municipalities are
authorized to enter into a contract; as hereinafter provided, for the acquisition and construction
of the improvements and facilities by the County and for financing all or part of the cost thereof
by the issuance of bonds by the County secured by the pledge of the full faith and credit of the
Municipalities to pay such cost with interest to the County in installments extending over a period
not exceeding forty (40) years, and the County is authorized to issue such bonds and; it
authorized by majority vote of the members-elect of its Board of Commissioners to pledge its full
faith and credit for the payment of such bonds and the interest thereon; and
WHEREAS there is an urgent need for such sewage disposal improvements and pollution
control facilities to comply with the MOHR Final Order of Abatement and to provide the means of
collecting and disposing of sanitary sewage originating in the Township, in order to abate pollution
of the waters of the Township and thus to promote the health and welfare of the residents thereof;
which improvements and facilities would likewise benefit the County and its residents; and the
parties hereto have concluded that such improvements and facilities can be most economically and
efficiently provided and financed by the County through the exercise of the powers conferred by Act
342; and,especially Sections 5a, 5b and 5c thereof; and
WHEREAS the County and the Township desire to proceed with the acquisition and
construction of improvements and facilities using a combination of federal and state grant moneys
and local funds as needed for the proposed project as shown on Exhibit A hereto attached (the
"Project"); for which Project contractual arrangements for design; construction and financing are
required only with the Township among all of the parties named hereinabove as participants in and
users of the Systems; and
WHEREAS the County Agency has obtained preliminary plans for the Project and also an
estimate of $4;226,324 as the total cost of the Project and an estimate of thirty (30) years upwards
as the period of usefulness thereof, all of which have been prepared by Hubbell; Roth & Clark; Inc.
(hereinafter sometimes referred to as the "Consulting Engineers") submitted herewith for approval by
the. Board of Commissioners of the County and the governing body of the Township and will be placed
on file in the office of the County Agency; said estimates being set forth in Exhibit B hereunto
attached; and
WHEREAS in order to provide for the acquisition and construction of the Project by the
County and the financing of the cost thereof by the issuance of County bonds, and for other related
matters; it is necessary for the parties hereto to enter into this Contract.
THEREFORE, IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES HERETO; as follows:
1. The parties hereto hereby approve and agree to the establishment; acquisition,
construction and financing of the Project as herein provided; under and pursuant toAct 342. The
Township; by way of compliance with Section 29, Article VII of the Michigan Constitution of 1963,
consents and agrees to the establishment and location of the Project within its corporate boundaries
and to the use by the County of its streets, highways, alleys; lands; rights-of-way or other public
places for the purpose and facilities of the Project and any improvements, enlargements and
extensions thereof; and the Township further agrees that; in order to evidence and effectuate the
foregoing agreement and consent; it will execute and deliver to the County such grants of easement,
right-of-way; license; permit or consent as may be requested by the County.
. 2. The Project shall consist of construction of sanitary interceptor relief sewers and
appurtenances, re-modeling of a pumping station, construction of local relief sewers and
rehabilitation of sewers and appurtenances as described in a Sewer System Evaluation Survey Report
(SSES) and related facilities as described and shown on Exhibit A and Exhibit B which are attached _
hereto and which are hereby made a part hereof; and as are more particularly set forth in the
preliminary plans which have been prepared and submitted by the Consulting Engineers which plans are
on file with the County Agency and are hereby approved and adopted. The Project shall be acquired
and constructed substantially in accordance with the preliminary plans and in accordance with final
plans and specifications to be prepared and submitted by the Consulting Engineers but variations
therefrom which do not materially change the location; capacity or overall design of the Project;
and which do not require an increase in the total estimated cost of the Project; may be permitted on
the authority of the County Agency. Other variations or changes may be made if approved by the
County Agency and by resolution of the governing body of the Township and if provisions required by
paragraph (8) hereof are made for payment or financing of any resulting increase in the total
estimated cost. The estimate of cost of the Project and the estimate of period of usefulness there-
Commissioners Minutes Continued. June 28, 1990 243
of as set forth in Exhibit B are likewise hereby approved and adopted.
3. The County Agency shall take or cause to be taker all actions required or necessary;
in accordance with Act 342, to procure the issuance and sale of bonds by the County, in one or more
series; in whatever aggregate principal amount is necessary to be so financed to defray that part of
the total cost of the Project which is in excess of funds available from federal and/or state grants
or other sources including cash contributions from the Township. Such bonds shall be issued in
anticipation of; and be payable primarily from; the payments to be made by the Township to the
County, and shall be secured secondarily, if so voted by the Board of Commissioners of the County,
by the pledge of the full faith and credit of the County; and the said bonds shall be payable in
annual maturities the last of which shall be not more than forty years from the date thereof.
4. The County Agency shall obtain and accept an offer of grant by the USEPA/MDNR for the
Project, proceed to take construction bids for the Project and; subject to the sale and delivery of
said bonds, enter into construction contracts with the lowest responsive and responsible bidder or
bidders, procure from the contractors all necessary and proper bonds and insurance, cause the
Project to be constructed within a reasonable time; and do all other things required by this
Contract and the laws of the State and the United States of America. All certificates for required
payments to contractors shall be approved by the Consulting Engineers before presentation to the
County Agency and the latter shall be entitled to rely on such approval in making payment.
The County hereby agrees that it will secure and maintain; or cause to be secured and
maintained, during the period of construction adequate property damage and public liability
insurance covering all facilities to be constructed pursuant to this Contract. All policies and
memorandums of insurance shall provide that the County and the Township shall be insured parties
thereunder and shall contain a provision requiring that the Township be notified at least ten days
prior to cancellation thereof. One copy of each policy and memorandum of insurance shall be filed
with the Township.
S. It is understood and agreed by the parties hereto that the Project is to serve the
Township and not the individual property owners and users thereof, unless by special arrangement
between the County Agency and the governing body of the Township. The responsibility of requiring
connection to and use of the Project and/or providing such additional facilities as may be needed
shall be that of the Township and such Township shall cause to be constructed and maintained,
directly or through the County; any such necessary additional facilities. The County shall not be
obligated to acquire or construct any facilities other than those designated in paragraph 2 hereof.
6, If the Township elects to pay part of the cost of the Project through a cash
contribution it shall pay in full to the County such share of the total cost not later than the date
of award of the construction contract for the Project. Otherwise the Township shall pay to the
County the total cost of the Project (less such funds as may become available from federal and/or
State grants or from other sources), which total cost for this purpose shall include, in addition to
the items of the nature set forth in Exhibit B (represented by the principal amount of the bonds to
be issued by the county plus such funds as may become available from federal and/or State grants or
other sources), all interest payable by the County on said bonds and all paying agent fees and other
expenses and charges (including the County Agency's administrative expenses) which are payable on
account of said bonds (such fees, expenses and charges being herein called 'bond service charges").
Such payments of the Township shall be made to the County in annual installments which shall be due
and payable at least thirty days prior to the day of the month specified in the County bonds as the
annual principal maturity data thereof. Such an annual installment of the Township shall be so paid
in each year if any principal and/or non-capitalized interest on said bonds falls due during the
twelve-month period beginning on such principal maturity date in said year, and the amount of each
installment of the Township so due and payable shall be at least sufficient to pay all such
principal and/or interest thus falling due and all bond service charges then due and payable. The
County Agency shall; within thirty days after delivery of the County bonds to the purchaser; furnish
the Treasurer of the Township with a complete schedule of the principal and interest maturities
thereon, and the County Agency shall also; at least thirty days before each payment is due to be
made by the Township; advise the Treasurer of the Township of the amount payable to the County on
such date. If the Township fails to make any payment to the County when due; the same shall be
subject to a penalty of -It thereof for each month or fraction thereof that such amount remains
unpaid after due. Failure of the County Agency to furnish the schedule or give the notice as above
required shall not excuse the Township from the obligation to make payment when due. . Such payments
shall be made by the Township when due whether or not the Project has then been completed or placed
in operation. In the event that additional County bonds shall be issued under the authority of this
Contract to defray a part of the cost of the System; the foregoing obligations shall apply to-such
part of the cost and to said additional bonds insofar as appropriate thereto.
7. The Township may pay in advance any one or more of its installments or any part
thereof payable to the County pursuant to this Contract (a) by surrendering to the County any of
said County bonds of like principal amount maturing in the same calendar year; or (b) by paying to
the County in cash the principal amount of any County bonds which are subject to redemption prior to
maturity; plus all interest thereon to the 'first date upon which such bonds may be called for
redemption; and plus all applicable call premiums and bond service charges; and in such event the
County Agency shall call said bonds for redemption at the earliest possible date; provided; however,
that such advance payment and credit therefor shall be limited in amount at any given time to the
amount of bonds available for purchase or redemption by call within the twelve-month period
244
Commissioners Minutes Continued. June 28, 1990
succeeding the date of the advance payment. The installments or parts thereof so prepaid shall be
deemed to be the installments or parts thereof failing due in the same calendar year as the maturity
dates of the bonds surrendered or called for redemption and bonds so surrendered or redeeemed shall
be cancelled,
8. In the event that it shall become necessary to increase the estimated cost of the
-rcject as hereinbefore stated or if the actual cost of the Project shall exceed the estimated cost,
whether as the result of variations or changes permitted to be made in the approved plans or
otherwise, then (without execution of any further contract or amendment of this Contract) the
governing body of the Township may, by resolution adopted within fifteen days after the receipt of
construction bids, direct that a portion of the Project be deleted sufficient to reduce the total
cost to an amount which shall not exceed the total estimated cost as hereinbefore stated by more
than 5%; provided that such deletion shall not materially change or terminate the eligibility of the
Project for federal and/or state grants; or materially change the general scope, overall design and
purpose of the Project. In the absence of the adoption of such resolution the Township shall pay or
procure the payment of the increase or excess in cash; or County bonds in an increased or additional
amount shall (upon adoption of an authorizing resolution therefor by the Board of Commissioners of
the County) be issued to defray such increased or excess cost; to the extent that funds therefor are
not available from other sources; provided; however; that no such increase or excess shall be
approved and no such increased or additional County bonds shall be authorized to be issued, nor
shall the County enter into any contract for acquisition or construction of the Project or any part
thereof or incur any obligation for or pay any item of cost therefor; where the effect thereof would
be to cause the total cost of the Project to exceed by more than 5% its total estimated cost as
hereinbefore stated, unless the governing body of the Township shall have previously adopted a
resolution approving such increase or excess and agreeing that the same (or such part thereof as is
not available from other sources) shall he paid or its payment procured by the Township in cash or
be defrayed by the issuance of increased or additional County bonds in anticipation of increased or
additional payments agreed to be made by the Township to the county in the manner hereinbefore
provided; provided -, further; that the adoption of such resolution by the governing body of the
Township shall not be required prior to or as a condition precedent to the issuance of additional
bonds by the County if the County has previously issued or contracted to sell bonds to pay all or
part of the cost of the Project and the issuance of the additional bonds is necessary (as determined
by the County) to pay such increased, additional or excess costs as are essential to completion of
the Project according to the plans as last approved prior to the time when the previous bonds were
issued or contracted to be sold.
9. In the event that the actual cost of the Project is less than the total estimated
cost -, then any surplus available to the County from the sale of County bonds; at the option of the
governing body of the Township shall be used to improve, enlarge or extend the Systems; to apply
upon future payments due to the County to redeem bonds or to purchase bonds on the open market,
provided that surplus shall he used to improve, enlarge or extend the Systems only if authorized by
the Board of Commissioners of the County. Any such surplus may, for the purpose of improving,
enlarging or extending the systems; be supplemented by cash payments to be made by the Township or
such improvements; enlargements or extensions may be financed entirely from such cash payments;
where authorized by the governing body of the Township. Where any such surplus is used to redeem or
purchase bonds, the same shall be cancelled, and the payments thereafter required to be made by the
Township to the County shall be reduced so as to reflect the resulting saving of interest and the
payment required to be made in the calendar year of the stated maturity of said bonds shall be
reduced by the principal amount thereof.
10. Should the Township fail for any reason to pay the County at the times specified; the
amounts herein required to be paid, such Township does hereby authorize the State Treasurer or
other official charged with the disbursement of unrestricted state funds returnable to such Township
pursuant to the Michigan Constitution to withhold sufficient funds to make up any default or
deficiency in funds. If the full faith and credit of the County is pledged for the prompt payment
of the principal of and interest on the bonds to be issued by the County and if the County is
required to advance any money by reason of such pledge on account of the delinquency of such
Township the County Treasurer is hereby authorized to notify the State Treasurer to deduct the
amount of money so advanced by the County from any unrestricted moneys in the State Treasurer's
possession belonging to such Township and to pay such amount to the County.
The foregoing shall not operate to limit the County's right to pursue any other legal
remedies for the reimbursement of moneys advanced on account of the default of such Township.
Il, The Township, pursuant to the authorization of Section 5a of Act No. 342; hereby
pledges its full faith and credit for the prompt and timely payment of Its obligations expressed in
this Contract and each year shall levy a tax in an amount which; taking into consideration estimated
delinquencies in tax collections; will be sufficient to pay its obligations under this Contract
becoming due before the time of the following year's tax collections; provided; however; that if at
the time of making its annual tax levy; the Township shall have on hand in cash other funds
(including but not limited to funds from special assessments; user charges or connection fees) which
have been set aside and pledged or are otherwise available for the payment of such contractual
obligations falling due prior to the time of the next tax collection, then the annual tax levy may
be reduced by such amount. The ability of the Township to levy taxes is subject to constitutional;
statutory and charter limitations. The governing body of the Township shall each year; at least 90
days prior to the final date provided by law for the making of the annual tax levy of the Township;
Commissioners Minutes Continued. June 28, 1990 245
submit to the County Agency a written statement setting forth the amount of its obligations to the
County which become due and payable under this Contract prior to the time of the next following
year's tax collections, the amount of the funds which the Township has or will have on hand or to
its credit in the hands of the County which have been set aside and pledged for payment of said
obligations to the County, and the amount of the taxes of the Municipality next proposed to be
levied for the purpose of raising money to meet such obligations. The County Agency shall review
such statement promptly and, if he finds that the proposed tax levy is insufficient, he shall so
notify the governing body of the Township and the Township hereby covenants and agrees that it will
thereupon increase its levy to such extent as may be required by the County Acency.
12. No change in the jurisdiction over any territory in the Township shall in any manner
impair the obligations of this Contract or affect the obligations of the Township hereunder. In the
event that all or any part of the territory of the Township is incorporated as a new city or village
or is annexed to or becomes a part of the territory of another municipality', the municipality into
which such territory is incorporated or to which such territory is annexed shall assume the proper
proportionate share of the contractual obligations (including the pledge of full faith and credit)
of the Township, which proper proportionate share shall be fixed and determined by the County Agency
and shall be binding upon all parties concerned unless; within sixty (60) days after such
incorporation or annexation becomes effective, the governing body of the municipality into which
such territory is incorporated or to which such territory is annexed and the governing body of the
Township shall by mutual agreement and with the written approval of the County Agency fix and
determine such proper proportionate share. The County Agency shall; prior to making such
determination, receive a written recommendation as to the proper proportionate share from a
committee composed of one representative designated by the governing body of the Township one
designated by the governing body of the new municipality or the municipality annexing such territory
and one independent registered engineer appointed by the County Agency. Each governmental unit
shall appoint its representative within fifteen (15) days after being notified to do so by the
County Agency and within a like time the County Agency shall appoint the engineer third member. If
any such representative (other than the appointee of the County Agency) is not appointed within the
time above provided, then the County Agency may proceed without said recommendation. If the
committee shall not make the recommendation within forty-five (45) days after its appointment or
within any extension thereof by the County Agency; then the County Agency may proceed without such
recommendation.
13. This Contract is contingent upon the County issuing its negotiable bonds; as herein
provided, to defray such part of. the total estimated cost of the Project as is necessary to be
financed; which bonds shall be issued under the authorization provided in Section 5a, 5b and 5c of
Act 342. Interest on the bonds may be capitalized and paid from the bond proceeds for a period not
exceeding the estimated construction period and one year thereafter. In the event that the bonds
are not issued within three years from the date of this Contract; then unless extended by mutual
agreement; it shall become null and void, except that the Township shall pay all engineering, legal
and other costs and expenses therefore incurred and shall be entitled to all plans, specifications
and other engineering data and materials.
14. Upon completion of the Project the County and the Township hereby agree that the
operation and maintenance of all of the facilities of the Systems shall be carried on and continued
in the same fashion and manner as integral parts of the Systems as are now in existence and in
effect pursuant to the Intermunicipal Agreement; the Evergreen Agreement and the Farmington
Agreement; with costs thereof billed, collected and paid as at present.
If a grant; advance or payment becomes available from the state or federal governments or
any other source; the Township hereby agrees to adopt such resolutions or ordinances as may be
required by state or federal laws, regulations or orders to make the County and the Project and the
System eligible to accept and receive the grant; advance or payment; and if the terms of the grant;
advance or payment require a local contribution; the Township hereby agrees to raise and make such
local contribution.
It is anticipated between the parties hereto that the Project to be built shall qualify
for a federal grant in accordance with 40 Code of Federal Regulations; Part 35.2108. For purposes
of financing the Project; it is anticipated that the Project shall be eligible for federal grants as
noted on Exhibit B. The applicant; Oakland County; in accordance with the requirements of said
35.2108; agrees to complete the Project regardless of whether or not grant funding is available for
the Project; in accordance with the requirements of said 35.2108.
15. The County shall have no obligation or responsibility for providing sewers or sewage
disposal facilities except as herein expressly provided with respect to the acquisition of the
Project or as otherwise provided by contract. The Township shall have the authority and the
responsibility to provide such other facilities and shall have the right to expand the facilities of
the Systems by constructing or extending sewers or related facilities; connecting the same to the
Systems; and otherwise improving the Systems. It is expressly agreed; nevertheless; that no such
connection (other than individual unit tap-ins) shall be made to the Systems and no improvements;
enlargements or extensions thereof shall be made without first securing a permit therefor from the
County. Any such permit may be made conditional upon inspection and approval of new construction by
the County. It is further agreed that the Systems shall be used for collection and conveyance of
sanitary sewage only and that the Township shall take all necessary action to prevent entry into
the Systems of storm waters and also to prevent entry of sewage or wastes of such a character as to
Commissioners Minutes Continued. June 28, 1990
be injurious to the Systems or to the public health and safety.
16. All powers; duties and functions vested by this Contract in the County shall be
exercised and performed by the County Agency, for and on behalf of the County, unless otherwise
provided by law or in this Contract.
17. The parties hereto recognize that the holders from time to time of the bonds to be
:ssued by the County under the provisions of Act 342; and secured by the full faith and credit
pledge of the Township to the making of its payments as set forth in this Contract, will have
contractual rights in this Contract, and it is therefore covenanted and agreed that so long as any
of said bonds shall remain outstanding and unpaid, the provisions of this Contract shall not be
subject to any alteration or revision which would in any manner adversely affect either the security
of the bonds or the prompt payment of principal or interest thereon.
The right to make changes in this Contract; by amendment, supplemental contracts or
otherwise, is nevertheless reserved insofar as the same do not have such adverse effect. The
parties hereto further covenant and agree that they each will comply with their respective duties
and obligations under the terms of this Contract promptly, at the times and in the manner herein set
forth; and will not suffer to be done any act which would in any way impair the contract of said
bonds; the security therefor, or the prompt payment of principal and interest thereon. It is hereby
declared that the terms of this Contract and of any amendatory or supplemental contract and any
contract entered into pursuant hereto; insofar as they pertain to said bonds or to the payment or
the security thereof, shall be deemed to be for the benefit of the holders of said bonds.
18. The County Agency shall prepare; with the aid of its consultants, such covenants,
representations and warranties and have adopted by officials of the County and the Municipalities
such procedures for construction, accounting, payment and operating as are necessary to comply with
the requirements of State and federal law in order to create and maintain the obligations of the
Township and the County under this Contract and with respect to the bonds as vaid and binding
obligations and in order to create and maintain the bonds as tax-exempt obligations under State and
federal income tax law. Such covenants, representations and warranties and such procedures shall be
evidenced by and set forth in certificates or resolutions prepared for the county Agency which the
Township and the County all hereby agree to approve; execute and adopt at or prior to issuance and
delivery pf any bonds.
19. In the event that any one or more of the provisions of this Contract shall for any
reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality
or unenforceability shall not affect any other provisions hereof, but this Contract shall be
construed as if such invalid, illegal or unenforceable provision has never been contained herein.
20. This Contract shall become effective upon its execution by each party hereto and the
expiration of 45 days after the date of publication of the notices required by Section 5b of Act
342; provided, however, that if, within the 45-day period, a proper petition is filed with the Clerk
of the Township in accordance with the provisions of said Section 5b of Act 342 then this Contract
shall not become effective until approved by the vote of a majority of the electors of the Township
qualified to vote and voting thereon at a general or special election. This Contract shall
terminate forty (40) years from the date hereof or on such earlier date as shall be mutually agreed;
provided, however; that it shall not be terminated at any time prior to the payment in full of the
principal of and interest on the County bonds together with all bond service charges pertaining to
said bonds. This Contract may be executed in several counterparts. The provisions of this Contract
shall inure to the benefit of and be binding upon the successors and assigns of the parties hereto.
IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed and
delivered by the undersigned, being duly authorized by the respective governing bodies of such
parties; all as of the day and year above written.
TOWNSHIP OF WEST BLOOMFIELD COUNTY OF OAKLAND
By: By:
Supervisor -County Drain Commissioner
(County Agency)
And:
Township Clerk
Mr. Chairperson; on behalf of the Planning and Building Committee; I move adoption of the
foregoing resolution.
PLANNING AND BUILDING COMMITTEE
Larry P. Crake, Chairperson
Moved by Crake supported by Caddell the resolution be adopted.
AYES: Crake, Gosling; Huntoon, Jensen, Johnson, R. Kuhn; Law; McConnell, McCulloch,
McPherson; Moffitt, Oaks, Olsen, Pappageorge, Pernick, Price; Rewold, Skarritt; Aaron; Bishop,
Caddell; Chester. (22)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
Commissioners Minutes Continued, June 28, 1990 247
Misc. 90159
By Planning and Building Committee
IN RE: Drain Commissioner - RESOLUTION TO APPROVE AMENDMENT NO, 1 TO EVERGREEN-FARMINGTON SEWAGE
DISPOSAL SYSTEM--POLLUTION CONTROL FACILITIES--AMY RELIEF SEWERS CONTRACT
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS the City of Auburn Hills; the City of Bloomfield Hills and the Township of
Bloomfield (hereinafter collectively referred to as the "Municipalities" and individually a
'Municipality") have contracted with the County of Oakland (the "County") for further sanitary
sewage disposal improvements and facilities (the "Project"); which are shown on Exhibit A to the
Evergreen-Farmington Sewage Disposal System--Pollution Control Facilities—Amy Relief Sewers
Contract; dated as of September 1; 1987 (the "Contract") in order further to abate pollution of the
waters of the Municipalities and thus to promote the health and welfare of the residents thereof;
which improvements and facilities would likewise benefit the County and its residents; and are to be
provided and financed by the County through the exercise of the powers conferred by Act 342; Public
Acts of Michigan, 1939; as amended ("Act 342"), and especially Sections 5a; 5b and 5c thereof; and
WHEREAS by the terms of the contract for the acquisition; construction and financing of
the Project to improve the Evergreen-Farmington Sewage Disposal System (the 'System") and to serve
the Evergreen-Farmington Sewage Disposal District (the "District"), the cost thereof is to be paid
by the Municipalities; in installments of principal; with interest, and the County will then issue
its bonds to provide the funds necessary for acquisition and construction thereof; and
WHEREAS there has been submitted to the Board of Commissioners amendments to the Contract
set forth in Amendment No. 1 to said Contract which change the scope of the Project as set forth on
Exhibit A to the Contract and the estimate of cost thereof as set forth on Exhibit B to the Contract
and the apportionment of said cost as set forth on Exhibit C to the Contract and eliminate Exhibit D
to the Contract and make other changes in the Contract; including the use of surplus funds belonging
to the Township of Bloomfield; and
WHEREAS the said Amendment No. 1 to the contract has been approved by the Municipalities,
subject to the expiration of the 45 day referendum period required by Act 342; and upon approval by
the County and the receipt of construction bids by the County Agency named in the Contract; the
County may then issue its bonds to finance the Project; and
WHEREAS this Board of Commissioners desires to approve Amendment No. 1 and to proceed with
the Project in the System and to acquire; construct and finance the Project as provided in said
Contract as amended by said Amendment No. 1.
THEREFORE; BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF OAKLAND COUNTY; MICHIGAN; as
follows:
I. PLANS AND SPECIFICATIONS - ESTIMATES OF PERIOD OF USEFULNESS AND COST. The revised
plans and specifications for the Project and the revised estimate of $4;405;000 as the cost thereof
and of 40 years and upwards as the period of usefulness thereof; as submitted to this Board of
Commissioners, be and the same are hereby approved and adopted.
2. APPROVAL OF AMENDMENT NO. 1 TO CONTRACT. The Amendment No. 1 to Evergreen-Farmington
Sewage Disposal System—Pollution Control Facilities --Amy Relief Sewers Contract, dated as of July
1, 1989; between the County, by and through the County Drain Commissioner, party of the first part;
and the Municipalities, parties of the second part, which Amendment No. 1 to Contract has been
submitted to this Board of Commissioners, be and the same is hereby approved and adopted and the
County Drain Commissioner is hereby authorized and directed to execute and deliver the same for and
on behalf of the county; in as many counterparts as may be deemed advisable; after the Amendment No.
1 to Contract has been executed by the appropriate officials of the Municipalities. The Amendment
No. 1 to Contract reads as follows:
AMENDMENT NO. 1 TO EVERGREEN-FARMINGTON SEWAGE DISPOSAL SYSTEM--
POLLUTION CONTROL FACILITIES--AMY RELIEF SEWERS CONTRACT
THIS AMENDMENT NO. 1 TO CONTRACT; made and entered into as of the first day of July; 1989
(this "Contract"); and between the COUNTY OF OAKLAND; a county corporation in the State of Michigan
(hereinafter sometimes referred to as the "County"); by and through its Drain Commissioner, County
Agency; party of the first part; and the CITY OF AUBURN HILLS; the CITY OF BLOOMFIELD HILLS and the
TOWNSHIP OF BLOOMFIELD; municipal and township corporations located in the County (hereinafter
sometimes collectively referred to as the "Municipalities" and individually a "Municipality");
parties of the second part.
WITNESSETH:
WHEREAS pursuant to Act No. 342, Public Acts of Michigan, 1939, as amended (hereinafter
sometimes referred to as "Act 342"), the Board of Commissioners of the County has heretofore, by
majority vote of its members-elect, authorized and directed that there be established a County
system of sewage disposal improvements and services to serve the Municipalities said system to be
known as the "Evergreen-Farmington Sewage Disposal System" (hereinafter sometimes referred to as the
"System") to serve the Evergreen-Farmington Sewage Disposal District (the "District"), and has
designated the Oakland County Drain Commissioner as the County Agency for the System with all powers
and duties with respect thereto as are provided by Act 342 (said ,Drain Commissioner being
hereinafter sometimes referred to as the "County Agency"); and
WHEREAS under and subject to the terms of Act 342; the County has authorized the County
GLiti
Commissioners Minutes Continued, June 28, 1990
Agency to acquire and construct sanitary sewage disposal improvements and facilities as parts of the
System (hereinafter described as the "Project"), and the County and the Municipalities have hereto-
fore entered into a contract, as hereinafter described, for the acquisition and construction of the
Project by the County and for financing all or part of the cost thereof by the issuance of bonds by
the County secured by the pledge of the full faith and credit of the Municipalities to pay such cost
Arith interest to the County in installments extending over a period not exceeding forty (40) years;
WHEREAS as of September 1, 1987, the Evergreen-Farmington Sewage Disposal System-Pollution
Control Facilities-Amy Relief Sewers Contract (the "Contract") was executed and delivered; and
WHEREAS revised plans for the Project as part of the System and also revised estimates of
the cost of the Project and the period of usefulness thereof have been prepared by Hubbell, Roth &
Clark, Inc, (hereinafter sometimes referred to as the Consulting Engineers) and revised
apportionments of the costs of the Project have been prepared by the County Agency along with other
changes to the Contract, all of which are set forth in this Amendment No. 1 to Contract; and
WHEREAS in order to continue with the acquisition and construction of the Project by the
County and the financing of the cost thereof by the issuance of County bonds, and for other related
matters it is necessary for the parties hereto to enter into this Amendment No. 1 to Contract.
THEREFORE, IN CONSIDERATION OF THE PREMISES AND THE COVENANTS OF EACH OTHER, THE PARTIES
HERETO AGREE AS FOLLOWS:
I. Paragraph (2) of the Contract is hereby amended to read as follows:
(2) The Project shall consist of enlargements, additions and improvements to the
existing sewage treatment facilities and sanitary sewers and related facilities of the System as
shown on Exhibit A (Revised) which is attached hereto and which is hereby made a part hereof; and as
are more particularly set forth in the revised plans which have been prepared and submitted by the
Consulting Engineers which plans are on file with the County Agency and are hereby approved and
adopted. The Project shall be acquired and constructed and substantially in accordance with the
revised plans and in accordance with final plans and specifications to be prepared and submitted by
the Consulting Engineers, but variations therefrom which do not materially change the location,
capacity or overall design of the Project or of the System, and which do not require an increase in
the total estimated cost of the Project, may be permitted on the authority of the County Agency.
Other variations or changes may be made if approved by the County Agency and by resolution of the
governing body of each Municipality and if provisions required by paragraph (8) of the Contract are
made for payment or financing of any resulting increase in the total estimated cost. The revised
estimate of cost of the Project and the estimate of period of usefulness thereof as set forth in
Exhibit B (Revised) are likewise hereby approved and adopted. The reference to Exhibit D to the
Contract in paragraph (2) of the Contract and the Exhibit D are hereby cancelled and eliminated
because the revision of Exhibit A and the revised plans make them unnecessary.
II. Paragraph (3) of the Contract is hereby amended to read as follows:
(3) The County Agency shall take or cause to be taken all actions required or
necessary, in accordance with Act 342; to procure the issuance and sale of bonds by the County, in
one or more series, in whatever aggregate principal amount is necessary to be so financed to defray
that part of the total cost of the Project which is in excess of funds available from other sources.
Such bonds shall be issued in anticipation of, and be payable primarily from,the payments to be
made by the Municipalities to the County in the percentages as provided in Exhibit C (Revised) which
is attached hereto and which is hereby made a part hereof, and shall be secured secondarily, if so
voted by the Board of Commissioners of the County, by the pledge of the full faith and credit of the
County, and the said bonds shall be payable in annual maturities the last of which shall be not more
than forty years from the date thereof. The County and the Township of Bloomfield have provided in
Exhibit C (Revised) for credit to the Township of $330,000 of surplus funds from the project
described as Stage Two and Stage Three of the Evergreen-Farmington Sewage Disposal- System-Bloomfield
Township Trunk Arms, which surplus funds have been transferred by the County to the construction
fund for this project.
III. Paragraph (6) of the Contract is hereby amended to read as follows:
(6) The Municipalities shall pay to the County their respective shares of the total cost
of the Project (less such funds as may become available from other sources), which total cost for
this purpose shall include, in addition to the itmes of the nature set forth in Exhibit B (Revised)
(represented by the principal amount of the bonds to be issued by the County plus such funds as may
become available from other sources); all interest payable by the County on said bonds and all
paying agent fees and other expenses and charges (including the County Agency's administrative
expenses) which are payable on account of said bonds (such fees; expenses, and charges being herein
called "bond service charges"). The cost of the Project is hereby allocated to the Municipalities
in accordance with the percentages set forth in Exhibit C (revised) on which are also shown the
population equivalents projected for each of the Municipalities for use of the several project
sections of the System. Such payments of each Municipality shall be made to the County in annual
installments which shall be due and payable at least thirty days prior to the day of the month
specified in the County bonds as the annual principal maturity date thereof. Such an annual
installment of each Municipality shall be so paid in each year if any principal and/or
non-capitalized interest on said bonds falls due during the twelve-month period beginning on such
principal maturity date in said year; and the amount of each installment of each Municipality so due
and payable shall be at least sufficient; when added to the amount of the installments of the other
Municipalities so due and payable, to pay all such principal and/or interest thus falling due and
Commissioners Minutes Continued. June 28; 1990 249
all bond service charges then due and payable. The County Agency shall; within thirty days after
delivery of the County bonds to the purchaser; furnish the Treasurer of each Municipality with a
complete schedule of the principal and interest maturities thereon; and the County Agency shall
also; at least thirty days before each payment is due to be made by other Municipality, advise the
Treasurer of each Municipality of the amount payable to the County on such date. If a Municipality
fails to make any payment to the County when due -, the same shall be subject to a penalty of 1%
thereof for each month or fraction thereof that such amount remains unpaid after due. Failure of
the County Agency to furnish the schedule or give the notice as above required shall not excuse a
Municipality from the obligation to make payment when due. Such payments shall be made by each
Municipality when due whether or not the Project has then been completed or placed in operation.
In the event that additional County bonds shall be issued under the authority of this Contract to
defray a part of the cost of the Project as part of the System; the foregoing obligations shall
apply to such part of the cost and to said additional bonds insofar as appropriate thereto.
IV. Paragraph (13) of the Contract is hereby amended to read as follows:
(13) This Contract and Amendment No. 1 thereto are contingent upon the County issuing
its negotiable bonds; as herein provided; to defray such part of the total estimated cost of the
Project as is necessary to be financed; which bonds shall be issued under the authorization provided
in Section 5a; Sip and 5c of Act 342. Interest on the bonds may be capitalized and paid from the
bond proceeds for a period not exceeding the estimated construction period and one year thereafter.
In the event that the bonds are not issued within three years from the date of this Amendment No. 1
to Contract; then unless extended by mutual agreement it shall become null and void, except that the
Municipalities shall pay all engineering; legal and other costs and expenses theretofore incurred in
the percentages set forth in Exhibit C (Revised) and shall be entitled to all plans; specifications
and other engineering data and materials.
V. Paragraph (17) of the Contract is hereby amended as follows:
(17) The parties hereto recognize that the holders from time to time of the bonds to
be issued by the County under the provisions of Act 342; and secured by the full faith and credit
pledge of the each of the Municipalities to the making of its payments as set forth in this
Amendment No. 1 and the Contract; will have contractual rights in this Amendment No. 1 and the
Contract; and it is therefore covenanted and agreed that so long as any of said bonds shall remain
outstanding and unpaid; the provisions of this Amendment No. 1 and of the Contract shall not be
subject to any alteration or revision which would in any manner adversely affect either the security
of the bonds or the prompt payment of principal or interest thereon. The right to make changes in
this Amendment No. 1 or in the Contract; by amendment; supplemental contracts or otherwise; is
nevertheless reserved insofar as the same do not have such adverse effect. The parties hereto
further covenant and agree that they each will comply with their respective duties and obligations
under the terms of this Amendment No. 1 and the Contract promptly; at the times and in the manner
herein set forth, and will not suffer to be done any act which would in any way impair the contract
of said bonds; the security therefor, or the prompt payment of principal and interest thereon. It
is hereby declared that the terms of this Amendment No. 1 and of the Contract and of any amendatory
or supplemental contract and any contract entered into pursuant hereto, insofar as they pertain to
said bonds or to the payment or the security thereof; shall be deemed to be for the benefit of the
holders of said bonds. As amended by this Amendment No. 1, all terms and provisions of the Contract
shall be and remain in full force and effect.
VI. Paragraph (19) of the Contract is hereby amended to read as follows:
1. In the event that any one or more of the provisions of this Amendment No. 1 or of
the Contract shall for any reason be held to be invalid; illegal or unenforceable in any respect;
such invalidity, illegality or unenforceability shall not affect any other provisions hereof, but
this Amendment No. 1 and the Contract shall be construed as if such invalid, illegal or
unenforceable provision has never been contained herein.
VII. This Amendment No. 1 to the Contract shall become effective upon its execution by
each party hereto and the expiration of 45 days after the date of publication of the notices
required by Section 5b of Act 342; provided, however, that if, within the 45-day period, a proper
petition is .filed with the Clerk of any Municipality in accordance with the provisions of said
Section 5b of Act 342, then this Amendment No. 1 to the Contract shall not become effective until
approved by the vote of a majority of the electors of such Municipality qualified to vote and voting
thereon at a general or special election. This Amendment No. 1 and the Contract shall terminate
forty (40) years from the date hereof or on such earlier date as shall be mutually agreed; provided;
however, that it shall not be terminated at any time prior to the payment in full of the principal
of and interest on the County bonds together with all bond service charges pertaining to said bonds.
This Amendment No. 1 to the Contract may be executed in several counterparts. The provisions of
this Amendment No. 1 and of the Contract shall inure to the benefit of and be binding upon the
successors and assigns of the parties hereto.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to the Contract to
be executed and delivered by the undersigned, being duly authorized by the respective governing
bodies of such parties, all as of the day and year first above written.
CITY OF AUBURN HILLS COUNTY OF OAKLAND
By: By:
Mayor County Drain Commissioner
And: (County Agency)
City Clerk
zbu
Commissioners Minutes Continued, June 28, 1990
CITY OF BLOOMFIELD HILLS
By:
Mayor
And:
City Clerk
TOWNSHIP OF BLOOMFIELD
By:
Supervisor
And:
Township Clerk
Mr. Chairperson; on behalf of the Planning and Building Committee, I move adoption of the
foregoing resolution.
PLANNING AND BUILDING COMMITTEE
Larry P. Crake, Chairperson
Moved by Crake supported by Aaron the resolution be adopted,
AYES: Gosling, Huntoon, Jensen, Johnson; R. Kuhn, Law, McConnell, McCulloch
Moffitt; Oaks, Olsen, Pappageorge, Pernick, Rewold, Skarritt, Wolf, Aaron, Bishop; Cackle
Crake. (22)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
cPherson,
Chester,
Misc, 90160
By Public Services Committee
IN RE: Community & Economic Development Department - COMMUNITY DEVELOPMENT DIVISION - SHELTER
CONTRACTS WITH SOUTH OAKLAND SHELTER (SOS), BALDWIN AVENUE HUMAN SERVICES CENTER; HELP AGAINST
VIOLENT ENCOUNTERS NOW (HAVEN), AND PONTIAC AREA TRANSITIONAL HOUSING (PATH)
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS homelessness is a serious and growing national, state, and local problem; and
WHEREAS the Congress of the United States; recognizing this problem; has passed both the
Stewart B. McKinney Homeless Assistance Act (Public Law 100-77 approved July 22, 1987) and the
Stewart B. McKinney Homeless Assistance Amendments Act of 1988 (Public Law 100-628, approved
November 7, 1988); and
WHEREAS the U.S. Department of Housing and Urban Development awarded Oakland County an
$83;000 Emergency Shelter Grant Program formula allocation for the 1990 Program year on March 7,
1990, to be allocated within 180 days of receipt; and
WHEREAS the receipt of ESG Program funds allows the County to contract with subrecipients
to provide overnight shelter, shelter furnishings, food, emergency medical services, transportation
to overnight shelters, homeless prevention activities, and similar services to the homeless; and
WHEREAS FOUR SHELTERS IN Oakland County: South Oakland Shelter (SOS); Baldwin Avenue Human
Services Center, Help Against Violent Encounters Now (HAVEN), and Pontiac Area Transitional Housing
(PATH)., have applied for 1990 Emergency Shelter Grant funds; and
WHEREAS each of these shelters have a demonstrated need for funding; and
WHEREAS the county wishes to enter into contracts with each of these four shelters to
provide them with 1990 Emergency Shelter Grant funds in the following amounts: SOS ($53,000),
Baldwin ($10,000), HAVEN ($10,000), and PATH ($10,000) (see attached contracts1', and
WHEREAS the Oakland County Community Development Citizens Advisory Council has unanimously
approved the above funding amounts by a roll call vote of 9-0; and
WHEREAS the contracts have been approved by the Office of Corporation Counsel.
NOW THEREFORE BE IT RESOLVED that the Chairperson of the Oakland County Board of
Commissioners be authorized to execute the attached agreement with South Oakland Shelter, Baldwin
Avenue Human Services Center; HAVEN, and PATH for the combined sum of $83,000.
Mr. Chairperson; on behalf of the Public Services Committee; I move the adoption of the
foregoing resolution.
PUBLIC SERVICES COMMITTEE
Richard D. Kuhn; Jr.; Chairperson
Copy of Contracts on file in County Clerk's Office.
Moved by Richard Kuhn supported by Johnson the resolution be adopted.
AYES: Huntoon, Jensen, Johnson, R. Kuhn, Law, McConnell, McCulloch; McPherson; Moffitt,
Oaks, Olsen; Pappageorge; Pernick; RewoId; Skarritt; Wolf; Aaron; Bishop; Caddell, Crake, Gosling.
(21)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
Commissioners Minutes Continued. June 28, 1990 251
Misc. 90161
By Public Services Committee
IN RE: Public Service Department - EMPLOYMENT AND TRAINING DIVISION BUDGET PROGRAM YEAR 1990
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS notice of allocation of Job Training Partnership Act (JTPA) funds has been
received from the Michigan Department of Labor for Program period and funding sources as outlined in
Attachment A; and
WHEREAS the funding sources as shown in Attachment A for the total amount of $6,016,711
serve as an estimate of Program Year 1990 JTPA fund availability, subject to finalization of
carry-forward funds from the previous year; and
WHEREAS the JIPA is totally supported through federal funds and requires no financial
match support from the Oakland County General Fund: and
WHEREAS Article V of the Balance of Oakland County Private Industry Council's By-Laws
delegates to the Council's Executive Committee authority to manage; direct and control the
operational affairs of the Council; and
WHEREAS the Executive Committee of the Balance of Oakland County Private industry Council
is scheduled to review the Employment and Training Division Administrative Budget for Program Year
1990; as shown in Attachment 8, covering the period July 1; 1990 to June 30, 1991; and
WHEREAS the Program Year 1989 budget included one position that is currently unfunded and
can be deleted; specifically an Employment and Training Technician III (#2597).
NOW THEREFORE BE IT RESOLVED that the Program Year 1990 Employment and Training Division
Budget for the period July 1; 1990 through June 30; 1991 he adopted for the total amount of
$6,016;711 as follows:
1. To establish an Administrative budget of $854,448 for staff salaries; fringe
benefits, and related operating costs.
2. To provide for an appropriation contingency of $5;162;263 for JTPA program
operations.
BE IT FURTHER RESOLVED that an Employment and Training Technician III position (#2597) be
deleted.
BE IT FURTHER RESOLVED that the Employment and Training Division will prepare and present
a written status report to the Public Services Committee on a yearly basis.
Mr. Chairperson; on behalf of the Public Services Committee, I move the adoption of the
foregoing resolution..
PUBLIC SERVICES COMMITTEE
Richard D. Kuhn, Jr., Chairperson
The Chairperson referred the resolution to the Finance Committee. There were no
objections.
Misc. 90162
By General Government Committee
IN RE: HOUSE BILL 5707 (CONDITIONAL SUPPORT) PROVIDES PAYMENT BY THE STATE TO LOCAL UNITS OF
GOVERNMENT FOR POLICE SERVICE PROVIDED TO STATE FACILITIES THEREIN
To the Oakland County Board of Commissioners
Mr. Chairperson; Ladies and Gentlemen:
WHEREAS under Act 289 of the Public Acts of 1977, provision is made for payment by the
State to local units of government for fire protection services received by State facilities
therein; and
WHEREAS House Bill 5707 would amend Act 289 to provide payment to local units of
government for police service as well as fire protection; and
WHEREAS police protection in areas where State facilities are located is every bit as
important as fire protection; and
WHEREAS equalized valuation should not be a factor in determining whether payment should
be made to a municipality for police or fire protection provided to state facilities so House Bill
5707 should be amended to delete language on page 3; lines 16-19 relating to equalized valuation.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners takes a
position supporting House Bill 5707; provided the above suggested amendment is adopted.
BE IT FURTHER RESOLVED that copies of this resolution be sent to all Oakland County
Legislators and the County's Legislative Agent.
Mr. Chairperson, on behalf of the General Government Committee, I move the adoption of the
foregoing resolution.
GENERAL GOVERNMENT COMMITTEE
Richard G. Skarritt; Chairperson
Moved by Skarritt supported by Pernick the resolution be adopted.
A sufficient majority having voted therefor, the resolution was adopted.
252
Commissioners Minutes Continued. June 28, 1990
Report (Misc. 90163)
By Personnel Committee
IN RE: Department of institutional and Human Services - COMMUNITY MENTAL HEALTH - MCKINNEY HOMELESS
ASSISTANCE PROJECT GRANT RENEWAL AND EXPANSION
To the Oakland County Board of Commissioners
Me. Chairperson; Ladies and Gentlemen:
The Personnel Committee, having reviewed the above referenced resolution, reports with the
recommendation that the resolution be adopted; provided the following changes be made:
The second Be It Further Resolved paragraph should read as follows:
BE IT FURTHER RESOLVED that one (1) special revenue Mental Health Clinician
position be created in the Administration unit of Community Mental health',
Fund 27388,'
The following paragraph be added after the last Be It Further Resolved paragraph:
BE IT FURTHER RESOLVED that position continuation be dependent on sufficient
federal funds to fully cover salary and fringe benefit costs."
Mr. Chairperson, on behalf of the Personnel Committee, I move the adoption of the
foregoing report.
PERSONNEL COMMITTEE
John P. Calandro, Chairperson
Misc. 90163
By General Government Committee
IN RE: Department of Institutional and Human Services - COMMUNITY MENTAL HEALTH - MCKINNEY HOMELESS
ASSISTANCE PROJECT GRANT RENEWAL AND EXPANSION
To the Oakland County Beard of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS Federal funding is available through the Michigan Department of Mental Health to
extend the McKinney homeless Assistance Project Grant; and
WHEREAS this grant originally was accepted by Miscellaneous Resolution #88117, adopted May
12; 1988; in the amount of $200,000 and extended by Miscellaneous Resolution #89320, adopted
December 14, 1989, for an additional S35,666 or a total of $236,666; and
WHEREAS the grant is scheduled to expire September 30, 1990; and
WHEREAS an additional $173,332 is available to extend the grant through September 30;
1991; for a total of $409,938 since the grant's implementation; and
WHEREAS the extension includes increased funding to provide for an additional special
revenue Mental Health Clinician; and
WHEREAS a governmental Mental Health Clinician position will be deleted in the Central
Case Management unit to allow transfer of existing staff into the newly created position; and
WHEREAS the extension is funded 100% and requires no County matching dollars; and
WHEREAS the Office of Corporation Counsel has reviewed the grant agreement and approved it
as to legal sufficiency; and
WHEREAS acceptance of this grant does not obligate the County to any future commitment.
NOW THEREFORE BE IT RESOLVED that the Board of Commissioners accepts the Homeless
Assistance Grant extension through September 30, 1991; in the amount of $173,332 for a new total
grant amount of $409,998.
BE IT FURTHER RESOLVED that the Chairperson of the Board of Commissioners is authorized to
execute the grant agreement and to approve amendments to the agreement up to fifteen (15) percent
variance from the original award which are consistent with the agreement as approved.
BE IT FURTHER RESOLVED that one special revenue Mental Health Clinician position be•
created in the Administration Unit of Community Mental Health; Fund 27388, for the period July 1,
1990 through September 30, 1991,
BE IT FURTHER RESOLVED that one governmental Mental Health Clinician in the Central Case
Management Unit be deleted (position #1663505938) effective July 1, 1990.
Mr. Chairperson, on behalf of the General Government Committee; I move the adoption of the
foregoing resolution,
GENERAL GOVERNMENT COMMITTEE
Richard G. Skarritt, Chairperson
Fiscal Note (Misc. 90163)
By Finance Committee
IN RE: Department of Institutional and Human Services - COMMUNITY MENTAL HEALTH - MCKINNEY HOMELESS
ASSISTANCE PROJECT GRANT RENEWAL AND EXPANSION
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
Pursuant to Rule XI-G of this Board, the Finance Committee has reviewed Miscellaneous
Resolution #90163 and finds:
1) The McKinney Homeless Assistance Project Grant has received a proposed extension
through September 30, 1991 with an additional $173,332 added to the current award for a total award
of $409,998 over 39 months.
2) The 1990 revenue and expense budget for this grant equals $174,491 (based on estimated
calendar year performance). This expansion award amends the 1990 revenue and expense budget for
this grant (#27388) by a $235,507 increase as detailed on Schedule A.
Commissioners Minutes Continued. June 28, 1990 253
3) The 1991 revenue and expense budget for this grant equals (178076 (based on estimated
calendar year performance). This expansion award amends the 1991 revenue and expense budget for
this grant (#27388) by a $231,922 increase as detailed on Schedule A.
4) Grant funds cover one (1) additional special revenue Mental Health Clinician position
to conduct the grant; this position requires the approval of the Personnel Committee,
5) One (1) governmental funded Mental Health Clinician position (#1663505938) is to be
deleted effective July 1; 1990 to allow for the transfer of existing staff to the newly created
position, reducing the CMH salary and fringe benefit budget by $20441 in 1990 and $.44,019 in 1991.
6) The salary and fringe benefit savings are recommended for transfer to Pontiac General
Hospital - Client Services line item in order to continue existing services; resulting in the
following governmental fund budget amendment:
1990 1991
4-22200-166-35 -00-1001 Salaries $(-15,097) $(30,195)
4-22200-166-01 -00-1099 Salary Adjustment (1,359)
4-22200-166-35 -00-2070 Fringe Benefits (6,311) (12;622)
4-22200-166-01 -00-2099 Fringe Adjustment (408)
4-22200-166 -01 -00-6735 Insurance 567 565
4-22200-166-88-00-3042 Pontiac General Hospital 20;441 44;019
$ -0 $ -0-
FINANCE COMMITTEE
C. William Caddell; Chairperson
Moved by Skarritt supported by Law the resolution be adopted.
Moved by Law supported by McCulloch the resolution be amended as follows:
In the second BE IT FURTHER RESOLVED paragraph delete "for the period July 1; 1990 through
September 30, 1991. Also, delete the third BE IT FURTHER RESOLVED paragraph that reads: "BE IT
FURTHER RESOLVED that position continuation be dependent on sufficient federal funds to fully cover
salary and fringe benefit costs."
A sufficient majority having voted therefor, the amendment carried.
Vote on resolution as amended:
A sufficient majority having voted therefor, the resolution, as amended;.was adopted.
Misc. 96164
By Commissioner Thomas A. Law
IN RE: BOARD RULES AMENDMENT - RE: PURCHASE OF PROPERTY
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS Oakland County Board of Commissioners' Rule X., E.; details the procedures for the
sale of County property which safeguards the public's interest by establishing a policy that ensures
that land will not be sold at less than appraised value; and
WHEREAS there is not presently a written procedure which would likewise protect the public
interest in the County's purchase of property.
NOW THEREFORE BE IT RESOLVED that the Rule X.; E.; be amended as follows: (new language
underlined)
2. All new construction and all alterations of existing structures beyond what would
normally fall in the category of maintenance, and all leasing and purchasing of prbperty shall be
under the general jurisdiction of the Planning and Building Committee. . . .
4. The procedure for the purchasing of property shall be as follows.
a. No formal negotiations for the purchase of any property shall be undertaken,
until such time 'as the Planning and Building Committee has authorized
such negotiations.
b. Tor property purchases under $100,000, the Planning & Building
Committee may rely on the Appraisal staff of the County Equalization
Division for the establishment of fair market price,
c. For property purchases over $100,000, the County Executive with the
concurrence of the Planning & Building Committee shall employ two
real estate appraisers; one of whom shall be approved by tne American
Institute of Real Property Appraisers, or Senior member of the Society
of Residential Appraisers who shall appraise the property under con-
sideration and submit a written report regarding their appraisal findings.
d. No Offer to Purchase may be made prior to the receipt of the
necessary appraisals and no Offers to Purchase shall be made in an
amount more than the highest appraised price; except by a 2/3 vote of the Board of
Commissioners
e. Parcels purchased for water and sewer easements will require only
one appraisal.
254
Commissioners Minutes Continued. June 28, 1990
Mr. Chairperson, I move the adoption of the foregoing resolution.
Thomas A. Law, Commissioner District #26
The Chairperson referred the resolution to the General Government Committee. There were
eo objections.
Commissioner David Moffitt offered the following amendment to Resolution #90164, presented
by Commissioner Law:
NOW THEREFORE BE IT RESOLVED that Rule X.; E.; be further amended as follows:
f. BE IT FURTHER RESOLVED that written environmental assessment by qualified
professionals of real property proposed for purchase in fee or proposed for permanent improvement;
excepting rights of way; and sewer, water, drainage or utility easements; shall be obtained prior to
making any offer to purchase; provided, however; that this requirement may be waived by a majority
vote of the Planning and Building Committee.
The Chairperson referred the amendment to Resolution 90164 offered by Commissioner Moffitt
to the General Government Committee. There were no objections.
Misc. 90165
By Commissioners Price, McConnell and Ferrens
IN RE: RESIDENTIAL COMMUNITY DEVELOPMENT CORPORATION OVERSIGHT-CONTRACT WITH UNITED WAY OF OAKLAND
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS the condition of housing stock is a reflection of the well-being of a county; and
WHEREAS the maintenance of property values is important to the individual owner and the
governmental jurisdictions that derive revenue based on property values; and
WHEREAS certain communities in the county have housing stock that is aging; and
WHEREAS it has been found that the residential community developments corporations (CDC's)
at the 'neighborhood" level can be effective in rejuvenating areas that are threatened by
deterioration; and
WHEREAS the purpose of the Housing Collaborative Program of the United Way of Oakland
promotes the development of residential CDC's and provides technical support and administrative
oversight to existing CDC's; and
WHEREAS it would be more cost efficient to contract for services from the United Way of
Oakland to promote and strengthen residential CDC's than carry on this activity on its own.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners approves
entering into the attached contract with the United Way of Oakland for the services outlined in that
contract for the sum of $50,543.
BE IT FURTHER RESOLVED that United Way of Oakland report to the Public Services Committee
of the Board of Commissioners in the month of October, 1991 on the following data:
1. The number of residential CDC's in the County by city, village and township.
2. The number of such CDC's under the oversight of the Housing Collaborative Program.
3. The amount of money by source that was expended by CDC's for maintenance;
rehabilitation and other neighborhood improvements during the period of September, 1990 through
August 31; 1991.
4. The actual number of houses that were impacted through those expenditures by type of
expenditure.
5. A projection for the spread of the residential CDC concept for the period of September
1; 1991 through August 31; 1592 and the financial resources that may be available to maintain this
movement.
BE IT FURTHER RESOLVED that the Chairperson of the Oakland County Board of Commissioners
is hereby authorized to sign said contrct.
Mr. Chairperson, we move the adoption of the foregoing resolution.
Hubert Price, Jr. Commissioner Dist. 8 .
James D. Ferrens, Nancy McConnell
Copy of contract on file in County Clerk's Office.
The Chairperson referred the resolution to the Public Services Committee and the Finance .
Committee. There were no objections.
Misc. 90166
By Commissioner David L. Moffitt
IN RE: DEVELOPMENT OF POLICY FOR CANDIDATE SCREENING AND SELECTION CRITERIA, AND TERM OF APPOINT-
MENT FOR DEPUTY MEDICAL EXAMINERS
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS Public Act 181, of 1953, mandates that the Medical Examiner's Office shall
investigate and have responsibility for determining the manner and cause of death of all sudden;
unexpected, accidental or violent deaths; and
LYNN D. ALLEN
Clerk
ROY REWOLD
Chairperson
Commissioners Minutes Continued. June 28, 1990 255
WHEREAS the Medical Examiner's Office; in addition; must determine the manner and cause of
death of all police prisoners, as well as deaths from abortions; administration of drugs;
therapeutic procedures; anesthetic; and deaths under suspicious circumstances; and those occurring
without medical attention 48 hours preceding death; and
WHEREAS the Medical Examiner's Office staff must also appear and give testimony in both
criminal and civil proceedings; and
WHEREAS over 2,353 cases were handled by the Medical Examiner's Office in 1989, with 580
autopsies and 80 post-mortem examinations conducted; and
WHEREAS Deputy Medical Examiners are chosen by the Oakland County Department of
Institutional and Human Services from amongst volunteer physicians; and are currently screened by
simply determining if they are currently licensed in Michigan and if there are any currently pending
complaints against them; and
WHEREAS there presently exists no formal criterion for qualifications; no procedure for
candidate screening, for appointment of Deputy Medical Examiners, no procedure for appointment; no
definite term of appointment, and no policy regarding continuing education or conflicts of interest.
NOW TAEREFORE BE IT RESOLVED that the Oakland County Department of Institutional and Human
Services develop; prepare and submit proposed formal criteria for qualifications and screening of
candidates for Deputy Medical Examiners; addressing areas of practice and investigatory procedure;
educational standards; licensing qualifications; board certification.
BE IT FURTHER RESOLVED that the Oakland County Department of Institutional and Human
Services establish appropriate policy addressing appointment of Deputy Medical Examiners; term of
appointment; conflicts of interest; and continuing education requirements.
Mr. Chairperson; I move the adoption of the foregoing resolution.
David L. Moffitt; Commissioner Dist. #27
The Chairperson referred the resolution to the General Government Committee and the Public
Services Committee. There were no objections.
Misc. 90167
By Commissioner Hubert Price, Jr.
IN RE: SOCIAL SERVICES - INDIGENT HEALTH CARE COSTS
To the Oakland County Board of Commissioners
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS Oakland County's indigent health care costs have continued to rise over the past
several years with expenditures now reaching more than $4 million; and
WHEREAS while the County's budget appropriation is consistently raised from year to year,
the actual expenditure historically has seriously exceeded the anticipated allocation; and
WHEREAS it is futile to continue to try to reduce indigent health care costs with wishful
budget projections.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby
appoints a five-member ad hoc committee to be comprised of the Director of the Department of Social
Services, Chairperson of the General Government Committee; two members of the Finance Committee
(including one minority party Commissioner) and a designee of the County Executive to analyze
indigent health care costs and recommend cost reduction and control measures which can be
accomplished without lessening medical service delivery and patient care; such recommendation to be
made to the Finance Committee for its consideration in the 1991 budget process.
Mr. Chairperson, I move the adoption of the foregoing resolution.
Hubert Price; Jr.; Commissioner District W8
The Chairperson referred the resolution to the General Government; Finance and Public
Services Committees. There were no objections.
In accordance with Rule XXII, the following referrals were made by the Chairperson:
GENERAL GOVERNMENT
a. Village of Holly - (Oppose) DNR Move from Oakland to Wayne County
b. Iron County Bd. of Comm.- (Oppose) State & Federal Local Tax Deductions
PLANNING AND BUILDING
a. Wayne County Bd. of Comm.-Water Transmission Line Construction
PUBLIC SERVICES
a. .5ept. of Social Services-Children's Village, Licensing Report-Bldgs. H, A -North and
Medical
b. Dept. of Socail Services-Children's Village, Licensing Report-Bldgs. J, and A -South
c. MAC Veterans Division - Officers List
OTHERS
Commissioners
a. Thomas J. Bulger - Washington Report for the Week of dune 11, 1990
The Chairperson stated the next meeting of the Board will be July 19, 1990 at 9:30 A.M.
The Board adjourned at 2:48 P.M.