HomeMy WebLinkAboutOrdinances - 1980.08.01 - 852821 • ORDINANCE NO,
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AN ORDINANCE TO PROVIDE FOR THE
ESTABLISHMENT, OPERATION AND MAIN-
TENANCE OF THE OAKLAND-ORION SEWAGE
SPOSAL SYSTEM TO SERVE AREAS IN THE
OWNSHIP OF ORION AND TOWNSHIP OF
OAKLAND IN SAID COUNTY; TO PROVIDE
OR THE ACQUISITION OF NEW AND THE
CONNECTION TO EXISTING SEWAGE DISPOSAL
FACILITIES AS A PART • OF SAID SYSTEM;
TO PROVIDE FOR THE ISSUANCE AND SALE
OF REVENUE BONDS TO DEFRAY THE COST
THEREOF; TO PROVIDE FOR THE RETIREMENT
AND SECURITY OF SAID BONDS; AND TO
PROVIDE FOR OTHER MATTERS RELATIVE TO
SAID SYSTEM AND SAID BONDS
THE COUNTY OF OAKLAND, IN THE STATE OF MICHIGAN ORDAINS:
Section 1. Whenever used in this ordinance or in the
bonds to be issued hereunder, except when otherwise indicated by
the context:
(a) The term "County" shall be construed to mea7. the
County of Cakland, a political subdivision of the State of
Michigan.
(b) The term 'Board of Commissioners" shall be con
strued to mean the Board of Commissioners of said County of
Oakland, the legislative and governing body thereof.
(c) The term "County Executive" shall be construed to
mean the elected County Executive in the County act ing pursuant to
Act No. 139 of the Public Acts of t1an of lS73, as awunded t
providing for an optional unified form cf governrrent..
(0) The term "Department of Public Works" shall be
cor;st;:ued to mean the departmunt by that name establised by the
County pursuant to said Act No. 139 and responsible to the County
Ext2cutive.
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(e) The term "public corporation" shall be conr,trued to
mean the Township of Orion or the Township of 0e4land in the
County, or combination thereof, in whose 'corporate limits
facilities of the system or areas in the district are located and
which have contracted or will contract with the County with
respect to the use of and payment for the Oakland-Orion System.
Each public corporation will be sometimes described herein as
"Orion" and 'Oakland" respectively.
(f) The term "Contract for Services" shall be construed
to mean the contract to be entered into between the County and
Orion in form substantially as follows;
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OAKLAND-ORION SFaAGE DISPOSAL SYSTEM
CONTRACT FOR SERVICES
This Contract was made and entered into as of the 1st
day of August, 198G, by and between the COUNTY OF OAKLAND, a
Michigan county corporation, acting by and through its County
Executive and Department of Public Works, party of the first part,
(hereinafter 'sometimes referred to as the 'County" and the
"Department of Public Works"), and the TOWNSHIP OF ORION, a
Michigan township corporation located in the County of Oakland
(hereinafter referred to as the "Township"), party of the second
part, all in the State of Michigan.
WHEREAS, the County is presently engaged in carrying out
proceedings pursuant to Act No. 94 of the Michigan Public Acts of
1933, as amended, to finance, construct and operate a sanitary
sewer as an extension of the Paint Creek Interceptor Pherein some-
times called the "Interceptor") in the Clinton-Oakland Sewage Dis-
pose' System (herein sometimes called the "System"), a sewage dis-
posal system established by the County pursuant to Act No. 165 of
the Michigan Public Acts of 1957, as amended, and more recently
extended and enlarged by the County pursuant to Act No. 342 of the
Michigan Public Acts of 1939, as amended; and
WHEREAS, the contracts and egreements among the County
anc the TOW11.51:ip and other units of government in the County
pctrLeining to the Pai.7.t. Creek Interceptor in the Clinton-Oakland
Scwa....De Disposal System permit the County and the Townip to
rlo7:.d4rc scwagc dinpo:-.al facilities z;51 CI;teriSion=7. of eJid
connection.s to said Interceptor and System within the designated
service areas and districts, thereof; and
P
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• WHEREAS, the County by ordinance enacted by its Board of
Comissioners and by resolutions duly adopted, pursuant to the
powers vested in it under the provisions of Act No. 94, Public Acts
of Michigan of 1933, as amended, will establish and finance the
acquisition of the "Oakland-Orion Sewage Disposal System"
(hereinafter referred to as the "Oakland-Orion System") for the
purpose of collecting, transporting and disposing of sanitary
sewage emanating from the areas and in the facilities
substantially as shown on Exhibit "A" hereunto attached and by
this reference made a part hereof; and
WHEREAS, in said ordinance and/or resolutions the County
Executive and the Department of Publio Works under the County
Executive will be appointed the agency of the County to supervise
and coritrol on behalf of the County the construction and financing
of all improvements, facilities and services to be acquired and
provided as part of said Oakland-Orion System, and the County
shall continue the operation and management of the Paint Creek
Interceptor in the Clinton-Oakland Sewage Disposal System for the
transportation to and treatment of sewage by the City of Detroit;
and
WERE/.S, the County will obtain maps plans, designs,
specifications and an estimate of cost for said Oakland-Orion
System (herein sometimes referred to as the "project") to be
prepared by Johnson & Anderson, Inc., consulting engineers of
Poetiac, Michigan, (hereinafter sometimes referred to as the
"Consulting Engineers"), which estimate of cost is set forth
herein as Exhibit "B" attached hereto and by this reference made a
part hereof; and
WHEREAS, under the provisions of Act 94, Public Acts of
michigan of 1933, as amended, and as authorized by Act No. 129 of
the Public Acts of Michigan of 1943, as emended; Act Nc. 35 of the
Public Acts of Michigan of 1951, as amended; and Act No. 7 of the
Public Acts of Michigan of 1967 (Extra .Session), the aforesaid
Township is authorized to contract as a customer and wholesale
user of the Oakland-Orion System for the payment by the Township
to the CoUnty for the services provided by the Oakland-Orion
System, including the cost of construction and maintenance of said
project and of anyother improvements and facilities to. be
acquired by said Oakland-Orion System, from funds collected as
rates and charges from the users and beneficiaries of said
Oakland-Orion System; and
WHEREAS, for the purpose of the public health, safety
and welfare of the residents of the said Township and for the
general health, safety and welfare of the County of Oakland, there
exists an imperative need for the sewage disposal facilities
herein described to collect and transport and to treat and dispose
of sanitary sewage emanating from the areas in the Township shown
on Exhibit "A"; and
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of 1933,
WHEREAS, pursuant to Act No. 94, Public Acts of Michigan
as amended, the County is authorized and intends to issue .
self-lisuidating revenue bonds for the purpose of obtaining money
to acquire said sewage disposal facilities of and for the Oakland-
Orion System and any other necessary improvements and facilities
to be acTaired by said Oakland-Orion System which bonds, both the
principal the:eof and the intleroF.t tnc!reon, w 1. be prid by the
County solely out of the payments as aforesaid, to he received
from the Towr::-Jhip as a customer and wholcsule user which Payments
the Township olirjates; itaelf to ma e as a general fund limited
as a cLsLolner ahd wl.olcle user of the 0,-..7,an ,z1-
C:ICA Syten:
WHEREAS, a part of facilities of the Oaklane-Orion
System an a part of the area to be served thereby, all as shown on
Exhibit "A" hereto attached, will be located in the Township of
Oakland, a Michigan township corporation also located in the
County and also a participant in the Paint Creek Interceptor and
the Clinton-Oakland Sewage Disposal System, and it is necessary
and desirable to provide herein for the use of said facilities by
residents and property owners in said Township of Oakland.
NOW THEREFORE in consideration of the premises and the
covenants of each, the parties hereto agree as follows:
1. The County and the Township approve and confirm the
acguisition of said sewage disposal facilities of and for the
Oakland-Orion System and any other improvements and extensions of
the Interceptor and System, as set forth in the preambles to this
contract, and agree that the same shall be acquired and
constructed in the manner provided by and pursuant to this
contract and the maps, plans, designs and specifications therefor.
The County and the Township further hereby approve and adopt the
mans, for the project prepared by the Consulting Engineers and the
estimated cost of construction thereof, as described in the
preamble hereto, which said maps and estimate are filed with the
Oakland Couni:y Board of Commissioners as attachments to this
Contract. The Township hereby expressly agrees to and permits, by
the approval and execution of this Contract, the use of all
streets, alleys, public places and public rightsof-way required
for rhe lo=ation, construction and maintenance of the facilities
ut the Oaldand-Orion System substantially as 51:own on the maps,
plan5 and Oesigns therefor, incloains such temporary use thereof
as r-ny he rea sonably necessary or d2sirable for the construction
activities, ',Mich permit shall endure for the useful life of tho
saic:
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2. The County agrees to collect sewage emanating in the
areas of the Oakland-Orion System as shown on Exhibit "A" and to
deliver it for sewage treatment by means ot the Paint Creek
Interceptor, and. the Clinton-Oakland Sewage Disposal System to the
City of Detroit, within the heretofore esta blished capacity
limitations for the Paint Creek Interceptor.
3. After execution of this contract by the Township the
County Executive and Department of Public works shall tahe the
following steps:
a. File the maps, plans, designs and specifications
for the project as obtained from the Consulting
Engineer with the Oakland County Board of
Commissioners.
b. Submit to the said Board of Commissioners
an ordinance providing for the issuance of
revenue bonds in the aggregate principal
amount of $ 4,85,000 (being the present
estimated cost Of the project) maturing
serially as authorized by law, over a
period of approximately thirty (30) years,
the principal of which bonds and the interest
thereon will be payable solely from the
revenues paid the County by the Township as
customer and wholesale user of sewage disposal
services established and in effect, from tine
to time, pursuant to this contract and the
said crCinance i respect to such bonds, and
providing which bonds shell have such provilons for
refle;:iption prior to maturity and oLhcr
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features, permitted by applicable law, as shell
be determined in said ordinance. The aggregate
principal amount of the bonds to he issued
will be increased or decreased, as the case
may be, because of revisions in the estimated
cost of the project, or will be decreased if
other funds become available to defray part
of the cost of said project.
o. After the Board of Commissioners of Oakland
County has adopted the bond ordinance, the
County Executive and Department of Public Works
will take all necessary procedures to obtain
from the Municipal Finance Commission of the
State of Michigan the approval necessary to the
issuance and sale of the bonds, to obtain
construction bids. for the project, and to.entei
into construction contracts, subject to •
the sale of bonds, with the lowest responsible
bidders, and to sell and deliver the bonds
In the manner authorized by law,
d. Complete the project and operate and
maintain the sewage disposal facilites
of the Paint Creek Interceptor and of the
Clinton-Oakland Sewage Disposal System for
transportation and treatment of sewage
collected in the Oakland-Orion System and
render services herein described to the
County and the Town:>hip for the term of
this Contract.
t.::rm "cost" as rzed herein shll be construed to include the
co!,:.t of all physical structures, the acquisition of all lands,
hy thi:; cont_raoL to !;(-rv(: itny ;irLd of the 0.:4111,:...hd-Dron
lehor and materials necessary to acquire and construct Oe'vaand-
Ce.ion System, plant, engineering and legal fees, administration
and inspection e%penses, capitalized interest during the period of
construction, financing coets, a reasonable amount for
construction contingencies and for reserves, and any other costs
incident to the acquisition and financing of the project.
. 4. It is understood and agreed by the parties hereto
that the Oakland-Orion System is to serve the designated area in
the Township and through the Township to serve its residents and
citizens as individual customers and users. The portions of the
Oakland-Orion System located in the Township of Oakland shall be
available to serve through that Township its individual customers
and users in the designated service area. When customers and
users in the Township of Oakland are connected through that
Township to the facilities of the Oakland-Orion System, the County
shall collect connection and service. charges from the Township of
Oakland in amounts proportionate to and not less than those
charged or collected from the Township of Orion under this
Contract. Beforc connectione are pexedtted or made in the
Township of Oakland, said Township and the County shall enter into
a Contract for Services similar to this Contract for use of the
Oakland-Orion System in which the
which credit to or proportionate
the Townnnip of Orion under this
said charges are provided and in
reduction of the obligations of
Contract is also provided,- The
propertion to be assigned to the Township of Oakland shall be here-
after agreed upon by Orion and County if and when Oakland requests
the right to use the Oakaand-Orion System. The County shall not be
SyF-;em shown on txhihit "A", or to construct any improvements or
faellities other than those de!-;orSb2d in the 17.::ps, plans, designs
'and epecificatione approved xid adop:led by the parties hereto.
5. After completion of the project and payment of all
costs thereof, any surplus remaining from the sale of the bonds
therefor or otherwise may be used to purchase such bonds on the
open market or may be used to redeem bonds or to improve, enlarge
or extend the Oakland-Orion System as provided in the revenue bond
ordinance adopted by the County. Any bonds so purchased or
redeemed shall be canceled.
6,. If the proceeds of the sale of the revenue bonds to
be issued by the County to defray the cost of the project are for
any reason insufficient to complete the project in accordance with
the plans and specifications therefor, the County shall, if the
bond ordinance so provides, issue additional bonds in an amount
necessary to provide feeds to complete the project. In lieu of the
issuance of such additional bonds, any other method may be agreed
upon by the County and the Township to provide the necessary funds
• to complete the project. Other additional bonds may be issued as
provded in the bond ordinance.
7. This contract is contingent upon the County issuing
its negotiable revenue bonds as set forth in subdivision (b) of
paragraph 3 of this contract, to defray the estimated or, if
known, the actual cost of the project, which bonds shall be issued
under the authorization provided in said Act No- 94, Public Acts
of •:ichigan, 1933, as amended. The proceeds of the sale of the
revenue bonds, except premium and accrued interest, shall be used
seely to defray the cost of the prcjece including capitalized
interest on said bonds for the period of construction and
capitalized reserves, if any.
8. The. Township shall pay to the County, as a customer
arc:2 1::hc)1(2,7,1c u:;er of the Oak1.1,110-O::ion Sy:;tcm, a whoIe5:.ale rate
• and charge in amounts and on the dates set . forth on Exhibit "C",
attached hereto and by this reference made a part hereof, on
account of the revenue bonds issued by the County to finance and
acquire said System. The amounts scheduled on Exhibit "C" are
calculated to include items of expense as follows:
a. Installments of payments equal to 100%
of principal of and interest on the revenue
bonds of the County, exclusive of accrued
interest paid by the purchaser and of
capitalized interest.
b. Installments of payments to reserves as
provided in the revenue bond ordinance of
the County, exclusive of capitalized reserves.
c. Installments of expenses of the County for
administration of the Oakland-Orion System
and of its revenue bonds issued to finance same.
9. The Township shall also pay to the County, from time
to tme, as requested in writing the following:
a. Any increases in the amounts shown on Exhibit
"C' made necessary by reason of increased
costs of the Oakland-Orion System and/or
increased amounts of revenue bonds issued
by the County or made necessary by reason
of increases in item 8.c. above.
b. Payments required to replace or replenish
funds spent from or taken out of any reserves
as provided in the revenue bond ordinance (s)
of the County.
c. Payment rcquiTed for exrcicncy repairs to or
• replacement of facilities of the Oaklnd-Orion
System..
d. Sewage disposal and operation and maintenance
costs of the Paint Creek Interceptor and the
Clinton-Oakland Sewage Disposal System as
established from time to time by the County.
In addition, the Township has agreed herein, as lessee,
to pay or to provide for payment of general expenses of
maintenance of the Oakland-Orion System and of its operation and
use to provide sewage disposal services in the Township. The
Township hereby pledges its full faith and credit, supported by
the pledge of limited taxes only, in support of its general
obligation hereby created to make payments to the County as
provided in this Contract and agrees in each year to provide in its
general fund budget, as a first budget priority, for the payment
of its obligations as set forth in and incurred pursuant to this
Contract and especially Exhibit "C" thereto.
10. If the Township does not make the payments herein
provided within 30 days after the due date specified, then there
shall be added to such charges a penalty of one pez cent (1%; for
each month or fraction thereof for which the same remain unpaid.
It is specifically recognized by the Township that the payments
r -Lized to be made by it pursuant to Exhibit "C" of this contract
are to be pledged for the payment of the principal of and interest
on revenue bonds to be issued by the County, subject to the
tran:,fer of part of payment obligation to the Township of Oakland,
a:, herein provided, and the Township covenants and agrees that it
will mac the required payments to F;eid County promptly and z:t the
horein specified, without regard as to whether the project
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herein contemplated is actually completed or placed in operation.
The County shall have the right to utilize any method permitted by
law for the collection of such rates and charges .due said County
under this contract.
11. In the event that said Township shall fail for any
reason to pay the County at the times specified, the amounts
herein required to be paid, the County shall immediately notify,
in writing, bpth the Treasurer of the State of Michigan and the
governing body of-the Township of such default and the amount
thereof, and if such default is not corrected within ten (10) days
after such notification, the State Treasurer or other official
charged with the disbursement of funds to said Township derived
from the State sales tax levy under the provisions of Act
Public Acts of Michgian, 1933, as amended, and returnable to said
Township pursuant to the Constitution of michigan, or derived from
any bther funds payable by the State to the Township, shall, upon
the basis of this contract and the covenants and agreements of the
Townnhip, withhold sufficient funds to make up (74ny such default or
deficiency from the moneys derived from said State sales tax levy
then on hand or to be received, or other funds in the hands of the
State and which are returnable to such Township,
12. Upon completion of the Cakland-Orion System the
County does hereby lease the same to the Township to operate an
maintain the F.omc upon the follow3ng terms and conditions:
(a) The facilities shall be used and operated by the
Township in compliance with all contractual and
legal obligations applicable to the Township, and
the'Townr;hip expressly covenants and agrees to
comply with the provisions of U.S. Public Laws • 92-500 and 95-217, the Federal rules and regulations
thereunder, and the rules, regulations and
orders of the Michigan Department of
Natural Resources all of which are applicable
to the System.
(b) The Township, at its own expense, shall maintain
said facilities in good condition and repair to
the satisfaction of the County. The County shall
have the right to inspect the said facilities
at any time and if said facilities or any part
thereof are not in a state of good condition and
repair, then the County shall notify the Township
in writing as to any deficiency. If the Township
- shall fail to restore the facilities to a good
condition and repair within a reasonable time
thereafter, then the County shall have the right
to perform the necessary work and furnish the
necessary materials, and reimbursement for any
expense incurred by the County shall be made by
the Township to the County within thirty (30)
days after the expense has been incurred.
(c) The Township shall adopt and continue in existence
and shall enforce an ordinance or ordinances con-
cerning the connections of preeises in the Township
to the facilities and concerning the use of and
the payment of charges for the use of the facilities.
(d) The Township shall ma17.e and collect from the
individual users of the facilities such charges
for sewage disposal service as shall be sufficient
to pay the cof31 of the opration are mzinter:c..nc:e
of the facilities, the cost of sewage disposEl
charges required to be paid by the Township, and
to establish suitable reserves for operation and
maintenance. Such charges may also include an
amount determined by the Township to be used to
meet the obligations of. the Township to the County
under this Contract and other contracts with the
County for sewage disposal services and facilities.
The Township shall enforce prompt payment of all
such charges as the same shall become due.
(e) The Township shall secure and maintain adequate
property damage and public liability insurance
covering all facilities hereby leased to it by
the County. All policies of insurance shall pro-
vide that the Township and the County shall be
insured parties thereunder and shall contain a
provision requiring that the County be notified
at least ten days prior to cancellatior. thereof.
One copy of each policy of insurance shall be
filed with the County.
The Township agrees to lease the project from the
County upon the foregoing terms and conditions and for the pe:iod
of_ this Contcact and agrees to pay the sum of $1.1n per year
on January 1st of each year ccramencing January 1, 1982, and
in adition to perf=orm its covc.717. and rcements net forth
in this Contrect as a rental for said project.
13. The Township reves the right to establish rates
and cares to be collected Erom its individual users in an amount
uufficient to pay its obligat5ons nc'reundc.,4- its expcn.,7es of
oper a tion and maintr=noe of the 0iand-Orion Systn, esIcsse
tnercof. Such rates and char9us may be fixed and established,
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burden upon any part of said disposal systems, then an additional
charge shall be made over and above the regular service charge, or
it may be required that such sewage be treated before being
emptied into said disposal systems or the rJght to empty said
sewage into said disposal systems may be denied, if necesary, for
the protection of the public health and safety.
17. The parties hereto each recognize that the holders
from time to time of the revenue bonds issued by the County under
the provisions of Act No. 94, Public Acts of Michigan, 1933, as
amended, and secured by the pledge of the revenues, as set forth in
this contract, will have contractual rights in this contract and
it is therefore covenanted and agreed by each of them that so long
as any Of said revenue 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 affect either the
security of the revenue bonds or the prompt payment of principal
or interest thereon. The parties hereto further covenant and
agree that they will each comply with their respective dutien and
obligations under the terms of this contract promptly, at the
times and in the manner heroin set forth, and will not suffer to be
done any act which would in any way impair the said revenue bonds,
the security therefor, or the prompt payment of principal and
interest thereon. It is hereby declared that the terms of this
agrent insofar af_.1 they • pc:rtair to the Eccurity of any such
revenue bonds, shall be deemed to be fer the benefit of the holders
of .raid revenue bonds.
lg. In t:Je evlJt tlk..d. the Township shall aamje its
corporate status a: change its bou.ndaries by annexation, con-
detnchlwnt, incorpor;$tion or othorwL;u, it is un6er-
..,:toc.f and ocjreed thar the righ .;7; of such Towni:hip to se r vices as •
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herein provided for the area in the Oakland-Orion System an the
obligation of such Township to pay therefor pursuant to this
contract, shall be assets and liabilities, respectively, of such
Township to be divided and assumed in accordance' with the law then
in effect pertaining thereto.
19. This contract shall become effective upon proper
execution by the authorized officers of the Township and by the
County Execlitive on behalf of the County, and shall be binding
upon the successors and assigns of each party. This contract
shall terminate forty (40) years from the date hereof. This
contract may be executed in several counterparts. The charges and
rates herein provided shall become and be effective on
August 1, 1980
IN WITNESS WHEREOF, the parties hereto have caused this
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contract to be executed and delivered by their respective duly
authorized officers, all as of the day and year first above
written.
COUNTY OF OAKLAND
on behalf of the Oakland-Orion
Sewage Disposal System
By
County Executive
TOT1NSHIP OF ORION
By
5upel:visor
Township Clerk