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HomeMy WebLinkAboutOrdinances - 1981.01.01 - 8529ORDINANCE NO. 22 AN ORDINANCE TO AMEND ORDINANCE NO. 21, ENTITLED: "AN ORDINANCE TO PROVIDE FOR THE ESTABLISHMENT, OPERATION AND MAIN- TENANCE OF THE OAKLAND-ORION SEWAGE DISPOSAL SYSTEM TO SERVE AREAS IN THE TOWNSHIP OF ORION AND TOWNSHIP OF °ARLAND IN SAID COUNTY; TO PROVIDE FOR 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: 4111 Section 1. Sections l(f)., 3, 4, 14, 18, 19, 20, 22 and 2S of Ordinance No. 21 of the ordinances of the County of Oakland, as adopted on August 14, 1980, are hereby each amended to read as follows: Section 1 (f) The tern "Contract for Services" shall be construed to mean the contract entered into between the - County and Orion entitled Oakland-Orion Sewage Disposal System Contract for Services, dated as of August 1, 1980, and set forth in full in Ordinance No 21 of the Ordinances of the County of Oakland, dated as of August 14, 1980 0 as said Contract for Services is amended by Amendment No. 1 thereto, dated as of January 1, 1981, in form substantially as fol/ows: • AMENDMENT NO. .1 TO OAKLAND-ORION SEWAGE DISPOSAL SYSTEM CONTRACT FOR SERVICES This Amennmen4- No. 1 to Contract was made and eetered into as of the 1st day of January, 1981, by and between the COUNTY OF OAKLANE, 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. WBEREAS, 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 (herein sometimes called the "Interceptor") in the Clinton-Oakland Sewage Disposal System (herein sometimes called the 'System"), a sewage disposal system established by the County pursuant to Act No. 185 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 WEERAS, the contracts and agreements among the County and the Township and other units of government in the County pertaining to the Paint Creek Interceptor in the Clinton-Oakland Sewage Disposal System permit the County and the Township to acquire additional sewage disposal facilities as extensions of and eonnections to said Interceptor and System within the desig- nated service areas and districts thereof; and • WHEREAS, the County and the Township have entered into the Oakland-Orion Sewage Disposal System Contract for Services, dated as of August 1, 1980, (herein sometimes called "Contract for Services"); and WHEREAS, the County by Revenue Bond Ordinance No. 21 enacted by its Beard of Commissioners on August 14, 1980, 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, has established and intends to 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" to said Contract for Services, the cost of which Oakland-Orion System is estimated as set forth, on Exhibit . "B" attached to said Contract for Services; and WHEREAS, the County has obtained construction bids for the facilities of the said Oakland-Orion System (herein sometimes referred to as the "project") which construction bids are sub- stantially lower than the estimated costs 50 that a new estimate of coat has now been prepared which revised estimate of cost is set forth herein as Revised Exhibit "lin attached hereto and by this reference made a part hereof; and WHEREAS, the revision in costs has necessitated a revision of the schedule or payments to be made by the Township to the County pursuant to the Contract for Services, which revised schedule of payments is set forth herein as Revised Exhibit "C" attached hereto and by this reference made a part hereof; and • WEEREAS: other amendments to the contract for Services are proposed as herein set forth. ' NOW, THEREFORE, in consideration of the premises and the covenants of each, the parties hereto agree as follows: 1. Revised Exhibit "B" and Revised Zxhibit "C", here- unto attached, are hereby each approved and adopted in the place and stead of Exhibit "B" and Exhibit "C" attached to the Contract for Services and any and all references to Exhibit "B" or Exhibit "C" in said Contract or Services shall refer hereafter to the Revised. Exhibit "Bn and Revised Exhibit "C" as hereunto attached. 1 2. The change in the amount of the revenue bonds 'to be issued by the County from $4,850,000, as stated in paragraph 3.b. of the Contract for Services, to $2,525,000, as set forth on Revised Exhibit "3" hereunto attached, is approved and adopted. 3. Paragraphs 9 and 10 of the Contract for Services arc hereby amendod For purpozws of clztriLy Lo read as follows: 9. The Township shall also pay to the County, from time to time, as requested in writing the following: a. Any increases in the amounts shown on Revised 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. Payments required for emergency repairs to or replacement of facilities of the Oakland-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 main- tenance of the Oakland-Orion System and of its operation and . use to provide sewage disposal services in the Township. The Township hereby acknowledges as a customer and wholesale user of the Oakland-Orion System its full faith and credit general obligation hereby created to make payments to the County as provided in this Contract and agrees in each year to provide in its water or sewer fund budget or 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 Revised 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 per cent (l%) for • each month or fraction thereof for which the same remain unpaid. It is specifically recognized by the Township that the payments required to be made by ie pursuant to Revised 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 transfer of part of payment obligation to the Township of Oakland, as,herein provided, and the Township covenants and .agrees that it will make the required payments to said County promptly and at the times herein specified. 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. The sale and delivery by the County of its revenue bonds or the incurring by the County of an irrevocable obligation to pay for any of the items of cost of the Oakland-Orion System, as set forth on Revised Exhibit "C" or as provided in this Contract, shall create an irrevocable general obligation in the Townehip to reimburse the County by making the payments as herein provided, or otherwise, subject only to credit for unused bond proceeds or other funds available to, obtainable by or in the control of the County for application Apn such general obligation of the Township, which application the County hereby agrees to make. Failure of the county to complete or to place in operation the Oakland-Orion System for any reason not in the control of the county and not covered by insurance or agreements of indemnification shall be at the sole risk of the Township. The County shall, however, utilize any method permitted by law to complete and place in service the Oakland-Orion System. 4. As amended hereby, the Contract for Services shall be and remain in full force and effect as therein provided. IN WI Amendment No. I duly authorized written. TNESS WHEREOF, the parties hereto have caused this to be executed and delivered by their respective officers, all as of the day and year first above COUNTY OF OAXLAND on behalf of the Oakland-Orion Sewage Disposal System By County Executive TOWNSHIP OF ORION By Supervisor And Township Clerk