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:
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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
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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
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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