HomeMy WebLinkAboutResolutions - 2010.11.18 - 10242MISCELLANEOUS RESOLUT/ON# 10291 November 3, 2010
BY: PLANNING AND BUILDING COMMITTEE, JOHN A. SCOTT, CHAIRPERSON
IN RE: WATER RESOURCES COMMISSIONER — OAKLAND COUNTY HIGHLAND TOWNSHIP WELL
WATER SUPPLY SYSTEM BOND RESOLUTION
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen .
WHEREAS, the Charter Township of Highland (the "Township") and the County of Oakland (the
County") have entered into the Oakland County Highland Township VVell Water Supply System Contract
dated as of October 1, 2009 (the "Contract"), pursuant to the provisions of Act 342, Public Acts of
Michigan. 1939. as amended ('Act 342). and especially Sections 5a, 5b and 5c thereof with respect to the
acquisition, construction, and financing of facilities constituting the Oakland County Highland Township
Well Water Supply System (the "Project"); and
WHEREAS, an estimate of the cost of the Project in the amount of $1,200,000 has been
prepared and has been approved by the Board of Commissioners of the County, and
WHEREAS, this Board of Commissioners desires to proceed with the acquisition, construction
and financing of the Project and the issuance of Bonds of the County in an aggregate principal amount of
not to exceed $1,200,000 to defray all or part of the cost of the Project.
NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of the County of
Oakland. Michigan, as follows:
1. DEFINITIONS. Unless the context otherwise requires, the terms defined in this Section 1
shall, for all purposes of this Bond Resolution and the recitals herein, have the following meanings:
a. "Act 34" means Act No. 34, Public Acts of Michigan, 2001, as amended.
b. "ARRA" means the American Recovery and Reinvestment Act of 2009, being Public Law
No. 111-5, 123 Stat. 115 (2009), enacted OR February 17, 2009 by the Congress of the
United States,
C. "Bond Registrar and Paying Agent' means the bond registrar and paying agent appointed
pursuant to Section 7 hereof.
d, 'Bond Resolution' means this resolution, as it may be amended and supplemented from
time to time in accordance with the terms hereof.
e. "Bonds" means the County's Oakland County Highland Township Well Water Supply
System Bonds, Series 2010 authorized by Sections 2 and 3 of this Bond Resolution.
f. "Build America Bonds" means Bonds that meet the definition of a "build America bond" in
Section 54AA(d) of the Code and the definition of a "qualified bond' under Section
54AA(g)(2) of tne Code and for which the County will be allowed a Refundable Credit, all
as authorized by Section 1531. Title I of Division B of ARRA.
g. "Code" means the Internal Revenue Code of 1986. as amended.
h. "Construction Fund" means the fund described in Section 14 of this Bond Resolution.
1. 'County" means the County of Oakand, Michigan.
j. "County Agency" means the Water Resources Commissioner as County Agency
pursuant to Act 342.
k. "DTC" means The Depository Trust Comnany. New York. New York.
"Interest Payment Date" means each date or dates set forth in a Sale Order on which
interest shall be payable on the Bonds.
m. "Letter of Representations" means the Blanket Issuer Letter of Representations between
the County and DTC.
n. "Principal and Interest Fund" means the fund established pursuant to Section 13 of this
Bond Resolution.
PLANNING & BUILDING COMMITTEE VOTE:
Motion carried unanimously on a roll call vote with Runestad and Burns absent.
O. -Recovery Zone Economic Development Bonds means Build America Bonds that meet
the definition of a "recovery zone economic development bond" in Section 1400U-2 of the
Code and for which the County will be allowed a Refundable Credit. all as authorized by
Section 14000-2 of the Code.
P- ''Redemption Price' means, with respect to any Bond, the principal amount thereof, plus
the applicable premium. if any, payable upon redemption thereof pursuant to this Bond
Resolution.
q- "Refundable Credit" means with respect to Recovery Zone Economic Development
Bonds, an amount equal to 45 percent of the interest due on the Recovery Zone
Economic Development Bonds on each Interest Payment Date, to be paid to the County
by the United States Department of Treasury in accordance with Sections 1400U-2 and
6431 of the Code.
r. "Sale Order means the written order of the County Agency, approving the sale of the
Bonds and making certain determinations regarding the final terms thereof within the
parameters of this Bond Resolution,
S. "Tax-Exempt Bonds" means Bonds the interest on which is excluded from gross income
fcr federal income tax purposes.
2_ AUTHORIZATION OF BONDS — PURPOSF Bonds of the County aggregating the
principal sum of not to exceed One Million Two Hundred Thousand Dollars ($1,200,000) shall be issued
and sold pursuant to the provisions of Act 342. and other applicable statutory provisions, for the purpose
of defraying all or part of the cost of the Project.
3, BOND DETAILS, The Bonds shall be designated "Oakland County Highland
Township Well Water Supply System Bonds, Series 2010," shall be dated as of the date
approved by the C'ounty Agency; shall be numbered from 1 upwards; shall be fully registered;
shall be in the denomination of 55.000 each or any integral multiple thereof not exceeding the
aggregate principal amount for each maturity at the option of the purchaser thereon shall bear
interest at a rate or rates not exceeding 7% per annum as shall be determined by the County
Agency at the time of sale: shall be payable as to interest on such dates as shall be determined by
the County Agency: and shall be serial bonds andior term bonds and mature in such amounts, on
such dates and in such years as shall be determined by the County Agency, provided, however,
that the final maturity snail not be later than November 1, 2030,
4. PAYMENT OF PRINCIPAL A,Nn INTFRF51. The principal of and interest on the Bonds
shall be payable in lawful 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
shail 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.
5. BOOK-ENTRY SYSTEM. If requested by the purchaser, one fully-registered bond for
each maturity. in the aggregate amount of such maturity, shall be initially issued in the name of Cede &
Co., as nominee of DTC for the benefit of other parties (the "Participants") in the book-entry-only transfer
system of DIG. In the event the County determines that it is in the best interest of the County not to
continue the book-entry system of transfer or that the interests of the holders of the Bonds might be
adversely affected if the book-entry system of transfer is continued, the County may notify DTC and the
Bond Registrar and Paying Agent, whereupon DTC will notify the Participants of the availability through
DTC of bond certificates. In such event, the Bond Registrar and Paying Agent shall deliver, transfer and
exchange bond certificates as requested by DTC and any Participant or 'beneficial owner in appropriate
amounts in accordance with this Resolution. DTC may determine to discontinue providing its services
with respect to the Bonds at any time by giving notice to the County and the Bond Registrar and Paying
Agent and discharging its responsibilities with respect thereto under applicable law or the County may
determine that DTC is incapable of discharging its duties and may so advise DTC. In either such event,
the County shall use reasonable efforts to locate another securities depository. Under such
circumstances (if there is no successor securities depository), the County and the Bond Registrar and
Paying Agent shall be obligated to deliver bond certificates in accordance with the procedures established
by this Bond Resolution In the event bond certificates are issuee, the provisions of this Bond Resolution
shall apply to, among other things the transfer and exchange of such certificates and the method of
payment of principal of and interest on such certificates. Whenever DTC requests the County and the
Bond Registrar and Paying Agent to do so, the County and the Bond Registrar and Paying Agent shall
cooperate with DTC in taking appropriate action after reasonable notice to make available one or more
separate certificates evidencing the Bonds to any Participant having Bonds certified to its DIG account or
to arrange for another securities depository to maintain custody of certificates evidencing the Bonds.
Notwithstanding any other prevision of this Bond Resolution to the contrary, so long as any Bond
is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to the principal of,
interest on and redemption premium, if any, on such Bonds and al! notices with respect to the Bonds shall
be made ana given, respectively. to DTC as provided in the Letter of Representations relating to the
Bonds: The County Treasurer and trie County Agency are each authorized to sign the Letter of
Representations on behalf of the County, in such form as such officer deems necessary or appropriate in
order to accomplish the issuance of the Bones in accordance with law and this Bond Resolution.
6. OPTIONAL MANDATORY AND EXTRAORDINARY REDEMPTION. The Bonds shall
be subject to redemption prior to maturity upon such terms and conditions as shall be determined by the
County Agency at the time of sale,
. 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 from time to time as
required may designate a similarly qualified successor bond registrar and paying agent.
8, EXECUTION, AUTHENTICATION AND DPI IVERY rT BONDS. The Bonds shall be
executed in the name of the County by the facsimile signatures of the Chairperson 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
Chairperson 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 emir) 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 authorised 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 bona 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 arid
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 [insert
applicable date]."
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 shal 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 maw to any such registered owner, or
upon his order, in accordance with the provisions of Section 4 of this Bond 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 Bonos which have been selected for redemption.
10. FORM OF BONDS. The Bonds shall be in substantially the following form, with such
additions, deletions and modifications as are approved by the County Agency and consistent with the
terms of this Bond Resolution:
[FORM OF BOND]
UNITED STATES OF AMERICA
STATE OF MICHIGAN
COUNTY OF OAKLAND
OAKLAND COUNTY HIGHLAND TOWNSHIP WELL
WATER SUPPLY SYSTEM BOND. SERIES 2010
INTEREST RATE MATURITY DATE DATE OF ORIGINAL ISSUE CUSIP
Registered Owner:
Principal Amount:
The County of Oakland, State of Michigan (the "County") acknowledges itself indebted 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 tne 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 15'h 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 day of and in each
year, commencing 1, 200_. Principal arm interest are payable in lawful money of the
United States of America. Interest shall be computed on the basis of a 360 day year of twelve 30-day
months:
-4-
This bond is one of a series of bonds aggregating the principal sum of
Dollars ($ ) 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
water supply system facilities to serve the County and the Charter Township of Highland (the "Township").
The bonds of this series are issueo in anticipation of payments to be made by the Township, in the
aggregate principal amount of Dollars ($ ), pursuant to a
contract between the County and the Township. The full faith and credit of the Township 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 ana 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 Township and
the County to pay tne principal of and interest on the bonds of this series are subject to constitutional and
statutory 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 m writing. Upon the exchange or transfer of this bond a
new bond or bonds of any authorized denomination in the same aggregate principal amount ano of the
same interest rate and maturity, shall be authenticated and delivered to the transferee in exchange
therefor as provided in the Rescoution, and upon payment of the charges, if any, therein provided. Bonds
so authenticated and dela/ere(' shall be in the denomination of $5,000 or any integral multiple thereof not
exceeding the aggregate principal amount for each maturity.
The Dond registrar and paying agent shall not be required to transfer or exchange bonds or
portions of bonds which have been selected far redemption.
MANDATORY PRIOR REDEMPTION
Bonds maturing in the year are subject to mandatory prior redemption at par and accrued
interest as follows:
Principal Amount of
Redemption Date Bonds to be Redeemed
Bonds or portions of bonds to be redeennea by mandatory redemption shall be selected by lot.
(REPEAT IF MORE THAN ONE TERM BOND)
OPTIONAL PRIOR REDEMPTION
Bonds maturing prior to 1. 200_, are not subject to redemption prior to maturity. Bonds
maturing on and after 1. 200_, 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 200_. 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 a;1 of the bonds maturing in any year
are to be redeemed. the bonds or portions of bends to be redeemed shall be selected by lot. The
_5_
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:
cl
_%o of the par value of each bond called redemption on or after 1,
200_, but prior to 1, 200_:
% of the oar value of eacn bond called for redemption on or after I ,
200_. but prior to I. 200_,
No premium if called for redemption on or after 1 200_.
Not less than thirty days' nor more than sixty 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 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 the 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 Chairperson 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
By:
Chairperson, Board of Commissioners
[SEALI
Aid:
County Clerk
CERTFICATE OF AUTHENTICATION
This bond is one of the bonds described in the wthin mentioned Resolution.
Bond Registrar and Paying Agent
By:
Authorized Representative
AUTHENTICATION DATE:
ASSIGNMENT
For value rece'ved. 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 hereby irrevocably constitutes and appoints
attorney to transfer the within bond on the books kept for registration thereof, with full power of
substitution in the premises.
Dated:
Signature Guaranteed:
Signature(s) must be guaranteed by an eligible guarantor institution participating in a Securities
Transfer Association recognized signature guarantee program.
[END OF BOND FORM]
11. SECURITY The Bonds shall be issued in anticipation of payments to be made by the
Township pursuant to the Contract. The Bonds shal; be secured primarily by the full faith and credit
pledge made by the Township in the Contract pursuant to the authorization contained in Act 342. and, if
all or any part of the Bonds are designated as Recovery Zone Economic Development Bonds, the
Refundable Credit related to such Bonds. 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. I the Township shall fail to make a payment to the County which is sufficient to pay
the principal of. premium, if any. and interest on the Bonds as the same shall become due, then an
amount sufficient to pay the deficiency shall be advanced from the general fund of the County. Taxes
imposed by the County snail be subject to constitutional and statutory limitations.
12. DEFEASANCE.. In The event cash or direct obligations of the United States or obligations
the principal of and interest on which are guaranteed by the United States. or a combination thereof, the
principal of and interest on which. witnout reinvestment, come due at times and in amounts sufficient to
pay, at maturity or irrevocable call for earlier optional redemption, the principal of, premium, if any, and
interest on the Bonds, or any portion thereof, shall have been deposited in trust, this Resolution shall be
defeased with respect to such Bons, and the owners of the Bonds shall have no further rights under this
Bond Resolution except to receive payment of the principal of. premium, if any, and interest on such
Bonds from the cash or securities deposited in trust and the interest and gains thereon and to transfer
and exchange Bonds as provided herein.
13. PRINCIPAL AND INTEREST FUNQ. There shall be established for the Bonds a
Principal and Interest Fund which shall be kept in a separate bank account, provided, however, that such
Principal and Interest Fono may be pooled or combined for deposit or investment purposes with other
debt retirement funds created for nonvoted debt of the County (other than any special assessment debt).
From the proceeas of the sale of the Bonds there shall be set aside in the Principal and Interest Fund
such premium as determined by the County Agency and accrued interest received from the purchaser of
the Bonds at the time of delivery of the same. All payments received from the Township pursuant to the
Contract are pledged for payment cf the principal of and interest on the Bonds and expenses incidental
thereto and as receive() shall be placed in the Principal and Interest Fund.
14 CONSTRUCTION FUND. The remainder of the proceeds of the sale of the Bonds shall
be set aside in a construction fund for the Project and used to defray the cost of the Project in accordance
with the provisions of the Contract.
15. CEPTION FROM
PRIOR APPROVAL. Tne issuance and sale of the Bonds shall be subject to the County obtaining
qualified status or prior approval from the Department of Treasury of the State of Michigan pursuant to
Act 34 and, s' necessary. the County Treasurer and County Agency are each hereby authorized and
directed to make appl;cation to the Department of Treasury for approval to issue and sell the Bonds as
provided by the terms of this Bond Resolution and by Act 34. The County Treasurer and County Agency
are authorized to pay any filing fees required in connection with obtaining qualified status or prior
approval from the Department of Treasury. The County Treasurer and County Agency are further
authorized to request such waivers of the requirements of the Department of Treasury or Act 34 as
necessary or desirable in connection with Me sale of the Bonos.
16. SALE. ISSUANCE, DELIVERY TRANSFFR AND FXCHANGE OF BONDS (a) The
County Agency shall determine the principal amount of the Bonds to be sold and shall determine the
other bond details as described in Sections 3 and 6 hereof and any premium to be set aside in the
Principal and Interest Fund as described in Section 13 hereof. In addition, in order to save the cost of
publication of an Official Notice of Sale and enable the Bonds to be issued as Recovery Zone Economic
Development Bonds. tne County hereby determines that it will sell the Bonds at a negotiated sale after
solicitation of interest from prospective purchasers by its financial consultant. ACI Finance, Inc. (the
-10-
"Financial Consultant), The Financial Consultant s authorized to solicit interest from not less than 10
financial institutions and to circulate a solicitation of interest at least seven days prior to the date fixed for
receipt of responses to the solicitation. The Financial Consultant is hereby designated to act for and on
behalf of the County to receive responses for the purchase of the Bonds and to take all other steps
necessary in connection with the sale and delivery thereof The actions taken by the Financial Consultant
and the County Agency in connection with the solicitation of interest to the date of adoption of this Bond
Resolution are hereby ratified and confirmed. The Sale Order shall be executed by the County Agency at
the time of the sale of the Bonds and shal set forth the principal amount, principal maturities and payment
dates, interest rates and Interest Payment Dates, and redemption provisions, if any, with respect to the
Bonds, the purchase price to be paid by the purchaser, compensation to be paid to the purchaser. if any,
and designation as Tax-Exempt Bonds and/or Recovery Zone Economic Development Bonds, as the
case may be, as well as such other provisions as the County Agency determines to be necessary or
appropriate in connection with the sale of the Bonds. In making the determination in the Sale Order with
respect to principal maturities and dates, redemption provisions, purchase price of the Bonds,
compensation to be paid to the Underwriter, it any, and designation of the Bonds as either Tax-Exempt
Bonds or Recovery Zone Economic Development Bonds, or some combination thereof, the County
Agency shall be limited as follows:
(1) The interest rate on any Tax-Exempt Bonds shall not exceed 7% per annum and
on any Recovery Zone Economic Development Bonds shal not exceed 9% per annum.
(2) The final maturity date of the Bonds shall be no later than November 1, 2030.
(3) The ourehase price of the Bonds shall not be less than 98.5% of the principal
amount thereof.
(4) The County Agency is authorized to designate all or any part of the Bonds as
Recovery Zone Economic Development Bonds. as provided in Sections 54AA and 1400U-2 of the Code,
if he determines that such designation is economic and in the best interests of the County.
(b) The County Agency the County Treasurer. the County Clerk and otner County officials
and employees are hereby authorized to do all other things necessary to effectuate the sale, issuance,
delivery, transfer and exchange of the Bonos in accordance with the provisions of this Bond Resolution.
17. REPLACEMENT OF BONDS. Upon receipt by the County Treasurer of proof of
ownership of an unmatured boric, of satisfactory evidence that the bond has been lost, apparently
destroyed or wrongfully taken and of security or indemnity which complies with applicable law and is
satisfactory to the County Treasurer, the County Treasurer may authorize the Bond Registrar and Paying
Agent to deliver a new executed bond to replace the bond lost, apparently destroyed or wrongfully taken
in compliance with applicable law. In the event an outstanding matured bond is lost, apparently
destroyed or wrongfully taken, the County Treasurer may authorize the Bond Registrar and Paying Agent
to pay the bond without presentation upon the rece pt of the same documentation required for the delivery
of a replacement bond. The Bond Registrar and Paying Agent, for each new bond delivered or paid
without presentation as provided above, shall require the payment of expenses, including counsel fees,
which may be incurred by the Bond Registrar and Paying Agent and the County in the premises. Any
bond delivered pursuant the prov;sions of this Section 17 in lieu of any bond lost, apparently destroyed or
wrongfully taken shall be of the same form and tenor and be secured in the same manner as the bond in
substitution for which such bond was delivered.
18. OFFICIAL STATEMENT. The County Agency and the County Treasurer are each
authorized to cause the preparation of an official statement for the Bonds for the purpose of enabling
compliance with Rule 15c2-12 issueo under the Securities Exchange Act of 1934, as amended (the
"Rule") and to do all other things necessary to enable compliance 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 sun bidder or bidders to comply with paragraph (b)(4) of the Rule and the rules of the Municipal
Securities Rulemaking Board
19. CONTINUING DISCLOSURE. The County Treasurer is authorized to execute a
certificate of the County, constituting an undertaking to provide ongoing disclosure about the County for
the benefit of the holders of the Bonds as required under paragraph (b)(5) of the Rule, and amendments
to such certificate from time to time in accoroance with the terms of the certificate (the certificate and any
amendments thereto are collectively referred to herein as the "Continuing Disclosure Certificate"). The
County hereby covenants and agrees Mat it will comply with and carry out all of the provisions of the
Continuing Disclosure Certificate.
20. TAX COVENANT. (a) The County covenants to comply with all requirements of the
Code necessary to assure that the interest on tie Tax-Exempt Bonds. if any, wilt be and will remain
excludable from gross income for federal income tax purposes. The County Agency, the County
Treasurer and other appropriate County officials are authorized to do all things necessary to assure that
tne interest on the Tax-Exempt Bonds, if any. will be and will remain excludable from gross income for
federal income tax purposes.
(b) The County Agency and the County Treasurer are each authorized to make any tax
covenants on behalf of the County in connection with the issuance of Recovery Zone Economic
Development Bones, if any, that are determined to be in the best interests of the County and necessary
for the County to receive any Refundable Credit related to such Bonds. The County Agency, the County
Treasurer and other appropriate County officials are authorized to do all things necessary to assure
compliance with any such covenants.
21. REDUCTION OF PRINCIPAL AMOUNT OF RONn !SRI IF If the County Agency shall
determine that it is not necessary to sell Bonds in the principal amount stated in Section 2 of this Bond
Resolution, the County Agency by written order may reduce the prinvpal amount of Bonds to be sold to
that amount deemed necessary.
22. 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 & Duilding Committee, I move adoption of the
foregoing resolution.
PLANNING AND BUILDING COMMITTEE
Subtotal
Contingencies (10% of Construction Cost)
1,120,000
80,000
TOTAL ESTIMATED PROJECT COST: 1,200,000
Water System Interconnection
Contract No. 1
Highland Township
Estimate of Project Cost
Based on Bids Received
October 7, 2010
CONTRACTED SERVICES - CONSTRUCTION:
Contract No. 1 (Based on Bids Received) 806,100
SCADA Equipment 25,160
Subtotal-Construction 831,260
CONTRACTED SERVICES - PROJECT DEVELOPMENT:
Engineering
Consulting Engineer Design Services S 86,000
Consulting Engineer Construction Services 45,000
Subtotal-Project Development 131,000
LEGAL & FINANCIAL
Bond Counsel $ 16,300
Financial Consultant $ 9,500
Michigan Department of Treasury Filing Fee $ 240
Notice of Intent Legal Ad $ 500
Municipal Advisory Council Fee $ 200
Rating Expense $ 4,000
Statistical Data and Official Statement $ 5,000
Printing Bonds $ 500
Miscellaneous Expenses and Contingency $ 2,000
Recovery Zone Bond Allocation Application Fee $ 500
Subtotal-Legal & Financial S 38,740
COUNTY SERVICES - PROJECT MANAGEMENT:
Administration 8,000
Engineering 25,000
Right of Way Purchase Costs 10,000
Right-of-Way 18,000
Construction Inspection (Based on 18 Week Construction Period) 58,000
Subtotal-County Services 119,000
Prepared by: Glenn Appel, P.E.
Resolution #10291 November 3, 2010
The Chairperson referred the resolution to the Finance Committee. There were no objections.
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FISCAL NOTE (MR. #10291) November 18, 2010
BY: FINANCE COMMITTEE. TOM MIDDLETON, CHAIRPERSON
IN RE: WATER RESOURCES COMMISSIONER - OAKLAND COUNTY HIGHLAND
TOWNSHIP WELL WATER SUPPLY SYSTEM BOND RESOLUTION
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed the above
referenced resolution and finds:
1. The Resolution is requesting that the Board of Commissioners pledge the full
faith and credit of the County of Oakland for the payment of principal and interest
on the Oakland County Highland Township Well Water Supply System Bonds,
Series 2010.
2. The bond issue is not to exceed S1,200,000 and is to be used for constructing
the facilities constituting the Oakland County Highland Township Well Water
Supply System.
3. The Bonds shall be classified as Tax Exempt Bonds or Recovery Zone Economic
Development Bonds, or some combination thereof. The Tax Exempt Bonds
interest rate shall not exceed 7% per annum; the Recovery Zone Economic
Development Bonds interest rate shall not exceed 9% per annum.
4. The Bonds shall be issued in multiple series, will be in aggregate principal
amounts of $5,000 or any integral multiple thereof, will mature in such years and
principal amounts and will be callable prior to maturity as determined necessary
by the County Agency.
5. It has been decided that a traditional tax-exempt issue will be pursued as it has
been determined that Recovery Zone Economic Development Bonds will not be
beneficial in this case.
6. The statutory limit for County debt is $5,774,507,651 (10% of State Equalized
Value). As of October 29, 2010, the total pledged debt is $309,146,709 or
approximately 0.53536% of the S.E.V.
7. The estimated project cost of $1,200,000 will be 100% apportioned to the Charter
Township of Highland and the Township of Highland will be responsible for all
debt payments.
8. The Township of Highland will pay for the bonds through connection fees and/or
service fees from customers using the system.
9. No budget amendment is required.
FINANCE COMMITTEE
Motion carried unanimously on a roll call vote.
Resolution #10291 November 18, 2010
Moved by Middleton supported by Nash the resolutions (with fiscal notes attached) on the Consent
Agenda be adopted (with accompanying reports being accepted).
AYES: Capello, Coleman, Coulter, Douglas, Gershenson, Gingell, Gosselin, Greimel, Hatchett,
Jackson. Jacobsen, Long, McGillivray, Middleton, Nash, Potts, Runestad, Schwartz. Scott. Taub,
Woodward, Zack, Bullard, Burns, (24)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the Consent
Agenda were adopted (with accompanying reports being accepted).
I HEREBY APPROVE THE FOREGOING RESOLUTION
ACTING PURSUANT 10 1973 PA 139
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Ruth Johnson, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true
and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on November
18, 2010, with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at
Pontiac, Michigan this 18 of November, 2010.
Qat
Ruth Johnson, County Clerk
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