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HomeMy WebLinkAboutResolutions - 1983.03.16 - 11609March 17, , 1983 RESOLUTION No. 33052 RE: APPROVAL OF NOTICE OF SALE BY: FINANCE COMMITTEE TO: THE OAKLAND COUNTY BOARD OF COMMISSIONERS MR. CHAIRMAN, LADIES AND GENTLEMEN: . BE IT RESOLVED BY THE BOARD OF'COMMISSIONERS OF THE COUNTY OF- OAKLAND: If a public sale is held, sealed proposals for the purchase of the notes approved in the 1983 Borrowing Resolution (1982 Delinquent Taxes) shall be received up to such time as shall later be determined by the Treasurer, and notice thereof shall be published in accordance with law, once in at least one of, the Bond Buyer, Michigan Investor, or Detroit Legal News, each of which is hereby designated as being a publication printed in the English language and circulated in this State, which carries as a part of its regular service, notices of sale of municipal bonds. The notice (sometimes referred to as the "Notice of Sale") shall be in substantially the form as that attached to this resolution as Exhibit A for coupon notes or as Exhibit B for fully regis- tered notes. (For Coupon Notes) EXHIBIT A OFFICIAL NOTICE OF SALE COUNTY OF STATE OF MICHIGAN GENERAL OBLIGATION LIMITED TAX NOTES, SERIES 1983 SEALED BIDS: Sealed bids for the purchase of General Obliga- tion Limited Tax Notes, Series 1983, of the County of (the "County"), Michigan, of the par value of will be received by the undersigned at the office of the County Treasurer, until Michigan Time, on , 1983. at which time they will be publicly opened and read. IN THE ALTERNATIVE: Sealed bids will also be received on the same date and until the same time by an agent of the undersigned at the office of the Municipal Advisory Council of Michigan, 2135 First National Building, Detroit, Michigan 48226, where they will be publicly opened simultaneously : Bids opened at Detroit, Mich- igan, will be read first, followed by the alternate location. Bidders may choose either location to present bids and good faith checks, but not both locations. AWARD: The notes will be awarded to the successful bidder at a proceeding conducted by the County Treasurer approximately thirty minutes after all bids have been opened on that date. NOTE DETAILS: The notes will be coupon notes of the denomi- nation of $5,000 each; will bear interest from their date payable on November 1, 1983. and semi-annually thereafter; will be dated March 1. 1983; will be numbered in direct order of maturity from 1 to . inclusive, and will mature serially on May 1 in years and amounts as follows: YEAR AMOUNT 1984 1985 1986 PRIOR REDEMPTION: Notes maturing in the years 1984 and 1985 shall not be subject to redemption prior to maturity. Notes maturing on May 1, 1986, may be redeemed on any interest payment date on or after May 1, 1985, at the option of the County Treas- urer at par plus accrued interest to the redemption date. Notice of redemption shall be given at least thirty (30) days prior to the date fixed for redemption by publication in a paper circulated in the State of Michigan which carries, as a part of - 16 - its regular service, notices of sale of municipal bonds. Any defect in any notice shall not affect the validity of the redemp- tion proceedings. Notes so called for redemption shall not bear interest after the date fixed for redemption provided funds are on hand with a paying agent to redeem the same. INTEREST RATE AND BIDDING DETAILS. The notes will bear interest from their date at a rate or rates specified by the suc- cessful bidder, not exceeding % per annum, expressed in multiples of 1/8 or 1/20 of 1%, or any combination thereof. Interest on the notes of any maturity shall be at one rate only, and the difference between the highest and lowest rate of interest bid shall not exceed four percent (4%). PAYING AGENT. Both principal and interest will be payable at a bank or trust company located in the State of Michigan, quali- fied to act as paying agent under the statutes of the State of Michigan or of the United States of America. to be designated by the original purchaser of the notes, who may also designate a co-paying agent or agents, which may be either a bank located in the State of Michigan or a bank located nutside of Michigan. or both, qualified to act as a paying agent under the law of the state in which located or of the United States of America, all of which shall be subject to the approval of the County Treasurer. Either the paying agent or a co-paying agent must be a Michigan bank located in a Federal Reserve city. The designation of paying agent or paying agents shall be made by letter or telegram to the undersigned within 24 hou-rs after the time of sale. In the event no paying agent is designated within the time herein provided, or in the event that the paying agent designated is not qualified under the statutes of this State or of the United States of America, or is not approved by the Treasurer, the Treasurer shall appoint the paying agent or paying agents after discussion with the original purchaser. • PURPOSE: The notes are issued for the purpose of estab- lishing the 100% Tax Payment Fund of the County for the 1982 tax year and for the purpose of establishing a $ 1983 Note Reserve Fund. PRIMARY SECURITY: The notes are primarily secured by: (1) all of the collections of the 1982 real property taxes due and payable to taxing units in the County, including the County, which were outstanding and uncollected on March 1. 1983, together with all interest thereon; (2) all of the property tax adminis- tration fees on such delinquent taxes, once the expenses of bor- rowing have been paid; and (3) any amounts which are received by the County from the taxing units within the County because of the uncollectability of such delinquent taxes. NOTE RESERVE FUND: In the event the primary security is insufficient to meet the prompt payment of the principal and interest on these notes when due, for any reason, the moneys in the 1983 Note Reserve Fund shall be used to make such payment. All moneys in the 1983 Note Reserve Fund shall be used solely for - 17 - payment of principal and interest on the notes or for the pur- chase of notes for which the fund was established. Moneys in the 1983 Note Reserve Fund shall be withdrawn first for payment of principal and interest on notes before other County general funds are used to make the payments. When the 1983 Note Rezerve Fund is sufficient to retire the notes and accrued interest thereon, it may be used for purchase of such notes on the market, or, if notes are not available, to retire notes when due. GENERAL OBLIGATION WITHOUT UNLIMITED POWER TO TAX. In addi- tion, this note issue is a general obligation of the County. secured by its full faith and credit, which shall include the limited tax obligation of the County, within applicable constitu- tional and statutory limits, and its general funds. THE COUNTY DOES NOT HAVE THE POWER TO LEVY' ANY ADDITIONAL TAXES FOR THE PAYMENT OF THE NOTES IN EXCESS OF ITS CONSTITUTIONAL AND STATU- TORY LIMITS. [The following paragraph is optional and will be inserted in the Notice of Sale if the note issue qualifies for insurance.] NOTE INSURANCE: has issued a commitment for municipal bond insur- ance covering the notes. All bids shall be conditioned upon the issuance effective as of the date on which the notes are issued, (21_52_2:211,/y_21immLuigl_ty guaranteeing the paymente of principal and interest on the notes. Each note will bear a legend referring to the insurance. The purchaser, holder or owner is not authorized to make any statement regarding the insurance beyond those set out here and in the note legend. AWARD OF THE NOTES: For the purpose of awarding the notes, the interest cost of each bid will be computed by determining, at the rate specified therein, the total dollar amount of all interest on the notes from , 1983, to their maturity and deducting therefrom any premium or adding thereto any discount. The notes will be awarded to the bidder whose bid on the above computation produces the lowest interest to the County. No proposal for less than 98% of par, nor less than all the notes, will be considered. Each bidder, for the convenience of the County, shall state in his bid the net interest cost to the County, computed in the manner above specified. GOOD FAITH: A certified check, cashier's check or bank money order in the amount of $ , drawn upon an incorporated bank or trust company and payable to the order of the County Treasurer must accompany each bid as a guarantee of good faith on the part of the bidder, to be forfeited as liquidated damages if such bid is accepted and the bidder fails to take up and pay for the notes. No interest will be allowed on good faith deposits. The good faith check of the winning bidder will be promptly cashed, and the amount received therefor will be credited against the purchase price as of the date of delivery. Checks of unsuc- cessful bidders will be promptly returned to each bidder's representative or returned by registered mail. In the event the - 18 - notes cannot be issued or delivered for any reason, the County will pay back to the successful bidder the principal amount of the good faith check without interest. LEGAL OPINION: Bids shall be conditioned upon the unquali- fied approving opinion of Martin, Axe, Maxwell, Smith, Buhl & Schwartz, attorneys of Bloomfield Hills, Michigan, approving the legality of the notes, a copy of which will be printed on the reverse side of each note, and the original of the opinion will be delivered without expense to the purchaser of the notes at the delivery thereof. DELIVERY OF NOTES: The County will furnish notes ready for execution at its expense at Detroit, Michigan The usual documents, including a certificate that no litigation is pending, affecting the issuance of the notes, will be deli- vered at the time of delivery of the notes. If the notes are not tendered for delivery by twelve o'clock noon, Michigan Time, on the 45th day following the date of sale, or the first business day thereafter, if said 45th day is not a business day, the suc- cessful bidder may on that day, or any time thereafter until delivery of the notes, withdraw his proposal by serving notice of cancellation on the undersigned, in writing, in which event the County shall promptly return the good faith deposit. Payment for the notes shall be made in Federal Reserve funds. Accrued interest to the date of delivery of the notes shall be paid by the purchaser at the time of delivery. CUSIP NUMBERS: Cusip numbers have been applied for and will be printed on the notes at the expense of the County. The printing of incorrect Cusip numbers or the failure to print the Cusip numbers on the notes shall not constitute cause for the purchaser to refuse delivery of the notes. ADDITIONAL INFORMATION: Further information may be obtained from the County Treasurer at the address specified above or from John R. Axe or Brad S. Rutledge at Martin, Axe, Maxwell, Smith, Buhl. & Schwartz, 300 E. Long Lake Road, Suite 300, Bloomfield Hills, Michigan 48013, telephone number (313) 647-1500. THE RIGHT IS RESERVED TO REJECT ANY OR ALL BIDS. ENVELOPES: Envelopes containing the bids should be plainly marked "Proposal for General Obligation Limited Tax Notes." County Treasurer APPROVED: STATE OF MICHIGAN MUNICIPAL FINANCE COMMISSION - 19 - (For Registered Notes) EXHIBIT B OFFICIAL NOTICE OF SALE COUNTY OF STATE OF MICHIGAN GENERAL OBLIGATION LIMITED TAX NOTES, SERIES 1983 SEALED BIDS: Sealed bids for the purchase of General Obli- gation Limited Tax Notes, Series 1983, of the County of (the "County"), Michigan, of the par value of will be received by the undersigned at the office of the County Treasurer, until Michigan Time. on , 1983, at which time they will be publicly opened and read. IN THE ALTERNATIVE; Sealed bids will also be received on the same date and until the same time by an agent of the undersigned at the office of the Municipal Advisory Council of Michigan, 2135 First National Building, Detroit, Michigan 48226, where they will be publicly opened simultaneously. Bids opened at Detroit, Michigan, will be read first, followed by the alternate loca- tion. Bidders may choose either location to present bids and good faith checks, but not both locations. AWARD: The notes will be awarded to the successful bidder at a proceeding conducted by the County Treasurer approximately thirty minutes after all bids have been opened on that date. NOTE DETAILS: The notes will be fully registered notes of the denomination of $5,000 each; will bear interest from their date payable on November 1, 1983, and semi-annually thereafter; will be dated March 1, 1983; will be numbered from 1 upward, and will mature serially on May 1 in years and amounts as follows: YEAR AMOUNT 1984 1985 1986 PRIOR REDEMPTION: Notes maturing in the years 1984 and 1985 shall not be subject to redemption prior to maturity. Notes maturing on May 1, 1986, may be redeemed on any interest payment date on or after May 1, 1985, at the option of the County Treas- urer at par plus accrued interest to the redemption date. Notice of redemption shall be sent by first class mail to the registered holder of each note being redeemed at least thirty (30) days prior to the date fixed for redemption. Any defect in - 20 - note issue is a general obligation of the County, any notice shall not affect the validity of the redemption pro- ceedings. Notes so called for redemption shall not bear interest after the date fixed for redemption provided funds are on hand with a paying agent to redeem the same. INTEREST RATE AND BIDDING DETAILS. The notes will bear interest from their date at a rate or rates specified by the successful bidder, not exceeding % per annum, expressed in multiples of 1/8 or 1/20 of 1%, or any combination thereof. Interest on the notes of any maturity shall be at one rate only, and the difference between the highest and lowest rate of interest bid shall not exceed four percent (4%). NOTE REGISTRAR AND DATE OF RECORD. has been selected as Note Registrar for the notes. The Note. Registrar will keep records of the registered holders of the notes, serve as transfer agents for the notes, authenticate the original and any re-issued notes and will pay principal and interest to the registered holders of the notes as shown on the records on the applicable date of record. The date of record shall be October 1 with respect to payments made on November 1. and April 1 with respect to payments made on May 1. PURPOSE: The notes are issued for the purpose of estab- lishing the 100% Tax Payment Fund of the County for the 1982 tax year and for the purpose of establishing a $ 1983 Note Reserve Fund. PRIMARY SECURITY: The notes are primarily secured by: (1) all of the collections of the 1982 real property taxes due and payable to taxing units in the County, including the County, which were outstanding and uncollected on March 1, 19838 together with all interest thereon; (2) all of the property tax adminis- tration fees on such delinquent taxes, once the expenses of borrowing have been paid: and (3) any amounts which are received by the County from the taxing units within the County because of the uncollectability of such delinquent taxes. NOTE RESERVE FUND: In the event the primary security is insufficient to meet the prompt payment of the principal and interest on these notes when due, for any reason 8 the moneys in the 1983 Note Reserve Fund shall be used to make such payment. All moneys in the 1983 Note Reserve Fund shall be used solely for payment of principal and interest on the notes or for the pur- chase of notes for which the fund was established. Moneys in the 1983 Note Reserve Fund shall be withdrawn first for payment of principal and interest on notes before other County general funds are used to make the payments. When the 1983 Note Reserve Fund is sufficient to retire the notes and accrued interest thereon, it may be used for purchase of such notes on the market, or, if notes are not available, to retire notes when due. GENERAL OBLIGATION WITHOUT UNLIMITED POWER TO TAX. In addi- tion, this - 21 - secured by its full faith and credit, which shall include the limited tax obligation of the County, within applicable constitu- tional and statutory limits, and its general funds. THE COUNTY DOES NOT HAVE THE POWER TO LEVY ANY ADDITIONAL TAXES FOR THE PAYMENT OF THE NOTES IN EXCESS OF ITS CONSTITUTIONAL AND STATU- TORY LIMITS. (The following paragraph is optional and will be inserted in the Notice of Sale if the note issue qualifies for insurance.) NOTE INSURANCE: has issued a commitment for municipal bond insurance covering the notes. All bids shall be conditioned upon the issuance effective as of the date on which the notes are issued, of a policy of insurance by guaranteeing the payment of _principal and interest on the notes. Each note will bear a legend referring to the insurance. The purchaser, holder or owner is not authorized to make any statement regarding the insurance beyond those set out here and in the note legend. AWARD OF THE NOTES: For the purpose of awarding the notes, the interest cost of each bid will be computed by determining, at the rate specified therein, the total dollar amount of all interest on the notes from . 1983, to their maturity and deducting therefrom any premium or adding thereto any discount. The notes will be awarded to the bidder whose bid on the above computation produces the lowest interest to the County. No proposal for less than 98% of par, nor less than all the notes, will be considered. Each bidder, for the convenience of the County, shall state in his bid the net interest cost to the County, computed in the manner above specified. GOOD FAITH: A certified check, cashier's check or bank money order in the amount of $ , drawn upon an incorporated bank or trust company and payable to the order of the County Treasurer must accompany each bid as a guarantee of good faith on the part of the bidder, to be forfeited as liquidated damages if such bid is accepted and the bidder fails to take up and pay for the notes. No interest will be allowed on good faith deposits. The good faith check of the winning bidder will be promptly cashed, and the amount received therefor will be credited against the purchase price as of the date of delivery. Checks of unsuc- cessful bidders will be promptly returned to each bidder's repre- sentative or returned by registered mail. In the event the notes cannot be issued or delivered for any reason, the County will pay back to the successful bidder the principal amount of the good faith check without interest. LEGAL OPINION: Bids shall be conditioned upon the unquali- fied approving opinion of Martin, Axe, Maxwell, Smith, Buhl & Schwartz, attorneys of Bloomfield Hills, Michigan, approving the legality of the notes, a copy of which will be printed on the reverse side of each note, and the original of the opinion will be delivered without expense to the purchaser of the notes at the delivery thereof. - 22 7 DELIVERY OF NOTES: The County will furnish notes ready for execution at its expense at Detroit, Michigan The usual documents, including a certificate that no litigation is pending, affecting the issuance of the notes, will be deli- vered at the time of delivery of the notes. If the notes are not tendered for delivery by twelve o'clock noon, Michigan Time, on the 45th day following the date of sale, or the first business day thereafter, if said 45th day is not a business day, the suc- cessful bidder may on that day, or any time thereafter until delivery of the notes, withdraw his proposal by serving notice of cancellation on the undersigned, in writing, in which event the County shall promptly return the good faith deposit. Payment for the notes shall be made in Federal Reserve funds. Accrued interest to the date of delivery of the notes shall be paid by the purchaser at the time of delivery. CUSIP NUMBERS: Cusip numbers have been applied for and will be printed on the notes at the expense of the County. The printing of incorrect Cusip numbers or the failure to print the Cusip numbers on the notes shall not constitute cause for the purchaser to refuse delivery of the notes. ADDITIONAL INFORMATION: Further information may be obtained from the County Treasurer at the address specified above or from John R. Axe or Brad S. Rutledge at Martin, Axe, Maxwell, Smith, Buhl & Schwartz, 300 E. Long Lake Road, Suite 300, Bloomfield Hills, Michigan 48013, telephone number (313) 647-1500. THE RIGHT IS RESERVED TO REJECT ANY OR ALL BIDS. ENVELOPES: Envelopes containing the bids should be plainly marked "Proposal for General Obligation Limited Tax Notes." County Treasurer APPROVED: STATE OF MICHIGAN MUNICIPAL FINANCE COMMISSION - 23 - MR. CHAIRMAN, on behalf of the Finance Committee, I move the adoption of the foregoing resolutions. Finance Committee By: ACKNOWLEDGMENT OF DESIGNATION The undersigned, the Treasurer of the County of Oakland Michigan, hereby acknowledges and says that prior to the date of the adoption of the foregoing resolution, the Oakland County Delinquent Tax Revolving Fund was designated by the County Treasurer as the Oakland County 100% Tax Payment Fund, pursuant to Section 87b of Act 206 of the Michigan Public Acts of 1893, as amended. C. HUGH DOHANY Oakland County Treasurer AYES: LyNN-9-. ALLEN count* Clerk —26 - Moved by Page and supported by Nelson that all three resolutions be adopted. NAYS: None. (0) ABSENT: Caddel , Geary, Perinoff. (3) A sufficient majority having voted therefor, the three reso- lutions were adopted. STATE OF MICHIGAN ) ) SS. COUNTY OF OAKLAND ) I. Lynn D. Allen, Clerk of the County of Oakland and having a seal, do hereby certify that I have compared the annexed copy of Miscellaneous Resolutions 83050 , 83051 and 83052 adopted by the Oakland County Board of Commissioners at their meeting held on March 17 , 1983, with the original record thereof now remaining in my office, and that it is a true and correct transcript therefrom, and of the whole thereof. In- Testimoney Whereof; I have hereunto set my hand and affixed the seal of said: County at P9nI4ac. Michigan tils day of March . Moved by Page and supported by Nelson that all three resolutions be adopted. AYES: NAYS: None. (0) ABSENT: Caddell, Geary, Perinoff. A sufficient majority having voted therefor, the three reso- lutions were adopted. STATE OF MICHIGAN ) ) SS. COUNTY OF OAKLAND ) I. Lynn D. Allen, Clerk of the County of Oakland and having a seal, do hereby certify that I have compared the annexed copy of Miscellaneous Resolutions +V 83050 . 83051 and 83052 adopted by the Oakland County Board of Commissioners at their meeting held on MA rrh 17 , 1983. with the original record thereof now remaining in my office, and that it is a true and correct transcript therefrom, and of the whole thereof. In Testimoney Whereof, I have hereunto set my hand and affixed the seal of said County at Pontiac, Michigan this 17th day of March • 1983 . LYNN D. ALLEN County Clerk (3) - 26 -