HomeMy WebLinkAboutResolutions - 1977.10.11 - 133471977 8202 RESOLUTION NO. October II
RE: OAKLAND COUNTY WATER SUPPLY AND SEWAGE
DISPOSAL SYSTEMS FOR AVON TOWNSHIP
BY: PLANNING AND BUILDING COMMITTEE
TO: THE OAKLAND COUNTY BOARD OF COMMISSIONERS
MR. CHAIRMAN, LADIES AND GENTLEMEN:
WHEREAS, the Oakland County Board of Supervisors,
by Miscellaneous Resolution No. 5171, adopted on August 21,
1969, did approve the establishment of a sewage disposal and
water supply system to be known as the Oakland County Water
Supply and Sewage Disposal System for Avon Township to serve
all of the unincorporated areas in said Township; and
WHEREAS, pursuant to the same resolution of the Board
of Supervisors adopted August 21, 1969, and pursuant to a resolu-
tion adopted on July 23, 1969, by the governing body of the
Township of Avon (the participating municipality), the County
of Oakland and the participating municipality entered into a
Contract dated as of November 1, 1968, whereby the County agreed
to construct and finance the Oakland County Water Supply and
Sewage Disposal System for Avon Township, and the participating
municipality agreed to pay the cost thereof, based upon a pro-
ject cost of $14,500,000, and as represented by two series of
bonds issued by the County to finance said Oakland County Water
Supply and Sewage Disposal System for Avon Township, which
Contract is set forth in full in the aforesaid resolution of
the Board of Supervisors; and
WHEREAS, the County has issued two series of bonds
in the aggregate principal amount of $14,500,000 to finance
said Oakland County Sewage Disposal and Water Supply Bonds -,
Avon Township, Series A, dated May 1, 1970, in the principal
amount of $2,775,000, and the second series being the Oakland
County Sewage Disposal and Water Supply Bonds - Avon Township,
Series B, dated November 1, 1970, in the original principal
amount of $11,725,000; and
WHEREAS, the amount of the several principal maturi-
ties of each of the said series of bonds, dated May 1, and
November 1, 1970, respectively, outstanding and unpaid after
May 1, 1978, and the rate of interest payable thereon is as
follows:
Series A
$ 75,000 1979 at 6-3/4%
$500,000 1980/84 at 6-1/4%
$200,000 1985/86 at 6-1/2%
$475,000 1987/90 at 6-3/4%
$375,000 1991/93 at 6.9%
$425,000 1994/96 at 6.95%
$450,000 1997/99 at 7%
$2,500,000
Series B
$1,225,000 1979/82 at 5.80%
$1,600,000 1983/86 at 6%
$ 450,000 1987 at 6.10%
$ 475,000 1988 at 6.20%
$ 475,000 1989 at 6.30%
$ 525,000 1990 at 6.35%
$1,725,000 1991/93 at 6.40%
$1,275,000 1994/95 at 6-1/2%
$1,400,000 1996/97 at 6.55%
$1,400,000 1998/99 at 6.60%
$10,550,000
which bonds, and the coupons attached thereto, are subject to
redemption as a whole on May 1, 1978, at a premium of 3% of
the fact amount of said bonds, i.e. $75,000 for Series A and
$316,500 for Series B; and
WHEREAS, Sections 11 and 12 of Chapter VI of Act No.
202 of Michigan Public Acts of 1943, as amended (The Municipal
Finance Act) authorize the County to refund each of said series
of bonds by the issuance of refunding bonds within six months
prior to the date upon which each of said series of bonds may
be called for payment and redemption, as a whole, and if the
refunding results in a savings of interest cost to the County
of at least 1/2 of 1% per annum; and
• WHEREAS, there has been submitted to this Board of
Commissioners a report by Shannon and Company, its financial
consultant in connection with each series of the bonds now
outstanding showing that refunding of each series of said bonds
as of May 1, 1978, will result in an interest cost savings of
about 1% per annum and may be accomplished by the issuance of
$2,500,000 Series A and $10,550,000 Series B of refunding bonds,
which reports read as follows:
SITANNOZT AND COMPAN'T August 10, 1977
$2,500,000.00 OAKLAND COUNTY
SEWAGE DISPOSAL AND WATER SUPPLY BONDS
AVON TOWNSHIP, SERIES A
DATED MAY 1, 1970
INTEREST RATES
$ 75,000 1979 @ 6 3/473
$500,000 1980/84 @ 6k7.
$200,000 1985/86 @ 61/2%
$475,000 1987/90 @ 6 3/4%
$375,000 1991/93 @ 6.9%
$425,000 1994/96 @ 6.957.
$450,000 1997/99 @ 77.
Average Maturity of Bond
Issue from May 1978 12.0400 years
Interest Costs from May 1,
1978 to Maturity on
existing Bonds
Average Interest Rate on
Bonds to be Refunded
Interest Cost on New Bonds
if sold at 53/4%
Estimated Savings in Interest
Costs
Savings per Thousand of
Bonds Refunded
Costs of Refunding:
Premium $75,000
Estimated Fee of Dickinson,
Wright, McKean, Cudlip
& Moon 11,250
Fee of Shannon and Company 8,800
Other Expenses 3.000
Total Estimated Expenses
Cost per Thousand of Bonds
Refunded
Estimated Net Savings on
iing
$2,062,875.00
6.8534053%
$1,730,750.00
$ 332,125.00
132.85
S 98,050.00
39.22
$ 234,075.00
Estimated Net Savings per
Thousand of Bonds Refunded 93.63
The gross estimated savings in interest costs is equal to 3.39 times
the cost of the refunding.
27,600
17,350
3.500 $ 364,950,00
34.59
$ 531,750.00
8 50.40
SIIANNO:N AND COMPANY
$10,550,000.00 OAKLAND COUNTY
SEWAGE DISPOSAL AND WATER SUPPLY BONDS
AVON TOWNSIIIP, SERIES B
DATED NOVEMBER 1, 1970
August 10, 1977
INTEREST RATES
$1,225,00O1979/82 @5.30%
$1,600,000 1983/36 G 6%
$ 450,000 1987 @ 6.107.
$ 475,000 1988 @ 6.20%
$ 475,000 1989 @ 6.30%
$ 525,000 1990 @ 6.35%
$1,725,000 1991/93 @ 6.40%
$1,275,000 1994/95 @ 61/27.
$1,400,000 1996/97 @ 6.55%
$1,400,000 1998/99 @ 6.607.
Average Maturity of Bond
Issue from May 1978 12.696682 years
Interest Costs from May 1,
1978 to Maturity on
existing Bonds
Average Interest Rate on
Bonds to be Refunded
Interest Cost on New Bonds
if sold at 5 3/4%
Estimated Savings in Interest
Costs
Savings per Thousand of
Bonds Refunded
$8,598,825.00
6.4194289%
$7,702,125.00
$ 896,700.00
85.00
Costs of Refunding:
Premium
Estimated Fee of Dickinson,
Wright, McKean, Cudlip
& Moon
Fee of Shannon and Company
Other Expenses
Cost per Thousand of Bonds
Refunded
Estimated Net Savings on
Refunding
Estimated Net Savings per
Thousand of Bonds Refunded
$316,500
The gross estimated savings in interest costs is equal to 2.46 times
the cost of the refunding. •
; and
WHEREAS, there has been submitted to this Board of
Commissioners a schedule of each series of refunding bond
maturities which has been approved and adopted by the township
on which is also also set forth a schedule of the rate of
interest borne by each series of the present bonds and the
maximum rate of interest to be borne by each series of the
refunding bonds; and
WHEREAS, by approving and adopting said schedules
the township re-affirms its obligation to pay annually the
amount of each annual installment to the County, and in
addition thereto is to pay semi-annually, interest and paying
agent fees and other bond handling costs as determined pursuant
to said Contract of November 1, 1968, for each series of bonds,
and agrees to pay from sewer and water system funds on hand,
the costs of refunding of approximately $98,050 for Series
A and $364,950 for Series B; and
WHEREAS, the County is desirous of issuing refunding
bonds at the request of the township and in anticipation of
the payments to be made by the township under said Contract
of November 1, 1968, as re-affirmed for each series; and
WHEREAS, the Planning and Building Committee has
approved this bond resolution and recommended its adoption
by the Board of Commissioners.
THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS
OF OAKLAND COUNTY, MICHIGAN, as follows:
1. That the bonds of said County of Oakland, aggre-
gating the principal sum of Two Million Five Hundred Thousand
Dollars ($2,500,000) be issued for the purpose of refunding
the Series A bonds issued to finance said Oakland County Water
Supply and Sewage Disposal Systems for Avon Township which
bonds to be refunded are outstanding in the amount of $2,500,000
and are part of an issue known as "Oakland County Sewage Dis-
posal and Water Supply Bonds - Avon Township Series A" dated
May 1, 1970; that said refunding bonds shall be known as
"Oakland County Refunding Bonds - Avon Township - Series A"
and shall be dated January 1, 1978; shall be numbered con-
secutively in the direct order of their maturities from 1 up-
wards; sahll be in the denomination of $5,000 each; shall bear
interest at a rate or rates to be hereafter determined not
exceeding those set forth on the schedule of maturities herein
set forth, payable on November 1, 1978, and semi-annually there-
after on the first days of May and November in each year; and
shall mature on the first day of May in each year as follows:
SCHEDULE OF MATURITIES
$2,500,000 SERIES A
Year Amount Rate Year Amount Rate
1979 $ 75,000 6-1/4% 1989 $125,000 6-1/4%
1980 100,000 5-3/4% 1990 125,000 6-1/4%
1981 100,000 5-3/4% 1991 125,000 6.40%
1982 100,000 5-3/4% 1992 125,000 6.40%
1983 100,000 5-3/4% 1993 125,000 6.40%
1984 100,000 5-3/4% 1994 125,000 6.45%
1985 100,000 6% 1995 150,000 6.45%
1986 100,000 6% 1996 150,000 6.45%
1987 100,000 6-1/4% 1997 150,000 6-1/2%
1988 125,000 6-1/4% 1998 150,000 6-1/2%
1999 150,000 6-1/2%
2. That the bonds of said County of Oakland, aggregat-
ing the principal sum of Ten Million Five Hundred Fifty Thousand
Dollars ($10,550,000) be issued for the purpose of refunding
the Series B bonds issued to finance said Oakland County Water
Supply and Sewage Disposal Systems for Avon Township which
bonds to be refunded are outstanding in the amount of $10,550,000
and are part of an issue known as "Oakland County Sewage Disposal
and Water Supply Bonds - Avon Township, Series B", dated November
1, 1970; that said refundign bonds shall be known as "Oakland
County Refunding Bonds - Avon Township - Series B, and shall
be dated January 1, 1978; shall be numbered consecutively in
the direct order of their maturities from 1 upwards; shall
be in the denomination of $5,000 each; shall bear interest
at a rate or rates to be hereafter determined not exceeding
those set forth on the schedule of maturities herein set forth,
payable on November 1, 1978 and semi-annually thereafter on
the first days of May and November in each year; and shall
mature on the first day of May in each year as follows:
SCHEDULE OF MATURITIES
$10,550,000 SERIES B
Year Amount Rate Year Amount Rate
1979 $275,000 5.30% 1989 $475,000 5.80%
1980 300,000 5.30% 1990 525,000 5.85%
1981 300,000 5.30% 1991 525,000 5.90%
1982 350,000 5.30% 1992 575,000 5.90%
1983 350,000 5-1/2% 1993 625,000 5.90%
1984 400,000 5-1/2% 1994 625,000 6%
1985 400,000 5-1/2% 1995 650,000 6%
1986 450,000 5-1/2% 1996 700,000 6.05%
1987 450,000 5.60% 1997 700,000 6.05%
1988 475,000 5.70% 1998 700,000 6.10%
1999 700,000 6.10%
3. Bonds of each series maturing prior to May 1,
1994, shall not be subject to redemption prior to maturity.
Bonds of each series maturing on and after May 1, 1994, shall
be subject to redemption at the option of the county prior
to maturity on any one or more interest payment dates on and
after May 1, 1993. Bonds of each series so called for re-
demption shall be redeemed at the par value thereof and accrued
interest plus a premium on each bond computed as a percentage
of the face amount thereof in accordance with the following
schedule:
3% if called to be redeemed on or after May 1, 1993, but
prior, to May 1, 1996
2% if called to be redeemed on or after May 1, 1996, but
prior to May 1, 1999
1% if called to be redeemed on or after May 1, 1999, but
prior to maturity.
Notice of redemption shall be given to the holders of the bonds
to be redeemed by publication of such notice not less than
thirty (30) days prior to the date fixed for redemption, at
least once in a newspaper or publication circulated in the
City of Detroit, Michigan, which carries as a part of its
regular service, notices of the sale of municipal bonds. Bonds
so called for redemption shall not bear interest after the
date fixed for redemption, provided funds are on hand with
the paying agent to redeem the same. All bonds shall have
proper coupons attached thereto evidencing interest to their
respective dates of maturity.
4. That the principal of each series of said bonds
and the interest thereon shall be payable in lawful money of
the United States of America, at such bank and/or trust company
which qualifies as a paying agent under Federal or Michigan
law and which shall be designated by the original purchaser
of each series of the bonds. Such purchaser shall have the
right to name a similarly qualified co-paying agent.
5. That the Chairman of the Board of Commissioners
and the County Clerk, of the County of Oakland, are hereby
authorized and directed to execute said bonds for and on behalf
of the said county and to affix the seal of said county thereto,
and to execute the interest coupons to be attached to said
bonds by causing to be affixed thereto their facsimile signa-
tures; and that upon the execution of said bonds and attached
coupons, the same shall be delivered to the Treasurer of said
county who is hereby authorized and directed to sell and to
deliver said bonds and attached coupons to the purchaser there-
of, upon receipt of the purchase price therefor.
6. That the said bonds are to be issued pursuant
to the provisions of Act No. 202 of the Michigan Public Acts
of 1943, as amended, in anticipation of the payments to become
due to the county from the Township of Avon under said Contract
of November 1, 1968, and the schedule of refunding bond maturities
and expenses for each series, all approved and adopted by said
Township of Avon, which payments are in the principal amount
of each series of the bonds with interest thereon and the
expenses of refunding as therein provided. As provided in
said Contract, the full faith and credit of the Township of
Avon is pledged to the making of the said payments when due,
and in addition there is hereby pledged, as authorized in said
Act No. 202, the full faith and credit of the County of Oakland,
as issuer, to the payment of each series of the refunding bonds,
both principal and interest, when due.
7. That all moneys paid to the County by the
Township of Avon pursuant to said Contract of November 1,-1968,
and exhibits thereto and schedules, shall be set aside by the
County Treasurer in a separate fund and bank account to be
used solely for the payment of the principal of and interest
on each series of the bonds herein authorized and the refund-
ing expenses.
8. That each obligation of said township to make
the payments set forth in the Contract, as supplemented by
the schedule of principal and interest maturities adopted by
the Township of Avon with respect to each series of Oakland
County Refunding Bonds - Avon Township, - Series A and Series
B, each dated January 1, 1978, in the amount of $2,500,000
for Series A and $10,550,000 for Series B, is a separate but
equal obligation and on a parity as a pledge of full faith
and credit with each other obligation of said township to make
the payments set forth in the Contract, as supplemented by
the schedule of principal and interest maturities adopted by
the township, in anticipation of which each series of the
Oakland County Refunding Bonds - Avon Township, dated January
1, 1978, are issued. The pledge by the County of Oakland of
its full faith and credit to payment of both series of said
refunding bonds, as authorized in said Act No. 185 and said
Act No. 202, respectively, applies equally and without pre-
ference or priority to the bonds of each series.
9. That bonds of each series and attached coupons
shall be substantially in the following form:
UNITED STATES OF AMERICA
STATE OF MICHIGAN
COUNTY OF OAKLAND
Number $5,000
OAKLAND COUNTY REFUNDING BOND - AVON
TOWNSHIP, SERIES
KNOW ALL MEN BY THESE PRESENTS, that the County of
Oakland, Michigan, hereby acknowledges itself indebted and
for value received, promises to pay to the bearer hereof the
sum of
FIVE THOUSAND DOLLARS
on the first day of May, A.D. 19_, together with interest
thereon from the date hereof until paid, at the rate of
) per centum per annum, payable
November 1, 1978, and thereafter semi-annually on the first
days of May and November in each year. Both principal and
interest hereof are payable in lawful money of the United
States of America at
, in the City of
upon presentation and surrender of this bond and the coupons
hereto attached as they severally mature.
This bond is one of a series of bonds of like date
and tenor except as to maturity
numbered consecutively in the direct order of their maturities
from 1 to , both inclusive, aggregating the principal
sum of Dollars
($ ), issued under and pursuant to and in full
conformity with the Constitution and Statutes of the State
of Michigan, and especially Act No. 202 of the Michigan Public
Acts of 1943, as amended, for the purpose of refunding the
Oakland County Sewage Disposal and Water Supply Bonds - Avon
Township, Series , dated 1, 1970, issued to
defray part of the cost of the Oakland County Water Supply
and Sewage Disposal Systems for Avon Township in the Township
of Avon.
Bonds of this series maturing prior to May 1, 1994,
are not subject to redemption prior to maturity. Bonds matur-
ing on or after May 1, 1994, shall be subject to redemption,
at the option of the county prior to maturity on any one or
more interest payment dates on and after May 1, 1993. Bonds
called for redemption shall be redeemed at the par value there-
of and accrued interest plus a premium on each bond computed
as a percentage of the face amount thereof in accordance with
the following schedule:
3% if called to be redeemed on or after May 1, 1993, but
prior to May 1, 1996
2% if called to be redeemed on or after May 1, 1996, but
prior to May 1, 1999
1% if called to be redeemed on or after May 1, 1999, but
prior to maturity.
Notice of redemption shall be given to the holders of bonds
called for redemption by publication of such notice not less
than thirty (30) days prior to the date fixed for redemption,
at least once in a newspaper or publication circulated in the
• City of Detroit, Michigan, which carries as a part of its
regular service notices of the sale of municipal bonds. Bonds
so called for redemption shall not bear interest after the
date fixed for redemption, provided funds are on hand with
the paying agent to redeem the same.
This refunding bond as to both principal and interest,
is payable from moneys to be paid to the County of Oakland
by the Township of Avon pursuant to a certain Contract dated
November 1, 1968, between the County of Oakland and said
Township, whereby the said Township agrees to pay to the said
county the $14,500,000 cost of said Oakland County Water Supply
and Sewage Disposal Systems for Avon Township in annual install-
ments in the same amounts as the annual maturities of its bonds
and semi-annually to pay the amount of the interest and bond
handling charges, such payments to be made at least thirty
(30) days prior to the respective due dates specified in the
bonds of the county issued to defray said cost. The full faith
and credit of said Township is pledged for the prompt payment
of its obligation pursuant to said Contract, and in addition,
by affirmative vote of three-fifths (3/5ths) of the members-
elect of its Board of Commissioners, the full faith and credit
of the County of Oakland is pledged to the payment of the bonds,
principal and interest, when due, all on a parity and without
priority between the bonds of the County of Oakland issued
for the same purpose in the amount of $2,775,000, dated May
1, 1970, and $11,725,000, dated November 1, 1970. The County
Sewage Disposal and Water Supply Bonds - Avon Township, Series
, dated 1, 1970, in the original princi-
pal amount of $ , are the bonds refunded by this
bond and the other bonds of this refunding series, and the
Township of Avon has approved and adopted a schedule of the
principal and interest maturities to be paid by it on account
of these refunding bonds in lieu of the payments heretofore
contracted to be made on account of said Series bonds.-
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 the Constitution
and Statutes of the State of Michigan, and that the total in-
debtedness of said county, including this series of bonds,
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
signed in its name by the Chairman of said Board of Commis-
sioners and by the County Clerk of the county, and its corporate
seal to be affixed hereto, and has caused the annexed interest
coupons to be executed with the facsimile signatures of said
Chairman and County Clerk, all as of the first day of January,
A.D. 1978.
COUNTY OF OAKLAND, MICHIGAN
By
Chairman of its Board of Commissioners
By
Its County Clerk
(SEAL)
(COUPON)
Number
On the first day of , A.D. 19 ,
the County of Oakland, Michigan, will pay to the bearer hereof
the sum shown hereon in lawful money of the United States of
America at the
in the City of , same being
the interest due on that day on its Oakland County Refunding
Bond - Avon Township - Series , dated January 1, 1978,
No
(FACSIMILE) (FACSIMILE)
County Clerk Chairman of the Board of Commissioners
10. That the said bonds shall not be issued until
the Municipal Finance Commission of the State of Michigan shall
have first issued its order granting permission to so do, as
provided in Act No. 202 of the Michigan Public Acts of 1943,
as amended, and the County Treasurer is hereby authorized and
directed to make application to said commission for the issuance
of such order and approval of the following notice of sale.
11. That the County Treasurer is hereby authorized
to sell each series of said bonds at not less than par and
accrued interest in accordance with the laws of this state
and to do all things necessary to effect the sale and issuance
of each series of said bonds, subject to the provisions of
this resolution and that sealed proposals for the purchase
of each series of Oakland County Refunding Bonds - Avon Town-
ship Series A and Series B, to be dated January 1, 1978, be
received up to a time to be later determined by the County
Treasurer and that notice thereof be published in accordance
with law in The Bond Buyer and in the Oakland Press, which
notice shall be substantially in the following form:
OFFICIAL
NOTICE OF SALE
$2,500,000 - Series A
$10,550,000 - Series B
COUNTY OF OAKLAND
STATE OF MICHIGAN
OAKLAND COUNTY REFUNDING BONDS -
SERIES A AND SERIES B
SEALED BIDS for the purchase of the above bonds will be received
by the undersigned at the Oakland County Service Center, 1200
North Telegraph Road, in the City of Pontiac, Oakland County,
Michigan, on the day of
1978, until o'clock .M., Eastern Time,
at which time and place said bids will be publicly opened and
read.
BOND DETAILS: Each Series of bonds will be coupon bonds of
the denomination of $5,000 each, dated January 1, 1978, numbered
in direct order of maturity from 1 upwards and will bear interest
at a rate or rates to be hereafter determined not exceeding
those set forth in the schedule of maturities herein set forth,
payable on November 1, 1978, and semi-annually thereafter.
Said bonds will mature on the 1st day of May, as
SERIES A
Year Amount Rate Year Amount Rate
1979 $ 75,000 6-1/4% 1989 $125,000 6-1/4%
1980 100,000 5-3/4% 1990 125,000 6-1/4%
1981 100,000 5-3/4% 1991 125,000 6.40%
1982 100,000 5-3/4% 1992 125,00D 6.40%
1983 100,000 5-3/4% 1993 125,000 6.40%
1984 100,000 5-3/4% 1994 125,000 6.45%
1985 100,000 6% 1995 150,000 6.45%
1986 100,000 6% 1996 150,000 6.45%
1987 100,000 6-1/4% 1997 150,000 6-1/2%
1988 125,000 6-1/4% 1993 150,000 6-1/2%
-1999 150,000 6-1/2%
follows: follows:
SERIES B
Year Amount Rate Year Amount Rate
1979 $275,000 5.30% 1989 $475,000 5.80%
1980 300,000 5.30% 1990 525,000 5.85%
1981 300,000 5.30% 1991 525,000 5.90%
1982 350,000 5.30% 1992 575,000 5.90%
1983 350,000 5-1/2% 1993 625,000 5.90%
1984 400,000 5-1/2% 1994 625,000 6%
1985 400,000 5-1/2% 1995 650,000 6%
1986 450,000 5-1/2% 1996 700,000 6.05%
1987 450,000 5.60% 1997 700,000 6.05%
1988 475,000 5.70% 1998 700,000 6.10%
1999 700,000 6.10%
PRIOR REDEMPTION: Bonds of each series maturing on and after
May 1, 1994 shall be subject to redemption prior to maturity
at the option of the County, on any one or more interest pay-
ment dates on or after May 1, 1993, at par and accrued interest
to the date fixed for redemption, plus a premium as follows:
3% if calledto be redeemed on or after May 1, 1993, but
prior to May 1, 1996,
2% if called to be redeemed on or after May 1, 1996, but
prior to May 1, 1999,
1% if called to be redeemed on or after May 1, 1999, but
prior to maturity.
Thirty days notice of redemption shall be given by
publication, at least once in a newspaper or publication circulated
in the City of Detroit, Michigan, which carries as a part of
its regular service, notices of the sale of municipal bonds.
Bonds so called for redemption shall not bear interest after
the date fixed for redemption, provided funds are on hand with
the paying agent to redeem the same.
PAYING AGENT: Both principal and interest of each series shall
be payable at a bank or trust company located in Michigan qualified
to act as paying agent under State or United States law, to
be designated by the original purchaser of each series of the
bonds, which shall be subject to approval of the undersigned.
A co-paying agent similarly qualified and located anywhere
may also be so designated.
PURPOSE AND SECURITY: These refunding bonds of each series
as to both principal and interest, are payable from moneys
to be paid to the County of Oakland by the Township of Avon
pursuant to a certain Contract dated November 1, 1968, between
the County of Oakland and said Township, whereby the said
Township agrees to pay to the said county the $14,500,000 cost
of the Oakland County Water Supply and Sewage Disposal Systems
for Avon Township in annual installments in the same amounts
as the annual maturities of each series of its bonds and semi-
annually to pay the amount of the interest and bond handling
charges, such payments to be made at least thirty (30) days
prior to the respective due dates specified in each series
of the bonds of the county issued to defray said cost. The
full faith and credit of said Township is pledged for the prompt
payment of •its obligation pursuant to said Contract and in
addition, by affirmative vote of three-fifths (3/5ths) of the
members-elect of its Board of Commissioners, the full faith
and credit of the County of Oakland is pledged to the payment
of each series of the bonds, principal and interest, when due,
all on a parity and without priority between the bonds of the
County of Oakland issued for the same purpose in the amount
of $2,775,000, dated May 1, 1970, and $11,725,000, dated
November 1, 1970. The Oakland County Sewage Disposal and
Water Supply Bonds - Avon Township Series A, dated May 1, 1970,
in the original principal amount of $2,775,000, and the Oakland
County Sewage Disposal and Water Supply Bonds - Avon Township,
Series B, dated November 1, 1970, in the original principal
amount of $11,725,000, are the bonds refunded by these bonds
of each of these refunding series, and the Township of Avon
has approved and adopted a schedule of the principal and
interest maturities to be paid by it on account of each series
of these refunding bonds in lieu of the payments heretofore
contracted to be made on account of said bonds of Series A
and Series B.
FULL FAITH AND CREDIT OF COUNTY: Pursuant to resolution adopted
by its Board of Commissioners, the County of Oakland has pledged
its full faith and credit for the payment of principal of and
interest on the bonds.
GOOD FAITH: A certified or cashier's check in the amount of
$50,000 for Series A and $211,000 for Series B, drawn upon -
an incorporated bank or trust company and payable to the order
of the Treasurer of the County must accompany the bid for each
series bid as a guarantee of good faith on the part of the
bidder, to be forfeited as liquidated damages if such bid be
accepted and the bidder fails to take up and pay for the bonds.
No interest shall be allowed on the good faith checks and checks
of the unsuccessful bidders will be promptly returned to each
bidder's representative or by registered mail. The good faith
check of the successful bidder will be immediately cashed and
payment for the balance of the purchase price of each series
of the bonds shall be made at the closing.
AWARD OF BONDS: The bonds of each series will be awarded to
the bidder whose bid produces the lowest interest cost computed
by determining, at the rate or rates specified in the bid,
the total dollar value of all interest on the series of bonds
from May 1, 1978, to their maturity and deducting therefrom any
premium. A bidder may bid on one or both series of bonds but
in separate bids and bids for each series will be computed,
compared and awarded separately. No conditions in bids tying
the two series together in any way will be accepted.
CUSIP: CUSIP number have been applied for and will be imprinted
on all bonds of each issue at the issuer's expense. An im-
properly imprinted number will not constitute basis for the
purchaser to refuse to accept delivery.
LEGAL OPINION: Bids shall be conditioned upon the unqualified
approving opinion of Dickinson, Wright, McKean, Cudlip & Moon,
attorneys of Detroit, Michigan, a copy of which opinion will
be printed on the reverse side of each bond, and the original
of which will be furnished without expense to the purchaser
of the bonds at the delivery thereof.
DELIVERY OF BONDS: The County will furnish bonds ready for
execution at its expense. Bonds of each series will be
delivered without expense to the purchaser at New York, New
York, Chicago, Illinois, or Detroit, Michigan. The usual closing
documents, including a certificate that no litigation is pend-
ing affecting the issuance of the series of bonds, will be
delivered at the time of the delivery of each series of the
bonds. If a series of the bonds is not tendered for delivery
by twelve o'clock noon, Eastern Time, on the 45th
day following the date of sale, or the first business day there-
after if said 45th day is not a business day, the successful
bidder may on that day, or any time thereafter until delivery
of the bonds, withdraw his proposal by serving notice of can-
cellation, in writing, on the undersigned in which event the
County shall promptly return the good faith deposit. Payment
for the bonds of each series shall be made in Federal Reserve
funds. Accrued interestto the date of delivery of each series
of the bonds shall be paid by the purchaser at the time of
delivery.
FINANCIAL CONSULTANT: Further information with respect to
said bonds may be obtained from Shannon & Co., 2012 City National
Bank Building, Detroit, Michgian, 48226. Telephone (313) 965-
1855,
THE RIGHT IS RESERVED TO REJECT ANY OR ALL BIDS.
ENVELOPES: containing the bids should be plainly marked "Proposal
for Avon Township Refunding Bonds, Series ".
Oakland County Treasurer
DATED: , 1978.
, 1978. APPROVED:
STATE OF MICHIGAN
MUNICIPAL FINANCE COMMISSION
12. M1 resolutions and parts of resolutions, insofar as the
same may be in conflict herewith, are hereby rescinded.
Mr. Chairman, on behalf of the Planning and Building Committee,
move the adoption of the foregoing resolution.
Planning, and rBuilding Committee
(k)
Richard R. Wilcox, Chairman
ADOPTED:
YEAS: Peterson, Price, Simson, Wilcox, DiGiovanni, Doyon, Fortino, Gabler,
Gorsline, Hoot, Kasper, Kelly, Lanni, McConnell, McDonald, Moffitt,
Montante, Moxley, Murphy, Olson, Patterson, Pernick. (22)
NAYS: None. (0)
ABSENT: Aaron, Daly, Page, Perinoff, Roth. (5)
STATE OF MICHIGAN )
COUNTY OF OAKLAND)
SS:
I, the undersigned, the duly qualified and acting
County Clerk of the County of Oakland, do hereby certify that
the foregoing is a true and complete copy of a resolution
adopted at a regular meeting of the Oakland County Board of
Commissioners, held on the 11th day of October. , 1977,
the original of which is on file in my office.
IN WITNESS WHEREOF, I have hereunto affixed my
official signature this 11th day of October . A.D. 1977.
Lynn O. Allen: County Clerk