HomeMy WebLinkAboutResolutions - 1981.01.15 - 14719RESOLUTION 8002
RE: ADOPTION OF AMENDMENTS TO REVENUE
BOND ORDINANCE
BY:
TO: THE OAKLAND COUNTY BOARD OF COMMISSIONERS
MR. CH N, LADIES AND GENTLEMEN:
WHEREAS, by reason of favorable construction bids
it is now possible to reduce the estimated cost of the Oakland
-Orion Sewage Disposal System and to reduce the aggregate
amount of the revenue bonds to be issued by the County of
Oakland to finance the acquisition of said System as set forth
in the Amendment No. 1 to the Contract for Services, dated as
of August 1, 1980, between the County of Oakland and the Town-
ship of Orion pertaining to said System which Amendment No 1
to the Contract for Services is submitted herewith; and
WHEREAS, it is necessary to amend the Revenue Bond
Ordinance heretofore adopted on August 14, 1980, as Ordinance
No. 21 pertaining to the Oakland-Orion Sewage Disposal System.
NOW THEREFORE BE IT RESOLVED that the following
Amendment to Ordinance No 21 be and the same is hereby adopted:
ORDINANCE NO. 22
AN ORDINANCE TO AMEND ORDINANCE
NO. 21, ENTITLED:
"AN ORDINANCE TO PROVIDE FOR THE
ESTABLISHMENT, OPERATION AND MAIN-
TENANCE OF THE OAKLAND-ORION S7W[::17,
DISPOSAL SYSTEM TO SERVE AREAS
THE TOWNSHIP OF ORION AND TOWITM ,'
OF OAKLAND IN SAID COUNTY; TO
PROVIDE FOR THE ACQUISITION OF NEW
AND THE CONNECTION TO EXISTING
SEWAGE DISPOSAL FACILITIES AS A
PART OF SAID SYSTEM; TO PROVIDE FOR
THE ISSUANCE AND SALE OF R7VENUE
BONDS TO DEFRAY THE COST T7E77.07;
TO PROVIDE FOR THE RETIREMIT- 7\ND
SECURITY OF SAID BONDS; AND TO
PROVIDE FOR OTHER MATTERS RELATIVE
TO SAID SYSTEM AND SAID BONDS"
THE COUNTY OF OAKLAND, IN THE STATE OF MICHI
ORDAINS:
Section 1. Sections l(f)., 3, 4, 14, 18, 19, 20,
22 and 25 of Ordinance No: 21 of the ordinances of the County
of Oakland, as adopted on August 14, 1980, are hereby each
amended to read as follows:
Section 1 (f) The term "Contract for Services" shall
be construed to mean the contract entered into between the
County and Orion entitled Oakland-Orion Sewage Disposal System
Contract for Services, dated as of August 1, 1980, and set
forth in full in Ordinance No. 21 of the ordinances of the
County of Oakland, dated as of August 14, 1980, as said
Contract for Services is amended by Amendment No. 1 there
dated as of January 1, 1981, in form substantially as follows:
C-7,AN
AMENDMENT NO. 1 TO
OAKLAND-ORION SEWAGE DISPOSAL SYSTEM
CONTRT FOR SERVICES
This Amendment No 1 to Contract was made and entered
into as of the 1st day of January, 1981, by and between the
COUNTY OF OAKLAND, a Michigan county corporation, acting by and
through its County Executive and Department of Public Works,
party of the first part, (hereinafter sometimes referred to as
the "County" and the "Department of Public Works"), and the
TOWNSHIP OF ORION, a Michigan township corporation located in
the County of Oakland (hereinafter referred to as the "Township"),
party of the second part, all in the State of Michigan.
WHEREAS, the County is presently engaged in carrying
out proceedings pursuant to Act No. 94 of the Michigan Public
Acts of 1933, as amen d, to finance, construct and operate a
sanitary sewer as an extension of the Paint Creek Interceptor
(herein sometimes called the "Interceptor") in the Clinton-Oakland
Sewage Disposal System (herein sometimes called the "System"), a
sewage disposal system established by the County pursuant to Act
No. 185 of the Michigan Public Acts of 1957, as amended, and more
recently extended and enlarged by the County pursuant to Act No.
342 of the Michigan Public Acts of 1939, as amended; and
WHEREAS, the contracts and agreements among the County
and the Township and other units of government in the County
pertaining to the Paint Creek Interceptor in the Clinton-Oakland
Sewage Disposal System permit the County and the Township to
acquire additional sewage disposal facilities as extensions of
and connections to said Interceptor and System within the desig-
nated service areas and districts thereof; and
WHEREAS, the County and the Township ente
the Oakland-Orion Sewage Disposal System Contract for SerNi;io-,
dated as of August 1, 1980, (herein sometimes called "Contract
for Services"); and -
WHEREAS, the County by Revenue Bond Ordinance No. 21
enacted by its Board of Commissioners on August 14, 1980, and
by resolutions duly adopted, pursuant to the ::.(:)W7L7, vested in
it under the provisions of Act No. 94, Public Acts of Michigan
of 1933, as amended, has established and intends to finance the
acquisition of the "Oakland-Orion Sewage Disposal System"
(hereinafter referred to as the "Oakland-Orion System") for. tin
purpose of collecting, transporting and disposing of sanitari
sewage emanating from the areas and in the facilities substantially
as shown on Exhibit "A" to said Contract for Services, the cost
of which Oakland-Orion System is estimated as set forth on Exhibit
"B" attached to said Contract for Services; and
WHEREAS, the County has obtained construction bids for
the facilities of the said Oakland-Orion System (herein sometimes
referred to as the "project") which construction bids are sub-
stantially lower than the estimated costs so that a new estimate
of cost has now been prepared which revised estimate of cost is
set forth herein as Revised Exhibit "B" attached hereto and by
this reference made a part hereof; and
WHEREAS, the revision in costs has necessitated a
revision of the schedule of payments to be made by the Township
to the County pursuant to the Contract for Services, which'
revised schedule of payments is set forth herein as Revised
Exhibit "C" attached hereto and by this reference made a part
hereof; and
WHEREAS, other amendments to the Contract for Ser
are proposed as herein set forth,
. NOW, THEREFORE, in consideration of the premises
the covenants of each, the parties hereto agree as follows:
1. Revised Exhibit "B" and Revised Exhibit "C", here-
unto attached, are hereby each approved and adopted in the plae:
and stead of Exhibit "B" and Exhibit "C" attached to the Contrue
for Services and any and all references to Exhibit "B" or
Exhibit "C" in said Contract for Services shall refer here
to the Revised Exhibit "B" and Revised Exhibit "C" as hereu
attached.
2. The change in the amount of the revenue bonds to
be issued by the County from $4,850,000, as stated in paragraph
3.b. of the Contract for Services, to $2,525,000, as set forth
on Revised Exhibit "B" hereunto attached, is approved and adopted.
3. Paragraphs 9 and 10 of the Contract for Services
are hereby amended for purposes of clarity to read as follows:
9. The Township shall also pay to the County, from
time to time, as requested in writing the following:
a. Any increases in the amounts shown on
Revised Exhibit "C" made necessary by
reason of increased costs of the Oakland-
Orion System and/or increased amounts of
revenue bonds issued by the County or
made necessary by reason of increases in
item 8.c. above.
b. Payments required to replace or
replenish funds spent from or taken
out of any reserves as provided in
the revenue bond ordinance(s) of the
County.
C, Payments required for emergency repairs
to or replacement of facilities of the
Oakland-Orion System.
d. Sewage disposal and operation and
maintenance costs of the Paint Creek
Interceptor and the Clinton-Oakland
Sewage Disposal System as established
from time to time by the County.
In addition, the Township has agreed herein, as
to pay or to provide for payment of general expenses of main-
tenance of the Oakland-Orion System and of its operation and
use to provide sewage disposal services in the Township. The
Township hereby acknowledges as a customer and wholesale user
of the Oakland-Orion System its full faith and credit general
obligation hereby created to make payments to the County as
provided in this Contract and agrees in each year to provide in
its water or sewer fund budget or in its general fund budget, as
a first budget priority, for the payment of its obligations
set forth in and incurred pursuant to this Contract, and
especially Revised Exhibit "C" thereto.
10. If the Township does not make the payments herein
provided within 30 days after the due date specified, then there
shall be added to such charges a penalty of one per cent (1%) for
IN WITNESS WHEREOF, the parties hereto have cauFd this
Amc!mdment No 1 to be executed, and delivered by their re'ive
duly authorized officers, all as of the day and year firs,
written.
COUNTY OF OAKLAND
on behalf of the Oakland-Orion Sewage
Disposal System
By
County Executive
TOWNSHIP OF ORION
By
Supervisor
And
Township Clerk
312.9n
0 -
J.00
9(1,n017.
135,000,
38 s fj00,0
2,450.00
10,000.nn
325,000.i
169,867.01
357,708.00
$2,525,000.00
By
OAKLAND-ORION SEWAGE DISPOSAL SYSTEM
ESTIMATE OF COST
Construction Cost $1,092,113.00
Contracted Services - Project Development;
Consulting Engineer
Soil Borings
144,000.00
12,000.00
Legal and Financial Services:
Legal Services
Contracts with private users and
Township Ordinances
Financial Consultant
Bond Prospectus
Bond Printing
Publication
County Services - Project Development:
Engineering
Easement Acquisition
Construction Inspection
Administration
Soil Erosion Permit
Administration, Orion Township
Capitalized Reserve
Contingency
Estimated Capitalized Interest
(7/1/81; 1/1/82 & 7/1/82)
Total Project Cost
I hereby estimate the period of usefulness of this facility
to be forty (40) years and upwards.
JOHNSON AND ANDERSON, INC.
EXHIBIT "B" (Revised 12/23/80)
OAKLAND-ORION SEWAGE DISPOSAL SYSTEM
Schedule of Annual I'vfcrt
Var
Principal Payment
June 1
1982 $ 50,000.00
1983 50,000.00
1984 50,000.00
1985 50,000.00
1986 75,'00.00
1987 75,000.00
1988 75,000.00
1989 75,000.00
1990 75,000.00
1991 75,000.00
1992 75,000.00
1993 100,000.00
1994 100,000.00
1995 100,000.00
1996 100,000.00
1997 100,000.00
1998 100,000.00
1999 100,000.00
2000 100,000.00
2001 100,000.00
2002 100,000.00
2003 100,000.00
2004 100,000.00
2005 100,000.00
2006 100,000.00
2007 100,000.00
2008 100,000.00
2009 100,000.00
2010 100,000.00
Total $2,525,000.00
In addition the Township shall pay on June 1 and December 1 to
the County interest (not capitalized) on the unpaid installments
scheduled above at the rate at which interest is due on the revenue
bonds of the County plus paying agent fees and other bond adminis-
tration costs payable by the County.
EXHIBIT "C" (Revised 12/23/80)
Section 3. The County does hereby adopt the said
engineer's estimate of forty years and upwards as the period
of usefulness of said project and also the said engineer's
estimate of Two Million Five Hundred Twenty-Five Thousand
Dollars ($2,525,000) as the cost of said project, both of
which estimates are on file with the County Clerk.
Section 4. There are hereby authorized to be issvir'7
and sold pursuant to the provisions of Act No. 94, Michigan
Public Acts of 1933, as amended, revenue bonds in the aggre-
gate principal sum of Two Million Five Hundred Twenty-Five ,
Thousand Dollars ($2,525,000) for the purpose of defraying the
cost of the said project. Said bonds shall be known as County
of Oakland "Oakland-Orion Sewage Disposal System Revenue Bonds";
shall be dated as of February 1, 1981; shall be numbered con-
secutively in the direct order of their maturities from 1 to
505, both inclusive; shall be coupon bonds in the denomination
of $5,000 each; shall be registrable as to principal only, in
the manner hereinafter set forth in the bond form; shall bear
interest at a rate or rates to be hereafter determined not
exceeding 10% per annum, payable on July 1, 1981, and thereafter
semi-annually on the first days of January and July in each
year; and shall mature on July first in each year as follows:
1982 - $ 50,000
1983 - 50,000
1984 - 50,000
1985 - 50,000
1986 - 75,000
1987 - 75,000
1988 - 75,000
1989 - 75,000
1990 - 75,000
1991 - 75,000
1992 -
1993 -
1994 -
1.995 -
1996 -
1997 -
1998 -
1999 -
2000 --
2001 -
75,000 2002 - $ 100,000
100,000 2003 - 100,000
100,000 2004 - 100,000
100,000 2005 - 100,000
100,000 2006 - 100,000
100,000 2007 - 100,000
100,000 2008 - 100,000
100,000 2009 - 100,000
100,000 2010 - 100,000
100,000
The bonds of said issue maturing in the years 1990 thru 2010, shll
be subject to redemption prior to maturity, at the option !af the
County, in any order, on any one or more interest payment dates on
and after July 1, 1989. Each bond called for redemption shall be
redeemed at the par value thereof and accrued interest, plus a
premium in accordance with the following schedule, to-wit:
$250 if called to be redeemed on or after July 1, 1989, but
prior to July 1, 1994
$200 if called to be redeemed on or after July 1, 1994, but
prior to July 1, 1998
$150 if called to be redeemed on or after July 1, 199:, but
prior to July 1, 2002
$100 if called to be redeemed on or after July 1, 2002, but
prior to July 1, 2006
$ 50 if called to be redeemed on or after July 1, 2006, 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 serivce,
notices of the sale of municipal bonds: Provided, that where any
bond shall be registered, then notice of the redemption thereof
shall be given by registered or certified United States mail
addressed to the registered holder thereof at the address shown on
the registration books of the paying agent, which notice shall be
mailed not less than thirty (30) days prior to the date fixed for
redemption. 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.
The principal of said bonds and the interest thereon
shall be payable in lawful money of the United States of America at
such bank or trust company which qualifies as paying agent under
Federal or Michigan law and is designated by dlc
purchaser of the bonds, upon presentation and surrender of said
bonds and attached coupons as they severally mature.
Section 14. The revenues of the system are hereby
pledged for the purpose of the following funds, and as collected
shall be set aside into a fund to be known as the "Receiving Fund"
of the system, and shall be transferred therefrom periodically
into separate and special funds, as follows:
1. Operation and Maintenance Fund .. Out of the revenues
in the Receiving Fund, there shall be first set aside in each
quarter into a fund to be designated "Operation and Maintenance
Fund", a sum sufficient to provide for the payment for the next
quarter of all current expenses of administration by the Cceet on
account of the System. The term "current expenses of
administration" shall be construed to include all reasonable and
necessary costs incurred on account of the issuance and payment of
the bonds and a proportionate share of the cost of operating the
County Executive and Department of Public Works (including without
limitation salaries, supplies and rent) as determined on the basis
of actual cost as described in the Contract for Services, but
shall exclude depreciation and payments into the Bond and Interest
Redemption Fund.
2. Bond and Interest Redemption Fund. Out of the
remaining revenues in the Receiving Fund, there shall be next set
aside each quarter into a fund to be designated "Bond and Interest
Redemption Fund", a sum proportionately sufficient to provide for
the payment as the same beor', cue of the next maturing pr'
and interest on each issue of bonds then payable from the rev•-1
of the System: Provided, that the amount so set aside for intere,,
on the bonds herein authorized, in each quarter during the first
six (6) months of each fiscal year, shall not be less th n on-'
(1/2) of the total amount of interest (not capitaVz matur!
on the following July first, and during ,' "ast six (6) months of
each fiscal year, shall not be less thail (1/2) of the
total amount of interest (not capitalized) maturing on the
following January first, and the amount so set aside for principal
on the bonds herein authorized, in each quarter during each fiscal
year, shall not be less than one-fourth (1/4) of the amount of
principal maturing on the July first immediately following such
fiscal year, and if there shall be any deficiency in the amount
previously set aside, then the amount of such deficiency shall be
added to the current requirement. There is hereby appropriated
from the proceeds of the bonds for the purpose of creating a
reserve in said Bond and Interest Redemption Fund, for the bonds
herein authorized, the sum of $325,000. If at any time said
reserve shall be less than $325,000, then there shall be set aside
in said reserve quarterly a sum sufficient to restore said reserve
to $325,000 at the earliest possible time. If any additional
bonds of equal standing shall be issued, the authorizing ordinance
shall provide for a comparable reserve therefor. Moneys in said
Bond and Interest Redemption Fund may be used for the redemption
of bonds: Provided, that except in case of refunding, no bonds of
any issue less than all the outstanding bonds of said issue, shall
be called for redemption unless the County shall have on hand in
said fund sufficient moneys therefor not otherwise appropriated or
pledged, in excess of the amount of interest and principal
maturing on all issues of bonds then
-5-
payable from the revenues of the system within the next Fteen
(18) months from the redemption and for the pL
determining the amount on hand, money. the reserve shal:
considered as appropriated or pledged. In any case where moneys
are available for the redemption of bonds, such moneys may
instead to purchase bonds on the open market at the best price or
prices obtainable, but not in excess of the then redemptio•
When the principal amount owing upon any bonds shall be reduL,d
the amount of the reserve therefor, then the principal of
bonds shall be paid from such reserve. In refv)ect to the
allocation and use of moneys in said Bond and Interest Redemption
Fund, due recognition shall be given as to priority rights, if
any, between different issues or series of outstanding bonds.
The Contract for Services between the County and Orion
provides for the creation and maintenance by Orion of a
replacement fund and a surplus fund and for the use of each of said
funds in connection with the System and with the obligation of the
public corporation with respect to the system.
No disbursements shall be made from said Receiving Fund
except to the special funds as above provided.
Section 18. While any of the bonds herein authorized to
be issued shall be outstanding, additional bonds payable from the
revenues of the System may be issued which shall have an equal
standing herewith in the manner and to the extent provided in the
Contract for Services which includes the right to issue additional
bonds of equal standing in a sum not to exceed Two Hundred Fifty-
Two Thousand Five Hundred Dollars ($252,500) for the completion of
the project herein described in event the bonds herein authorized
shall prove to be insufficient therefor and the right to issue
additional bonds payable from the net revenues of the System for
-6-
the purpose of improving, enlarging and/or extending the System,
or for the purpose of refunding these bonds or any other bonds
payable from the revenues of the System, all as provided by law,
which bonds when issued shall have equal standing with the bonds
herein authorized; provided, that the public corporations i-, we
corporate limits the improvements, enlargements or extensions dre
located shall have amended or supplemented the pertinent Contract
for Services or contracts to provide for char- o users and for
payments to the County in amounts required pur:Luant to Section 13
hereof for all outstanding bonds and for such additional bonds
then being issued. No such additional bonds shall be issued if
the County shall then be in default in making any payments to the
Operation and Maintenance Fund or the Bond and Interest Redemption
Fund. Permission by the Municipal Finance Commission of the State
of Michigan (or such other state commission or agency as shall
jurisdiction over the issuance of municipal bonds) to issue such
additional bonds shall constitute a conclusive presumption of the
existence of conditions permitting the issuance thereof.
Section 19. The bonds and attached coupons herein
authorized to be issued, shall be substantially in the following
form, to-wit:
Number $5,000
f
UNITED STATES OF AMERICA
STATE OF MICHIGAN
COUNTY OF OAKLAND
OAKLAND-ORION SEWAGE DISPOAL SYSTEX
REVENUE BOND -
KNOW ALL MEN BY THESE PRESENTS, that the County of
Oakland, Michigan, hereby acknowledges that it is indebted and for
value received promises to pay to the bearer hereof (or if this
bond be registered, to the registered holder hereof) the sum of
FIVE THOUSAND DOLLARS
on the first day of July, A.D. 19 , and to pay interest thereon at
the rate of ( ) per centum
per annum from the date hereof until paid, said interest being
payable on July 1, 1981, and thereafter semi-annually on the first
day of January and July in each year, which principal and interest
are to be paid solely out of the revenues hereinafter specified.
Both principal and interest are payable in lawful money of the
United States of America at
paying agent, in the
of - , (or at the option of the holder a
co-paying agent, in the
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 505, both inclusive, aggregating the principal sum of .
Two Million Five Hundred Twenty-Five Thousand Dollars ($2,525,000)
issued by said County of Oakland under and pursuant to and in full
conformity with the Constitution and Statutes of the State of
Michigan (especially Act No. 94 of the Michigan Public Acts of 1933,
as amended), and Ordinance No. 21 duly adopted by the Board of Com-
missioners of said County on the 14th day of August, 1980, as amended
by Ordinance No. duly adopted on January , 1981. The bonds
of this series are issued for the purpose of defraying the cost of
the acquisition of the Oakland-Orion Sewage Disposal System in said
County estimated at $2,525,000, pursuant to a Contract for Services,
dated as of August 1, 1980, as amended by Amendment No. 1 thereto
dated as of January 1, 1981, between the County and the Township of
Orion, herein called the public corporation.
This bond is a self-liquidating revenue bond, is not a
general obligation of said county or of any public corporation,
and does not constitute an indebtedness of the said county or of
any public corproation, within any constitutional, statutory or
charter limitation. The principal of and interest on the bonds of
this series, are payable solely from the revenues of said Oakland-
Orion Sewage Disposal System (including any future improvements,
enlargements and extensions thereof) payable pursuant to the
-8-
,iract for Services, as amended, with the Township of Orion which
:v ents are a full faith and credit limited, tax obligation
Townhip, and the payment of both the principal of and inte..
said bonds, and on any additional bonds of equal standing Lc' iay
be issued pursuant to the terms of said Ordinance, is secured by a
statutory first lien on such revenues payable to the County, which
lien does not give the holder authority- to compel the sale of the
f- System.
The bonds of this series maturing in the years 1990 to
2010, both inclusive, are subject to redemption 'prior to maIrt7
at the option of the county, in any order, on any one or
interest payment dates on and after July 1, 1989, at the par
value thereof and accrued interest plus a premium on each bumf in
accordance with the following schedule, to-wit;
$250 if called to be redeemed on or after July I, 1989, but
prior to July 1, 1994
$200 if called to be redeemed on or after July 1, 1994, but
prior to July 1, 1998
$150 if called to be redeemed on or after July 1, 1998, but
prior to July 1, 2002
$100 if called to be redeemed on or after July 1, 2002, but
prior to July 1, 2006
$ 50 if called to be redeemed on or after July 1, 2006, but
prior to maturity.
Notice of redemption shall be given to the holders of
bonds called 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: provided, that
where any bond shall be registered, then notice of the redemptin
thereof shall be given by registered or certified mail addresse,j
to the registered holder thereof at the address shown on the bor:
registration books of the principal paying agent, which notice
shall be mailed not less than thirty (30) days prior to the date
fixed for redemption. 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.
The County of Oakland hereby covenants and agrees that
at all times while any of the bonds of this issue shall be outstand-
ing, there shall be in effect the Contract for Services, as amended, with
the Township of Orion establishing and providing such rates for
services furnished by said Oakland-Orion Sewage Disposal System as
shall be sufficient to provide for the payment of the expenses of
administration of said system and to obligate the Township, as
lessee, to pay all expenses of operation and such expenses fc -,- the
maintenance thereof as may be necesary to preserve the in
good repair and working order; to provide for the payment of the
interest upon and the principal of all bonds payable therefrcm, as
and when the same become due and payable, and for the maintnance
of a reserve in the bond and interest redemption fund as required
in said ordinance; and to provide for such other expenditures and
funds for said system as are required by said ordinance. Rates
shall be fixed and revised from time to time pursuant to the said
Contract for Services, as amended, so as to produce the foregoing
amounts.
-9-
This bond may be registered as to principal only
oame of the holder on the books of the principal paying agen
such registration noted on the back hereof by an officer of
pa.ying agent, and thereafter no transfer shall be valid unle
made upon the said books and likewise noted on the back hereof.
Transferability by delivery may be restored by registration to the
bearer. Negotiability of the interest coupons shall not be
affected by registration.
It is hereby certified, recited and declared that all
acts, conditions and things required to exist, happen ad
performed, precedent to and in the issuance of the bonds ot this
series, existed, have happened and have been performed in due
time, form and manner as required by law.
IN WITNESS WHEREOF, the County of Oakland, Michigan, by
its Board of Commissioners has caused this bond to be signed n its
name by its Chairman and attested by its County Clerk, ,Joi -7, its
corporate seal to be affixed hereto, and has caused the E,..exed
interest coupons to be executed with the facsimile signature of
said Chairman and County Clerk, all as of the first day of February
A.D. 1981.
COUNTY OF OAKLAND
By
Chairman of Board of Commissioners
ATTEST:
County Clerk
(SEAL)
in the , paying agen or a of
(COUPON)
Number
On the first day of
County of Oakland, Michigan, will pay to the bearer hereof the sum
of
Dollars, lawful money of the United States of America,
, A.D. 19 , the
the option of the holder, at
in the of
co-paying agent, same being the interest due on that day on its
Oakland-Orion Sewage Disposal System Revenue Bond, No
dated February 1, 1980. This coupon is not a general obligation of
said County, is payable solely from certain revenues as set forth
in the bond to which this coupon pertains, and is subject to the
redemption provisions in said bond.
FACSIMILE FACSIMILE
County Clerk Chairman of Board of Commissioners
REGISTRY
Signature of Officer
In Whose Name Registered Date of Registration of Paying Agent
Section 20. The proceeds of the sale of the bonds
in authorized to be issued, shall be received by the
Treasurer and placed in. the fund hereby established and designat 7
the Construction Fund: Provided that any portion of said
ceeds, which from time to time is not required for immcaf
disbursement for construction may be invested in United St7te7
Government obligations or as otherwise provided by law -ap ,
authorization by the County Executive and Department of Public
Works. From said moneys there shall first be transferred to
Bond and Interest Redemption Fund, any premium and capitalized
accrued interest paid to the County by the purchaser of said bonds
and the amount appropriated herein as a reserve. The balance of
such proceeds shall be used solely to pay the cost of the project
hereinbefore described and any engineering, legal and other
expenses incident thereto, and shall be paid out only t.
authorization of the County Executive and Department of Public
Works: provided, that said County Executive and Department of
Public Works shall not authorize the payment of any such moneys
for construction work until there shall have been first filed with
it a request for payment from the contractor which is processed by
the Department of Public Works and set forth on a written construction
'estimate executed and approved by authorized representatives of the
consulting engineer and of the county. Said construction estimate
shall also show the amount of construction estimates which have been
theretofore approved for payment and the amount of the balance which
will be required for the completion of the project. There is hereby
appropriated from the proceeds of the sale of the bonds a sum sufficient
to pay the interest coupons due on the bonds on July 1, 1981 and
January 1 and July 1, 1982 as capitalized interest and the sum of
$325,000 as a reserve in the Bond and Interest Redemption Fund as
provided in Section 14.2 hereof.
Section 22. Any unexpended balance of the proceeds of
the sale of the bonds herein authorized, remaining after the
completion of the project, may to the extent of Three Hundred Seventy-
Eight Thousand Seven Hundred Fifty Dollars ($378,750) be used for the
improvement, enlargement and/or extension of the System, if such
use shall be approved by the Municipal Finance Commission, and F-;n
remaining balance shall be paid idiately into the Bon -
Interest Redemption Fund and the sane shall be used only for t e
payment, redemption, or purchase at not more than the fair market
value of said bonds. Any bonds so acquired by payment, redemption
or purchase shall be canceled and shall not be reissued and credit
shall be given pursuant to the Contract to each public corporation
in reduction of the payments due to the County on account of such
bonds.
Section 25. That sealed proposals for the purchase of
$2,525,000 Oakland County "Oakland -Orion Sewage Disposal System
Revenue Bonds, to be dated February 1, 1981, be received up to
11:00 o'clock A.M., Eastern Standard Time, on a date to be later
determined by the County Executive and Department of Public Works
and that notice thereof be published in accordance with law in
The Bond Buyer, which notice shall be substantially in the fol-
lowing form:
OFFICIAL
NOTICE OF SALE
$2,525,000
COUNTY OF OAKLAND, STATE OF MICHIGAN
OAKLAND-ORION SEWAGE DISPOSAL SYSTEM
REVENUE BONDS
SEALED BIDS for the purchase of the above bonds will be rec. by
the undersigned at the office of the Oakland County Departr0t of
Public Works located at No. 1 Public Works Drive, Po70 -iac, Michigan 48054, on the day of
1981, until 11:00 o'clock A .M., Eastern Standard Time,
at which time and place said bids will be publicly opened and read.
Sealed bids will also be received, in the alternative, on the same
date and until the same time by an agent of the undersigned at the
office of Bendzinski & Co., 1318 Buhl Building, Detroit, Michigan,
where they will simultaneously be publicly opened and read. Bidders
may choose either location to present bids and good faith checks as
above provided but not both locations. The bids will be promptly
submitted to the Oakland County Executive for award.
BOND DETAILS: Said bonds will be coupon bonds (registrable as to
principal only) of the denomination of $5,000 each, dated February
, 1, 1981, numbered in direct order of maturity from 1 upwards and
will bear interest from their date payable on July 1, 1981, and
semi-annually thereafter.
Said bonds will mature on the 1st day of July, as
follows:
1982 - $ 50,000
1983 - 50,000
1984 - 50,000
1985 - 50,000
1986 - 75,000
1987 - 75,000
1988 - 75,000
1989 - 75,000
1990 - 75,000
1991 - 75,000
1992 - $ 75,000
1993 - 100,000
1994 - 100,000
1995 - 100,000
1996 - 100,000
1997 - 100,000
1998 - 100,000
1999 - 100,000
2000 - 100,000
2001 - 100,000
2002 - $100,000
2003 - 100,000
2004 - 100,000
2005 - 100,000
2006 - 100,000
2007 - 100,000
2008 - 100,000
2009 - 100,000
2010 - 100,000
PRIOR REDEMPTION: Bonds maturing in the years 1990 thru 2010, shall
be subject to redemption prior to maturity, at the option of the
County, in any order, on any one or more interest payment dates on
or after July 1, 1989, at par and accrued interest to the date
fixed for redemption, plus a premium as follows:
$250 if called to be redeemed on or after July 1, 1989, but
prior to July 1, 1994
$200 if called to be redeemed on or after July 1, 1994, but
prior to July 1, 1998
$150 if called to be redeemed on or after July 1, 1998, but
prior to July 1, 2002
$100 if called to be redeemed on or after July 1, 2002, but
prior to July 1, 2006
$ 50 if called to be redeemed on or after July 1, 2006, but
prior to maturity.
-14-
Thirty days notice of redemption Mall be given by
publication, at least once in a newspap or publieeeon
circulated in the City of Detroit, Michigan, whch carries
. of its regular service, notices of sale of municipal bonds, -i in
case of registered bonds thirty (30) days notice shall be by
, registered or certified mail to the registered holder at the
registered address. Bonds called for redemption shall not bear
interest after the redemption date, provided funds are on hand
with the paying agent to redeem the same.
INTEREST RATE AND BIDDING DETAILS: The bonds shall bear interest
at a rate or rates not exceeding 10% per annum, to be fixed by the
bids therefor, expressed in multiples of 1/8 or 1/20 of 1%, or
both. The interest on any one bond shall be at one rate only, all
bonds maturing in any one year must carry the same interest rate
and each coupon period shall be represented by one interest
coupon. None of said bonds shall bear interest at a rate per annum
which is two (2) percentage points less than the rate borne by any
other bond. No proposal for the purchase of less than all of the
bonds or at a price less than 100% of their par value will be
considered.
PAYING AGENT: Both principal and interest 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 the bonds, who may also designate a co-
paying agent, which may be located outside of Michigan, qualified
to act as paying agent under the law of the State in which located
or of the United States, both of which shall be subject to approval
of the undersigned.
PURPOSE AND SECURITY: The bonds are issued under the provisions
of Act 94, Public Acts of Michigan, 1933, as amended, and Ordinance
No. 21 of the county, as amended by Ordinance No, , for the
purpose of defraying the cost of acquiring and constructing the
Oakland-Orion Sewage Disposal System. The bonds are self-liqui-
dating revenue bonds, are not a general obligation of the county
or of any public corporation and do not constitute an indebtedness
of the county or of any public corporation, within any constitu-
tional, statutory or charter limitation. The bonds are payable,
on a parity with additional bonds of equal standing which may be
issued as set forth in said Ordinance, solely from the net revenues
of said System of the County of Oakland and any additions thereto,
and a statutory first lien on said revenues has been established
by said Ordinances. The county has covenanted and agreed to fix
and maintain at all times while any of such bonds shall be out-
standing such rates for services furnished by the Oakland-Orion
System as shall be sufficient to provide for payment of the
necessary expenses of administration of said System, of the
principal and interest on said bonds when due, to maintain the
bond reserve account therefor, and to provide for such other
expenditures and funds for said System as are required by said
Ordinances. There is appropriated from the bond proceeds to the
Bond and Interest Redemption Fund a reserve of $325,000. The
Township of Orion has covenanted and agreed in a Contract for
Services, as amended, to operate and maintain the facilities of
the Oakland-Orion System, as lessee, and to establish and maintain
a replacement and surplus fund in connection therewith and has
in said Contract for Services, as amended, incurred its full
faith and credit general obligation, subject to applicable tax
limitations, to pay for sewage disposal services from the System,
as a first budget obligation, in amounts adequate to pay principal
of and interest on the bonds, to replenish and maintain the reserve
in the Bond and Interest Redemption Fund for the bonds, and to pay
-15-
the expenses of administration of the county and the proport rte
of operation, maintenance and sewage treatment thr , 'he ing county sc - -je disposal facilitie:-; to which thi;3 Orion System will connected.
ADDITIONAL BONDS: For the terms upon which additional bonds may
, be issued of equal standing with the bonds herein described, as to
revenues of said System, reference is made to the above described
Ordinance.
GOOD FAITH: A certified or cashier's check in the amount of
$50,500, drawn upon an incorporated bank or trust company and
payable to the order of the Treasurer of the County of Oaklar0 must
accompany each bid as a guarantee of good f&th on the par',„ the
bidder, to be forfeited as liquidated 6am,71gs if such bid be
accepted and the bidder fails to take up and pa', 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 cas', and
payment for the balance of the purchase price of the bonds sh -'1 be
made at the closing.
AW— OF BONDS: The bonds will be awarded to the bidder wk-o - bid
produces the lowest interest cost computed by determining, the
rate or rates specified in the bid, the total dollar value L.,2 all
interest on the bonds from f 19_, to their maturity
and deducting therefrom any premium.
LEGAL OPINION: Bids shall be conditioned upon the unqualified
approving opinion of Dickinson, Wright, McKean, Cudlip &
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 will be delivered without expense
to the purchaser at Detroit, Michigan, Chicago, Illinois or New
York, New York. The usual closing documents, including a
certificate that no litigation is pending affecting the issuance
of the bonds, will be delivered at the time of the delivery of the
bonds. If the bonds are 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 thereafter 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 cancellation, in writing, on the
undersigned in which event the County Treasurer shall promptly
return the good faith deposit. Payment for the bonds shall be made
in Federal Reserve Funds. Accrued interest to the date of
delivery 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 Bendzinski & Co., Municipal Finance
Advisors, 1318 Buhl Building, Detroit, Michigan, 48226. Telephone
' (313) 961-8222.
THE RIGHT IS RESERVED TO REJECT ANY OR ALL BIDS.
ENVELOPES: containing the bids should be plainly marked "Proposal
for Oakland-Orion System Revenue Bonds".
County Executive, Oakland County,
Michigan
Dated:
APPROVED:
STATE OF MICHGIAN
MUNICIPAL FINANCE COMMISSION
Section 2. This ordinance shall be recorded in the
minutes of the meeting of the Board of Commissioners at which
it was adopted, as soon as practicable after its passage, which
record shall be authenticated by the signatures of the Chairman
of the Board of Commissioners and County Clerk of said County,
and shall be published once in the Oakland Press, a newspaper
of general circulation within the said County. This ordinance
shall become effective immediately upon its adoption.
Section 3. If any section, paragraph, sentence, clause
or phrase of this ordinance shall be held invalid, the same shall
not affect any other part of this ordinance.
Section 4. All ordinances and resolutions or parts
thereof, insofar as the same may be in conflict herewith are
hereby repealed.
County Clerk Chairman of Board of Co sioners
BE IT FURTHER RESOLVED, that the Count
be and he is hereby authorized and directed to executeand
deliver the Amendment No 1 to Oakland-Orion Sewage Disposal
System Contract for Services in the form set foiLh in the
foregoing ordinance.
BE IT FURTHER RESOLVED, tha olan 7,7-vtive
be and he is hereby authorized and direj to f -H7.cd the
foregoing notice of sale and a sworn application for
to issue said bonds to the Municipal Finance Commission Lor
approval and that the said form, upon approval, be published
in The Bond Buyer, as required by law, so as to offer the bonds
therein described on a date and time to be chosen by the County
Executive.
MR. CHAIRMAN, I move the adoption of the foregoing
resolution.
8 1002 Janua 1 5 1981
Moved by Caddell supported by Lanni the
resolution be adopted.
Discussion followed.
Vote on resolution:
AYES: Lanni, Moffitt, Montante, Moore, Olsen, Page, Patterson,
Perinoff, Pernick, Price, Whitlock, Wilcox, Aaron, Caddell, Cagney, DiGiovanni,
Doyon, Fortino, Gabler, Geary, Gosling, Hobart, Jackson. (23)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution
was adopted.
STATE OF MICHIGAN )
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 Resolution 4 81002 adopted by
the Oakland County Board of Commissioners at their meeting held
on January IS , 1981, with the original record thereof now
remaining in my office, and that it is a true and correct tran-
script therefrom, and of the whole thereof.
In Testimony Whereof, I have hereunto set my hand and
affixed the seal of said County at Pontiac, Michigan this 15th
day of January , 1981.
Lynn D. Allen Clerk