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HomeMy WebLinkAboutResolutions - 1975.05.22 - 14776May 22, 1975 MISC. RES. 7105 IN RE: GENERAL OBLIGATION TAX REVOLVING FUND NOTES, SERIES 1975, CONFIRMATION OF AWARD BY FINANCE COMMITTEE Iienryw. Hoot, Vice Chairman TO: THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mr. Chairman, Ladies and Gentlemen; WHEREAS, The Municipal Finance Commission authorized tne County to issue its General Obligation Tax Revolving Fund Notes, Series 1975, in an amount of $20,130,000 by its Order approving the issuance of Oakland County General Obligation Tax Revolving Fund Notes, Series 1975 (the "Notes"), on April 29, 1975; and WHEREAS, at a public sale held on May 8, 1973, the Treasurer received the following proposal from Michigan National Bank of Detroit, which produced the lowest interest cost to the County, which award proceedings are attached to this resolution; and WHEREAS, the Treasurer thereafter accepted the proposal of Michigan National Bank of Detroit to purchase the General Obligation Tax Revolving Fund Notes, Series 1975, in an amount of $20,130,000 to be issued by the County and dated April 1, 1975, at a par plus accrued interest to date of delivery, maturing and bearing interest semi-annually as followst Principal Amount Notes Maturing Interest Rate $8,000,000 - 1976 7,000,000 1977 5.00% 5,130,000 1978 5.00% The said Notes shall be issued in accordance with the resolution adopted by this Board of Commissioners on March 20, 1975 relative lo the issuance of such Notes. , 11 APPROVE THE FOREGOING RESOLUTION . . , NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE COUNTY OF OAKLAND, MICHIGAN, as follows: 1. The Order of Award of the Notes to Michigan National Bank of Detroit, a copy of which proceedings are attached hereto and shall be, and the same is hereby, accepted and confirmed. 2. The Clerk and County Treasurer are hereby authorized to execute any and all other documents as may be necessary in connection with the issuance of the aforesaid Notes; 3. All resolutions and parts of resolutions inconsistent with the foregoing are hereby rescinded. Mr. Chairman: On behalf of the Finance Committee, I move the adoption of the foregoing resolution. FINANCE COMMITTEE • ORDER RECEIVING BIDS AND AWARDING NOTES The following proceedings took place in the City of Pontiac, Oakland County, Michigan, in the office of the Oakland County Treasurer, Oakland County Courthouse, 1200 N. Telegraph Road, Pontiac, Michigan, on the 8th day of may, 1975, at 11:00 o'clock A.M., Michigan Time. The Order of the Plunicipal Finance Commission, dated , April 29, 1975, approving the issuance by the County of Oakland of $20,130,000 Oakland County General Obligation Tax Revolving Fund Notes, Series 1975, to be dated April 1, 1975, and approving the form of Notice of Sale of said Notes was presented and filed by C. Hugh Dohany, Oakland County Treasurer, acting pursuant to Act 202 of Michigan Public Acts of 1943, as amended. Mr. Dohany announced that this was the time set for opening of proposals for the purchase of the above mentioned Notes, as advertised in the Oakland Press and Bond Buyer on May 1, 1975, in the Michigan Investor on May 3, 1975, and in , the Daily Tribune on May 2, 1975. Mr. Dohany presented the following proposals which had been received by him on or before 11:00 o'clock A.M., Michigan Time, on this day, which proposals were then opened by him, and as to interest rates and premiums were as follows: (BIDS TO BE INSERTED HERE) MICHIGAN NATIONAL BANK OF DETROIT al..JARDIAN SuiLoiNe • GRIswoLo & CONGRESS DETROIT. IMICHIC3AN 48226 • PHONE (313) 961-5300 May 8, 1975 BID FORM $20,130,000.00 OAKLAND COUNTY GENERAL OBLIGATION TAX REVOLVING FUND NOTE SERIES 1975 Mr. C. Hugh Dohany County Treasurer County of Oakland Oakland County Courthouse 1200 N. Telegraph Road :Pontiac, Michigan Dear Mr. Dohany: Reference is made to your official Notice of Sale of the $20,130,000 County of Oakland General Obligation Tax Revolving Fund Notes, Series 1975, as published in the Daily Bond Buyer May 1, 1975. For your legally issued notes as described in the Official Notice of Sale, we will pay you par and accrued interest from the date of the notes, April 1, 1975, to date of delivery to us plus a premium of $ CD for notes maturing and bearing interest as follows: $8,000,000.00 maturing May 1, 1976 , /0 r $7,000,000.00 maturing May 1, 1977 ,S u t —t $5,130,000.00 maturing May 1, 1978 Enclosed is our Good Faith Deposit, Cashier's Check Number 860886 in the amount of $402,600.00 Respectfully Submitted, Michi.gan National Bank of Detroit 7-- William H. Draper, Vice President A MICHIGAN NATIONAL CORPORATION BANK May 8, 1975 Page 2 .MICHIGAN NATIONAL BANK DETuorr •' • Mr. C. Hugh Dohany General Obligation Tax Revolving Fund Note Series 1975 The following is furnished for informational purposes only, and is not a part of the foregoing proposal: Total Interest Cost $ i1 '7 .7, .S.'-t1 , 0 Less Premium $ t r0 I CI Net Interest Cost 9 , ' . $ I VIt 6T I C J / Average Net Interest Cost $ S: 6 1 9196 A THE CHASE MANHATTAN BANK National Association I Chase Manhattan Plaza, New York, New York 10015 May 8, 1975 Mr. C. Hugh Dohany County Treasurer Oakland County Courthouse 1200 N. Telegraph Road Pontiac, Michigan RE: *20,130,000 couurr OF °ULM, MATE OF =slaw SELLING THURSDAY, MY 8, 1975 IR 11:00 A. M. (E.b.S.T.) For all but no part of the above mentioned bonds, all as more part]. cularly described in the official Notice of Sale, which is hereby made a part of our bid, we will pay $ 20,130,000 and a5crued interest to the date of delivery, plus a premium of $ 6 for bonds maturing and bearing interest as shown below: ;MATURITY COUPON MATURITY COUPON 1976 197/ 1W8 nnnnnnnn11 nnnnnnnnnn1 _% •Mn,A % 4n1n1 To Mr. C. Hugh Do* . County Treasurer Page No, 2 .4 CHASE MANHATTAN 8 , N.A. For information only and not as part of our bid, we compute the ihterest cost of this bid to be: Gross Interest Cost $ Less Premium e. 19,9 . A Net Interest Cost $ /13er Ar-‘1.—e,9 0 Effective Average Interest Rate We enclose a good faith deposit check for $1402,600 as a .deposit in accordance with the terms of our bid which we ask to have returned promptly to our representative in case the bonds-. are not awarded to us. The Chase Manhattan Bank ) JOINT The First National Bank of Chicago ) Chemical Batk ) MANAGERS . And Associates (ME LIST ATTACHED) BY: The Chase Manhattan Bank, N.A. ril-(z „ 7110acf/tfe am S. Eraybi Vice President (/' UNDIVIDED ACCOUNT • $20,130,000 OAKLAND COUNTY, MICHIGAN SELLING NAY 8, 1975 'd $1,600,000 The Chase Manhattan Bank, N. A. . ) JOINT The First National Bank of Chicago ) Chemical Bank )MANAGERS Mellon Bank, N. A,.. Kuhn, Loeb & Co. United California Bank Zetrollankeegvalints4Keitnganar The First National Bank of Memphis First Pennco Securities, Inc. Girard Bank La Salle National Bank, Chicago L. F. Rothschild .& Co.' • MattuEDITeturersEalattima t T0TAL:$20,800,000 OVERSYNDICATED:$ 670,000 130,000 - N. 5-, OF PONTIAC PONTIAC, MICHIGAN 48056 National 1 Bank May 8, 1975 C. Hugh Dohany County Treasurer, County of Oakland 1200 N. Telegraph Road Pontiac, Michigan Dear Sir: c For "all or part" of the $20,130.00 County of Oakland General Obligation Note, offered for sale, May 8, 1975 to be dated April 1, 1975, to mature 5/1/76, 5/1/77, 5/1/78 and further described in your notice of sale dated April 29, 1975, we will pay par and accrued interest to date of delivery plus a premium of $yq0.oc, for notes bearing interest as follows: Maturities Rates 19 74 to 19 Incl. 1977. to 19 Incl. C 197g to 19 Incl. $607 If we are the succesful bidder, we wish to desginate ourselves as paying agent and we will advise you of denominations desired. The above proposal is subject to our being furnished without cost to us with the satisfactory unqualified legal opinion of Messers. Dickinson, Wright, McKean and Cudlip, Attorneys of Detroit, Michigan, approving the validity of said notes. Very truly yours, FIRST NATIONAL CITY BANK OF NEW YORK Community National Bank of Pontiac as PROXY A. / Donald D. Taylor,-Executive Vice President- Finance Enclosure Aet /4/7: 67 9 7, o o .5760 pit • BANKERS TRUST COMPANY 16 WALL STREET, NEW YORK, N. Y. S0015 May 8, 1975 Mr. C. Hugh Dohany, County Treasurer Oakland County Courthouse 1200 N. Telegraph Road Pontiac, Michigan Dear Mr. Dohany: In accordance with the provisions of the official Notice of Sale pertaining to this issue, we will pay the sum of 020/ /30, 499..„2.4-- or $ /00, en,o549.2- for each $100. par value and accrued interest from date of bonds to date of delivery for all of the $ 20,130,000. County of Oakland, Michigan Bonds which will bear interest at the following rates: Bonds maturing 1976 to 197V inclusive at ..,6%2.3' % per annum Bonds maturing 19 to 19 inclusive at % per annum Bonds maturing 19 to 19 inclusive at % per annum Bonds maturing 19 to 19 inclusive at % per annum Bonds maturing 19 to 19 inclusive at % per annum Bonds maturing 19 to 19 inclusive at % per annum Bonds maturing 19 to 19 inclusive at per annum .Bonds maturing 19 to 10 inclusive at % per annum Bonds maturing 19 to 19 inclusive at % per annum Bonds maturing 19 to 19 inclusive at % per annum-, This bid is made subject to our being furnished without expense to us at the time of delivery of these bonds a non-litigation certificate in the usual and customary form and the opinion of Messrs. Dickinson, Wright, McKean & Cudlip, Detroit, Michigan approving their legality satisfactory to us. Mr. C. Hugh Dobany„ County Treasurer Pontiac, Michigan May 8, 1975 Page Two 6,„/ As evidence of our good faith in bidding, we enclose cashier's check in the amount of $402,600.00 of Treasurer of the County of Oakland If this proposal is accepted, this is to be retained as part payment for the above mentioned bonds; otherwise it is to be returned promptly to our representative. Ellis bid is for immediate acceptance. payable to the order Yours very truly, • Bankers Trust Company & Associates — Shown On Attached List Bankers Trust ComOny ')Ieitz3 ;a-a-21a' 46 ,Diana DeFilippis Assistant Treasurer era Trust Company - .- ontinental Illinois National Bank and Trust Company of Chicago 5. Crrill lynch, Pierce, Fenner althlth, Incorporated .Smith, Barney & CO3 Inc. For information purposes only but not as a part of this calculate the net interest cost to be as follows: bid we Total Interest Cost Less Premium Net Interest Cost Net Interest Cost Rate /, 942, 97‘.57 99 S-7,57 77 May 8, 1975 MORGAN GUARANTY TRUST COMPANY OF NEW YORK 23 WALL STREET, NEW YORK, N.Y. 10015 C. Hugh Dohany County Treasurer, County of Oakland Oakland County Courthouse 1200 N. Telegraph Road Pontiac, Michigan Dear Sir: We hereby bid par plus a premium of $ A.9,„.5:50,`") for all or none of the: $20,130,000 County of Oakland, State of Michigan, General Obligation Tax Revolving Fund Note Series 1975 plus acceued interest to date of delivery., The interest rate (s) to be borne by these bonds will be as follows: Maturities Rates Maturities Rates 1976to 19 Incl. 19 to 19 Incl. 1977to 19 Incl. .7$ 19 to 19 Incl. 1978 to 19 mci. 19 to 19 Incl. _— 19 to 19 Incl. 19 to 19 Incl. We compute the net interest cost to be: Gross Interest Cost $ 0.2 o 16 -545-0 ee Premium Net Interest Cost .jTci& " Net Effective Rate This bid is made subject to the terms and provisions of your Official Notice of Sale. We enclose a check in the amount of $402,600.00 "Treasurer of the County Of Oakland, Michigan." payable to the order of: 414 t) /c6) Enclosures: Yours very truly, MORGAN GUARANTY TRUST COMPANY OF NEW YORK & Associates BY: MORG,AJOI TY TRUST COMPANY OF NEW YORK (, CARI, G. FRANZE -ASSISTANIFTREASURER r Brown, Inc. Van Kampen, Wauterlek By: ,..1•114.....-,41-cexc-4947 6/Raymond B. McCabe, Sr. V.P. REM/1hr Encl. This bid isiiiireby accepted by and on behalf of COUNTY OF OWAND, STATE OF MICHIGAN on this _ day of - . ,1975. , 1, Ico !1) 11 E( II 1 4111'41'0. • HALSEY, STUART & CO. INcc.,ff.icia/ Si gnature 135 SOUTH LA8ALLE STREET CHICAGO, ILLINOIS 60690 312 / 782-3900 May 8, 1975 Mr. C. Hugh Dohany, County Treasurer, county of Oakland Oakland County Courthouse 1200 N. Telegraph Road Pontiac, Michigan Dear Mk. Dohany: For $ 0.139.000 COUNTY OF OAKLAND, STATE OF MICHIGAN — GO. Tax Revolving Fund Hetes, Ser_ 1975 all as more fully described in your Official Notice of Sale, a copy of which is attached hereto and made a part of this bid, fov . which notes proposals are to be received until 14:00 AM EDT on Thurs.. Mau 8, 2975 we will pay Federal Reserve Funds for notes bearing at the following rate or rates per annum: / 4,-) &,) Date Par plus accrued interest to the date of delivery and in addition thereto a premium of $ The net interest cost to the County under the terms of this proposal amounts to $ t 9 7? , equivalent in basis to.r.L5.7 per annum. This bid is strictly subject to prompt acceptance, to delivery of the notes to us within approximately forty—five (45) days after the day of sale at a place tm he. mire-polin .mrrenceep44 renews and to our being furnished at the time of delivery with the final unqualified opinion of Messrs. _Di.ckinsoe...teartht_. &Mean & Cudlip , approving the legality of the issue, together with a certified copy of the transcript upon which their opinion is based. We are enclosing herewith a check in the amount of $ 402,600 as evidence of our good faith, to be held by you pending the fulfillment of our contract Should the notesbe awarded elsewhere, or should the attorneys refuse to approve the legality of the issue, said check shall be returned to us immediately. . • Respectfully submitted, Halsey, Stuart & co. Inc. — Mgr. Affiliate of Bache & Co., Inc. • Veryztru1y yours (,16,44-) putts Betanzos, Vice Pr NATIONAL BANK OF DETROI AND ASSOCIATES ent I• NATIONAL BANK OF DETROIT DETROIT, MICHIGAN 48232 TELEPHONE 225-2515 May 8, 1975 Mr. C. Hugh Dohany County Treasurer - Oakland County Oakland County Courthouse 1200 N. Telegraph Road Pontiac, Michigan For myiwwiarri remn+ir 1 Miirrsan _ aPTIAral Ohl ittation Ta.x Revolyjne • Boodo of the par value of $ 20.130.000 rPho xr yinnri ThrtrAr described in the Official Notice of Sale, published in on May 1. 1975 which Notice of Sale is incorporated herein by reference, we will pay you par and accrued interest to date of delivery, plus a premium of $ said bonds to bear interest at the following rates: Rate Year Rate Year 5.45 % 1976 5.35 % 1977 5.00 % 1978 This proposal is subject to our being furnished, at (your) expense, with the unqualified approving legal opinion of Messrs. Dicum2a, Wriaht t McKean & Cudlip , Attorneys, of Detroit, Michigan, 'which shall include the statement that, when issued, the bonds are exempt from all then existing Federal income taxes at the time of delivery. We enclose our good faith check for $402,600.00 payable to the order of the "Treasurer of County of Oakland Gross Interest Cost $1,954,500.00 Less Premium —0— Net Interest Cost $1,954,500.00 Effective Net Interest Rate 5.227334 d net),L May 1, 1976 May 1, 1977 May 1, 1978 5.10% 5.00% 5.00% The following Order was presented by Mr. Dohany, as Oakland County Treasurer, to wit: IT IS HEREBY ORDERED: 1. That the fixing of this date as the date of sale of the $20,130,000 Oakland County General Obligation Tax Revolving Fund Notes, Series 1975, to be dated April 1, 1975, and to be °issued by the County of Oakland, and the causing notice of such sale to be published as heretofore provided, is hereby ratified and confirmed, in conformance with the note resolution heretofore adopted by the Oakland County Board of Commissioners. 2. That the proposal of Michigan National Bank of Detroit, Detroit, Michigan, to purchase said Notes at par plus accrued interest to date of delivery, plus a premium of $600.00, and bearing interest per annum as follows: (same being the bid which produces the lowest net interest cost to the County after deducting premium), be and the same is hereby accepted, and all other proposals are hereby rejected, and the bidding checks of the unsuccessful bidders are hereby ordered returned. 3. That the aforesaid Notes be issued in accordance with the terms set forth in the resolution adopted by the Board of Commissioners and bearing interest as set forth above. C. Hugh Yohany, Treesurer Oakland County, Michigan #7105 Moved by Hoot supported by Roth the resolution be adopted. AYES: Gabler, Hoot, -Houghten, Kasper, Lennon, Moffitt, Montante, Nowak, Olson, Page, Patterson, Pernick, Price s Roth, Simmons, Wilson, Aaron, Button, Coy, Dearborn, Douglas, Dunleavy, Fortino. (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 Resolution #7105 adopted by the Oakland County Board of Commissioners at their meeting held on May 22, 1975 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 Testimony Whereof, I have hereunto set my hand and affixed the seal of said County at Pontiac, Michigan 191 75 this day of 1 Lynn D. Allen Clerk By Deputy Clerk