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HomeMy WebLinkAboutResolutions - 1974.09.05 - 153191 • The following resolution is with reference to THE TROY WATER S PPLY SYSTEM AND IS TO APPROVE A BOND RESOLUTION PROVIDING FOR A SECOND SERIES OF BONDS IN THE AMOUNT OF $2,500,000 and since a copy of the resolution has, prior to this meeting been mailed to all members of this Board I respectfully request that reading of same be waived. The Public Works Committee, by Mr. Patnales its Chairman , moves the adoption of the following Resolution: • 5th day of September , 1974 , at 9:55 At a regular meeting of the Board of Commissioners of Oakland County, Michigan, held in the Commissioners' Auditorium in the County Service Center, in the City of Pontiac, Michigan, on Thursday the o'clock A.M. , Daylight Savings Time. PRESENT: Berman, Burley, Button, Coy, Dearborn, Douglas, Dunleavy, Gabler, Hobart, Hoot, Houghten, Kasper, Lennon, Mathews, Montante, Nowak, Olson, Patnales, Perinoff, Pernick, Quinn, Walker, Wilcox. (23) AMEN': Brotherton, Moffitt, Richardson, Vogt. (4) • Miscellaneous Resolution No. 6804 Recommended by Board of Public Works Re: TROY WATER SUPPLY SYSTEM • Submitted by Mr. Patnales Mr. Patnales BOND RESOLUTION offered the following resolution which was approved by the Board of Public Works at their meeting of September 5 • 1974. WHEREAS, the Oakland County Board of Commissioners, by Miscellaneous Resolution No. 6007, adopted May 4, 1972, did approve of the establishment of a water supply system to be known as the "Troy Water Supply System" which is to consist of facilities for the supply, transportation and distribution of water to areas designated in said resolution as Troy Water Supply District; and WHEREAS, the County of Oakland and the City of Troy entered into a Contract dated as of February 1, 1973, whereby the County agreed to acquire, construct and finance the Troy Water Supply System and the City agreed therein to pay the total cost thereof, based upon an estimated cost of $9,750,000 and as represented by the amount of bonds issued by the county to finance said System; and WHEREAS, construction plans and specifications for the Troy Water Supply System as prepared by Hubbell, Roth & Clark, Inc., registered professional engineers, and an estimate of $9,750,000 as the cost of said System and an estimate of forty (40) years and upwards as the period of usefulness thereof, as prepared by said registered professional engineers, have been approved by the Board • of Public Works and by this Board of Commissioners of Oakland County and by the governing body of the City; and WHEREAS, the said Contract of February 1, 1973, provides that the County shall issue its "bonds in one or more series in the aggregate of the presently estimated cost of the project, as shown on Exhibit "B" or such different amount reflecting any revision in the estimate of cost" and said Exhibit "8" showed the estimated cost to be $9,750,000 and the revised estimate of cost shows the estimated cost now to be $12,250,000; and WHEREAS, paragraph 10 of said Contract of February 1, 1973, provides as follows: "10. If the proceeds of the sale of the original bonds to be issued by the County for the project are for any reason insufficient to complete the project in accordance with the plans and specifications therefor, the Board shall, if necessary, submit to the Board of Commissioners of Oakland County a resolution providing for the issuance of additional bonds in an amount necessary to provide funds to complete the project in which event the duties and obligations of the Board and the Municipality as expressed and set forth in this Contract shall be applicable to such additional issue of bonds as well as the original issue, it being at all times fully recognized and agreed that the payments to be made by the Municipality, in the manner specified in paragraph 7 of this Contract, shall be based upon the aggregate amount of the bonds outstanding. In lieu of the issuance of such additional bonds, any other method may be agreed upon by the County and the Munici- pality to provide the necessary funds to complete the project." ; and WHEREAS, the City of Troy has approved the increases in the estimate of cost by approval of a Revised Exhibit "B" to said Contract of February 1, 1973, and expressed its desire that the County issue additional bonds to finance said increased cost and 0 1 has approved a Revised Exhibit "C" to said Contract to show the increase in the schedule of payments to be made by the City to , the County on account of said additional bonds; and WHEREAS, pursuant to the provisions of said Revised Exhibit "C" to Contract of February 1, 1973, the aggregate amounts of the several increased annual installments to be paid by the City are the same as the annual bond maturities hereinafter set forth; and WHEREAS, under said Contract of February 1, 1973, and revised exhibits the said City is 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; and WHEREAS, the County is desirous of issuing additional bonds in anticipation of the increased payments to be made by the said City under said Contract of February 1, 1973 and revised exhibits thereto; and WHEREAS, the County Board of Public Works has approved this 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, aggregating the principal sum of Two Million Five Hundred Thousand Dollars ($2,500,000) be issued for the purpose of defraying the increased cost of acquiring and constructing said Troy Water Supply System. The said bonds shall be known as "Oakland County Water Supply Bonds - Troy System, Second Series"; shall be dated November 1, 1974; 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 eight per cent (8%) per annum, payable on May 1, 1975 and semi-annually thereafter on the first days of May and November in each year; and shall mature on the first day of November in each year as follows: 1979 - $50,000 1980 - 50,000 1981 - 50,000 1982 - 50,000 1983 - 50,000 1984 - 50,000 1985 - 50,000 1986 - 50,000 1987 - $ 50,000 1988 - 50,000 1969 - 75,000 1990 - 75,000 1991 - 75,000 1992 - 75,000 1993 - 100,000 1994 - 100,000 1995 - $125,000 1996 - 125,000 1997 - 150,000 1998 - 150,000 1999 - 175,000 2000 - 175,000 2001 - 200,000 2002 - 200,000 2003 - 200,000 Bonds maturing on or after November 1, 1967 shall be subject to re- demption in inverse numerical order at the option of the County prior to maturity on any one or more interest payment dates on and after November 1, 1986. Bonds called for redemption shall be redeemed at the par value thereof and accrued interest to the date fixed for redemption, plus a premium as follows: 3% of the par value of each bond called for redemption on or after November 1, 1986, but prior to November 1, 1992; 2% of the par value of each bond called for redemption on or after November 1, 1992, but prior to November 1, 1998; 1% of the par value of each bond called for redemption on or after November 1, 1998, 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 State of 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 redemption date, provided funds are on hand with the paying agent to redeem the same. Bonds maturing prior • 0 to the year 1987 shall not be subject to redemption prior to maturity. All bonds shall have proper coupons attached thereto evidencing interest to their respective dates of maturity. 2. That the principal 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 located in Michigan which qualifies as a paying agent under Federal or Michigan law and which shall be designated by the original purchaser of the bonds. 3. 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 signatures; 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 deliver said bonds and attached coupons to the purchaser thereof upon receipt of the purchase price therefor. 4. That the said bonds are to be issued pursuant to the provisions of Act 185, Public Acts of Michigan, 1957, as amended, in anticipation of the payments to become due to the County from the City of Troy under said Contract of February 1, 1973 and revised exhibits, which payments are in the aggregate principal amount of the bonds with interest thereon as therein provided. The said bonds issued pursuant hereto and the $9,750,000 of Oakland County Water Supply Bonds - Troy System, dated NOvember 1, 1973, are both payable equally and ratably, without preference or priority, from said payments pursuant to said Contract. As provided in said . • • 0 Act 185, the full faith and credit of said City is pledged to the making of the said payments when due, and in addition there is hereby pledged, as authorized in said Act 185, the full faith and credit of the County of Oakland to the payment of the bonds, both principal and interest, when due. 5. That all moneys paid to the County by the said City pursuant to said Contract of February 1, 1973, and revised exhibits thereto, and sufficient of the proceeds of said bonds to pay the coupons thereon due May 1, 1975, 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 the bonds herein authorized. 6. That said bonds and attached coupons shall be sub- stantially in the following form: UNITED STATES OF AMERICA STATE OF MICHIGAN COUNTY OF OAKLAND OAKLAND COUNTY WATER SUPPLY BOND - TROY SYSTEM, SECOND SERIES Number $5,000 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 November, A.D. 19 , together with interest there- on from the date hereof until paid, at the rate of per centum ( %) per annum, payable May 1, 1975 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 , Michigan, 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 500, both inclusive, aggregating the principal sum of Two Million Five Hundred Thousand Dollars ($2,500,000), issued under and pursuant to and in full conformity with the Constitution and Statutes of the State of Michigan, and especially Act No. 185 of the Michigan Public Acts of 1957, as amended, for the purpose of defraying the increased cost of the Troy Water Supply System. Bonds of this series maturing prior to November 1, 1987 are not subject to redemption prior to maturity. Bonds maturing on or after November 1, 1987 shall be subject to redemption in inverse numerical order, at the option of the County prior to maturity on any one or more interest payment dates on and after November 1, 1986. Bonds called for redemption shall be redeemed at the par value there- of and accrued interest to the date fixed for redemption plus a premium as follows: 3% of the par value of each bond called for redemption on or after November 1, 1986, but prior to November 1, 1992; 2% of the par value of each bond called for redemption on or after November 1, 1992, but prior to November 1, 1998; 1% of the par value of each bond called for redemption on or after November 1, 1998, 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 State of 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 bond as to both principal and interest, is payable from moneys to be paid to the County of Oakland by the City of Troy pur- suant to a certain Contract dated February 1, 1973, and revised exhibits thereto, between the County of Oakland and said City whereby the said City agrees to pay to the said County the increased and original cost of said Troy Water Supply System in annual installments in the same aggregate amounts as the annual maturities of the bonds of this issue and of the first series, dated November 1, 1973, equally and ratably, and semi-annually to pay the aggregate amount of the interest (except capitalized 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. The full faith and credit of said City is pledged for the prompt payment of its obliga- tions pursuant to said Contract, and in addition, by affirmative vote of three-fifths (3/5ths) of the members elect of its Board of Com- missioners, the full faith and credit of the County of Oakland is pledged to the payment of the bonds, principal and interest when due. 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 indebtedness 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 Commissioners 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 November, A.D. 1974. COUNTY OF OAKLAND, MICHIGAN By Chairman of its Board of Commissioners By County Clerk (SEAL) (COUPON) Number On the 1st 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 Water Supply Bond - Troy System, Second Series, dated November 1, 1974, No. (FACSIMILE) (FACSIMILE) County Clerk Chairman of its Board of Commissioners PUBLIC,WORKS-COMMITTEE By hairman 7. 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 Board of Public Works through its Director is hereby authorized and directed to make application to said Commission for the issuance of such order. B. The Board of Public Works is hereby authorized to sell said bonds at not less than par and accrued interest in accor- dance with the laws of this state and to do all things necessary to effect the sale and issuance of said bonds, subject to the provisions of this resolution. 9. All resolutions and parts of resolutions, insofar as the same may be in conflict herewith, are hereby rescinded. • les It was moved by Mr. Patna , seconded by Mr. Quinn , that the foregoing resolution be adopted. Upon roll call the vote was as follows: YEAS: Burley, Button, Coy, Dearborn, Douglas, Dunleavy, Gabler, Hobart, Hoot, Houghten, Kasper, Lennon, Mathews, Montante, Nowak, Olson, Patnales, Perinoff, Pernick, Quinn, Walker, Wilcox, Berman. (23) MAYS: None. (0) • • .11 STATE OF MICHIGAN ) ss: COUNTY OF OAKLAND ) I, the undersigned, the County Clerk of the County of Oakland, do hereby certify that the foregoing is a true and complete copy of the proceedings pertaining to the Troy Water Supply System, duly adopted and taken by the Board of Commissioners of said County at a regular meeting held September 5 which are on file in my office. , 1974, the originals of Dated: September 5 , 1974.