HomeMy WebLinkAboutResolutions - 1970.04.28 - 16329The Clerk presented to the Board a letter from the County
Drain Commissioner stating that a resodittion has been adopted
by the RmyAgx Drainage Board for the Snyder Drain authorizing
the issuance of drain bonds in the aggregate amount of
$675,000.00 and requesting that the Board of Commissioners
adopt a resolution for the purpose of pledging the full faith
and credit of the County of Oakland as secondary security for the
prompt payment of said drain bonds.
28th d ay of April , 1970, at 9 °30 o'clock A.M., the
ABSENT: Hamlin. (1)
At a meeting of the Oakland County Board of Commissioners,
held in the County Building in the City of Pontiac, Michigan, on
Eastern Standard Time.
PRESENT: Aaron, Bawden, Benson, Brennan Coy, Edwards, Gabler, Grba,
Horton, Houghten, Kasper, Mainland, Mastin, Mathews, O'Brien,
O'Donoghue, Olson, Patnales, Perinoff, Pernick, Powell, Richards,
Richardson, Szabo, Walker, Wilcox. (26)
Misc. 5357
IN RE: SNYDER DRAIN
The following resolution was offered by
and seconded by Mr. O'Donoghue
Mr. Horton
WHEREAS, proceedings have been taken by the Statutory
Drainage Board for the location, establishment and construction of
the Snyder Drain under the provisions of Act No. 40•of the Public
Acts of Michigan of 1956, as amended, pursuant to a petition filed
by the City of Southfield on January 16., 1968; and
WHEREAS,- the said Drainage Board by resolution adopted
on March 20, 1970, authorized and provided for the issuance of
bonds in the aggregate principal amount of $675,000 in anticipation
of the collection of an equal amount of special_ assessments against
the City of Southfield and the County f• Oaklandas their respective
shares of the cost of said drain, said special assessments having
been therefore duly confirmed by said Drainage Board; and
WHEREAS, said bonds are to be designated Drain Bonds, are
to be dated April 1, 1970, will bear interest at a rate not
exceeding 8%, and will be subject to redemption prior to maturity in
accordance with the provisions of the bond resolution; and
WHEREAS, Section 474 of said Act No 40, as amended,
provides in part as follows:
"If any public corporation fails or neglects to
account to the county treasurer for the amount of
any installment and interest, then the county
treasurer shall advance the amount thereof from
county funds in the following cases:
"(1) If any bonds or other evidence of indebted-
ness have been issued to finance a project, the peti-
tion for which was filed after June 6, 1961-in anti-
cipation of the collection of -the installment and in-
terest pursuant to the provisions of this chapter and
the board of supervisors has previously acted, by a
resolution adopted by a 2/3 vote of its members elect,
to pledge the full faith and credit of the county for
the prompt payment of the principal of and interest
on the bonds or evidence of indebtedness, or
"(2) If any bonds or other evidence of_indebt-
edness have been issued to finance a project, the
petition for which was filed prior to June 6,1961
in anticipation of the collection of the installment
and interest pursuant to the provisions of this
chapters"
WHEREAS, said Drainage Board deems it advisable and
necessary to obtain from this Board a resolution consenting to
the pledge of the full faith and credit of the county on the
aforesaid bonds; and
WHEREAS, the said drainage project is immediately
necessary to protect and preserve the public health and therefore
it is in the best interest of the County of Oakland that said
bonds be sold.
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NOW, THEREFORE, BE IT RESOLVED BY THE OAKLAND COUNTY
BOARD OF COMMISSIONERS:
1. That pursuant to the authorization provided in Section
474 of Chapter 20 of the Drain Code of 1956, as amended, the Oakland
County Board of Commissioners does hereby irrevocably pledge the
full faith and credit of the County of Oakland for the prompt payment
of the principal of and interest on the said Drain Bonds, and does
agree that in the event the City of Southfield or the County of
Oakland shall fail or neglect to account to the County Treasurer of
the County of Oakland for the amount of any special assessment
installment and interest, for the Snyder Drain, when due, then the
amount thereof shall be immediately advanced from County Funds, and
the County Treasurer is directed to immediately make such advancement
to the extent necessary.
2. That in the event that, pursuant to said pledge of
full faith and credit, the County of Oakland advances out of County
Funds, all or any part of said installment and interest, it shall
be the duty of the County Treasurer, for and on behalf of the County .
of Oakland, to take all actions and proceedings and purse all
remedies permitted or authorized by law for the reimbursement of
such sums so paid.
3, That all resolutions and parts of resolutions insofar
as the same may be in conflict with the provisions of' this resolu,
tion be and the same hereby are rescinded.
ADOPTED: Yeas - Aaron, Bawden, Benson, Coy, Edwards, Gabler, Grba, Horton,
Houghten, Kasper, Mainland, Mastin, Mathews, O'Brien,
O'Donoghue, Olson, Patnales, Perinoff, Pernick, Powell,
Richards, Richardson, Szabo, Wilcox. (24)
Nays - Brennan (1)
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STATE OF MICHIGAN )
)Sa:
COUNTY OF OAKLAND )
I, the undersigned, the duly qualified and acting County
Clerk and Clerk of the Oakland County Board of Commissioners, do
hereby certify that the foregoing is a true and complete copy of a
resolution adopted by a 2/3rds vote of its members-elect at the
meeting of the Board of Commissioners held on the 28th d ay of
April , 1970, the original of which is on file in my
office.
Lynn D. Allen, County Clerk
MINUTES OF THE MEETING OF THE DRAINAGE
BOARD FOR THE SNYDER DRAIN
March 20, 1970
A meeting of the Drainage Board for the Snyder Drain was
held in the office of the Oakland County Drain Commissioner, .550
South Telegraph Road, in the City of Pontiac, Michigan, on the 20th
day of March, 1970, at 1045 o'clock AM., Eastern Standard Time.
The meeting was called to order by the Chairman,
PRESENT: Daniel W. Barry, Chairman
Oakland County Drain Commissioner
Robert F. Patnales,.Chairman
Oakland County Board • of Supervisors
Daniel T, Murphy, Chairman of the
Oakland County Board of Auditors
-
ABSENT: None
ALSO
PRESENT: James R. Nichols, Deputy Drain Commissioner
Howard Rummell,
Oakland County Drain Commissioner's Office
James E. Pemberton
Drain Commissioner's Office•
John A. Everhardus
Bond Counsel
The minutes of the March 5, 1970 meeting of the Board
were read. It was moved by Patnales and seconded by Murphy that
the said minutes 'beapproved as read.
ADOPTED: Yeas - 3
Nays - 0
The Chairman presented a report from Hubbell, Roth &
Clark, Inc., recommending acceptance of the low bid for construction
of the Snyder Drain. project. The following resolution was offered
by Patnales and seconded by Murphy:
RESOLVED, that the contract to conetluct the Snyder Drain
be awarded to Vito's Trucking, Inc., the lowest bidder,.in the
amount of $460,432 and that the Chairman and other members of this
Drainage Board be and they hereby are authorized to.execute the
construction contract with said company, subject to the sale of
bonds, and subject to the furnishing of the proper certificates of
insurance, construction and performance bonds and other information
required by the terms of said contract and the bid specifications.
ADOPTED: Yeas - 3
Nays - 0
The Chairman presented the revised estimate of the cost
of the Snyder Drain, which was based on the actual construction bids
received and reads as follows:
Constrdction Estimate:
Part "A"
Part "B"
Part "C" 4,210.00
$460 3 432,00
18,978.00
14,800.00
$ 30,987.00
4,013.00 $ 35,000.00
$ 20,000.00
$ 4,875.00
2,150.00 $ 7,025.00
$ 1,182.00
A. Southfield News
B. Daily Tribune
C. Michigan Contractor
D. .Michigan Investor
7. Rights of Way Incl. Cost of Negoliator
8. Capitalized .Interest (8% x 1 yr. x $675,000.00)
9 .. Contingencies (9.0456%)
TOTAL ES IIMATED COST
80.00
120.00
90.00
300.00 $ 590.00
$ 7,000.00
$ 54 3000.00
$ 55,993.00
$675,000.00
•:SNYDER DRAIN
ESTIMATE OF COST
• Engineer Design Fee
. Resident Engineer
• Inspection Incl. Layout.
Legal & Finantial
A. Lual . •
B. Financial
. Publishing Notices
-5.. Administrative Expense To-Date
Prepared By:
James E. Pemberton
Deputy & Chief Engineer
Drain Commissioner's Office
March 13, 1970
JEP:es
The following resolution was offered by Murphy and
seconded by Patnales;
RESOLVED, that the revised eStimate of cost of the Snyder
• Drain in the •aggregate • amount of $675,000 as presented to this
Drainage Board be and the same hereby is approved and adopted and
ordered filed with the Chairman of this Drainage Board.
ADOPTED: Yeas - 3
Nays -• 0
The Chairman reported on the recommendations of Kenower,'
MacArthur & Co., the financial consultants for the Drainage Board,
concerning the computation and preparation of an assessment roll
to assess 'the cost of the Snyder Drain ,project against the City of - -
Southfield and theCoUnty:of Oakland accordance with the-appor-
tionMents as adopted and confirmed by the Drainage Beard on March 5 ,
1970. The suggestions which had been made on behalf of the public
corporations and the payment schedules which had been agreed upon
were discussed.
The following resolution was offered Patnales and
seconded by Murphy:
WHEREAS, the Drainage Board for the Slyder Drain has
fixed- and confirmed apportionments of the cost of said drain as.
set forth in the resolution of the Board adopterMarch 5, 1970, and
in the final order of apportionment of the cost. of said drain filed
• in the office of the Chairman of this Board on Larch 5, 1970.
THEREFORE, BE IT RESOLVED BY THE DRAI/AGE BOARD FOR THE
SNYDER DRAIN, as follows:
-
shall be as follows,:
1971 -$25000
1972 - 25,000
1973 - 25,000
1974 - 50,000
1975 - 50,000
1976 - 50,000
1977 - 50,000
1978 - 50,000
1979 - $.50,000
1980 - 50,000
1981 - 50,000
19.82 - 50,000
1983 - 50,000
1984 - 50,000
1985 - 50,000
1. That the Chairman- of said Drainage. Board is hereby
directed to prepare a special assessment roll assessing the sum -of
$675,000 (which is the revised estimated cost. of the Snyder Drain)
against the public corporations in accordance with the said, appor-
tionments heretofore confirmed, and to divide the total•amount
assessed against the public corporations in 15 annual installments,
the first. of which shall become due and payable on April 1, 1971 and
one additional installment shall become due and payable on the first .
day of April in each year thereafter. That unpaid installments shall
bear interest at the rate of 8% per annum from such date asshall be
hereafter established,
. That the aggregate of the installments of principal
payable on April 1st of each year by all of the public corporations
3, That the said special assessment roll shallhe
prepared in accordance with the provisions of Chapter 20 of Act
No. 40 of the Public Acts of 1956, as amended, and that when the
said special assessment roll shall have been prepared it shall be
presented to this Drainage Board for approval.
ADOPTED Yeas - 3
Nays - 0
The Chairman presented to the Drainage Board Special
Assessment Roll No. 1 for the Snyder Drain which special assessment
roll contains a statement signed by the Chairman and the other
members of this Board to the effect that it was prepared in accordance
with the directions of this Board and the statutory provisions
applicable thereto.
The following resolution was offered by Murphy and
seconded by Patnales:
1. That Special Assessment Roll No. 1 for the Snyder
Drain to be constructed pursuant to a petition filed with the
'Oakland County Drain ComMiSsioner Oh January 16, 1968, upon which
special assessment roll are spread assessments against the City of
Southfield and Ihe County Oakland, aggregating the Eirineipal-Sum
f $675,000 be and the same is hereby approved and ordered to be
filed with the ChairMan:-
2. That the Chairman shall execute the statement affixed
to said roll setting forth the date of such approval.
3. That the several annual installments of the assessments
against the public corporations as set forth on said special assess-
ment roll, shall become due on April 1 of each year as indicated
thereon, and that all installments from time to time unpaid shall
bear interest from September 1, 1970 until paid, at the rate of 8%
per annum payable annually on the due date in each year of each
- installment: Provided, that if at any time the amount of assessment
installments and the interest on unpaid installments collected by
the Drainage Board and on hand shall exceed the amount of principal
and interest which said Board is required to pay, pursuant to the
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schedule of maturities, upon the bonds to be issued in anticipation
of the payment of said special assessments, then any excess in the
amount of assessment installments and interest so collected and on .
hand (after allowance for administrative expenses in connection with
said bonds, and after allowance for any excess in assessment.install-
. ments in one or more years required to be accumulated to meet bond
maturities in a subsequent year or years) shall.be -credited pro-rata
to the public corporations, which credit shall be applied first to
reduce the amount of the interest becoming due on the next assessment
installment payment date and Second to reduce the amount of the next -
such assessment installment —
4. Any public corporation may pay in advance of maturity
all or any part of an annual installment due from it by surrendering
to the co*l.nty, bonds issued in- anticipation of the said special
. assessments, of a like principal amount maturing in the same calendar
year as the installment, with all future due interest coupons
attached thereto. Accrued interest upon the amount so paid upon any
installment and the accrued interest upon the bonds surrendered,
shall be paid in cash. All bonds and coupons so surrendered shall
be cancelled.
5. That the Chairman of the Drainage Board shall certify
within 10 days hereafter to each public corporation assessed the
amount of the total assessment against it and of the amount ofthe
various installments, the due date of each installment and the rate
of interest upon the installments from time to time unpaid, and
that said Chairman shall also each year as provided - by law notify
each public corporation of the amount of the installment and interest
next becoming due.
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ADOPTED: Yeas - 3
Nays - 0
The following resolution was offered by Murphy and
seconded by Patnales:
RESOLVED, that the Drainage Board for the Snyder Drain,
hereby adopts a seal for the drainage district which shall be cir-
cular in form and upon it shall appear the words "Snyder Drainage:
District, .Oakland County, Michigan, Corporate Seal".
ADOPTED: Yeas -
Nays -
The following resolution was offered by Patnales and
_ .
seconded by_Murphy:
• WHEREAS, pursuant to a petition filed with the Oakland
County Drain Commissioner on January 16, 1968, proceedings have
heretofore been taken under the provisions • of Chapter 20 of Act.
No. 40 of the Michigan Public Acts of 1956, as amended, for the
location, establishment and construction of the Snyder Drain in
the County of Oakland, State of Michigan, at an estimated cost of
.$675000, which amount has been assessed in accordance with the
apportionments confirmed by the Drainage Board for said drain on
March 5, 1970; and
WHEREAS, the. Final Order of Apportionment was filed in.
the office of the Chairman • of the Drainage Board on-the 5th day
of March, 1970; and
WHEREAS, in accordance with said apportionmentsa special
assessment roll designated "Special Assessment Roll No. 1. for
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Installment Due
April 1
1971
1972
1973
1974
• 1975
1976
Total
25,000
25,000
25,000
50,000
50,000
50,000
Snyder Drain" was approved by said Drainage Board on this date upon
which special assessment roll the said sum_ of - $675,000 was assessed;
and
WHEREAS, the amount assessed on said roll to the public
•corporations was divided into 15 installments one of.which install-
ments will become due and payable on April 1 in each year beginning
with the year 1971, with interest upon all unpaid installments from
September 1, 1970, at the rate of 8% per annum, • payable on the due
_date of each installment in each year with the following proviso:
Provided, that if at any time the amount of the
assessment installments and the interest on un-
paid installments collected by the Drainage Board
and on hand shall exceed the amount of principal
and interest which said Board is required to pay,
pursuant to the schedule of maturities, upon the
bonds to be issued in anticipation of the payment '
of said special assessments,Ithen any exeess_in
the amount of assessment installments and interest
so collected and on hand (after allowance for ad-
ministrative eXPenses in -connection with said bodS;
and after allowance for any excess in-asseSsment
installment in one or more years required to be
accumulated to meet bond maturities in a subsequent .
year or years), shall be credited pro-rata to the
public corporations, which credit shall be applied
first to reduce the amount of the interest becoming
due on the next assessment installment payment date
and second to reduce the amount-of the next such
assessment installment.
WHEREAS, the annual installments payable on the assess-
ment against the public corporations are as follows:
1977
1978
1979
1980
1981
1982
1983
1984
1985
$ 50,000
50,000
50,000
5p,000
50,000
50,000
50,000
50,000
50,000
Installment Due
April 1 Total
$675,000
THEREFORE, BE.1T. RESOLVED BY THE DRAINAGE BOARD FOR THE
-SNYDER DRAIN, as followsi
. That the said drain project is necessary for the
public health and in order to finance the cost thereof it is neces-
'sary - to -issue bonds a, herein-after provided.
- • - -•-. -2. --That :-the -bonds of the Snyder- Drainage District be
. issued in the aggregate principal sum of $675,000 in anticipation -
f the aollection of an equal amount of special assessments assessed
on Special Assessment Roll No 1 for the Snyder Drain, said bonds
to-be dated April 1, 1970; to be coupon. bonds all in the denomina-
tion of $5,000 each; shall bear interest at a rate or rates to be
hereafter determined not in excess of 8% per annum payable on
November 1, 1970, and semi-annually thereafter on .the- first days
of May and November in each year; to be numbered consecutively In
the direct order of their maturities from 1 upwards; and to mature
on the first day of May in-each year as follows:
a971 - $25,000
1972 - 25,000
1973 - 25,000
1974 - 50,000
1975 - 50,000
1976 - 50,000
1977 - 50,000
1978 - 50,000
1979 - $50,000
1980 - 50,000
1981 - 50,000
1982 - 50,000
1983 - 50,000
1984 - 50,000
1985 - 50,000
All bonds shall have proper coupons attached thereto evidencing
interest to their respective dates of maturity. Bonds maturing
prior to May 1, 1979 shall not be subject to redemption prior to
maturity. Bonds maturing on or after May 1, 1979 shall be subject ,
to redemption prior to maturity , at the option of the drainage district
in inverse numerical order on any one or more'interest_payment dates
on and after May 1, 19.78 at pat and accrued' interest plusa premium -
on each bond called to be redeemed computed as a percentage of the
principal amount thereof in'accerdance with the following schedule:..... 0 -
3% if called to be redeemed on or. after May 1-, 1978,'
but prier to maturity "
,Notice of redemption shall be given to the holders of the bonds -
called to be redeemed, by publication of such notice not less than
thirty (30) days prior to the date fixed for redemption in a news-
paper 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 principal paying agent to redeem the same.
3. That in said bonds the full faith and credit of the
said drainage district shall be pledged for the prompt payment of
the principal thereof and the interest' thereon as the same become
due, and in addition, the full faith and credit of the County of
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Oakland will also be pledged therefor, pursuant to the provisions
Section 474 of the Drain Code of 1956,. as amended, if two-thirds
of the members elect of the Board of Commissioners of the County of
Oakland vote favorably on a resolution pledging the full faith and
credit of the county on these bonds.
4. 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 or trust company which qualifies as a paying
agent under Federal or Michigan law and which shall be designated
by the original purchasers of the bonds. Such purchasers shall
have the right to name a similarly qualified co-paying agent.
That the Chairman and either one or both of the
remaining members of said Drainage Board are hereby authozed to -
execute said bonds for and on behalf of said drainage district and
to affix the seal Of said drainage district thereto, ad the thair-
man is hereby authorized to execute the interest coupons to be
attached to said bonds by causing to be affixed thereto his
facsimile signature; and that upon the execution of said bonds and
attached coupons; the same shall be delivered to the Treasurer of
said drainage district who is hereby authorized and directed to
deliver said bonds and attached coupons to the purchasers thereof
upon receipt of the purchase price therefor.
6. That the estimated period of usefulness of the
project for which said bonds are being issued is herebY determined
to be in excess of 50 years.
- 7. That the issuance and sale of said bonds shall be
subject to permission being granted therefor by the Municipal
-1 1-
Finance Commission of the State of Michigan and the Chairman is
hereby authorized and directed to make application • to said Commission
for permission to issue and sell said bonds as provided by the terms
of this resolution.
8. That of the proceeds of the sale of said bonds an
amount equivalent to the interest payable on said bonds for a period
of twelve months from their date is to be Used to pay capitalized
interest thereon.
That all collections (including both principal and
interest) on said Special Assessment Roll No l , shall be placed in
a fund to be known as - the "Snyder Drain -Special Assessment Roll
No. l Fund" and shall be used solely to pay the principal and
- interest -On the bond authOrized therein. -All excess funds, including_
proceeds of the sale of bonds, remaining after construction of the
Snyder Drain is completed, and all charges in connection with the
location, establishment and construction of said Drain are paid in
full, shall be divided among tho'public corporations assessed on
the basis of apportionments and shall be used bythe Drainage Board
to. pay principal and interest on the bonds authorized herein, when
due, or to purchase said bonds and the obligations of said public
corporations shall be reduced accordingly. All bonds so paid or
purchased shall be cancelled.
10. That said bonds shall be in. substantially the
following form, to wit:
Number $5 ,000
UNITED STATES OF AMERICA
.STATE OF MICHIGAN
COUNTY OF OAKLAND
SNYDER DRAINAGE DISTRICT
' DRAIN BOND
KNOW ALL MEN BY THESE PRESENTS, that the Snyder Drainage
District, Oakland County, 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 on November 1, ETTUT -and
thereafter scmi-annuo,lly 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 AT:slrica at the
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 tE-ea7r-ma.turitios- from
1 through 135, aggre gating the prin-cipal sum of Six Hundred
Seventy-Five Thousand Dollars ($675,000), issued under and pursuant
to and in full conformity with the Constitution and Statutes of the'
State of Michigan, and particularly Chapter 20 of_Act No. 40 of the
-Public Acts of 1956, as amended- The bonds of this series are
-issued in anticipation of the collection of an eclual'amount -bf
spedial assessments assessed against the City of Southfield and the
County of Oakland, on special Assessment Roll No 1 for the Snyder
Drain" (an intraHcounty drain), which assessments were made to defray
the cost of locating, establishing and constructing the said drain
and which assessments are general obligations of said public
corporations. The full faith and credit of the Snyder Drainage
District is hereby pledged to the prompt payment of the principal
of and interest on this bond as the same become due and in addition
the full faith and credit of the County of Oakland • is pledged
therefor.
- Bonds of this series maturing prior to May 1, 1979, are
not subject to redemption prior to maturity. Bonds maturing on
and after May 1, 1979, are subject to redemption prior to maturity
at the option of the Drainage District in inverse numerical order
on any one or more interest payment dates on and after May 1, 1978,
at par and accrued interest plus a premium on each bond called to
be redeemed computed as a percentage . of the principal amount thereof
in accordance with the following schedule:
3% if called to be redeemed on or after May 1, 1978,
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. Bonds so called for redemp-
tion shall not bear interest after the date fixed for redemption,
provided funds are on hand with the principal paying agent to redeem
the same,
It is hereby certified, recited and declared that all
acts, conditions and things -required to exist, happen and be per-
.formed precedent to.and in the issuance of _the bonds of this series,
existed,,have happened and have been performed indue_time ., form .
and manner as required by the Constitution and Statutes of the State'
of Michigan, and that the total indebtedness of said Drainage Dis-
trict, including this series of bonds does not exceed any consti-
_tutional or statutory. limitation.
IN WITNESS WHEREOF, THE SNYD7P, DRATNIT-E DTSTRICT, Oakland
County, Michigan, by its Drainage Board, has caused this bond to be
signed in its name by the Chairman and at least one other member of
said Drainage Board, and its corporate seal to be affixed hereto,
and has. caused the annexed interest coupons to be executed with the
facsimile-signature of said-Chairman, all as of the 1st day of
April, A.D. 1970.
SNYDER DRATNACB DISTRICT
By
Chairman of the Drainage Board
By
. member of the Drainage Board
By
Member of the Drainage Board
(SEAL)
(COUPON)
Number
On the 1st day of AD. 19 the SNYDER
DRAINAGE DISTRICT, Oakland County, Michigan will pay to the bearer
hereof the sum shown hereon, lawful money of the United States of
America at the , in the
City of
interest due on thEt -day on its Drain ilond, dated April 1, 1970,
No . This coupon is subject to the redemption provisions
in said bond.
(FACSIMILE)
Chairman
, same being the
11. That if for any reason the original assessments shall
not be sufficient to pay the principal and interest on said bonds,
then the Drainage Board shall make such additional assessments
therefor aS may be necessary, apportioned as in the first instance.
ADOPTED: Yeas - 3
Nays - 0
The following resolution was offered by Patnales and
seconded by Murphy:
BE IT RESOLVED, that sealed proposals for the purchase
of $675,000 Drain Bonds to be issued by Snyder Drainage District,
to be dated April 1, 1970, be received up to such time as shall
be later determined by this Drainage Board and that notice thereof
be published in accordance with law in the Bond Buyer and in the
Daily Tribune, a newspaper of general circulation in the said
Drainage District, which notice shall be substantially in the
fallowing form:
1976 - 50,000
1977 - 50,000
1978 - 50,000
1972 - 25,00-0
1973 - 25,000
1974 - 50,000
1975 - 50,000
1971 - $25,000 1979 - $50,000
1980 - 50,000
1981 - 50,000
1982 - 50,000
1983 - .50,000
1984 - 50,000
1985 - 50,000
OFFICIAL
NOTICE OF SALE
$675,000
SNYDER DRAINAGE DISTRICT
COUNTY OF OAKLAND, STATE OF MICHIGAN
DRAIN FONDS
Sealed bids for the purchase of Drain Bonds to be issued
by the Snyder Drainage District in Oakland County, Michigan, of the
par value of $675,000 will be received by the undersigned at his
office, 550 South Telegraph Road, in the City of Pontiac, Michigan,
until o'clock .M., Eastern Standard Time, on
the day of , 1970, at which time and place
said bids will be ub1ic1y opened andread,
_ Said bonds will be dated Apriil, 1970, will be coupon
bonds., all in the denomination of $5,000 each, will be nlii-nbered
consecutively in the direct order of their maturities from 1 upwards
and will bear interest from their date at a rate or rates not
exceeding 8% per annum payable on November 1, 1970, and thereafter .
semi7annua11yon May ..1:_and November 1 of each year Each bid shall
state the annual interest rate or rates upon which it is submitted,
expressed in multiples of 1/8th of 1% or 1/20th of 1% or both. The
interest on all bonds maturing in the same year shall be at one rate
only and shall be evidenced by one coupon only for each coupon
period. No bond shall bear interest at a rate less than 50% of the
rate borne by any other bond of this issue. Accrued interest to
date of delivery of such bonds must be paid by the purchaser at the
time of delivery. .
Said bonds will mature serially on the 1st day of May
in each year as follows:
Bonds maturing prior to May 1, 1979 shall not be subject
to redemption prior to maturity. Bonds maturing on or after May 1,
1979 shall be subject to redemption prior to maturity at the option
of the Drainage District in inverse numerical order on any one or
more interest T=.,ayment dates on and after May 1, 1978, at par and
accrued interest plus a premium on each bond called to be redeemed
computed as a percentage of the principal amount thereof in accor-
dance with the following schedule:
3% if called to be redeemed on or after May 1, 1978,
but prior to matturity.
Notice of redemption shall be published 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.
,Both principal and interest will be payable at such bank
or trust company which qualifies as a paying agent under Federal
or Michigan law and which shall be designated by the original pur-
chaser of the bonds, who may also designate a similarly qualified
co-paying agent.
The said bonds are to be issued under the provisions of
Chapter 20 of Act No, 40 of the Public Acts of 1956, as amended, in
anticipation of the collection of special assessments assessed
against public corporations on Special Assessment Roll No. 1, for
the Snyder Drain, made to defray the cost of locating, establishing
and constructing the said drain. The assessments are against the
City of Southfield and the County of Oakland .. The assessment
• against -each:of said public corporations-is a general obligation of
said:public corporations and each public corporation ,is obligated
and has the power to levy ad valorem taxes upon all the property
Within its limits in an amount sufficient to pay the assessment
against it with 'interest, Without limitation -As to rate or -ateunt; -
The Statute uhdpr which the bends are to be issued -provides that
the full faith and credit of the said Drainage District is pledged
to the prompt payment of the principal of and interest on said
bonds.* - - -
No bids for less than all of the bonds or at less than
the par value of the bonds will be accepted.
For the purpose of awarding the bonds, the interest cost
of each bid will be computed by determining, at the rate or rates
.specified therein, the total dollar value of all interest on all
of the bpnds from (here insert the first.
day of the month next following the date of receiving bids or the
date of the bonds, whichever is later) to their respective maturi-
ties and deducting therefrom any premium. Such bonds will be
awarded to the bidder whose bid on the above computation produces
the lowest cost to the Drainage District on all of the bonds.
.A certified or cashier's check in the amount of $13,500,
drawn upon an incorporated bank or trust company and payable to
the order of the Treasurer of the Drainage Board for the Snyder
Drain must accompany each bid as a guarantee of good faith on the
part of the bidder, to be forfeited as liquidated damages if such
bid 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 successful
bidder shall have the right at his option, to cancel the contract
of purchase if the bonds are not tendered for delivery within 60
days from the date of sale thereof, and in such event the successful
bidder shall be entitled to the return of the deposit accompanying
the bid.
Bids shall be conditioned upon the unqualified opinion
of Dickinson, Wright, McKean & Cudlip, attorneys, Detroit, Michigan,
approving the legality of the bonds. The cost of said legal opinion
and of the printing of the bonds will be paid by the Drainage
District. Bonds will be delivered at Detroit, Michigan, Chicago,
Illinois, or New York, New York.
The right is reserved to reject any or all bids.
Envelopes containing the bids should be plainly marked
"Proposal for Snyder Drain Bonds".
DANIEL W. BARRY
Chairman of the Drainage Board for the
Snyder Drain
550 South Telegraph Road
Pontiac, Michigan
-
APPROVED: ,1970
STATE OF MICHIGAN
MUNICIPAL FINANCE COMMISSION
(To be added if Board of Commissioners approves)
By resolution adopted by the affirmative vote of two-thirds of the
members elect of the Board of Commissioners of County ofOakland,
.and-pursuant to said Chapter 20 of Act No. 40 of the Public Acts of
1956, as amended, the full faith and credit of the County of Oakland
is pledged to the prompt payment of the principal and interest on
said bonds.
BE IT FURTHER RESOLVED that the Chairman • of this Board
Be and he is hereby authorized and directed to forward the foregoing
Notice of Sale to the Municipal Finance Commission for its approval.
ADOPTED: Yeas - 3
Nays - 0
The -Chairman presented a proposed agreement between the
Drainage Board and Kenower, MacArthur & Co., for financial consulting
services. It was moved by Patnales and seconded by Murphy that the
Chairman be authorized to execute said agreement on behalf of the
Drainage Board.
ADOPTED: Yeas - 3
Nays 7 0
It was moved by Barry and seconded by Murphy that payment
in the amount of $25..00 to Robert F. Patnales for attendance at
this meeting be approved.
ADOPTED': Yeas - 3
Nays - 0
There being no further busine'ss„upon motion by Murphy
and seconded by Patnales and unanimously Carried, the meetingwas
adjourned.
STATE OF MICHIGAN )
)5S:
COUNTY OF OAKLAND )
I, the undersigned, do hereby certify that the foregoing
is a true and complete copy of proceedings taken by the Drainage
Board for the Snyder Drain, Oakland COunty, Michigan, at the
meeting above indicated, the original of which is on file in my•
Daniel W.--arry
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IDANIFT, W. PARRY
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3Amrs R. NitHoLs
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Fic ffice,
OAKLAND COUNTY DRAIN COMMISSIONER
550 SOUTH- TF,I,F.GRA.PH ROAD
PONTIAC, 'MICHIGAN 4S053
FrsAl. 8-4525
Honorable Commissioners
County of Oakland
1200 North Telegraph Road
Pontiac, Michigan
Reference: SNYDER-DRAIN
Mr. Chairman, Ladies and Gentlemen:
There is submitted to you herewith a certified copy of a resolution
adopted by the Drainage Board for the Snyder Drain authorizing the
issuance of Drain Bond ,-, in the aggregate amount of $675,000.00 pur-
suant to the provisions of Chapter 20 oF Act No, 40 of the Public
Acts of 1956, as amended, and ether applicable law. Also submitted
to you herewith is a form of proposed resolution for adoption by the
Board of Commissioners for the purpose of pledging the full faith and
credit of the County of Oakland as secondary security for the prompt
payment of said Drain Bonds.
The said Drain Bonds are issued in anticipation of the payment by the
City of Southfield and the County of Oakland of Drain Assossmnts at
large against each of the said public corporations in the aggregate
amount at least equal to the amount of said bonds. The full faith and
credit of each of said public corporations is pledged, by 1?w, to the
prompt payment of said assessments and the interest thereon, when due.
The law further authorizes and obligates each of said public corpera-
tions to levy a tax in an amount sufficient to make said payments (un-
less other funds are on hand available for said purpose) which tax may
be levied without limitation as to rate or mount_ The County is
entitled, by law, to recover from said public corporations the amount
advanced from County funds at anytime in fulfillment of the County's
secondary pledge of its full faith and credit.
It is respectfully requested that the enclosed resolution be adopted
for the reasons set forth in the preamble thereto and because the pledge
of the County's full faith and credit will result in a material savings
in bond interest to be paid.
Very truly yours,
DRAINAGE DISTRICT