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HomeMy WebLinkAboutResolutions - 1970.08.06 - 16348CUTION NO. 5450 BY: Mr. Horton IN RE: MARKER RELIEF DRAINS TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS M.P._ CHAIRMAN, LADIES AND GENTLEMEN: WHEREAS, proceedings have been taken by the Statutory Drainage Board for the construction of the Varner Relief Drains under the provisions of Act No. 40 of the :Public Acts of Michigan of 1956, as amended, pursuant to a petition filed by the Township of Avon, October 15, 1968; and WHEREAS, the said Drainage Board by resolution adopted on July 9, 1970, authorized and provided for the issuance of bonds in the aggregate principal amount of $1,165,000 in anticipa- tion of the collection of an equal amount of special assessments against the Township of Avon and the County of Oakland as their respective shares of the cost of said relief drains, 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 November 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 , Section 474 of said Act No 40, as amend e d, provides in part as follows If any public Corporstion'fails or to account to the county tre any installment and tropurer advanc e ounty fund in the followin " (1) ness If any I. tion for whIch w4T:5 thor of the terest pursuant . ..mnds or ,T,:videnc7.2 to a pro1ect, the led after June 6, in. of ol the board of .n.aa resolution adopted by a 2/3 of it to pledge the full faith and credit Of te the prompt payment of the printpal of and infe. on the bonds or evidence of 1:I ness, en tor c2,t "(2) If any bonds or eth(.A7 evidence of indebt- edness have been issued to fi.uance a prolect, 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 chapter." WHEREAS, said Drainage Board deems it advisable and neces- sary 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 neces- sary to protect and preserve the public health and therefore it is in the best interest of the County of Oakland that said bonds be n NOW, THEREFORE, BE IT RESOLVED BY THE OATUAND COUNTY BOARD OF COMMISSIONERS: 1. That pursuant to the authorization provided in Section 474 of Chapter of the Drain Code of 1956,as am.cned- the Oakland County Board of Commissioners does herebyjrrevocably, p2 ad;,. the full faith and credit of the County of Oakland for the at of the principal of and interest on the said Drain Ponds, agree that in the c..ye:nt. the -Township cf c:-.7 the shall fail or ncgloct to accunt to the Cntry Trea.sure of 0a:kira for the amount of an',' interest, for the Varner Relief Drains, when due, then the amount thereof shall be immediately advanced from County Funds, and the, County Treasurer is directed to immediately make such advament to the extent necessary. 2. That in the event that, pursuant to said edge 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. MR. CHAIRMAN, on behalf of the Public Works Committee, move the adoption of the foregoing resolution. PUBLIC WORKS COMMITTEE •_.,/1 Har ,7 O. 7or4...on, Moved by Horton supported by Houghtenthe resolution be adopted. Powell, Richards, Richardson, Szabo, Walker, Wilcox, Aaron, Bawden, Benson, Coy, Edwards, Gabler, Grba, Hamlin, Horton, Houghten, Kasper, Mainland, Mastin, Mathews, O'Brien, O'Donoghue, Olson, Patnales, Perinoff, Perniek, (26) ADOPTED: Ayes: Nays: Brennan. (1) Absent: None. (0) STATE OF MICHIGAN ) )SS: COUNTY OF OAKLAND ) I, the undersigned, the duly qualified and acting County Clerk of the County of Oakland, de hereby certify that the fore- going is a true and complete copy of a resolution adopted at a regular meeting of the Oakland County Board of Commissioners, held on the 6th day of August , 1970; the original of which is on file in my office. IN WITNESS WHEREOF, I have hereunto affixed my official signature this 6th day of August AD. 1970.• Lynn D. Allen, County Clerk DANIEL W. BARRY Commissiofxer JAMES E. PEMBERTON DePuty and Cbief Engineer HOWARD V. RUMMELL Finanix Officer July 14, 1970. JAMES R. NICHOLS Chief Deputy Committiuner OAKLAND COUNTY DRAIN COMMISSIONER 550 SOUTH TELEGRAPH ROAD PONTIAC, MICHIGAN 48053 FEDERAL 8,4585 Honorable Board of Commissioners County of Oakland 1200 North Telegraph Road Pontiac, Michigan 48053 Reference: VARNER RELIEF DRAINS Mr. Chairman, Ladies and Gentlemen: There is submitted to you herewith a certified copy of a resolution adopted by the Drainage Board for the Varner Relief Drains authorizing the issuance of Drain Bonds in the aggregate amount of $1,165,000.00 pursuant to the provisions of Chapter 20 of the Drain Code of 1956, as amended and other 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 Bonds are issued in anticipation of the payment by the Township of Avon and the County of Oakland of drain assessments at large against said public corporations in the aggregate amounts of at least equal to the amount of said bonds. The full faith and credit of said public corporations is pledged, by law, to the prompt payment of said assess- ments and the interest thereon, when due. The law further authorizes and obligates the said public corporations to levy a tax in an amount sufficient to make said payments (unless other funds are on hand avail- able for said purpose) which tax may be levied without limitation as to rate or amount. The County is entitled, by law, to recover from said public corporations the amount advanced from County funds at any time in fulfillment of the County's secondary pledge of full faith and credit. Re: Varner Relief Drains Page 2 Daniel W. Barry, Cha i rman OAKLAND COUNTY DRAIN COMMISSIONER Honorable Board of Commissioners July 14, 1970 It is respectfully requested that the enclosed resolution be adopted for the reasons set forth in the preambles and because the pledge of the County's full faith and credit will result in a material saving in bond interest to be paid. VARNER RELIEF DRAINS DRAINAGE BOARD Daniel T. Murphy; pm4r/ DWB:fy Enclosures MINUTES OF THE MEETING OF THE DRAINAGE BOARD FOR THE VARNER RELIEF DRAINS July 9, 1970 - A meeting of the Drainage Board for the Varner Relief Drains was held in the office of the Oakland County Drain Commissioner, 550 South Telegraph Road, in the City of Pontiac, Michigan, on the 9th day of July, 1970, at 10:00 o'clock A.M., Eastern Standard Time. PRESENT: The meeting was called to order by the Chairman. 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 James R. Nichols PRESENT: Deputy Drain Commissioner Robert J. Evans Drain COmmissioner's Office Howard Rummell Oakland County Drain Commissioner's Office John A. Everhardus Bond Counsel The minutes of the May 1:2, 1970 meeting of the Board were read. It was moved by Patnales and seconded by Barry that the said minutes be approved as read ADOPTED: Yeas - 3 Nays - 0 The Chairman presented the reviSed estimate of the cost of the Varner Relief Drains, which was based on the actual construc- tion bids received and reads as follows: $ 59,966.00 $ 49,922.00 1 8,500.50 1,543.50 2. Engineer's Design Fee Resident. Engineer Soil Borings VARNER DRAIN 1. Construction Bid $ 874,289.10 3. Inspection Incl. Layout $ 60,000.90 4. Legal & Financial a. Legal b. Financial $ 7,000.00 3,000.00 $ 10,000.00 5. Administrative Expanse To Date $ 2 3070.00 6. Publishing Notices a. Rochester Clarion b. Pontiac Press C. Michigan Contractor d. • Bond Buyer 7. Rights-of-ay Incl. Cost of Negotiator 8. Capitalized Interest (8% x 1 yr. x 1,200,000) 9. Contingcncies (7.9427%) $ 875.00 $ 8,500.00 $ 96,000.00 $ 88,299.00 200.00 250.00 125.00 300.00 TOTAL ESTIMATED COST $1,200,000.00 Prepared By: James E. Pemberton Deputy & Chief Engineer May 9, 1970 JEP:es The following resolution was offered by Patnales and seconded by Murphy RESOLVED, that the revised estimate of cost of the Varner Relief Drains in the aggregate amount of $1,200,000 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 Shannon & Co., the financial consultants for the Drainage Board, concerning the computation and preparation of an assessment roll to assess the cost of the Varner Relief Drains project against the Township of Avon, the County of Oakland, and the State of Michigan in accordance with the apportionments as adopted and confirmed by the Drainage Board on April 24, 1970. The suggestions which had been made on behalf of the public corporations and the payment schedules which had been agreed upon were discussed and it was reported that the State of Michigan will prepay its share of the cost in full in cash, The following resolution was offered by Patnales and seconded by . Murphy : WHEREAS, the Drainage Board for the Varner Relief Drains has fixed and confirmed, apportionments of the cost of said drain as set forth in the resolution of the Board adopted April 24, 1970, and in the final order of apportionment of the cost of said drain filed -3- in the office of the Chairman of this Board on April 24, 1970. THEREFORE, BE IT RESOLVED BY THE DRAINAGE BOARD FOR THE VARNER RELIEF DRAINS, as follows; 1. That the Chairman of said Drainage Board is hereby directed to prepare a special assessment roll assessing the sum of $1,200,000 (which is the revised estimated cost of the Varner Relief Drains)against the several public Corporations in accordance with the said apportionments heretofore confirmed, and to divide the total amount assessed against the Township of Avon and County of Oakland in 29 annual installments, the first of which shall become due and payable on April 1, 1972 and one additional installment shall become due and payable on the first 1day of April in each year thereafter. That unpaid installments shall bear interest at the rate of 8% per annum. 2. That the assessment against the State of Michigan and $1,855.00 of the assessment against the Township of Avon and $615.40 of the assessment against the County of Oakland shall be payable on or before November 1, 1970 and the aggregate of the installments of principal payable on April 1st of each year by the Township of Avon and the County of Oakland shall be as follows: 1972 - $20,000 1973 - 20,000 1974 - 20,000 1975 - 25,000 1976 - 25,000 1977 - 25,000 1978 - 30,000 1979 - 30,000 1980 - 30,000 1981 - 35,000 1982 - $35,000 1983 - 40,000 1984 - 40,000 1985 - 45,000 1986 - 45,000 1987 - 50,000 1988 - 50,000 1989 - 50,000 1990 - 50,000 1991 - 50,000 1992 - $50,000 1993 - 50,000 1994 - 50,000 1995 - 50,000 1996 - 50,000 1997 - 50,000 1998 - 30,000 1999 - 50,000 2000 - 50,000 -4 - 3. That the said special assessment roll shall be prepared in accordance with the provisions of Chapter 20 of Act No. 40 of the Public Acts of 4956, 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 Varner Relief Drains which special assess- ment roll contains a statement signed by the Chairman and the other members of this Board to the effect that it was prepared in accor- dance with the directions of this Board and the statutory provisions applicable thereto. The following resolution was offered by and seconded by Murphy Patnales 1. That Special Assessment Roll No. 1 for the Varner Relief Drains to be constructed pursuant to a petition filed with the Oakland County Drain Commissioner on October 15, 1968, upon which special assessment roll are spread assessments against the Township of Avon, the County of Oakland and the State of Michigan aggregating the principal sum of $1,200,000 be and the same is hereby approved and ordered to be filed with the Chairman. 2. That the Chairman shall execute the statement affix -ad to said roll setting forth the date of such approval. 3. That the several annual installments of the assess- ments against the Township of Avon and the County of Oakland as set -5- forth on said special assessment 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 April 1, 1971 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 install- ments 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, 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 installments in one or more years required to be accumu- lated 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 surrend- ering to the drainage district, 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 sur- rendered, shall be paid in cash. All bonds and coupons so surren- dered shall be cancelled. -6- 5. That the Chairman of the Drainage Board shall certi within 10 days hereafter to each public corporation assessed the amount of the total assessment against it, and shall notify the Township of Avon and the County of Oakland, of the amount of the 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. ADOPTED: Yeas - 3 Nays - 0 The following resolution was offered by Patnales and seconded by 1:21a_ty RESOLVED, that the Drainage Board for the Varner Relief Drains hereby adopts a seal for the drainage district which shall be circular in form and upon it shall appear the words "Varner Relief Drains Drainage District, Oakland County, Michigan, Corporate Seal". ADOPTED: Yeas - 3 Nays - 0 The following resolution was offered by _ Pat nales and seconded by Murphy WHEREAS, pursuant to a petition filed with the Oakland County Drain Commissioner on October 15, 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 -7-- construction of the Varner Relief Drains in the County of Oakland, State of Michigan, at an estimated cost of $1,200,000, which amount has been assessed in accordance with the apportionments confirmed by the Drainage Board for said drain on April 24, 1970; and WHEREAS, the Final Order of AppOrtionment was filed in the office of the Chairman of the Drainage Board on the 24th day of April, 1970; and WHEREAS, in accordance with said apportionments a special assessment roll designated "Special Assessment Roll No. 1 for Varner Relief Drains" was approved by said Drainage Board on this date upon which special assessment roll the said sum of $1,200,000 was assessed; and WHEREAS, certain of the amounts assessed on said roll to the Township of Avon and the County of Oakland were divided into 29 installments one of which installments will become due and payable on April 1 in each year beginning with the year 1972, with interest upon all unpaid installments from April 1, 1971, 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, then any excess in the amount of assessmett installments and interest so collected and on hand (after allowance for ad- ministrative expenses in connection with said bonds, 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 8 Installment Due ' April 1 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 first to reduce the amount of the interest becoming due on/the net assessment installment payment date and second to reduce the amount Of the next such assessment installment. WHEREAS, the State of Michigan will pay its assessment in full on or before November 1, 1970, and the Township of Avon and the County of Oakland will pay a total $2,470.40 of their assessments on or before November 1, 1970, thereby leaving only the assessment installments against the Township of Avon and the County of Oakland; and WHEREAS, the total annual installments payable on the assessments against the Township of Avon and the County of Oakland are as follows: Total 20,000 20,000 20,000 25,000 25,000 25,000 30,000 30,000 30,000 3 5 ,00 0 35,000 40,000 40,000 45,000 45,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 . 50,000 50,000 50,006 50,000 $1,165,000 -9- THEREFORE, BE IT RESOLVED BY THE DRAINAGE BOARD FOR THE VARNER RELIEF DRAINS, as follows: 1. That the said relief drains project is necessary for the public health and in order to finance the cost thereof it is necessary to issue bonds as hereinafter provided. 2. That the bonds of the Varner Relief Drains Drainage District be issued in the aggregate principal sum of $1,165,000 in anticipation of the collection of an equal amount of special assess- ments assessed on Special Assessment Roll No. 1 for Varner Relief Drains, said bonds to be dated November 1, 1970; to be coupon bonds all 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 in excess of 8% per annum payable on May 1, 1971, 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: 1972 - $20,000 1973 - 20,000 1974 - 20,000 1975 - 25,000 1976 - 25,000 1977 - 25,000 1978-- 30,000 1979 - 30,000 1980 - 30,000 1981 - 35,000 1982 - $35,000 1983 - 40,000 1984 - 40,000 1985 - 45,000 1-986 - 45,000 1987 - 50,000 1988 - 50,000 1989 - 50,000 1990 - 50,000 1991 - 50,000 1992 - $50,000 1993 - 50,000 1994 - 50,000 1995 - 50,000 1996 - 50,000 1997 - 50,000 1998 - 50,000 1999 - 50,000 2000 - 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 -10- maturity. Bonds maturing on or after May 1, 1979 shall be subject to redemption prior to maturity at the option of the county 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 May 1, 1982 2% if called to be redeemed on or after May 1, 1982 ; but prior to May 1, 1987 1% if called to be redeemed on or after May 1, 1987, but prior 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: Provided, that where any bonds shall be regis- tered, then notice of the redemption thereof shall be given by registered or certified United States mail addressed to the regis- tered holder thereof at the address shown on the principal paying agent's registration books, 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 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 Oakland will also be pledged therefor, purSuant to the provisions of 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. 5.: That the Chairman and either! one or both of the remaining members of said Drainage Board are hereby authorized to execute said bonds for and on behalf of said drainage district and to affix the seal of said drainage district thereto, and the Chairman 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 bends 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 40 years. -12- 7. That the issuance and sale of said bonds shall be subject to permission being granted therefor by the Municipal 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. sale of said bonds an on said bonds for a period used to pay capitalized 8. That of the proceeds of the amount equivalent to the interest payable of twelve months from their date is to be interest thereon. 9. That the advance payment to be made by the State of Michigan in the amount of $32,529.60 and the advance payments aggregating $2,470.40 to be made by the Township of Avon and the County of Oakland, shall be set aside for the construction'of the Varner Relief Drains and' all other collections (including both principal and interest) on said Special Assessment Roll No 1, shall be placed in a fund to be known as the "Varner Relief Drains Special Assessment Roll No. 1 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 Varner Relief Drains is completed, and all charges in connection therewith are paid in full, shall be divided among the public corporations assessed on the basis of apportionments and shall be used by the 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. The portion of such excess attributable to the State of Michigan shall be refunded to it in cash. _ -13- 10. That said bonds shall be in substantially the following form, to wit: -14-- UNITED STATES OF AMERICA STATE OF MICHIGAN COUNTY OF OAKLAND VARNER RELIEF DRAINS DRAINAGE DISTRICT DRAIN BOND Number $5,000 KNOW ALL MEN BY THESE PRESENTS, that the Varner Relief Drains Drainage District, Oakland County, Michigan, hereby acknow- ledges itself 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 May, A.D. 19 , together with interest thereon from the date hereof until paid, at the rate of per centum ( %) per annum, payable on May 1, 1971, and there- after-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 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 their maturities from 1 through 233, aggregating the principal sum of One Million One Hundred Sixty-Five Thousand Dollars ($1,165,000), 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 equal amount of special assessments assessed against the Township of Avon and the County of Oakland on Special Assessment Roll No 1 for Varner Relief Drains (an intra-county drain), which assessments were made to defray the cost of constructing the said relief drains and which assessments are the general obligation of said township and county. The full faith and credit of the Varner Relief Drains 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. 1 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 J., 1978, at par and accrued -15- By (SEAL) • Member of the Drainage Board 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 May 1, 1982 2% if called to be redeemed on or after May 1, 1982, but prior to May 1, 1987 1% if called to be redeemed on or after May 1, 1987, 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 redemption thereof shall be given by registered or certified United States mail addressed to the registered holder thereof at the address shown on the bond 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 principal paying agent to redeem the same. This bond may be registered as to principal only in the name of the holder on the books of the principal paying agent, and such registration noted on the back hereof by an official of said paying agent, and thereafter no transfer shall be valid unless made upon the said books and likewise noted on the back hereof. Trans- ferability by delivery may be restored by registration to the bearer. Negotiability of the interest coupons shall not be affected by regis- tration. 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 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 Drainage District, including this series of bonds does not exceed any consti- tutional or statutory limitation. IN WITNESS WHEREOF, THE VARNER RELIEF DRAINS DRAINAGE DISTRICT, 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 Draiange 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 November, A.D. 1970. VARNER RELIEF DRAINS DRAINAGE DISTRICT By - Chairman of the Drainage Board- By Member of the Drainage Board -16- (COUPON) Number On the 1st day of , A.D. 19 , the VARNER RELIEF DRAINS 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 , same being the interest Tie on that day on its Drain Bond, dated November 1, 1970, No. . This coupon is subject to the redemption provisions of said bond. (FACSIMI Chairma REGISTRY E) In Whose Name Registered Signature of Offi- cial of Principal Date of Registration Paying Agent 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 Murphy and seconded by Patnales BE IT RESOLVED, that sealed proposals for the purchase of $1,165,000 Drain Bonds to be issued by the Varner Relief Drains Drainage District, to be dated November 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 Pontiac Press, a newspaper of general circu- lation in the said Drainage District, which notice shall be sub- stantially in the following form: OFFICIAL NOTICE OF SALE, $1,165,000 j VARNER RELIEF DRAINS DRAINAGE DISTRICT COUNTY OF OAKLAND, STATE OF MICHIGAN DRAIN BONDS Sealed bids for the purchase of Drain Bonds to be issued by the Varner Relief Drains Drainage District in Oakland County, Michigan, of the par value of $1,165,000 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 publicly opened and read. Said bonds will be dated November 1, 1970, will be coupon bonds (registrable as to principal only), all in the denomination of $5,000 each, will be numbered 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 May 1, 1971, and thereafter semi-annually on 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: 1972 - $20,000 1973 - 20,000 1974 - 20,000 1975 - 25,000 1976 - 25,000 1977 - 25,000 1978 - 30,000 1979 - 30,000 1980 - 30,000 1981 - 35,000 1982 - $35,000 1983 - 40,000 1984 - 40,000 1985 - 45,000 1986 - 45,000 1987 - 50,000 1988 - 50,000 1989 - 50,000 1990 - 50,000 1991 - 50,000 1992 - $50,000 1993 - 50,000 1994 - 50,000 1995 - 50,000 1996 - 50,000 1997 - 50,000 1998 - 50,000 1999 - 50,000 2000 - 50,000 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, 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: -19- 3% if called to be redeemed on or after May 1, 1978, but prior to May 1, 1982 2% if called to be redeemed on or after May 1, 1982, but prior to May 1, 1987 1% if called to be redeemed on or after May 1, 1987, but prior to maturity. 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 orjf the bonds be regis- tered, then notice shall be sent by registered or certified mail to the registered holders, at least 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. 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 purchaser 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 Varner Relief Drains, made to defray the cost of constructing the said relief drains. The assessments are against the Township of Avon and the County of Oakland. The assessment against each of said public corporations is a general obligation of said public corporation. The statute under which the bends are to be issued provides that the full faith and credit of the said Drainage Dis- trict 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 bonds 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 maturities 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 $23,300, drawn upon an incorporated bank or trust !company and payable to the order of the Treasurer of the Drainage Board for the Varner Relief Drains must accompany each bid as a guarantee of good faith on the part of the bidder, to be forfeited as liquidated damages -20- 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 45 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. Payment shall be made in Federal Reserve Funds. The right is reserved to reject any or all bids. Envelopes containing the bids should be plainly marked "Proposal for Varner Relief Drains Bonds" DANIEL W. BARRY Chairman of the Drainage Board for Varner Relief Drains 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 the County of Oakland, 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 satd 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 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 business, upon motion by and seconded by Murphy carried, the meeting was adjourned. Patnales and unanimously STATE OF MICHIGAN ) )SS: 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 Varner Relief Drains, Oakland County, Michigan, at the meeting above indicated, the original of which is on file in my office.