HomeMy WebLinkAboutResolutions - 1970.02.05 - 16408DANIEL W. BARRY
Co-mmissioner
JAMES R. NICHOLS
Chief Doom Commisiioner
OAKLAND COUNTY DRAIN COMMISSIONER
550 SOUTH TELEGRAPH ROAD
pONTIAc, MICHIGAN 48053
FEDERAL 8-4585 .
January 29, 1970
JAMES E. PEMBERTON
Deptoy and Chief Engifwer
HOWARD V. RUMMELL
Find97CC Offcer
Honorable Board of Supervisors
Oakland County, Michigan
Reference: Augusta 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 Augusta Drain authorizing the
issuance of Drain Bonds in the aggregate amount of $14,250,000.00
pursuant to the provisions of Chapter 20 of the Drain Code of 1956,
as amended, and other applicable law. Also submitted to you here-
with is a form of proposed resolution for adoption by the Board of
Supervisors for the purpose of pledging the full faith and credit
of the County of Oakland as secondary security for the prompt pay-
ment of said Drain Bonds.
The said bonds are issued in anticipation of the payment by the City
of Pontiac of drain assessments at large against said public corpora-
tion in the aggregate amount of at least equal to the amount of said
bonds. The full faith and credit of said public corporation is pledged,
by law, to the prompt payment of said assessment and the interest there-
on, when due. The law further authorizes and obligates the said cor-
poration to levy a tax in an amount sufficient to make said payments
(unless other funds are on hand available 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 corporation the amount
advanced from County funds, at anytime in fulfillment of the County's
secondary pledge of its full faith and credit.
By V -
Daniel W. arry„Chairman
OAKLAND COUNTY DRAIN COMMISSIONER
Honorable Board of Supervisors Page 2
Oakland County, Michigan
Re: Augusta Drain
It is respectfully requested that the enclosed resolution be adopted
for the reasons set forth in the preambles 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.
Yours very truly,
AUGUSTA DRAINAGE BOARD
BY fl- I
Daniel'T. Murphy,
Member
By: Robert E. Lilly,
Vice Chairman of the Board of Auditors
./-
"Nbdrt Patnales,
Member
DWB:es
Enclosures
At a meeting of the Board of Supervisors of the
County of Oakland, State of Michigan, held in the County
Building in the City of Pontiac, Michigan, on the 5 th day
of February
Standard Time
, 1970, at 9:30 • o'clock A.M., Eastern
PRESENT: Aaron, Bawden, Benson, Brennan, Coy, Edwards, Gabler, Grba, Hamlin,
Horton, Houghten, Kasper, Mastin, Mathews, O'Brien, O'Donoghue,
Olson, Patnales, Perinoff, Pernick, Powell, Richards, Richardson,
Szabo, Wilcox. (25)
ABSENT: Mainland, Walker. (2) ,
Misc., 5277
IN RE: AUGUSTA DF-ZA iN The following resolution was offered by Mr. Horton
and seconded by Mr. O'Donoghoe
WHEREAS, proceedings have been taken by the Statutory
Drainage Board for the location, establishment and construction
of the Augusta 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
WHEREAS, the said Drainage Board by resolution
adopted on January 27, 1970, authorized and provided for the
issuance of bonds in the aggre g ate ;or:Hein:al amount of $14,250,000
in anticipation of the collection of an ecrual amou,nt of special
assessments against the City of Pent;ac as its share of the cost
of said drain, said special assec,s7s havnc-, been therefore
duly con -Firmed by said Draino= Bo a rd; and
Pontiac on January 9, 1968; and
WHEREAS, said bonds are to he designated the Augusta
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
chapter."
WHEREAS, said Drainage Board deems it advisable and
necessary to obtain from this Board a resolution consenting to
thepledge of the full faith and credit of the county on the
aforesaid bonds; and
WHEREAS, the said drainage project is imm e diately
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.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
SUPERVISORS OF THE COUNTY OF OAKLAND, MICHIGAN:
1, That pursuant to the authorization provided in
Section 474 of Chapter 20 of the Drain Code of 1956, as
amended, the Board of Supervisors of the County of Oakland
does hereby irrevocably pledge the full faith and credit of
the County of Oakland and does agree that in the event the
City of Pontiac shall fail or neglect to account to the County
Treasurer of the County of Oakland for the amount of any
installment and interest for the Augusta 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 resolution be and the sans hereby are rescinded.
PUBLIC WORKS COMMITTEE
Harry W. Horton, Chairman
Moved by Horton supported by O'Donoghue the resolution
be adopted.
Mr. Grba requested that the record show that he voted in favor
of the resolution with reservations and that he has presented a
resolution to make the lakes in the area into parks but they will
be converted into a retention basin in conjunction with the project.
Discussion followed.
Vote on resolution:
AYES: Aaron, Bawden, Benson, Coy, Edwards, Grba, Hamlin,
Horton, Kasper, Mastin, Mathews, O' Donoghue, Patnales, Perinoff,
Pernick, Powell, Richardson, Wilcox. (18)
NAYS: Brennan, O'Brien, Olson. (3)
A sufficient majority having voted therefor, the resolution
was adopted.
, 1970, the original of which is on file of February
STATE OF MICHIGAN)
)SS:
COUNTY OF OAKLAND)
1, the undersigned, the duly qualified and acting
County Clerk and Clerk of the Board of Supervisors of the
County of Oakland, 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
SUpervisors of the County of Oakland held on the - 5th d ay
in my office.
County Clerk