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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