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HomeMy WebLinkAboutResolutions - 1970.01.22 - 16437ABSENT: Walker. (1) Misc. 5265 IN RE: HA' )wing resolution was offered by Mr. Horton The , the said Halfpenny ard by reso- At auti g of thc f:oJrd of Supervisors of the County of Oaklanu,;State of Mic higan, held in the County Building in the City of Pontiac, nichian, on the 22nd day of January, 1970, at 9:30 o'clock A.M., Eastern St 7 - PRESENT: Aaro".. Benson, Brennan, :Awards, Gabler, Grba , Horton, Houghten, Kdsper, Mainland, Mastin, Mathews, '•H°1.3n, 0 1 Donoghue, Olson. -des, Perinoff, Pernick, Powell, Richards, Richardson, Szabo, Wilcox. 1 7" and seconded by Mr. Richardson WHEREAS, proceedings have been taken by the Statutory Drainage Board for the location, esta::lnt and construction of the Halfpenny Drain under the provisions of Act No. 40 of the Public Acts of Michi. of 1956, as amended, pursu=t to a petition filed by the City of Troy on May 17, 1968; and lution adopted on December 1, 1969, authorized and pro-i:':-d for the issuance of bonds in the principal of $1,590,000 in ,:.,ticipation of the collection of an equal of special an Ls acjainst the City of Troy and County ah their resective shares of part of the cost of said drain, said special mLs having theretofore duly confirmed by said Drab: - Board; and WHEREAS, said bonds are to be designate ,: TialfEenny Drain Bonds, are to he daLe.:,' April 1, 1970, will beLr at a rate not exceeding 8%, and will bject to redemption prior to maturity in accordance with the provisions of the bond resolution; and WHEFA2, 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 u thereof from county funds in the following cases: "(1) If any bonds or other evidence of indebted- ness have been issu to finance a project, the peti- tion for which was filed after June 6, 1961 in anti- cipation of the colL -ction of the installment and in- terest pursuant to tho :-•rovisions of this chapter and the board of supervi•.,rs has previously aced, by a resolution adopted by a 2/3 vote of its elect, to pledge the full faith and credit of the county for the prompt payment of the principal of ar ea interest on the bonds or evidence ofineLtedness, or "(2) If any bo,f:Is or etuor evidence of indebt- ednos have :....on issd to finance a project, the petit:ion for -::hich filed prior to June 6, 1961 in alcipaticn of thc collection of -Ce installment and interest, pursuan. to the provisions of thi s chapter." WHEREAS, said Drainage Board ,•.:, it advisable and necessary to obtain from this Board a resolution consenting t the pledge of the full faith and credit of the county on the aforesaid bonds; and WH-77 77.F., the said drainage project is rately necessary to protect and preserve the public health and therefore it is in the best interest of the County of Oakland that said bonds no sold. BE' ::„...ZOVED BY THE HOARD OF SUPERVISORS (..)2 TNr COuin,CY OF OAKLAND, MICHIGAN: 1. That pursuant to lorization provided in Section 474 of Chapter amended, the Board does hereby irrevc of the Drain Code of 1956, as isors of the County of Oakland the full faith and credit of the County of Oakland, and does agree that in the event the City of Troy or the County of Oall! -;hall fail or neglect to account to the County Treasurer of the County of Oakland for the amount of any instalimen interest for the Half- penny Drain, when due, then the amount thereof shall be imme- diately advanced from County Funds, and the County Treasurer is directed to immediately make such advaL -J: ant to the extent necessary. 2. That in the event that, pursuant to said Flc.:7.jo 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 proceedi*gs and pursue all remedies Lermitted or authorized by law for tILe reimbursement of such sH ,:• 2:ci paid. 3. That all resolutions and parts of resolutions insofar as the same ma v he in conflict with the provisions of this resolution be and the same herT:1:.. 7re rescinded. ADOPTED: Yeas - Nays - Thomas H. O'Donoghue Frarli< Richcr-dsOn -Harry W. Horton, Chairman ahlon A. Benson, Jr. James M. Brennan C.:.ft,.qpge r Grbat PUBLIC WORKS COMMITTEE Moved by Horton supported by Richardson the resolution be adopted. Discussion followed. Mr. Horton requested that Daniel W. Barry, Drain Commissioner, be allowed to speak to the Board. There were no objections. Mr. Barry spoke to the Board. Discussion followed. Moved by Powell supported by O'Brien the resolution be amended to change the provision with regard to interest only, and that this be amended to read "7% maximum rate". Discussion followed. Vote on amendment: AYES: Bawden, Brennan, Gabler, Grba, Mathews, O'Brien, Olson, Powell. (8) NAYS: Aaron, Benson, Coy, Edwards, Hamlin, Horton, Houghten, Kasper, Mainland, Mastin, O'Donoghue, Patnales, Perinoff, Pernick, Richards, Richardson, Szabo, Wilcox. (18) A sufficient majority not having voted therefor, the amendment lost, Vote on resolution: AYES: Aaron, Bawden, Benson, Coy, Edwards, Gabler, Grba, Hamlin, Horton, Houghten, Kasper, Mainland, Mastin, Mathews, O'Brien, O'Donoghue, Patnales, Perinoff, Pernick, Powell, Richards, Richardson, Szabo, Wilcox. (24) NAYS: Brennan, Olson. (2) A sufficient majority having voted therefor, the resolution was adopted. STATE or i.:ICHIGAN ) )SS: COUNTY OF OAKLAND ) I, the undersiH: County Clerk and Clerk oL County of Oakland, do herc , the duly qualified and acting he Board of Supervisors of the certify that the foregoing is a true and complPte copy of a resolution adopted by a 2/3 vote of its rr ,.:-/-s-elect at the meeting- of the Board of Supervisors of the County of Oal,land held on the 22nd C,T; January, 1970, the original o is on file in my offi County Clerk MINUTES OF THE =TING OF THE DRAINAGE BnARR, FOR THE HALFPENNY DRAIN December 1, 1969 A meeting of the Drainage 'Board for the Halfpenny Drain was held in the office of the Oakland County Drain Commissioner, 550 South Telegraph Road, in the City of Pontiac, Michigan, on the 1st day of Deoe7::er, 1969, at 10:30 o'clock A.M., Eastern Standard Time. The meeting was called to order by the Chairman. PRESENT: James R. Nichols, Deputy Drain Commissioner Charles B. Edwards, Jr., Chairman Oakland County Board of Sutervisors ABSENT: Daniel W. Barry, Chairman Oakland County Drain Commissioner Daniel T. Murphy, Chairman of the Oakland County Board of Auditors ALSO PRESENT: James E. Pemberton; Chief Engineer Julius Pochelon, Financial Consultant John A. Everhardus, Bond Counsel Mr.- Nichols announced that Mr. Barry and Mr. Murphy were unable to attend due to conflicts in their schadules. The minutes of the November 12, 1969 meeting of the Board were read. it was moved by Edwards and seconded by Nichols that the said minutes be approved as read. ADOPTED: Yeas - 2 Nays - 0 The Acting 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 Halfpenny Drain project against the City of Troy, the County of Oakland, and the State of Michigan in accordance with the apportionments as adopted and confirmed by the Drainage Board on October 15, 1969. 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 willprepay its share of the cost in full in cash and that the City of Troy will prepay $284,978.39 of its share of the cost in full in cash. . The following resolution was offered by Mr.. Edwards and seconded by Mr. Nichols: WHEREAS, the Drainage Board for the Halfpenny Drain has fixed and confirmed apportionments of the cost of said drain as set forth in the resolution of the Board adopted October 15, 1969, and in the full order of apportionment of the cost of said drain filed in the office of the Chairman of this Board on October 15, 1969. BE IT RESOLVED BY TUE DRAINAGE BOARD FOR THE HALFPENNY DRAIN, as follows: 1. That the Chairman of said Drainage Board is hereby directed to prepare a special assessment roll assessing sum of $1,900,000 (which is the revised estimated cost of the Halfpenny Drain) against the several public corporations . a in accordance with the said apportionments heretofore confirmed, and to divide the total amount assessed against each such public corporation in 25 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 install- ments shall bear interest at the rate of 6% per annum from such date as shall be hereafter established. 2. That the aggregate of the installments of principal payable on April 1st of each year by all the public 'corporations shall be as follows: 1971 - $44,000 1972 - 44,000 1973 - 44,000 1974 - 44,000 1975 - 44,000 1976 - 44,000 1977 - 60,000 1978 - 60,000 1979 - $60,000 1930 - 60,000 1981 - 60,000 1982 - 60,000 1983 - 60,000 1984 - 89,000 1985 - 89,000 1986 - 89,000 1987 - $ 89,000 1988 - 97,000 1989 - 109,000 1990 - 109,000 1991 - 109,000 1992 - 109,000 1993 - 109,000 1994 - 109,000 1993 - 109,000 - 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 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 - 2 Nays - 0 Mr. Nichols presented the Halfpenny Drain - Special Assessment Roll No. 1, 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 Mr. Edwards and seconded by Mr. Nichols: 1. That Special Assessment Roll No. 1 for the Halfpenny Drain to be constructed pursuant to a petition filed with the Oakland County Drain Commissioneron May 17, 1968, upon which special assessment roll are spread assessments against the City of Troy, the County of Oakland, and the State of Michigan, aggregating the principal sum of $1,900,000 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 total assessment against each public corporations as set . 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 August 1, 1970 until paid, at the rate of 6% per annum payable annually on the due date in each year of each installment: Provided, that if at any time the 7 .sount of the 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 reo.uired to pay, pursuant to the schedule of maturities, upon the bonds to be issued in anti- cipation 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 he accumulated to meet bond maturities in a subse- quent year or years) shall be credited pro rata to the public corporations in accordance with the several amounts of assessment installments and the interest paid by them to such time, 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. That the amount assessed against any public corporation or any portion thereof may be paid on or before April 1, 1970, without interest Any public corporation may pay in advance of maturity all or any part of an annual installment due from it by surrendering to the county, 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, the amount the various installments thereof, 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 such public corporation of the amount of the installment and interest next becoming due. ADOPTED: Yeas - 2 Nays - 0 The following resolution was offered by Mr. and seconded by Mr. Nichols Edwards RESOLVED, that the Drainaue Board for the Halfpenny Drain hereby adopts a seal for the drainage district which shall be circular in form and upon it shall appear the words "Halfpenny Drainage District, Oakland County, Michigan Cor- porate Seal". ADOPTED: Yeas - 2 Nays - 0 The following resolution was offered by Mr. Ed ward s and seconded by Mr. Nichols : WHEREAS, pursuant to a petition filed with the Oakland County Drain Commissioner on May 17, 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 construction of the Halfpenny Drain in the County of Oakland, State of Michigan, at an estimated cost of $1,900,000, which amount has been assessed in accordance with the apportion- ments confirmed by the Drainage Board for said drain on October 15, 1969; and WHEREAS, the Final Order of Aoportionment was filed in the office of the Chairman of the Drainage Board on the 15th day of October, 1969; and WHEREAS, in accordance with said apportionments a special assessment roll designated "Halfpenny Drain - Special Assessment Roll No. 1" was approved by said Drainage Board on this date upon which special assessment roll the said sum of $1,900,000 was assessed; and WHEREAS, the amount assessed on said roll to each public corporation was divided into 25 installments one of which installments will become due and payable on April 1 in each year beginning with the year 1971, with interest upon all unpaid installments from August 1, 1970, at the rate of 6% 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 assessment 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 in accordance with the several amounts of assessment installments and interest paid by them to such time, 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 State of Michigan will pay its assessment in full prior to the issuance of the hereinafter described al City of Troy County of Oakland Installment Due April 1 bOnds and the City of Troy will prepay its assessment extent of $284,978.89 thereby lea assessment against the City of Troy and the assessment only the balance the of the against the County of Oakland; and WHEREAS, the annual installments payable on the assessments against the City of Troy and the County of Oakland are as follows: 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1935 1986 1987 1988 1989 1990 1991 /992 1993 1994 1995 $ 22,873.35 22,373.35 22,873.35 22,873.35 22,873.35 22,873.35 47,100.02 47,100.02 47,100.02 47,100.02 47,100.02 47,100.02 47,100.02 70,698.36 70,698.36 70,698.36 70,598.36 35,311.70 94,731.70 91,731.70 94,731.70 94,731.70 94,731.70 94,731.70 94,731.70 $1,498,167.28 $ 2,126.65 2,126,65 2,126,65 2,126,65 2,126.65 2,126.65 2,899.98 2,899.98 2,899.98 2,899.98 2,399.98 2,899.98 2,899.98 4,301.64 4,301.64 4,301.64 4,301.64 4,638.30 5,268.30 5,268.30 5,268.30 5,268.30 5,268.30 5,268.30 5,268.30 $91,832.72 $ 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 75,000.00 75,000.00 75,000.00 75,000.00 90,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 $1,590,000.00 THEREFORE, BE IT RESOLVED BY THE DRAINAGE BOARD FOR THE HALFPENNY DRAIN, as follows: 1. -That the said drain 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 Halfpenny Drainage District be issued in the aggregate principal sum of $1,590,000 in anticipation of the collection of an equal amount of special assessments assessed on the Halfpenny Drain - Special Assessment Roll No. 1, said bonds to be dated April 1, 1970; to be coupon bonds all in the denomination of $5,000 each; be 'registrable as to principal only in the manner hereinafter set forth in the bond form; to bear interest at a rate or rates to be hereafter determined not in excess of the maximum rate permitted by law at the time the bonds are offered for Sale but in no event to exceed 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: 1971 1972 1973 1974 1975 1976 1977 1978 - $25,000 - 25,000 - 25,000 - 25,000 - 25,000 - 25,000 - 50,000 - 50,000 1979 1980 1981 1982 1983 1984 1985 1986 - $50,000 - 50,000 - 50,000 - 50,000 - 50,000 - 75,000 - 75,000 - 75,000 1937 1988 1989 1990 1991 1992 1993 1994 1995 - $ 75,000 - 90,000 - 100,000 - 100,000 - 100,000 - 100,000 - 100,000 - 100,000 - 100,000 Bonds maturing prior to May 1, 1991, shall not be subject to redemption prior to maturity. May 1, 1991, shall be subject at the option of the drainage Bonds maturing on and after to redemption prior to maturity district in inverse numerical order on any one or more interest payment dates on and after May 1, 1990, at par and accrued interest plus a premium on each bond called to be redeemed computed as a percentage of the face amount thereof in accordance with the following schedule: -9- 3% if called to be redeemed on or after May 1, 1990, but prior to May 1, 1992 2% if called to be redeemed on or after May 1, 1992, but prior to May 1, 1993 1% if called to be redeemed on or after May 1, 1993, 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 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 bonds shall be registered, then notice of the redemption thereof shall be given by registered or certified United States mail addressed to the registerd 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 pay- ment 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 ==.-aed, if two-thirds of the members elect of the Board of Supervisors of the County of Oakland vote favorably on a reso- lution 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 rica, 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 pur- chasers 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 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 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 pro- vided by the terms of thi ?solution. 3. That of the proceeds of the sale of said bonds an amount equivalent to the interest payable on said bonds for 12 months from this date shall be used to pay capitalized inter thereon. • 9. That the advance payments to be made by the State of Michigan and the City of Troy shall he set aside for - the construction of the Halfpenny Drain 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 "Halfpenny Drain Special Assessment Roll No. 1 Fund" and shall be used solely to pay the principal and interest on the bond authorized herein. All excess funds, including proceeds of the sale of bonds, remaining after construction of the Halfpenny Drain is completed, and all charges in connection with the loca- tion, establishment and construction Of said Drain are paid in full, shall be divided among the public corporations assessed • on the basis of apportionments and shall be used by the Drainage Baord to pay principal and interest on the bonds autho- rized herein, when due, or to purchase said bonds and the ob tions of said public corporations shall be reduced accordingly. All bonds so paid or purchased shall be cancelled. The portion of suchexcess attributable to the State of Michigan shall be refunded to it in cash. 10. That said bonds shall be in substantially the following form, to wit: ga- UNITED STATES OF AMERICA STATE OF MICHIGAN COUNTY OF OAKLAND HALFPENNY DRAINAGE DISTRICT DRAIN BOND .Number $5,000 KNOW ALL MEN BY THESE PRESENTS, that the Halfpenny Drainage District, Oakland County, Michigan, hereby acknowledges itself indebted and for value received, promises to pay to the hearer hereof (or if this bona he registered to the registered holder), the sum of FIVE THOUSAND DOLLARS on the first day of May, A.D. 19 , together with interest there- on from the date hereof until Paid, at the rate of ) per centum per annum, payable on November 1, 1970, and thereafter semi-annually on the first days of May and -,eqber 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 uoon 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 n --mred consecutively in the direct order of their maturities from 1 through 318, aggregating the principal sum of One Million Five Hundred Ninety Thousand Dollars ($1,590,000), 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 City of Troy and the County of Oakland on Halfnennv Drain - S=cial Assessment Roll No. 1 (an intra-county drain), which assessments were made to defray the cost of constructing the said drain and which assessments are a general obligation of each of said public corporations. The full faith and credit of said 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 p1e-.7.ce2. there- for. Bonds maturing prior to May 1, 1991, are not subject to redemption prior to maturity. Bonds - maturing on and after May 1, 1991, 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, 1990, at par and accrued interest plus a premium on eaCi bond called to be re computecl, as a percenta7e of the face .-nt thereof in accordance with the following schedule: -13- By. „ Chi: an o ---ge District -1 A 3% if called to be redeemed on or after May 1, 1990, but prior to May 1, 1992 . 2% if called to be redeemed on or after May 1, 1992, but prior to May. 1, 1993 1% if called to be redeemed on or after May 1, 1993, 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, Michio-an, which carries as a part of its regular service, notices of the sale of municipal bonds: Provided, that where any bond shall he 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 thrity (30) days prior to the data 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. Transferability by delivery may be restored by registration to the bearer. Negotiability of the interest coupons shall not be affected by registration. It is hereby certified, recited and declared that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of the bonds of this series, existed, have happened and have been performed in due time, form and manner as required by the Constitution and Statutes of the State of Michigan, and that the total indebtedness . of said Drainage District, including this series of bonds does not exceed any constitutional or statutory limitation, and to the • prompt payment of this :bond and the interest hereon as the same become due, the full faith and credit of said Drainage District - are hereby irrevocably pledged. IN WITNESS WHEREOF, T17] HALFPENNY 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 Drainage Board, and its corporate seal to be affixed hereto ; and has caused the annexed interest coupons to be executed with the =acsimile signature of said Chairman, all as of the 1st day of April, A.D. 1970. EN1Y DRAINAGE DIST AICT By Member of the Drainage Board By Member of the Drainage Board (SEAL) (coup ON) Number On the 1st day of , A.D. 19 , the HALFPENNY 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 due on that day on its Drain Bond, dated. April 1,.1970, No. FACSIMILE) Chairman REGISTRY Signature of Official . In •Whose Name Registered Date of Registration • of Paying Agent • . and seconded by Mr. Nichols . 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 Iliay be necessary, apportioned as in the Irst instance. ADOPTED: Yeas - 2 Nays - 0 The Following resolution was offered by Mr. Edwards BE IT RESOLVED, that sealed proposals for the purchase $1,590,000 Drain Bonds to be issued by the Halfpenny 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 following form: OFFICIAL NOTICE OF SALE $1,590,000 HALFPENNY DRAINAGE DISTRICT COUNTY OF OAKLAND, STATE OF MICHIGAN DRAIN BONDS Sealed bids for the purchase of Drain Bonds to be issued by the Halfpenny Drainage District in Oakland County, Michigan, of the par value of $1,590,000 will be received by the undersigned at his office, 550 South Telegra7Dh 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 April i f 1970, will be coupon bonds (registered as to princi pal 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 % per annum payable on November 1, 1970, 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 seriallyon the 1st day of May in each year as follows: 1971 - $25,000 1972 - 25,000 1973 - 25,000 1974 - 25,000 1975 - 25,000 1976 - 25,000 1977 - 50,000 1978 - 50,000 1979 - $50,000 1980 - 50,000 1981 - 50,000 1982 - 50,000 1983 - 50,000 1984 - 73,000 1985 - 75,000 1936 - 75,000 1987 - $ 75,000 1983 - 90,000 1989 - 100,000 1990 - 100,000 1991 - 100,000 1992 - 100,000 1993 - 100,000 1994 - 100,000 1995 - 100,000, Bonds maturing prior to May 1, 1991 shall not be subject to redemption prior to maturity. 'Bonds maturing on or after Nay 1, 1991 shall be subject to rip,c777-tion prior to maturity at the option of the Drainage District in inverse numerical order on any one or more interest pavment dated 611 and after May 1, 1990, at par and accrued interest plus a --.71:711, on each bond called to be redeemed computed as a percentage of the face amount thereof in accordance with the following schedule: 1990, but 1992, but 1993, but 3% if called to be redeemed on or after May 1, prior to May 1, 1992 2% if called to be redeemed on Or after May 1, Prior to May 1, 1993 if called to be redeemed on or after May 1, prior to maturity. Notice of redemption shall be published not less than thirty (30) c'-.ys prior to the date fixed for redemption, at least once in a .....7 -77er or publication circulated in the City of Detroit Michigan, which carries as a part of its regular service, notices of the sale of municiral bonds or if the bonds be registered, then notice shall be sent by registered or certified United States mail to the registered holders, at least thirty (30) days prior to the date fixed for redemption. ponds 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 he 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 Halfpenny Drain - Special Assess- ment Roll No. 1, made to defray the cost of constructing the said drain. The assessments are against the County of Oakland on account of drainage of Oakland County highways and against the City of Troy. The assessment against each of the above public corporations is a general obligation of said public corporation 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 amount. The statute under which the bonds 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 ofawarding 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 ofthe 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 costto the Drainage District on all of the bonds. A certified or cashier's check in the amount of $31,800, drawn upon an incorporated bank or trust company and payable to the order of the Treasurer of the Drainage Board for the Halfpenny Drain must accompany each bid as a guarantee of good faith on the part of the bidder, to he forfeited as liciuidated damages if such bid be accelDted and the bidder fails to take up and pay for the bonds. No interest shall be allowed on the 07ood 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 success- ful bidder shall be entitled to the return of the deposit accompany- ing 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 Halfpenny Drain Bonds". Chairman of the Drainage Board for the Halfpenny Drain 550 South Telegraph Road Pontiac, Michigan Dated: , 19 . , 19 APPROVED: STATE OF MICHIGAN MUNICIPAL FINANCE commissIoN (To be added if Board of Supervisors approves) By resolution adopted by the affirmative vote of two-thirds of thu members elect of the Board of Supervisors of the County of 077 -1=d, and pursuant to said Chapter 20 of Act No. 40 of the Prl-)lic Acts of 1956, as 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. ADCP2ED: Yeas - 2 Nays - 0 Mr. Nichols presented a form of contract between the Drainage District and Kenower, MacArthur & Co., the financial consultants to the Drainage Board. The following resolution was offered by Edwards and seconded by Nichols: BE IT RESOLVED that the Chairman of this Drainage Board be and he hereby is authorized to execute the said con- tract with Kenower, MacArthur & Co., and that a copy of said contract shall be retained in the files of the Drainage District. ADOPTED: Yeas - 2 Nays - 0 It was moved by Mr. Nichols and seconded by Mr. Edwards that payment in the amount of $35.00 to Charles B. Edwards for attendance at this meeting be approved. ADOPTED: Yeas - 2 Nays - 0 There being no further business, upon motion by Mr. Edwards and seconded by Mr. Nichols and unanimously carried, the meeting was .adjourned. • -20- STATE OF MICHIGAN ) )SS: COUNTY OF OAKLAND ) I, the undersigned, do hereby.certify that the foregoing is a true and complete copy of preccedincjs taken by the Drainage :Board for the Halfpenny Drain, Oakland County, Michigan, at the meeting above indicated, the original of which is on file in my office. % ,,,Dallic 7—W—Itarry, Chairman ACKNOWLEDGMENT OF OTICE STATE OF MICHIGAN ) )SS: COUNTY OF OAKLAND ) The undersigned, Daniel T. Murphy, member of the Drainage Board for the Halfpenny Drain, Oakland County, Michigan, hereby acknowledges that he had due and timely notice of the time, place and purpose of the meeting of said Drainage Board held on December 1, 1969, and that he approved • and ratifies the resolutions adopted by said Drainage Board at said meeting to approve Special Assessment Roll No. 1 and to authorize the issuance of $1,590,000 of Halfpenny Drainage District Drain Bonds and to approve the Notice of Sale for said bonds. Dated: December ig , 1969.