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.