HomeMy WebLinkAboutResolutions - 1990.06.28 - 16854June 28, 1990 Miscellaneous Resolution # 90147
BY: PLANNING & BUILDING COMMITTEE,
LARRY CRAKE, CHAIRPERSON
IN RE: DRAIN COMMISSIONER--
RESOLUTION TO APPROVE SECOND AMENDMENT
TO HURON-ROUGE SEWAGE DISPOSAL SYSTEM
WALLED LAKE - NOVI WASTEWATER TREATMENT
PLANT 1989 ENLARGEMENT CONTRACT AND
TO AUTHORIZE THE ISSUANCE OF BONDS
TO: THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS, the County of Oakland (the "County") and
the Cities of Walled Lake and Novi (the "Cities") have
entered into the Huron-Rouge Sewage Disposal Systems Walled
Lake-Novi Wastewater Treatment Plant 1989 Enlargement
Contract, dated as of March 1, 1989 (the "Contract") and the
First Amendment to Huron-Rouge Sewage Disposal System Walled
Lake-Novi Wastewater Treatment Plant 1989 Enlargement Con-
tract, dated as of March 1, 1990, pursuant to the provisions
of Act No. 342, Public Acts of Michigan, 1939, as amended
("Act 342"); and
WHEREAS, it is necessary to approve a revised esti-
mate of the cost of the project and to approve a second
amendment to the Contract; and
WHEREAS, the Contract as amended provides for the
issuance of bonds by the County to defray part of the cost
of acquiring and constructing the Huron-Rouge Sewage
Disposal System Walled Lake-Novi Wastewater Treatment Plant
1989 Enlargement Project, said bonds to be secured by the
contractual obligation of the City of Walled Lake to pay to
the County amounts sufficient to pay the principal of and
interest on the bonds and the pay such paying agent fees and
other expenses as may be incurred on amount of the bonds;
and
WHEREAS, it is in the best interest of the County
of Oakland that the bonds be issued and the project be
acquired and constructed.
THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMIS-
SIONERS OF OAKLAND COUNTY, MICHIGAN, as follows:
1. APPROVAL OF REVISED COST ESTIMATE. The re-
vised cost estimate submitted by the County Drain Commis-
sioner for the Huron-Rouge Sewage Disposal System Walled
Lake - Novi Wastewater Treatment Plant 1989 Enlargement
Project in the amount of $8,428,690 is approved.
2. APPROVAL OF SECOND AMENDMENT TO CONTRACT. The
Second Amendment to Huron-Rouge Sewage Disposal System
Walled Lake - Novi Wastewater Treatment Plant 1989 Enlarge-
ment Contract, dated as of June 1, 1990, among the County,
by and through the County Drain Commissioner, party of the
first part, and the Cities of Walled Lake and Novi, parties
of the second part, which Second Amendment has been submit-
ted to this Board of Commissioners, is approved and adopted,
and the County Drain Commissioner is authorized and directed
to execute and deliver the same for and on behalf of the
County, in as many counterparts as may be deemed advisable,
after the Second Amendment has been executed by the
appropriate officials of the Cities. The Second Amendment
reads as follows:
SECOND AMENDMENT TO
HURON-ROUGE SEWAGE DISPOSAL SYSTEM
WALLED LAKE-NOVI WASTEWATER TREATMENT PLANT
1989 ENLARGEMENT CONTRACT
THIS CONTRACT, made and entered into as of the
first day of June, 1990 by and among the COUNTY OF OAKLAND,
a county corporation in the State of Michigan (hereinafter
sometimes referred to as the "County"), by and through its
Drain Commissioner, County Agency, party of the first part,
and the CITY OF WALLED LAKE and the CITY OF NOVI, home rule
cities located in the County (hereinafter sometimes referred
to as the "Cities"), parties of the second part.
WITNESSET H:
WHEREAS, the County and the Cities heretofore have
entered into the Huron Rouge Sewage Disposal System Walled
Lake - Novi Wastewater Treatment Plant 1989 Enlargement
Contract (the 11 1989 Enlargement Contract") and the First
Amendment to Huron-Rouge Sewage Disposal System Walled Lake
- Novi Wastewater Treatment Plant 1989 Enlargement Contract
(the "First Amendment") pursuant to the provisions of Act
No. 342, Public Acts of Michigan, 1939, as amended; and
WHEREAS, it now is necessary to amend further the
1989 Enlargement Contract.
THEREFORE, in consideration of the premises and the
covenants of each other, the parties hereto agree that
Section 6 of the 1989 Enlargement Contract as amended by the
First Amendment is amended to read as follows:
6. The Cities shall pay to the County the total
cost of the Project (less such funds as may become available
from other sources), which total cost for this purpose shall
include, in addition to the items of the nature set forth in
Exhibit p (Second Revised) (represented by the principal
amount of the bonds to be issued by the County and the cash
payment to be made by the City of Novi of its share of the
cost), all interest payable by the County on said bonds and
all paying agent fees and other expenses and charges
(including the County Agency's administrative expenses)
which are payable on account of said bonds (such fees,
expenses and charges being herein called "bond service
charges"). The cost of the Project and the obligations of
the Cities are allocated between the Cities as shown on
Exhibit B (Second Revised) which is attached hereto and made
a part hereof. The City of Novi shall pay its share of the
cost to the County prior to the delivery of the County
bonds. Payments shall be made to the County by the City of
Walled Lake in annual installments which shall be due and
payable at least thirty days prior to the day of the month
specified in the County bonds as the annual principal
maturity date thereof. An annual installment shall be paid
in each year if any principal and/or non-capitalized
interest on the bonds falls due during the twelve-month
period beginning on such principal maturity date in said
year, and the amount of each installment so due and payable
shall be at least sufficient to pay all such principal
and/or interest thus falling due and all bond service
charges then due and payable. The County Agency, within
thirty days after delivery of the County bonds to the
purchaser, shall furnish the Treasurer of the City of Walled
Lake with a complete schedule of the principal and interest
maturities thereon, and the County Agency, at least thirty
days before each payment is due to be made by the City of
Walled Lake, also shall advise the City Treasurer of the
amount payable to the County on such date. If the City of
Walled Lake fails to make any payment to the County when
due, the same shall be subject to a penalty of 1% thereof
for each month or fraction thereof that such amount remains
unpaid after due. Failure of the County Agency to furnish
the schedule or give the notice as above required shall not
excuse the City of Walled Lake from the obligation to make
payment when due. Such payments shall be made by the City
of Walled Lake when due whether or not the Project has then
been completed or placed in operation. In the event that
additional County bonds shall be issued under the authority
of this contract to defray a part of the cost of the
Project, the foregoing obligations shall apply to such part
of the cost and to said additional bonds insofar as
appropriate thereto.
If a grant, advance or payment becomes available
from the state or federal government or any other source,
each City hereby agrees to adopt such resolutions or
ordinances as may be required by state or federal laws,
regulations or orders to make the County and the Project
eligible to accept and receive the grant, advance or pay-
ment, and if the terms of the grant, advance or payment
require a local contribution, each City hereby agrees to
raise and make such local contribution.
THE PARTIES FURTHER AGREE that Exhibit B (Revised)
shall be amended by Exhibit B (Second Revised) which is
attached hereto and by this reference is made a part hereof.
This Second Amendment to Huron-Rouge Sewage
Disposal System Walled Lake - Novi Wastewater Treatment
Plant 1989 Enlargement Contract shall become effective upon
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its execution by each party hereto and the expiration of 45
days after the date or dates of publication of the notices
required by Section 5b of Act 342; provided, however, that
if, within the 45-day period, a proper petition is filed
with the City Clerk of a City in accordance with the provi-
sions of said Section 5b of Act 342 then this contract shall
not become effective until approved by the vote of a major-
ity of the electors of the City qualified to vote and voting
thereon at a general or special election. This contract
shall terminate forty (40) years from the date hereof or on
such earlier date as shall be mutually agreed; provided,
however, that it shall not be terminated at any time prior
to the payment in full of the principal of and interest on
the County bonds together with all bond service charges
pertaining to said bonds. This contract may be executed in
several counterparts. The provisions of this contract shall
inure to the benefit of and be binding upon the successors
and assigns of the parties hereto.
IN WITNESS WHEREOF, the parties hereto have caused
this contract to be executed and delivered by the under-
signed, being duly authorized by the respective governing
bodies of such parties, all as of the day and year first
above written.
COUNTY OF OAKLAND
BY:
County Drain Commissioner
(County Agency)
CITY OF WALLED LAKE CITY OF NOVI
By: By:
Mayor Mayor
By: By:
Clerk Clerk
JAE/09007/0206/BR2/3
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HURON-ROUGE SEWAGE DISPOSAL SYSTEM
WALLED LAKE-NOVI WASTEWATER TREATMENT PLANT
1.989 ENLARGEMENT
ESTIMATE OF COST
CONTRACTED SERVICES - CONSTRUCTION - Based on Bid Prices
TOTAL CONSTRUCTION COST $6,998,000.00
CONTRACTED SERVICES - PROJECT DEVELOPMENT & MANAGEMENT
Engineering Services:
Report $ 10,000.00
Pilot Plant Studies & Chemical Tests 25,000.00
Design 381,000.00
General Engineering 128,000.00
Resident Engineering 186,000.00
Start-up Training, 0 & M Manual 40,000.00
Performance Monitoring 20,000.00
Compaction Testing 25,000.00
Soil Borings 8,000.00
Legal Services 5.000.00
SUB-TOTAL $ 828,000.00
COUNTY SERVICES - PROJECT MANAGEMENT
Engineering $ 45,000.00
Administration 5,000.00
Right-of-Way (Including Legal) 10,000.00
Contingency 440.700.00
SUB-TOTAL $ 500,700.00
SUB-TOTAL - ESTIMATED PROJECT COST $8,326,700.00
TOTAL ESTIMATED PROJECT COST:
- CITY OF NOVI
(70% of SUB-TOTAL)
- CITY OF WALLED LAKE
(30% of SUB-TOTAL)
$5,828,690.00
$2,498,010.00
EXHIBIT - B (Second Revised) Page 1 of 2
Bond Counsel
Financial Advisor
Official Statement
Bond Rating Fees
Bond Printing
Bond Advertisement
Bond Discount
$ 20,000.00
12,000.00
6,000.00
9,000.00
1,500.00
1,490.00
52,000.00
By:
EDRON-ROUGE SEWAGE DISPOSAL SYSTEM
WALLED LAKE-NOVI WASTEWATER TREATMENT PLANT
1989 ENLARGEMENT
ESTIMATE OF COST
CITY OF WALLED LAKE (30% of SUB -TOTAL)
CONTRACTED SERVICES - PROJECT FINANCING
$2,498,010.00
SUB-TOTAL $_ 101,990.00
TOTAL ESTIMATED PROJECT COST
- CITY OF WALLED LAKE (Bond Issue)
TOTAL ESTIMATED PROJECT COST
$2,600,000.00
$8,428,690.00
I hereby estimate the period of usefulness of this facility
to be twenty-five (25) years and upwards.
McNAMEE, PORTER AND SEELEY, INC.
EXHIBIT - B (Second Revised) Page 2 of 2 May 10, 1990
3. AUTHORIZATION OF BONDS -- PURPOSE. Bonds of
the County aggregating the principal sum of Two Million Six
Hundred Thousand Dollars ($2,600,000) shall be issued and
sold pursuant to the provisions of Act 342, and other
applicable statutory provisions, for the purpose of defray-
ing part of the cost of acquiring and constructing Huron-
Rouge Sewage Disposal System Walled Lake - Novi Wastewater
Treatment Plant 1989 Enlargement Project.
4. BOND DETAILS. The bonds shall be designated
Huron-Rouge Sewage Disposal System Walled Lake - Novi
Wastewater Treatment Plant Enlargement Bonds; shall be dated
July 1, 1990; shall be numbered from 1 upwards; shall be
fully registered; shall be in the denomination of $5,000
each or any integral multiple thereof not exceeding the
aggregate principal amount for each maturity at the option
of the purchaser thereof; shall bear interest at a rate or
rates not exceeding 12% per annum to be determined upon the
sale thereof payable on May 1, 1991, and semiannually there-
after on the first days of May and November in each year;
and shall mature on May 1 in each year as follows:
1992 $ 50,000
1993 50,000
1994 50,000
1995 100,000
1996 100,000
1997 100,000
1998 150,000
1999 150,000
2000 $200,000
2001 200,000
2002 200,000
2003 300,000
2004 300,000
2005 300,000
2006 350,000
5, PAYMENT OF PRINCIPAL AND INTEREST. The prin-
cipal of and interest on the bonds shall be payable in
lawful money of the United States. Principal shall be pay-
able upon presentation and surrender of the bonds to the
bond registrar and paying agent as they severally mature.
Interest shall be paid to the registered owner of each bond
as shown'on the registration books at the close of business
on the 15th day of the calendar month preceding the month in
which the interest payment is due. Interest shall be paid
when due by check or draft drawn upon and mailed by the bond
registrar and paying agent to the registered owner at the
registered address.
6. PRIOR REDEMPTION. Bonds maturing prior to
May 1, 2000 shall not be subject to redemption prior to
maturity. Bonds maturing on and after May 1, 2000 shall be
subject to redemption prior to maturity upon the terms and
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conditions set forth in the form of bond contained in
Section 10 hereof.
7. BOND REGISTRAR AND PAYING AGENT, The County
Treasurer shall designate, and may enter into an agreement
with, a bond registrar and paying agent for the bonds which
shall be a bank or trust company located in the State of
Michigan which is qualified to act in such capacity under
the laws of the United States of America or the State of
Michigan. The County Treasurer may from time to time as
required designate a similarly qualified successor bond
registrar and paying agent.
8. EXECUTION, AUTHENTICATION AND DELIVERY OF
BONDS. The bonds shall be executed in the name of the coun-
ty by the facsimile signatures of the Chairman of the Board
of Commissioners and the County Clerk and authenticated by
the manual signature of an authorized representative of the
bond registrar and paying agent, and the seal of the County
(or a facsimile thereof) shall be impressed or imprinted on
the bonds. After the bonds have been executed and authenti-
cated for delivery to the original purchaser thereof, they
shall be delivered by the County Treasurer to the purchaser
upon receipt of the purchase price. Additional bonds
bearing the facsimile signatures of the Chairman of the
Board of Commissioners and the County Clerk and upon which
the seal of the County (or a facsimile thereof) is impressed
or imprinted may be delivered to the bond registrar and
paying agent for authentication and delivery in connection
with the exchange or transfer of bonds. The bond registrar
and paying agent shall indicate on each bond the date of its
authentication.
9. EXCHANGE AND TRANSFER OF BONDS. Any bond,
upon surrender thereof to the bond registrar and paying
agent with a written instrument of transfer satisfactory to
the bond registrar and paying agent duly executed by the
registered owner or his duly authorized attorney, at the
option of the registered owner thereof, may be exchanged for
bonds of any other authorized denominations of the same
aggregate principal amount and maturity date and bearing the
same rate of interest as the surrendered bond.
Each bond shall be transferable only upon the books
of the County, which shall be kept for that purpose by the
bond registrar and paying agent, upon surrender of such bond
together with a written instrument of transfer satisfactory
to the bond registrar and paying agent duly executed by the
registered owner or his duly authorized attorney.
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Upon the exchange or transfer of any bond, the bond
registrar and paying agent on behalf of the county shall
cancel the surrendered bond and shall authenticate and
deliver to the transferee a new bond or bonds of any author-
ized denomination of the same aggregate principal amount and
maturity date and bearing the same rate of interest as the
surrendered bond. If, at the time the bond registrar and
paying agent authenticates and delivers a new bond pursuant
to this section, payment of interest on the bonds is in
default, the bond registrar and paying agent shall endorse
upon the new bond the following: "Payment of interest on
this bond is in default. The last date to which interest
has been paid is ."
The County and the bond registrar and paying agent
may deem and treat the person in whose name any bond shall
be registered upon the books of the County as the absolute
owner of such bond, whether such bond shall be overdue or .
not, for the purpose of receiving payment of the principal
of and interest on such bond and for all other purposes, and
all payments made to any such registered owner, or upon his
order, in accordance with the provisions of Section 5 of
this resolution shall be valid and effectual to satisfy and
discharge the liability upon such bond to the extent of the
sum or sums so paid, and neither the County nor the bond
registrar and paying agent shall be affected by any notice
to the contrary. The County agrees to indemnify and save
the bond registrar and paying agent harmless from and
against any and all loss, cost, charge, expense, judgment or
liability incurred by it, acting in good faith and without
negligence hereunder, in so treating such registered owner.
For every exchange or transfer of bonds, the County
or the bond registrar and paying agent may make a charge
sufficient to reimburse it for any tax, fee or other govern-
mental charge required to be paid with respect to such
exchange or transfer, which sum or sums shall be paid by the
person requesting such exchange or transfer as a condition
precedent to the exercise of the privilege of making such
exchange or transfer.
The bond registrar and paying agent shall not be
required to transfer or exchange bonds or portions of bonds
which have been selected for redemption.
10. FORM OF BONDS. The bonds shall be in substan-
tially the following form:
UNITED STATES OF AMERICA
STATE OF MICHIGAN
COUNTY OF OAKLAND
HURON-ROUGE SEWAGE DISPOSAL SYSTEM
WALLED LAKE - NOVI WASTEWATER
TREATMENT PLANT ENLARGEMENT BOND
INTEREST RATE MATURITY DATE DATE OF ORIGINAL ISSUE CUSIP
July 1, 1990
Registered Owner
Principal Amount
The County of Oakland, State of Michigan, (the
"County"), acknowledges itself indebted to, and for value
received, hereby promises to pay to the Registered Owner
identified above, or registered assigns, the Principal
Amount set forth above on the Maturity Date specified above,
unless redeemed prior thereto as hereinafter provided, upon
presentation and surrender of this bond at
in the City of
, Michigan, the bond registrar and paying
agent, and to pay to the Registered Owner, as shown on the
registration books at the close of business on the 15th day
of the calendar month preceding the month in which an inter-
est payment is due, by check or draft drawn upon and mailed
by the bond registrar and paying agent by first class mail
postage prepaid to the Registered Owner at the registered
address, interest on such Principal Amount from the Date of
Original Issue or such later date through which interest
shall have been paid until the County's obligation with
respect to the payment of such Principal Amount is dis-
charged at the rate per annum specified above. Interest is
payable on the first days of May and November in each year,
commencing on May 1, 1991. Principal and interest are
payable in lawful money of the United States of America.
This bond is one of a series of bonds aggregating
the principal sum of Two Million Six Hundred Thousand
Dollars ($2,600,000) issued by the County under and pursuant
to and in full conformity with the Constitution and Statutes
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of Michigan (especially Act No. 342, Public Acts of 1939, as
amended) and a bond authorizing resolution adopted by the
Board of Commissioners of the County (the "Resolution") for
the purpose of defraying part of the cost of acquiring and
constructing improvements and enlargements to the Huron-
Rouge Sewage Disposal System Walled Lake - Novi Wastewater
Treatment Plant. The bonds of this series are issued in
anticipation of payments to be made by the City of Walled
Lake in the aggregate principal amount of Two Million Six
Hundred Thousand Dollars ($2,600,000) pursuant to a contract
among the County, the City of Walled Lake, and the City of
Novi dated as of March 1, 1989, as amended by amendments
dated March 1, 1990 and June 1, 1990. The full faith and
credit of the City of Walled Lake have been pledged to the
prompt payment of the foregoing amount and the interest
thereon as the same become due. As additional security the
full faith and credit of the County have been pledged for
the prompt payment of the principal of and interest on the
bonds of this series. Taxes levied by the City and the
County to pay the principal of and interest on the bonds of
this series are subject to constitutional tax limitations.
This bond is transferable, as provided in the
Resolution, only upon the books of the County kept for that
purpose by the bond registrar and paying agent, upon the
surrender of this bond together with a written instrument of
transfer satisfactory to the bond registrar and paying agent
duly executed by the registered owner or his attorney duly
authorized in writing. Upon the exchange or transfer of
this bond a new bond or bonds of any authorized denomina-
tion, in the same aggregate principal amount and of the same
interest rate and maturity, shall be authenticated and
delivered to the transferee in exchange therefor as provided
in the Resolution, and upon payment of the charges, if any,
therein provided. Bonds so authenticated and delivered
shall be in the denomination of $5,000 or any integral mul-
tiple thereof not exceeding the aggregate principal amount
for each maturity.
The bond registrar and paying agent shall not be
required to transfer or exchange bonds or portions of bonds
which have been selected for redemption.
Bonds maturing prior to May 1, 2000, are not sub-
ject to redemption prior to maturity. Bonds maturing on and
after May 1, 2000, are subject to redemption prior to matur-
ity at the option of the County, in such order as shall be
determined by the County, on any one or more interest
payment dates on and after May 1, 1999. Bonds of a denomi-
nation greater than $5,000 may be partially redeemed in the
amount of $5,000 or any integral multiple thereof. If less
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than all of the bonds maturing in any year are to be
redeemed, the bonds or portions of bonds to be redeemed
shall be selected by lot. The redemption price shall be the
par value of the bond or portion of the bond called to be
redeemed plus interest to the date fixed for redemption and
a premium as follows:
1% of the par value if called for redemption
on or after May 1, 1999, but prior to
May 1, 2003;
1/2% of the par value if called for redemption
on or after May 1, 2003, but prior to
May 1, 2005;
No premium if called for redemption on or
after May 1, 2005.
Not less than thirty days' notice of redemption
shall be given to the holders of bonds called to be redeemed
by mail to the registered holder at the registered address.
Bonds or portions of bonds called for redemption shall not
bear interest after the date fixed for redemption, provided
funds are on hand with the bond registrar and paying agent
to redeem the same.
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 law,
and that the total indebtedness of said County, including
the series of bonds of which this bond is one, does not
exceed any constitutional or statutory limitation.
IN WITNESS WHEREOF, the County of Oakland,
Michigan, by its Board of Commissioners, has caused this
bond to be executed in its name by facsimile signatures of
the Chairman of the Board of Commissioners and the County
Clerk and its corporate seal (or a facsimile thereof) to be
impressed or imprinted hereon. This bond shall not be valid
unless the Certificate of Authentication has been manually
executed by an authorized representative of the bond regis-
trar and paying agent.
COUNTY OF OAKLAND
(SEAL)
By: By:
County Clerk Chairman
Board of Commissioners
CERTIFICATE OF AUTHENTICATION
This bond is one of the bonds described in the
within-mentioned Resolution.
Bond Registrar and Paying Agent
By:
Authorized Representative
AUTHENTICATION DATE:
ASSIGNMENT
For value received, the undersigned hereby sells, assigns
and transfers unto
(please print or type name, address and taxpayer identifica-
tion number of transferee) the within bond and all rights
thereunder and does hereby irrevocably constitute and
appoint
attorney to transfer the within bond on the books kept for
registration thereof, with full power of substitution in the
premises.
Dated:
Signature Guaranteed
The signature must be guaranteed by a commercial bank, a
trust company or a brokerage firm which is a member of a
major stock exchange.
11. SECURITY. The bonds shall be issued in anti-
cipation of payments to be made by the City of Walled Lake
pursuant to the Contract, as amended. The bonds shall be
secured primarily by the full faith and credit pledge made
by the City of Walled Lake in the Contract as amended pursu-
ant to the authorization contained in Act 342. As addition-
al and secondary security the full faith and credit of the
County are pledged for the prompt payment of the principal
of and interest on the bonds as the same shall become due.
If the City of Walled Lake shall fail to make payments to
the County which are sufficient to pay the principal of and
interest on the bonds as the same shall become due, an
amount sufficient to pay the deficiency shall be advanced
from the general fund of the County.
12. PRINCIPAL AND INTEREST FUND. There shall be
established for the bonds a Principal and Interest Fund
which shall be kept in a separate bank account. From the
proceeds of the sale of the bonds there shall be set aside
in the Principal and Interest Fund any premium and accrued
interest received from the purchaser of the bonds at the
time of delivery of the same. All payments received from
the City of Walled Lake pursuant to the Contract as amended
are pledged for payment of the principal of and interest on
the bonds and expenses incidental thereto and as received
shall be placed in the Principal and Interest Fund.
13. CONSTRUCTION FUND. The remainder of the pro-
ceeds of the sale of the bonds shall be set aside in a
construction fund and used to acquire and construct the
Walled Lake-Novi Wastewater Treatment Plant 1989 Enlargement
Project in accordance with the provisions of the Contract.
All moneys received from the City of Novi for the cost of
the project also shall be placed in the construction fund.
14. APPROVAL OF MICHIGAN DEPARTMENT OF TREASURY --
EXCEPTION FROM PRIOR APPROVAL. The issuance and sale of the
bonds shall be subject to permission being granted therefor
by the Department of Treasury of the State of Michigan or an
exception from prior approval being granted by the
Department of Treasury and the County Drain Commissioner and
the County Treasurer are each hereby severally authorized to
file with the Department of Treasury a Notice of Intent to
Issue an Obligation with respect to the bonds and to pay,
upon the filing of said notice, the filing fee of $400. If
an exception from prior approval is not granted the County
Drain Commissioner or the County Treasurer shall make
application to the Department of Treasury for permission to
issue and sell the bonds as provided by the terms of this
resolution and for approval of the form of Notice of Sale.
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15. REDUCTION OF PRINCIPAL AMOUNT OF BOND ISSUE.
If the County Drain Commissioner shall determine that it is
not necessary to sell bonds in the principal amount of Two
Million Six Hundred Thousand Dollars ($2,600,000), he may by
order reduce the principal amount of bonds to be sold to
that amount deemed necessary. In the event the principal
amount of the bond issue is reduced pursuant to this sec-
tion, the County Drain Commissioner shall reduce the amount
of bonds maturing in any one or more years as necessary.
16. SALE, ISSUANCE, DELIVERY, TRANSFER AND EX-
CHANGE OF BONDS. The County Drain Commissioner is
authorized to prescribe the form of notice of sale for the
bonds, to sell the bonds at not less than 98% of par plus
accrued interest in accordance with the laws of this state
and to do all things necessary to effectuate the sale, issu-
ance, delivery, transfer and exchange of the bonds in
accordance with the provisions of this resolution.
The County Drain Commissioner is authorized to
cause the preparation of an official statement for the bonds
for purposes of compliance with Rule 15c2-12 issued under
the Securities Exchange Act of 1934, as amended (the "Rule")
and to do all other things necessary to comply with the
Rule. After the award of the bonds, the County will provide
copies of a "final official statement" (as defined in
paragraph (e)(3) of the Rule) on a timely basis and in
reasonable quantity as requested by the successful bidder or
bidders to enable such bidder or bidders to comply with
paragraph (b)(4) of the Rule and the rules of the Municipal
Securities Rulemaking Board.
17. TAX COVENANT. The County covenants to comply
with all requirements of the Internal Revenue Code of 1986,
as amended, necessary to assure that the interest on the
bonds will be and will remain excludable from gross income
for federal income tax purposes. The County Drain Commis-
sioner and other appropriate County officials are authorized
to do all things necessary (including the making of cove-
nants of the County) to assure that the interest on the
bonds will be and will remain excludable from gross income
for federal income tax purposes.
18. CONFLICTING RESOLUTIONS. All resolutions and
parts of resolutions insofar as they may be in conflict
herewith are rescinded.
NING(AND BUILDING COMMITTEE
Mr. Chairperson, on behalf of the Planning and
Building Committee, I move the adoption of _:51,1e foregoing
resolution.
JAE/09007/0206/BT5/3
-13-
LV4/JN9024FN
June 28, 1990
FISCAL NOTE (Misc. 90147)
BY: FINANCE COMMITTEE, DR. G. WILLIAM CADDELL, CHAIRPERSON
IN RE: DRAIN COMMISSIONER-RESOLUTION TO APPROVE SECOND AMENDMENT TO
HURON-ROUGH SEWAGE DISPOSAL SYSTEM WALLED LAKE-NOVI WASTEWATER
TREATMENT PLANT 1989 ENLARGEMENT CONTRACT AND TO AUTHORIZE THE
ISSUANCE OF BONDS, ,
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
Pursuant to Rule XI-G of this Board, the Finance Committee has
reviewed Miscellaneous Resolution # and finds:
1) The resolution authorizes the issuance of tax-exempt Act 342
bonds with the County pledging its full-faith and credit as
the secondary obligator.
2) The primary obligator is the City of Walled Lake, pledging
its full-faith and credit.
3) The obligations of the County and the City are limited tax
obligations.
4) The principal amount of the bond issue is $2,600,000 at an
interest rate not to exceed 12%.
5) The statutory limit for County debt is $2,339,540,375 (10%
of 1989 State Equalized Value). As of May 31, 1990, the
outstanding debt is $345,614,756 or approximately 1.5% of
the S.E.V.
6) No budget amendments are necessary.
FINANCE COMMITTEE
Lynp'j). Allen, County Clerk
Resolution # 90147 June 28, 1990
Moved by Crake supported by Caddell the resolution be adopted.
AYES: Moffitt, Oaks, Pappageorge, Pernick, Price, Rewold, Skarritt,
Wolf, Aaron, Bishop, Caddell, Calandro, Chester, Crake, Gosling, Huntoon,
Johnson, R. Kuhn, Law, Luxon, McConnell, McPherson. (22)
HAYS: Jensen. (1)
A sufficient majority having voted therefor, the resolution was
adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND
I, Lynn D. Allen, Clerk of the County of Oakland, do hereby certify that the foregoing
resolution is a true and accurate copy of a resolution adopted by the Oakland County
Board of Commissioners on June 28, 1990
with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of.the county
of Oakland at Pontiac, Michigan this 28th day of 19 90