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HomeMy WebLinkAboutResolutions - 1988.09.22 - 17680Miscellaneous Resolution # 88243 September 22, 1988 BY: PLANNING & BUILDING COMMITTEE, Anne M. Hobart, Chairperson IN RE: DRAIN COMMISSIONER -- RESOLUTION TO AUTHORIZE THE ISSUANCE OF OAKLAND COUNTY WATER SUPPLY BONDS (WALLED LAKE SYSTEM EXTENSION NO. 1) TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mr. Chairperson, Ladies and Gentlemen: WHEREAS, this Board of Commissioners, under and pursuant to the provisions of Act 342, Public Acts of Michigan, 1939, as amended (Act 342), has approved the Walled Lake Water Supply System Extension No. 1 Contract dated as of January 1, 1988 (the °Contract") between the County of Oakland (the °County"), by and through the County Drain Commissioner, and the City of Walled Lake (the "City"); and WHEREAS, the Contract provides for the issuance of bonds by the County to defray the cost of acquiring and constructing the Walled Lake Water Supply System Extension No. 1, said bonds to be secured by the contractual obligation of the City to pay to the County amounts sufficient to pay the principal of and interest on the hereinafter authorized bonds and to pay such paying agent fees and other expenses as may be incurred on account of said bonds. THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF OAKLAND COUNTY, MICHIGAN, as follows: 1. AUTHORIZATION OF BONDS - PURPOSE. Subsequent to execution of the Contract by the parties thereto, bonds of the County aggregating the principal sum of Eight Hundred Fifteen Thousand Dollars ($815,000) shall be issued and sold pursuant to the provisions of Act 342, and other appli- cable statutory provisions, for the purpose of defraying the cost of acquiring and constructing the Walled Lake Water Supply System Extension No 1. 2, BOND DETAILS. The bonds shall be designated "Oakland County Water Supply Bonds (Walled Lake System Ex- tension No. 1)" shall be dated October 1, 1988; 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 April 1, 1989 and semiannually thereafter on the first days of April and October in each year; and shall mature on October 1 in each year as follows: 1989 $25,000 1990 $25,000 1991 $25,000 1992 $30,000 1993 $30,000 1994 $30,000 1995 $50,000 1996 $50,000 1997 $ 50,000 1998 $ 75,000 1999 $ 75,000 2000 $ 75,000 2001 $ 75,000 2002 $100,000 2003 $100,000 3. PAYMENT OF PRINCIPAL AND INTEREST. The prin- cipal of and interest on the bonds shall be payable in law- ful money of the United States. Principal shall be payable upon presentation and surrender of the bonds to the bond registrar and paying agent as they severally mature. Inter- est shall be paid to the registered owner of each bond as -2- 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. 4. PRIOR REDEMPTION. Bonds maturing prior to October 1, 1998 shall not be subject to redemption prior to maturity. Bonds maturing on and after October 1, 1998, shall be subject to redemption prior to maturity upon the terms and conditions set forth in the form of bond contained in Section 8 hereof. 5. BOND REGISTRAR AND PAYING AGENT. The County Drain Commissioner 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 Drain Commissioner may from time to time as required designate a similarly qualified successor bond registrar and paying agent. 6. EXECUTION, AUTHENTICATION AND DELIVERY OF BONDS. The bonds shall be executed in the name of the County by the facsimile signatures of the Chairman of the Board of Commissioners and the County Clerk and authenti- cated by the manual signature of an authorized representa- tive of the bond registrar and paying agent, and the seal of the County (or a facsimile thereof) shall be impressed or -3- imprinted on the bonds. After the bonds have been executed and authenticated for delivery to the original purchaser thereof, they shall be delivered by the County Treasurer or his Deputy 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. 7. 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. -4- 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 3 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. -5- 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. 8. FORM OF BONDS. The bonds shall be in substan- tially the following form: UNITED STATES OF AMERICA STATE OF MICHIGAN COUNTY OF OAKLAND OAKLAND COUNTY WATER SUPPLY BOND (Walled Lake System Extension No. 1) INTEREST RATE MATURITY DATE DATE OF ORIGINAL ISSUE CUSIP October 1, 1988 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 interest 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 discharged at the rate per annum specified above. Interest is payable on the first days of April and October in each year, commencing on April 1, 1989. 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 Eight Hundred Fifteen Thousand Dollars ($815,000) issued by the County under and pursuant to and in full conformity with the Constitution and Statutes 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 the cost of acquiring and constructing the Walled Lake Water Supply System Extension No 1. 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 Eight Hundred Fifteen Thousand Dollars ($815,000) pursuant to a contract between the County and the City of Walled Lake dated as of January 1, 1988. -7- 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 are hereby 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 multiple 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 October 1, 1998, are not subject to redemption prior to maturity. Bonds maturing on and after October 1, 1998, are subject to redemption prior to maturity at the option of the County, in such order as shall be determined by the County, on any one or more inter- est payment dates on and after October 1, 1997. Bonds of a denomination greater than $5,000 may be partially redeemed in the amount of $5,000 or any integral multiple thereof. If less 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: 2% of the par value if called for redemption on or after October 1, 1997, but prior to October 1, 2000; of the par value if called for redemption on or after October 1, 2000, but prior to October 1, 2003. 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. 1% -8- 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. 9. SECURITY. The bonds shall be issued in anticipation of payments to be made by the City pursuant to the aforesaid Contract dated as of January 1, 1988. The bonds shall be secured primarily by the full faith and credit pledge made by the City in the Contract with the County pursuant to the authorization contained in Act 342. As additional 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 sane shall become due. If the City 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. 10. 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 pursuant to the Contract 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. 11. CONSTRUCTION FUND. The remainder of the proceeds of the sale of the bonds shall be set aside in a construction fund and used to acquire and construct the -11-- Walled Lake Water Supply System Extension No. 1 in accord- ance with the provisions of the Contract dated January 1, 1988. 12. 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 Treasurer is hereby 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 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. 13. REDUCTION OF PRINCIPAL AMOUNT OF BOND ISSUE. If the County Drain Commissioner, after the receipt of bids for the construction of the Walled Lake Water Supply System Extension No. 1, shall determine that it is not necessary to sell bonds in the principal amount of Eight Hundred Fifteen Thousand Dollars ($815,000), 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 section, the County Drain Commissioner shall reduce the amount of bonds maturing in any one or more years as necessary. -12- WM' APPPCM T1 FOREGOING RESOLUTION - - CI •-•SS Planning and Building Committee xecutIve Date -13- 14. SALE, ISSUANCE, DELIVERY, TRANSFER AND EXCHANGE OF BONDS. The County Drain Commissioner is hereby 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. 15. 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 Commissioner and other appropriate County officials are authorized to do all things necessary (including the making of covenants 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. ONS. 16. CONFLICTING RESOLUT All resolutions and parts of resolutions insofar as they may be in conflict herewith are rescinded. Mr. Chairperson, on behalf of the Planning and Building Committee, I move adoption of the foregoing resolution. this . day of Sqptember 1988 umvt. ALLEN, County Clerk/Register of D :Resolution // 88243 SepteMber 22,-1988 Moved by Hobart supported by Crake the resolution be adopted. AYES: R. Kuhn, S. Kuhn, Lanni, Luxon, A. McPherson, R. McPherson,Moffitt, Page, Pernick, Rewold, Rowland, Skarritt, Wilcox, Aaron, Bishop, Caddell, Crake, Doyon, Gosling, Hobart, Jensen. (21) NAYS: None. (0) A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND) 1, Lynn D. Allen, Clerk of the County of Oakland and having a seal, do hereby certify that I have compared the annexed copy of the attached resolution adopted by the Oakland County Board. of Commissioners at their regular meeting held on Seotember'22, 1988 with the original record thereof now remaining in my office, and that it is a true and correct transcript therefrom, and of the whole thereof. In Testimony Whereof, I have hereunto set my hand and affixed the seal of said County at Pontiac, Michigan