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HomeMy WebLinkAboutResolutions - 1986.11.20 - 18156FINANCE COY1,7"-"7 .----L- Committee Vote: L .„ Motion carried unanimously on a roll call vote with Doyon absent. Ddie0 MISCELLANEOUS RESOLUTION # 86327 November 20, 1986 BY: FINANCE COMMITTEE RE: TREASURER'S OFFICE - APPROVAL OF NOTICE OF SALE TO: THE OAKLAND COUNTY BOARD OF COMMISSIONERS MR. CHAIRMAN, LADIES AND GENTLEMEN: If a public sale is held, sealed proposals for the purchase of the Notes approved in the 1987 Borrowing Resolution (1986 Delinquent Taxes) shall be received up to such time as shall later be determined by the Treasurer, and notice shall be published in accordance with law once in at least one of the -Bond Buyer, the Michigan Investor, or the Detroit Legal News, each of which is a publication printed in the English language and circulated in this State, which carries as a part of its regular service notices of sale of municipal bonds. The notice (the "Notice of Sale") shall be in substantially the form as that attached to this Resolution as Exhibit A. Mr. Chairperson, on behalf of the Finance Committee, I move the ad.cticn cf the foregoing resolution, 7777'1) 7n,r, 100'1 $ 7,7VrV777,77' EXHIBIT A OFFICIAL NOTICE OF SALE COUNTY OF OAKLAND STATE OF MICHIGAN GENERAL OBLIGATION LIMITED TAX NOTES, SERIES 1987 SEALED BIDS: Sealed bids for the purchase of General Obligation Limited Tax Notes, Series 1987, of the County of Oakland (the "County"), Michigan, of the par value of will be received by the undersigned at the office of the County Treasurer, 1200 N. Telegraph, Pontiac, Michigan 48053, until Michigan Time, on 1987, at which time they will be publicly opened and read. Sealed bids will also be received on the same date and until the same time by an agent of the undersigned at the office of the Municipal Advisory. Council of Michigan, '1158 First National Building, Detroit, Michigan 48226, where they will be publicly opened simultaneously. Bids opened at Detroit, Michigan,. will be read first, .followed by the alternate location. Bidders may choose either location to present bidsand good faith checks, but not both locations. AWARD: The notes will be awarded to the successful bidder at a proceeding conducted by the County Treasurer approximately thirty minutes after all bids have, been opened on that date. NOTE DETAILS: The notes will be fully registered notes of the denomination of $5,000 each or any multiple of $1,000 over $5,000, as desicnated by the purchaser; will bear -interest from their date iDavablc, on October 15, 1987, and semiannually wi 77 F,=t=r7 , 1 987; will be numbered from 1 upward, and will mature serially on April 15 in years and amounts as follows: PRIOR REDEMPTION: Notes maturing in 1988 and 1989 shall not be subject to redemption prior to maturity. Notes maturing on April 15, 1990, may be redeemed in whole or in part on any date or dates on or after April 15, 1989, at the option of the County Treasurer at par, plus accrued interest to the redemption date, plus a premium of % of the par amOunt so redeemed. 28 With respect to partial 'redemptions, any portion of a note outstanding in a denomination larger that the minimum authorized denomination may be redeemed provided such portion as well as the amount not being redeemed constitute authorized denominations. In the event that less than the entire principal amount of a note is called for redemption, upon surrender of the note to the Note Registrar, the Note Registrar shall authenticate and deliver to the registered owner of the note a new note in the principal amount of the principal portion not redeemed. Notice of redemption shall be sent by first class mail to the registered holder of each note being redeemed at least 30 days prior to the date fixed for redemption. Any defect in any notice shall not affect the validity of the redemption proceedings. Notes so called for redemption shall not bear interest after the date fixed for redemption provided funds are on hand with a paying agent to redeem the same. INTEREST RATE AND BIDDING DETAILS. The notes will bear interest from their date at a rate or rates specified by the successful bidder, not exceeding % per annum, expressed in multiples of 1/8 or 1/20 of 1%, or any combination thereof. Interest on the notes of any maturity shall be at one rate only, and the difference between the highest and lowest rate of interest bid shall not exceed 4%. A discount of not to exceed % may be bid on the notes. NOTE REGISTRAR AND DATE OF RECORD. has been selected as Note Recistrar for the notes. The Note Registrar will keep records of the registered holders of the notes, serve as transfer agent for the notes, authenticate the original and any re-issued notes and will pay principal and interest to the registered holders of the notes as shown on the records on the applicable date of record. The date of record shall be September 30 with respect to payments made on October 15, and -March 31 with respect to payments made on April 15. PURPOSE: The notes are issued for the purpose of establishing the 1987 100% Tax Payment Account of the County for the 1986 tax year and for the purpose of establishing a $ 1987 Note Reserve Account. PRIMARY SECURITY: The notes are primarily_ secured by: (1) all of the collections of the 1986 real property taxes due and payable to taxing units in the County, including the County, which were returned delinquent on March 1, 1987, together with all interest thereon; .(2) all of the property tax administration fees on such delinquent taxes, once the expenses of borrowing have been paid; (3) any amounts which are received by the County from the taxing units within the County because of the uncollect- ability of such delinquent ,taxes; and (4) all amounts of delinquent taxes returned to the County on March 1, 1986, 1985 or 29 1984, subject to any prior pledge thereof by the County made to secure notes or obligations previously issued. NOTE RESERVE ACCOUNT: In the event the primary security is insufficient to meet the prompt payment of the principal of, premium, if any, and interest on these notes when due, for any reason, the moneys in the 1987 Note Reserve Account shall be used to make such payment. All moneys in the 1987 Note Reserve Account shall be used solely for payment of principal of and interest on the notes or for the purchase of notes for which the fund was established. Moneys in the 1987 Note Reserve Account shall be withdrawn first for payment of principal of and interest on the notes before other County general funds are used to make the payments. When the 1987 Note Reserve Account is sufficient to retire the notes and accrued interest thereon, it may be used for purchase of such notes on the market, or, if notes are not available, to retire notes when due. GENERAL OBLIGATION WITHOUT UNLIMITED POWER TO TAX. In addition, this note issue is a general obligation of the County, secured by its full faith and credit, which shall include the limited - tax obligation of the County, within applicable constitutional and statutory limits, and its general funds. - THE COUNTY DOES NOT HAVE THE POWER TO LEVY ANY TAXES FOR THE PAYMENT OF THE NOTES IN EXCESS OF ITS CONSTITUTIONAL AND STATUTORY LIMITS. QUALIFIED STATUS: It is anticipated that upon their issuance the notes will constitute qualified tax exempt obligations for purposes of Paragraph 265(b)(3) of the Internal Revenue Code of 1986. [The next two ParagraPhs are optional and will be inserted in the Notice of Sale if the note iss for insurance or is submitted to a rating agency for a rating.2 NOTE INSURANCE: has issued a commitment for municipal bond insurance covering the notes. All tits shall be conditioned upon the issuance effective as of the fate on which the notes are issued, of a Policy of insurance by cuaranteeins the payment of principal and interest on the notes. Each note will bear a legend referring to the insurance. The purchaser, holder or owner is not authorized to make any statement regarding the insurance beyond those set out here and in the note legend. RATING: The County has applied for a. rating of the Notes from . No application was made to any other rating agency for the purpose of obtaining an additional rating of the Notes. The rating has not yet been assigned, as of the date of this Notice of Sale, although the County expects that the rating will be available in advance of the sale date. 30 AWARD OF THE NOTES: For the purpose of awarding the notes, the interest cost of each bid will be computed by determining, at the rate specified therein, the total dollar amount of all interest on the notes from , 1987, to their maturity and deducting therefrom any premium or adding thereto any discount. The notes will be awarded to the bidder whose bid on the above computation produces the lowest interest to the County. No proposal for less than % of par, nor less than all the notes, will be considered. Each bidder, for the convenience of the County, _shall state in his bid the net interest cost to the County, computed in the manner above specified. GOOD FAITH: A certified check, cashier's check or bank money order in the amount of 2% of the par value of the notes drawn upon an incorporated bank or trust company and payable to the order of the County Treasurer must accompany each bid as a guarantee of good faith on the part of the bidder, to be forfeited as liquidated damages if such bid is accepted and the bidder fails to take up and pay for the notes. No interest will be allowed on good faith deposits. The good faith check of the winning bidder will be promptly cashed, and the amount received therefor will be credited against the purchase price as of the date of delivery. Checks of unsuccessful bidders will be Promotly returned to each bidder's representative or returned by registered mail. In the event the notes cannot be issued or delivered for any reason, the County will pay back to the successful bidder the principal amount of the good faith check without interest. LEGAL OPINION: Bids shall be conditioned upon the unqualified approving opinion of Dykema, Gossett, Spencer, Goodnow & Trigg, attorneys of Detroit, Michigan, approving the legality of the notes, a copy of which will be printed on each note, and the original of the opinion will be delivered without expense to the purchaser of the notes at the delivery of the notes. DELIVERY OF NOTES: The County will furnish notes ready for -execution at its expense at Detroit, Michigan, or any mutually agreeable place. The usual documents, including a certificate that no litigation is pending, affecting the issuance of the notes, will be delivered at the time of delivery of the notes. If the notes are not tendered for delivery by twelve o 'clock noon, Michigan Time, on the 45th day following the date of sale, or the first business day thereafter, if said 45th- day is not a business day, the -successful bidder may on that day, or any time thereafter until delivery of the notes, withdraw his proposal by serving notice of cancellation on the undersigned, in writing, in which event the County shall promptly return the good faith deposit. Payment - for the notes shall be made in Federal Reserve funds. Accrued interest to the date of delivery of the notes shall be paid by the purchaser at the tiMe of delivery. 31 CUSIP NUMBERS: CUSIP nuMbers have been applied for and will be printed on the notes at the expense of the County. The printing of incorrect CUSIP numbers or the failure to print the CUSIP numbers on the notes shall not constitute cause for the purchaser to refuse delivery of the notes. . ADDITIONAL INFORMATION: Further information may be obtained from the Oakland County Treasurer at the address specified above or from John R. Axe or Monica S. Him, at Municipal Financial Consultants Incorporated, 400 Renaissance Center, Detroit, Michigan 48243, telephone number (313) 568-5410. THE RIGHT IS RESERVED TO REJECT ANY OR ALL BIDS. ENVELOPES: Envelopes containing the bids should be plainly marked "Proposal for Oakland County -General Obligation Limited Tax Notes, Series 1987." C. Hugh Dohany, Treasurer 32 The following preambles and resolution were offered by Caddell and seconded by Webb RESOLUTION 4 RESOLUTION IN ANTICIPATION OF AMENDMENTS TO ACT 206 WHEREAS, Act No. 206, Michigan Public Acts of 1893, as amended ("Act 206"), requires that taxes which will be unpaid and uncollected on March 1, 1987 and which will thereafter be returned to the County's Treasurer (the "Treasurer") for collection (the "Delinquent Taxes") be pledged toward the payment of the Notes approved in Resolution 1 (the "Notes"); and WHEREAS, subsequent to the date hereof, but prior to the issuance of the Notes, Act 206 may be amended to permit the County to issue the Notes after having pledged less than all of the Delinquent Taxes toward the payment of the Notes; THEREFORE, IT IS RESOLVED BY THE BOARD OF COMMISSIONERS AS FOLLOWS: Notwithstanding any contrary provision of Section 103, 601, 604 or 605 of Resolution 1, but specifically subject to Sections 608 and 809 of Resolution 1, in the event Act 206- is amended to Permit any portion of the Delinquent Taxes not to be pledged toward the payment of the Notes the Treasurer may order that (i) a Portion of the Delinquent Taxes received by the County, not in excess of amounts permitted under Act 206, as so amended, be dePosited into the general fund of the County or into any other fund or account of the County which is not pledged toward the payment of the Notes, . and (ii) at least 20 days Prior to each payment date of the Notes, moneys be transferred from the general fund or other account to the Note Payment Account or any unPledoed debt retirement fund, or any sub-account therein, in an amount sufficient to discharge the obligations accruina on the Notes on such payment date. In the event any Tortion 'of the Delinquent Taxes are not pledged to the payment of the Notes pursuant to this Resolution 4, the Form of Note authorized in R e solution 1 and the Form of Notice of Sale authorized in Resolution 3 shall be changed accordingly. 33 Discussion followed. A vote was thereupon taken on the foregoing resolutions and was as follows: AYES: McConnell, McDonald, McPherson„MoffittNelson, Olsen,,Page,_PerinOff„ Pernick, Price, Rewold, Rowland, Skarritt, Webb, Wilcox, Aaron, Caddell, Calandro, Doyon, Gosling, Hassberger, Hobart, R. Kuhn, S. Kuhn i Lanni, Law. 120 NAYS: None. (0) ABSTAIN: None. (0) A sufficient majority having voted therefor, the resolutions appearing above were adopted, STATE OF MICHIGAN COUNTY OF OAKLAND certify that the foregoing is a true and accurate copy of resolutions adopted by the Oakland County Board of Commissioners at a regular__ meeting held on the _20th day of Novemher 1986, and that notice of such meeting was given as required by law. yryfi D. Allen, Clerk 02861 34