HomeMy WebLinkAboutResolutions - 1990.08.09 - 18219Miscellaneous Resolution # 90190 August 9, 1990
BY: PLANNING & BUILDING COMMITTEE,
LARRY CRAKE, CHAIRPERSON
IN RE: DRAIN COMMISSIONER--
RESOLUTION TO AUTHORIZE THE ISSUANCE
OF BONDS TO DEFRAY PART OF THE COST
OF ORCHARD LAKE VILLAGE SANITARY
SEWAGE COLLECTION AND DISPOSAL SYSTEM
TO: THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS, the County of Oakland (the "County") and
the City of Orchard Lake Village (the "City") have entered
into the City of Orchard Lake Village Sanitary Sewage
Collection and Disposal System Contract dated as of
November 1, 1989 (the "Contract") pursuant to the provisioDs
of Act No. 342, Public Acts of Michigan, 1939, as amended ,
("(Act 342"); and
WHEREAS, the Contract provides for the issuance of
bonds by the County to defray the cost of acquiring and
constructing the City of Orchard Lake Village Sanitary
Sewage Collection and Disposal System, said bonds to he
secured by the contractual obligation of the City 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 account of the bonds;
and
WHEREAS, it is in the best interest of the County
of Oakland that the bonds be issued and the project he
acquired and constructed.
THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMIS-
SIONERS OF OAKLAND COUNTY, MICHIGAN, as follows:
1. AUTHORIZATION OF BONDS -- PURPOSE. Bonds of
the County aggregating the principal sum of Two Million one
Hundred Thirty Five Thousand Dollars ($2,135,000) shall be
issued and sold pursuant to the provisions of Act 342, and
other applicable statutory provisions, for the purpose of
defraying part of the cost of acquiring and constructing the
City of Orchard Lake Village Sanitary Sewage Collection and
Disposal System.
2. BOND DETAILS. The bonds shall be designated
Oakland County Sewage Disposal Bonds (City of Orchard Lake
Village System); shall be dated September 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 10% per annum
to be determined upon the sale thereof payable on May 1,
1991, and semiannually thereafter on the first days of May
and November in each year; and shall mature on November 1 in
each year as follows:
1993 $ 35,000 2002 $125,000
1994 50,000 2003 125,000
1995 50,000 2004 125,000
1996 75,000 2005 150,000
1997 75,000 2006 150,000
1998 100,000 2007 175,000
1999 100,000 2008 175,000
2000 100,000 2009 200,000
2001 100,000 2010 225,000
3. 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.
4. PRIOR REDEMPTION. Bonds maturing prior to
November 1, 2000 shall not be subject to redemption prior to
maturity. Bonds maturing on and after November 1, 2000
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
Treasurer shall designate, and may enter into an agreement
with, a bond registrar and paying agent for the bonds which
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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.
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
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 to
the purchaser upon receipt of the purchase price. Addi-
tional 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.
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 autho-
rized 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
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and paying agent authenticates and delivers a new bond pur-
suant 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.
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.
S. 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 SEWAGE DISPOSAL BOND
(CITY OF ORCHARD LAKE VILLAGE SYSTEM)
INTEREST RATE MATURITY DATE DATE OF ORIGINAL ISSUE CUSIP
September 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 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
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 One Hundred Thirty Five
Thousand Dollars ($2,135,000) issued by the County under and
pursuant to and in full conformity with the Constitution and
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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 "Resolu-
tion") for the purpose of defraying part of the cost of
acquiring and constructing the City of Orchard Lake Village
Sanitary Sewage Collection and Disposal System. The bonds
of this series are issued in anticipation of payments to be
made by the City of Orchard Lake Village in the aggregate
principal amount of Two Million One Hundred Thirty Five
Thousand Dollars ($2,135,000) pursuant to a contract between
the County and the City of Orchard Lake Village dated as of
November 1, 1989. The full Faith and credit of the City of
Orchard Lake Village 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 pay-
ment of the principal of and interest on the bonds of this
series. Taxes levied by the City of Orchard Lake Village
for the payment of its obligations to the County are not
subject to limitation as to rate or amount. Taxes levied by
the County to pay the principal of and interest on the bonds
of this series are subject to constitutional tax limita-
tions.
This bond is transferable, as provided in the Reso-
lution, 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 November 1, 2000, are not
subject to redemption prior to maturity. Bonds maturing on
and after November 1, 2000, 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
interest payment dates on and after November 1, 1999. Bonds
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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 November 1, 1999 1 but prior
to November 1, 2001;
1.5% of the par value if called for redemption
on or after November 1, 2001, but prior
to November 1, 2003;
1% of the par value if called for redemption
on or after November 1, 2003, but prior
to November 1, 2005;
0.5% of the par value if called for redemption
on or after November 1, 2005, but prior
to November 1, 2007;
No premium if called for redemption on or
after November 1, 2007.
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
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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
registrar 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 of Orchard
Lake Village pursuant to the Contract. The bonds shall be
secured primarily by the full faith and credit pledge made
by the City of Orchard Lake Village in the Contract 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 same shall become due.
If the City of Orchard Lake Village shall fail to make pay-
ments to the County which are sufficient to pay the prin-
cipal 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 plus such additional amount as
shall be necessary to pay the interest on the bonds on
May 1, 1991, November 1, 1991 and May 1, 1992. All payments
received from the City of Orchard Lake Village pursuant to
the Contract as amended are pledged for payment of the prin-
cipal 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 pro-
ceeds of the sale of the bonds shall be set aside in a con-
struction fund and used to acquire and construct the City of
Orchard Lake Village Sanitary Sewage Collection and Disposal
System in accordance with the provisions of the Contract.
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 Depart-
ment 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 appli-
cation to the Department of Treasury for permission to issue
and sell the bonds as provided by the terms of this resolu-
tion and for approval of the form of Notice of Sale.
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13. 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 One Hundred Thirty Five Thousand Dollars
($2,135,000), 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.
14. SALE, ISSUANCE, DELIVERY 1 TRANSFER AND
EXCHANGE OF BONDS. The County Drain Commissioner is autho-
rized to prescribe the form of notice of sale for the bonds,
to sell the bonds at not less than 98.5% of par plus accrued
interest in accordance with the laws of this state and to do
all things necessary to effectuate the sale, issuance,
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 para-
graph (e)(3) of the Rule) on a timely basis and in reason-
able 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.
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 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.
16. CONFLICTING RESOLUTIONS. All resolutions and
parts of resolutions insofar as they may be in conflict
herewith are rescinded.
AND BUILDING COMMITTEE
Mr. Chairperson, on behalf of the Planning and
Building Committee, I move the adoption of the foregoing
resolution.
3AE/09007/0215/BY5/2
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FISCAL NOTE (Misc. 90190) August 9, 1990
BY: FINANCE COMMITTEE, DR. G. WILLIAM CADDELL, CHAIRPERSON
IN RE: DRAIN COMMISSIONER - RESOLUTION TO APPROVE THE ISSUANCE OF BONDS
TO DEFRAY PART OF THE COST OF ORCHARD LAKE VILLAGE SANITARY
SEWAGE COLLECTION AND DISPOSAL SYSTEM, MISCELLANEOUS RESOLUTION
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 # 90190 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 obligor.
2) The primary obligor is the City of Orchard Lake, pledging
its full-faith and credit, as approved by a vote of the
people.
3) The obligation of the County is a limited tax obligation,
while the obligation of the City is not limited.
4) The principal amount of the bond issue is $2,135,000 at an
interest rate not to exceed 10%.
5) The statutory limit for County debt is $2,576,598,537 (10%
of 1990 State Equalized Value). As of June 30, 1990, the
outstanding debt is $355,854,002 or approximately 1.4% of
the S.E.V.
6) No budget amendments are necessary.
FINANCE COMMITTEE
RESOLUTION # 90190 August 9, 1990,
Moved by Crake supported by Moffitt the resolution be adopted.
AYES: Oaks, Olsen, Pappagecrge. Pernick, Price. Rewold, Skarritt,
Wolf, Aaron, Caddell, Chester, Crake, Ferrens, Gosling, Huntoon, Jensen, Johnson,
R. Kuhn, Law, McConnell, McPherson, Moffitt. (22)
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, 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 August 9, 1990
with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affiAed the seal of the County
of Oakland at Pontiac, Michigan this 9th daY 0,-/ .AIT.-P , /2 1911
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Lynn/D. Allen, County Clerk