HomeMy WebLinkAboutResolutions - 1990.10.11 - 18316October 11, 1990 Miscellaneous Resolution # 90247
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 EVERGREEN-
FARMINGTON SEWAGE DISPOSAL SYSTEM CITY OF
LATHRUP VILLAGE POLLUTION CONTROL FACILITIES
EXTENSION NO. 1
TO: THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS, the County of Oakland (the "County") and the
City of Lathrup Village (the "City") have entered into the
Evergreen and Farmington Sewage Disposal System Pollution Control
Facilities City of Lathrup Village Extension No. 1 Contract dated
as of January 1, 1990 (the "Contract"), pursuant to the
provisions 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 Lathrup Village Pollution Control Facilities,
Extension No. 1 as part of the Evergreen and Farmington Sewage
Disposal System, 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 bonds and to 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 that
the bonds be issued and the project be acquired and constructed.
THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS
OF OAKLAND COUNTY, MICHIGAN, as follows:
1. AUTHORIZATION OF BONDS -- PURPOSE. Bonds of the
County aggregating the principal sum of Six Million Seventy-Five
Thousand Dollars ($6,075,000) 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 Lathrup Village Pollution
Control Facilities, Extension No. 1 as part of the Evergreen and
Farmington Sewage Disposal System.
2. BOND DETAILS. The bonds shall be designated
Evergreen-Farmington Sewage Disposal System (City of Lathrup
Village Extension No. 1) Bonds; shall be dated December 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 thereafter on the first days of May and November in
each year; and shall mature on November 1 in each year as
follows:
1991 $ 75,000
1992 100,000
1993 100,000
1994 100,000
1995 100,000
1996 200,000
1997 200,000
1998 200,000
1999 300,000
2000 300,000
2001 $300,000
2002 400,000
2003 400,000
2004 500,000
2005 500,000
2006 500,000
2007 500,000
2008 600,000
2009 700,000
3. PAYMENT OF PRINCIPAL AND INTEREST. The principal
of and interest on the bonds shall be payable in lawful 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. Interest shall be paid to the regis-
tered 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,
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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.
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 Commis-
sioners 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 authenticated for delivery to the
oricinal 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.
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 authorized 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
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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 governmental 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 substantially
the following form:
UNITED STATES OF AMERICA
STATE OF MICHIGAN
COUNTY OF OAKLAND
EVERGREEN-FARMINGTON SEWAGE DISPOSAL SYSTEM
(CITY OF LATHRUP VILLAGE EXTENSION NO. 1) BOND
INTEREST RATE MATURITY DATE DATE OF ORIGINAL ISSUE CUSIP
December 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 Six Million Seventy-Five Thousand Dollars
($6,075,000) 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
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part of the cost of acquiring and constructing the City of
Lathrup Village Pollution Control Facilities, Extension No. 1 as
part of the Evergreen and Farmington Sewage Disposal System. The
bonds of this series are issued in anticipation of payments to be
made by the City of Lathrup Village in the aggregate principal
amount of Six Million Seventy-Five Thousand Dollars ($6,075,000)
pursuant to a contract between the County and the City of Lathruo
Village _dated as of January 1, 1990. The full faith and credit
of theity of Lathrup 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 payment of
the principal of and interest on the bonds of this series. Taxes
levied by the (city of Lathrup 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 limitations.
This bond is transferable, as provided in the Resolu-
tion, 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 denomination, in the same aggregate principal
amount and of the same interest rate and maturity, shall be
authenticated and delivered to the transferee in exchange there-
for 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.
ring agent shall not be
or portions of bonds which
The bond registrar and pa
required to transfer or exchange bonds
have been selected for redemption.
Bonds maturing prior to Nc
subject to redemption prior to maturit
after November 1, 2000, are subject
maturity at the option of the County,
determined by the County, on any one
dates on and after November 1, 1999.
greater than $5,000 may be partially
$5,000 or any integral multiple thereof
bonds maturing in any year are to
portions of bonds to be redeemed shal
redemption price shall be the par value
the bond called to be redeemed plus
for redemption and a premium as follows ;:
)vember 1, 2000, are not
:y. Bonds maturing on and
: to redemption prior to
in such order as shall be
! or more interest payment
Bonds of a denomination
redeemed in the amount of
f. If less than all of the
be redeemed, the bonds or
be selected by lot. The
! of the bond or portion of
interest to the date fixed
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1% of the par value if called for redemption
on or after November 1, 1999, but prior
to November 1, 2003;
0.5% of the par value if called for redemption
on or after November 1, 2003, but prior
to November 1, 2006;
No premium if called for
after November 1, 2006.
redemption on or
:ice of redemption shall be
to be redeemed by mail to
:ered address. Bonds or
on shall not bear interest
provided funds are on hand
it to redeem the same.
Not less than thirty days' not
given to the holders of bonds called
the registered holder at the regist
portions of bonds called for redempt
after the date fixed for redemption,
with the bond registrar and paying ager
It is hereby certified, rec::
acts, conditions and things required
performed precedent to and in the iss
series, existed, have happened and
time, form and manner as required bl
indebtedness of said County, includir
which this bond is one, does not
statutory limitation.
IN WITNESS WHEREOF, the Count
its Board of Commissioners, has causec
in its name by facsimile signatures of
of Commissioners and the County Clerk
a facsimile thereof) to be impressed
bond shall not be valid unless the Cet
has been manually executed by an author
bond registrar and paying agent.
COUNTY OF OAKLAND
(SEAL)
bted and declared that all
to exist, happen and be
3uance of the bonds of this
lave been performed in due
r law, and that the total
ig the series of bonds of
cceed any constitutional or
:y of Oakland, Michigan, by
I this bond to be executed
the Chairman of the Board
and its corporate seal (or
or imprinted hereon. This
7tificate of Authentication
7ized representative of the
By: By:
County Clerk Chairman
Board of Commissioners
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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 identification
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 anticipa-
tion of payments to be made by the City pursuant to the Contract.
The bonds shall be secured primarily by the full faith and credit
pledge made by the City in the Contract pursuant to the authori-
zation 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 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 17,=ND. 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. All payments received from
the City 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.
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 City of Lathrup
Village Pollution Control Facilities, Extension No. 1 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 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.
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 Six Million
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VorPROVETHE FOREGOING RESOLUTION
—yo
Date Daniel T. M hy, Co nty
—11—
Seventy-Five Thousand Dollars ($6,075,000), 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, TRANSFER AND EXCHANGE 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 effectu-
ate 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 state-
ment" (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.
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.
16. CONFLICTING RESOLUTIONS. 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 the adoption of,the vforegoing resolution.
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Nyliit 'AND BUILDING COMMITTEE
PMW/09192/0046/AQ7/1
• October 11, 1990
FISCAL NOTE 90247
BY: FINANCE COMMITTEE, DR. G. WILLIAM CADDELL, CHAIRPERSON
IN RE: DRAIN COMMISSIONER - RESOLUTION TO AUTHORIZE THE ISSUANCE OF
BONDS TO DEFRAY PART OF THE COST OF EVERGREEN - FARMINGTON SEWAGE
DISPOSAL SYSTEM CITY OF LATHRUP VILLAGE POLLUTION CONTROL
FACILITIES EXTENSION NO. 1, "
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 #90247 and finds:
1) The resolution authorizes the issuance of tax-exempt Act 342
bonds with the County pledging its limited full faith and credit
as the secondary obligor.
2) The City of Lathrup Village is the primary obligor pledging
unlimited full faith and credit as approved by a vote of the
people.
3) The principal amount of the bond issuance is $6,075,000 at an
interest rate not to exceed 12%.
4) The statutory limit for County debt is $2,576,598,537 (10% of
1990 State Equalized Value). As of September 30, 1990, the
outstanding debt is $332,324,002 or approximately 1.3% of the
S.E.V.
5) No budget amendments are necessary.
FINANCE COMMITTEE
LV7/oc9004fn
Resolution # 90247 October 11, 1990
Moved by Crake supported by Calandro the resolution be adopted.
AYES: McConnell, McPherson, Moffitt, Oaks, Pappageorge, Pernick, Price,
Rewold, Skarritt, Aaron, Bishop, Calandro, Chester, Crake, Ferrens, Gosling,
Huntoon, Jensen, Johnson, R. Kuhn, Luxon. (21)
NAYS: None. (0)
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 October 11, 199Q
with the original record thereof now remaining In my office.
In Testimony Whereof, I have hereunto set py hand and affixed the seal of the County
of Oakland at Pontiac, Michigan this 11th day of OCUOgi r-o' 199LL
f
' ' ''..!'t •-.4.-%,..' 4.). ..,,,... '- .....:,...
-- Lynn V. Allen, County Clerk
i