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HomeMy WebLinkAboutResolutions - 1968.03.12 - 18945RESOLUTION FOR ADOPTION BY BOARD OF SUPERVISORS OAKLAND COUNTY, MICHIGAN MISC. 4839 IN RE: BOND ISSUE FOR COUNTY PRIMARY AND LOCAL ROADS The following resolution was offered by Mr. MeAvoY and seconded by Mr. )Wlemix Valentine : WHEREAS, pursuant to Act No. 51, Michigan Public Acts of 1951, as amended (hereinafter sometimes referred to as "Act No. 51"), the "motor Vehicle Highway Fund" was established and is maintained in the State Treasury, into which fund taxes collected by the State of Michigan on gasoline and other motor fuels and on motor vehicles regis- tered in the state are required by said Act to be deposited, and all moneys in said fund (after deduction of administrative and enforcement expenses) are by said Act apportioned and appropriated for each fiscal year (July 1 - June 30) and required to be distributed and used for high- way purposes as follows: 46% to the state Highway Department, 34% to the several Boards of County Road Commissioners of the state, and 20% to the incorporated cities and villages of the state; and WHEREAS, under the provisions of Section 18c of said Act No. 51, any county may borrow money and issue bonds, pledging for the payment thereof moneys received or to be received by the Board of County Road Commissioners of such county from the Motor Vehicle Highway Fund, for the purpose of paying all or any portion of the cost of the construc- tion or reconstruction of any highways which by law the said Board is authorized to construct or reconstruct, or participate with other govern- mental units in the construction or reconstruction of, including the construction or the enlargement, reconstruction or relocation of existing highways and the acquisition of necessary rights-of-way therefor and all work incidental thereto; and WHEREAS, any such pledge of Motor Vehicle Highway Funds under Section 18c of said Act No. 51, is by said section made subordinate to any pledges thereof made by the county or its Board of County Road Com- missioners prior to July 1, 1957 (the effective date of said Section - 18c) for payment of contractual obligations under Act No. 205, Michigan Public Acts of 1941, as amended, or for payment of notes issued under Act No. 143, Michigan Public Acts of 1943, as amended, but any such pledge under Section 18c is made of equal standing and priority with pledges made subsequent to said date under any of said Acts; and WHEREAS, there are currently outstanding no bonds, notes or contractual obligations of the County of Oakland or its Board of County Road Commissioners, nor have any such bonds, notes or contractual obliga- tions heretofore been authorized to be issued or assumed, pledging for the payment of the principal thereof or interest thereon any moneys re- ' ceived or to be received by said county or said Board from the Motor Vehicle Highway Fund, except as set forth below: (1) The County of Oakland, by contracts heretofore made with the Michigan State Highway Commissioner pursuant to Act No. 205, Michigan Public Acts of 1941, as amended, has pledged moneys to be received from the Motor Vehicle Highway Fund for payment of contributions to be made to the State (which contributions have been pledged by the State for the payment of bonds), as follows: (a) An aggregate amount of $300,000 pledged under contract dated December 21, 1954, for payment of the County's portion of the cost of financing the construction of the Farmington-Brighton Expressway through the issuance by the State of Michigan of $5,000,000 of bonds dated as of December 1, 1954, of which $300,000 aggregate amount the sum of $61,250 remains unpaid and is due and payable in installments as hereinafter set forth; and (b) An aggregate amount of $1,800,000 pledged under contract dated march 7, 1957, for payment of the County's portion of the cost of financing the construction of the Northwestern Expressway through the issuance by the State of Michigan of -2- $25,000,000 of bonds dated as of May 1, 1957, of which $1,800,000 aggregate amount the sum of $832,500 remains unpaid and is due and payable in installments as herein- after set forth. (2) The County of Oakland has also heretofore pledged moneys to be received from the Motor Vehicle Highway Fund for payment of the principal of and the interest on $6,000,000 of Motor Vehicle Highway Fund Bonds issued by the County under date of January 1, 1962, which bonds in the aggregate principal sum of $4,915,000 are presently out- standing, and the principal of and the interest on said bonds are due and payable in annual amounts as hereinafter set forth. (3) The County of Oakland (by and in the name of its Board of County Road Commissioners) has also heretofore pledged moneys to be received from the Motor Vehicle Highway Fund for payment of the princi- pal of and the interest on $1,000,000 of Motor Vehicle Highway Fund Revenue Notes dated as of February 1, 1968, which notes were sold on February 27, 1968 and are shortly to be delivered, and the principal of and the interest on said notes are due and payable in annual amounts as hereinafter set forth; and WHEREAS, the total annual principal and interest requirements (and therefore the total annual amounts of such revenues pledged for pay- ment thereof) for the above-described contract obligations of the County to the State, the above-described bonds of the County, the above-described notes of the County, and the bonds proposed to be issued by the County as hereinafter provided (interest on the latter bonds being computed at 5% per annum), are respectively as follows: -3- REQUIRED FOR REQUIRED FOR REQUIRED FOR CALENDAR CONTRACT COUNTY BONDS COUNTY NOTES YEAR OBLIGATIONS DATED 1/1/62 DATED 2/1/68 TOTAL REQUIREMENTS (PLEDGES) REQUIRED FOR PROPOSED COUNTY BONDS 266,667 272,500 293,750 313,750 307,500 376,250 366,250 356,250 371,250 360,000 348,750 362,500 350,000 337,500 325,000 312,500 300,000 287,500 275,000 262,500 $6,445,417 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 Tota $105,000 105,000 105,000 105,000 90,250 90,000 90,000 90,000 90,000 22,500 s $893,750 $ 400,462.50 $ 22,750 402,962.50 245,500 405,162.50 235,500 407,062.50 225,500 408,662.50 216,300 409,962.50 208,200 410,962.50 416,662.50 416,912.50 421,862.50 426,362.50 425,412.50 429,162.50 426,487.50 428,487.50 $6,236,587.50 $1,153,750 $ 528,212.50 1,020,129.50 1,018,162.50 1,031,312.50 1,028,712.50 1,015,662.50 877,212.50 872,912.50 863,162.50 815,612.50 786,362.50 774,162.50 791,662.50 776,487.50 765,987.50 325,000.00 312,500.00 300,000.00 287,500.00 275,000.00 262,500.00 $14,728,254.56 and the County has not heretofore borrowed any money or incurred any ob- ligations, for the payment of which there are presently pledged future revenues derived from state-collected taxes returned to the County for County road purposes, except the above-mentioned contractual obligations to the State and the above-mentioned County bonds and County notes, nor have any such future revenues been heretofore specifically allocated for any purpose other than for payment of such contractual obligatons and the principal of and interest on such bonds and notes; and WHEREAS, the total aggregate amount of bonds which may be is- sued by any county under the provisions of Section 18c of said Act No. 51, pledging moneys received or to be received from the Motor Vehicle Highway Fund, is subject to the following limitations: -4- (1) The maximum annual principal and interest requirements on all such bonds issued under Section 18c of Act No. 51 may not exceed 20% of the moneys received by the Board of County Road Commissioners of the county from the Motor Vehicle Highway Fund during the fiscal year next preceding issuance of the bonds; and (2) The maximum annual principal and interest requirements on (a) all such bonds issued under Sec- tion 18c of said Act No. 51 plus (b) all contractual obligations assumed under Section 18d of said Act No 51, plus (c) all notes issued under Act No. 143, Michigan Public Acts of 1943, as amended, may not in the aggregate exceed 50% of the moneys received by the Board of County Road Commissioners of the county from the Motor Vehicle Highway Fund during the fiscal year next preceding issuance of the bonds; and WHEREAS, the County of Oakland received from the Motor Vehicle Highway Fund during the fiscal year ended June 30, 1967, the total sum of $5,946,415.99, of which total $4,858,974.51 was allocated for the county primary roads and $1,087,441.48 was allocated for county local roads; and WHEREAS, the highest combined annual requirement for princi- pal and interest on the above-mentioned bonds issued by the County under date of January 1, 1962, and on the bonds proposed to be issued by the County as hereinafter provided (interest on the latter bonds being com- puted at 5% per annum), is in the year 1977 and in the amount of $793,112.50, which is less than 20% of the moneys received by the County from the Motor Vehicle Highway Fund during the fiscal year ending June 30, 1967, to-wit, approximately 13% thereof and WHEREAS, the highest combined annual requirement for prin- cipal and interest on all of the hereinbefore mentioned contractual obligations, bonds and notes (including the bonds hereinafter autho- rized to be issued with interest thereon computed at 5% per annum), is in the year 1971 and in the amount of $1,031,312.50, which is less than 50% of the moneys received by the County from the Motor Vehicle Highway Fund during the fiscal year ending June 30, 1967, to-wit, ap- proximately 17% thereof; and WHEREAS, the Board of County Road Commissioners of the County of Oakland by resolution has determined that the hereinafter designated county primary and local road improvements are necessary and should be made and has estimated the period of usefulness thereof as 25 years and upwards and the total cost thereof as $5,654,550, of which $5,025,450 is for county primary road improvements and $629,100 is for county local road improvements, and has in writing and by said resolution recommended and approved the adoption of this resolution and the issuance of the bonds hereinafter authorized in the aggregate principal amount of $4,000,000, of which $3,685,450 is to defray a part of the cost of said county primary road improvements and $314.550 is to defray a part of the cost of said county local road improvements, with the balance of the cost of said primary road improvements and said local road improvements to be defrayed from funds contributed by municipalities or other governmental units to be benefited by said improvements or otherwise available to the county for such purposes; and -6- WHEREAS, the hereinafter authorized bonds may properly be issued within the limitations prescribed by law; THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE COUNTY OF OAKLAND, STATE OF MICHIGAN, as follows: 1. That the above-mentioned resolution and written recom- mendation and approval of the Board of County Road Commissioners of the County of Oakland are hereby received and approved, and the determina- tion therein as to the necessity of making the hereinafter designated county primary and local road improvements, the estimates therein of the cost and the period of usefulness of such improvements, and the recom- mendation therein that Motor Vehicle Highway Fund Bonds be issued in the aggregate principal amount of $4,000,000 to defray a part of the cost of Said improvements, are hereby approved and adopted. 2, That in accordance with the said recommendation of the Board of County Road Commissioners, and pursuant to Section 18c of said Act No. 51, Michigan Public Acts of 1951, as amended, the County of Oakland, State of Michigan, shall borrow the sum of Four Million Dollars ($4,000,000) and issue its bonds therefor in such aggregate principal amount, for the purpose of defraying to the extent of $3,685,450, a part of the cost of making improvements to county primary roads, and to the extent of $314,550, a part of the cost of making improvements to county local roads, such improvements being sometimes herein referred to collec- tively as the "county primary and local road improvements", and consist- ing of the construction or reconstruction as indicated below, of the following county primary and local roads and between the following termini, to-wit: -7- Intersection Widen to 4 lanes, N & S legs, (Bit.Agg.) Intersection Widen to 4 lanes, all legs, .(Bit.Agg.) Intersection Widen &Lengthen all 4 legs ,resurface intersec- tion, (Bit.Agg.) COUNTY PRIMARY ROADS ROAD TO BE LENGTH TERMINI OF NATURE OF IMPROVED (MILES) IMPROVEMENT IMPROVEMENT Cass-Elizabeth & Parkway Intersection Construct W. bound passing lane, improve radius on Parkway (Bit. Agg.) Commerce 0.3 750' E & 750' W Reconstruct tO 2 1/4" x of Burns Road 22" Bit.Agg. Surf. Cranbrook 0.5 14 Mile to Reconstruct 24' concrete Lincoln pavement. Elizabeth Lake 0.9 M-59 to Lynn Widen to 5 lanes Concrete pavement Farmington 1.0 8 Mile to Reconstruct to 4 lanes 9 Mile Concrete pavement Greenfield 3.0 11 Mile to Reconstruct to 5 lanes 14 Mile Concrete pavement Joslyn 2.3 Waldon to Reconstruct to 2 1/2" x Clarkston 22' Bit.Agg. Surf. Lasher-14 Mile Intersection Widen to 4 lanes, N & S legs, (Bit.Agg.) Lasher-Lincoln Intersection Construct 2 add. lanes, N,& S legs, (Bit.Agg.) Maple 1.0 Telegraph to Widen to 4 lanes, 5 lanes Franklin near Telegraph, concrete pavement Maple 1.0 Coolidge to Reconstruct to 5 lanes, Livernois concrete pavement Novi 1.2 1-96 to Reconstruct 24' concrete 12 1/2 Mile pavement Opdyke-Featherstone Opdyke-Mt. Clemens 10 Mile-Orchard Lake 12 Mile Walton Blvd. 1.0 Southfield to Greenfield 1.5 Squirrel to Adams Reconstruct to 4 lanes with curb, concrete pave- ment Construct 2 new lanes, concrete pavement (76' median) P.- 11 Mi. & Power Drake Square Lake $leeth Eston Fish Lake Newton Canal & Oakside 1.4 1.2 1.2 2.2 0.5 0.5 1.6 0.6 COUNTY LOCAL ROADS ROAD TO BE IMPROVED LENGTH (MILES) TERMINI OF IMPROVEMENT NATURE OF IMPROVEMENT 10 Mi.to west of Orchard Lake Rd. Grand River Rd.to North of 11 Mi. Eastways to Adams Wixom Rd. to Bass Lake Rd. Clarkston Rd. to Algonquin St. Quick Rd. to Timsman Rd. Oakley Park Rd.to Commerce Rd. Wise Rd. to Howick Ave. Reconstruct to 2 1/4" x 22' Bit.Agg.Surf. Construct pavement 2 1/4" x 22' Bit Surf. Construct pavement 2 1/4" x 22' Bit. Surf. Construct pavement 2 1/4" x 22' Bit. Surf. Construct pavement 2 1/4" x 22' Bit. Surf. Reconstruct to 2 1/4" x 22' Bit. Surf. Reconstruct to 2 1/4" x 22 ° Bit. Surf. Reconstruct to 2 1/4" x 22' Bit. Surf. 3. That the said bonds shall be known as "Motor Vehicle Highway Fund Bonds of 1968"; shall be dated as of June 1, 1968; shall be numbered consecutively in the direct order of their maturity from 1 to 800, both inclusive; shall be in the denomination of $5,000 each; shall bear interest at a rate or rates, to be hereafter determined by competitive bidding, not exceeding the maximum rate to be prescribed by the Municipal Finance Commission in the approved notice of sale (within the maximum permitted by law), payable on January 1, 1969 and semi-annually thereafter on the first days of July and January in each year; shall have proper coupons attached thereto evidencing interest to their respective maturities; shall be payable as to both principal and interest in lawful money of the United States of America, at such bank or trust company as shall be designated by the original purchaser of the bonds, who may likewise designate one or more co-paying agents (subject to approval by the County); and shall mature on the first day of July in years and principal amounts as follows: $50,000 in the year 1969, $75,000 in the year 1970, $100,000 in the year 1971, $125,000 in each of the years 1972 and 1973, $200,000 in each of the years 1974 through 1976, $225,000 in each of the years 1977 through 1979, and $250,000 in each of the years 1980 through 1988. 4. That said bonds maturing prior to the year 1980 shall not be subject to redemption prior to maturity. Bonds maturing in the years 1980 through 1988 shall be subject to redemption prior to maturity at the option of the County of Oakland in inverse numerical order, on any one or more interest payment dates on and after July 1, 1979, at the par value thereof and accrued interest plus a premium on each bond in accordance with the following schedule: -10- $100 if called to be redeemed on or after July 1, 1979, but prior to July 1, 1981 $75 if called to be redeemed on or after July 1, 1981, but prior to July 1, 1983 $50 if called to be redeemed on or after July 1, 1983, but prior to July 1, 1985 $25 if called to be redeemed on or after July 1, 1985. Notice of redemption shall be given to holders of bonds called to be redeemed by publication of such notice not less than thirty (30) days prior to the date fixed for redemption at least once in a newspaper or publication circulated in the City of Detroit, Michigan, which car- ries, as a part of its regular service, notices of the sale of munici- pal bonds: Provided, that where any bond shall be registered, then notice of the redemption thereof shall also be given by registered United States mail addressed to the registered holder thereof at the address shown on the registration books of the County Treasurer, which notice shall be mailed not less than thirty (30) days prior to the date fixed for redemption. Bonds so called for redemption shall not bear in- terest after the date fixed for redemption provided funds are on hand with the paying agent to redeem the same. 5. That the said bonds shall be registrable as to principal only in the names of the holders on the books of the County Treasurer of said county, which registration shall be noted in the registration form printed on the backs of said bonds, and thereafter while such regis- tration remains in effect no transfer shall be valid unless made on said books and likewise noted in said registration form. Transferability by delivery may be restored by registration to the bearer. Negotiability of the interest coupons shall not be affected by registration of the bonds. -11-- 6. That the Chairman of the Board of Supervisors and the County Clerk of said County of Oakland are hereby authorized and directed to exe- cute said bonds for and on behalf of said county by signing the same and affixing the seal of the county thereto, and to execute the interest cou- pons to be attached to said bonds by causing to be affixed thereto their facsimile signatures; and upon execution of said bonds and attached cou- pons, the same shall be delivered to the Treasurer of said county, who is hereby authorized and directed to deliver the said bonds and attached cou- pons to the purchaser thereof upon receipt of the purchase price therefor. 7. That the principal of and the interest on said bonds shall be payable primarily from revenues derived from the state-collected taxes returned from the Motor Vehicle Highway Fund to the Board of County Road Commissioners for the County of Oakland for highway purposes pursuant to said Act No 51, and there are hereby irrevocably appropriated and pledged from the moneys received and to be received from said Fund by said Board, amounts sufficient to pay such principal and interest as and when due. Such pledge is, however, subject to the priority of pledges of such funds heretofore made for payment of the County's contractual obligations to the State, as hereinbefore set forth, pursuant to Act No. 205, Michigan Public Acts of 1941, as amended, and is of equal standing with pledges of such funds heretofore or hereafter made, within statutory limits, for payment of bonds, notes or contractual obligations. The Board of County Road Commissioners of said county is hereby required and directed, while any of the principal or interest on the bonds herein authorized remains outstanding and unpaid, to direct the County Treasurer to set aside in a separate fund (to be known as the "1968 Motor Vehicle Highway Bond Redemption Fund") from the moneys so received from the Motor Vehicle Highway Fund from time to time, amounts sufficient to pay the princi- pal and interest next maturing on said bonds, and the County Treasurer shall set aside such amounts in said fund from moneys so received -12- for county primary road purposes and from moneys so received for county local road purposes, respectively, in the same proportions as the bond proceeds are to be used for such purposes. 8. That, as additional security for the payment of said bonds herein authorized to be issued, and as permitted by Section 18c of said Act No. 51, this Board of Supervisors hereby covenants and agrees on be- half of said County of Oakland that, in the event that the funds herein- before pledged for the payment of said bonds are insufficient to pay the principal and interest thereon as the same become due, the County Treasurer of said county shall advance sufficient moneys from the general funds of the county to make up the deficiency, and reimbursement shall be made from the first subsequent revenues received by the Board of County Road Commissioners from the Motor Vehicle Highway Fund not pledged or required to be set aside and used for the payment of the principal and interest on bonds, notes or other evidences of indebtedness. 9. That any accrued interest and/or premium received on the sale and delivery of said bonds shall be deposited in the "1968 Motor Vehicle Highway Bond Redemption Fund" and the proceeds of the sale of said bonds shall be set aside and deposited by the County Treasurer into a special fund for the construction of the above-specified primary and local road improvements, which fund shall be maintained as a separate deposit in a designated county depository, and the moneys so set aside and deposited shall be paid out only on order of the Board of County Road Commissioners. The accounts of said Board shall be kept so as to show separately that part of the bond proceeds which is allocated for primary road improvements and that part which is allocated for local road im- provements and so as to show that such proceeds are expended only for the purposes for which so allocated. 10. That the said bonds and attached coupons shall be in sub- stantially the following form: -13- UNITED STATES OF AMERICA STATE OF MICHIGAN COUNTY OF OAKLAND Number $5,000 MOTOR VEHICLE HIGHWAY FUND BOND OF 1968 KNOW ALL MEN BY THESE PRESENTS, that the County of Oakland, State of Michigan, hereby acknowledges itself indebted and for value received, promises to pay to the bearer hereof (or, if this bond be registered, to the registered holder hereof), the sum of FIVE THOUSAND DOLLARS on the first day of July, A.D., 19 , together with interest thereon from the date hereof until paid, at the rate of per centum per annum, said interest being payable on January 1, 1969, and thereafter semi-annually on the first days of July and January in each year. Both principal and interest hereof are payable in lawful money of the United States of America at , in the City of , , up- on presentation and surrender of this bond and the coupons hereto at- tached as they severally mature. This bond is one of a series of bonds of like date and tenor except as to maturity , numbered consecutively in the direct order of their maturity from 1 to 800, both inclusive, aggregating the principal sum of Four Million Dollars ($4,000,000), issued under and pursuant to and in full conformity with the Constitution and Statutes of the State of Michigan, and especially Act No. 51, Michigan Public Acts of 1951, as amended, and pursuant to a resolution adopted by the Board of Supervisors of said county on , 1968, for the purpose of defraying a part of the cost of constructing and reconstructing cer- tain highways in the primary and local road systems of the county. Bonds of this series maturing prior to the year 1980 are not subject to redemption prior to maturity. Bonds maturing in the years 1980 to 1988, both inclusive, are subject to redemption at the option of the county, in inverse numerical order, on any one or more interest payment dates on and after July 1, 1979, at the par value thereof and accrued interest, plus a premium on each bond in accordance with the following schedule: $100 if called to be redeemed on or after July 1, 1979, but prior to July 1, 1981 $75 if called to be redeemed on or after July 1, 1981, but prior to July 1, 1983 $50 if called to be redeemed on or after July 1, 1983, but prior to July 1, 1985 - $25 if called to be redeemed, on or after July 1, 1985. -14- Notice of redemption shall be given to the holders of bonds called for redemption by publication of such notice not less than thirty (30) days prior to the date fixed for redemption, at least once in a newspaper or publication circulated in the City of Detroit, Michigan, which car- ries as a part of its regular service, notices of the sale of municipal bonds: Provided, that where any bond shall be registered, then notice of the redemption thereof shall also be given by registered mail ad- dressed to the registered holder thereof at the address shown on the re- gistration books of the County Treasurer of said county, which notice shall be mailed not less than thirty (30) days prior to the date fixed for redetption. Bonds so called for redemption shall not bear interest after the date fixed for redemption, provided funds are on hand with the paying agent to redeem the same. The principal of and interest on the bonds of this series are payable primarily from funds received and to be received by the Board of County Road Commissioners of said county from the Motor Vehicle Highway Fund of the State of Michigan pursuant to said Act No. 51, and the Board of Supervisors of said county, by its above-mentioned resolution, has irrevocably appropriated and pledged, and there are hereby pledged, from the moneys so received and to be received, an amount sufficient to pay such principal and interest when due. The foregoing pledge is, however, subject to the priority of the pledges of such moneys heretofore made by said county by contracts with the Michigan State Highway Commissioner . dated December 21, 1954, and March 7, 1957, pursuant to Act No. 205, Michigan Public Acts of 1941, as amended, for payment of contributions to the State for the purpose of financing the county's portion of the cost of constructing limited-access highways, and such foregoing pledge is of equal standing and on a parity with other pledges of such moneys hereto- fore made, or which may hereafter be made, for payment of the principal of and the interest on bonds, notes or contractual obligations of the county or its Board of County Road Commissioners. As additional and secondary security for the payment of the bonds of this series and the interest thereon, the county covenants and agrees that, in the event that the funds pledged for the payment thereof are at any time insufficient to pay such principal and interest as the same become due, the County Treasurer of said county shall, as provided in said resolution of the Board of Supervisors, advance sufficient moneys from the general funds of the county to make up the deficiency. This bond may be registered as to principal only in the name of the holder on the books of the County Treasurer of said county, and such registration noted on the back hereof by said County Treasurer, and there- after while such registration remains in effect, no transfer shall be valid unless made upon the said books and likewise noted on the back hereof. Transferability by delivery may be restored by registration to the bearer. Negotiability of the interest coupons shall not be affected by registration. It is hereby certified, recited and declared that all acts, con- ditions and things required to exist, happen and be performed precedent to and in the issuance of the bends of this series, existed, have happened and have been performed in due time, form and manner as required by the -15- Constitution and Statutes of the State of Michigan, and that the total indebtedness of said county, including this series of bonds, does not exceed any constitutional or statutory limitation. IN WITNESS WHEREOF, the County of Oakland, State of Michigan, by its Board of Supervisors, has caused this bond to be signed in its name by the Chairman of said Board of Supervisors and the County Clerk of said county, and its corporate seal to be affixed hereto, and has caused the annexed interest coupons to be executed with the facsimile signatures of said Chairman of the Board of Supervisors and said County Clerk, all as of the first day of June, A. D., 1968. COUNTY OF OAKLAND By By County Clerk Chairman, Board of Supervisors (COUPON) Number On the first day of A.D., 19 , the County of Oakland, State of Michigan, will pay to the bearer hereof the sum shown hereon, in lawful money of the United States of America, at the , in the City of , same being the interest •due on that day on its Motor Vehicle Highway Fund Bond of 1968, dated June 1, 1968, No. County Clerk Chairman, Board of Supervisors REGISTRY Signature of County In Whose Name Date of Treasurer of Oakland Registered Registration County, Michigan. -16- 11. That the said bonds shall not be issued until the Municipal Finance Commission of the State of Michigan shall have first issued its order granting permission to so do as provided in Act 202, Michigan Public Acts of 1943, as amended, and the said bonds shall not be advertised for sale until the form of the notice of sale as herein- after set forth is approved by the Municipal Finance Commission. 12. That the Board of County Road Commissioners of said county is hereby authorized and directed for and on behalf of Said county (a) to prepare and submit to the Municipal Finance Commission an application for approval of the issuance of said bonds and the form of notice of sale thereof, (b) upon receiving such approval by the Municipal Finance Commission, to fix a time for receiving sealed proposals for the purchase of said bonds, (c) to publish the notice of sale of said bonds in The Bond Buyer, a publication printed in the English language, pub- lished in the City of New York, and circulated in the State of Michigan,. and which carries as a part of its regular service, notices of the sale of municipal bonds, and also in the Pontiac Press, a newspaper published in the City of Pontiac, Michigan, and of general circulation in said county, each such publication to be made at least seven (7) days prior to the date fixed for receiving sealed prbposals for the purchase of said bonds, and (d) at the time fixed for receiving such proposals, to receive and tabulate all bids submitted, and to submit the same with the recom- mendations of said Board to the Board of Supervisors for action thereon. 13. That the notice of the sale of said bonds to be so pub- lished shall be in substantially the following form: -17- OFFICIAL NOTICE OF SALE $4,000,000 COUNTY OF OAKLAND STATE OF MICHIGAN MOTOR VEHICLE HIGHWAY FUND BONDS OF 1968 Sealed bids for the purchase of "Motor Vehicle Highway Fund Bonds of 1968" to be issued by the County of Oakland, State of Michi- gan, of the par value of $4,000,000, will be received by the undersigned, at his office in the Oakland County Road Commission building, 2420 Pontiac Lake Road, Pontiac, Michigan, until o'clock .M., Eastern Standard Time, on , the day of 1968, at which time and place said bids will be publicly opened and read, and will be presented to the Oakland County Board of Supervisors for ac- tion at its meeting to be held on the same day. Said bonds will be dated June 1, 1968, will be registrable as to principal only, will be numbered consecutively in the direct order of their maturities from 1 to 800, both inclusive, will be ocupon bonds in the denomination of $5,000 each, and will bear interest from their date at a rate or rates not exceeding % per annum, payable on January 1, 1969, and thereafter semi-annually on July 1 and January 1. Each bid shall state the annual interest rate or rates upon which it is submitted, expressed in multiples of 1/8 or 1/20 of 1% or any combination thereof. The interest on any one bond shall be at one rate only, shall be repre- sented by one coupon only for each coupon period, and all bonds maturing in the same year shall carry the same rate of interest. Accrued interest to date of delivery of such bonds must be paid by the purchaser at the time of delivery. Said bonds will mature serially on July 1 in years and princi- pal amounts as follows: $50,000 in the year 1969, $75,000 in the year 1970, $100,000 in the year 1971, $125,000 in each of the years 1972 and 1973, $200,000 in each of the years 1974 through 1976, $225,000 in each of the years 1977 through 1979, and $250,000 in each of the years 1980 through 1988. Bonds maturing in the years 1980 through 1988 shall be subject to redemption prior to maturity at the option of the County, in inverse numerical order, on any one or more interest payment dates on and after July 1, 1979, at the par value thereof and accrued interest, plus a premium on each bona in accordance with the following schedule: $100 if called to be redeemed on or after July 1, 1979 but prior to July 1, 1981 $75 if called to be redeemed on or after July 1, 1981 but prior to July 1, 1983 $50 if called to be redeemed on or after July I, 1983 but prior to July 1, 1985 $25 if called to be redeemed on or after Julv I, 198.5 Notice of redemption shall be given to the holders of the bonds to be redeemed, by publication of such notice not less than thirty (30) days prior to the date fixed for redemption, at least once in a newspaper or publication circulated in the City of Detroit, Michigan, which carries as a part of its regular service, notices of the sale of municipal bonds, or if any of said bonds shall be registered, notice of the redemption thereof shall also be sent by registered mail to the registered holders, at least thirty (30) days prior to the date fixed for redemption. Both principal and interest will be payable at such bank or trust company qualified to serve as paying agent under the laws of the Federal Government or the State of Michigan, as shall be designated by the original purchaser of the bonds. A co-paying agent or agents so qualified may also be so designated. The paying agent or agents shall be subject to county approval. The bonds are to be issued under Act No. 51, Michigan Public Acts of 1951, as amended (especially Section 18c thereof), for the pur- pose of defraying a part of the cost of constructing and reconstructing highways in the primary and local road systems of the county. The principal and interest on said bonds are payable primarily from Motor Vehicle Highway Funds derived from state-collected taxes to be returned to the Board of County P.,77,ad Commissioners of said county pursuant to said Act and an irrevocable appropriation and pledge of an amount thereof sufficient to pay such principal and interest has been made by the County Board of Supervisors. Such appropriation and pledge is sub- ject, however, to the priority of pledges heretofore made by contract with the State Highway Commissioner for payment of aggregate amounts not exceeding $105,000 per year to finance construction of the Farmington- Brighton Expressway and the Northwestern Expressway. Pledges of equal priority with the pledge for the bonds herein offered for sale have been made for payment of principal and interest on outstanding bonds and notes heretofore issued by the county, and such pledges of equal priority may be made for payment of future County bonds, notes or contractual obli- gations, within limitations prescribed by said Act No. 51. In the event that moneys pledged are not sufficient to pay principal and interest on the bonds herein offered for sale, the County Treasurer is obligated, under resolution of the Board of Supervisors, to advance the amount of the deficiency from general funds of the county. • For the purpose of awarding the bonds, the interest cost of each bid will be computed by determining, at the rate or rates speci- fied therein, the total dollar value of all interest on the bonds from (here insert the first day of the month next following the date of receiving bids or the date of the bonds, which- ever is later) to their respective maturities and deducting therefrom - any premium- The bonds will be awarded to the bidder whose bid on the above computation produces the lowest interest cost to the county. No proposal for the iverchase of less than all of the bonds or at a price less than their par ,/alue will be considered. -19- A certified or cashier's check in the amount of $80,000, 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 be accepted and the bidder fails to take up and pay for the bonds. No interest shall be allowed on the good faith checks and checks of the unsuccessful bidders will be promptly returned to each bidder's representative or by regis- tered mail. Bids shall be conditioned upon the unqualified opinion of Dickinson, Wright, McKean & Cudlip, attorneys, Detroit, Michigan, approving the legality of the bonds. The cost of said legal opinion and of the printing of the bonds (with the legal opinion printed on the back thereof) will be paid by the county. There will also be furnished the usual closing documents, including a non-litigation certificate, dated as of the date of delivery of the bonds. Bonds will be delivered at Detroit, Michigan, New York, N.Y., or Chicago, Illinois, at county expense. Payment shall be made in Federal Re- serve funds if so requested by the county. The right is reserved to reject any or all bids. Envelopes containing the bids should be plainly marked "Proposal for Bonds". Secretary, Board of County Road Commissioners, Oakland County, Michigan. Approved: , 19 STATE OF MICHGIAN MUNICIPAL FINANCE COMMISSION 14. That all resolutions and parts of resolutions, insofar as the same may be in conflict herewith, are hereby rescinded. ROADS COMMITTEE Vincent J. McAvoy, Chairman John Dewan, Curtis H. Hall C- Milton Nelson, Ralph C. Schwartz Lee B. Valentine ADOPTED. YEAS: Bachert, Bailey, Beecher, Brennan, Brewer, Bryant, Case, Charter's, Cline, Dewan, Doherty, Duncan, Edward, Edwards, Eldridge, Forbes, Fouts, Frid, Fusilier, Gabler, Geralds, Grisdale, Hall, Hamlin, Hudson, Hursfall, Ingraham, Kramer, Lahti, Lessiter, Long, Mainland, Maly, Mastin, MoAvoy, McDonnell, Miller, Mitchell, Nelson, OtDonoghue, Oldenburg, Beasley, Reid, Schiffer, Schwartz, Simson, Slavens, Solberg, Tapp, Tinsman, Valentine, Wahl, Walker, Wilcox, Woods. (55) NAYS: Taylor. (1) 14. That all resolutions and parts of resolutions, in- sofar as the same may be in conflict herewith, are hereby rescinded. ADOPTED: Yeas - Bachert, Bailey, Beecher, Brennan, Brewer, Bryant, Case, Charteris, Cline, Dewan, Doherty, Duncan, Edward, Edwards, Eldridge, Forbes, Fouts, Frid; Fusilier, Gabler, Geralds Grisdale, Hall, Haffilin, Hudson, Hursfall, Ingraham, Kramer, iahti, Iessiter, Long, Mainland, Maly,Mastin, MeAvoy, McDonnell, Miller, Mitchell, Nelson, OIDonoghue, Oldenburg, Peasley) Reid, Schiffer, Schwartz, Simson, Slavens, Solberg, Tapp,jinsman, Valentine, Wahl, Walker, Wilcox, Woods. (55) Nays - Taylor.(1) STATE OF MICHIGAN) SS COUNTY OF OAKLAND) I, John D. Murphy, Clerk of the County of Oakland, State of Michigan, do hereby certify that I have compared the annexed copy of proceedings of the Oakland County Board of Supervisors taken March 13, 1968 , in re: at a regular meeting held on Bond Issue for County Primary and Local Roads 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 WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of said County at Pontiac, Michigan, this 13th day of March ,19 68. John D. Murphy County Clerk By Deputy Clerk