HomeMy WebLinkAboutResolutions - 1968.12.17 - 19020DANIEL W. BARRY
CommisLioger
JAMES R. NICHOLS
Chief Deputy Commissioner
ORTON RELIEF DRAINS
D148 :es
OAKLAND COUNTY DRAIN COMMISSIONER
550 SOUTH TELEGRAPH ROAD
PONTIAC, MICHIGAN 48053
FEDERAL 8-4585
December 2, 1968
JAMES E. PEMBERTON
Deputy and Chief Engineer
HOWARD V. RUMMELL
Accounting Supervisor
Honorable Supervisors,
Oakland County, Michigan
Reference: Horton Relief Drains
Mr. Chairman, Ladies and Gentlemen:
The Drainage Board for the Horton Relief Drains at a meeting_ held on the
8th day of November, 1968 adopted a resolution authorizing the issuance of Drain
Bonds for the said Horton Relief Drains in the aggregate amount of $310,000.00
pursuant to the provisions of the Drain Code of 1966 0 as amended, and other
applicable law. In connection herewith there is submitted to you a form of pro-
posed resolution for adoption by the Board of Supervisors for the purpose of
pledging the full faith and credit of the County of Oakland as secondary security
for the prompt payment of said Drain Bonds.
The said Drain Bonds are issued in anticipation of the payment by the City
of Southfield of drain assessments at large against the said corporation in
amount at least equal to the amount of said bonds. The full faith and credit of
said public corporation is pledged, by law, to the prompt payment of said assess-
ments and the interest thereon, when due. The law further authorizes and obligates
the said public corporations to levy a tax in an amount sufficient to make said
payments (unless other funds are on hand available for said purpose) which tax may
be levied without limitation as to rate or amount. The County is entitled by law
to recover from said public corporation the amount advanced from County funds at
any time in fulfillment of the County's secondary pledge of its full faith and
credit.
It is respectfully requested that the enclosed resolution be adopted for
the reasons set forth in the preamble thereto and because the pledge of the
County's full faith and credit will result in a material saving in bond interest
to be paid.
Yours very truly,
At a meeting of the Board of Supervisors of the
County of Oakland, State of Michigan, held in the Supervisors
Auditorium in the City of Pontiac, Michigan, on the
day of , 1968, at o'clock A.M.,
astern Standard Time, which meeting was part of the regular
session of said Board.
PRESENT:
ABSENT:
Misc. 4967
The following resolution was offered by Mr. Valentine
and seconded by Mr. Peasley
WHEREAS, proceedings have been taken by the Statutory °
Drainage Board for the location, establishment and construction
of the Horton Relief Drains under the provisions of Act No. 40
of the Michigan Public Acts of 1956, as amended, pursuant to a
petition filed by the city of Southfield on February 27, 1968;
and
WHEREAS, the Drainage Board for said Horton Relief
Drains by resolution on November 8, 1968, authorized and provided
. for the issuance of bonds in the aggregate principal amount of
$310,000 in anticipation of the collection of an equal amount
of unpaid special assessments against the City of Southfield ps
its share of the cost of said drain, said special assessments
having been theretofore duly confirmed by said Drainage Board;
and
WHEREAS, said bonds are to be designated Drain Bonds,
are to be dated January 1, 1969, will bear interest at a rate
not exceeding 5-1/2%, and will not be subject to prior redemp-
tion; and
WHEREAS, Section 474 of said Act No. 40, as amended,
provides in part as follows:
"If any public corporation fails or neglects
to account to the county treasurer for the
amount of any installment and interest, then
the county treasurer shall advance the amount
thereof from county funds in the following
_cases:
-2-
"(1) If any bonds or other evidence of indebted-
ness have been issued to finance a project, the
:petition for which was filed after June 6, 1961,
in anticipation of the collection of the install-
ment and interest pursuant to the provisions of
this chapter and the board of supervisors has
previously acted, by a resolution adopted by a
2/3 vote of its members elect, to pledge the full
faith and credit of the county for the prompt
payment of the principal of and interest on the
bonds or evidences of indebtedness, or
"(2) If any bonds or other evidence of indebted-
ness.have been issued to finance a project, the
petition for which was filed prior to June 6, 1961,
in anticipation of the collection of the install-
thent and interest pursuant to the provisions . of
this chapter."
; and
WHEREAS, said Drainage Board deems it advisable and
necessary to obtain from this Board a resolution consenting
to the pledge of the full faith and credit of the county on
the aforesaid bonds; and
WHEREAS, the said drainage project is immediately:
necessary to protect and to preserve the public health and,
therefore, it is in the best interest of the County of Oakland
that said bonds be. so sold.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
SUPERVISORS OF THE COUNTY OF OAKLAND, MICHIGAN:
1. That pursuant to the authorization provided in
Section 474,..of Chapter 20 of the Drain Code, the Beard of Super-
visors of the County of Oakland does hereby irrevocably pledge
the full faith and credit of the County of Oakland and does
•agree that in the event the City of Southfield shall fail or
neglect to account to the County Treasurer of the County of
-3-
Oakland for the amount of any installment and interest for
the Horton Relief Drains, when due, then the amount thereof
shall be immediately advanced from County funds, and the County
Treasurer is directed to immediately make such advancement to
the extent necessary.
2. That in the event that, pursuant to said pledge
of full faith and credit, the County of Oakland advances out
of County funds, all or any part of said installment and inter- °
est, it shall be the duty of the County Treasurer, for and on
behalf of the County of Oakland, to take all actions and pro-
ceedings and pursue all remedies permitted or authorized by
law for the reimbursement of such sums so paid.
3. That all resolutions and parts of resolutions
insofar as the same may be in conflict with the provisions of
this resolution be and the same hereby are rescinded.
ADOPTED: Yeas - Bachert, Bawden, Beecher, Birnkrant, Brennan, Brewer, Bryant,
Case, Charteris, Clarkson, Cline, Doherty, Duncan, Edward,
Edwards, Eldridge, Famularo, Fouts, Enid, Gabler, Grisdale,
Hall, Hamlin, Horton, Holyoke, Hursfall, Inwood, Johnson,
E. Kephart, J. Kephart, Kramer, Lahti, Lessiter, Levinson,
Linley; Long, Mainland, Maly, Mastin, McDonnell, McNamee,
Melchert, Mitchell, O'Donoghue, Oldenburg, Paholak, Peasley,
Perinoff, Peterson, Powers, Reid, Remer, Rhinevault, Rusher,
Schiffer, Schwartz, Simson, Slavens, Solberg, Tapp, Taucher,
Taylor, Tinsman, Valentine, VanNatta, Wahl, Walker, Webber,
Wilcox, Wilmot, Woods. (71)
Nays - None. (0)
Dated: , 1968
STATE OF MICHIGAN )
) SS:
COUNTY OF OAKLAND )
I, the undersigned, the duly qualified.and acting
County Clerk and Clerk of the Board of Supervisors Of the
County of Oakland, do hereby certify that the foregoing is a
true and complete copy of a resolution adopted by a 2/3rds
vote of its members elect at the meeting ,(which was a part
of the regular September session) of the Board of Super-
17th • visors of the County of Oakland held on the day of
• December
office.
Lynn D. Allen
County Clerk
Deputy CTerk
December 17
, 1968, the original of which is on file in my
By
MINUTES OF THE MEETING OF THE DRAINAGE
BOARD FOR THE HORTON RELIEF DRAINS
A meeting of the Drainage Board for the Horton Relief
Drains was held in the office of the Oakland County Drain Commis-
sioner, 550 South Telegraph Road, in the City of Pontiac, Oakland
County, Michigan, on the day of , 1968,
at o'clock A.M., Eastern - Time.
The meeting was called to order by the Chairman.
PRESENT:
ABSENT:
ALSO
PRESENT:
The minutes of the October 9, 1968 meeting of the
Board were presented, copies having been previously furnished
each member of the Board. It was moved by
and seconded by that the said minutes be
approved as presented.
ADOPTED: Yeas -
Nays -
The Chairman presented a report from Hubbell, Roth &
Clark, Inc., recommending acceptance of the low bid for construc-
tion of the Horton Relief Drains project. The following resolu-
tion was offered by and seconded by
RESOLVED, that the contract to -construct the Horton
Relief Drains be awarded to Sterling Garrett Const., the lowest
bidder, in the amount of $238,313.95, and that the Chairman of
this Drainage Board be and he hereby is authorized to execute
the construction contract with said company, subject to the sale
of bonds, and subject to the furnishing of the proper certifi-
cates of insurance, construction and performance bonds and other
information required by the terms of said contract and the bid
specifications.
ADOPTED: Yeas -
Nays -
The Chairman presented to the Drainage Board a revised
estimate of the cost of the Horton Relief Drains in the aggregate
amount of $310,000, in which the following items and amounts are
set forth, to wit:
-2-
HORTON RELIEF DRAIN
1. Construction $ 238,313.95
2, Engineer's Design Fee
Resident Engineer's Expense
$16,562.82
11800.18 18,363.00
3. Inspection Incl, Layout 6,400.00
4. Legal & Financial
a. Legal $3,050.00
b. Financial 1,280.00 4,330.00
5, Administrative Expense to date 195.05
6. Publishing Notices
a. The Daily Tribune
b. The Southfield News
c. The Southfield Sun
d. Michigan Contractor & Builder
e. Michigan Investor
7. Rights-of-Way Incl., Cost of Negotiator
8. Capitalized Interest (1 yr. @ 6% x $310,000.00)
9. Contingencies (7.8403%)
660.00
600.00
18,600.00
22.538.00
$ 150.00
100.00
100.00
80.00
230.00
TOTAL ESTIMATED COST $ 310,000.00
Dated: October 28, 1968-
The following resolution was offered by
and seconded by
RESOLVED, that the revised estimate of cost of the
Horton Relief Drains in the aggregate amount of $310,000 as
presented to this Drainage Board be and the same hereby is
approved and adopted -and ordered filed with the Chairman of
this Drainage Board.
ADOPTED: Yeas -
Nays -
The following resolution was offered by
and seconded by
RESOLVED, that Kenower, Mac Arthur & Co. of Detroit,
Michigan, be and they hereby are employed as financial consultants
to the Drainage Board.
ADOPTED: Yeas -
Nays -
The Chairman reported on the conferences which had
been held with the City of Southfield and Kenower, MacArthur &
Co., the financial consultants for the Drainage Board, con-
cerning the computation and preparation of an assessment roll
to assess the costs of the Horton Relief Drains project against
the said city, in accordance with the apportionments as adopted
and confirmed by the Drainage Board on October 9, 1968. The
suggestions which had been made on behalf of the said city and
the payment schedule which had been agreed upon were discussed.
The following resolution was offered by
and seconded by
1970 - $15,000
1971 - 15,000
1972 - 15,000
1973 - 15,000
1974 - 15,000
1975 - 15,000
1976 - 15,000
1977 - 15,000
1978 - 15,000
1979 - 15,000
1980 - $15,000
1981 - 15,000
1982 - 15,000
1983 - 15,000
1984 - 15,000
1985 - 15,000
1986 - 15,000
1987 - 15,000
1988 - 20,000
1989 - 20,000
WHEREAS, the Drainage Board for the Horton Relief
Drains has fixed and confirmed apportionments of the cost of
said drain as set forth in the resolution of the Board adopted
on October 9, 1968, and in the final order of apportionment of
the cost of said drain filed in the office of the Chairman of
this Board on October 9, 1968.
THEREFORE, BE IT RESOLVED BY THE DRAINAGE BOARD FOR
THE HORTON RELIEF DRAINS, as follows:
1. That the Chairman of said Drainage Board. is
hereby directed to prepare a special assessment roll assessing
the sum of $310,000 (which is the estimated cost of the Horton
Relief Drains) against the City of Southfield in accordance
with the said apportionments heretofore confirmed, and to
divide the total amount assessed against the city in 20 annual
installments, the first of which shall become due and payable
on April 1, 1970 and one additional installment shall become
due and payable on the first day of April in each year there-
after. That unpaid installments shall bear interest at the
rate of 6% per annum from such date as shall be hereafter
established.
2. That the aggregate of the installments of principal
payable on April 1st of each year by the city shall be as follows:
-4-
3. That the said special assessment roll shall be
prepared in accordance with the provisions of Chapter 20 of
Act No. 40 of the Michigan Public Acts of 1956, as amended,
and that when the said special assessment roll shall have been
prepared it shall be presented to this Drainage Board for
approval.
ADOPTED: Yeas
Nays -
The Chairman presented to the Drainage Board Special
Assessment Roll No. 1 for the Horton Relief Drains which special
assessment roll contains a statement signed by the Chairman and
the other members of this Board to the effect that it was pre-
pared in accordance with the directions of this Board and the
statutory provisions applicable thereto.
The following resolution was offered by
and seconded by
BE IT RESOLVED BY THE DRAINAGE BOARD FOR THE HORTON
RELIEF DRAINS, as follows:
1. That Special Assessment Roll No. 1 for the Horton
Relief Drains to be constructed pursuant to a petition filed
with the Oakland County Drain Commissioner on February 27, 1968,
upon which special assessment roll are spread assessments against
the City of Southfield aggregating the principal sum of $310,000,
be and the same is hereby approved and ordered to be filed with
the Chairman.
2. That the Chairman shall execute the statement
affixed to said roll setting forth the date of such approval.
.3. That the several annual installments of the total
assessment against such public corporation as set forth on said
special assessment roll, shall become due on April 1 of each
year as indicated thereon, and that all installments from time
to time unpaid shall bear interest from January 1, 1969 until
paid, at the rate of.6 96 per annum, payable annually on the due
• date in each year of each installment: Provided, that if •at
any time the amount of the assessment installments and the in-
terest on unpaid installments collected by the Drainage Board
and on hand shall exceed the amount of principal and interest
which said Board is required to pay, pursuant to the schedule of
maturities, upon the bonds to be issued in anticipation of the
payment of said special assessments, then any excess in the amount
of assessment installments and interest so collected and on hand
(after allowance for administrative expenses in connection with
said bonds, and after allowance for any excess in assessment
installments in one or more years required to be accumulated to
meet bond maturities in a subsequent year or years) shall be
credited to the city in accordance with the several amounts of
assessment installments . and interest paid by it to such time,
which credit shall be applied first to reduce the amount of the
interest becoming due on the next assessment installment payment
date and second to reduce the amount of the next such assessment
installment.
. 4. That the total amount assessed against the city
may, be paid on or before January 1, 1969, without interest. The
city may pay in advance of maturity all or any part of an annual
installment due from it by Surrendering to the county, bonds
issued in anticipation of the said special assessments, of a
like principal amount maturing in the same calendar year as the
installment, with all future due interest coupons attached
thereto. Accrued interest upon the amount so paid upon any
installment and the accrued interest upon the bonds surrendered,
shall be adjusted to the date of surrender and any difference
shall be paid in cash. All bonds and coupons so surrendered
shall be cancelled.
That the Chairman of the Drainage Board shall
certify within ten (10) days hereafter to the City of South-
field the amount of the total assessment against it, the amount
of the various installments thereof, the due date of each
installment and the rate of interest upon the installments from
time to time unpaid, and that said Chairman shall also each year
as provided by law notify each such city of the amount of the
installment and interest next becoming due.
° ADOPTED: Yeas -
Nays -
The following resolution was offered by
and seconded by
RESOLVED, that the Drainage Board for the Horton
Relief Drains hereby adopts a seal for the drainage district
which shall be circular in form and upon.it shall appear the
words "Horton Relief Drains Drainage District, Oakland County,
Michigan, Corporate Seal".
ADOPTED: Yeas -
Nays -
-7-
The following resolution was offered by
and seconded by .
WHEREAS, pursuant to a petition filed with the Oakland
County Drain Commissioner on February 27, 1968, proceedings have
heretofore been taken under the provisions of Chapter 20 of Act
No. 40 of the Michigan Public Acts of 1956, as amended, for the
location, establishment and construction of the Horton Relief
,Drains in the County of Oakland, State of Michigan, at an
estimated cost of $310,000,. which amount has been assessed in
accordance with the apportionments confirmed by the Drainage
Board for said.drain on October 9, 1968; and
WHEREAS, the Final Order of Apportionment was filed
in the office of the Chairman of the Drainage Board on the 9th
day of October, 1968; and
WHEREAS, in accordance with said apportionments a
special assessment roll designated "Special Assessment Roll No.
1 for Horton Relief Drains" was approved by said Drainage Board
on this date upon which special assessment roll the said sum of
$310,000 was assessed; and
WHEREAS, the amount assessed on said roll to the City
of Southfield was divided into 20 installments, one of which
installments will become due and payable on April 1 in each year
beginning with the year 1970, with interest upon all unpaid
installments from January 1, 1969, at the rate of 6% per annum,
payable on the due date of each installment in each year with
the following proviso:
Provided, that if at any time the amount of
the assessment installments and the interest on un-
paid installments collected by the Drainage Board
-8-
Installment
Due April 1
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
TOTAL
and on hand shall exceed the amount of principal .
and interest which said Board is required to pay,
Pursuant to the schedule of maturities, upon the
bonds to be issued in anticipation of the payment
of said special assessments, then any excess in
the amount of assessment installments and interest
so collected and on hand (after allowance for ad-
ministrative expenses in connection with said bonds,
and after allowance for any excess in assessment
installments in one or more years required to be
accumulated to meet bond maturities in a subsequent
year or years) shall be credited to the city in
accordance with the several amounts of assessment
installments and interest paid by it to such time,
which credit shall be applied first to reduce the
amount of the interest becoming due on the next
assessment installment payment date and second to
reduce the amount of the next such assessment in-
stallment
• and
WHEREAS., the annual installments payable on the assess-
ments against the City of Southfield are as follows, to wit:
City of
Southfield
$ 15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
15,000
20,000
20,000
$310,000
THEREFORE, BE IT RESOLVED BY THE DRAINAGE BOARD FOR
THE HORTON RELIEF DRAINS, as follows:
-9-
1970 - $15,000
1971 - 15,000
1972 - 15,000
1973 - 15,000
1974 - 15,000
1975 - 15,000
1976 - 15,000
1977 - 15,000
1978 - 15,000
1979 - 15,000
1980 - $15,000
1981 - 15,000
1982 - 15,000
1983 - 15,000
1984 - 15,000
1985 - 15,000
1986 - 15,000
1987 - 15,000
1988 - 20,000
1989 - 20,000
1.. That the said drain project is necessary for the
public health and in order to finance the cost thereof it is
necessary to issue bonds as hereinafter provided.
2. That the bonds of the Horton Relief Drains Drainage
District be issued in the aggregate principal sum of $310,000
in anticipation of the collection of an equal amount of special
assessments assessed on Special Assessment Roll No. 1 for the
Horton Relief Drains, said bonds to be dated January 1, 1969; to
be coupon bonds all in the denomination of $5,000 each; to bear
interest at a rate or rates to be hereafter determined not in
excess of 5-1/2% per annum payable November 1, 1969, and semi-
annually thereafter on the first days of May and November in -
each year; to be numbered consecutively in the direct order of
their maturities from 1 upwards; and to mature on the first day
of May in each year as follows:
Year Amount Year Amount
The said bonds shall not be subject to redemption prior to
maturity.
3. That in said bonds the full faith and credit of
the said drainage district shall be pledged for the prompt pay-
ment of the principal thereof and the interest thereon as the
same'become due, and in addition, the full faith and credit of
the County of Oakland will also be pledged therefor, pursuant
to the pravisions of Section 474 of the Drain Code of 1956, as
amended, if two-thirds of the members elect of the Board of
Supervisors of the County of Oakland vote favorably on a resol-
ution pledging the full faith and credit of the county on these
bonds.
4. That the 'principal of said bonds and the interest
thereon shall be payable in lawful money of the United States of
America, at such bank or trust company which qualifies as a pay-
ing agent under Federal or Michigan law and which shall be desig-
nated by the original purchasers of the bonds. Such purchasers
shall have the right to name a similarly .qualified co-paying
agent.
5. , That the Chairman and either one or both of the
remaining members of said Drainage Board are hereby authorized
to execute said bonds for and on behalf of said drainage district
and to affix the seal of said drainage district thereto, and the
Chairman is hereby, authorized to execute the interest coupons
to be attached to said bonds by causing to be affixed thereto
his facsimile signature; and that upon the execution of said
bonds and attached coupons, the same shall be delivered to the
Treasurer of said drainage district who is hereby authorized
and directed to deliver said bonds and attached coupons to the
purchasers thereof upon receipt of the purchase price therefor.
6. That the estimated period of usefulness of the
project for which said bonds are being issued is hereby determined
to be in excess of fifty (50) years.
-11-
.7. That the issuance and sale of said bonds shall
be subject to permission being granted therefor by the Municipal
Finance Commission of the State of Michigan and the Chairman is
hereby authorized and directed to make application to said
Commission for permission to issue and sell said bonds as pro-
vided by the terms of this resolution.
8. That of the proceeds of the sale of said bonds
an amount equivalent to the interest payable on said bonds on
November 1, 1969, at 5-1/2%' per annum is to be used to pay
capitalized interest thereon.
9. That all collections (including both principal
and interest) on said Special Assessment Toll No. 1, shall be
placed in a fund to be known as the "Horton Relief Drains
Special Assessment Roll No. 1 Fund" and shall be used solely
to pay the principal and interest on the bonds authorized
herein. All excess funds, including proceeds of the sale of
bonds, remaining after construction of the Horton Relief Drains
is completed, and all charges in connection with the location,
establishment and construction of said Drain are paid in full,
shall be used by the Drainage Board to pay principal and in-
terest on the bonds authorized herein, when due, or to purchase
said bonds. All bonds so paid or purchased shall be cancelled.
10. That said bonds shall be in substantially the
following form, to wit:
UNITED STATES OF AMERICA
• STATE OF MICHIGAN
. COUNTY OF OAKLAND
HORTON RELIEF DRAINS DRAINAGE DISTRICT
DRAIN BOND
Number
$5,000
KNOW ALL MEN BY THESE PRESENTS, that the Horton Relief
Drains Drainage District, Oakland County, Michigan, hereby acknow-
ledges itself indebted and for value received, promises to pay to
the bearer hereof, the sum of
FIVE THOUSAND DOLLARS
on the first day of May, A.D. 19 , together with interest there-
on from the date hereof until paid, at the rate of
) per centum per annum, payable on
November 1, 1969 and thereafter semi-annually on the first days
of May and November in each year. Both principal and interest
hereof are payable in lawful money of the United States of America
at the , in
the City of , upon presentation
and surrender of this bond and the coupons hereto attached 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 maturities
from 1 through 62, aggregating the principal sum of Three Hundred
- Ten Thousand Dollars ($310,000) issued under and pursuant to and
in full conformity with the Constitution and Statutes of the .
State of Michigan, and particularly Chapter 20 of Act No. 40 of
the Michigan Public Acts of 1956, as amended. The bonds of this
series are issued in anticipation of the collection of an equal
amount of special assessments assessed against the City of South-
field on Special Assessment Roll No. 1 for the Horton Relief
Drains (an intra-county drain), which assessments were made to
defray the cost of locating, establishing and constructing the
said drain and which assessments are a general obligation of
said city. The full faith and credit of said Drainage District
is hereby pledged to the prompt payment of the principal of and
interest on this bond as the same become due and in addition
the full faith and credit of the County of Oakland is pledged
therefor.
-13-
The bonds of this series are not subject to redemption
prior to maturity.
It is hereby certified, recited and declared that all
acts, conditions and things required to exist, happen and be per-
formed 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 the Constitution and Statutes
of the State of Michigan, and that the total indebtedness of said
Drainage District, including this series of bonds, does not ex-
ceed any constitutional or statutory limitation, and to the prompt
payment of this bond.and the interest hereon as the same become
due, the full faith and credit of said Drainage District are here-
- by irrevocably pledged. •
IN WITNESS WHEREOF, the HORTON RELIEF DRAINS DRAINAGE
DISTRICT, Oakland County, Michigan, by its Drainage Board, has
caused this bond to be signed in its name by the Chairman and at
least one other member of said Drainage Board, and its corporate
seal to be affixed hereto, and has caused the annexed interest
coupons to be executed with the facsimile signature of said
Chairman, all as of the 1st day of January, A.D. 1969.
HORTON RELIEF DRAINS DRAINAGE DISTRICT
By
Chairman of the Drainage Board
By
Member of the Drainage Board
By
Member of the Drainage Board
(SEAL)
(COUPON)
Number
On this 1st day of , A.D. 19 ,
the HORTON RELIEF DRAINS DRAINAGE DISTRICT, Oakland County,
Michigan, will pay to the bearer hereof the sum shown hereon,
lawful money of the United States of America, at the
, in the City of
, same being the interest
due on that day on its Drain Bond, dated January 1, 1969,
No
(FACSIMILE)
Chairman
11. That if for any reason the original assessments
shall not be sufficient to pay the principal and interest on
said bonds then the Drainage Board shall make such additional
assessment therefor as may be necessary, apportioned as in the
first instance.
ADOPTED: Yeas -
Nays -
The following resolution was offered by
and seconded by
BE IT RESOLVED, that sealed proposals for the purchase
of $310,000 Drain Bonds to be issued by the Horton Relief Drains
Drainage District, to be dated January 1, 1969, be received up
to such time as shall be later determined by this Drainage Board
and that notice thereof be published in accordance with law in
the Michigan Investor and in the Daily Tribune (Royal Oak), a
newspaper of general circulation in the said Drainage District,
which notice shall be substantially in the following form:
-16--
1970 - $15,000
1971 - 15,000
1972 - 15,000
1973 - 15,000
1974 - 15,000
1975 - 15,000
.1976 - •15,000
1977 - 15,000
1978 - 15,000
1979 - 15,000
1980 - $15,000
1981 - 15,000
1982 - 15,000
1983 - 15,000
1984 - 15,000
1985 - 15,000
1986 - 15,000
1987 - 15,000
1988 - 20,000
1989 - 20,000
OFFICIAL
NOTICE OF SALE
$310,000
HORTON RELIEF DRAINS DRAINAGE DISTRICT
COUNTY OF OAKLAND, STATE OF MICHIGAN
DRAIN BONDS
Sealed bids for the purchase of Drain Bonds to be
issued by the Horton Relief Drains Drainage District in Oakland
County, Michigan, of the par value of $310,000, will be received
by the undersigned at his office, No. 550 South Telegraph Road,
in the City of Pontiac, Michigan, until o'clock .M.,
Eastern Time, on , the
day of , 196 , at which time and place said
bids will be .publicly opened and read.
Said bonds will be dated January 1, 1969, will be
coupon bonds all in the denomination of $5,000 each, will be
numbered consecutively in the direct order of their maturities
from 1 upwards, and will bear interest from their date payable
on November 1, 1969 and thereafter semi-annually on May 1 and
November 1 of each year and will bear interest at a rate or rates
not in excess of 5-1/2% per annum. Each bid shall state the
annual interest rate or rates upon which it is submitted, ex-
pressed in multiples of 1/8th or 1/20th of 1% or both. The in-
terest on all bonds maturing in the same year shall be at one
rate only and shall be evidenced by one coupon only for each
coupon period. No bond shall bear interest at a rate less than
50% of the rate borne by any other bond of this issue. 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 the 1st day of May
in each year as follows:
Year Amount Year Amount
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The bonds will not be Subject to redemption prior to maturity.
Both principal and interest will be payable at such bank or
trust company which qualifies as a paying agent under Federal
or Michigan law and which shall be designated by the original
purchaser of the bonds, who may also designate a similarly
qualified co-paying agent.
The said bonds are to be issued under the provisions
of Chapter 20 of Act No. 40 of the Michigan f'ublic Acts of 1956,
as amended, in anticipation of the collection of special assess-
ments assessed against public corporations on Special Assessment
Roll No. 1 for the Horton Relief Drains made to defray the cost
of locating, establishing and constructing the said drain. The
assessments are against the City of Southfield. The assessments
are a general obligation of the said city and it is obligated
and has the power to levy ad valorem taxes upon all the property,
within its limits in an amount sufficient to pay the assessment
against it with interest, without limitation as to rate or
amount. The statute under which the bonds are to be issued pro-
vides that the full faith and credit of the said Drainage District
is pledged to the prompt payment of the principal of and interest
on said bonds.
No bid for less than all of the bonds or at less than
the par value of the bonds will be accepted.
For the purpose of awarding the bonds, the interest
cost of each bid will be computed by determining, at the rate . or
rates specified therein, the total dollar value of all interest
on all of the bonds from (here insert
the first day, of the month next following the date of receiving
bids. or the date of the bonds, whichever is later) to their
respective maturities and deducting therefrom any premium. Such
bonds will be awarded to the bidder whose bid on the above com-
putation produces the lowest interest cost to the Drainage District
on all of the bonds.'
A certified or cashier's check in the amount of $6,200,
drawn upon an incorporated bank or trust company and payable to
the order of the Treasurer of the Drainage Board for the Horton
Relief Drains, 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 registered
mail.
Bids shall be conditioned upon the unqualified opinion
of Dickinson, Wright, McKean & Cudlip, attorneys, Detroit, Mich-
igan, approving the legality of the bonds. The cost of said
legal opinion and of the printing of the bonds will be paid by
the Drainage District. Bonds will be delivered at Detroit, Mich-
igan, Chicago, Illinois or New York, New York.
The right is reserved to reject any or all bids.
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, 1968
, 1968
Envelopes containing the bids should be plainly marked
"Proposal for Horton Relief Drains Drain Bonds".
DANIEL W. BARRY
Chairman of the Drainage Board
for the Horton Relief Drains
550 South Telegraph Road
Pontiac, Michigan
Dated:
APPROVED:
• STATE OF MICHIGAN
MUNICIPAL FINANCE COMMISSION
* (To be added if Board of Supervisors approves)
By resolution adopted by the affirmative vote of
two-thirds of the members elect of the Board of
Supervisors of the County of Oakland, and pursuant
to said Chapter 20 of Act No. 40 of the Michigan
Public Acts of 1956, as amended, the full faith
and credit of the County of Oakland is pledged. to
the prompt payment of the principal of and interest
on said bonds.
BE IT FURTHER RESOLVED, that the Chairman of this
Board be 4nd he is hereby authorized and directed to forward
the foregoing Notice of Sale to the Municipal Finance Commission
for its approval.
ADOPTED: Yeas -
,
Nays
The following resolution was offered by
and seconded by
RESOLVED, that the
in the of
be and it hereby is designated the depository for
the funds of the Horton Relief Drains Drainage
District and the Chairman and the Oakland County
Treasurer be and they are hereby authorized to
furnish said Bank with banking resolutions, signa-
ture cards and other documents required to open
and maintain accounts of the Drainage District in
said Bank.
ADOPTED: Yeas -
Nays -
It was moved by and seconded by
that payment in the amount of $20.00 to Delos Hamlin for
attendance at this meeting be approved.
• ADOPTED: Yeas - •
Nays -
There being no further business, upon motion by
seconded by and unanimously carried, the meeting was
adjourned.
Chairman
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STATE OF MICHIGAN )
) SS:
COUNTY OF OAKLAND )
1, the undersigned, do hereby certify that the fore-
going is a true and complete copy of proceedings taken by the
Drainage Board for the Horton Relief Drains, Oakland County,
Michigan, at the meeting above indicated, the original of which
is on file in my office.
Daniel W. Barry, Chairman
Dated: , 1968