HomeMy WebLinkAboutResolutions - 2012.05.02 - 20199MISCELLANEOUS RESOLUTION #12100 April 18, 2012
BY: Planning and Building Committee, David Potts, Chairperson
IN RE: BUILDING AUTHORITY - RESOLUTION AUTHORIZING THE OAKLAND
COUNTY BUILDING AUTHORITY TO FINANCE A PROJECT TO MAKE
INFRASTRUCTURE CAPITAL IMPROVEMENTS AND INFORMATION TECHNOLOGY
CAPITAL IMPROVEMENTS LOCATED IN OAKLAND COUNTY, MICHIGAN
TO THE OAKLAND COUNTY BOARD • OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
WHEREAS, there have been prepared and presented to the Board
of Commissioners (the "Board") of the County of Oakland, Michigan
(the "County"), conceptual documents describing the project to
make infrastructure capital improvement and information
technology capital improvements located in the County of Oakland
(the "Project"), all as more fully described in EXHIBIT A to the
Lease Contract (as hereinafter defined), and a proposed Lease
Contract between the County and the Oakland County Building
Authority (the "Authority") dated as of June 1, 2012 (the "Lease
Contract"), pursuant to which the Authority will renovate,
remodel, acquire, construct, furnish and equip the Project as
contemplated by the terms of Act No. 31, Public Acts of Michigan,
1948 (First Extra Session), as amended ("Act 31"), and lease the
Project to the County for a term of fifteen (15) years; and
WHEREAS, it has been estimated that the period of usefulness
of the Project to be not less than fifteen (15) years and that
the total cost of renovating, remodeling, acquiring,
constructing, furnishing, and equipping the Project (as defined
in the Lease Contract) in an amount not to exceed $19,325,000
which will be provided by the proceeds from the sale of bonds by
the Authority pursuant to Act 31; and
WHEREAS, the County proposes to undertake the Project and to
request the Authority to incur taxable or tax-exempt debt (the
"Reimbursement Obligations") to finance all or a portion of the
costs of the Project; and
WHEREAS, the County may make certain expenditures for said
Project prior to issuance of the Reimbursement Obligations and
may wish to use the proceeds of the Reimbursement Obligations to
reimburse all or a portion of said expenditures; and
WHEREAS, it is in the public interest and for the public
benefit that the County designates an authorized officer for the
purposes of declaring officjal intent of the County with respect
to expenditures; and
WHEREAS, there has been prepared and attached hereto as
PLANNING & BUILDING COMMITTEE VOTE:
Motion carried unanimously on a roll call vote with Crawford, Nuccio and Jackson absent.
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APPENDIX I a form of Lease Contract and as APPENDIX II a form of
notice entitled "NOTICE OF INTENTION OF THE COUNTY OF OAKLAND TO
ENTER INTO A LEASE CONTRACT WITH THE OAKLAND COUNTY BUILDING
AUTHORITY AND NOTICE OF RIGHT TO PETITION FOR REFERENDUM THEREON"
(the "Notice of Intention").
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS
OF THE COUNTY OF OAKLAND, MICHIGAN, as follows:
The conceptual documents and estimates relating to the
Project and identified. in EXHIBIT A to APPENDIX I hereto are
hereby approved and ordered filed with the County Clerk.
2. The Lease Contract in the form of APPENDIX I hereto is
hereby approved, and the Chairman of the Board of Commissioners
and the County Clerk are hereby authorized and directed to
execute and deliver the same for and on behalf of the County.
Final plans and project description shall be approved by the
Planning and Building Committee of the Board of Commissioners
before they are attached to the Lease Contract to be executed.
3. It is hereby determined that the Notice of Intention
provides information sufficient to adequately inform the electors
and taxpayers of the County of the nature of the contractual
obligations to be undertaken by the County in the Lease Contract
and of their right under Ac t 31 to file a petition requesting a
referendum election on the Lease Contract.
4. The form and content of the Notice of Intention are
hereby approved, and the County Clerk is hereby authorized and
directed to cause the Notice of Intention to be published once in
the Oakland Press, Pontiac, Michigan, a newspaper of general
circulation within the County which is hereby determined to be
the newspaper reaching the largest number of electors and
taxpayers of the County. The Notice shall be at least one third
of a page in size.
5. The Treasurer of the County is hereby authorized to
declare official intent of the County with respect to
reimbursement.
6. Each declaration of official intent shall be
substantially in the form set forth in APPENDIX III attached
hereto and by this reference incorporated herein, and said form
may be modified from time to time on the advice of bond counsel
Lo the County and as necessary to conform to requirements of our
reimbursement regulations as the same may be adopted by the
Internal Revenue Service or amended from time to time, or with
the requirements of applicable rulings or regulations relating to
tax-exempt borrowings.
7. The Treasurer is hereby directed to file each
declaration of official intent in the office of the Oakland
County Clerk, which location constitutes the customary location
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of the records of the Authority which are available to the
general public.
8. The Oakland County Clerk is further directed to assure
that each declaration of intent is continuously available during
normal business hours of the County on every business day of the
period beginning the earlier of 10 days after the date of
execution of said declaration of intent and ending on the date of
issuance of the Reimbursement Bonds.
9. The County Executive, if necessary, is authorized to
file for approval to issue the bonds from the State of Michigan,
Department of Treasury ("Treasury"), to pay the related fee, and
to execute and deliver such other documents as may be requested
by the Treasury.
10. All activities involved in the planning and
construction of this Project under this resolution shall comply
with the standing rules of the Board. of Commissioners.
BE IT FURTHER RESOLVED that the Chairperson of the Board of
Commissioners is authorized fill in the blanks in Exhibit B to
Pease Contract and Appendix III - Declaration of Intent prior to
executing and filing these documents with the Oakland County
Clerk.
Chairperson, on behalf of the Planning and Building
Committee, I move the adoption of the foregoing resolution.
PLANNING AND BUILDING COMMITTEE
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APPENDIX I
LEASE CONTRACT
THIS FULL FAITH AND CREDIT GENERAL OBLIGATION LEASE CONTRACT
("Lease") made as of June 1, 2012, by and between the OAKLAND
COUNTY BUILDING AUTHORITY (the "Authority"), a building authority
organized and existing under and pursuant to the provisions of
Act No. 31, Public Acts of Michigan, 1948 (First Extra Session),
as amended ("Act 31"), and the COUNTY OF OAKLAND, a County of the
State of Michigan (the "County"),
WITNESSETH:
WHEREAS, the Authority has been incorporated by the County
pursuant to Act 31 for the purpose of acquiring, furnishing,
equipping, owning, improving, enlarging, operating and
maintaining a building or buildings, automobile parking lots or
structures, recreational facilities and stadiums, and the
necessary site or sites therefor, for the use of the County; and
WHEREAS, the County desires to undertake a project to make
infrastructure capital improvement and information technology
capital improvements located in the County of Oakland, as more
fully described in EXHIBIT A to this Lease (the "Project"), and
it is proposed that the Authority undertake the Project; and
WHEREAS, it is proposed that the Authority finance the total
cost of the Project by the issuance of building authority bonds
payable from cash rental payments to be made by the County to the
Authority pursuant to this Lease and Act 31; and
WHEREAS, a description of the Project, and estimate of the
period of usefulness thereof and an estimate of the total cost of
the Project, all as set forth on EXHIBIT A to this Lease, have
been reviewed and approved by the Board of Commissioners of the
County; and
WHEREAS, in order to make possible the issuance of building
authority bonds to finance all or a portion of the total cost of
the Project, it is necessary under Act 31 for the parties to
enter into this Lease;
THEREFORE, IN CONSIDERATION OF THE MUTUAL UNDERTAKINGS AND
AGREEMENTS SET FORTH BELOW, IT IS HEREBY AGREED BY AND BETWEEN
THE PARTIES TO THIS LEASE AS FOLLOWS:
1. Authorization and Issuance of Bonds. As soon as
practicable after the effective date of this Lease, the Authority
shall proceed to authorize and issue one or more series of its
building authority bonds in the aggregate principal amount of not
to exceed $19,325,000 (the "Bonds"), pursuant to and in
accordance with provisions of Act 31, for the purpose of
remodeling, renovating, acquiring, constructing, furnishing and
equipping the Project. The Authority shall pledge for the
payment of the principal of and interest on the Bonds the
receipts from the cash rental payments described and required to
be paid by the County pursuant to this Lease. The Bonds of any
series shall be dated August 1, 2012 or the first day of any
later month in 2012 or 2013 and the final maturity may be at any
time up to and including December 1, 2040 as the Authority shall
approve in the resolution authorizing issuance of the Bonds (the
"Bond Resolution"). The Bonds shall bear interest at a rate or
rates that will result in a net interest cost not exceeding 8%
per annum. Interest shall be payable semi-annually and shall
begin as specified in the Bond Resolution until maturity of the
bonds and shall mature in accordance with the Debt Retirement
Schedule set forth on EXHIBIT B to this Lease. Each date on
which any payment of principal of and/or interest on any bond is
due is referred to herein as a "Bond Payment Date." The Bonds
may be payable on the first day of a .different month, if
necessary, to match rental income paid to the County.
The County and the Authority recognize and acknowledge that
(a) such Debt Retirement Schedule is based upon an assumed
interest rate. and date Of issuance of the Bonds and upon assumed
Bond Payment Dates, all as set forth in EXHIBIT B, (b) the Bond
Payment Dates will be specified in the Bond Resolution, (c) the
date and amount of each payment of cash rental required under
this Lease will be determined (subject to the limitations
expressed in the preceding paragraph of this Section) when the
Bond Resolution is adopted by the Authority and the Bonds are
sold, by application of the rate or rates of interest (that will
result in a net interest cost not exceeding 8% per annum)
actually borne by the Bonds.
The Bonds may be sold subject to redemption prior to
maturity at the option of the Authority with such redemption
premiums and upon such terms as shall be set forth in the Bond
Resolution.
Upon receipt of the proceeds of the sale of the Bonds, all
premium, capitalized interest, if any, and accrued interest
received from the purchaser or purchasers of the Bonds shall be
transferred to a bond and interest redemption fund, and the
balance of such proceeds shall be deposited into an construction
fund, each of which shall be established by the Bond Resolution
and maintained as a separate depository account of the Authority.
The money in the construction fund shall be used to pay costs of
the Project, and upon payment of all such costs, any excess money
in the construction fund will be used as provided in Section 4.
In the event that for any reason after the date upon which
this Lease is executed, but before the Bonds have been issued, it
appears to the County and the Authority that the part of the
Project to be paid by bond proceeds can be equipped for less than
$19,325,000, or the County shall be able to make payment in
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advance on the cash rental payments payable pursuant to this
Lease, the Authority may reduce the amount of bonds to be issued
in multiples of $5,000 and reduce the annual maturities or the
years of maturities as the County Treasurer shall direct.
2. Transfer of Title to and Completion of Project. As
soon as practicable after the Bonds have been sold, the County
shall transfer title to the real property upon which the Projects
will occur or will be located to the Authority, and the Authority
shall commence the Project. The plans, cost estimate and
estimated period of usefulness for the Project, all of which have
been filed with the County Clerk and the Secretary of the
Authority, are hereby approved and adopted. The Project shall be
implemented in substantial accordance with such plans which are
incorporated as part of (but not attached to) this Lease. No
major changes in such plans shall be made without the written
approval first by the County and then by the Authority.
3. Increased Project Costs. In the event that it shall
appear, upon determining the costs for the construction of the
Project and after issuance of the Bonds, that the Project cannot
be completed at the estimated cost, the Authority shall
immediately so notify the County. The County may elect to pay
the increased cost in Cash to the Authority in which event the
amount of such cash payment shall be deposited in the
construction fund for the Project and the Authority shall proceed
to construct and complete the Project. In the alternative, the
County and the Authority may agree, by an amendment to this Lease
that additional bonds shall be issued by the Authority in an
amount sufficient to pay the increased Project costs. If, after
the sale and issuance of the Bonds, it shall become necessary to
raise additional funds to pay for an increase in the Project
costs and this Lease . cannot be amended to provide for the
issuance • of additional bonds, or if for any other reason
additional bonds cannot be issued, the County shall pay to the
Authority in cash an amount which will be sufficient to enable
the Authority to complete the Project in accordance with the
plans of the Project.
4. Funds Remaining After Completion. Any unexpended
balance of the proceeds of the sale of the Bonds remaining after
completion of the Project may be used to improve or enlarge the
Project upon the approval of the Planning and Building Committee
of the Board of Commissioners provided that such use of the funds
in the construction fund has been approved by the Municipal
Finance Division of the Michigan Department of Treasury, if
necessary, and the County. Any unexpended balance not so used
shall be paid into the bond and interest redemption fund, and the
County shall receive a credit against the cash rental payments
next due under this Lease to the extent of the moneys so
deposited in the manner provided in the Bond Resolution.
o. Insurance Requirements. The Authority shall require
any contractor or contractors for the Project to furnish all
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, •-y bonds guaranteeing performance and all labor and
. . bonds and all owner's protective, workers compensation
. Ility insurance required for the protection of the
and the County. Such bonds and insurance, and the
. . thereof, shall be subject to approval of the County's
-1.ment of Risk Management on the advice of its counsel. The
city also shall require a sufficient fidelity bond from any
. handling funds of the Authority.
0. Lease Term; Possession; Reconveyance. (a) The Authority
iereby lease the Project, as described in Exhibit A, to the
•- 2 for a term commencing on the effective date of this Lease
• ermined as provided in Section 22) and ending fifteen (15)
•__ from the effective date of the Lease or such earlier or
her date as the principal of and premium, if any, and interest
ee the Bonds, the fees and expenses of the paying agent for the
12 and all amounts owing hereunder have been paid in full.
P , 'session of the Project shall vest in the County upon the
ce
late execution of the Lease. At the end of the term of this
•.e, the Authority shall convey to the County all of its right,
11.1e and interest in and to the Project and any lands, easements
or rights-of-way appertaining thereto, and upon such conveyance,
eh12 Lease shall terminate, and the Authority shall have no
t1rTher interest in, or obligations with respect to, the Project.
(b) The County shall, upon the terms and conditions
set forth in this Lease, acquire and convey to the Authority all
lanes, buildings, tenements, hereditaments, easements and rights-
of-way necessary to enable the Authority to complete the Project
in accordance with the plans.
(c) The Authority acknowledges that the County has
numerous long-term leases with public and private third-parties
involving the real property described in Exhibit A, including but
not limited to the following entities, the Road Commission for
Oakland County, Easter Seals, Boy Scouts, the Oakland County
Credit Union, the Oakland County Bar Association, the Oakland
County Medical Control Authority, the United States Army Reserve,
and Ameritech. This Lease shall in no way effect the leases
currently in effect between the County and third-parties. The
County may sublease or license portions of the real property
described in Exhibit A to third parties without the approval of
the Authority.
7. Cash Rental; Pledge of Full Faith and Credit. The
County hereby agrees to pay to the Authority as cash rental for
the Project such periodic amounts as shall be sufficient to
enable the Authority to pay the principal of and interest on the
Bonds as such principal and interest shall become due, whether at
maturity or by redemption. For so long as any bonds are
outstanding, the County shall pay to the Authority, on the Bond
Payment Date, an amount sufficient to pay the principal and/or
interest due on the Bonds on such Bond Payment Date.
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The County hereby pledges its full faith and credit for the
payment of the cash rental when due and agrees that it will levy
each year such ad valorem taxes as shall be necessary for the
payment of such cash rental, which taxes, however, will be
subject to applicable constitutional and statutory limitations on
the taxing power of the County, and which shall not be in an
amount or at a rate exceeding that necessary to pay its
contractual obligation pursuant to this Lease. If the County, at
the time prescribed by law for the making of its annual tax levy,
shall have other funds on hand which have been set aside and
earmarked for payment of its obligations under this Lease for
which a tax levy would otherwise have to be made, then the tax
levy shall be reduced by the amount of such other funds. Such
other funds may be raised from any lawful source. The obligation
of the County to make such cash rental payments shall not be
subject to any set-off by the County nor shall there be any
abatement of the cash rental payments for any cause, including,
but not limited to, casualty that results in the Project being
untenantable.
8. Expenses of Issuing and Payment of Bonds. The
Authority shall pay from the proceeds of the sale of any series
of the Bonds all expenses incurred with respect . to the issuance
of the Bonds. The County agrees to pay to the Authority, in
addition to the cash rental provided for in Section 7, all
expenses incurred with respect to the issuance and payment of the
Bonds, to the extent not so paid from the proceeds from the sale
of the Bonds. The obligation of the County to make such payments
shall be a general obligation of the County.
9. Preliminary Expenses of the County. Upon the sale of
the Bonds, the County shall give the Authority a full and
complete accounting of the preliminary costs and expenses
incurred on or before that date by the County in connection with
the Project, and the Authority shall thereupon reimburse the
County for such costs and expenses to the •extent that such costs
and expenses were included in the portion of the total cost of
the Project to be paid from bend proceeds
10. Maintenance and Repairs. The County shall, at its own
expense, operate and maintain the Project and shall keep the same
in good condition and repair. Operation and maintenance shall
include but not be limited to the following: the furnishing of
all personnel, equipment and facilities; the provision of all
light, power, heat, water, sewerage, drainage and other
utilities; and the furnishing of all properties and services of
whatever nature, as shall be necessary or expedient in the
efficient and lawful operation and maintenance of the Project.
Premiums for insurance required to be carried upon or with
respect to the Project or the use thereof and taxes levied upon
either party hereto on account of the ownership or use of the
Project, or on account of rentals or income from the Project,
shall likewise be deemed operation and maintenance expenses. The
obligation of the County to pay all costs and expenses of the
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operation and maintenance of the Project shall be a general
obligation of the County.
11. Property Insurance and Insurance Proceeds. The County
shall cause to be provided, at no expense to the Authority, fire
and extended. coverage insurance in an amount which is at least
equal to the amount of bonds outstanding from time to time or to
the amount of the full replacement cost of the Project if that
amount be less than the amount of bonds outstanding. In the
event of the partial or total destruction of the Project during
or after construction, or if the Project is for any reason made
unusable, the cash rental payments provided in Section 7 shall
continue unabated. In the event the insurance proceeds are
payable to the County, the County shall have the option to use
the proceeds of insurance, in the event of loss or damage to the
Project, for the repair or restoration of the Project.
12. Liability Insurance. The County shall cause to be
provided and maintained during the term of this Lease adequate
liability insurance or self-insurance protecting the County and
the Authority against loss on account of damage or injury to
persons or property, imposed by reason of the ownership,
possession, use, operation, maintenance or repair of the Project
and the site of the Project, or resulting from any acts of
omission or commission on the part of the County or the Authority
or their respective officers or employees in the connection with
the Project. Such insurance shall be made effective upon the
complete execution of this Lease.
13. No Unlawful Use Permitted. The Project shall not be
used or permitted to be used in any unlawful manner or in any
manner which would violate the provisions of any contract or
agreement between the County or the Authority and any third
party. To the extent permitted by law, the County shall hold the
Authority harmless and keep it fully indemnified at all times
against any loss, injury or liability to any persons or property
by reason of the use, misuse or non-use of the Project or from
any act or omission in, on or about the Project. The County
shall, at its own expense, make any changes or alterations in, on
or about the Project which may be required by any applicable
statute, charter, ordinance or governmental regulation or order
and shall save the Authority harmless and free from all costs or
damages with respect thereto.
14. Alterations of Project. The County, in its sole
discretion, may install or construct in or upon, or may remove
from the Project, any equipment, fixtures or structures, and may
make any alterations to or structural changes in, the Project as
the County may desire in accordance with the standing rules of
the Board of Commissioners.
15. Right of Inspection. The Authority, through its
officers, employees, or agents, may enter upon the Project at any
reasonable time during the term of this Lease for the purpose of
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inspecting the Project and determining whether the County is
complying with the covenants, agreements, terms and conditions of
this Lease.
16. Contractual Rights of Bondholders. Inasmuch as this
Lease, and particularly the obligation of the County to make cash
rental payments to the Authority, provides the security for
payment of the principal of and interest on the Bonds, it is
hereby declared that this Lease is made for the benefit of the
holders from time to time of the Bonds as well as for the benefit.
of the parties and that such holders shall have contractual
rights under this Lease. In the event of any default under this
Lease on the part of the County, the Authority and the holders of
the Bonds shall have all rights and remedies provided by law,
including in particular all rights and remedies provided by
Act 31. The parties shall not do nor permit to be done any act,
including amending this Lease, that would impair the security of
the Bonds or the rights of the holders of the Bonds. kn
amendment of this Lease to authorize the issuance of additional
bonds and providing the payment of additional cash rentals for
the payment of such bonds shall not be deemed to impair the
security of the Bonds or the rights of the holders of the Bonds.
17. Appurtenant Facilities. The site on which this Project
is to be located includes or will include roadways, walks,
drives, parking areas and landscaping which are of benefit to and
necessary to the full use and enjoyment of the Project, the
County shall maintain such appurtenant facilities in good repair
and condition. The appurtenant facilities shall be available to
the users and occupants of the Project.
18. Successors and Assigns. This Lease shall inure to the
benefit of, and be binding upon, the respective parties hereto
and their successors and assigns, provided, however, that no
assignment shall be made in violation of the terms of this Lease
nor shall any assignment be made which would impair the security
of the Bonds or the rights of the holders of the Bonds.
19. Abandonment of Project. In the event the Bonds to
finance the Project cannot be or are not issued by the Authority
on or before December 31, 2013, the Project shall be abandoned,
the County shall pay from available funds all expenses of the
Authority incurred to the date of abandonment, and neither party
shall have any further obligations under this Lease.
20. Consents, Notices, Etc. The right to give any consent,
agreement or notice required or permitted in this Lease shall be
vested, in the case of the County, in its Board of Commissioners,
and in the case of the Authority, in its Commission. Any notice
required or permitted to be given under this Lease shall be given
by delivering the same, in the case of the County, to the County
Clerk, and in the case of the Authority, to any member of its
Commission.
21. Changes in Law or Corporate Status. In the event there
shall occur changes in the Constitution or statutes of the State
of Michigan which shall affect the organization, territory,
powers or corporate status of the County, the terms and
provisions of this Lease shall be unaffected thereby insofar as
the obligation of the County to make the cash rental payments is
concerned. The proceeds of any sale or other liquidation of any
interest of the County or the Authority in the Project are hereby
impressed with a first and prior lien for payment of any
outstanding bonds or other obligations of the Authority incurred
by reason of the Project or any additions or improvements
thereto.
22. Effective Date of Lease. This Lease shall become
effective on the 61st day after publication of a Notice of
Intention in the Oakland Press, a newspaper published in Pontiac.
Michigan, as required by Act 31, provided that if a petition for
a referendum is filed as provided in (and meeting all
requirements of) Section 8b of Act 31, then this Lease shall not
become effective unless and until approved by a majority of the
electors of the County voting thereon at a general or special
election.
23. Undertaking to Provide Continuing Disclosure. The
County and the Authority hereby covenant and agree, for the
benefit of the beneficial owners of the Bonds, to enter into a
written undertaking (the "Undertaking") required by SEC Rule
1502-12 promulgated by the Securities and Exchange Commission
pursuant to the Securities and Exchange Act of 1934 -the "Rule")
to provide continuing disclosure of certain financial information
and operating data and timely notices of the occurrence of
certain events in accordance With the Rule. The undertaking
shall be in the form attached to the official statement for the
Bonds. This Undertaking shall be enforceable by the beneficial
owners of the Bonds or by the Purchaser(s) on behalf of such
beneficial owners (provided that the Purchaser(s) right to
enforce the provisions of this Undertaking shall be limited to a
right to obtain specific enforcement of the obligations hereunder
and any failure by the County and the Authority to comply with
the provision of this Undertaking shall not be an event of
default with respect to the Bonds).
The County Treasurer and the Chairperson or Treasurer of the
Authority, or other officer of the County or Authority charged
with the responsibility for issuing the Bonds, shall provide a
Continuing Disclosure Certificate for inclusion in the transcript
of proceedings, setting forth the details and terms of the
County's and Authority's Undertaking.
IN WITNESS WHEREOF, the OAKLAND COUNTY BUILDING AUTHORITY,
by its Commission, and the COUNTY OF OAKLAND, by its Board of
Commissioners, have caused this Lease to be signed by their duly
authorized officers, and their seals to be affixed hereto, all as
of the day and year first above written.
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WITNESSES TO SIGNATURES OAKLAND COUNTY BUILDING AUTHORITY
OF AUTHORITY OFFICERS:
By:
Chairperson of its Commission
By:
Secretary of its Commission
WITNESSES TO SIGNATURES COUNTY OF OAKLAND
OF COUNTY OFFICERS:
By:
Chairperson, Board of Commissioners
By:
County Clerk
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STATE OF MICHIGAN)
)ss.
COUNTY OF OAKLAND)
On this day of , before me appeared
and , to me personally known,
who being by me duly sworn, did each say that they are,
respectively, the Chairperson and the Secretary of the Commission
of the OAKLAND COUNTY BUILDING AUTHORITY and that the foregoing
Lease Contract was signed and sealed by them on behalf of the
Authority by authority of its Commission, and that such persons
acknowledged such instrument to be the free act and deed of the
Authority.
/s/
Notary Public
State of Michigan, County of Oakland
My commission expires
Acting in the County of Oakland
(Seal)
STATE OF MICHIGAN)
jss.
COUNTY OF OAKLAND)
On this day of
appeared
, before me
and , to me
personally known, who being by me duly sworn, did each say that
they are, respectively, the Chairman of the Board of
Commissioners and the County Clerk of the COUNTY OF OAKLAND and
that the foregoing Lease Contract was signed and sealed by them
on behalf of the County by authority of its Board of
Commissioners, and that such persons acknowledged such instrument
to be the free act and deed of the County.
/s /
Notary Public
State of Michigan, County of Oakland
My commission expires
Acting in the County of Oakland
(Seal)
1 0
Instrument Drafted By
John R. Axe
Axe & Ecklund, P.C.
21 Kercheval, Suite 360
Grosse Pointe Farms, Michigan 48236
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EXHIBIT A to LEASE CONTRACT
The Project consists of the following listed and described
infrastructure capital improvements and information technology
capital improvements. Such Projects will occur on the real
property described in this Exhibit, which shall be conveyed to
the Authority.
I. CAPITAL PROJECTS FOR INFRASTRUCTURE
A. Steam tunnel repairs and renovation - The County has a
series of steam tunnels running underground in the County
service center complex that are in need of repair. The
tunnels provide a means of transmitting steam and other
connections between facilities. The steam tunnels to be
repaired are located on the County service center complex in
Pontiac and Waterford Township.
B. Parking lot repaving program - Annually, parking lots are
repaired and / or replaced located on property owned by the
County. This projected parking lot cost repair and
replacement covers the period from FY-2012 through FY-2015.
Any County-owned parking lots may be repaired.
C. Service center complex road repair - Annually, the County
repairs its roads located on the County service center
complex. The projected road repair cost covers the period
from FY-2012 through FY-2015. The roads to be repaired are
located on the County service center complex in Pontiac and
Waterford Township.
D. Water main replacement - The water main located on the
County service center complex, which runs along County
Center Drive in Pontiac and Waterford Township, will be
replaced and repaired.
E. Chiller replacement - The chiller (air conditioning unit)
for Building 49 West located on the County service center
complex will be replaced.
F. Radio Shop Renovations / Repairs - The radio shop located on
the County service center complex, in Building 16 East,
maybe be renovated and repaired including but not be limited
to: an addition to the existing facility, replacement of
the HVAC system, renovation of plumbing and related
facilities, furniture and other capital projects within the
Radio Shop facility.
Roofing repairs and maintenance - Roofing repairs are
conducted on an annual basis as funds are available. The
roof repairs contemplated are located generally on the
County service center complex in Pontiac and Waterford
Township, but also .include the Oakland Pointe Office
Building in Pontiac or any other County-owned buildings.
II. CAPITAL PROJECTS FOR INFORMATION TECHNOLOGY
A. Acquisition of equipment and related costs - The following
equipment acquisitions and related costs have been targeted
for the period FY-2012 through FY-2016:
1) Wide area and local area network equipment.
2) Video conferencing equipment - central servers and
related replacement of software.
3) Desktop computers, laptop computers, monitors, tablets
and related equipment for period FY-2012 to FY-2016.
4) Central server replacement.
5) EMC: NS-480 and NS-120.
6) PBX (telephone switch).
7) Mainframe tape drive replacement.
8) Other equipment purchases.
B. Software creation, acquisition and / or related
implementation - The following software creation and related
implementation costs have been targeted for the period FY-
2012 through FY-2016:
1) Video conferencing replacement of existing software
(reimburse the Information Technology Fund for internal
costs incurred in the re-write of the existing software.)
2) EMC software.
III. LEGAL DESCRIPTIONS
A. • Parcel I.D. Number: 13-24-126-019 - Property Description -
Public Works, Armory, Pt. Children's Village (Waterford
Township):
L.
T3N, R9E, SEC 24 PART OF NW 1/4 EEG AT N 1/4 COR, TH S 02-
42-40 5 1131.37 FT, TH S 42-24-25 W 1189.70 FT, TN N 47-36-
02 W 963.28 FT, TH N 42-24-25 E 932.29 FT, TB N 52-43-05 W
399.18 FT, TB N 02-28-31 W 376.72 FT, TB N 87-25-20 E
1166.50 FT TO BEG 44.46 A 7-29-11 FR 008 & 009
B. Parcel I.D. Number: 13-24-251-001 - Property Description -
Road Commission, Pt. Children's Village (Waterford
Township):
T3N, R9E, SEC 24 THAT PART OF NE 1/4 LYING W OF TELEGRAPH RD
62 A W502
C. Parcel I.D. Number: 13-24-426-001 - Property Description -
E0B, Farmers Market, Information Technology, Boy Scouts,
Easter Seals, Credit Union (Waterford Township):
T3N, R9E, SEC 24 THAT PART OF SE 1/4 LYING NLY OF CEN LINE
OF PONTIAC LAKE RD & W OF TELEGRAPH RD, EXC SE PART TAKEN
FOR PONTIAC LAKE RD-TELEGRAPH RD CONNECTION 36 A W525A
D. Parcel I.D. Number: 13-24-227-001 - Property Description -
Health Dept., PT. Courthouse, North Office Bldg., Medical
Examiner, Sheriff Administration (City of Pontiac):
T3N, R9E, SEC 24 THAT PART OF E 1/2 OF SEC LYING NLY OF
TELEGRAPH RD & SLY OF SLY RN LINE OF GTWRR 85 A
Parcel I.D. Number: 14-18-352-006 - Property Description -
Impound Lot, Sewer Dump Station (City of Pontiac):
T3N, R10E, SEC 18 & 19 PART OF SW 1/4 OF SEC 18 & PART OF NW
1/4 OF SEC 19 BEG AT NW COR OF SEC 19, TM S 01-50-30 E
389.12 FT, TH N 87-33-30 E 606.90 FT, TH N 46-29-40 W 520.32
FT, TH N 43-30-20 E119 FT, TH N 46-29-40 W 125 FT, TN N 43-
30-20 E 300 FT, TM N 46-2940 W ALG SWLY LINE OF OAKLANDAVE
TO W LINE OF SEC 18, TM SLY ALG SD SEC LINE TO BEG EXC W 30
FT IN WEST RD 7.97 A
F. Parcel I.D. Number: 14-18-352-007 - Property Description -
Materials Management, Sewer Dump Station (City of Pontiac):
T3N, R10E, SEC 18 & 19 PART OF SW 1/4 OF SEC 18 & PART OF NW
1/4 OF SEC 19 BEG AT PT DIET S 0150-30 E 389.12 FT & N 87-
33-30 E 606.90 FT FROM NW COP OF SEC 19, TM N 46-29-40 W
520.32 FT, TH N 4330-20 E 119 FT, TM N 46-29-40 W 125 FT, TB
N 43-30-20 E 300 FT, TH S 46-29-40 E 650 FT ALG SWLY LINE OF
OAKLAND AVE TO NWLY R/W LINE OF GTRR, TH SWLY 414.17 FT ALG
SD LI, TM S 87-33-30 W 6.73 FT TO BEG 5.91 A
G. Parcel I.D. Number: 14-19-151-001 - Property Description -
Pt. Courthouse, Central Garage, Jail, Power House (City of
Pontiac):
T3N, R10E, SEC 19 PART OF NW 1/4 BOUNDED ON S BY E & W 1/4
LINE, ON W BY W SEC LINE & ON NE BY GTRR R/W 35.0 A
H. Parcel I.D. Number: 14-30-251-001 - Property Description -
Oakland Pte. East (City of Pontiac):
T3N, R10E, SEC 30 PART OF NW 1/4 BEG Al PT DIST S 89-15-33 E
50 FT & S 00-13-24 E 1200 FT & S 89-15-33 E 1800 FT & S 00-
13-24 E. 475 FT & S 89-15-33 E 167.40 FT FROM SW COR OF SEC
19, TN S 89-15-33 E 295.13 FT, TH S 00-13-24 E 269.23 FT, TH.
45-13-24 E 69.17 FT, TM S 00-13-24 E 331.40 FT, IN S 88-
15-41 W 344.12 FT, TN N 00-13-24 W 663.61 FT TO BEG 4.85 A
2/9/89 FR 14-19-351-007
I. Parcel I.D. Number: 14-30-251-002 - Property Description
Oakland Pte. West (City of Pontiac):
13N, R10E, SEC 30 PART OF NW 1/4 BEG AT PT DIST S 89-15-33 E
50 FT & S 00-13-24 E 1200 FT & 5 89-15-33 E 1800 FT & S 00-
13-24 E 475 FT & S 89-15-33 E 462.53 FT FROM SW COP OF SEC
19, TN S 89-15-33 E 344.87 FT, TH S 00-44-27 W 637.22 FT, TH
S 88-41-41 W 123.06 FT, TH 5 88-15-41 W 162.21 FT, TN N 00-
13-24 W 331.40 FT, TN N 45-13-24 W 69.17 FT, TH N 00-13-24 W
269.23 FT TO BEG 4.62 A 9/7/89 FR 14-19-351008
J. Parcel I.D. Number: 20-32-226-010 - Property Description -
S. Oakland Bldg. (City of Troy):
T2N, R11E, SEC 32 OAKWOOD INDUSTRIAL PARK LOT 7
K. Parcel I.D. Number: 24-13-426-004 - Property Description -
South Oakland Health (City of Southfield):
T1N, R10E, SEC 13 OAKLAND GARDENS SUB PART OF LOT 23, ALSO
ALL OF LOTS 24 TO 43 INCL, ALSO PART OF LOTS 44 TO 60 INCL,
ALSO PART OF LOT 211, ALSO ALL OF LOTS 212 TO 218 INCL, ALSO
PART OF LOT 219, ALSO ALL OF LOTS 309 TO 312 INCL, ALSO PART
OF LOTS 313 TO 316 INCL, ALSO ALL VAC STREETS & ALLEYS LOC
WITHIN THE FOL DESC PCL BEG AT PT DIST N 01-03-00 W 488.78
FT & S 88-13-00 W 7 FT FROM SE COR OF LOT 84 OF SD 'PLAT',
TN S 88-13-00 W 658.44 FT, TH N 01-03-00 W 330.04 FT, TH N
88-13-00 E 658.44 FT, TM S 01-03-00 E 330.04 FT TO BEG 3-10-
09 FR 001
IV. PRELIMINARY PROJECT COST ESTIMATE:
All Project Costs including Financing
Costs, Bond Discount and Contingency $19,325,000.00
las.ri-oak240
EXHIBIT B
to
LEASE CONTRACT
OAKLAND BUILDING AUTHORITY PROJECT
SCHEDULE OF PRINCIPAL AND INTEREST
DUE AMOUNT
TOTAL
APPENDIX II
NOTICE OF INTENTION OF THE COUNTY OF OAKLAND
TO ENTER INTO A LEASE CONTRACT WITH
THE OAKLAND COUNTY BUILDING AUTHORITY AND
NOTICE OF RIGHT TO PETITION FOR REFERENDUM THEREON
TO ALL ELECTORS AND TAXPAYERS OF
THE COUNTY OF OAKLAND:
NOTICE IS HEREBY GIVEN that the Board of Commissioners of
the County of Oakland, Michigan (the "County"), has authorized
the execution of a full faith and credit general obligation lease .
contract (the "Lease") between the County and the Oakland County
Building Authority (the "Authority"). The Lease provides, among
other things, for the following purposes: See Exhibit A to be
located at: See Exhibit A (the "Project"). The Lease provides
further that the Authority will finance all or a portion of the
total cost of the Project by the issuance of one or more series
of building authority bonds (the "Bonds") pursuant to the
provisions of Act No. 31, Public Acts of Michigan, 1948 (First
Extra Session), as amended ("Act 31"), in anticipation of the
receipt of cash rental payments to be made by the County to the
Authority pursuant to the Lease. The maximum amount of bonds to
be issued in one or more series shall not exceed $19,325,000, the
term of the Lease shall not exceed 50 years and the Bonds shall
bear interest at a rate or rates that will result in a net
interest cost of not more than 8% per annum.
FULL FAITH AND CREDIT AND TAXING POWER. OF
THE COUNTY OF OAKLAND WILL BE PLEDGED
NOTICE IS FURTHER GIVEN that in the Lease the County will
obligate itself to make cash rental payments to the Authority in
amounts sufficient to pay the principal of and interest on the
Bonds. The full faith and credit of the County will be pledged
for the making of such cash rental payments. Pursuant to such
pledge of its full faith and credit, the County will be obligated
to levy such ad valorem taxes upon all taxable property in the
County as shall be necessary to make such cash rental payments,
which taxes, however, will be subject to applicable statutory and
constitutional limitations on the taxing power of the County. In
addition to its obligation to make cash rental payments, the
County will agree in the Lease to pay all costs and expenses of
operation and maintenance of the Project and all expenses of the
Authority incidental to the issuance and payment of the Bonds, to
the extent such expenses are not payable from the proceeds of the
Bonds.
RIGHT TO PETITION FOR REFERENDUM
NOTICE IS FURTHER GIVEN to the electors and taxpayers of the
County to inform them of the right to petition for a referendum
1
on the question of entering into the Lease. The County intends
to enter into the Lease without a vote of the electors thereon,
but the Lease shall not become effective until 60 days after
publication of this notice. If, within 45-days after publication
of this notice, a petition for referendum requesting an election
on the Lease, signed by not less than 10% or 15,000 of the
registered electors of the County, whichever is less, has been
filed with the County Clerk, the Lease shall not become effective
unless and until approved by a majority of the electors of the
County voting thereon at a general or special election.
This notice is given by order of the Board of Commissioners
pursuant to Act 31. Further information may be obtained at the
office of the Oakland County Clerk, County Service Center, 1200
N. Telegraph Rd., Pontiac, Michigan 48341.
2
EXHIBIT A to LEASE CONTRACT
The Project consists of the following listed and described
infrastructure capital improvements and information technology
capital improvements. Such Projects will occur on the real
property described in this Exhibit, which shall be conveyed to
the Authority.
I. CAPITAL PROJECTS FOR INFRASTRUCTURE
A. Steam tunnel repairs and renovation - The County has a
series of steam tunnels running underground in the County
service center complex that are in need of repair. The
tunnels provide a means of transmitting steam and other
connections between facilities. She steam tunnels to be
repaired are located on the County service center complex
Pontiac and Waterford Township.
B. Parking lot repaving program - Annually, parking lots are
repaired and / or replaced located on property owned by the
County. This projected parking lot cost repair and
replacement covers the period from FY-2012 through FY -20l5,
Any County-owned parking lots may be repaired.
C. Service center complex road repair - Annually, the County
repairs its roads located on the County service center
complex. The projected road repair cost covers the period
from FY-2012 through FY-2015. The roads to be repaired are
located on the County service center complex in Pontiac and
Waterford Township.
D. Water main replacement - The water main located on the
County service center complex, which runs along County
. Center Drive in Pontiac and Waterford Township, will be
replaced and repaired.
E. Chiller replacement - The chiller (air conditioning unit)
for Building 49 West located on the County service center
complex will be replaced.
F. Radio Shop Renovations / Repairs - The radio shop located on
the County service center complex, in Building 16 East,
maybe be renovated and repaired including but not be limited
to: an addition to the existing facility, replacement of
the HVAC system, renovation of plumbing and related
facilities, furniture and other capital projects within the
Radio Shop facility.
3
G. Roofing repairs and maintenance - Roofing repairs are
conducted on an annual basis as funds are available. The
roof repairs contemplated are located generally on the
County service center complex in Pontiac and Waterford
Township, but also include the Oakland Pointe Office
Building in Pontiac or any other County-owned buildings.
II. CAPITAL PROJECTS FOR INFORMATION TECHNOLOGY
A. Acquisition of equipment and related costs - The following
equipment acquisitions and related costs have been targeted
for the period FY-2012 through FY-2016:
1) Wide area and local area network equipment.
2) Video conferehcing equipment - central servers and
related replacement of software.
3) Desktop computers, laptop computers, monitors, tablets
and related equipment for period FY-2012 to FY-2016.
4) Central server replacement.
5) EMC: NS-480 and NS-120.
6) PBX (telephone switch).
7) Mainframe tape drive replacement.
8) Other equipment purchases.
B. Software creation, acquisition and / or related
implementation - The following software creation and related
implementation costs have been targeted for the period FY-
2012 through FY-2016:
1) Video conferencing replacement of existing software
(reimburse the Information Technology Fund for internal
costs incurred in the re-write of the existing software.)
2) EMC software.
III. LEGAL DESCRIPTIONS
A. Parcel I.D. Number: 13-24-126-019 - Property Description
Public Works, Armory, Pt. Children's Village (Waterford
Township):
T3N, R9E, SEC 24 PART OF NW 1/4 BEG AT N 1/4 COR, TH S 02-
42-40 E 1131.37 FT, TH S 42-24-25 W 1189.70 FT, TH N 47-36-
4
02 W 963.28 FT, TH N 42-24-25 E 932.29 FT, TH N 52-43-05 W
399.18 FT, TH N 02-28-31 W 376.72 FT, TH N 87-25-20 E
1166.50 FT TO BEG 44.46 A 7-29-11 FR 008 & 009
B. Parcel I.D. Number: 13-24-251-001 - Property Description -
Road Commission, Pt. Children's Village (Waterford
Township):
T3N, R9E, SEC 24 THAT PART OF NE 1/4 LYING W OF TELEGRAPH RD
62 A W502
C. Parcel I.D. Number: 13-24-426-001 - Property Description -
BOB, Farmers Market, Information Technology, Boy Scouts,
Easter Seals, Credit Union (Waterford Township):
R9R, SEC 24 THAT PART OF SE 1/4 LYING NLY OF CEN LINE
OF PONTIAC LAKE RD & W OF TELEGRAPH RD, EXC SE PART TAKEN
FOR PONTIAC LAKE RD-TELEGRAPH RD CONNECTION 36 A W525A
D. Parcel I.D. Number: 13-24-227-001 - Property Description -
Health Dept., PT, Courthouse, North Office Bldg., Medical
Examiner, Sheriff Administration (City of Pontiac):
T3N, R9E, SEC 24 THAT PART OF E 1/2 OF SEC LYING NLY OF
TELEGRAPH RD & SLY OF SLY RN LINE OF GTWRR 85 A
E. Parcel I.D. Number: 14-18-352-006 - Property Description -
Impound Lot, Sewer Dump Station (City of Pontiac):
T3N, R10E, SEC 18 & 19 PART OF SW 1/4 OF SEC 18 & PART OF NW
1/4 OF SEC 19 BEG AT NW COR OF SEC 19, TM S 01-50-30 E
389.12 FT, TH N 87-33-30 E 606.90 FT, TH N 46-29-40 W 520.32
FT, TM N 43-30-20 E119 FT, TH N 46-29-40 W 125 FT, TH N 43-
30-20 E 300 FT, TH N 46-29-40 W ALG SWLY LINE OF OAKLANDAVE
TO W LINE OF SEC 18, TH SLY ALG SD SEC LINE TO BEG EXC W 30
FT IN WEST RD 7.97 A
F. Parcel I.D. Number: 14-18-352-007 - Property Description -
Materials Management, Sewer Dump Station (City of Pontiac):
T3N, R10E, SEC 18 & 19 PART OF SW 1/4 OF SEC 18 & PART OF NW
1/4 OF SEC 19 BEG AT PT DIST S 0150-30 E 389.12 FT & N 87-
33-30 E 606.90 FT FROM NW COR OF SEC 19, TH N 46-29-40 W
520.32 FT, TM N 4330-20 E 119 FT, TM N 46-29-40 W 125 FT, TH
N 43-30-20 E 300 FT, TM S 46-29-40 E 650 FT ALG SWLY LINE OF
OAKLAND AVE TO NWLY R/W LINE OF GTRR, TM SWLY 414.17 FT ALG
SD LI, TM S 87-33-30 W 6.73 FT TO BEG 5.91 A
5
r-, L . Parcel I.D. Number: 14-19-151-001 - Property Description -
Pt. Courthouse, Central Garage, Jail, Power House (City of
Pontiac):
T3N, R10E, SEC 19 PART OF NW 1/4 BOUNDED ON S BY E & W 1/4
LINE, ON W BY W SEC LINE & ON NE BY GTRR R/W 35.0 A
H. Parcel I.D. Number: 14-30-251-001 - Property Description -
Oakland Pte. East (City of Pontiac):
T3N, R10E, SEC 30 PART OF NW 1/4 BEG AT PT DIST S 89-15-33 E
50 FT & S 00-13-24 E 1200 FT & S 89-15-33 E 1800 FT & 5 00-
13-24 E 475 FT & S 89-15-33 E 167.40 FT FROM SW COP OF SEC
19, TH S 89-15-33 5 295.13 FT, TH S 00-13-24 E 269.23 FT, TM
S 45-13-24 E 69.17 FT, TH S 00-13-24 E 331.40 FT, TH S 88-
15-41 W 344.12 FT, TM N 00-13-24 W 663.61 FT TO BEG 4.85 A
2/9/89 FR 14-19-351-007
I. Parcel I.D. Number: 14-30-251-002 - Property Description -
Oakland Pte. West (City of Pontiac):
T3N, R10E, SEC 30 PART OF NW 1/4 BEG AT PT DIST S 89-15-33 E
50 FT & S 00-13-24 E 1200 FT & S 89-15-33 E 1800 FT & S 00-
13-24 E 475 FT & S 89-15-33 E 462.53 FT FROM SW COP OF SEC
19, TH S 89-15-33 E 344.87 FT, TM S 00-44-27 W 637.22 FT, TH
S 88-41-41 W 123.06 FT, TM S 88-15-41 W 162.21 FT, TH N 00-
13-24 W 331.40 FT, TH N 45-13-24 W 69.17 FT, TM N 00-13-24 W
269.23 FT TO BEG 4.62 A 9/7/89 FR 14-19-351008
J. Parcel I.D. Number: 20-32-226-010 - Property Description -
S. Oakland Bldg. (City of Troy):
T2N, R11E, SEC 32 OAKWOOD INDUSTRIAL PARK LOT 7
K. Parcel I.D. Number: 24-13-426-004 - Property Description -
South Oakland Health (City of Southfield):
T1N, R10E, SEC 13 OAKLAND GARDENS SUB PART OF LOT 23, ALSO
ALL OF LOTS 24 TO 43 INCL, ALSO PART OF LOTS 44 TO 60 INCL,
ALSO PART OF LOT 211, ALSO ALL OF LOTS 212 TO 218 INCL, ALSO
PART OF LOT 219, ALSO ALL OF LOTS 309 TO 312 INCL, ALSO PART
OF LOTS 313 TO 316 INCL, ALSO ALL VAC STREETS & ALLEYS LOC
WITHIN THE FOL DESC PCL BEG AT PT DIST N 01-03-00 W 488.78
FT & S 88-13-00 W 7 FT FROM SE COP. OF LOT 84 OF SD 'PLAT',
TM S 88-13-00 W 658.44 FT, TH N 01-03-00 W 330.04 FT, TM N
88-13-00 E 658.44 FT, TM S 01-03-00 E 330.04 FT TO BEG 3-10-
09 FR 001
6
IV. PRELIMINARY PROJECT COST ESTIMATE:
All Project Costs including Financing
Costs, Bond Discount and Contingency S19,325,000.00
las.rl-oak240
7
APPENDIX III
FORM OF DECLARATION
OF OFFICIAL INTENT
I, the undersigned of the County of Oakland,
Michigan, do hereby certify as follows:
1. I am an officer of the County authorized to declare
official intent of the County to reimburse expenditures made,
prior to the issuance of debt, from the proceeds of Said debt.
2. This Declaration relates to the following expenditures
(the "Expenditures"):
Amount General Purpose
3. The Expenditures are with respect to property (the
"Property") having:
(A) the following general character, type or purpose:
(B) the following size, quantity or cost:
and
(C) a reasonably expected economic life at least one
(1) year.
4. I understand that a substantial deviation between the
above description of the Property for which the Expenditures are
being made and the actual Property which is acquired or
constructed will invalidate this declaration of official intent
with the result that any proceeds of tax-exempt debt which are
used to reimburse for the Expenditures will not be deemed to have
been expended upon such reimbursement.
5. The County intends to reimburse the Expenditures by
incurring taxable or tax-exempt debt (the "Reimbursement
Obligations").
6. The expected source of funds that will be used to pay
the Expenditures is as follows: issuance of up to - of
Building Authority Bonds by the Oakland County Building
Authority.
7. The expected source of funds to be used to pay debt
service on the Reimbursement Obligation is as follows: payment
made by the Oakland County through the
Oakland County General Fund.
8. This declaration of intent is consistent with the
budgetary and financial circumstances of the County as of the
date hereof in that there are no funds which are now or are
reasonably expected to be, (A) allocated on a long-term basis,
(B) reserved or (C) otherwise available pursuant to the County's
budget, to pay the Expenditure.
9. The County does not have a pattern of failure to
reimburse expenditures for which official intent has been
declared in that at least seventy-five percent (75%) of all
expenditures made after , for which the County has
declared an intent to reimburse from the proceeds of taxable or
tax-exempt debt have been, or are expected to be, so reimbursed.
10. I acknowledge that in the event that the County fails
to use the proceeds of Reimbursement Obligations issued within
three (3) years of the date hereof to reimburse expenditures the
same may adversely affect the ability of the County to use the
proceeds of tax-exempt obligations in the future to reimburse for
expenditures made prior to the issuance of such obligations.
11. I further acknowledge that unless the Expenditures
constitute preliminary expenditures (in the nature of architect
services and soil testing but excluding land acquisition) for the
Property not in excess of ten percent (10%) of the expected cost
of the project of which the Property constitutes a part, the
Expenditures will be paid within not in excess of two (2) years
following the date hereof or, as an alternative, this declaration
of intent will be renewed.
12. I further acknowledge that it is expected that the
proceeds of Reimbursement Obligations will be - used for
reimbursement of each Expenditure not later than (A) the date
that is one (1) year after the date on which such Expenditure is
paid or (B) the date that is one (I) year after the date on which
the Property is placed in service.
13. I further acknowledge that I will assure that the
allocation referenced in item 12 (A) will be evidenced by an
entry on the records of the County maintained with respect to the
Reimbursement Obligations, (B) will specifically identify the
Expenditure being reimbursed, and (C) on the advice of the
appropriate counsel will be sufficient to relieve the allocated
proceeds of the Reimbursement Obligations covered by such entry
from any restrictions under the relevant legal documents and
applicable state law that apply only to unspent proceeds of
Reimbursement Obligations.
14. I further acknowledge that I will assure that except as
referenced in item 15 the proceeds of the Reimbursement
Obligations that are used to reimburse the Expenditures will not
be used, directly or indirectly, (A) to pay debt service on an
issue of tax-exempt obligations, (13) to create or increase the
balance in a sinking fund established for the payment of debt
service on the Reimbursement Obligations or another issue of tax-
exempt obligations of the County or to replace funds that have
been, are being, or will be so used for reserve or replacement
fund purpose, or (D) to reimburse any expenditures or any payment
with respect to financing of an expenditure that was originally
paid with proceeds of any tax-exempt obligations of the County to
any person or entity other than the County.
15. I understand that item 14 does not prohibit the use of
those proceeds of the Reimbursement Obligations that are used to
reimburse the Expenditures for (A) deposit in a bona fide debt
service fund (that is, a fund established to pay debt service on
any tax-exempt obligation of the County, other than the
Reimbursement Obligation, which is depleted annually except for a
reasonable carry over amount not in excess of one (1) year's
interest earnings on said fund or one-twelfth (1/12th) of annual
debt service), (B) to pay current debt service coming due within
the next succeeding one-year period on any tax-exempt obligation
of the County, other than the Reimbursement Obligations, or (C)
to reimburse for expenditures originally made from the proceeds
of a tax-exempt obligation of the County which were not
reasonably expected by the County, on the date of issue of such
obligation, to be used for such expenditure.
IN WITNESS WHEREOF, the undersigned has executed this
declaration of official intent this day of
County
lasrl-oak240
Resolution #12100 April 18, 2012
The Chairperson referred the resolution to the Finance Committee. There were no objections.
FISCAL NOTE (MISC. #12100) May 2, 2012
BY: FINANCE COMMITTEE, TOM MIDDLETON, CHAIRPERSON
IN RE: BUILDING AUTHORITY - RESOLUTION AUTHORIZING THE OAKLAND COUNTY BUILDING
AUTHORITY TO FINANCE A PROJECT TO MAKE INFRASTRUCTURE CAPITAL IMPROVEMENTS
AND INFORMATION TECHNOLOGY CAPITAL IMPROVEMENTS LOCATED IN OAKLAND COUNTY,
MICHIGAN
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed the above referenced
Miscellaneous Resolution and finds:
1. The resolution authorizes the Board of Commissioners to pledge the full faith and credit of the
County of Oakland for the payment of principal and interest on Building Authority bonds for the
purpose of infrastructure capital improvements and information technology capital improvements
as well as authorizes a lease contract between the County of Oakland and the Oakland County
Building Authority.
2. One or more series of bonds in the aggregate principal amount not to exceed $19,325,000 may
be issued at an interest rate not to exceed 8% per annum.
3 The statutory limit for County debt is $5,245,346,034 (10% of current State Equalized Value). As
of April 6, 2012, the total outstanding County pledged credit is $259,290,773 or approximately
.49% of the S.E.V.
4. Funding for the principal and interest payments by the County will be provided by the Oakland
County General Fund; the annual debt service amounts will be included in the County Executive's
FY 2013— FY 2015 budget recommendation.
5. No budget amendment is required at this time.
FINANCE COMMITTEE
FINANCE COMMITTEE
Motion carried unanimously on a roll call vote,
1'.4BY APPROVE THE FOREGOING RESOLUTION
10 1973 PA '.39
Resolution #12100 May 2, 2012
Moved by Long supported by Woodward the resolutions (with fiscal notes attached) on the Consent
Agenda be adopted (with accompanying reports being accepted).
AYES: Dwyer, Gershenson, Gingell, Gosselin, Hatchett, Hoffman, Jackson, Long, Matis, McGillivray,
Middleton, Nash, Nuccio, Potts, Quarles, River, Runestad, Scott, Taub, Weipert, Woodward, Zack,
Bosnic, Covey. (24)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the Consent
Agenda be adopted (with accompanying report accepted).
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Bill Bullard Jr., 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 May 2,
2012, with the original record thereof now remaining in my office,
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at
Pontiac, Michigan this 2nd day of May, 2012.
094,
Bill Bullard Jr., Oakland County