HomeMy WebLinkAboutResolutions - 2012.11.28 - 20625MISCELLANEOUS RESOLUTION#12298 November 28, 2012
BY: Finance Committee, Tom Middleton, Chairperson
IN RE: RESOLUTION AUTHORIZING THE INSERTION OF NOTICE OF
INTENTION OF THE COUNTY OF OAKLAND TO ISSUE RETIREES HEALTH CARE
REFUNDING BONDS
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
WHEREAS, the Board of Commissioners (the "Commission") of
the County of Oakland, Michigan (the "County"), wishes to issue
bonds for the purpose of refunding a contract obligation which
provided funding for the Health Care Trust Fund which was
established to pay post-employment health care benefits for
public employee retirees of the County as described in EXHIBIT A
attached hereto (the "Refunding Project"), pursuant to the terms
of Section 518 of Act No. 34, Public Acts of Michigan, 2001 as
amended ("Act 34"); and
WHEREAS, in order to refund this contract obligation and
expedite the Refunding Project and the issuance of the County of
Oakland Retirees Health Care Refunding Bonds (the "Refunding
Bonds"), it is necessary to insert a Notice of Intention of the
County of Oakland to Issue Retirees Health Care Refunding Bonds
pursuant to Act 34 in the Oakland Press, Pontiac, Michigan; and
WHEREAS, there has been prepared and attached hereto as
APPENDIX I a form of notice entitled "NOTICE OF INTENTION OF THE
COUNTY OF OAKLAND TO ISSUE RETIREES HEALTH CARE REFUNDING BONDS
AND NOTICE OF RIGHT TO PETITION FOR REFERENDUM THEREON" (the
"Notice of Intention"); and
WHEREAS, the Oakland County Clerk shall be authorized to
insert the attached form of Notice of Intention in the Oakland
Press, Pontiac, Michigan.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
COMMISSIONERS OF THE COUNTY OF OAKLAND, MICHIGAN, AS FOLLOWS:
1. Approval of Plans: The preliminary plans and estimates
relating to the Refunding Project and identified in EXHIBIT A
attached hereto are hereby approved and ordered filed with the
County Clerk.
2. Insertion of Notice of Intent: 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 obligations to be undertaken by the County by
the issuance of the Retirees Health Care Refunding Bonds and of
their right under Act 34 to file a petition requesting a
referendum election on the issuance of the Retirees Health Care
Refunding Bonds.
FINANCE COMMITTEE
Motion carried on a roll call vote with Potts, Zack and Woodward voting no.
3. Form of Notice of Intent: The form and content of the
Notice of Intention as set forth in Appendix I, are hereby
approved, and the Oakland 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 inserted in an
advertisement at least one-quarter of a page in size.
4. Retention of Bond Counsel. The firm of Axe & Ecklund,
P.C., attorneys of Grosse Pointe Farms, Michigan, is hereby
retained to act as bond counsel for the County in connection
with the issuance, sale and delivery of the Refunding Bonds.
5. Retention of Financial Consultants. The financial
consultant and advisor to the county in connection with the sale
and delivery of the Refunding Bonds shall be selected based upon
a competitive Request for Proposal process administered by the
Purchasing Division.
6. Referendum Period: The referendum period within which
voters and taxpayers shall have the right to circulate petitions
is 45 days after publication of the notice of intention
authorized in paragraph 2.
7. Conflicting Resolutions. All resolutions and parts of
resolutions in conflict with the foregoing are hereby rescinded.
8. Effective Date. This Resolution shall become
effective immediately upon its adoption and the signature of the
Oakland County Executive indicating his approval and shall be
recorded in the minutes of the County as soon as practicable
after adoption.
Chairperson, on behalf of the Finance Committee I move the
adoption of the foregoing resolution.
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STATE OF MICHIGAN
)ss.
COUNTY OF OAKLAND
CERTIFICATION
The undersigned, being the Clerk of the County of Oakland,
hereby certifies that the foregoing is a true' and complete copy
of a resolution duly adopted by the County of Oakland Board of
Commissioners at its meeting held on the
day of 20 , at which meeting a quorum was
present and remained throughout and that an original thereof is
on file in the records of the County. I further certify that
the meeting was conducted, and public notice thereof was given,
pursuant to and in full compliance with Act No. 267, Public Acts
of Michigan, 1976, as amended, and that minutes of such meeting
were kept and will be or have been made available as required
thereby.
COUNTY CLERK
DATED: , 20
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EXHIBIT A
Refunding Project Description
The Refunding Project consists of a plan to refund- a long-term
contract Obligation which was entered into to pre-fund long-term
retiree health care obligations and other post-employment
benefits paid on behalf of Oakland . County employees who retire
from County service and who have the adequate vesting and
service benefit level requirements. Public .Act No. 329 of the
Public Acts of Michigan of 2012, which amends Public Act No. 34
of the Public Acts of Michigan of 2001 enables the County to
issue general obligation bonds for the purpose of refunding
contract obligations of the County to the 2007 Oakland County
Medical Benefits Funding Trust which Trust issued Taxable
Certificates of Participation, Series 2007. As a result of
Oakland County's AAA bond rating and based on market conditions,
the estimated average annual interest rate which will be secured
for the outstanding long-term contract obligation is expected to
be significantly less than the current interest rate on the
County's long term contract obligation to the 2007 Oakland
County Medical Benefits Funding Trust and will result in
significant savings to the County in the future which are
currently estimated to be in excess of $100,000,000.
Cost Estimates
Funds to be deposited with Escrow Agent
& Financing Costs (Including Bond
Discount and Contingency) $485,000,000
Maximum amount of Refunding Bonds to be issued: $485,000,000
Maximum term of bond issue: 16 years
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APPENDIX I
NOTICE OF INTENTION OF THE COUNTY OF OAKLAND
TO ISSUE NOT TO EXCEED $485,000,000 IN
RETIREES HEALTH CARE REFUNDING BONDS 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"), will authorize
the issuance of not to exceed $485,000,000 in Retirees Health
Care Refunding Bonds to provide for the refunding of the
contract debt issued by the County which provided the increased
funding of the Health Care Trust Fund which has been established
to pay post-employment health care benefits for public employee
retirees of the County as described in Exhibit A below (the
"Refunding Project"). The Bond Resolution will provide further
that the County will finance and refinance one hundred percent
(100%) of the total cost of the Refunding Project by the
issuance of one or more series of Retirees Health Care Refunding
Bonds (the "Refunding Bonds") pursuant to the provisions of
Section 518 of Act No. 34, Public Acts of Michigan, 2001, as
amended ("Act 34"). The maximum amount of Refunding Bonds to be
issued in one or more series shall not exceed $485,000,000, the
term of the Refunding Bonds shall not exceed 16 years and the
Refunding Bonds shall bear interest at a rate or rates that will
result in a maximum net interest rate of not more than 4.75% per
annum. The maximum Refunding Project cost is estimated at not
to exceed $485,000,000.
FULL FAITH AND CREDIT AND TAXING POWER OF
THE COUNTY OF OAKLAND WILL BE PLEDGED
NOTICE IS FURTHER GIVEN that in the Bond Resolution the
County will obligate itself to make payments to the bond holders
in amounts sufficient to pay the principal of and interest on
the Refunding Bonds. The limited tax full faith and credit of
the County will be ,pledged for the making of such bond 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 bond
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 payments on
the Refunding Bonds, the County will agree in the Bond
Resolution to pay all costs and expenses of operation and
maintenance of the Refunding Project and all expenses of the
County incidental to the issuance and payment of the Refunding
Bonds, to the extent such expenses are not payable from the
proceeds of the Refunding 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 on the question of issuing the Refunding Bonds, The
County intends to issue the Refunding Bonds without a vote of
the electors thereon. If, within 45-days after publication of
this notice, a petition for referendum requesting an election on
the Refunding Bonds, 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 Refunding Bonds shall not
be issued 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 34. Further information may be obtained at the
office of the Oakland County Clerk, County Service Center,
Building #12 East, 1200 N. Telegraph, Pontiac, Michigan 48341.
EXHIBIT A
Refunding Project Description
The Refunding Project consists of a plan to refund a long-term
contract obligation which was entered into to pre-fund long-term
retiree health care obligations and other post-employment
benefits paid on behalf of Oakland County employees who retire
from County service and who have the adequate vesting and
service benefit level requirements. Public Act No. 329 of the
Public Acts of Michigan of 2012, which amends Public Act No. 34
of the Public Acts of Michigan of 2001 enables the County to
issue general obligation bonds for the purpose of refunding
contract obligations of the County to the 2007 Oakland County
Medical Benefits Funding Trust which Trust issued Taxable
Certificates of Participation, Series 2007. As a result of
Oakland County's AAA bond rating and based on market conditions,
the estimated average annual interest rate which will be secured
for the outstanding long-term contract obligation is expected to
be significantly less than the current interest rate on the
County's long term contract obligation to the 2007 Oakland
County Medical Benefits Funding Trust and will result in
significant savings to the County in the future which are
currently estimated to be in excess of $100,000,000.
Cost Estimates
Funds to be deposited with an Escrow
Agent which will make payments necessary
to permit the refunding of the contract
Obligations & Financing Costs (Including
Bond Discount and Contingency) $485,000,000
Maximum amount of Refunding Bonds to be issued: $485,000,000
Maximum term of bond issue: 16 years
BILL BULLARD, JR.
COUNTY CLERK
DATED: [Date of Publication]
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Resolution #12298 November 28, 2012
Moved by Middleton supported by Quarles the resolution be adopted.
AYES: Dwyer, Gingell, Gosselin, Hoffman, Long, Matis, Middleton, Nuccio, Potts, River,
Runestad, Scott, Taub, Weipert, Bosnic, Covey, Crawford. (17)
NAYS: Gershenson, Hatchett, Jackson, McGillivray, Nash, Quarles, Woodward, Zack. (8)
A sufficient majority having voted in favor, the resolution was adopted.
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 November
28, 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 28th day of November, 2012.
13)J.J2 el),1 j14
Bill Bullard Jr., Oakland County