HomeMy WebLinkAboutResolutions - 2012.11.28 - 20626MISCELLANEOUS RESOLUTION#12299 November 28, 2012
BY: Finance Committee, Tom Middleton, Chairperson
IN RE: BOND RESOLUTION AUTHORIZING THE COUNTY OF OAKLAND TO
ISSUE THE COUNTY OF OAKLAND RETIREES HEALTH CARE REFUNDING
BONDS, SERIES 2013 (GENERAL OBLIGATION LIMITED TAX)
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
WHEREAS the County of Oakland, Michigan (the "County")
provides post-retirement medical benefits to qualified retirees
and/or their spouses and dependents, as provided by the Oakland
County Merit System and its policies; and
WHEREAS, as permitted by Federal and State laws the County
established a Voluntary Employees' Beneficiary Association
("VEBA") to fund health care for qualified County retirees; and
WHEREAS, on July 31, 2007, the county entered into an
Indenture which established the 2007 Oakland County Retirees
Medical Benefits Funding Trust (the "Funding Trust") which
issued $566,985,000 of Taxable Certificates of Participation
payable from contract payments from the County to be made
pursuant to a 2007 Oakland County Retirees Medical Benefits
Contract (the "Contract") between the County and the Funding
Trust; and
WHEREAS, an amendment to Public Act No. 34 of the Public
Acts of 2001, as amended ("Act 34") enacted in October of 2012
permits the County to issue refunding bonds for the purpose of
providing funds to refund the County's contract obligations
under the Contract which is described in Appendix A (the
Refunding Project"); and
WHEREAS, on June 14, 2007 the Board approved the County's
entering into the 2007 Oakland County Intermediate Trust
Agreement (the "Intermediate Trust) a copy of which is attached
to this resolution as Appendix B, which was entered into July
31, 2007 which provides for the following:
"In the event that any other health care benefits plan,
program or arrangement becomes effective during the
remainder of the Funding Period with the effect of
supplanting and superseding the County's obligations to
pay for all of the costs of providing Retiree Medical
Benefits (the "Optional Prepayment Trigger"), the
Intermediate Trust will have fulfilled its designated
purpose, and then (i) all, or the applicable portion, (as
the case may be), of the then existing assets of the
FINANCE COMMITTEE
Motion carried on a roll call vote with Zack and Woodward
voting no.
Intermediate Trust, to the extent no longer needed to pay
future costs of providing Retiree Medical Benefits, shall
be deemed "Surplus Intermediate Trust Assets," and (ii) if
the County; at its option and in its sole discretion,
gives written, notice to the trustee of the Funding Trust
(the "Funding Trustee"), with a copy to the Intermediate
Trustees, of the County's irrevocable election to
optionally redeem all or a portion (to the extent of the
available Surplus Intermediate Trust Assets) of the then
outstanding principal amount of the Certificates through
an Optional Prepayment under and as defined in the
Contract, then the Intermediate Trustees shall (x)
transfer all or a portion (as the case may be) of the
available Surplus Intermediate Trust Assets to the Funding
Trustee as such optional prepayment (the "Optional
Prepayment") for and on behalf of the County and (y)
promptly give written notice thereof to the County."
WHEREAS, the County's Health Care Benefits Program (the
"Program") a copy of which is attached hereto as Appendix C will
have the effect of supplanting and superseding the County's
obligation to pay for all of the costs of providing Medical Care
Benefits in the next fifteen years; and
WHEREAS, it has been estimated that the Program will extend
for approximately 15 years and that the cost of the Retirees
Health Care Program and issuing the Refunding Bonds will not
exceed $485,000,000 to be provided by the proceeds from the sale
of Refunding Bonds by the County pursuant to Act -34; and
WHEREAS, under the Indenture which established the Funding
Trust once the Program is in effect the Intermediate Trust will
have fulfilled its designated purpose and the then existing
assets of the Intermediate Trust to the extent no longer needed
to pay future costs of providing Retiree Medical Benefits are
available for the County at its option to irrevocably elect to
redeem all or a portion of the then outstanding principal amount
of the Certificates of Participation issued by the Funding Trust
on July 31, 2007; and
WHEREAS, the County estimates that by entering into the
Refunding the County will be saving in excess of $100,000,000
over the next fifteen years; and
WHEREAS, the County Executive will, before the County
issues any series of the Refunding Bonds, prepare and make
available to the public a comprehensive plan which will include
all of the requirements set forth in Section 518 subsection (4)
of Act 34; and
WHEREAS, the County proposes to approve the Retirees Health
Care Program and to incur new taxable debt to finance a portion
of the costs of the Retirees Health Care Program.
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NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
COMMI S SIONERS OF THE COUNTY OF OAKLAND, MICHIGAN, AS FOLLOW:
1. Bond Details: Pursuant to Section 518 of Act 34, the
Refunding Bonds of the County, aggregating not to exceed the
principal sum of $48 .5,000,000, shall be issued in one or more
series for the purpose of defraying the County's portion of the
cost of the Refunding Project. The Refunding Bonds shall be
known as "County of Oakland Retirees Health Care Refunding
Bonds, Series 2013 [and if more, than one series is issued the
additional series shall be designated by the date 2013 and the
letter of the alphabet starting with "A"] (General Obligation
Limited Tax)" (the "Refunding Bonds") and shall be dated March
1, 2013 or such later date not more than eighteen calendar
months thereafter as the Oakland County Executive or his
designee hereafter (the "County Executive") shall provide by
order. If the Refunding Bonds are delivered in 2014 the series
shall reflect that year. The Refunding Bonds shall be fully
registered Refunding Bonds, both as to principal and interest,
in any one or more denominations of $5,000 or a multiple of
$5,000 numbered from 1 upwards as determined by the County
Executive, regardless of rate and maturity date. The Refunding
Bonds of each series shall mature as directed by the County
Executive or his designee in his signed order.
The maximum amount of Refunding Bonds in one or more series
shall not exceed the amount necessary for the County to complete
the Refunding.
The Refunding Bonds .shall be in substantially the form
attached hereto as EXHIBIT A with such changes, additions or
deletions as are not inconsistent with this resolution.
Once the County Executive signs an order for any series of
bonds, the official Notice of Sale attached as EXHIBIT B shall
be completed in accordance with such order.
2. Discount: The Refunding Bonds may be offered for sale
at a price of not less than 99% of the face amount thereof, and
the County Executive is authorized, in his discretion, to
provide for a higher minimum purchase price in the Notice of
Sale for the Refunding Bonds.
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34 Interest Payment and Date of Record: The Refunding
BondS shall bear interest payable as set forth in the order
signed by the County Executive in accordance with paragraph 1 of
this resolution, which interest shall not exceed 4.75% per
annum. Interest shall be paid by check or draft mailed to the
registered owner of each Bond as of the applicable date of
record, provided, however, that the County Treasurer may agree
with the bond registrar on a different method of payment. If
interest is paid differently, the Bond form attached as EXHIBIT
A and Notice of Sale form attached as EXHIBIT B shall be changed
accordingly.
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The date of record for each interest payment shall be the
15th day of the calendar month preceding the date such payment
is due.
4. Prior Redemption: The Refunding Bonds shall , be
subject to redemption prior to maturity upon such terms and
conditions as shall be determined by order signed by the County
Treasurer and the County Executive at the time of sale.
5. Reduction in Aggregate Amount of Refunding Bonds: In
the event the cost of issuing the Refunding Bonds shall be less
than the current projections and after this bond resolution has
been adopted it shall be determined by the County Executive that
the Refunding Project cost shall be less than such estimates,
the County Executive shall reduce the principal amount of the
Refunding Bonds by $5,000 denominations one such denomination
for each maturity in any order of maturity, to the extent
required to avoid the issuance of more Refunding Bonds than will
be required in light of the bids received, and the Notice of
Sale shall be correspondingly altered.
6. Bond Registrar and Paying Agent/Book Entry Depository
Trust: The County Treasurer shall designate, and may enter into
an agreement with, a bond registrar and paying agent for the
Refunding Bonds (sometimes referred to as the "Bond Registrar")
which shall be a bank or trust company located in the State Of
Michigan which is qualified to act in such capacity under the
laws of the United States of America or the State of Michigan.
The County Treasurer from time to time as required may designate
a similarly qualified successor bond registrar and paying agent.
The Refunding Bonds shall be deposited with a depository trustee
designated by the County Treasurer who shall transfer ownership
of interests in the Refunding Bonds by book entry and who shall
issue depository trust receipts or acknowledgments to owners of
interests in the Refunding Bonds. Such book entry depository
trust arrangement, and the form of depository trust receipts or
acknowledgments, shall be as determined by the County Treasurer
after consultation with the depository trustee. The depository
trustee may be the same as the Bond Registrar otherwise named by
the County Treasurer, and the Refunding Bonds may be transferred
in part by depository trust and in part by transfer of physical
certificates as the County Treasurer may determine.
7. Transfer or Exchange of Refunding Bonds: Any bond
shall be transferable on the bond register maintained by the
Bond Registrar with respect to the Refunding Bonds upon the
surrender of the Bond to the Bond Registrar together with an
assignment executed by the registered owner or his or her duly
authorized attorney in form satisfactory to the Bond Registrar.
Upon receipt of a properly assigned Bond the Bond Registrar
shall authenticate and deliver a new Bond or Refunding Bonds in
equal aggregate principal amount and like interest rate and
maturity to the designated transferee or transferees.
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Refunding Bonds may likewise be exchanged for one or more
other Refunding Bonds with the same interest rate and maturity
in authorized denominations aggregating the same principal
amount as the Bond or Refunding Bonds being exchanged. Such
exchange shall be effected by surrender of the Bond to be
exchanged to the Bond Registrar with written instructions signed
by the registered owner of the Bond or his or her attorney in
form satisfactory to the Bond Registrar. Upon receipt of a Bond
with proper written instructions the Bond Registrar shall
authenticate and deliver a new Bond or Refunding Bonds to the
registered owner of the Bond or his or her properly designated
transferee or transferees or attorney.
Any service charge made by the Bond Registrar for any such
registration, transfer or exchange shall be paid for by the
County, unless otherwise agreed by the County and the Bond
Registrar. The Bond Registrar may, however, require payment by
a bondholder of a sum sufficient to cover any tax or other
governmental charge payable in connection with any such
registration, transfer or exchange.
8. Mutilated, Lost, Stolen or Destroyed Refunding Bonds:
In the event any Bond is mutilated, lost, stolen or destroyed,
the Chairperson of the Board of Commissioners and the Clerk of
the County may, on behalf of the County, execute and deliver, a
new Bond having a number not then outstanding, of like date,
maturity and denomination as that mutilated, lost, stolen or
destroyed.
In the case of a mutilated Bond, a replacement Bond shall
not be delivered unless and until such mutilated Bond is
surrendered to the Bond Registrar. In the case of a lost,
stolen or destroyed Bond, a replacement Bond shall not be
delivered unless and until the County and the Bond Registrar
shall have received such proof of ownership and loss and
indemnity as they determine to be sufficient, which shall
consist at least of (i) a lost instrument Bond for principal and
interest remaining unpaid on the lost, stolen or destroyed Bond;
(ii) an affidavit of the registered owner (or his or her
attorney) setting forth ownership of the Bond lost, stolen or
destroyed and the circumstances under which it was lost, stolen
or destroyed; (iii) the agreement of the owner of the Bond (or
his or her attorney) to fully indemnify the County and the Bond
Registrar against loss due to the lost, stolen or destroyed Bond
and the issuance of any replacement Bond; and (iv) the agreement
of the owner of the Bond (or his or her attorney) to pay all
expenses of the County and the Bond Registrar in connection with
the replacement, including the transfer and exchange costs which
otherwise would be paid by the County.
9. Execution and Delivery: The Chairperson of the Board
of Commissioners and the Clerk of the County are hereby
authorized and directed to execute the Refunding Bonds for and
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on behalf of the County by manually executing the same or by
causing their facsimile be affixed. If fac s imil e
signatures are used, the Refunding Bonds shall be authenticated
by the Bond Registrar before delivery. The Refunding Bonds
shall be sealed with the County's seal or a facsimile thereof
shall be imprinted thereon. When so executed and (if facsimile
signatures are used) authenticated, the Refunding Bonds shall be
delivered to the County Treasurer, who is hereby authorized and
directed to deliver the Refunding Bonds to the purchaser upon
receipt in full of the purchase price for the Refunding Bonds.
10. Source of Repayment: The County agrees to pledge for
the repayment of the Refunding Bonds sufficient amounts of
County taxes levied each year provided that the amount of taxes
necessary to pay the principal and interest on the Refunding
Bonds, together with the other taxes levied for the same year,
shall not exceed the limit authorized by law. In addition, the
Refunding Bonds shall be secured by the General Fund of the
County and shall be known as "General Obligation Limited Tax
Refunding Bonds."
11. Principal and Interest Fund: All monies set aside by
the County toward the cost of the Refunding Project shall be
kept by the County in a separate fund hereby established, to be
known as the "Principal and Interest Fund." All moneys in the
Principal and Interest Fund shall be kept in a separate
depository account with one or more banks or trust companies
where the principal of and interest on the Refunding Bonds are
payable, and such moneys shall be used solely for the payment of
the principal of and interest on the Refunding Bonds and
expenses incidental thereto. All accrued interest and the
premium, if any, received from the purchaser of the Refunding
Bonds shall be deposited in the Principal and Interest Fund upon
receipt. Capitalized interest, as determined pursuant to
Section 6, shall be deposited in the Principal and Interest
Fund.
12. Refunding Project Fund: There is hereby established a
Refunding Project Fund into which all proceeds of the borrowing
shall be deposited, except the accrued interest on the Refunding
Bonds and premium, if any, received from the purchaser of the
Refunding Bonds and any capitalized interest. All moneys in the
Refunding Project Fund shall be used solely for the payment in
full of costs of the Refunding Project, including the costs of
issuing the Refunding Bonds. At the time of delivery of any
series of Refunding Bonds the proceeds deposited into the
Refunding Project Fund shall on the same date be transferred an
Escrow Agent who will distribute the amounts needed to carry out
the Refunding Project and the Program to the VEBA and the
Intermediate Trust and pay the costs of issuance for any series
of Refunding Bonds. Surplus moneys remaining in the Refunding
Project Fund after completion of the Refunding Project and
payment in full of the costs of the Refunding Project (or
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provision for such payment) shall be deposited in the Principal
and Interest Fund.
13. Investments: Moneys in the Principal and Interest
Fund and the Project Fund may be continuously invested and
reinvested in the United States government obligations,
obligations the principal of and interest on which are
unconditionally guaranteed by the United States government, or
in interest-bearing time deposits selected by the County
Treasurer which are permissible investments for surplus funds
under Act No. 20 of the Public Acts of 1943, as amended. Such
investments shall mature, or be subject to redemption at the
option of the holder, not later than (a) in the case of the
Principal and Interest Fund, the dates moneys in such fund will
be required to pay the principal of and interest on the
Refunding Bonds, and (b) in the case of the Project Fund, the
estimated dates when moneys in such fund will be required to pay
costs of the Refunding Project. Obligations purchased as an
investment of moneys in the Principal and Interest Fund or the
Project Fund, as the case may be, shall be deemed at all times
to be a part of such fund, and the interest accruing thereon and
any profit realized from such investment shall be credited to
such fund.
14. Depositories: All of the banks located in the State
of Michigan are hereby designated as permissible depositories of
the moneys in the funds established by this Resolution. The
County Treasurer shall select the depository or depositories to
be used from those banks authorized in this Section.
15. Defeasance or Redemption of Refunding Bonds: If at
any time,
(a) the whole amount of the principal of and interest
on all outstanding Refunding Bonds shall be paid,
or
(b) (i) sufficient moneys, or Government Obligations
(as defined in this Section) not callable prior
to maturity, the principal of and interest on
which when due and payable will provide
sufficient moneys, to pay the whole amount of the
principal of and premium, if any, and interest on
all outstanding Refunding Bonds as and when due
at maturity or upon redemption prior to maturity
shall be deposited with and held by a trustee or
an escrow agent for the purpose of paying the
principal of and premium, if any, and interest on
such Refunding Bonds as and when due, and (ii) in
the case of redemption prior to maturity, all
outstanding Refunding Bonds shall have been duly
called for redemption (or irrevocable
- instructions to call such Refunding Bonds for
redemption shall have been given)
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then, at the time of the payment referred to in clause (a) of
this Section or of the deposit referred to in clause (b) of this
Section, the County shall be released from all further
obligations under this resolution, and any moneys or other
assets then held or pledged pursuant to this resolution for the
purpose of paying the principal of and interest on the Refunding
Bonds (other than the moneys deposited with and held by a
trustee or an escrow agent as provided in clause (b) of this
Section) shall be released from the conditions of this
resolution, paid over to the County and considered excess
proceeds of the Refunding Bonds. In the event moneys or
Government -Obligations shall be so deposited and held, the
trustee or escrow agent holding such moneys or Government
Obligations shall, within 30 days after such moneys or
Government Obligations shall. have been so deposited, cause a
notice signed by it to be given to the registered holders
thereof not more than sixty (60) days and nor less than forty-
five (45) days prior to the redemption setting forth (x) the
date or dates, if any, designated for the redemption of the
Refunding Bonds, (y) a description of the moneys or Government
Obligations so held by it and (z) that the County has been
released from its obligations under this resolution. All moneys
and Government Obligations so deposited and held shall be held
in trust and applied only to the payment of the principal of and
premium, if any, and interest on the Refunding Bonds at maturity
or upon redemption prior to maturity, as the case may be, as
provided in this Section.
The trustee or escrow agent referred to in this Section
shall (a) be a bank or trust company permitted by law to offer
and offering the required services, (b) be appointed by
resolution of the County, and (c) at the time of its appointment
and so long as it is serving as such, have at least $25,000,000
of capital and unimpaired surplus. The same bank or trust
company may serve as trustee or escrow agent under this Section
and as Bond Registrar so long as it is otherwise eligible to
serve in each such capacity.
As used in this Section, the term "Government Obligations"
means direct obligations of, or obligations the principal of and
interest on which are unconditionally guaranteed by, the United
States of America.
16. Filing with Municipal Finance Division: The County
Executive is authorized and directed to:
(a) apply to the Municipal Finance Division of the
Michigan Department of Treasury for approval of
the sale of the Refunding Bonds;
(b) file with such application all required
supporting material; and
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(c) pay all fees required in connection therewith.
17. Notice of Sale: Sealed bids for the purchase of the
Refunding Bonds shall be accepted up to a time to later be
determined by the County Treasurer. Notice of the sale shall be
published once in accordance with law in the Bond Buyer, in
substantially the form attached as EXHIBIT B to this Resolution.
The County Treasurer, after conferring with Bond Counsel, may
make such changes to the attached Notice of Sale, or cause it to
be published in additional publications, as he deems
appropriate.
18. Award of the Refunding Bonds. Once all bids are
received, the County Treasurer and the County Executive or his
designee are authorized to jointly award the Refunding Bonds to
the bidder who bid produces the lowest true interest cost to the
County by signing an order in the form attached hereto as
EXHIBIT C.
19. Approval of Expenditures. The County Executive or his
designee shall have the authority to approve all expenditures
relating to the Refunding Project.
20. Completion of Attached Forms. The County Executive or
his designee or the County Treasurer are authorized fill in the
blanks in EXHIBIT A - Form of Bond, EXHIBIT B - Form of Notice
of Sale, and EXHIBIT C - Award Order prior to executing and
filing these documents with the Oakland County Clerk.
21. Comprehensive Health Care Plan. Before the County
issues any series of the Refunding Bonds, the County Executive
or his designee shall prepare and make available to the Public
by filing in the office of the County Clerk and posting on the
County's web-site all of the following:
(a) An analysis of the current and future obligations of
the County with respect to each postemployment health care
benefit program of the County.
(b) Evidence that the issuance of the municipal security
together with other funds lawfully available will be
sufficient to eliminate the unfunded accrued health care
liability.
(c) A debt service amortization schedule and a description
of actions required to satisfy the debt service
amortization schedule.
(d) A certification by the person preparing the plan that
the comprehensive financial plan is complete and accurate.
(e) If the proceeds of the borrowing are to be deposited
in a health care trust fund, a plan in place from the
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County to mitigate the increase in health care costs and
may include a wellness program that promotes the
maintenance or improvements of healthy behaviors.
22. Escrow Agreement; Redemption of Contract Obligations.
In order that the Contract Obligations may be properly defeased
in accordance with Act 34, the County shall enter into an escrow
agreement as may be determined by the County Executive or his
designee (the "Escrow Agreement"), with a bank or trust company
designated by the County Executive or his designee. The Escrow
Agreement shall be in substantially the form attached as
Appendix D to this Resolution (with such changes, modifications
and additions as may be approved by the County Executive his
designee). The Escrow Agreement shall be completed with
appropriate figures prior to execution on behalf of the County
by the County Executive or his designee.
Upon execution of the Escrow Agreement and delivery of the
Refunding Bonds, the County and/or the Escrow Agent shall take
all necessary steps to cause the Contract Obligations to be
redeemed at the earliest possible redemption date or dates.
23. Conflicting Resolutions. All resolutions and parts of
resolutions in conflict with the foregoing are hereby rescinded.
24. 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
adoption of the foregoing resolution.
FINANCE COMMITTEE
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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
las.r2-cak248
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EXHIBIT A
[FORM OF BOND]
UNITED STATES OF AMERICA - STATE OF MICHIGAN - COUNTY OF OAKLAND
COUNTY OF OAKLAND
RETIREES HEALTH CARE REFUNDING BOND, SERIES 20
(GENERAL OBLIGATION LIMITED TAX)
No.
RATE MATURITY DATE DATE OF ISSUANCE CUSIP
1,
REGISTERED OWNER:
PRINCIPAL AMOUNT:
FOR VALUE RECEIVED, the County of Oakland, (the "County"),
State of Michigan, hereby acknowledges itself indebted and
promises to pay (but only from the sources referred to herein)
on the Maturity Date specified above, unless paid prior thereto
as hereinafter provided, to the Registered Owner specified
above, or its registered assigns, the Principal Amount specified
above upon presentation and surrender of this Refunding Bond at
the principal corporate trust office of
, Michigan, as paying agent and bond registrar (the "Bond
Registrar"), together with interest thereon to the Registered
Owner of this Refunding Bond, as shown on the books of the
County maintained by the Bond Registrar, on the applicable date
of record from the Date of Issuance specified above, or such
later date through which interest has been paid, at the Rate per
annum specified above, commencing 1, , and
semiannually thereafter on the first, day of and
in each year to and including the Maturity Date or earlier
redemption of this Refunding Bond. The date of record for each
payment of interest shall be the 15th day of the month preceding
the date such payment is due. Interest is payable by check or
draft mailed by the Bond Registrar to the Registered Owner at
the address shown on the books of the County maintained by the
Bond Registrar on the applicable date of record and shall be
calculated on the basis of a 360-day year consisting of twelve
(12) thirty (30) day months.
This Refunding Bond is one of a series of Refunding Bonds
of like date and tenor except as to denomination, date of
maturity and interest rate, numbered from 1 upwards, aggregating
the principal sum of
Dollars ($ ), issued by the County, pursuant to and in
full conformity with the Constitution and Statutes of the State
of Michigan and especially Section 518 of Act No. 34, Public
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Acts of Michigan, 2001, as amended (the "Act"), for the purpose
of
which is located in Michigan (the "Refunding
Project").
This Refunding Bond and the series of which this is one are
payable as
follows:
which are hereby irrevocably pledged for the payment of the
principal of, premium, if any, and interest on the Refunding
Bonds. To secure payment of the principal of, premium, if any,
and interest on the Refunding Bonds. The
pledged to the payment of the principal of, premium, if any,
and interest on the Refunding Bonds shall be and remain subject
to the statutory lien until the principal of, premium, if any,
and interest on the Refunding Bonds have been paid in full. The
limited tax full faith and credit of the County has been pledged
for the making of such payments, and the County is obligated to
levy ad valorem taxes in such amounts as shall be necessary for
the making of such cash rental payments. HOWEVER, NO TAXES MAY
BE LEVIED IN EXCESS OF CONSTITUTIONAL AND STATUTORY LIMITS. In
addition, the Refunding Bonds shall be secured by the General
Fund of the County and shall be known as "General Obligation
Limited Tax Refunding Bonds."
The County hereby covenants with the holders of the
Refunding Bonds that so long as any of the Refunding Bonds
remain outstanding and unpaid that it will not change the
benefit structure of any existing County defined benefit plan
except that the County may reduce benefits of the defined
benefit plan for years of service that accrue after the issuance
of the Refunding Bonds.
{The Refunding Bond shall be subject to redemption prior to
maturity upon such terms and conditions as shall be determined
by the County Executive at the time of sale.}
This Refunding Bond shall be transferable on the books of
the County maintained by the Bond Registrar upon surrender of
this Refunding Bond to the Bond Registrar together with an
assignment executed by the Registered Owner or his or her duly
authorized attorney in form satisfactory to the Bond Registrar.
Upon receipt of a properly assigned bond, the Bond Registrar
shall authenticate and deliver a new Refunding Bond or Refunding
Bonds in authorized denominations in equal aggregate principal
amount and like interest rate and maturity to the designated
transferee or transferees.
This Refunding Bond may likewise be exchanged for one or
more other Refunding Bonds with the same interest rate and
maturity in authorized denominations aggregating the same
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principal amount as the Refunding Bond or Refunding Bonds being
exchanged. Such exchange shall be effected by surrender of the
Refunding Bond to be exchanged to the Bond Registrar with
written instructions signed by the Registered Owner of the
Refunding Bond or his or her attorney in form satisfactory to
the Bond Registrar. Upon receipt of a Refunding Bond with
proper written instructions the Bond Registrar shall
authenticate and deliver a new Refunding Bond or Refunding Bonds
to the Registered Owner of the Refunding Bond or his or her
properly designated transferee or transferees or attorney.
The Bond Registrar is not required to honor any transfer or
exchange of Refunding Bonds during the fifteen (15) days
preceding an interest payment date. Any service charge made by
the Bond Registrar for any such registration, transfer or
exchange shall be paid for by the County (subject, however, to
reimbursement by the County pursuant to the Lease), unless
otherwise agreed upon by the County and the Bond Registrar. The
Bond Registrar may, however, require payment by a bondholder of
a sum sufficient to cover any tax or other governmental charge
payable in connection with any such registration, transfer or
exchange.
This Refunding Bond shall not be valid or become obligatory
for any purpose or be entitled to any security or benefit until
the certificate of authentication hereon has been duly executed
by the Bond Registrar, as authenticating agent.
It is hereby certified, recited and declared that all
things, conditions and acts required to exist, happen and be
performed precedent to and in connection with the issuance of
this Refunding Bond and the other Refunding 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 the County, including this series of Refunding
Bonds, does not exceed any constitutional or statutory
limitation.
IN WITNESS WHEREOF, the County of Oakland, State of
Michigan by its Board of Commissioners has caused this Bond to
be executed in its name with the facsimile signatures of its
Chairperson of the Board of Commissioners and its Clerk and has
caused a facsimile of its seal to be affixed hereto, and has
caused this Refunding Bond to be authenticated by the Bond
Registrar, as the County's authenticating agent, all as of the
Date of Issuance set forth above.
COUNTY OF OAKLAND
By:
Chairperson of the Board of
Commissioners
[SEAL]
3
By:
Clerk
DATE OF AUTHENTICATION:
BOND REGISTRAR'S CERTIFICATE OF AUTHENTICATION
This RefundingBond is one of the series of Refunding Bonds
designated "County of Oakland Retirees Health Care Refunding
Bonds, Series 20 (General Obligation Limited Tax).."
, Michigan
as Bond Registrar and Authenticating Agent
By:
Authorized Representative
CERTIFICATE
The above is a true copy of the legal opinion of Axe &
Ecklund, P.C., a true copy of which was delivered on the date of
delivery of the Refunding Bonds to which it relates.
BY:
Clerk
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns
and transfers unto this Refunding Bond and
all rights hereunder and hereby irrevocably constitutes and
appoints attorney to transfer this
Refunding Bond on the books kept for registration thereof with
full power of substitution in the premises.
Dated:
Signature:
Notice: The signature(s) to this assignment must correspond
with the name as it appears upon the face of this Refunding Bond
in every particular, without alteration or enlargement or any
change whatsoever.
Signature Guaranteed:
Signature(s) must be guaranteed by an eligible guarantor
institution participating in a Securities Transfer Association
recognized signature guarantee program.
The transfer agent will not effect transfer of this Refunding
Bond unless the information concerning the transferee requested
below is provided:
4
Name and Address:
(Include information for all joint owners if bond is held by
joint account)
PLEASE INSERT SOCIAL SECURITY NUMBER OR OTHER IDENTIFYING NUMBER
OF TRANSFEREE
(Insert number for first named transferee if held by joint
account)
las.r2-oak248
5
EXHIBIT B
[FORM OF NOTICE OF SALE]
COUNTY OF OAKLAND, STATE OF MICHIGAN
COUNTY OF OAKLAND
RETIREES HEALTH CARE REFUNDING BONDS, SERIES 2013
(GENERAL OBLIGATION LIMITED TAX)
SEALED OR ELECTRONIC BIDS: Sealed written bids for the purchase
of the Refunding Bonds described herein (the "Refunding Bonds")
will be received on behalf of the County of Oakland (the
"County") by an agent of the undersigned, at the office of the
County Michigan on
r until .m., Eastern
Time, at which time and place the bids will be publicly opened
and read.
In the alternative, sealed written bids will also be
received on the same date and until the same time by an agent of
the undersigned at the Municipal Advisory Council of Michigan,
Buhl Building, 535 Griswold, Suite 1850, Detroit, Michigan
48226, where they will be publicly opened simultaneously. Bids
received at Pontiac, Michigan will be read first followed by
bids received at the alternate location. Bidders may choose
either location to present bids and good faith checks, but not
both locations.
Any bidder may submit a bid in person to either bidding
location. However, no bidder is authorized to submit a FAX bid
to Pontiac, Michigan.
Also in the alternative, electronic bids will also be
received on the same date and until the same time by an agent of
the undersigned Bidcomp/Parity. Further information about
Bidcomp/Parity, including any fee charged, may be obtained from
Bidcomp/Parity, Eric Washington, 1359 Broadway, 2'd floor, New
York, New York, 10018, (212) 849-5021.
If any provision of this Notice of Sale shall conflict with
information provided by Bidcomp/Parity as the approved provider
of electronic bidding services, this Notice of Sale shall
control.
The Refunding Bonds will be awarded or all bids will be
rejected by the County Treasurer and the County Executive at a
proceeding to be held within twenty-four hours of the sale.
BOND DETAILS: The Refunding Bonds will be fully registered
Refunding Bonds, both as to principal and interest, in any one
or more denominations of $5,000 or a multiple of $5,000, not
exceeding the aggregate principal amount for each maturity,
dated 1, , numbered from 1 upwards and will bear
1
interest from their date of issuance payable on 1,
and semiannually thereafter on each 1 and 1
until maturity. The Refunding Bonds will mature on 1 of
each year as follows:
YEAR PRINCIPAL YEAR PRINCIPAL
PRIOR REDEMPTION: [The Refunding Bonds shall be subject to
redemption prior to maturity upon such terms and conditions as
shall be determined by the County Executive at the time of
sale.]
INTEREST RATE AND PROPOSING DETAILS: The Refunding Bonds shall
bear interest at a rate or rates not exceeding % per annum,
to be fixed by the proposals therefor, expressed in multiples of
1/8 or 1/20 of 1%, or both. The interest on any one bond shall
be at one rate only. All Refunding Bonds maturing in any one
year must carry the same interest rate. THE INTEREST RATE BORNE
BY REFUNDING BONDS MATURING IN ANY YEAR SHALL NOT BE AT A RATE
LOWER THAN THE RATE BORNE BY REFUNDING BONDS MATURING IN ANY
PRECEDING YEAR. No proposal for the purchase of less than all
of the Refunding Bonds, at a price less than % of their par
value or at an interest rate or rates that will result in a net
interest cost of more than % per annum, will be considered.
TERM BOND OPTION: Refunding Bonds maturing in the years -
, inclusive, are eligible for designation by the original
purchaser at the time of sale as serial Refunding Bonds or term
Refunding Bonds, or both. There may be more than one term bond
maturity. However, principal maturities designated as term
Refunding Bonds shall be subject to mandatory redemption, in
part, by lot, at par and accrued interest on 1st of
the year in which the Refunding Bonds are presently scheduled to
mature. Each maturity of term Refunding Bonds and serial
Refunding Bonds must carry the same interest rate. Any such
designation must be made at the time the proposals are
submitted.
BOOK-ENTRY-ONLY: The Refunding Bonds will be issued in book-
entry-nnly fnrm nnr, hnnr] rer maturit.T a nd
will be registered in the name of Cede & Co., as nominee for The
Depository Trust Company,("DTC"), New York, New York. DTC will
act as securities depository for the Refunding Bonds. Purchase
of the Refunding Bonds will be made in book-entry-only form, in
the denomination of $5,000 or any multiple thereof. Purchasers
will not receive certificates representing their interest in
Refunding Bonds purchased. The book-entry-only system is
described further in the nearly final official statement for the
Refunding Bonds.
2
Row REGISTRAR, wAvTNa AGENT AND DATE mvornnim. PVC°
has been selected as bond registrar and paying
agent (the "Bond Registrar") for the Refunding Bonds. The Bond
Registrar will keep records of the registered holders of the
Refunding Bonds, serve as transfer agent for the Refunding
Bonds, authenticate the original and any re-issued Refunding
Bonds and pay interest by check or draft mailed to the
registered holders of the Refunding Bonds as shown on the
registration books of the County kept by the Bond Registrar on
the applicable date of record. The date of record for each
interest payment shall be the 15th day of the month before such
payment is due. The principal of and redemption premium, if
any, on the Refunding Bonds will be paid when due upon
presentation and surrender thereof to the Bond Registrar. As
long as DTC, or its nominee Cede & Co., is the registered owner
of the Refunding Bonds, payments will be made directly to such
registered owner. Disbursement of such payments to DTC
participants is the responsibility of DTC and disbursement of
such payments to the beneficial owners of the Refunding Bonds is
the responsibility of DTC participants and indirect participants
as described in the nearly final official statement for the
Refunding Bonds. The County may from time to time as required
designate a successor bond registrar and paying agent.
PURPOSE AND SECURITY: The Refunding Bonds are to be issued
pursuant to Section 518 of Act No, 34, Public Acts of Michigan,
2001, as amended (the "Act"), for the purpose of
(the "Refunding °
Project"). The County agrees to pledge for the repayment of the
Refunding Bonds sufficient amounts of County taxes levied each
year provided that the amount of taxes necessary to pay the
principal of and interest on the Refunding Bonds, together with
the other taxes levied for the same year, shall not exceed the
limit authorized by law and the Michigan Constitution. In
addition, the Refunding Bonds shall be secured by the General
Fund of the County and shall be known as "General Obligation
Limited Tax."
GOOD FAITH CHECK: A certified or cashier's check drawn upon an
incorporated bank or trust company or a wire transfer in an
amount equal to 2% ($ ) of the face amount of the Refunding
Bonds, and payable to the order of the County Treasurer will be
required of the successful proposer as a guarantee of good faith
on the part of the proposer, to be forfeited as liquidated
damages if such proposal be accepted and the proposer fails to
take up and pay for the Refunding Bonds. If a check is used, it
must accompany each proposal. If a wire transfer is used, the
successful proposer is required to wire the good faith deposit
not later than Noon, prevailing Eastern Time, on the next
business day following the sale using the wire instructions
provided by . The good
faith deposit will be applied to the purchase price of the
3
Refunding Bonds. No interest shall be allowed on the good faith
checks, and checks of each unsuccessful proposer will be
promptly returned to such proposers representative or by
registered mail. The good faith check of the successful
proposer will be cashed immediately, in which event, payment of
the balance of the purchase price of the Refunding Bonds shall
be made at the closing.
AWARD OF THE REFUNDING BONDS - TRUE INTEREST COST: The
Refunding Bonds will be awarded to the bidder whose bid produces
the lowest true interest cost determined in the following
manner: the lowest true interest cost will be the single
interest rate (compounded on 1, and semi-annually
thereafter) necessary to discount the debt service payments from
their respective payment dates to 1, in an
amount equal to the price bid, excluding accrued interest. Each
bidder shall state in its bid the true interest cost to the
County, computed in the manner specified above.
LEGAL OPINION: Proposals shall be conditioned upon the
approving opinion of Axe & Ecklund, P.C., Grosse Pointe Farms,
Michigan (the "Bond Counsel"), a copy of which will be printed
on the reverse side of each bond and the original of which will
be furnished without expense to the Purchaser of the Refunding
Bonds at the delivery thereof. The fees of Bond Counsel for its
services in connection with such approving opinion are expected
to be paid from bond proceeds. Except to the extent necessary
to issue such opinion and as described in the official
statement, Bond Counsel has not been requested to examine or
review, and has not examined or reviewed, any financial
documents, statements or other materials that have been or may
be furnished in connection with the authorization, marketing or
issuance of the Refunding Bonds and, therefore, has not
expressed and will not express an opinion with respect to the
accuracy or completeness of the official statement or any such
financial documents, statements or materials.
TAXATION OF REFUNDING BONDS:
A. Federal Income Taxes: In the opinion of Bond Counsel, the
interest on the Refunding Bonds is includable in gross income of
the holders of the Refunding Bonds for federal income tax
purposes, as described in the opinion.
B. State Taxes: In the opinion of Bond Counsel, interest and
income from the Refunding Bonds are exempt from taxation by the
State of Michigan or a political subdivision of the State of
Michigan.
DELIVERY OF REFUNDING BONDS: The County will furnish Refunding
Bonds ready for execution at its expense. Refunding Bonds will
be delivered without expense to the purchaser. The usual
closing documents, including a certificate that no litigation is
pending affecting the issuance of the Refunding Bonds, will be
4
delivered at the time of delivery of the Refunding Bonds. If
the Refunding Bonds are not tendered for delivery by twelve
o'clock noon, Eastern Time, on the 45th day following the date
of sale or the first business day thereafter if the 45th day is
not a business day, the successful bidder may on that day, or
any time thereafter until delivery of the Refunding Bonds,
withdraw its bid by serving written notice of cancellation on
the undersigned, in which event the County shall promptly return
the good faith deposit. Payment for the Refunding Bonds shall
be made in Federal Reserve Funds. Accrued interest to the date
of delivery of the Refunding Bonds shall be paid by the
purchaser at the time of delivery. Unless the purchaser of the
Refunding Bonds furnishes the Bond Registrar with a list of
names and denominations in which it wishes to have the Refunding
Bonds issued at least ten (10) business days before delivery of
the Refunding Bonds, the Refunding Bonds will be delivered in
the form of one bond for each maturity, registered in the name
of the purchaser.
UNDERTAKING TO PROVIDE CONTINUING DISCLOSURE: In order to
assist proposers in complying with SEC Rule 15c2-12, as amended,
the County will covenant to undertake (pursuant to a resolution
adopted or to be adopted by its governing body), to provide
annual reports and timely notice of certain events for the
benefit of beneficial owners of the Refunding Bonds. The
details and terms of the undertaking are set forth in a
Continuing Disclosure Certificate to be executed and delivered
by the County, a form of which is included in the nearly final
official statement and in the final official statement.
OFFICIAL STATEMENT:
Hard Copy
A copy of the nearly final official statement (the "Nearly
Final Official Statement") may be obtained by contacting
at the address
listed below. The Nearly Final Official Statement is in a form
deemed final as of its date by the County for purposes of SEC
Rule 15c2-12(b) (1), but is subject to revision, amendment and
completion of a final official statement (the "Final Official
Statement"). The successful proposer shall supply to the County
within twenty-four hours (24) after the award of the Refunding
Bonds, all pricing information and any underwriter
identification determined by Bond Counsel to be necessary to
complete the Final Official Statement.
Internet
In addition, the County has authorized the preparation and
distribution of a Nearly Final Official Statement containing
information relating to the Refunding Bonds via the Internet.
The Nearly Final Official Statement can be viewed and downloaded
at www.i-dealprospectus.com/PDF.asp?doc= or www.tm3.com .
5
The County will furnish to the propo s er, at no
cost, 125 copies of the Final Official Statement within seven
(7) business days after the award of the Refunding Bonds.
Additional copies will be supplied upon the proposer's agreement
to pay the cost incurred by the County for those additional
copies.
The County shall deliver at closing an executed certificate
to the effect that as of the date of delivery the information
contained in the Final Official Statement, including revisions,
amendments and completions as necessary, relating to the County
and the Refunding Bonds is true and correct in all material
respects, and that such Final Official Statement does not
contain any untrue statement of a material fact or omit to state
a material fact necessary to make statements therein, in light
of the circumstances under which they were made, not misleading.
CUSIP NUMBERS: It is anticipated that CUSIP numbers will be
printed on the Refunding Bonds, but neither the failure to print
such numbers nor any improperly printed number shall constitute
cause for the purchaser to refuse to accept delivery of, or to
pay for the Refunding Bonds. All expenses for printing CUSIP
numbers on the Refunding Bonds will be paid by the County,
except that the CUSIP Service Bureau charge for the assignment
of such numbers shall be the responsibility of and paid for by
the purchaser.
ADDITIONAL INFORMATION: Further information may be obtained
from the undersigned at the address specified above or from
MUM, riTr.T.IT TO nvor-mrmn mrs niml-mnm ANy evin AFF DTTC 4.6.0 A. '.J JCILL X41.1./.7.
ENVELOPES: Envelopes containing the bids should be plainly
marked "Bid for County of Oakland Retirees Health Care Refunding
Bonds, Series 20 (General Obligation Limited Tax)"
, County
County of Oakland
las.r2-oak2
6
EXHIBIT C
AWARD ORDER
COUNTY OF OAKLAND
RETIREES HEALTH CARE REFUNDING BONDS, SERIES 20
(GENERAL OBLIGATION LIMITED TAX)
WHEREAS, on the date of this Order, the bids summarized on
EXHIBIT I to the minutes of the proceeding at which this Order
was entered (copies of which are attached hereto) for the
purchase of the $ 'principal amount County of Oakland
Retirees Health Care Refunding Bonds, Series 20 (General
Obligation Limited Tax) (the "Refunding Bonds"), to be issued by
the County of Oakland (the "County") were received and publicly
opened and read; and
WHEREAS, the following bid produces the lowest interest
cost computed by determining, at the rates specified in such
bid, the total dollar value of all interest on the Refunding
Bonds from 1, 20 , to maturity and adding thereto any
discount. or subtracting therefrom any premium, all as provided
in the Notice of Sale:
Bidder:
True Interest Rate:
Premium/
Discount:
and the bid submitted by such bidder (the "Purchaser") in all
respects conforms to the requirements of the Notice of Sale; and
WHEREAS, the sale of the Refunding Bonds was duly
authorized and conducted according to law;
NOW, THEREFORE, IT IS ORDERED BY THE COUNTY TREASURER AND
COUNTY EXECUTIVE ON BEHALF OF THE COUNTY as follows:
1. The action of the officials of the County in fixing
this date of sale of the Refunding Bonds, in dating the
Refunding Bonds 1, 20 , and in publishing such
Notice of Sale as heretofore provided, are hereby ratified and
confirmed.
2. The content of the aforementioned Notice of Sale (a
copy of which is attached hereto) published in connection with
the solicitation of bids for the purchase of the Refunding
Bonds, is hereby ratified and confirmed.
3. The bid of to purchase the
aggregate principal amount of the Refunding Bonds in
the maturities set forth in EXHIBIT I at par, plus accrued
interest to the date of delivery, less a discount of $
or plus a premium of $ and bearing interest per annum
as shown on EXHIBIT I with a true interest rate •• of
which bid produces the lowest true interest cost to the County,
is hereby accepted, and all other bids (as set forth on EXHIBIT
I) are hereby rejected and the checks of the unsuccessful
bidders are ordered to be returned.
4. I hereby confirm the appointment of
bond registrar, paying agent and escrow agent for th
Bonds and hereby shall issue the Refunding Bonds in
with the terms set forth in the Bond Resolution
adopted by the Board of Commissioners.
as
e Refunding
accordance
previously
5. All resolutions and parts of resolutions, insofar
the same may be in conflict herewith, are hereby rescinded.
Dated: , 20
County Treasurer, County Executive
Both on behalf of the County of Oakland
las.r2-oak248
as
2
EXHIBIT I
COUNTY OF OAKLAND
RETIREES HEALTH CARE REFUNDING BONDS, SERIES 20
(GENERAL OBLIGATION LIMITED TAX)
Sale Date: , 20 Good Faith Check: $
Time: : .m., EST Discount: $
Dated: 1, 20 Maximum Interest:'
Maturities - Due April 1
96
YEAR AMOUNT YEAR AMOUNT YEAR AMOUNT
Bidder:
20
20
20
20 cC
20
20
20
20
20
20
Bond Counsel
AXE & ECKLUND, P. C.
Grosse Pointe Farms, Michigan
cC
96
cC
9.6
20 % Premium/
20 % Discount:
cC 20
20 % True Int Rate:
20
20 96
20
20
20
cC 20
APPENDIX 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 $
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)
Maximum amount of Refunding Bonds to be issued:
Maximum term of bond issue: 16 years
las.r2-oak248
APPENDIX B
[SEE ATTACHED 2007 OAKLAND COUNTY INTERMEDIATE TRUST AGREEMENT]
APPENDIX C
2012 OAKLAND COUNTY HEALTH CARE BENEFITS PROGRAM
The County of Oakland in order to fully fund and establish
a reserve to assure that for the period ending September 30,
20 the County will have supplanted and superseded its
obligations from the County's General fund to pay for all of the
costs of providing Retiree Medical Benefits will do the
following:
1. Sometime between April 1, 2013 and January 31, 2014
the County will issue one or more series of Health Care
Refunding Bonds the proceeds of which will be used as follows:
(a) The County will deposit in its VEBA an amount which
with other assets in the VEBA valued within 60 days of
deposit will bring the total assets in the VEBA to in
excess of 101% of the accrued actuarial liability of the
County to the VESA.
(b) The County will deposit in the 2007 Oakland County
Intermediate Trust an amount which with all of the other
assets on deposit in the 2007 Oakland County Intermediate
Trust will equal the amount needed to redeem the contract
obligations, of the County to the 2007 Oakland County
Retirees Medical Benefits Funding Trust (the "Funding
Trust") on April 1, 2014.
(c) An amount which will be used to pay all of the costs
of issuance and other costs incurred by the County in
carrying out the 2012 Oakland County Health Care Benefits
Program.
(d) Once the actions described in subparagraphs (a), (b)
and (c) have occurred, the County will give notice to the
Trustees of the 2007 Oakland County Intermediate Trust that
the purposes of the Trust have been satisfied and
thereafter the County will give notice to the Trustees of
the Funding Trust of the County's irrevocable election to
optionally redeem all of the Taxable Certificates of
Participation maturing on and after April 1, 2015 issued by
the Funding Trust on July 31, 2007.
2. The County continues to reduce its exposure to future
retiree health care expenses through a variety of health
plan changes such as:
(a) Discontinued retiree health, dental & vision'coverage
for new hires and replaced it with Health Savings
Accounts that the County contributes $50 per pay
period.
(b) Raised annual healthcare deductibles from $100/$200 to
$200/$400 and raised office visit .co-pays from $10 to
$20 per visit.
(c) Began allowing retirees to participate in certain
Wellness programs and activities.
(d) Increased retiree prescription drug co-pays from
$5/$10/$25 to $5/$20/$40.
(e) Implemented an Emergency Room co-pay to encourage use
of physician office or urgent care visits for non-
emergency conditions.
2
Changes Affecting the Oakland County Retiree Benefit Package
1) 1984— Discontinued Longevity Pay for new hires. (2% - 10% of annual salary)
accumulated savings approximately $55 million (1985-2010)
2) 1985 - New hire vesting schedule for retiree health care increased from 8 yrs for full
coverage to 8 yrs/single, 15 yrs/family. Deferred retirement vesting increased to 15
yrs/single, 20 yrs/family coverage.
3) 1985 - Sick days discontinued (13/yr) and replaced with Personal leave days (5/yr) and
short term/long term disability insurance (60% of salary).
4) 1987 - Began pre-funding Retiree Healthcare obligation. Health deductible increased
from $50 single/$100 family to $100 single/$200 family. Prescription co-pay increased
from $2 to $3. Medicare part B premium reimbursement discontinued for employees
hired on or after January 1, 1989. Savings in 1988 dollars estimated to be $300,000
annually.
5) 1993 - Early Retirement Incentive offered. 244 employees retired / savings of $3.2
million.
6) 1994 - Defined Benefit Retirement plan closed to new hires, and Defined Contribution
plan established for new hires. cumulative savings of $70 million from 1994 to 2010.
7) 1994 Buy-out offer for Deferred Retirees to waive future health care. 78 accepted buy-
out. Estimated long term OPEB savings of $19.5 million.
8) 1995 - Retiree health coverage vesting scheduled lengthened for new hires to 15 yrs
service for 60% County paid coverage, with 4% added per year of service up to 25 yrs for
100% coverage.
9) 1998 — Buy-out offer for Deferred Retirees to waive future health care. Long teini OPEB
savings estimated to be $8 million for 32 employees that took advantage of this offering.
10) 2002/03 - Early Retirement Incentive, 227 employees retired, $7 million annual savings.
11) 2004 - Retiree prescription co-pay increased from $3 flat to $5/10/15. $800,000 annual
savin2s on Retirees.
12) 2006 - Discontinued retiree health, dental & vision coverage for new employees hired on
or after 1/1/06, and replaced with a Health Savings Account. County contributes $50 per
pay period. Vesting schedule is 15 yrs for 60% with 4% per year of service thereafter,
with full vesting at 25 yrs of service. Conservative long term savings estimated at $400
million.
13) Jan. 1, 2007 — For retirees and active employees - raised annual healthcare deductible
from $10015200 to $200/$400 and raised office visit co-pay from $10 to $20 per visit.
Raised drug co-pay for Retirees from 5/510/515 to $5/$10/$25 (to same level as Active
employees). Combined annual savings of $984,000.
14) 2007 Buy out offer for Deferred Retirees to waive future health care. Long term OPEB
savings estimated to be $4.75 million for 19 employees that took advantage of this
offering.
15) 2007 Wellness Program implemented. Over 60% employee participation in Oakfit
Wellness Program offerings which include: annual health screenings (Cholesterol, Blood
Pressure, Glucose. BMI), health risk assessments, on site weight watchers and exercise
classes, monthly lunch and learn topics, etc. Hospitalization costs for lifestyle related
3
illnesses decreased (17%), health screening data shows favorable trends, health care costs
stable for the first time in years.
16) July 2007 — Issued $560 million in Certificates of Participation (COPs) in order to fully
fund the County's retiree health care obligation. By issuing the taxable certificates and
investing the proceeds, the County will save taxpayers approximately $100 million over
the next 20 years.
17) March 2008 — discontinued Social Security tax for PTNE's and replaced with tax
deferred Retirement Accounts. Annual savings in FICA taxes of $640,000.
18) April 1, 2008 — Switched vendor for prescription coverage for employees and retirees
from Blue Cross to Navitus. Same level of benefit, but will save approx. $900,000 per
year through rebates and fees.
19) July 1, 2008 — Switched vendor for Medicare A & B Supplemental coverage for retirees
age 65 and older from Blue Cross to Aetna. Same level of benefit, but will save aprox.
$543,000 per year in admin costs.
20) August 2008 - Retirement Incentive for employees already eligible to retire, 159
employees retired, resulting in department reorganizations and the deletion of 7 positions
in 2008 (M&B /HR), 64 positions in FY2009 Budget and 109 with FY2010 budget.
(combined ongoing position savings of $10.5 million).
21) July 2009 — Migrate to Navitus drug formulary structure for employees and retirees. Will
save approx. $370,000 annually.
22) 2010 - Elimination of Deferred Compensation 457 County match program. (approx.
$400,000 annually).
23) Oct. 2009 (FY2010) — Wage reduction of 2.5% for employees. Will save $5.5 million
annually. Action also reduces some future DB retiree pension obligations,
24) Oct 2010 (FY2011) - Wage reduction of 1.5%. Will save $3 million annually. Savings
eventually impact future pension amounts.
25) Oct 2011 (FY2012) — Wage freeze with 0% increase, while labor market raised an
average of 3%. Will save $6 million annually. Savings eventually impact some future
pension amounts.
26) Increased prescription drug copay levels from 55/$10/$25 to $5/S20/$40 for all
employees and retirees effective 1/1/2013. Will save $600,000 annually.
27) Implemented a $100 emergency room co-pay for non-emergency conditions for all
employees and retirees effective 1/1/2013. Projected savings of at least $250,000
annually.
Updated by Human Resources Dept. 11/1/2012
C../Summary.ofBenefit.Savings.thru.Jan.2013.doc
4
APPENDIX D
ESCROW AGREEMENT
COUNTY OF OAKLAND
This escrow agreement (the "Agreement"), dated as of
, is between the COUNTY OF OAKLAND, Michigan (the
"County") and , Michigan, as escrow agent (the "Escrow
Agent").
WHEREAS, the County has previously entered into a contact
under which it is obligated to make payments of which the
principal amounts listed below remain outstanding:
Outstanding
Principal
maturing in
the years
thru
Existing Contract Obligations
dated
(the "Contract Obligations")
(all of such outstanding Contract Obligations hereinafter
referred to as the "Contract Obligations") all bearing interest,
due as to principal and subject to redemption as more fully
described in APPENDIX I to this Agreement.
WHEREAS, for the purpose of paying certain amounts into the
• Oakland County VEBA Trust in an amount sufficient to fund the
VEBA Trust at least 101% of the estimated accrued actuarial
liability of the County to the VEBA Trust for the period ending
, 20 and an amount to the Oakland County Retiree Medical
Benefits Intermediate Trust sufficient to permit the complete
retirement on April 1, 2014 of the Contract Obligations owed by
the County to the Oakland County Retiree Medical Benefits
Funding Trust, the County has, pursuant to a refunding bond
resolution adopted on (the "Resolution") authorized
the issuance of a series of refunding bonds dated 1,
as designated and described in the Resolution and
hereafter (the "Refunding Bonds"); and
WHEREAS, pursuant to the Refunding Bond Resolution, the
Escrow Agent has been appointed by the County for the purpose of
assuring the payment of the amounts described in Exhibit A
attached hereto to be made on the dates specified in Exhibit A
to the parties described therein and the County Executive or his
designee has been authorized and directed to execute this
Agreement.
NOW, THEREFORE, in consideration of the premises and the
mutual covenants and agreements set forth below, the County and
the Escrow Agent agree as follows for the respective equal and
proportionate benefit and security of the holders of the
Contract Obligations;
Section 1. Appointment of Escrow Agent. The Escrow
Agent is hereby appointed and agrees to act in such capacity to
comply with all requirements of this Agreement, and to be
custodian of the escrow fund (the "Escrow Fund"), to perform its
duties as custodian of the Escrow Fund created under this
Agreement, but only upon and subject to the following express
terms and conditions:
(a) The Escrow Agent may perform any of its duties by
or through attorneys, agents, receivers or employees but
shall be answerable for the conduct of the same in
accordance with the Standards specified in this Agreement
and shall be entitled to advice of counsel concerning all
matters of and the duties under this Agreement, and may in
all cases pay such reasonable compensation to such counsel
and in addition to all such attorneys, agents, receivers
and employees as may reasonably be employed in connection
with the same. The Escrow Agent may act upon the opinion
or advice of any counsel. The Escrow Agent shall not be
responsible for any loss or damage resulting from any
action or non-action taken in good faith in reliance upon
such opinion or advice.
(b) The Escrow Agent shall not be responsible for any
recital in this Agreement, or in the Refunding Bonds or for
the validity of the execution by the County of this
Agreement or of any supplements to it or instruments of
further assurance. The Escrow Agent shall not be bound to
ascertain or inquire as to the performance or observance of
any covenants, conditions - or agreements on the part of the
County, except as set forth in this Agreement. The Escrow
Agent shall be only obligated to perform such duties and
only such duties as are specifically set forth in this
Agreement and no implied covenants or obligations shall be
read into this Agreement against the Escrow Agent.
(c) The Escrow Agent may become the owner of the
Refunding Bonds or the Contract Obligations with the same
rights which it would have if not Escrow Agent.
(d) The Escrow Agent shall be protected in acting
upon any notice, request, consent, certificate, order,
affidavit, letter, telex, telegram or other paper or
document believed to be genuine and correct and to have
been signed or sent by the proper person or persons. Any
action taken by the Escrow Agent pursuant to this Agreement
upon the request or consent of any person who at the time
of making such request or consent is the owner of any prior
bond, shall be conclusive and binding upon all future
owners of the same prior bond.
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(e) As to the existence or non-existence of any fact
or as to the sufficiency or validity of any instrument,
paper or proceeding, the Escrow Agent shall be entitled to
rely upon a certificate of the County signed by (i) the
Secretary, or (1.i) any other duly authorized person as
sufficient evidence of the facts contained in it, but May
secure such further evidence deemed necessary or advisable,
but shall in no case be bound to secure the same. The
Escrow Agent may accept a certificate of the Secretary to
the effect that a resolution in the form attached to such
certificate has been adopted by the County as conclusive
evidence that such resolution has been duly adopted, and is
in full force and effect.
(f) The permissive right of the Escrow Agent to do
things enumerated in this Agreement shall never be
construed as a duty. The Escrow Agent shall only be
responsible for the performance of the express duties
outlined in this Agreement and it shall not be answerable
for other than its gross negligence or willful default in
the performance of those express duties.
(g) At any and all reasonable times the Escrow Agent
and its duly authorized agents, attorneys, experts,
accountants and representatives, shall have the right fully
to inspect any and all of the books, papers and records of
the County pertaining to the Contract Obligations, and to
take such memoranda from and in regard to the same as may
be desired.
(h) The Escrow Agent shall not be required to give
any bond or surety in respect of the execution of the
powers contained in or otherwise in respect to this
Agreement.
(i) Before taking any action under this Agreement
(except making investments, collecting investments and
making payments to the paying agents with respect to the
Contract Obligations) the Escrow Agent may require that a
satisfactory indemnity bond be furnished for the
reimbursement of all expenses to which it may be put and to
protect it against all liability except liability which is
adjudicated to have resulted from gross negligence or
willful default by reason of any action so taken.
(j) The Escrow Agent shall be, and hereby is
and saved harmless by the County from
liabilities, costs and expenses,
attorney fees and expenses, which may
by it as a result of its acceptance of the Escrow
Account or arising from the performance of its
duties hereunder, unless such losses,
liabilities, costs and expenses shall have been
indemnified
all losses,
including
be incurred
3
finally adjudicated to have resulted from the bad
faith or gross negligence of the Escrow Agent,
and such indemnification shall survive its
resignation or removal, or the termination of
this Agreement.
(k) The Escrow Agent shall, in the event that (i) any
dispute shall arise between the parties with respect to the
disposition or disbursement of any of the assets held
hereunder or (ii) the Escrow Agent shall be uncertain as to
how to proceed in a situation not explicitly addressed by
the terms of this Agreement whether because of conflicting
demands by the other parties hereto or otherwise, be
permitted to interplead all of the assets held hereunder
into a court of competent jurisdiction, and thereafter be
fully relieved from any and all liability or obligation
with respect to such interpleaded assets. The parties
hereto other than the Escrow Agent further agree to pursue
any redress or recourse in connection with such a dispute,
without making the Escrow Agent a party to the same.
(1) The Escrow Agent shall have only those duties as
are specifically provided herein, which shall be deemed
purely ministerial in nature, and shall under no
circumstance be deemed a fiduciary for any of the parties
to this Agreement. The Escrow Agent shall neither be
responsible for, nor chargeable with, knowledge of the
terms and conditions of any other agreement, instrument or
document between the other parties hereto, in connection
herewith. This Agreement sets forth all matters pertinent
to the escrow contemplated hereunder, and no additional
obligations of the Escrow Agent shall be inferred from the
terms of this Agreement or any other Agreement. IN NO
EVENT SHALL THE ESCROW AGENT BE LIABLE, DIRECTLY OR
INDIRECTLY, FOR ANY (i) DAMAGES OR EXPENSES ARISING OUT OF
THE SERVICES PROVIDED HEREUNDER, OTHER THAN DAMAGES WHICH
RESULT FROM THE ESCROW AGENT'S FAILURE TO ACT IN ACCORDANCE
WITH THE STANDARDS SET FORTH IN THIS AGREEMENT, OR (ii)
SPECIAL OR CONSEQUENTIAL DAMAGES, EVEN IF THE ESCROW AGENT
HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
(m) Any banking association or corporation into which
the Escrow Agent may be merged converted or with which the
Escrow Agent may be consolidated or any corporation
resulting from any merger, conversion or consolidation to
which the Escrow Agent shall be a party, or any banking
association or corporation to which all or substantially
all of the corporate trust business of the Escrow Agent
shall be transferred, shall succeed to all the Escrow
Agent's rights, obligations and immunities hereunder
without the execution or filing of any paper or any further
act on the part of any of the parties hereto, anything
herein to the contrary notwithstanding.
4
(n) In the event that any escrow property shall be
attached, garnished or levied upon by any court order, or
the delivery thereof shall be stayed or enjoined by an
order of a court, or any order, judgment or decree shall be
made or entered by any court order affecting property
deposited under this Agreement, the Escrow Agent is hereby
expressly authorized, it its sole discretion, to obey and
comply with all writs, orders or decrees so entered or
issued, which it is advised by legal counsel of its own
choosing is binding upon it, whether with or without
jurisdiction, and in the event that the Escrow Agent obeys
or complies with any such writ, order or decree it shall
not be liable to any of the parties hereto or to any other
person, firm or corporation, by reason of such compliance
notwithstanding such writ, order or decree be subsequently
reversed, modified, annulled set aside or vacated.
Section 2, Escrow Fund. On the County
will irrevocably deposit moneys with the Escrow Agent for the
account of the County from the proceeds of the Refunding Bonds
($ ) to establish the Escrow Fund for the Contract
Obligations in an amount which together with the income from the
escrow assets, shall be held in the Escrow Fund to be maintained
by the Escrow Agent and used to pay (i) the interest on the
Contract Obligations that become due on 1, and
(ii) to redeem on said date all of the outstanding and callable
Contract Obligations prior to their scheduled maturity; and to
pay the applicable call premiums on the Contract Obligations in
accordance with Section 3 hereof.
Section 3. Redemption of Contract Obligations. The
County will redeem, prior to their scheduled maturity, Contract
Obligations as follows:
Outstanding
Contract Obligations
Principal
dated
(the "Contract Obligations")
maturing in
the years
thru
The County by execution of this Escrow Agreement, hereby
authorizes the Escrow Agent to make the following payments to
parties shown:
Section 4. Investments. As directed by the County,
moneys deposited in the Escrow Fund shall be immediately
invested in direct obligations of the United States of America
and/or obligations the principal of, premium (if any) and
interest on which , are fully guaranteed by the United States of
America described on APPENDIX III ("Investment Securities"),
except for ) which will be held in the Escrow
Fund as the beginning balance for the Contract Obligations. The
Escrow Agent agrees to cause to be purchased United States
Government Obligations known as "SLGS" (State and Local
Government Series) from the United States Department of Treasury
on the date shown in APPENDIX III.
The investment income from the Investment Securities in the
Escrow Fund shall be credited to the Escrow Fund and shall not
be reinvested. The Escrow Agent shall not sell any Investment
Securities. All moneys not invested as provided in this
Agreement shall be held by the Escrow Agent as a trust deposit.
Section 5. Use of Moneys. Except as expressly provided
in this Agreement, no paying agents' fees for the payment of
principal of, premium (if any) or interest on the Refunding
Bonds or the Contract Obligations or other charges may be paid
from the escrowed moneys or Investment Securities prior to
retirement of all Contract Obligations, and the County agrees
that it will pay all such fees from its other legally available
funds as such payments become due prior to such retirement.
Section 6. Deficiency in Escrow Fund. At such time or
times as there shall be insufficient funds on hand in the Escrow
Fund for the payment of the principal of, premium (if any) and
interest falling due on the Contract Obligations, the Escrow
Agent shall promptly notify the County of such deficiency, as
provided for under Section 12 below.
Section 7. Reports to County. The Escrow Agent shall
deliver to the County's Chief Fiscal Officer a semi-annual
statement reflecting each transaction relating to the Escrow
Fund; and on or before the first day of February of each year
shall deliver to the County a list of assets of the Escrow Fund
as of December 31 of said year ended and a transaction statement
for the Escrow Fund for the year then ended.
Section 8. Fees of Escrow Agent. The Escrow Agent
agrees with the County that the charges, fees and expenses of
the Escrow Agent throughout the term of this Agreement shall be
the total sum of Dollars ($ ) payable on the
date of closing, which charges, fees and expenses shall be paid
from moneys deposited with the Escrow Agent from bond proceeds.
Section 9. Payments from Escrow Fund. The Escrow Agent
shall without further authorization or direction from the
County, collect the principal of and interest on the Investment
Securities promptly as the same shall become due and, to the
6
extent that Investment Securities and moneys are sufficient for
such purpose, shall make timely payments out of the Escrow Fund
to the proper paying agent or agents or their successors for the
Contract Obligations, of moneys sufficient for the payment of
the principal of, premium (if any) and interest on such Contract
Obligations as the same shall become due and payable, all as set
out in APPENDIX IV and APPENDIX V. The payments so forwarded or
transferred shall be made in sufficient time to permit the
payment of such principal of, premium (if any) and interest by
such paying agent or agents without default. The County
represents and warrants that the Escrow Fund will be sufficient
to make the foregoing and all other payments required under this
Agreement. The paying agent for the Contract Obligations is
shown in APPENDIX I.
When the aggregate total amount required for the payment of
principal of, premium (if any) and interest on the Contract
Obligations have been paid to the paying agent as provided
above, the Escrow Agent shall transfer any moneys or Investment
Securities then held under this Agreement for the Contract
Obligations to the County, and this Agreement shall cease.
Section 10. Interest of Bondholders Not Affected. The
Escrow Agent and the County recognize that the holders from time
to time of the Contract Obligations have a beneficial and vested
interest in the Investment Securities and moneys to be held by
the Escrow Agent as provided in this Agreement. It is therefore
recited, understood and agreed that this Agreement shall not be
subject to revocation or amendment and no moneys on deposit in
an Escrow Fund for the Contract Obligations can be used in any
manner for another series.
Section 11. Escrow Agent Not Obligated. None of the
provisions contained in this Agreement shall require the Escrow
Agent to use or advance its own moneys or otherwise incur
financial liability in the performance of any of its duties or
the exercise of any of its rights or powers under this
Agreement. The Escrow Agent shall be under no liability for
interest on any funds or other property received by it under
this Agreement, except as expressly provided.
Section 12. Payment of Other Amounts. The County agrees
that it will promptly and without delay remit to the Escrow
Agent such additional sum or sums of money as may be necessary
to assure the payment of any Contract Obligations and to fully
pay and discharge any obligation or obligations or charges, fees
or expenses incurred by the Escrow Agent in carrying out any of
the duties, terms or provisions of this Agreement that are in
excess of the sums provided for under Sections 4 and 6 above.
Section 13. Segregation of Funds. The Escrow Agent shall
hold the Investment Securities and all moneys received by it
from the collection of, principal and interest on the Investment
Securities, and all moneys received from the County under this
Agreement, in a separate escrow account.
Section 14. Resignation of Escrow Agent. The Escrow
Agent may resign as such following the giving of thirty (30)
days prior written notice to the County. Similarly, the Escrow
Agent may be removed and replaced following the giVing . of thirty
(30) days prior Written notice to the Escrow Agent by the
County. In either event, the duties of the Escrow Agent shall
terminate thirty (30) days after the date of such notice (or as
of such earlier date as may be mutually agreeable); and the
Escrow Agent shall then deliver the balance of the Escrow Fund
then in its possession to a successor Escrow Agent as shall be
appointed by the County.
If the County shall have failed to appoint a successor
prior to the expiration of thirty (30) days following the date
of the notice of resignation or removal, the then acting Escrow
Agent may petition any court of competent jurisdiction for the
appointment of a successor Escrow Agent or for other appropriate
relief and any such resulting appointment shall be binding upon
the County.
Upon acknowledgment by any successor Escrow Agent of the
receipt of the then remaining balance of the Escrow Fund, the
then acting Escrow Agent shall be fully released and relieved of
all duties, responsibilities, and obligations under this
Agreement.
Section 15. Benefit. This Agreement shall be for the
sole and exclusive benefit of the County, the Escrow Agent and
the holders of the Contract Obligations. With the exception of
rights expressly conferred in this Agreement, nothing expressed
in or to be implied from this Agreement is intended or shall be
construed to give to any person other than the parties, set forth
above, any legal or equitable right, remedy or claim under or in
respect to this Agreement.
Section 16. Severability. If any provision of this
Agreement shall be held or deemed to be invalid or shall, in
fact, be illegal, inoperative or unenforceable, the same shall
not affect any other provision or provisions contained in this
Agreement or render the same invalid, inoperative or
unenforceable to any extent whatsoever.
Section 17. Notices. Any notice, request, communication
or other paper shall be sufficiently given and shall be deemed
given when delivered or mailed, by registered or certified mail,
postage prepaid or sent by facsimile transmission, except
reports as required in Section 7 which may be delivered by
regular mail, as follows:
If to the County:
8
If to the Escrow Agent:
The County and the Escrow Agent may designate any further
or different addresses to which subsequent notices, requests,
communications or other papers shall be sent and shall be
required to provide written notification of said address change.
Section 18. Costs of Issuance. Simultaneously with the
transfer of bond proceeds from the Refunding Bonds establishing
the Escrow Fund, sufficient moneys from bond proceeds shall be
transferred to the Escrow Agent and used to pay all of the costs
of issuance for the Refunding Bonds including, but not limited
to, financial costs, consultant fees, counsel fees, printing
costs, application fees, bond insurance premiums, rating fees
and any other fees or costs incurred in connection with the
financing. All such costs shall be authorized by the County
Treasurer, any Deputy County Treasurer or the County's Chief
Fiscal Officer, under the "Closing Memorandum", and shall be
paid on
'Section 19. Governing Law. This Agreement shall be
governed by and construed in accordance with the laws of the
State of Michigan.
IN WITNESS WHEREOF, the parties to this Agreement have duly
executed it by their duly authorized officers as of the date
first above written.
COUNTY OF OAKLAND
By:
Its:
By:
Its:
By:
Its:
Las.r2-oak248
9
EXHIBIT A
Las.r2-oak248
Rate
Purchase Investment
Date Amount Maturity Investment Type
APPENDIX II
COUNTY OF OAKLAND
Dated as of
Investment Securities to be Acquired Pursuant
to the Escrow Agreement
Uninvested Cash
Total Escrow Requirement
Las.r2-oak248
APPENDIX III
COUNTY OF OAKLAND
Dated as of
Redemption Schedule
Redeemed Redemption. Total
Date Principal Interest Principal Premium Debt Service
Las.r2-oak248
APPENDIX IV
COUNTY OF OAKLAND
Dated as of
Escrow Cash Flow
las.r2-oak248
APPROVE THE FOREGOING RAVIN
November 28, 2012 Resolution #12299
Moved by fvliddieton supported by Long the resolution be adopted.
Discussion followed.
Moved by Gershenson supported by Nash the resolution be amended as follows:
Add a line to have the Contract come back to the Board before it's approved.
Vote on amendment:
AYES: Gershenson, Hatchett, Hoffman, Jackson, McGillivray, Nash, Quarles, Woodward, Zack,
Covey, Dwyer. (11)
NAYS: Gingell, Gosselin, Long, Matis, Middleton, Nuccio, Potts, River, Runestad, Scott, Taub,
Weipert, Bosnic, Crawford. (14)
A sufficient majority having not voted in favor, the amendment failed.
Discussion followed.
Vote on resolution:
AYES: Gingell, Gosselin, Hatchett, Hoffman, Jackson, Long, Matis, Middleton, Nuccio, Potts,
River, Runestad, Scott, Taub, Weipert, Bosnic, Crawford, Dwyer. (18)
NAYS: McGillivray, Nash, Quarles, Woodward, Zack, Covey, Gershenson. (7)
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 28 th day of November, 2012.
Bill Bullard Jr., Oakland County